0000854775-22-000028 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Sep. 30, 2022	Nov. 17, 2022	Mar. 31, 2022
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-34033
Entity Registrant Name	DIGI INTERNATIONAL INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-1532464
Entity Address, Address Line One	9350 Excelsior Blvd.
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Hopkins
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55343
City Area Code	952
Local Phone Number	912-3444
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 734,732,375
Entity Common Stock, Shares Outstanding		35,556,333
Entity Central Index Key	0000854775
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Location	Cincinnati, Ohio
Auditor Name	GRANT THORNTON LLP
Auditor Firm ID	248
NASDAQ - ALL MARKETS [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	DGII
Security Exchange Name	NASDAQ

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Revenue	$ 388,225	$ 308,632	$ 279,271
Cost of sales:
Amortization	5,297	4,498	4,487
Total cost of sales	171,939	141,975	135,299
Gross profit	216,286	166,657	143,972
Operating expenses:
Sales and marketing	70,366	61,909	52,761
Research and development	55,098	46,623	43,765
General and administrative	58,527	40,830	36,140
Restructuring Charges	275	995	117
Total operating expenses	178,066	156,129	132,655
Operating income	38,220	10,528	11,317
Other expense, net:
Interest income	11	10	304
Interest expense	(19,701)	(1,395)	(3,592)
Other income (expense), net	98	(144)	(566)
Total other expense, net	(19,592)	(1,529)	(3,854)
Income before income taxes	18,628	8,999	7,463
Income tax benefit	(755)	(1,367)	(948)
Net income	$ 19,383	$ 10,366	$ 8,411
Net income per common share:
Basic	$ 0.55	$ 0.32	$ 0.29
Diluted net income per common share:
Diluted	$ 0.54	$ 0.31	$ 0.28
Weighted average common shares:
Basic (shares)	35,031,000	32,111,000	28,849,000
Diluted (shares)	35,995,000	33,394,000	29,546,000
Change in fair value of contingent consideration	$ (6,200)	$ 5,772	$ (128)
Product
Revenue:
Revenue	290,170	265,805	248,374
Cost of sales:
Cost of sales	140,615	124,065	118,322
Service
Revenue:
Revenue	98,055	42,827	30,897
Cost of sales:
Cost of sales	$ 26,027	$ 13,412	$ 12,490

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 19,383	$ 10,366	$ 8,411
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	(3,308)	1,071	1,698
Other comprehensive (loss) income, net of tax	(3,308)	1,071	1,698
Comprehensive income	$ 16,075	$ 11,437	$ 10,109

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 34,900	$ 152,432
Accounts receivable, net	50,450	43,738
Inventories	73,223	43,921
Deferred tax assets	3,764	2,698
Other current assets	3,871	3,869
Total current assets	166,208	246,658
Property, equipment and improvements, net	27,594	12,132
Identifiable intangible assets, net	302,064	118,029
Goodwill	340,477	225,522
Operating lease right-of-use assets	15,299	15,684
Other non-current assets	2,253	1,506
Total assets	853,895	619,531
Current liabilities:
Current portion of long-term debt	15,523	0
Accounts payable	32,373	22,586
Accrued compensation	14,576	12,934
Unearned revenue	19,803	13,589
Current portion of operating lease liabilities	3,196	2,633
Other current liabilities	11,036	7,199
Total current liabilities	96,507	58,941
Income taxes payable	2,441	2,334
Deferred tax liabilities	9,666	13,493
Long-term Debt	222,448	45,799
Operating lease liabilities	16,978	18,368
Other non-current liabilities	4,342	8,079
Total liabilities	352,382	147,014
Stockholders’ equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $.01 par value; 60,000,000 shares authorized; 41,950,732 and 40,653,035 shares issued	420	407
Additional paid-in capital	385,244	370,699
Retained earnings	200,075	180,692
Accumulated other comprehensive loss	(26,054)	(22,746)
Treasury stock, at cost, 6,412,812 and 6,390,645 shares	(58,172)	(56,535)
Total stockholders’ equity	501,513	472,517
Total liabilities and stockholders’ equity	$ 853,895	$ 619,531

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Sep. 30, 2021
Statement of Financial Position [Abstract]
Preferred stock, par or stated value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par or stated value per share	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares, issued	41,950,732	40,653,035
Treasury stock, shares	6,412,812	6,390,645

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Operating activities:
Net income	$ 19,383	$ 10,366	$ 8,411
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, equipment and improvements	6,644	4,343	4,545
Amortization	30,928	16,534	14,754
Stock-based compensation	8,578	8,135	7,237
Deferred income tax provision	(3,387)	(4,598)	(3,357)
Loss on sale of property, equipment and improvements	4	89	0
Change in fair value of contingent consideration	(6,200)	5,772	(128)
Provision for bad debt and product returns	427	2,290	2,135
Provision for inventory obsolescence	6,901	1,200	2,630
Other, net	(192)	42	366
Changes in operating assets and liabilities (net of acquisitions):
Accounts receivable	(541)	11,467	5,539
Inventories	(41,369)	4,679	(11,133)
Other assets	(545)	(1,657)	(704)
Income taxes	(1,305)	165	(1,100)
Accounts payable	7,281	(5,578)	3,205
Accrued expenses	11,133	4,474	2,078
Net cash provided by operating activities	37,740	57,723	34,478
Investing activities:
Acquisition of businesses, net of cash acquired	(347,554)	(19,108)	(136,098)
Purchase of property, equipment, improvements and certain other intangible assets	(1,974)	(2,257)	(899)
Net cash used in investing activities	(349,528)	(21,365)	(136,997)
Financing activities:
Proceeds from long-term debt	350,000	617	119,018
Payments of debt issuance costs	13,443	0	0
Payments on long-term debt	(148,118)	(15,624)	(55,893)
Payments for contingent consideration	0	4,200	4,698
Proceeds from issuances of stock, net of offering expenses	0	73,830	0
Proceeds from stock option plan transactions	9,505	8,525	5,902
Proceeds from employee stock purchase plan transactions	1,500	1,214	1,065
Taxes paid for net share settlement of share-based payment awards	(6,662)	(2,120)	(1,791)
Net cash provided by financing activities	192,782	62,242	63,603
Effect of exchange rate changes on cash and cash equivalents	(1,474)	(297)	253
Net (decrease) increase in cash and cash equivalents	(117,532)	98,303	(38,663)
Cash and cash equivalents, beginning of period	152,432	54,129	92,792
Cash and cash equivalents, end of period	34,900	152,432	54,129
Supplemental disclosures of cash flow information:
Interest paid	14,209	917	3,009
Income taxes paid, net	4,333	3,684	3,686
Supplemental schedule of non-cash investing and financing activities:
Accrual for property, equipment, improvements and certain other intangibles assets	(191)	(98)	(26)
Tenant improvement allowance	0	(1,000)	0
Transfer of inventory to property, equipment and improvements	(6,237)	(1,838)	(1,363)
Term debt refinanced as credit facility	0	(6,200)	(5,100)
Term debt refinanced as credit facility	$ 0	$ 50,000	$ 0

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance at Sep. 30, 2019	$ 348,978	$ 346	$ (54,339)	$ 266,567	$ 161,919	$ (25,515)
Beginning balance (in shares) at Sep. 30, 2019		34,608	6,367
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,411				8,411
Other comprehensive income (loss)	1,698					1,698
Employee stock purchase issuances (in shares)			(118)
Employee stock purchase issuances	1,065		$ 1,021	44
Taxes paid for net share settlement of share-based payment awards (in shares)			104
Taxes paid for net share settlement of share-based payment awards	(1,791)		$ (1,791)
Issuance of stock under stock award plans (in shares)		905
Issuance of stock under stock award plans	5,902	$ 9		5,893
Stock-based compensation expense	7,237			7,237
Ending balance (in shares) at Sep. 30, 2020		35,513	6,353
Ending balance at Sep. 30, 2020	371,500	$ 355	$ (55,109)	279,741	170,330	(23,817)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,366				10,366
Other comprehensive income (loss)	1,071					1,071
Stock Issued During Period, Shares, New Issues		4,025
Stock Issued During Period, Value, New Issues		$ 40
Proceeds from Issuance of Debt	73,830			73,790
Other	(4)				(4)
Employee stock purchase issuances (in shares)			(79)
Employee stock purchase issuances	1,214		$ 694	520
Taxes paid for net share settlement of share-based payment awards (in shares)			117
Taxes paid for net share settlement of share-based payment awards	(2,120)		$ (2,120)
Issuance of stock under stock award plans (in shares)		1,115
Issuance of stock under stock award plans	8,525	$ 12		8,513
Stock-based compensation expense	8,135			8,135
Ending balance (in shares) at Sep. 30, 2021		40,653	6,391
Ending balance at Sep. 30, 2021	472,517	$ 407	$ (56,535)	370,699	180,692	(22,746)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,383				19,383
Other comprehensive income (loss)	$ (3,308)					(3,308)
Stock Issued During Period, Shares, New Issues	4,025
Employee stock purchase issuances (in shares)			(80)
Employee stock purchase issuances	$ 1,500		$ 726	774
Taxes paid for net share settlement of share-based payment awards (in shares)			102
Taxes paid for net share settlement of share-based payment awards	(6,662)		$ (2,363)	(4,299)
Issuance of stock under stock award plans (in shares)		1,297
Issuance of stock under stock award plans	9,505	$ 13		9,492
Stock-based compensation expense	8,578			8,578
Ending balance (in shares) at Sep. 30, 2022		41,950	6,413
Ending balance at Sep. 30, 2022	$ 501,513	$ 420	$ (58,172)	$ 385,244	$ 200,075	$ (26,054)

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business Description

We are a leading global provider of business and mission-critical IoT connectivity products, services and solutions. We help our customers create next-generation connected products to deploy, monitor and manage critical communications infrastructures and compliance standards in demanding environments with high levels of security and reliability. We have two reportable operating segments: (i) IoT Products & Services; and (ii) IoT Solutions.

Principles of Consolidation

The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Accounting Estimates

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates.

Cash and Cash Equivalents

Cash equivalents consist of money market accounts and other highly liquid investments purchased with an original maturity of three months or less. The carrying amounts approximate fair value due to the short maturities of these investments. We maintain our cash and cash equivalents in bank accounts which may exceed federally insured limits at times. We have not experienced any losses in these accounts.

Accounts Receivable

Accounts receivable are stated at the amount we expect to collect. This amount is net of an allowance for credit losses for estimated losses resulting from the inability of our customers to make required payments and a reserve for future credit returns and pricing adjustments. The following factors are considered when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends, and a review of the current status of trade accounts receivable are considered when determining the required allowance for credit losses. Based on our assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to our allowance for credit losses. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the allowance for credit losses and a credit to accounts receivable. Estimated reserves for future credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded. Estimated sales returns for our distributor stock rotation program are accounted for under the guidance of Accounting Standard Codification (ASC) 845 Nonmonetary Transactions.

The following table presents a reconciliation of the allowance for credit losses (in thousands):


	Year ended September 30,
	2022		2021
Balance at beginning of period	$	3,934	$	3,778
Additions	1,475		2,803
Uncollectible accounts charged to allowance, net of recoveries	(2,124)		(2,647)
Balance at end of period	$	3,285	$	3,934

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Inventories

Inventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating net realizable value.

Property, Equipment and Improvements, Net

Property, equipment and improvements are carried at cost, net of accumulated depreciation. Depreciation is provided by charges to operations using the straight-line method over the estimated asset useful lives. Furniture and fixtures, purchased software and other equipment are depreciated over a period of three years to ten years. Building improvements and buildings are depreciated over ten years and 39 years, respectively. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the asset. Long-lived assets to be held and used, such as property, equipment and improvements, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Expenditures for maintenance and repairs are charged to operations as incurred, while major renewals and betterments are capitalized. The assets and related accumulated depreciation accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in operations.

Identifiable Intangible Assets

Purchased proven technology, license agreements, covenants not to compete and other identifiable intangible assets are recorded at fair value when acquired in a business acquisition, or at cost when not purchased in a business acquisition. All other identifiable intangible assets are amortized on a straight-line basis over their estimated useful lives of three years to 20.5 years. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. Amortization of purchased and core technology is included in cost of sales in the Consolidated Statements of Operations. Amortization of all other acquired identifiable intangible assets is charged to operating expenses as a component of general and administrative expense.

Identifiable intangible assets are reviewed for impairment whenever events or circumstances indicate that undiscounted expected future cash flows are not sufficient to recover the carrying value amount. Impairment losses, if any, are recorded in the period the impairment is identified. There were no impairments identified in fiscal 2022, 2021 or 2020.

Goodwill

Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is quantitatively tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment.

We have two reportable operating segments, our IoT Products & Services segment and our IoT Solutions segment (see Note 4 to the consolidated financial statements). Effective with the reorganization announcement on October 7, 2020 (see Note 10), our IoT Products & Services business is now structured to include four reporting units under the IoT Products & Services segment, each with a reporting manager: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. Following our acquisition of Ventus in the first fiscal quarter of 2022, IoT Solutions is comprised of two reporting units; Ventus and SmartSense. We have six reporting units that have been tested individually for impairment.

Due to the reorganization on October 7, 2020 (see Note 10), we performed an interim impairment test in addition to our annual test as of June 30, 2021. Our goodwill impairment tests as of June 30,2022, June 30, 2021 and October 7, 2020 indicated no impairment (see Note 3). During the fourth quarter of fiscal 2022, we assessed various qualitative factors to determine whether or not an additional goodwill impairment assessment was required as of September 30, 2022, and we concluded that no additional impairment assessment was required.

Contingent Consideration

We measure our contingent consideration liabilities recognized in connection with business combinations at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy as defined in ASC 820 "Fair Value Measurement". We used a probability-weighted discounted cash flow approach as a valuation technique to

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

determine the fair value of the contingent consideration on the acquisition date. At each subsequent reporting period, the fair value is re-measured with the change in fair value recognized in general and administrative expense in our Consolidated

Statements of Operations. Amounts, if any, paid to the seller in excess of the amount recorded on the acquisition date will be classified as cash flows used in operating activities. Payments to the seller not exceeding the acquisition-date fair value of the contingent consideration will be classified as cash flows used in financing activities.

Warranties

In general, we warrant our hardware products to be free from defects in material and workmanship under normal use and service. The warranty periods generally range from one year to five years. We typically have the option to either repair or replace hardware products we deem defective with regard to material or workmanship. Estimated warranty costs are accrued in the period that the related revenue is recognized based upon an estimated average per unit repair or replacement cost applied to the estimated number of units under warranty. These estimates are based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the adequacy of the warranty accrual.

We also warrant our software or firmware incorporated into our products generally for a period of one year and offer to provide a bug fix or software patch within a reasonable period. We have not accrued specifically for this warranty and have not had claims specifically related to software or firmware. We are not responsible for, and do not warrant that, custom software versions, created by OEM customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer.

Treasury Stock

We record treasury stock at cost. Treasury stock may be acquired from employees for tax withholding purposes related to vesting of restricted stock awards as part of our stock-based compensation program and issued pursuant to the Employee Stock Purchase Plan.

Revenue Recognition

We recognize hardware product revenue upon transfer of control of goods or services to customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services.

We determine the amount of revenue to be recognized through application of the following steps:

•identification of the contract, or contracts with a customer;

•identification of the performance obligations in the contract;

•determination of the transaction price;

•allocation of the transaction price to the performance obligations in the contract; and

•recognition of revenue when or as we satisfy the performance obligations.

Hardware Product Revenue and SmartSense by Digi Equipment Revenue and Associated Installation Fees

Our hardware product revenue is derived primarily from the sale of wired and wireless hardware products to our distributors and direct/original equipment manufacturer (“Direct/OEM”) customers. Product revenue generally is recognized upon shipment of the product to a customer. Sales to authorized domestic distributors and Direct/OEM customers typically are made with certain rights of return and price adjustment provisions. Estimated reserves for future credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded. Material differences between the historical trends used to determine estimated reserves and actual credit returns and pricing adjustments could result in a material change to our consolidated results of operations or financial position. Estimated sales returns for our distributor stock rotation program are accounted for under the guidance of ASC 845 Nonmonetary Transactions.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Equipment revenue from SmartSense by Digi and Ventus within our IoT Solutions segment is recognized upon shipment of the equipment to a customer. Installation service charges from these sales are recorded when the product is installed.

