0000854775-24-000004 | 10-Q | XBRL Viewer

IoT Products & Services Segment

$ 828,662

$ 835,531

Segment Reporting, Asset Reconciling Item [Line Items]

Segment Reporting, Asset Reconciling Item [Line Items]

382,874

384,018

IoT Solutions Segment

Segment Reporting, Asset Reconciling Item [Line Items]

414,240

419,820

Unallocated

^[1]

$ 31,548

$ 31,693

[1]	Unallocated consists of cash and cash equivalents.

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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Segment Reporting Information [Line Items]

Segment Information Expended for Property, Plant and Equipment (Details) - USD ($)
$ in Thousands

3 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Inventory Transfer To Property, Plant And Equipment

$ 1,105

$ 1,512

Property, Plant and Equipment, Additions

219

963

IoT Products & Services Segment

Segment Reporting Information [Line Items]

Property, Plant and Equipment, Additions

637

IoT Solutions Segment

Segment Reporting Information [Line Items]

Property, Plant and Equipment, Additions

^[1]

$ 182

$ 326

[1]	* Excluded from these amounts are $1,105 and $1,512 of transfers of inventory to property plant and equipment for subscriber assets for the three months ended December 31, 2023 and 2022, respectively.

Segment Information

3 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

We have two reportable segments: IoT Products & Services and IoT Solutions. IoT Products & Services is structured to include four operating segments, each with a segment manager. These four operating segments are Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. IoT Products & Services derives revenue from the sale of connectivity products and solutions. These products and solutions include enclosed router devices in Cellular Routers, enclosed devices for edge computing and data center applications in Console Servers, chip modules in OEM Solutions and sensors in Infrastructure Management, as well as our cloud based remote manager application and extended support and monitoring of devices sold. IoT Solutions is comprised of two operating segments. These operating segments are SmartSense and Ventus. IoT Solutions derives revenue from the sale of monitoring and networking service solutions. These solutions include wireless condition-based monitoring services in SmartSense and Managed Network-as-a-Service ("MNaaS") in Ventus.

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 CEO is our Chief Operating Decision Maker and reviews and makes business decisions using consolidated information such as operating income and gross profit.

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


	Three months ended December 31,
	2023		2022
Revenue
IoT Products & Services	$	82,023	$	84,342
IoT Solutions	24,066		24,964
Total revenue	$	106,089	$	109,306
Gross Profit
IoT Products & Services	$	43,859	$	46,021
IoT Solutions	17,241		15,500
Total gross profit	$	61,100	$	61,521
Operating Income (Loss)
IoT Products & Services	$	10,341	$	12,683
IoT Solutions	1,792		(720)
Total operating income	$	12,133	$	11,963
Depreciation and Amortization
IoT Products & Services	$	3,098	$	3,292
IoT Solutions	4,953		4,820
Total depreciation and amortization	$	8,051	$	8,112

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


	Three months ended December 31,
	2023		2022
IoT Products & Services	$	37	$	637
IoT Solutions*	182		326
Total expended for property, plant and equipment	$	219	$	963

* Excluded from these amounts are $1,105 and $1,512 of transfers of inventory to property plant and equipment for subscriber assets for the three months ended December 31, 2023 and 2022, respectively.

6. SEGMENT INFORMATION (CONTINUED)

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


	December 31, 2023		September 30, 2023
IoT Products & Services	$	382,874	$	384,018
IoT Solutions	414,240		419,820
Unallocated*	31,548		31,693
Total assets	$	828,662	$	835,531

*Unallocated consists of cash and cash equivalents.

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.

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Product Warranties Disclosures [Abstract]

Product Warranty Obligation

3 Months Ended

Dec. 31, 2023

PRODUCT WARRANTY OBLIGATION

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


	Three months ended December 31,
	2023		2022
Balance at beginning of period	$	772	$	886
Warranties accrued	94		90
Settlement made	(85)		(54)
Balance at end of period	$	781	$	922

Selected Balance Sheet Data

3 Months Ended

Dec. 31, 2023

Selected Balance Sheet Data [Abstract]

SELECTED BALANCE SHEET DATA

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


	December 31, 2023		September 30, 2023
Accounts receivable, net:
Accounts receivable	$	66,873	$	61,880
Less allowance for credit losses	1,407		1,693
Less reserve for future credit returns and pricing adjustments	4,025		4,190
Accounts receivable, net	$	61,441	$	55,997
Inventories:
Raw materials	$	28,649	$	29,974
Work in process	130		66
Finished goods	38,811		44,356
Inventories	$	67,590	$	74,396

Selected Balance Sheet Data (Tables)

3 Months Ended

Dec. 31, 2023

Selected Balance Sheet Data [Abstract]

Schedule of Selected Balance Sheet Data

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


	December 31, 2023		September 30, 2023
Accounts receivable, net:
Accounts receivable	$	66,873	$	61,880
Less allowance for credit losses	1,407		1,693
Less reserve for future credit returns and pricing adjustments	4,025		4,190
Accounts receivable, net	$	61,441	$	55,997
Inventories:
Raw materials	$	28,649	$	29,974
Work in process	130		66
Finished goods	38,811		44,356
Inventories	$	67,590	$	74,396