Subscription and Support Services Revenue

Our SmartSense by Digi and Ventus subscription revenue is recorded on a monthly basis. These subscriptions are generally in a range from one year to five years, and may contain an evergreen renewal provision. Generally, our subscription renewal charges per month are the same as the original contract term.

We derive service revenue from our Digi Remote Manager, a platform-as-a-service (“PaaS”) offering, whereby customers pay for services consumed based on the number of devices being managed or monitored. This revenue is recognized over the life of the service term and is included in our IoT Products & Services segment.

Digi Support Services revenues are recognized over the life of the support contract and included in our IoT Products & Services segment. Some of Digi Support Services revenue is for training and this revenue is recognized as the services are performed.

Professional Services Revenue

Professional services revenue is derived from our Digi Wireless Design Services contracts on either on a time-and-materials or a fixed-fee basis. These revenues, which are included in our IoT Products & Services segment are recognized as the services are performed for time-and-materials contracts or as invoiced for fixed-fee contracts..

Contracts with Multiple Performance Obligations

From time to time we have contracts from customers with multiple performance obligations. Our hardware products may be combined with our Digi Remote Manager PaaS offering as well as other support services in an individual contract. Our SmartSense by Digi® revenues typically are derived from contracts with multiple performance obligations. These obligations may include: delivery of monitoring equipment that the customer purchases out-right, monitoring services, providing condition alerts of assets being monitored, and recertification of sensor equipment. When we retain ownership of the equipment, we charge an implementation fee to the customer so they can begin using the equipment. In these instances, all revenue derived from the above obligations is recognized over the subscription term of the contract. If the customer purchases the equipment out-right, that portion of the revenue is recognized at the stand-alone selling price at the time the equipment is shipped and all other revenue is recognized over the subscription term of the contract. We have made an accounting policy election to exclude from the measurement of our revenues any sales or similar taxes we collect from customers.

Research and Development

Research and development costs are expensed when incurred. Research and development costs include compensation, allocation of corporate costs, depreciation, utilities, professional services and prototypes. Software and firmware development costs are expensed as incurred until the point that both the technological feasibility and the proven marketability of the product are established. To date, the time period between the establishment of technological feasibility and completion of software development has been short and no significant development costs have been incurred during that period. Accordingly, we have not capitalized any software development costs to date.

Income Taxes

Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is equal to the tax payable for the period and the change during the period in deferred tax assets and liabilities as well as changes in income tax reserves. We maintain valuation allowances unless it is more likely than not that all or a portion of the deferred tax assets will be realized. Changes in valuation allowances from period to period are included in our tax provision in the period of change. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Stock-Based Compensation

Stock-based compensation expense represents the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. This cost must be recognized over the period during which an employee is required to provide the service (usually the vesting period).

Foreign Currency Translation

Financial position and results of operations of our international subsidiaries are measured using local currencies as the functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect at the end of each reporting period. For our international subsidiaries, our statements of operations accounts are translated at the weighted average rates of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing currency exchange rates from period to period are included in accumulated other comprehensive loss in stockholders’ equity. Gains and losses on foreign currency exchange transactions, as well as translation gains or losses on transactions denominated in currencies other than an entity’s functional currency, are reflected in the statement of operations. During fiscal 2022, 2021 and 2020 there were net transaction gains (losses) of $0.1 million, $(0.1) million and $(0.6) million, respectively that were recorded in other income, net. We manage our net asset or net liability position for U.S. dollar accounts in our foreign locations to reduce our foreign currency risk. We have not implemented a formal hedging strategy.

Comprehensive Income

Our comprehensive income is comprised of net income, foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities. These items are charged or credited to the accumulated other comprehensive loss account in stockholders’ equity.

Net Income Per Common Share

Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from common stock options and restricted stock units. We use the treasury stock method to calculate the weighted-average shares used in the diluted earnings per share computation. Under this method the proceeds from exercise of an option, any amount of compensation cost for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital when the option is exercised are assumed to have been used to repurchase shares in the current period.

The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data):


	Year ended September 30,
	2022		2021		2020
Numerator:
Net income	$	19,383	$	10,366	$	8,411
Denominator:
Denominator basic net income per common share — weighted average shares outstanding	35,031		32,111		28,849
Effect of dilutive securities:
Stock options and restricted stock units	964		1,283		697
Denominator diluted net income per common share — adjusted weighted average shares	35,995		33,394		29,546

Net income per common share, basic	$	0.55	$	0.32	$	0.29
Net income per common share, diluted	$	0.54	$	0.31	$	0.28

Because their effect would be anti-dilutive at period end, certain potentially dilutive shares related to stock options to purchase common shares were excluded in the above computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of our common shares. For the years ended September 30, 2022, 2021 and 2020, such excluded stock options were 647,181, 1,122,121 and 2,068,004, respectively.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recently Adopted Accounting Pronouncements

In October 2021, FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. We adopted this standard in the first quarter of fiscal 2022.

Potential Impacts of COVID-19 on our Business

The impact of the coronavirus ("COVID-19") pandemic continues to unfold. While we have seen conditions improve towards pre-pandemic levels, the extent of the pandemic's effect on our operational and financial performance will depend in large part on future developments, which cannot be reasonably estimated at this time. Future developments include changes to the duration, scope and severity of the pandemic, the actions taken to contain or mitigate its impact both within and outside the jurisdictions where we operate and the impact on governmental programs. Due to the inherent uncertainty of the situation, we are unable to predict the likely impact of the COVID-19 pandemic on our future operations, but continually monitor the risk it presents to our business. For a more detailed discussion see Part I, Item 1 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of this Form 10-K.

Acquisitions

12 Months Ended

Sep. 30, 2022

Business Combinations [Abstract]

ACQUISITIONS

Fiscal 2022 Acquisition

Acquisition of Ventus

On November 1, 2021, we acquired Ventus for approximately $350 million in cash. The acquisition was funded through a combination of cash on hand and debt financing under a $350 million credit facility committed by BMO Harris Bank N.A.

For tax purposes, this acquisition was treated as an asset acquisition. We believe this is a complementary acquisition for us as it significantly enhances our IoT Solutions segment by enhancing Digi's service portfolio and immediately extends the company's market reach with a Managed Network-as-a-Service MNaaS solutions offering.

Costs directly related to the acquisition of $4.4 million incurred in fiscal 2022 have been charged to operations and are included in general and administrative expense in our consolidated statements of operations. These acquisition costs include legal, accounting, valuation and investment banking fees.

The following table summarizes the fair values of Ventus assets acquired and liabilities assumed as of the acquisition date (in thousands):


Cash	$	350,000

Fair value of net tangible assets acquired	$	20,365
Identifiable intangible assets:
Customer relationships	179,000
Purchased and core technology	16,000
Trademarks	16,000
Goodwill	118,635
Total	$	350,000

The consolidated balance sheet as of September 30, 2022 reflects the final allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of customer relationships was calculated using the excess earnings method, while purchased and core technology and patents were valued using the relief from royalty method. These methodologies utilize future estimates including revenues attributable to customer relationships, tax rates, discount rates, royalty rates and obsolescence rates. The final purchase price allocation includes an adjustment made in the fourth fiscal quarter of 2022 to reflect an update from our preliminary purchase price allocation to the valuation of the net

2. ACQUISITIONS (CONTINUED)

tangible assets acquired and goodwill resulting from the acquisition. Included in the fair value of net tangible assets acquired was $0.9 million of right-of-use asset included in other non-current assets and $0.9 million of lease liability included in other current liabilities and other non-current liabilities associated with Ventus’ operating leases.

The weighted average useful life for all the identifiable intangibles listed above is estimated to be 19.2 years. For purposes of determining fair value, the existing customer relationships identified above are assumed to have a useful life of 20.5 years, purchased and core technology is assumed to have useful life of 11 years and trademarks are assumed a useful life of 13 years. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. The identifiable intangible assets are amortized using the straight-line method which reflects the pattern in which the assets are expected to be consumed.

The fiscal 2022 consolidated results include $54.3 million in revenue contributed by the acquired Ventus business. It is impracticable to quantify the amount of Ventus contribution to our consolidated net income due to the business structure management uses for reporting and allocating expenses to segments.

The following consolidated pro forma information is presented as if the acquisition had occurred on October 1, 2020 (in thousands):


	Year ended September 30,
		2022		2021
Net sales		$	393,290	$	360,820
Net income (loss)		$	14,274	$	(2,701)

Pro forma net income has been adjusted to include interest expense related to debt incurred as a result of the acquisition, amortization on the fair value of the intangibles acquired and remove any costs incurred with the sale transaction. Net income for the year ended September 30, 2021 was adjusted to include acquisition-related costs of $3.1 million.

Fiscal 2021 Acquisitions

Acquisition of Haxiot

On March 26, 2021, we acquired Haxiot, a Dallas-based provider of low power wide area ("LPWA") wireless technology. The results of operations are now included in our results within our IoT Products & Services segment. We believe this is a complementary acquisition for us as it significantly enhances our IoT Products & Services segment by enhancing Digi's embedded systems portfolio and immediately extends the company's market reach with a complete LoRaWAN-based solutions offering.

The terms of the acquisition included an upfront cash payment as well as contingent consideration comprised of future earn-out payments. We funded the closing of the acquisition with $7.1 million of cash on hand. The future earn-out payments are based on Haxiot revenue performance and contractually are not to exceed $3.0 million and $5.0 million for the annual periods ending December 31, 2021 and December 31, 2022. In the third quarter of fiscal 2021, the purchase price allocation was updated, including related determination of fair value and income tax implications. As a result, we adjusted goodwill to $8.6 million and adjusted contingent consideration to $5.9 million. In the fourth fiscal quarter of 2022, it was determined that the revenue thresholds would not be met and the remaining balance was adjusted down by $5.9 million, resulting in a fair value of $0.0 million for contingent consideration relating to the acquisition of Haxiot at September 30, 2022 .

For tax purposes, this acquisition is treated as a stock acquisition. The goodwill therefore is not deductible.

Costs directly related to the acquisition of $0.3 million have been charged to operations in 2021. These costs are included in general and administrative expense in our consolidated statements of operations. These acquisition costs include legal, accounting, valuation and investment banking fees.

2. ACQUISITIONS (CONTINUED)

The following table summarizes the fair values of Haxiot assets acquired, net of $50 thousand of cash acquired, and liabilities assumed as of the acquisition date (in thousands).


Cash	$	7,096
Contingent consideration	5,900
Total	$	12,996

Fair value of net tangible assets acquired	$	86
Identifiable intangible assets:
Customer relationships	3,900
Purchased and core technology	1,050
Trademarks	500
Deferred tax liability on identifiable intangible assets	(1,145)
Goodwill	8,605
Total	$	12,996

Acquisition of Ctek, Inc.

On July 6, 2021, we acquired Ctek, Inc. ("Ctek"), a San Pedro, California-based provider that specializes in solutions for remote monitoring and industrial controls. The results of operations of Ctek are included in our fourth quarter fiscal 2021 results within our IoT Products & Services segment. Through the acquisition of Ctek, Digi is uniquely positioned to provide customers with both battery and hardwired options for the control and monitoring of critical infrastructure, from complex off-shore oil rig locations to localized deployments such as municipal park lighting. In addition, Ctek’s offering and existing client portfolio is set to further Digi’s reach in a rapidly expanding market.

The terms of the acquisition included an upfront cash payment as well as contingent consideration comprised of future earn-out payments. We funded the closing of the acquisition with $12.0 million of cash on hand. The future earn-out payments are based on revenue performance outlined in the terms of the purchase agreement for the annual periods ending December 31, 2021, December 31, 2022 and December 31, 2023. The cumulative amount of these earn-outs for the annual periods will not exceed $0.5 million, $1.0 million and $1.5 million, respectively. In the fiscal fourth quarter of 2022, it was determined that the revenue thresholds would not be met and the remaining balance was adjusted down by $0.3 million, resulting in a fair value of $0.0 million for contingent consideration relating to the acquisition of Ctek at September 30, 2022.

For tax purposes, this acquisition is treated as a stock acquisition. The goodwill therefore is not deductible.

2. ACQUISITIONS (CONTINUED)

The following table summarizes the fair values of Ctek assets acquired and liabilities assumed as of the acquisition date (in thousands).


Cash	$	12,012
Contingent consideration	300
Working capital adjustment	422
Total	$	12,734

Fair value of net tangible assets acquired	397
Identifiable intangible assets:
Customer relationships	5,100
Purchased and core technology	1,300
Trademarks	70
Backlog	1,000
Goodwill	4,867
Total	$	12,734

Segment Information and Major Customers

12 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION AND MAJOR CUSTOMERS

We have two reportable operating segments: (i) IoT Products & Services and (ii) IoT Solutions. This determination was made by considering both qualitative and quantitative information. The qualitative information included, but was not limited to, the following: the nature of the products and services and customers differ between the two segments, discrete financial information is available through operating income for both segments and the Chief Operating Decision Maker is reviewing both segments’ financial information separately to make decisions about the allocation of resources. Effective with the reorganization announcement on October 7, 2020 (see Note 10), our IoT Products & Services business is now structured to include four operating segments, each with a segment manager. Following our acquisition of Ventus in the first fiscal quarter of 2022, IoT Solutions is comprised of two reporting units; Ventus and SmartSense. We have six reporting units that have been tested individually for impairment.

IoT Products & Services

Our IoT Products & Services segment is composed of the following four operating segments:

•Cellular Routers - box devices (fully enclosed) that provide connectivity typically in a place where the device can be plugged in exclusively using cellular communications.

•Console Servers - similar to cellular routers except they are exclusively for edge computing installations and data center applications exclusively using cellular communications.

•OEM Solutions - Original Equipment Manufacturers ("OEM") will be a chip, rather than a boxed device. This can come in the form of a stand-alone chip, or from a systems-on-module ("SOMs"). While cellular connectivity is used, other communication protocols can be used such as Zigbee, Bluetooth or Radio-Frequency ("RF") based on application.

•Infrastructure Management - includes battery operated, cellular enabled connect sensors as well as other types of console server applications that are more Digi Accelerated Linux ("DAL") based than Console Servers. This operating segment has some products that do not use cellular communications, but a large part of this segment does use cellular communications.

IoT Solutions

Following the acquisition of Ventus on November 1, 2021, IoT Solutions is now comprised of two operating segments:

•SmartSense - offers wireless temperature and other condition-based monitoring services for perishable goods such as food or medicine, as well as employee task management services.

•Ventus - provides MNaaS solutions that simplify the complexity of enterprise wide area network ("WAN") connectivity via wireless and fixed line solutions.

We measure our segment results primarily by reference to revenue and gross profit. IoT Solutions revenue includes product, service and subscription revenue.

The operating segments included in each reportable segment have similar qualitative and quantitative factors, which allow us to aggregate them under each reportable segment. The qualitative factors include similar nature of products and services, production process, type or class of customers and methods used to distribute the products. The quantitative factors include similar operating margins. Our chief operating decision maker reviews and makes business decisions which includes a primary review of operating income but also includes gross profit. Following the October 2020 reorganization, the shared general and administrative costs are now being allocated to each operating segment. As a result, our disclosed measure of segment operating income has been updated for all periods presented to conform with this change.

4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)

Summary operating results for each of our segments were as follows (in thousands):


	Year ended September 30,
		2022		2021		2020
Revenue
IoT Products & Services		$	297,645	$	264,173	$	249,530
IoT Solutions		90,580		44,459		29,741
Total revenue		$	388,225	$	308,632	$	279,271
Gross Profit
IoT Products & Services		$	160,117	$	144,472	$	129,349
IoT Solutions		56,169		22,185		14,623
Total gross profit		$	216,286	$	166,657	$	143,972
Operating Income (loss)
IoT Products & Services		$	41,562	$	18,212	$	27,216
IoT Solutions		(3,342)		(7,684)		(15,899)
Total operating income		$	38,220	$	10,528	$	11,317
Depreciation and Amortization
IoT Products & Services		$	13,974	$	13,109	$	11,521
IoT Solutions		19,865		7,768		7,778
Total depreciation and amortization		$	33,839	$	20,877	$	19,299

Total expended for property, plant and equipment was as follows (in thousands):


	Year ended September 30,
	2022		2021		2020
IoT Products & Services	$	1,952	$	2,257	$	878
IoT Solutions*	22		—		21
Total expended for property, plant and equipment	$	1,974	$	2,257	$	899

* Excluded from this amount is $6.2 million, $1.8 million and $1.4 million of transfers of inventory to property plant and equipment for subscriber assets for the year ended September 30, 2022, 2021 and 2020, respectively.

Total assets for each of our segments were as follows (in thousands):


	As of September 30,
	2022		2021
IoT Products & Services	$	390,128	$	386,934
IoT Solutions	428,867		80,165
Unallocated*	34,900		152,432
Total assets	$	853,895	$	619,531

*Unallocated consists of cash and cash equivalents.

4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED)

Net property, equipment and improvements by geographic location were as follows (in thousands):


	As of September 30,
	2022		2021
United States	$	27,205	$	11,941
International, primarily Europe	389		191
Total net property, equipment and improvements	$	27,594	$	12,132

Our U.S. export sales represented 22.1%, 26.2% and 25.1% of revenue for the fiscal years ended September 30, 2022, 2021 and 2020. No single customer exceeded 10% of revenue or accounts receivable for any of the periods presented.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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+ Details

Selected Balance Sheet Data

12 Months Ended

Sep. 30, 2022

Selected Balance Sheet Data [Abstract]

SELECTED BALANCE SHEET DATA

The following table shows selected balance sheet data (in thousands):


	As of September 30,
	2022		2021
Accounts receivable, net:
Accounts receivable	$	58,967	$	51,828
Less allowance for credit losses	3,285		3,934
Less reserve for future credit returns and pricing adjustments	5,232		4,156
Total accounts receivable, net	$	50,450	$	43,738

Inventories:
Raw materials	$	39,189	$	27,265
Work in process	592		14
Finished goods	33,442		16,642
Total inventories	$	73,223	$	43,921

Property, equipment and improvements, net:
Land	$	520	$	570
Buildings	2,338		2,338
Improvements	9,365		9,367
Equipment	17,990		16,878
Purchased software	4,297		2,868
Furniture and fixtures	2,148		2,174
Subscriber assets	24,636		6,982
Total property, equipment and improvements, gross	61,294		41,177
Less accumulated depreciation and amortization	33,700		29,045
Total property, equipment and improvements, net	$	27,594	$	12,132

Fair Value Measurements

12 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Financial assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 (unadjusted quoted prices in active markets for identical assets or liabilities); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). There were no transfers into or out of our Level 2 financial assets during fiscal 2022.

There were no assets or liabilities that are measured at fair value on a recurring basis as of September 30, 2022.

The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2021 (in thousands):


			Fair Value Measurements at September 30, 2021 using:
	Total carrying value at September 30, 2021		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Liabilities:
Contingent consideration on acquired businesses	$	6,200	$	—	$	—	$	6,200
Total liabilities measured at fair value	$	6,200	$	—	$	—	$	6,200

In connection with the October 2015 acquisition of Bluenica, we agreed to make contingent payments over a period of up to 4 years, subject to achieving specified revenue thresholds for sales of Bluenica products. The fair value of the liability for contingent consideration recognized was $10.4 million upon acquisition. We paid $0.5 million in fiscal 2017, no payments in fiscal 2018, $2.2 million in fiscal 2019 and the final installment of $2.9 million in fiscal 2020.

In connection with our acquisition of Accelerated, we agreed to make contingent payments, based upon certain sales thresholds of Accelerated products. The fair values of the liability for contingent consideration recognized upon acquisition of Accelerated on January 22, 2018 was $2.3 million. We paid the first installment of $3.5 million in fiscal 2019 and the final installment of $2.4 million in the third quarter of fiscal 2020.

In connection with our acquisition of Opengear, we agreed to make contingent payments, based upon certain revenue thresholds. We paid the first installment of $0.9 million during the third quarter of fiscal 2020. We paid the final installment of $10.0 million during the second quarter of fiscal 2021.

In connection with our acquisition of Haxiot, we agreed to make contingent earn-out payments, based upon certain revenue thresholds (see Note 2 to the consolidated financial statements). In the third quarter of fiscal 2021, the preliminary purchase price allocation was updated, including related determination of fair value and income tax implications. As a result, we adjusted goodwill to $8.6 million and adjusted contingent consideration to $5.9 million on our balance sheet. In the fiscal fourth quarter of 2022, it was determined that the revenue thresholds would not be met and the remaining balance was adjusted down by $5.9 million. The fair value of the remaining liability for contingent consideration for the acquisition of Haxiot was $0.0 million at September 30, 2022.

In connection with our acquisition of Ctek, we agreed to make contingent earn-out payments, based upon certain revenue thresholds (see Note 2 to the consolidated financial statements). In the fiscal fourth quarter of 2022, it was determined that the revenue thresholds would not be met and the remaining balance was adjusted down by $0.3 million . The fair value of the remaining liability for contingent consideration for the acquisition of Ctek was $0.0 million at September 30, 2022.

6. FAIR VALUE MEASUREMENTS (CONTINUED)

The following table presents a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):


	Year ended September 30,
	2022		2021
Fair value at beginning of period	$	6,200	$	4,228
Purchase price contingent consideration	—		6,200
Contingent consideration payments	—		(10,000)
Change in fair value of contingent consideration	(6,200)		5,772
Fair value at end of period	$	—	$	6,200

The change in fair value of contingent consideration reflects our estimate of the probability of achieving the relevant targets and is discounted based on our estimated discount rate. Due to the timing of the acquisition, the fair value of the contingent consideration at September 30, 2022 is based on the probability of achieving the specified revenue thresholds for Haxiot and Ctek. As of September 30, 2022, contingent consideration associated with Haxiot and Ctek remain subject to future performance through December 31, 2022 and 2023, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt

12 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

DEBT

INDEBTEDNESS

On November 1, 2021, we entered into a second amended and restated credit agreement with BMO Harris Bank N.A. ("BMO"). This agreement provides us with a senior secured credit facility (the "Credit Facility") consisting of a $350 million term loan B secured loan (the “Term Loan Facility”) and a $35 million revolving credit facility (the “Revolving Loan Facility”) with an uncommitted option to increase incremental loans under the Credit Facility, subject to an incremental cap. The Revolving Loan Facility includes a $10 million letter of credit subfacility and $10 million swingline subfacility. Digi may use proceeds of the Revolving Loan Facility in the future for general corporate purposes. This loan replaced our syndicated senior secured credit agreement with BMO that was entered into on March 15, 2021 and replaced the remaining balance of our revolver with this new term loan. This prior agreement provided us with committed credit facilities ("Prior Credit Facility") consisting of a $200 million revolving loan.

On December 22, 2021, Digi entered into a third amended and restated credit agreement with BMO. Digi refinanced the Term Loan Facility and Revolving Loan Facility under its existing credit agreement entered into on November 1, 2021, but did not receive any additional proceeds from nor modify the amounts of any facilities or subfacilities contained within that credit agreement.

Following the December amendment, borrowings under the Term Loan Facility bear interest at a rate per annum equal to LIBOR with a floor of 0.50% for an interest period of one, three or six months as selected by Digi, reset at the end of the selected interest period (or a replacement benchmark rate if LIBOR is no longer available) plus 5.00% or a base rate plus 4.00%. The base rate is determined by reference to the highest of BMO’s prime rate, the Federal Funds Effective Rate plus 0.50%, or the one-month LIBOR for U.S. dollars plus 1.00%. The applicable margin for loans under the Revolving Credit Facility is in a range of 4.00% to 3.75% for LIBOR loans and 3.00% to 2.75% for base rate loans, depending on Digi’s consolidated leverage ratio. In addition to paying interest on the outstanding balance under the Credit Facility, we are required to pay a commitment fee on the non-utilized commitments thereunder which is also reported in interest expense. Our weighted average interest rate at September 30, 2022 was 6.85%.

The debt issuance costs and remaining balance under the Prior Credit Facility totaled $2.3 million at November 1, 2021. Of this amount $1.9 million was written off and included in interest expense upon the entry into the new amendment and $0.4 million is being amortized over the term of the amended loan and reported in interest expense. Digi incurred an additional $11.7 million and $1.7 million in debt issuance costs relating to the November 1, 2021 and December 22, 2021 amendments, respectively. These amounts will be amortized over the term of the amended loan and reported in interest expense.

The Term Loan is payable in quarterly installments, with the balance remaining due at November 2, 2028. The Revolving Loan is due in a lump sum payment at maturity on November 2, 2028, if any amounts are drawn. The fair value of the Term Loan and Revolving Loan approximated carrying value at September 30, 2022.

Digi made early payments against the term loan of $50 million in December 2021, $11.3 million in March 2022, $20 million in June 2022 and $18.7 million in September 2022 for a total of $100 million in fiscal 2022.

7. INDEBTEDNESS (CONTINUED)

The following table is a summary of our long-term indebtedness (in thousands):


	Year ended September 30,
	2022		2021
Revolving loan	$	—	$	48,118
Term loan	250,000		—
Total loans	250,000		48,118
Less unamortized issuance costs	(12,029)		(2,319)
Less current maturities of long-term debt	(15,523)		—
Total long-term debt, net of current portion	$	222,448	$	45,799

The following table is a summary of future maturities of our aggregate long-term debt at September 30, 2022 (in thousands):


Fiscal year	Amount
2023	$	17,500
2024	17,500
2025	17,500
2026	17,500
2027	17,500
2028	162,500
Total long-term debt	$	250,000

Covenants and Security Interest

The agreements governing the Credit Facility contain a number of covenants. Among other thing, these covenants require us to maintain certain financial ratios (net leverage ratio and minimum fixed charge ratio). At September 30, 2022, we were in compliance with our debt covenants. Amounts borrowed under the Credit Facility are secured by substantially all of our assets.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Product Warranty Obligation

12 Months Ended

Sep. 30, 2022

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTY OBLIGATION

The following table summarizes the activity associated with the product warranty accrual (in thousands) and is listed on our consolidated balance sheets within other current liabilities:


	Balance at		Warranties		Settlements		Balance at
Fiscal year	October 1		accrued		made		September 30
2022	$	707	$	537	$	(358)	$	886
2021	$	942	$	244	$	(479)	$	707
2020	$	1,012	$	666	$	(736)	$	942

Leases

12 Months Ended

Sep. 30, 2022

Leases [Abstract]

LEASES

All of our leases are operating leases and primarily consist of leases for office space. For any lease with an initial term in excess of twelve months, the related lease assets and lease liabilities are recognized on our consolidated balance sheets as either operating or financing leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components. We have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of twelve months or less are not recorded on our consolidated balance sheets. Instead we recognize lease expense for these leases on a straight-line basis over the lease term.

Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We generally use a collateralized incremental borrowing rate based on information available at the commencement date, including the lease term, in determining the present value of future payments. When determining our right-of-use asset, we generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised.

Our leases typically require payment of real estate taxes and common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.

The following table shows the supplemental balance sheet information related to our leases (in thousands):


	Balance Sheet Location	September 30, 2022		September 30, 2021
Assets
Operating leases	Operating lease right-of-use assets	$	15,299	$	15,684
Total lease assets		$	15,299	$	15,684

Liabilities

Operating leases	Current portion of operating lease liabilities	$	3,196	$	2,633

Operating leases	Operating lease liabilities	16,978		18,368
Total lease liabilities		$	20,174	$	21,001

The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands):


	Statement of Operations Location	Year ended September 30, 2022		Year ended September 30, 2021
Operating lease cost	Cost of goods sold and SG&A	$	3,783	$	3,504
Variable lease cost	Cost of goods sold and SG&A	1,094		1,094
Short-term lease cost	Cost of goods sold and SG&A	109		127
Total lease cost		$	4,986	$	4,725

9. LEASES (CONTINUED)

The following table presents supplemental information related to operating leases (in thousands):


	Year ended September 30, 2022		Year ended September 30, 2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,998	$	2,707
Right-of-use assets obtained in exchange for new operating lease liabilities	2,615		3,785
Non-cash tenant improvement allowance	$	—	$	1,000


	September 30, 2022
Weighted average remaining lease term - operating leases	7.2 years
Weighted average discount rate - operating leases	2.86	%

The table below reconciles the undiscounted cash flows for each of the first five years as well as all the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of September 30, 2022 (in thousands):


Fiscal year	Amount

2023	$	3,835
2024	3,449
2025	3,041
2026	2,817
2027	1,990
Thereafter	7,224
Total future undiscounted lease payments	22,356
Less imputed interest	(2,182)
Total reported lease liability	$	20,174

Restructuring

12 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING

2021 Restructuring

On October 7, 2020, our Board of Directors approved a reorganization of our IoT Products & Services business segment. The restructuring plan aligns the business segment's organization around product lines. Under this plan, we recorded a charge of $0.7 million for employee termination charges and eliminated 19 employment positions primarily in the U.S. during the three months ended December 31, 2020. In the second quarter of fiscal 2021 we recorded an additional $0.2 million related to this restructuring. In the third quarter of fiscal 2021 we recorded an additional $0.1 million related to this restructuring. The charges relating to this restructuring were fully paid during the fourth quarter of fiscal 2021.

2020 Restructuring

In second quarter of fiscal 2020, we recorded and re-aligned our product management group within IoT Products & Services segment and eliminated two employment positions. We recorded $38 thousand for employee termination charges. This was fully paid during the second quarter of fiscal 2020.

In the third quarter of fiscal 2020, we recorded $95 thousand of restructuring for employee termination charges primarily within our IoT Solutions segment. This resulted in the elimination of 22 employment positions. This restructuring was completed in the fourth quarter of fiscal 2020.

10. RESTRUCTURING (CONTINUED)

Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands):


	2021 Restructuring		2020 Restructuring
	Employee Termination Costs		Employee Termination Costs		Total
Balance at September 30, 2019	$	—	$	—	$	—
Restructuring charge	—		133		133
Payments	—		(117)		(117)
Reversals	—		(16)		(16)
Foreign currency fluctuation	—		—		—
Balance at September 30, 2020	—		—		—
Restructuring charge	995		—		995
Payments	(935)		—		(935)
Reversals	—		—		—
Foreign currency fluctuation	(60)		—		(60)
Balance at September 30, 2021	$	—	$	—	$	—

Revenue

12 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

Revenue Disaggregation

The following table summarizes our revenue by geographic location of our customers:


	Year ended September 30,
($ in thousands)	2022		2021		2020
North America, primarily the United States	$	302,409	$	227,923	$	213,487
Europe, Middle East & Africa	53,612		46,024		40,076
Rest of world	32,204		34,685		25,708
Total revenue	$	388,225	$	308,632	$	279,271

The following table summarizes our revenue by the timing of revenue recognition:


	Year ended September 30,
($ in thousands)	2022		2021		2020
Transferred at a point in time	$	302,535	$	274,960	$	253,371
Transferred over time	85,690		33,672		25,900
Total revenue	$	388,225	$	308,632	$	279,271

Contract Balances

Contract Assets

Contract assets consist of subscriber assets. These subscriber assets relate to fees in certain contracts that we charge our customers so they can begin using equipment. In these cases, we retain the ownership of the equipment that the customer uses. The total net book value of subscriber assets of $16.5 million and $1.9 million as of September 30, 2022 and September 30, 2021, respectively, are included in property, equipment and improvements, net. The September 30, 2022 balance includes $14.7 million acquired in the acquisition of Ventus. Depreciation expense for these subscriber assets, which is included in cost of sales, was $3.2 million and $1.9 million for the year ended September 30, 2022 and September 30, 2021, respectively. We depreciate the cost of this equipment over its useful life.

11. REVENUE (CONTINUED)

.Contract Liabilities

The timing of revenue recognition may differ from the timing of invoicing to customers. Customers are invoiced for subscription services on a monthly, quarterly or annual basis. Contract liabilities consist of unearned revenue related to annual or multi-year contracts for subscription services and related implementation fees, as well as product sales that have been invoiced, but not yet fulfilled.

Our contract liabilities were $21.6 million and $15.5 million at September 30, 2022 and 2021, respectively. The September 30, 2022 balance includes $2.1 million assumed from the Ventus acquisition completed in November 2021.

Of the $15.5 million and $9.3 million balances as of September 30, 2021 and 2020, Digi recognized $13.2 million and $7.5 million in the year ended September 30, 2022 and 2021, respectively.

Remaining Transaction Price

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. As of September 30, 2022 approximately $21.6 million of revenue is expected to be recognized from remaining performance obligations for subscriptions contracts. We expect to recognize revenue on approximately $19.8 million of remaining performance obligations over the next twelve months. Revenue from the remaining performance obligations we expect to recognize over a range of two years to five years.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Income Taxes

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

12. INCOME TAXES

The components of income before income taxes are (in thousands):


	Year ended September 30,
	2022		2021		2020
United States	$	13,220	$	5,380	$	3,756
International	5,408		3,619		3,707
Income before income taxes	$	18,628	$	8,999	$	7,463

The components of the income tax benefit are (in thousands):


	Year ended September 30,
	2022		2021		2020
Current:
Federal	$	281	$	1,388	$	709
State	766		242		572
Foreign	1,277		1,678		1,128
Deferred:
Federal	(2,982)		(3,627)		(2,911)
State	—		(618)		—
Foreign	(97)		(430)		(446)
Income tax (benefit) expense	$	(755)	$	(1,367)	$	(948)

12. INCOME TAXES (CONTINUED)

Net deferred tax liability consists of (in thousands):


	As of September 30,
	2022		2021

Non-current deferred tax asset	$	—	$	439

Non-current deferred tax liability	(9,666)		(13,493)
Net deferred tax liability	$	(9,666)	$	(13,054)

Depreciation and amortization	$	(4,930)	$	(1,399)
Lease asset	(3,392)		(3,683)
Lease liability	4,497		4,941
Inventories	2,586		755
Compensation costs	3,999		4,064
Other accruals	7,413		6,387
Tax credit carryforwards	7,445		3,026
Valuation allowance	(2,976)		(2,186)
Identifiable intangible assets	(24,308)		(24,959)

Net deferred tax liability	$	(9,666)	$	(13,054)

As of September 30, 2022, we had $3.0 million of tax carryforwards (net of reserves) related to state research and development tax credits. We also had $0.5 million of carryforwards consisting of a U.S. net operating losses of $0.2 million, non-U.S. net operating losses of $0.2 million and foreign tax credits of $0.1 million. The majority of our state research and development tax credits have a 15-year carryforward period. The majority of our non-U.S. net operating losses have an unlimited carryforward period. Our non-U.S. tax credit carryforwards will expire in 2034.Our valuation allowance for certain U.S. and foreign locations was $3.0 million at September 30, 2022 and $2.2 million at September 30, 2021. The increase in valuation allowance is primarily the result of additional reserves against R&D credits. The deferred tax assets realized could vary if there are differences in the timing or amount of future reversals of existing deferred tax liabilities or changes in the amounts of future taxable income. If future taxable income projections are not realized, an additional valuation allowance may be required. This would be reflected as income tax expense at the time that any such change in future taxable income is determined.

12. INCOME TAXES (CONTINUED)

The reconciliation of the statutory federal income tax amount to our income tax benefit is (in thousands):


	Year ended September 30,
	2022		2021		2020
Statutory income tax amount	$	3,912	$	1,890	$	1,567
Increase (decrease) resulting from:
State taxes, net of federal benefits	85		319		392


Transaction costs	2		60		143
Employee stock purchase plan	98		79		127
Foreign operations	1,552		556		431
Non-deductible executive compensation	291		150		115
Change in valuation allowance	—		(2,187)		173
Capital Loss Expiration	—		2,301		—
Utilization of research and development tax credits	(2,780)		(3,116)		(2,881)

Deferred balance sheet remeasure	—		(952)		—
ASU 2016-09 excess stock compensation	(2,967)		(1,131)		(673)
Contingent consideration	(1,239)		1,212		(27)
Changes from provision to return	413		(458)		(111)
Adjustment of tax contingency reserves	417		329		151
U.S. deduction for foreign export sales	(584)		(630)		(355)


Global intangible low-taxed income	—		33		31
Other, net	45		178		(31)
Income tax (benefit) expense	$	(755)	$	(1,367)	$	(948)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands):


	Year ended September 30,
	2022		2021		2020
Unrecognized tax benefits at beginning of fiscal year	$	2,908	$	2,600	$	1,713
Increases related to:
Prior year income tax positions	—		40		756
Current year income tax positions	524		507		425
Decreases related to:
Prior year income tax positions	(21)		(155)		—
Settlements	—		—		(7)
Expiration of statute of limitations	(95)		(84)		(287)
Unrecognized tax benefits at end of fiscal year	$	3,316	$	2,908	$	2,600

The total amount of unrecognized tax benefits ("UTB") at September 30, 2022 that, if recognized, would affect our effective tax rate was $3.3 million. We expect that it is reasonably possible that the total amounts of UTB will decrease by approximately $0.3 million over the next 12 months due to the expiration of various statutes of limitations. Of the $3.3 million of UTB, $2.4 million is included in non-current income taxes payable and $0.9 million is included with non-current deferred tax liabilities on the consolidated balance sheets at September 30, 2022.

We recognize interest and penalties related to income tax matters in income tax expense. During fiscal 2022 and 2021, there were insignificant amounts of interest and penalties related to income tax matters in income tax expense. We accrued $0.1 million in interest and no penalties related to unrecognized tax benefits as of September 30, 2022 and 2021. These accrued interest and penalties are included in our non-current income taxes payable on our consolidated balance sheets.

12. INCOME TAXES (CONTINUED)

We operate in multiple tax jurisdictions both in the U.S. and outside of the U.S. and face audits from various tax authorities regarding transfer pricing, tax credits, and other matters. Accordingly we must determine the appropriate allocation of income to each of these jurisdictions. This determination requires us to make several estimates and assumptions. Tax audits associated with the allocation of this income, and other complex issues, may require an extended period of time to resolve and may result in adjustments to our income tax balances in those years that are material to our consolidated balance sheets and results of operations.

We file a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to state and local or non-U.S. income tax examinations by tax authorities for years before fiscal year 2018. We are currently under U.S. federal examination for fiscal years 2018, and there is otherwise very limited audit activity of our income tax returns in U.S. state jurisdictions or international jurisdictions.

At September 30, 2022, the majority of undistributed foreign earnings are taxed under the one time transition tax and the global intangible low-taxed income ("GILTI") provision of the Tax Cuts and Jobs Act of 2017. Additionally, the previously un-taxed accumulated undistributed foreign earnings from prior fiscal years are still permanently reinvested and, as such, we have not accrued additional U.S. tax. It is our position that the earnings of our foreign subsidiaries are to be reinvested indefinitely to fund current operations and provide for future international expansion opportunities and only repatriate earnings to the extent that U.S. taxes have already been recorded. As of September 30, 2022, we are permanently reinvested with respect to previously non-taxed accumulated earnings in all jurisdictions.

Although we have no current need to repatriate historical foreign earnings that have not been taxed in the U.S., if we change our assertion from indefinitely reinvesting undistributed foreign earnings, we would have to accrue applicable taxes. The amount of any taxes and the application of any tax credits would be determined based on the income tax laws at the time of such repatriation. Under current tax law, we estimate the unrecognized tax liability to be immaterial.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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+ Details

Equity	12 Months Ended
Equity	Sep. 30, 2022
Equity [Abstract]
Stockholders' Equity Note Disclosure	STOCKHOLDERS' EQUITY Public Offering of Common Stock During March 2021 we sold 4,025,000 shares of our common stock at a public offering price of $19.50 per share. The shares offered were registered pursuant to a registration statement that we filed with the Securities and Exchange Commission. We received net proceeds of $73.8 million, net of transaction expenses of $0.3 million related to the public offering.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Stock-Based Compensation

12 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

14. STOCK-BASED COMPENSATION

Stock-based awards were granted under the amended and restated 2021 Omnibus Incentive Plan (the "Amended Plan") beginning January 29, 2022. Prior to that date, such awards made in fiscal 2022 were granted under the 2021 Omnibus Incentive Plan (the "2021 Plan"). Upon stockholder approval of the Amended Plan, we ceased granting awards under the 2021 Plan. Shares subject to awards under the 2021 Plan or any prior plans that are forfeited, canceled, returned to us for failure to satisfy vesting requirements, settled in cash or otherwise terminated without payment also will be available for grant under the Amended Plan. The authority to grant options under the Amended Plan and set other terms and conditions rests with the Compensation Committee of the Board of Directors.

The Amended Plan authorizes the issuance of up to 2,400,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants include our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provides services to us or our affiliates. Options that have been granted under the Amended Plan typically vest over a four-year period and will expire if unexercised after seven years from the date of grant. Restricted stock unit awards ("RSUs") that have been granted to directors typically vest in one year. RSUs that have been granted to executives and employees typically vest in January over a four-year period. Performance stock unit awards ("PSUs") that have been granted to an executive will vest based on achievement of a cumulative adjusted earnings per share metric measured over a three-year period. Share-based compensation expenses recorded for this performance award is reevaluated at each reporting period based on the probability of achievement of the goal. The Amended Plan is scheduled to expire on January 28, 2032. Options under the Amended Plan can be granted as either incentive stock options or non-statutory stock options. The exercise price of options and the grant date price of RSUs and PSUs is determined by our Compensation Committee but will not be less than the fair market value of our common stock based on the closing price as of the date of grant. Upon exercise of options or

14. STOCK-BASED COMPENSATION (CONTINUED)

settlement of vested restricted stock units or performance stock units, we issue new shares of stock. As of September 30, 2022, there were approximately 1,793,203 shares available for future grants under the Amended Plan.

The 2021 Plan, under which grants ceased upon approval of the Amended Plan, authorized the issuance of up to 1,400,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants included our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provided services to us or our affiliates. Options that have been granted under the 2021 Plan typically vested over a four-year period and expired if unexercised after seven years from the date of grant. Restricted stock unit awards ("RSUs") that were granted to directors typically vested in one year. RSUs that were granted to executives and employees typically vested in January over a four-year period. Awards may no longer be granted under the 2021 Plan as grants ceased upon approval of the Amended Plan effective January 29, 2022 at the Annual Meeting of Stockholders. The exercise price of options and the grant date price of restricted stock units was determined by our Compensation Committee but could be less than the fair market value of our common stock based on the closing price on the date of grant.

Cash received from the exercise of stock options was $9.5 million, $8.5 million and $5.9 million for the year ended September 30, 2022, 2021 and 2020, respectively. Our stock option plans allow the net exercise of options. Shares with a value of $4.3 million were forfeited to satisfy tax withholding for the year ended September 30, 2022, and no amounts were forfeited in fiscal 2021 or 2020.

Our equity plans and corresponding forms of award agreements generally have provisions allowing employees to elect to satisfy tax withholding obligations through the delivery of shares, having us retain a portion of shares issuable under the award or paying cash to us for the withholding. During fiscal 2022, 2021 and 2020 our employees forfeited 102,392, 116,195 and 103,492 shares, respectively in order to satisfy $2.4 million, $2.1 million and $1.8 million, respectively, of withholding tax obligations related to stock-based compensation, pursuant to terms of awards under our board and shareholder-approved compensation plans.

We sponsor an Employee Stock Purchase Plan, as amended and restated as of December 10, 2019 (the "Purchase Plan"), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The Purchase Plan allows eligible participants the right to purchase common stock on a quarterly basis at the lower of 85% of the market price at the beginning or end of each three-month offering period. The most recent amendments to the Purchase Plan, ratified by our stockholders on January 29, 2020, increased the total number of shares to 3,425,000 that may be purchased under the plan. Employee contributions to the Purchase Plan were $1.5 million, $1.2 million and $1.1 million in fiscal 2022, 2021 and 2020, respectively. Pursuant to the Purchase Plan, 80,225, 78,644, and 117,826 shares of common stock were issued to employees during fiscal 2022, 2021 and 2020, respectively. Shares are issued under the Purchase Plan from treasury stock. As of September 30, 2022, 552,848 shares of common stock were available for future issuances under the Purchase Plan.

Stock-based compensation expense is included in the consolidated results of operations as (in thousands):


	Year ended September 30,
	2022		2021		2020
Cost of sales	$	466	$	371	$	291
Sales and marketing	2,503		2,069		2,318
Research and development	1,236		1,032		1,197
General and administrative	4,373		4,663		3,431
Stock-based compensation before income taxes	8,578		8,135		7,237
Income tax benefit	(1,819)		(1,755)		(1,523)
Stock-based compensation after income taxes	$	6,759	$	6,380	$	5,714

14. STOCK-BASED COMPENSATION (CONTINUED)

Stock Options

Below is a summary of our stock options as of September 30, 2022 and changes during the twelve months then ended (in thousands, except per common share amounts):


	Options Outstanding	Weighted Average Exercise Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance at September 30, 2021	2,952	$13.20
Granted	575	22.52
Exercised	(1,532)	14.75
Forfeited / Canceled	(205)	17.86
Balance on June 30, 2022	1,790	$17.29	4.7	$	29,095

Exercisable at June30, 2022	846,530	$14.26	3.6	$	16,325

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $33.54 as of September 30, 2022, which would have been received by the option holders had all option holders exercised their options as of that date.

The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The total intrinsic value of all options exercised during each of the twelve months ended September 30, 2022, 2021 and 2020 was $20.3 million, $6.5 million and $3.7 million, respectively.

The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions:


	Year ended September 30,
	2022		2021		2020
Weighted average per option grant date fair value	$	10.37	$	6.97	$	6.17
Assumptions used for option grants:
Risk free interest rate	1.25% - 3.00%		0.51% - 1.035%		0.37% - 1.73%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	45% - 46%		44% - 46%		36% - 44%
Weighted average volatility	46%		45%		36%
Expected dividend yield	0%		0%		0%

The fair value of each option award granted during the periods presented was estimated using the Black-Scholes option valuation model that uses the assumptions noted in the above table. Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and employee termination information within the valuation model. The expected term of options granted is derived from the vesting period and historical information and represents the period of time that options granted are expected to be outstanding. The risk-free rate used is the zero-coupon U.S. Treasury bond rate in effect at the time of the grant whose maturity equals the expected term of the option.

As of September 30, 2022, the total unrecognized compensation cost related to non-vested stock-based compensation arrangements was $7.1 million. The related weighted average period over which this cost is expected to be recognized was approximately 1.8 years.

14. STOCK-BASED COMPENSATION (CONTINUED)

As of September 30, 2022, the weighted average exercise price and remaining life of the stock options were (in thousands, except remaining life and exercise price):


Options Outstanding					Options Exercisable
Range of Exercise Prices	Options Outstanding	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price		Number of Shares Vested	Weighted Average Exercise Price
$7.40 - $11.87	385	2.94	$	11.11	355	$	11.10
$12.48 - $16.75	386	4.33	$	15.19	234	$	14.79
$17.10 - $17.94	425	4.49	$	17.61	235	$	17.69
$18.20 - $21.53	321	6.17	$	20.78	11	$	19.95
$23.46 - $24.18	227	6.15	$	23.60	—	$	—
$25.15 - $25.15	30	5.27	$	25.15	12	$	25.15
$33.53 - $33.53	16	6.85	$	33.53	—	$	—
$7.40 - $33.53	1,790	4.67	$	17.29	847	$	14.26

The total grant date fair value of shares vested was $3.0 million, $2.6 million and $3.7 million in each of fiscal 2022, 2021 and 2020, respectively.

Non-vested Stock Units

The following table presents a summary of our non-vested restricted stock units as of September 30, 2022 and changes during the twelve months then ended (in thousands, except per common share amounts):


	RSUs			PSUs
	Number of Awards	Weighted Average Grant Date Fair Value		Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at September 30, 2021	812	$	15.72	18	$	25.15
Granted	394	$	22.72	12	$	19.78
Vested	(308)	$	15.55	(3)	$	25.15
Canceled	(156)	$	17.46	—	$	—
Nonvested at June 30, 2022	742	$	19.14	27	$	22.69

As of September 30, 2022, the total unrecognized compensation cost related to non-vested restricted stock units was $10.7 million. The related weighted average period over which this cost is expected to be recognized was approximately 2.1 years.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Sep. 30, 2022
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANSWe currently have a savings and profit sharing plan pursuant to Section 401(k) of the Internal Revenue Code, whereby eligible employees may contribute up to 25% of their pre-tax earnings subject to certain limits under law.We provide a match of 100% on the first 3% of each employee’s bi-weekly contribution and a 50% match on the next 2% of each employee’s bi-weekly contribution. The employer matching contribution was reinstated for all employees after a suspension effective May 3, 2020 and ending on December 31, 2020 in the United States and Canada. We provided matching contributions of $3.1 million for fiscal 2022, $2.4 million for fiscal 2021 and $1.7 million for fiscal 2020. In addition, we may make contributions to the plan at the discretion of the Board of Directors.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Leases We lease certain of our buildings and equipment under noncancelable lease agreements. Please refer to Note 9 to our consolidated financial statements for additional information. Litigation In November 2018, DimOnOff Inc., a company headquartered in Quebec City, Quebec, Canada ("DimOnOff"), which sells control systems in the building automation and street lighting markets sued us and a former distributor from whom DimOnOff purchased certain Digi products. The suit was brought in the Superior Court of the Province of Quebec in the District of Quebec (Canada) and alleges certain Digi products it purchased and incorporated into street lighting systems in a Canadian city were defective causing some of the street lights to malfunction. It alleged damages of just over CAD 1.0 million. During the second quarter of fiscal 2021, the lawsuit was settled and no payment will be made by us. However, we will be providing DimOnOff reduced product pricing on a limited number of products for an amount substantially lower than what was claimed in the lawsuit. In addition to the matter discussed above, in the normal course of business, we are presently, and expect in the future to be, subject to various claims and litigation with third parties such as non-practicing intellectual property entities as well as customers, vendors and/or employees. There can be no assurance that any claims by third parties, if proven to have merit, will not materially adversely affect our business, liquidity or financial condition.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Sep. 30, 2022

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II- Valuation and Qualifying Accounts

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

DIGI INTERNATIONAL INC.

(in thousands)


			Additions
Description	Balance at beginning of period		Charged to costs and expenses		Charged to Other Accounts		Deductions		Balance at end of period
Valuation allowance - deferred tax assets
September 30, 2022	$	2,186	$	790	$	—	$	—	$	2,976
September 30, 2021	$	4,372	$	(2,186)	$	—	$	—	$	2,186
September 30, 2020	$	3,810	$	670	$	—	$	108	$	4,372






Reserve for future credit returns and pricing adjustments
September 30, 2022	$	930	$	17,087	$	—	$	16,886	$	1,131
September 30, 2021	$	1,476	$	15,477	$	—	$	16,023	$	930
September 30, 2020	$	2,677	$	17,816	$	—	$	19,017	$	1,476

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Principles of Consolidation

Principles of ConsolidationThe consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Accounting Estimates

Cash Equivalents

Cash and Cash Equivalents

Accounts Receivable

The following table presents a reconciliation of the allowance for credit losses (in thousands):


	Year ended September 30,
	2022		2021
Balance at beginning of period	$	3,934	$	3,778
Additions	1,475		2,803
Uncollectible accounts charged to allowance, net of recoveries	(2,124)		(2,647)
Balance at end of period	$	3,285	$	3,934

Inventories

InventoriesInventories are valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating net realizable value.

Property, Equipment and Improvements, Net

Identifiable Intangible Assets

Goodwill

Contingent Consideration

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Warranties

Treasury stock

Treasury Stock

Revenue Recognition

We determine the amount of revenue to be recognized through application of the following steps:

•identification of the contract, or contracts with a customer;

•identification of the performance obligations in the contract;

•determination of the transaction price;

•allocation of the transaction price to the performance obligations in the contract; and

•recognition of revenue when or as we satisfy the performance obligations.

Hardware Product Revenue and SmartSense by Digi Equipment Revenue and Associated Installation Fees

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Subscription and Support Services Revenue

Professional Services Revenue

Contracts with Multiple Performance Obligations

Research and Development

Income Taxes

Stock-Based Compensation

Foreign Currency Translation

Foreign Currency TranslationFinancial position and results of operations of our international subsidiaries are measured using local currencies as the functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect at the end of each reporting period. For our international subsidiaries, our statements of operations accounts are translated at the weighted average rates of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing currency exchange rates from period to period are included in accumulated other comprehensive loss in stockholders’ equity. Gains and losses on foreign currency exchange transactions, as well as translation gains or losses on transactions denominated in currencies other than an entity’s functional currency, are reflected in the statement of operations. During fiscal 2022, 2021 and 2020 there were net transaction gains (losses) of $0.1 million, $(0.1) million and $(0.6) million, respectively that were recorded in other income, net. We manage our net asset or net liability position for U.S. dollar accounts in our foreign locations to reduce our foreign currency risk. We have not implemented a formal hedging strategy.

Comprehensive Income

Net Income Per Common Share

Recent Accounting Developments

Recently Adopted Accounting Pronouncements

Potential Impacts of COVID-19 on Our Business

Potential Impacts of COVID-19 on our Business

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Accounts Receivable, Allowance for Credit Loss

The following table presents a reconciliation of the allowance for credit losses (in thousands):


	Year ended September 30,
	2022		2021
Balance at beginning of period	$	3,934	$	3,778
Additions	1,475		2,803
Uncollectible accounts charged to allowance, net of recoveries	(2,124)		(2,647)
Balance at end of period	$	3,285	$	3,934

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data):


	Year ended September 30,
	2022		2021		2020
Numerator:
Net income	$	19,383	$	10,366	$	8,411
Denominator:
Denominator basic net income per common share — weighted average shares outstanding	35,031		32,111		28,849
Effect of dilutive securities:
Stock options and restricted stock units	964		1,283		697
Denominator diluted net income per common share — adjusted weighted average shares	35,995		33,394		29,546

Net income per common share, basic	$	0.55	$	0.32	$	0.29
Net income per common share, diluted	$	0.54	$	0.31	$	0.28

Acquisitions (Tables)

12 Months Ended

Sep. 30, 2022

Business Combinations [Abstract]

Business Acquisition, Pro Forma Information

The following consolidated pro forma information is presented as if the acquisition had occurred on October 1, 2020 (in thousands):


	Year ended September 30,
		2022		2021
Net sales		$	393,290	$	360,820
Net income (loss)		$	14,274	$	(2,701)

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the fair values of Ventus assets acquired and liabilities assumed as of the acquisition date (in thousands):


Cash	$	350,000

Fair value of net tangible assets acquired	$	20,365
Identifiable intangible assets:
Customer relationships	179,000
Purchased and core technology	16,000
Trademarks	16,000
Goodwill	118,635
Total	$	350,000

The following table summarizes the fair values of Haxiot assets acquired, net of $50 thousand of cash acquired, and liabilities assumed as of the acquisition date (in thousands).


Cash	$	7,096
Contingent consideration	5,900
Total	$	12,996

Fair value of net tangible assets acquired	$	86
Identifiable intangible assets:
Customer relationships	3,900
Purchased and core technology	1,050
Trademarks	500
Deferred tax liability on identifiable intangible assets	(1,145)
Goodwill	8,605
Total	$	12,996

The following table summarizes the fair values of Ctek assets acquired and liabilities assumed as of the acquisition date (in thousands).


Cash	$	12,012
Contingent consideration	300
Working capital adjustment	422
Total	$	12,734

Fair value of net tangible assets acquired	397
Identifiable intangible assets:
Customer relationships	5,100
Purchased and core technology	1,300
Trademarks	70
Backlog	1,000
Goodwill	4,867
Total	$	12,734

Goodwill and other Identifiable Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET

Identifiable Intangible Assets, Net

Amortizable identifiable intangible assets, net as of September 30, 2022 and 2021 were comprised of the following (in thousands):


	September 30, 2022						September 30, 2021
	Gross carrying amount		Accum. amort.		Net		Gross carrying amount		Accum. amort.		Net
Purchased and core technology	$	85,016	$	(55,854)	$	29,162	$	69,162	$	(50,701)	$	18,461
License agreements	112		(112)		—		112		(112)		—
Patents and trademarks	39,711		(17,666)		22,045		23,491		(14,978)		8,513
Customer relationships	309,212		(58,355)		250,857		130,278		(39,973)		90,305
Non-compete agreements	600		(600)		—		600		(600)		—
Order backlog	1,000		(1,000)		—		1,000		(250)		750
Total	$	435,651	$	(133,587)	$	302,064	$	224,643	$	(106,614)	$	118,029

Amortization expense is included in our consolidated statements of operations in cost of sales and general and administrative expense. Amortization expense in cost of sales includes amortization for purchased and core technology and certain patents and trademarks.

Amortization expense for fiscal years 2022, 2021 and 2020 was as follows (in thousands):


Fiscal year	Total
2022	$	27,195
2021	$	16,534
2020	$	14,754

3. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED)

Estimated amortization expense for the next five fiscal years is as follows (in thousands):


Fiscal year	Total
2023	$	25,692
2024	$	24,977
2025	$	21,520
2026	$	20,593
2027	$	18,582

The changes in the carrying amount of goodwill by reportable segments are (in thousands):


	IoT Products & Services		IoT Solutions		Total
Balance on September 30, 2020	$	160,365	$	49,770	$	210,135
Acquisitions	13,472		—		13,472
Adjustments	847		—		847
Foreign currency translation adjustment	496		572		1,068
Balance on September 30, 2021	$	175,180	$	50,342	$	225,522
Acquisition	—		118,635		118,635
Adjustments	186		(631)		(445)
Foreign currency translation adjustment	(2,435)		(800)		(3,235)
Balance on September 30, 2022	$	172,931	$	167,546	$	340,477

No goodwill impairment has been recorded in any period presented.

Goodwill represents the excess of cost over the fair value of net identifiable assets acquired. Goodwill is quantitatively tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. We continue to have two reportable segments, our IoT Products & Services segment and our IoT Solutions segment (see Note 4). Effective with the reorganization announcement on October 7, 2020 (see Note 10), our IoT Products & Services business is now structured to include four reporting units under the IoT Products & Services segment, each with a reporting manager: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. Due to the reorganization, we performed our fiscal third quarter 2021 annual impairment test for those four reporting units along with our IoT Solutions segment. Following our acquisition of Ventus, IoT Solutions is comprised of two reporting units. All six reporting units were included in our fiscal third quarter 2022 annual impairment test.

For our quantitative goodwill impairment tests, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the carrying amount of a reporting unit is higher than its estimated fair value, then an impairment loss must be recognized for the excess. Fair values for the six reporting units were each estimated on a standalone basis using a weighted combination of the income approach and market approach.

The income approach indicates the fair value of a business based on the value of the cash flows the business or asset can be expected to generate in the future. A commonly used variation of the income approach used to value a business is the discounted cash flow (“DCF”) method. The DCF method is a valuation technique in which the value of a business is estimated on the earnings capacity, or available cash flow, of that business. Earnings capacity represents the earnings available for distribution to stockholders after consideration of the reinvestment required for future growth. Significant judgment is required to estimate the amount and timing of future cash flows for each reporting unit and the relative risk of achieving those cash flows.

3. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED)

The market approach indicates the fair value of a business or asset based on a comparison of the business or asset to comparable publicly traded companies or assets and transactions in its industry as well as our prior acquisitions. This approach can be estimated through the guideline company method. This method indicates fair value of a business by comparing it to publicly traded companies in similar lines of business. After identifying and selecting the guideline companies, we make judgments about the comparability of the companies based on size, growth rates, profitability, risk, and return on investment in order to estimate market multiples. These multiples are then applied to the reporting units to estimate a fair value.

Assumptions and estimates to determine fair values under the income and market approaches are complex and often subjective. They can be affected by a variety of factors. These include external factors such as industry and economic trends. They also include internal factors such as changes in our business strategy and our internal forecasts. Changes in circumstances or a potential event could negatively affect the estimated fair values. We will continue to monitor potential COVID-19 industry and demand impacts as this could potentially affect our cash flows and market capitalization. If our future operating results do not meet current forecasts or if we experience a sustained decline in our market capitalization that is determined to be indicative of a reduction in fair value of one or more of our reporting units, we may be required to record future impairment charges for goodwill.

Results of our Fiscal 2022 Annual Impairment Test

As of June 30, 2022, we had a total of $32.7 million of goodwill for the Enterprise Routers reporting unit, $57.1 million of goodwill for the Console Servers reporting unit, $63.7 million of goodwill for the OEM Solutions reporting unit, $20.4 million of goodwill for the Infrastructure Management reporting unit, $49.5 million of goodwill for the SmartSense reporting unit and $118.3 million of goodwill for the Ventus reporting unit. At June 30, 2022, the fair value of goodwill exceeded the carrying value for all six reporting units. SmartSense and Ventus fair values exceeded carrying values by less than 10%. Implied fair value for each reporting unit was calculated on a standalone basis using a weighted combination of the income approach and market approach. The implied fair values of each reporting unit were added together along with our unallocated assets to get an indicated value of total equity to which a range of indicated value of total equity was derived. This range was compared to the total market capitalization of $852.0 million as of June 30, 2022. This implied a range of control (deficit)/ premiums of (5.6)% to 7.9%. This range of control premiums fell below the control premiums observed in the last five years in the communications equipment industry. As a result, the market capitalization reconciliation analysis proved support for the reasonableness of the fair values estimated for each individual reporting unit.

Schedule of Amortizable Identifiable Intangible Assets

Amortizable identifiable intangible assets, net as of September 30, 2022 and 2021 were comprised of the following (in thousands):


	September 30, 2022						September 30, 2021
	Gross carrying amount		Accum. amort.		Net		Gross carrying amount		Accum. amort.		Net
Purchased and core technology	$	85,016	$	(55,854)	$	29,162	$	69,162	$	(50,701)	$	18,461
License agreements	112		(112)		—		112		(112)		—
Patents and trademarks	39,711		(17,666)		22,045		23,491		(14,978)		8,513
Customer relationships	309,212		(58,355)		250,857		130,278		(39,973)		90,305
Non-compete agreements	600		(600)		—		600		(600)		—
Order backlog	1,000		(1,000)		—		1,000		(250)		750
Total	$	435,651	$	(133,587)	$	302,064	$	224,643	$	(106,614)	$	118,029

Schedule of Amortization Expense

Amortization expense for fiscal years 2022, 2021 and 2020 was as follows (in thousands):


Fiscal year	Total
2022	$	27,195
2021	$	16,534
2020	$	14,754

Schedule of Estimated Future Amortization Expense Related to Identifiable Intangible Assets

Estimated amortization expense for the next five fiscal years is as follows (in thousands):


Fiscal year	Total
2023	$	25,692
2024	$	24,977
2025	$	21,520
2026	$	20,593
2027	$	18,582

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill by reportable segments are (in thousands):


	IoT Products & Services		IoT Solutions		Total
Balance on September 30, 2020	$	160,365	$	49,770	$	210,135
Acquisitions	13,472		—		13,472
Adjustments	847		—		847
Foreign currency translation adjustment	496		572		1,068
Balance on September 30, 2021	$	175,180	$	50,342	$	225,522
Acquisition	—		118,635		118,635
Adjustments	186		(631)		(445)
Foreign currency translation adjustment	(2,435)		(800)		(3,235)
Balance on September 30, 2022	$	172,931	$	167,546	$	340,477

Segment Information and Major Customers (Tables)

12 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Summary operating results for each of our segments were as follows (in thousands):


	Year ended September 30,
		2022		2021		2020
Revenue
IoT Products & Services		$	297,645	$	264,173	$	249,530
IoT Solutions		90,580		44,459		29,741
Total revenue		$	388,225	$	308,632	$	279,271
Gross Profit
IoT Products & Services		$	160,117	$	144,472	$	129,349
IoT Solutions		56,169		22,185		14,623
Total gross profit		$	216,286	$	166,657	$	143,972
Operating Income (loss)
IoT Products & Services		$	41,562	$	18,212	$	27,216
IoT Solutions		(3,342)		(7,684)		(15,899)
Total operating income		$	38,220	$	10,528	$	11,317
Depreciation and Amortization
IoT Products & Services		$	13,974	$	13,109	$	11,521
IoT Solutions		19,865		7,768		7,778
Total depreciation and amortization		$	33,839	$	20,877	$	19,299

Payments to Acquire Property, Plant and Equipment by Segment

Total expended for property, plant and equipment was as follows (in thousands):


	Year ended September 30,
	2022		2021		2020
IoT Products & Services	$	1,952	$	2,257	$	878
IoT Solutions*	22		—		21
Total expended for property, plant and equipment	$	1,974	$	2,257	$	899

Schedule of Total Assets by Segment

Total assets for each of our segments were as follows (in thousands):


	As of September 30,
	2022		2021
IoT Products & Services	$	390,128	$	386,934
IoT Solutions	428,867		80,165
Unallocated*	34,900		152,432
Total assets	$	853,895	$	619,531

*Unallocated consists of cash and cash equivalents.

Schedule of Net Property, Equipment and Improvements by Geographical Location

Net property, equipment and improvements by geographic location were as follows (in thousands):


	As of September 30,
	2022		2021
United States	$	27,205	$	11,941
International, primarily Europe	389		191
Total net property, equipment and improvements	$	27,594	$	12,132

Selected Balance Sheet Data (Tables)

12 Months Ended

Sep. 30, 2022

Selected Balance Sheet Data [Abstract]

Schedule of Selected Balance Sheet Data

SELECTED BALANCE SHEET DATA

The following table shows selected balance sheet data (in thousands):


	As of September 30,
	2022		2021
Accounts receivable, net:
Accounts receivable	$	58,967	$	51,828
Less allowance for credit losses	3,285		3,934
Less reserve for future credit returns and pricing adjustments	5,232		4,156
Total accounts receivable, net	$	50,450	$	43,738

Inventories:
Raw materials	$	39,189	$	27,265
Work in process	592		14
Finished goods	33,442		16,642
Total inventories	$	73,223	$	43,921

Property, equipment and improvements, net:
Land	$	520	$	570
Buildings	2,338		2,338
Improvements	9,365		9,367
Equipment	17,990		16,878
Purchased software	4,297		2,868
Furniture and fixtures	2,148		2,174
Subscriber assets	24,636		6,982
Total property, equipment and improvements, gross	61,294		41,177
Less accumulated depreciation and amortization	33,700		29,045
Total property, equipment and improvements, net	$	27,594	$	12,132

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value of Assets Measured on Recurring Basis

The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2021 (in thousands):


			Fair Value Measurements at September 30, 2021 using:
	Total carrying value at September 30, 2021		Quoted price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Liabilities:
Contingent consideration on acquired businesses	$	6,200	$	—	$	—	$	6,200
Total liabilities measured at fair value	$	6,200	$	—	$	—	$	6,200

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):


	Year ended September 30,
	2022		2021
Fair value at beginning of period	$	6,200	$	4,228
Purchase price contingent consideration	—		6,200
Contingent consideration payments	—		(10,000)
Change in fair value of contingent consideration	(6,200)		5,772
Fair value at end of period	$	—	$	6,200

Debt (Tables)

12 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The following table is a summary of our long-term indebtedness (in thousands):


	Year ended September 30,
	2022		2021
Revolving loan	$	—	$	48,118
Term loan	250,000		—
Total loans	250,000		48,118
Less unamortized issuance costs	(12,029)		(2,319)
Less current maturities of long-term debt	(15,523)		—
Total long-term debt, net of current portion	$	222,448	$	45,799

Schedule of Maturities of Long-term Debt [Table Text Block]

The following table is a summary of future maturities of our aggregate long-term debt at September 30, 2022 (in thousands):


Fiscal year	Amount
2023	$	17,500
2024	17,500
2025	17,500
2026	17,500
2027	17,500
2028	162,500
Total long-term debt	$	250,000

Product Warranty Obligation (Tables)

12 Months Ended

Sep. 30, 2022

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Accrual

The following table summarizes the activity associated with the product warranty accrual (in thousands) and is listed on our consolidated balance sheets within other current liabilities:


	Balance at		Warranties		Settlements		Balance at
Fiscal year	October 1		accrued		made		September 30
2022	$	707	$	537	$	(358)	$	886
2021	$	942	$	244	$	(479)	$	707
2020	$	1,012	$	666	$	(736)	$	942

Leases (Tables)

12 Months Ended

Sep. 30, 2022

Leases [Abstract]

Supplemental Balance Sheet Information

The following table shows the supplemental balance sheet information related to our leases (in thousands):


	Balance Sheet Location	September 30, 2022		September 30, 2021
Assets
Operating leases	Operating lease right-of-use assets	$	15,299	$	15,684
Total lease assets		$	15,299	$	15,684

Liabilities

Operating leases	Current portion of operating lease liabilities	$	3,196	$	2,633

Operating leases	Operating lease liabilities	16,978		18,368
Total lease liabilities		$	20,174	$	21,001

Components of Lease Cost

The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands):


	Statement of Operations Location	Year ended September 30, 2022		Year ended September 30, 2021
Operating lease cost	Cost of goods sold and SG&A	$	3,783	$	3,504
Variable lease cost	Cost of goods sold and SG&A	1,094		1,094
Short-term lease cost	Cost of goods sold and SG&A	109		127
Total lease cost		$	4,986	$	4,725

Supplemental Disclosures Leases

The following table presents supplemental information related to operating leases (in thousands):


	Year ended September 30, 2022		Year ended September 30, 2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,998	$	2,707
Right-of-use assets obtained in exchange for new operating lease liabilities	2,615		3,785
Non-cash tenant improvement allowance	$	—	$	1,000


	September 30, 2022
Weighted average remaining lease term - operating leases	7.2 years
Weighted average discount rate - operating leases	2.86	%

Operating Lease Liability Maturity


Fiscal year	Amount

2023	$	3,835
2024	3,449
2025	3,041
2026	2,817
2027	1,990
Thereafter	7,224
Total future undiscounted lease payments	22,356
Less imputed interest	(2,182)
Total reported lease liability	$	20,174

Restructuring (Tables)

12 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve

Below is a summary of the restructuring charges and other activity within the restructuring accrual (in thousands):


	2021 Restructuring		2020 Restructuring
	Employee Termination Costs		Employee Termination Costs		Total
Balance at September 30, 2019	$	—	$	—	$	—
Restructuring charge	—		133		133
Payments	—		(117)		(117)
Reversals	—		(16)		(16)
Foreign currency fluctuation	—		—		—
Balance at September 30, 2020	—		—		—
Restructuring charge	995		—		995
Payments	(935)		—		(935)
Reversals	—		—		—
Foreign currency fluctuation	(60)		—		(60)
Balance at September 30, 2021	$	—	$	—	$	—

Revenue (Tables)

12 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes our revenue by geographic location of our customers:


	Year ended September 30,
($ in thousands)	2022		2021		2020
North America, primarily the United States	$	302,409	$	227,923	$	213,487
Europe, Middle East & Africa	53,612		46,024		40,076
Rest of world	32,204		34,685		25,708
Total revenue	$	388,225	$	308,632	$	279,271

The following table summarizes our revenue by the timing of revenue recognition:


	Year ended September 30,
($ in thousands)	2022		2021		2020
Transferred at a point in time	$	302,535	$	274,960	$	253,371
Transferred over time	85,690		33,672		25,900
Total revenue	$	388,225	$	308,632	$	279,271

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

The components of income before income taxes are (in thousands):


	Year ended September 30,
	2022		2021		2020
United States	$	13,220	$	5,380	$	3,756
International	5,408		3,619		3,707
Income before income taxes	$	18,628	$	8,999	$	7,463

Schedule of Components of Income Tax Provision

The components of the income tax benefit are (in thousands):


	Year ended September 30,
	2022		2021		2020
Current:
Federal	$	281	$	1,388	$	709
State	766		242		572
Foreign	1,277		1,678		1,128
Deferred:
Federal	(2,982)		(3,627)		(2,911)
State	—		(618)		—
Foreign	(97)		(430)		(446)
Income tax (benefit) expense	$	(755)	$	(1,367)	$	(948)

Schedule of Net Deferred Tax Asset

Net deferred tax liability consists of (in thousands):


	As of September 30,
	2022		2021

Non-current deferred tax asset	$	—	$	439

Non-current deferred tax liability	(9,666)		(13,493)
Net deferred tax liability	$	(9,666)	$	(13,054)

Depreciation and amortization	$	(4,930)	$	(1,399)
Lease asset	(3,392)		(3,683)
Lease liability	4,497		4,941
Inventories	2,586		755
Compensation costs	3,999		4,064
Other accruals	7,413		6,387
Tax credit carryforwards	7,445		3,026
Valuation allowance	(2,976)		(2,186)
Identifiable intangible assets	(24,308)		(24,959)

Net deferred tax liability	$	(9,666)	$	(13,054)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the statutory federal income tax amount to our income tax benefit is (in thousands):


	Year ended September 30,
	2022		2021		2020
Statutory income tax amount	$	3,912	$	1,890	$	1,567
Increase (decrease) resulting from:
State taxes, net of federal benefits	85		319		392


Transaction costs	2		60		143
Employee stock purchase plan	98		79		127
Foreign operations	1,552		556		431
Non-deductible executive compensation	291		150		115
Change in valuation allowance	—		(2,187)		173
Capital Loss Expiration	—		2,301		—
Utilization of research and development tax credits	(2,780)		(3,116)		(2,881)

Deferred balance sheet remeasure	—		(952)		—
ASU 2016-09 excess stock compensation	(2,967)		(1,131)		(673)
Contingent consideration	(1,239)		1,212		(27)
Changes from provision to return	413		(458)		(111)
Adjustment of tax contingency reserves	417		329		151
U.S. deduction for foreign export sales	(584)		(630)		(355)


Global intangible low-taxed income	—		33		31
Other, net	45		178		(31)
Income tax (benefit) expense	$	(755)	$	(1,367)	$	(948)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands):


	Year ended September 30,
	2022		2021		2020
Unrecognized tax benefits at beginning of fiscal year	$	2,908	$	2,600	$	1,713
Increases related to:
Prior year income tax positions	—		40		756
Current year income tax positions	524		507		425
Decreases related to:
Prior year income tax positions	(21)		(155)		—
Settlements	—		—		(7)
Expiration of statute of limitations	(95)		(84)		(287)
Unrecognized tax benefits at end of fiscal year	$	3,316	$	2,908	$	2,600

Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

Stock-based compensation expense is included in the consolidated results of operations as (in thousands):


	Year ended September 30,
	2022		2021		2020
Cost of sales	$	466	$	371	$	291
Sales and marketing	2,503		2,069		2,318
Research and development	1,236		1,032		1,197
General and administrative	4,373		4,663		3,431
Stock-based compensation before income taxes	8,578		8,135		7,237
Income tax benefit	(1,819)		(1,755)		(1,523)
Stock-based compensation after income taxes	$	6,759	$	6,380	$	5,714

Schedule of Stock Option Activity

Below is a summary of our stock options as of September 30, 2022 and changes during the twelve months then ended (in thousands, except per common share amounts):


	Options Outstanding	Weighted Average Exercise Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance at September 30, 2021	2,952	$13.20
Granted	575	22.52
Exercised	(1,532)	14.75
Forfeited / Canceled	(205)	17.86
Balance on June 30, 2022	1,790	$17.29	4.7	$	29,095

Exercisable at June30, 2022	846,530	$14.26	3.6	$	16,325

Schedule of Valuation Assumptions


	Year ended September 30,
	2022		2021		2020
Weighted average per option grant date fair value	$	10.37	$	6.97	$	6.17
Assumptions used for option grants:
Risk free interest rate	1.25% - 3.00%		0.51% - 1.035%		0.37% - 1.73%
Expected term	6.00 years		6.00 years		6.00 years
Expected volatility	45% - 46%		44% - 46%		36% - 44%
Weighted average volatility	46%		45%		36%
Expected dividend yield	0%		0%		0%

Schedule of Weighted Average Exercise Price Range and Remaining Contractual Life

As of September 30, 2022, the weighted average exercise price and remaining life of the stock options were (in thousands, except remaining life and exercise price):


Options Outstanding					Options Exercisable
Range of Exercise Prices	Options Outstanding	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price		Number of Shares Vested	Weighted Average Exercise Price
$7.40 - $11.87	385	2.94	$	11.11	355	$	11.10
$12.48 - $16.75	386	4.33	$	15.19	234	$	14.79
$17.10 - $17.94	425	4.49	$	17.61	235	$	17.69
$18.20 - $21.53	321	6.17	$	20.78	11	$	19.95
$23.46 - $24.18	227	6.15	$	23.60	—	$	—
$25.15 - $25.15	30	5.27	$	25.15	12	$	25.15
$33.53 - $33.53	16	6.85	$	33.53	—	$	—
$7.40 - $33.53	1,790	4.67	$	17.29	847	$	14.26

Schedule of Nonvested Restricted Stock Units


	RSUs			PSUs
	Number of Awards	Weighted Average Grant Date Fair Value		Number of Awards	Weighted Average Grant Date Fair Value
Nonvested at September 30, 2021	812	$	15.72	18	$	25.15
Granted	394	$	22.72	12	$	19.78
Vested	(308)	$	15.55	(3)	$	25.15
Canceled	(156)	$	17.46	—	$	—
Nonvested at June 30, 2022	742	$	19.14	27	$	22.69

Summary of Significant Accounting Policies (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 3,934	$ 3,778
Additions	1,475	2,803
Uncollectible accounts charged to allowance, net of recoveries	(2,124)	(2,647)
Balance at end of period	$ 3,285	$ 3,934

Summary of Significant Accounting Policies (Property, Equipment and Improvements, Net) (Details)	12 Months Ended
	Sep. 30, 2022
Furniture and fixtures, purchases software and other equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	3 years
Furniture and fixtures, purchases software and other equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	10 years
Building Improvements and buildings \| Minimum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	10 years
Building Improvements and buildings \| Maximum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	39 years

Summary of Significant Accounting Policies (Identifiable Intangible Assets) (Details)	12 Months Ended
	Sep. 30, 2022
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	20 years 6 months

Summary of Significant Accounting Policies (Goodwill) (Details)	12 Months Ended
	Sep. 30, 2022 segment
Goodwill [Line Items]
Number of reportable segments	2
Number of operating segments	6
IoT Solutions
Goodwill [Line Items]
Number of operating segments	2
IoT Products & Services
Goodwill [Line Items]
Number of operating segments	4

Summary of Significant Accounting Policies (Warranty) (Details)	12 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Warranty period products, minimum	1 year
Warranty period products, maximum	5 years
Warranty period software	1 year

Summary of Significant Accounting Policies (Revenue Recognition) (Details) - Subscription and Circulation	12 Months Ended
	Sep. 30, 2022
Minimum
Customer With Contract, Length Of Contract	1 year
Maximum
Customer With Contract, Length Of Contract	5 years

Summary of Significant Accounting Policies (Foreign Currency Translation) (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Foreign currency net transaction gains (losses)	$ 0.1	$ (0.1)	$ (0.6)

Summary of Significant Accounting Policies (Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Net income	$ 19,383	$ 10,366	$ 8,411
Denominator for basic net income per common share — weighted average shares outstanding	35,031,000	32,111,000	28,849,000
Effect of dilutive securities:
Stock options and restricted stock units	964,000	1,283,000	697,000
Denominator for diluted net income per common share — adjusted weighted average shares	35,995,000	33,394,000	29,546,000
Net income per common share:
Basic	$ 0.55	$ 0.32	$ 0.29
Diluted net income per common share:
Diluted	$ 0.54	$ 0.31	$ 0.28
Antidilutive securities excluded from computation of earnings per share	647,181	1,122,121	2,068,004

Acquisitions Details (Details) - USD ($) $ in Thousands				1 Months Ended	3 Months Ended			12 Months Ended
Acquisitions Details (Details) - USD ($) $ in Thousands	Nov. 01, 2021	Jul. 06, 2021	Mar. 26, 2021	Apr. 30, 2020	Sep. 30, 2022	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Jan. 22, 2018
Business Acquisition [Line Items]
Change in fair value of contingent consideration								$ 6,200	$ (5,772)	$ 128
Operating lease right-of-use assets					$ 15,299			15,299	15,684
Operating lease liabilities					16,978			16,978	18,368
Goodwill					340,477			340,477	225,522	210,135
Total reported lease liability					20,174			20,174	21,001
Haxiot
Business Acquisition [Line Items]
Cash paid at closing			$ 7,100
Change in fair value of contingent consideration					5,900
Acquisition costs									300
Cash acquired			50
Goodwill			8,605
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability			$ 5,900		0			0
Ctek
Business Acquisition [Line Items]
Cash paid at closing		$ 12,012
Change in fair value of contingent consideration					300
Acquisition costs									300
Goodwill		4,867
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability		$ 300			$ 0			0
Ventus
Business Acquisition [Line Items]
Cash paid at closing	$ 350,000
Operating lease right-of-use assets	$ 900
Weighted average useful life identifiable intangibles	19 years 2 months 12 days
Acquisition costs	$ 4,400								3,100
Goodwill	118,635
Maximum borrowing capacity	350,000
Total reported lease liability	$ 900
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual								54,300
Net sales								393,290	360,820
Net income								$ 14,274	(2,701)
Maximum
Business Acquisition [Line Items]
Useful life identifiable intangibles								20 years 6 months
Earn-out payments \| Forecast \| Haxiot \| 2021
Business Acquisition [Line Items]
Earn-out payment maximum															$ 3,000
Earn-out payments \| Forecast \| Haxiot \| 2022
Business Acquisition [Line Items]
Earn-out payment maximum														$ 5,000
Earn-out payments \| Forecast \| Ctek \| 2021
Business Acquisition [Line Items]
Earn-out payment maximum															$ 500
Earn-out payments \| Forecast \| Ctek \| 2022
Business Acquisition [Line Items]
Earn-out payment maximum														$ 1,000
Earn-out payments \| Forecast \| Ctek \| 2023
Business Acquisition [Line Items]
Earn-out payment maximum													$ 1,500
Customer Relationships \| Ventus
Business Acquisition [Line Items]
Weighted average useful life identifiable intangibles	20 years 6 months
Trademarks \| Ventus
Business Acquisition [Line Items]
Weighted average useful life identifiable intangibles	13 years
Technology-Based Intangible Assets \| Ventus
Business Acquisition [Line Items]
Weighted average useful life identifiable intangibles	11 years
Contingent Consideration \| Opengear
Business Acquisition [Line Items]
Change in fair value of contingent consideration						$ (900)	$ (10,000)
Contingent Consideration \| Accelerated Concepts
Business Acquisition [Line Items]
Change in fair value of contingent consideration				$ (2,400)						$ (3,500)
Contingent Consideration \| TempAlert
Business Acquisition [Line Items]
Change in fair value of contingent consideration											$ 0	$ 0
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring \| Contingent Consideration
Business Acquisition [Line Items]
Contingent consideration fair value									$ 6,200
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring \| Contingent Consideration \| Accelerated Concepts
Business Acquisition [Line Items]
Contingent consideration fair value																$ 2,300

Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands				12 Months Ended
	Nov. 01, 2021	Jul. 06, 2021	Mar. 26, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Cash				$ 347,554	$ 19,108	$ 136,098
Goodwill				340,477	$ 225,522	$ 210,135
Ventus
Business Acquisition [Line Items]
Cash	$ 350,000
Cash	350,000
Fair value of net tangible assets acquired	20,365
Goodwill	118,635
Total assets acquired and liabilities assumed	350,000
Ctek
Business Acquisition [Line Items]
Cash		$ 12,012
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability		300		0
Business Combination, Contingent Consideration, Liability		422
Total consideration transferred		12,734
Fair value of net tangible assets acquired		397
Deferred tax liability on identifiable intangible assets		1,000
Goodwill		4,867
Total assets acquired and liabilities assumed		12,734
Haxiot
Business Acquisition [Line Items]
Cash			$ 7,100
Cash			7,096
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability			5,900	$ 0
Total consideration transferred			12,996
Fair value of net tangible assets acquired			86
Deferred tax liability on identifiable intangible assets			1,145
Goodwill			8,605
Total assets acquired and liabilities assumed			12,996
Customer Relationships \| Ventus
Business Acquisition [Line Items]
Identifiable intangible assets	179,000
Customer Relationships \| Ctek
Business Acquisition [Line Items]
Identifiable intangible assets		5,100
Customer Relationships \| Haxiot
Business Acquisition [Line Items]
Identifiable intangible assets			3,900
Trademarks \| Ventus
Business Acquisition [Line Items]
Identifiable intangible assets	16,000
Trademarks \| Ctek
Business Acquisition [Line Items]
Identifiable intangible assets		70
Trademarks \| Haxiot
Business Acquisition [Line Items]
Identifiable intangible assets			500
Purchased and Core Technology \| Ventus
Business Acquisition [Line Items]
Identifiable intangible assets	$ 16,000
Purchased and Core Technology \| Ctek
Business Acquisition [Line Items]
Identifiable intangible assets		$ 1,300
Purchased and Core Technology \| Haxiot
Business Acquisition [Line Items]
Identifiable intangible assets			$ 1,050

Goodwill and other Identifiable Intangible Assets (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($) segment	Jun. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 435,651		$ 224,643
Accumulated amortization	(133,587)		(106,614)
Net	302,064		118,029
Goodwill	$ 340,477		225,522	$ 210,135
Number of operating segments \| segment	6
Number of reportable segments \| segment	2
Market Capitalization		$ 852,000
IoT Solutions
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 167,546		50,342	49,770
Number of operating segments \| segment	2
IoT Products & Services
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 172,931		175,180	$ 160,365
Number of operating segments \| segment	4
Enterpise Routers
Finite-Lived Intangible Assets [Line Items]
Goodwill		32,700
OEM Solutions
Finite-Lived Intangible Assets [Line Items]
Goodwill		63,700
Console Servers
Finite-Lived Intangible Assets [Line Items]
Goodwill		57,100
Infrastructure Mgmt.
Finite-Lived Intangible Assets [Line Items]
Goodwill		20,400
Ventus
Finite-Lived Intangible Assets [Line Items]
Goodwill		118,300
SmartSense
Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 49,500
Measurement Input, Control Premium [Member] \| Maximum
Finite-Lived Intangible Assets [Line Items]
Goodwill Valuation Implied Control Premium		7.90%
Measurement Input, Control Premium [Member] \| Minimum
Finite-Lived Intangible Assets [Line Items]
Goodwill Valuation Implied Control Premium		(5.60%)
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 85,016		69,162
Accumulated amortization	(55,854)		(50,701)
Net	29,162		18,461
License Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	112		112
Accumulated amortization	(112)		(112)
Net	0		0
Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	39,711		23,491
Accumulated amortization	(17,666)		(14,978)
Net	22,045		8,513
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	309,212		130,278
Accumulated amortization	(58,355)		(39,973)
Net	250,857		90,305
Non-compete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	600		600
Accumulated amortization	(600)		(600)
Net	0		0
Order backlog
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,000		1,000
Accumulated amortization	(1,000)		(250)
Net	$ 0		$ 750

Goodwill and other Identifiable Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 30,928	$ 16,534	$ 14,754
2023	25,692
2024	24,977
2025	21,520
2026	20,593
2027	18,582
Cost of Sales and General and Administrative Expense [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 27,195	$ 16,534	$ 14,754

Goodwill and other Identifiable Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Goodwill [Line Items]
Goodwill	$ 225,522	$ 210,135
Acquisition	118,635	13,472
Goodwill, Purchase Accounting Adjustments	(445)	847
Foreign currency translation adjustment	(3,235)	1,068
Goodwill	340,477	225,522
IoT Solutions
Goodwill [Line Items]
Goodwill	50,342	49,770
Acquisition	118,635	0
Goodwill, Purchase Accounting Adjustments	(631)	0
Foreign currency translation adjustment	(800)	572
Goodwill	167,546	50,342
IoT Products and Services
Goodwill [Line Items]
Goodwill	175,180	160,365
Acquisition	0	13,472
Goodwill, Purchase Accounting Adjustments	186	847
Foreign currency translation adjustment	(2,435)	496
Goodwill	$ 172,931	$ 175,180

Segment Information and Major Customers Summary of Operating Results by Segment (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Segment Reporting Information [Line Items]
Revenue	$ 388,225	$ 308,632	$ 279,271
Gross profit	216,286	166,657	143,972
Operating income (loss)	38,220	10,528	11,317
Depreciation and amortization	$ 33,839	20,877	19,299
Number of operating segments \| segment	6
Number of reportable segments \| segment	2
IoT Products & Services
Segment Reporting Information [Line Items]
Revenue	$ 297,645	264,173	249,530
Gross profit	160,117	144,472	129,349
Operating income (loss)	41,562	18,212	27,216
Depreciation and amortization	$ 13,974	13,109	11,521
Number of operating segments \| segment	4
IoT Solutions
Segment Reporting Information [Line Items]
Revenue	$ 90,580	44,459	29,741
Gross profit	56,169	22,185	14,623
Operating income (loss)	(3,342)	(7,684)	(15,899)
Depreciation and amortization	$ 19,865	$ 7,768	$ 7,778
Number of operating segments \| segment	2

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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Segment Information and Major Customers Expended for Property, Plant and Equipment by Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Expended for property, plant and equipment	$ 1,974	$ 2,257	$ 899
Inventory Transfer To Property, Plant And Equipment	6,237	1,838	1,363
IoT Products & Services
Segment Reporting Information [Line Items]
Expended for property, plant and equipment	1,952	2,257	878
IoT Solutions
Segment Reporting Information [Line Items]
Expended for property, plant and equipment	$ 22	$ 0	$ 21

Segment Information and Major Customers Total Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 853,895	$ 619,531
IoT Products & Services
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	390,128	386,934
IoT Solutions
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	428,867	80,165
Unallocated
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 34,900	$ 152,432

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Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1B
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

+ Details

Segment Information and Major Customers Net Property, Equipment and Improvements by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 27,594	$ 12,132
North America, primarily United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	27,205	11,941
International, primarily Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 389	$ 191

Segment Information and Major Customers Geographic revenue (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($) customer	Sep. 30, 2021 USD ($) customer	Sep. 30, 2020 USD ($) customer
Segment Reporting Information [Line Items]
Revenue \| $	$ 388,225	$ 308,632	$ 279,271
Number of customer representing over ten percent of revenue	0
Accounts Receivable
Segment Reporting Information [Line Items]
Number of customer representing over ten percent of revenue	0	0	0
Revenue Benchmark
Segment Reporting Information [Line Items]
Number of customer representing over ten percent of revenue	0	0	0
United States \| U.S. Export Net Sales \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of concentration	22.10%	26.20%	25.10%

- Definition

+ References

+ Details

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Accounts receivable, net:
Accounts receivable	$ 58,967	$ 51,828
Less allowance for doubtful accounts	3,285	3,934
Less reserve for future credit returns and pricing adjustments	5,232	4,156
Total accounts receivable, net	50,450	43,738
Inventories:
Raw materials	39,189	27,265
Work in process	592	14
Finished goods	33,442	16,642
Total Inventories	73,223	43,921
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	61,294	41,177
Less accumulated depreciation and amortization	33,700	29,045
Total property, equipment and improvements, net	27,594	12,132
Land
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	520	570
Buildings
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	2,338	2,338
Improvements
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	9,365	9,367
Equipment
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	17,990	16,878
Purchased Software
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	4,297	2,868
Furniture and Fixtures
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	2,148	2,174
Subscriber assets
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	$ 24,636	$ 6,982

(Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value		$ 0
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value		0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value	$ 0	6,200	$ 4,228
Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value		6,200
Contingent consideration on acquired business \| Fair Value, Inputs, Level 1 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value		0
Contingent consideration on acquired business \| Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value		0
Contingent consideration on acquired business \| Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value		6,200
Estimate of Fair Value Measurement \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value		6,200
Estimate of Fair Value Measurement \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value		$ 6,200

Fair Value Measurements (Reconciliation of Liability) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value of contingent consideration	$ 6,200	$ (5,772)	$ 128
Secured Debt [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value of contingent consideration	(6,200)	5,772
Fair Value, Inputs, Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	6,200	4,228
Purchase price contingent consideration	0	6,200
Contingent consideration payments	0	(10,000)
Fair value at end of period	$ 0	$ 6,200	$ 4,228

Fair Value Measurements (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			12 Months Ended
Fair Value Measurements (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Sep. 30, 2022	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jul. 06, 2021	Mar. 26, 2021	Jan. 22, 2018	Oct. 05, 2015
Estimate of Fair Value Measurement \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value						$ 6,200
Estimate of Fair Value Measurement \| Bluenica Corporation \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value															$ 10,400
Estimate of Fair Value Measurement \| Accelerated Concepts \| Contingent consideration on acquired business \| Fair Value, Measurements, Recurring
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value														$ 2,300
Change in fair value of contingent consideration					$ (6,200)	5,772	$ (128)
Goodwill		$ 340,477			340,477	225,522	210,135
Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value		0			0	6,200	4,228
Contingent consideration on acquired business \| Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Contingent consideration fair value						6,200
Bluenica Corporation \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration						$ 2,900	2,200		$ 0		$ 500
TempAlert \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration								$ 0		$ 0
Accelerated Concepts \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration	$ 2,400						$ 3,500
Opengear \| Contingent consideration on acquired business
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration			$ 900	$ 10,000
Haxiot
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration		(5,900)
Goodwill													$ 8,605
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability		0			0								$ 5,900
Ctek
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Change in fair value of contingent consideration		(300)
Goodwill												$ 4,867
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability		$ 0			$ 0							$ 300

Debt - Narrative (Details) - USD ($) $ in Thousands		1 Months Ended				12 Months Ended
Debt - Narrative (Details) - USD ($) $ in Thousands	Nov. 01, 2021	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Dec. 22, 2021	Mar. 15, 2021
Line of Credit Facility [Line Items]
Weighted average interest rate on debt		6.85%				6.85%
Debt issuance costs										$ 2,300
Proceeds from long-term debt						$ 350,000	$ 617	$ 119,018
Prior Credit Facility
Line of Credit Facility [Line Items]
Debt issuance costs	$ 400
Amortization of Debt Issuance Costs	1,900
November 1 2021 Credit Agreement
Line of Credit Facility [Line Items]
Debt issuance costs	11,700
December 22 2021 Credit Agreement
Line of Credit Facility [Line Items]
Debt issuance costs									$ 1,700
Secured Debt [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	350,000
Payment for Debt Extinguishment or Debt Prepayment Cost		$ 18,700	$ 20,000	$ 11,300	$ 50,000	$ 100,000
Secured Debt [Member] \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate						4.00%
Secured Debt [Member] \| Base Rate \| Federal Funds Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate						0.50%
Secured Debt [Member] \| Base Rate \| LIBOR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate						1.00%
Secured Debt [Member] \| LIBOR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate						5.00%
Secured Debt [Member] \| Minimum \| Base Rate
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Basis for Effective Rate						0.50
Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	35,000									$ 200,000
Revolving Credit Facility \| Minimum \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate						2.75%
Revolving Credit Facility \| Minimum \| LIBOR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate						3.75%
Revolving Credit Facility \| Maximum \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate						3.00%
Revolving Credit Facility \| Maximum \| LIBOR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate						4.00%
Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	10,000
Swingline Subfacility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 10,000

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Total loans	$ 250,000	$ 48,118
Less unamortized issuance costs	(12,029)	(2,319)
Long-term Debt, Current Maturities	(15,523)	0
Total long-term debt, net of current portion	$ 222,448	45,799
Weighted average interest rate on debt	6.85%
Revolving loan
Debt Instrument [Line Items]
Total loans	$ 0	48,118
Term loan
Debt Instrument [Line Items]
Total loans	$ 250,000	$ 0

Debt Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Debt Disclosure [Abstract]
2023	$ 17,500
2024	17,500
2025	17,500
2026	17,500
2027	17,500
2028	162,500
Total long-term debt	$ 250,000	$ 48,118

Product Warranty Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 707	$ 942	$ 1,012
Warranties issued	537	244	666
Settlements made	(358)	(479)	(736)
Ending balance	$ 886	$ 707	$ 942

Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Assets and Liabilities, Lessee [Abstract]
Operating lease right-of-use assets	$ 15,299	$ 15,684
Total lease assets	15,299	15,684
Current portion of operating lease liabilities	3,196	2,633
Operating lease liabilities	16,978	18,368
Total lease liabilities	$ 20,174	$ 21,001

Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Lease, Cost [Abstract]
Operating lease cost	$ 3,783	$ 3,504
Variable lease cost	1,094	1,094
Short-term lease cost	109	127
Total lease cost	$ 4,986	$ 4,725

Leases - Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash paid for leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 2,998	$ 2,707
Right Of Use Asset Obtained In Exchange for Lease Liability [Abstract]
Right-of-use assets obtained in exchange for new operating lease liabilities	2,615	3,785
Leasehold Improvements, Gross	$ 0	$ 1,000
Weighted average remaining lease term [Abstract]
Weighted average remaining lease term- operating leases	7 years 2 months 12 days
Weighted Average Discount Rate Leases [Abstract]
Weighted average discount rate - operating leases	2.86%

Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2023	$ 3,835
2024	3,449
2025	3,041
2026	2,817
2027	1,990
Thereafter	7,224
Total future undiscounted lease payments	22,356
Less imputed interest	(2,182)
Total reported lease liability	$ 20,174	$ 21,001

Restructuring (Details) $ in Thousands	3 Months Ended						12 Months Ended
Restructuring (Details) $ in Thousands	Jun. 30, 2022 USD ($) employee	Mar. 31, 2022 employee	Dec. 31, 2021 USD ($) employee	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			$ 0			$ 0	$ 0	$ 0
Restructuring charge							995	133
Payments for restructuring							(935)	(117)
Restructuring reversals							0	(16)
Restructuring foreign currency fluctuation							(60)	0
Restructuring reserve, ending balance							0	0
Employee Termination Costs \| 2020 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			0			0	0	0
Restructuring charge							0	133
Payments for restructuring							0	(117)
Restructuring reversals							0	(16)
Restructuring foreign currency fluctuation							0	0
Restructuring reserve, ending balance							0	0
Employee Termination Costs \| 2021 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			$ 0			0	0	0
Restructuring charge							995	0
Payments for restructuring							(935)	0
Restructuring reversals							0	0
Restructuring foreign currency fluctuation							(60)	0
Restructuring reserve, ending balance							$ 0	$ 0
IoT Products & Services \| 2020 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee		2
IoT Products & Services \| 2021 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee			19
IoT Products & Services \| Employee Termination Costs \| 2020 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge					$ 38
IoT Products & Services \| Employee Termination Costs \| 2021 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge				$ 100	$ 200	$ 700
IoT Solutions \| 2020 Restructuring
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| employee	22
IoT Solutions \| Employee Termination Costs \| 2020 Restructuring
Restructuring Reserve [Roll Forward]
Restructuring charge	$ 95

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenues	$ 388,225	$ 308,632	$ 279,271
North America, primarily United States
Disaggregation of Revenue [Line Items]
Total revenues	302,409	227,923	213,487
Europe, Middle East & Africa
Disaggregation of Revenue [Line Items]
Total revenues	53,612	46,024	40,076
Rest of world
Disaggregation of Revenue [Line Items]
Total revenues	32,204	34,685	25,708
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	302,535	274,960	253,371
Transferred over time
Disaggregation of Revenue [Line Items]
Total revenues	$ 85,690	$ 33,672	$ 25,900

- Definition

+ References

+ Details

Revenue - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Depreciation expense	$ 3,200	$ 1,900
Contract with Customer, Liability	21,600	15,500	$ 9,300
Ventus
Disaggregation of Revenue [Line Items]
Contract with Customer, Liability		2,100
Equipment
Disaggregation of Revenue [Line Items]
Contract assets	16,500	$ 1,900
Equipment \| Ventus
Disaggregation of Revenue [Line Items]
Contract assets	$ 14,700

Revenue - Unearned Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Unearned Revenue [Roll Forward]
Unearned revenue, beginning of period	$ 15,500	$ 9,300
Revenue recognized	13,200	7,500
Unearned revenue, end of period	$ 21,600	$ 15,500

Revenue - Performance Obligations (Details) $ in Millions	Sep. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 21.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 19.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 \| Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation time period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 \| Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation time period	5 years

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Valuation allowance	$ 2,976	$ 2,186
Tax Credit Carryforward [Line Items]
U.S. capital loss carryforward	$ 500
Latest Tax Year
Tax Credit Carryforward [Line Items]
Open Tax Year	2018
United States Federal Tax Jurisdiction
Tax Credit Carryforward [Line Items]
Federal and state research and development tax credits	$ 3,000
U.S. capital loss carryforward	200
Deferred Tax Assets, Other Tax Carryforwards	100
Foreign Tax Authority
Tax Credit Carryforward [Line Items]
Non-U.S. operating losses	$ 200

Income Taxes (Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
United States	$ 13,220	$ 5,380	$ 3,756
International	5,408	3,619	3,707
Income before income taxes	$ 18,628	$ 8,999	$ 7,463

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

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-Topic 940
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-Section 25
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-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-Section S99
-Paragraph 1
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-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-Section S99
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-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Current:
Federal	$ 281	$ 1,388	$ 709
State	766	242	572
Foreign	1,277	1,678	1,128
Deferred:
U.S.	(2,982)	(3,627)	(2,911)
State	0	(618)	0
Foreign	(97)	(430)	(446)
Income tax (benefit) expense	$ (755)	$ (1,367)	$ (948)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Gross, Noncurrent	$ 0	$ 439
Non-current deferred tax liability	(9,666)	(13,493)
Net deferred tax liability	(9,666)	(13,054)
Depreciation and amortization	(4,930)	(1,399)
Lease asset	(3,392)	(3,683)
Lease liability	4,497	4,941
Inventories	2,586	755
Compensation costs	3,999	4,064
Other accruals	7,413	6,387
Tax credit carryforwards	7,445	3,026
Valuation allowance	(2,976)	(2,186)
Identifiable intangible assets	$ (24,308)	$ (24,959)

Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Statutory income tax amount	$ 3,912	$ 1,890	$ 1,567
State taxes, net of federal benefits	85	319	392
Transaction costs	2	60	143
Employee stock purchase plan	98	79	127
Foreign operations	1,552	556	431
Non-deductible executive compensation	291	150	115
Change in valuation allowance	0	(2,187)	173
Utilization of research and development tax credits	(2,780)	(3,116)	(2,881)
Deferred balance sheet remeasure	0	(952)	0
ASU 2016-09 excess stock compensation	(2,967)	(1,131)	(673)
Contingent consideration	(1,239)	1,212	(27)
Changes from provision to return	413	(458)	(111)
Adjustment of tax contingency reserves	417	329	151
U.S. deduction for foreign export sales	(584)	(630)	(355)
Global intangible low-taxed income	0	33	31
Other, net	45	178	(31)
Income tax (benefit) expense	(755)	(1,367)	(948)
Effective Income Tax Rate Reconciliation, Capital Loss Expiration	$ 0	$ 2,301	$ 0

Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 2,908	$ 2,600	$ 1,713
Increases related to prior year income tax positions	0	40	756
Increases related to current year income tax positions	524	507	425
Decreases related to prior year income tax positions	(21)	(155)	0
Decreases related to settlements	0	0	(7)
Decreases related to expiration of statute of limitations	(95)	(84)	(287)
Unrecognized tax benefits, ending balance	$ 3,316	$ 2,908	$ 2,600

Income Taxes (Unrecognized Tax Benefits, Additional Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Income Tax Contingency [Line Items]
Unrecognized tax benefits that would impact effective tax rate	$ 3,300
Unrecognized tax benefits	3,316	$ 2,908	$ 2,600	$ 1,713
Unrecognized Tax Benefits, Interest on Income Taxes Expense	100	100
Unrecognized Tax Benefits, Income Tax Penalties Accrued	0	$ 0
Noncurrent income taxes payable
Income Tax Contingency [Line Items]
Unrecognized tax benefits	2,400
Noncurrent deferred tax assets
Income Tax Contingency [Line Items]
Unrecognized tax benefits	900
Maximum
Income Tax Contingency [Line Items]
Decrease in unrecognized tax benefits that is reasonably possible	$ 300

Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Equity [Abstract]
Shares Issued, Price Per Share		$ 19.50
Proceeds from Issuance of Common Stock	$ 0	$ 73,830	$ 0
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs		$ 300
Stock Issued During Period, Shares, New Issues	4,025

Stock-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Jan. 29, 2021	Jan. 29, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	102,392	116,195	103,492
Proceeds from employee stock purchase plan transactions	$ 1,500	$ 1,214	$ 1,065
Total intrinsic value of all options exercised	20,300	6,500	3,700
Total grant date fair value of shares vested	3,000	2,600	3,700
Proceeds from Stock Options Exercised	9,505	8,525	5,902
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	4,300
Total unrecognized compensation cost nonvested awards	$ 7,100
Weighted average period, unrecognized compensation cost, nonvested awards	1 year 9 months 18 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 2,400	2,100	1,800
Weighted average period, unrecognized compensation cost, nonvested awards	2 years 1 month 6 days
Total unrecognized compensation cost, restricted stock units	$ 10,700
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of continuous days of service	90 days
Number of hours per week employed	20 hours
Percent of market value	85.00%
Proceeds from employee stock purchase plan transactions	$ 1,500	$ 1,200	$ 1,100
Common shares issued to employees	80,225	78,644	117,826
Shares available for future issuance	552,848
The 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future grants	1,793,203
Number of shares authorized					1,400,000
The 2020 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	7 years
Vesting period	4 years
The Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized					3,425,000
The 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized				2,400,000
The 2021 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	7 years
Vesting period	4 years
Director \| The 2020 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Director \| The 2021 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	1 year
Vesting period	4 years
Director \| The 2021 Plan \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Executives and Employees \| The 2020 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Executives and Employees \| The 2021 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 8,578	$ 8,135	$ 7,237
Income tax benefit	(1,819)	(1,755)	(1,523)
Stock-based compensation after income taxes	6,759	6,380	5,714
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	466	371	291
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	2,503	2,069	2,318
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	1,236	1,032	1,197
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 4,373	$ 4,663	$ 3,431

Stock-Based Compensation (Options and Common Shares Reserved for Grant) (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance \| shares	2,952
Options Outstanding, Granted \| shares	575
Options Outstanding, Exercised \| shares	(1,532)
Options Outstanding, Forfeited / Cancelled \| shares	(205)
Options Outstanding, Ending Balance \| shares	1,790
Options Outstanding, Exercisable \| shares	846,530
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance	$ 13.20
Weighted Average Exercise Price, Granted	22.52
Weighted Average Exercise Price, Exercised	14.75
Weighted Average Exercise Price, Forfeited / Cancelled	17.86
Weighted Average Exercise Price, Ending Balance	17.29
Weighted Average Exercise Price, Exercisable	$ 14.26
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term, Outstanding	4 years 8 months 12 days
Weighted Average Remaining Contractual Term, Exercisable	3 years 7 months 6 days
Aggregate Intrinsic Value, Outstanding \| $	$ 29,095
Aggregate Intrinsic Value, Exercisable \| $	$ 16,325
Closing Stock Price	$ 33.54

Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 10.37	$ 6.97	$ 6.17
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	1.25%	0.51%	0.37%
Risk free interest rate, maximum	3.00%	1.035%	1.73%
Expected term	6 years	6 years	6 years
Expected volatility rate, minimum	45.00%	44.00%	36.00%
Expected volatility rate, maximum	46.00%	46.00%	44.00%
Weighted average volatility	46.00%	45.00%	36.00%
Expected dividend yield	0.00%	0.00%	0.00%

Stock-Based Compensation (Exercise Price Range) (Details) - Stock Options shares in Thousands	12 Months Ended
	Sep. 30, 2022 $ / shares shares
$7.40 - $9.03
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	$ 7.40
Exercise Price Range, Upper Range	$ 11.87
Options Outstanding \| shares	385
Weighted Average Remaining Contractual Term	2 years 11 months 8 days
Weighted Average Exercise Price, Options Outstanding	$ 11.11
Number of Shares Vested, Options Exercisable \| shares	355
Weighted Average Exercise Price, Options Exercisable	$ 11.10
$9.04 - $10.33
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	12.48
Exercise Price Range, Upper Range	$ 16.75
Options Outstanding \| shares	386
Weighted Average Remaining Contractual Term	4 years 3 months 29 days
Weighted Average Exercise Price, Options Outstanding	$ 15.19
Number of Shares Vested, Options Exercisable \| shares	234
Weighted Average Exercise Price, Options Exercisable	$ 14.79
$10.35 - $11.23
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	17.10
Exercise Price Range, Upper Range	$ 17.94
Options Outstanding \| shares	425
Weighted Average Remaining Contractual Term	4 years 5 months 26 days
Weighted Average Exercise Price, Options Outstanding	$ 17.61
Number of Shares Vested, Options Exercisable \| shares	235
Weighted Average Exercise Price, Options Exercisable	$ 17.69
$11.24 - $12.63
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	18.20
Exercise Price Range, Upper Range	$ 21.53
Options Outstanding \| shares	321
Weighted Average Remaining Contractual Term	6 years 2 months 1 day
Weighted Average Exercise Price, Options Outstanding	$ 20.78
Number of Shares Vested, Options Exercisable \| shares	11
Weighted Average Exercise Price, Options Exercisable	$ 19.95
$12.64 - $13.92
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	23.46
Exercise Price Range, Upper Range	$ 24.18
Options Outstanding \| shares	227
Weighted Average Remaining Contractual Term	6 years 1 month 24 days
Weighted Average Exercise Price, Options Outstanding	$ 23.60
Number of Shares Vested, Options Exercisable \| shares	0
Weighted Average Exercise Price, Options Exercisable	$ 0
$13.93 - $17.94
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	25.15
Exercise Price Range, Upper Range	$ 25.15
Options Outstanding \| shares	30
Weighted Average Remaining Contractual Term	5 years 3 months 7 days
Weighted Average Exercise Price, Options Outstanding	$ 25.15
Number of Shares Vested, Options Exercisable \| shares	12
Weighted Average Exercise Price, Options Exercisable	$ 25.15
$17.95 - $18.20
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	33.53
Exercise Price Range, Upper Range	$ 33.53
Options Outstanding \| shares	16
Weighted Average Remaining Contractual Term	6 years 10 months 6 days
Weighted Average Exercise Price, Options Outstanding	$ 33.53
Number of Shares Vested, Options Exercisable \| shares	0
Weighted Average Exercise Price, Options Exercisable	$ 0
$7.40 - $18.20
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	7.40
Exercise Price Range, Upper Range	$ 33.53
Options Outstanding \| shares	1,790
Weighted Average Remaining Contractual Term	4 years 8 months 1 day
Weighted Average Exercise Price, Options Outstanding	$ 17.29
Number of Shares Vested, Options Exercisable \| shares	847
Weighted Average Exercise Price, Options Exercisable	$ 14.26

Stock-Based Compensation (Non-Vested Options) (Details) shares in Thousands	12 Months Ended
	Sep. 30, 2022 $ / shares shares
Restricted Stock Units
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	812
Number of Restricted Stock Units, Granted \| shares	394
Number of Restricted Stock Units, Vested \| shares	(308)
Number of Restricted Stock Units, Canceled \| shares	(156)
Number of Restricted Stock Units, Ending Balance \| shares	742
Nonvested Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share [Roll Forward]
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Beginning Balance \| $ / shares	$ 15.72
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	22.72
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	15.55
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	17.46
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 19.14
Performance Shares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	18
Number of Restricted Stock Units, Granted \| shares	12
Number of Restricted Stock Units, Vested \| shares	(3)
Number of Restricted Stock Units, Canceled \| shares	0
Number of Restricted Stock Units, Ending Balance \| shares	27
Nonvested Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share [Roll Forward]
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Beginning Balance \| $ / shares	$ 25.15
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	19.78
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	25.15
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	0
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 22.69

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Defined Contribution Plan Disclosure [Line Items]
Matching contributions, amount	$ 3.1	$ 2.4	$ 1.7
Defined contribution plan
Defined Contribution Plan Disclosure [Line Items]
Maximum annual contribution per employee percentage	25.00%
Defined contribution plan \| Full Employer Match
Defined Contribution Plan Disclosure [Line Items]
Employers percent of matching contributions	100.00%
Percent of employees' gross pay for employer match	3.00%
Defined contribution plan \| Half Employer Match
Defined Contribution Plan Disclosure [Line Items]
Employers percent of matching contributions	50.00%
Percent of employees' gross pay for employer match	2.00%

Contingencies Contingencies (Details) - DimOnOff Inc. $ in Thousands	12 Months Ended
	Sep. 30, 2021 USD ($)
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought	1.0 million
Loss Contingency, Damages Paid, Value	$ 0

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Valuation allowance - deferred tax assets
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 2,186	$ 4,372	$ 3,810
Charged to costs and expenses	790	(2,186)	670
Charged to Other Accounts	0	0	0
Deductions	0	0	108
Balance at end of period	2,976	2,186	4,372
Reserve for future credit returns and pricing adjustments
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	930	1,476	2,677
Charged to costs and expenses	17,087	15,477	17,816
Charged to Other Accounts	0	0	0
Deductions	16,886	16,023	19,017
Balance at end of period	$ 1,131	$ 930	$ 1,476