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 3,106	$ 2,868
Income tax benefit	(663)	(599)
Stock-based compensation after income taxes	2,443	2,269
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	181	142
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	1,168	851
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	430	448
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 1,327	$ 1,427

Indebtedness - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 07, 2023	Sep. 30, 2023	Dec. 22, 2021
Debt Instrument [Line Items]
Total loans	$ 196,000		$ 213,625
Less unamortized issuance costs	(1,316)		(10,051)
Less current maturities of long-term debt	0		(15,523)
Total long-term debt, net of current portion	194,684		188,051
Revolving loan maximum borrowing capacity				$ 215,000
December 7, 2023 Credit Agreement
Debt Instrument [Line Items]
Debt issuance costs		$ 1,300
Prior Credit Facility
Debt Instrument [Line Items]
Debt issuance costs		9,700
Revolving loan
Debt Instrument [Line Items]
Total loans	196,000
Revolving loan maximum borrowing capacity		$ 250,000		35,000
Term loan
Debt Instrument [Line Items]
Total loans	$ 0		$ 213,625
Revolving loan maximum borrowing capacity				$ 350,000

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2023	Sep. 30, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (USD 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 value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	42,748,931	42,501,150
Treasury Stock, Common, Shares	6,500,331	6,436,204

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Numerator:
Net income	$ (3,054)	$ 5,779
Denominator:
Denominator for basic net income per common share — weighted average shares outstanding	36,129,000	35,608,000
Effect of dilutive securities:
Stock options and restricted stock units	0	1,251,000
Denominator for diluted net income per common share — adjusted weighted average shares	36,129,000	36,859,000
Basic net (loss) income per common share:
Earnings Per Share, Basic	$ (0.08)	$ 0.16
Diluted net (loss) income per common share
Diluted (USD per share)	$ (0.08)	$ 0.16
Potentially dilutive securities excluded from computation of earnings per share	1,563,857	234,365

Segment Information (Details) $ in Thousands	3 Months Ended
Segment Information (Details) $ in Thousands	Dec. 31, 2023 USD ($) segment numberOfOperatingSegments	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments \| segment	2
Total Revenue	$ 106,089	$ 109,306
Gross Profit	61,100	61,521
Operating income (loss)	12,133	11,963
Depreciation and amortization	$ 8,051	8,112
IoT Products & Services Segment
Segment Reporting Information [Line Items]
Number of Operating Segments \| numberOfOperatingSegments	4
Total Revenue	$ 82,023	84,342
Gross Profit	43,859	46,021
Operating income (loss)	10,341	12,683
Depreciation and amortization	$ 3,098	3,292
IoT Solutions Segment
Segment Reporting Information [Line Items]
Number of Operating Segments \| numberOfOperatingSegments	2
Total Revenue	$ 24,066	24,964
Gross Profit	17,241	15,500
Operating income (loss)	1,792	(720)
Depreciation and amortization	$ 4,953	$ 4,820

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

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).

Revenue from Contract with Customer [Abstract]

Income Taxes (Unrecognized Tax Benefits) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2023 USD ($)
Unrecognized tax benefits that would impact effective tax rate	$ 3,000
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	3,162
Decreases related to expiration of statute of limitations	(32)
Unrecognized tax benefits, ending balance	3,130
Maximum
Unrecognized tax benefits that would decrease next twelve months	$ 400

Basis of Presentation of Unaudited Interim Condensed Consolidated Financial Statements and Significant Accounting Policies	3 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANTACCOUNTING POLICIES	BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited condensed consolidated financial statements of Digi International Inc. ("we", "us", "our", "Digi" or "the Company") have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission applicable to interim financial statements. While these financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. These financial statements should be read in conjunction with the financial statement disclosures in Part I, Item 1 of our Annual Report on Form 10-K for the year ended September 30, 2023 (the "2023 Financial Statements"). We use the same accounting policies in preparing quarterly and annual financial statements. The quarterly results of operations are not necessarily indicative of the results to be expected for the full year.

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Jan. 29, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Stock Options Exercised	$ 225	$ 872
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	87,792	71,951
Tax withholding for share-based compensation	$ 2,100	$ 3,000
Total intrinsic value of all options exercised	400	1,700
Proceeds from employee stock purchase plan transactions	531	594
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Stock Options Exercised	200	$ 900
Total unrecognized compensation cost nonvested awards	$ 4,100
Weighted average period, unrecognized compensation cost, nonvested awards	1 year 6 months
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested restricted stock units	$ 24,200
Weighted average period, unrecognized compensation cost, nonvested awards	2 years 7 months 6 days
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost nonvested restricted stock units	$ 1,400
Weighted average period, unrecognized compensation cost, nonvested awards	9 months 18 days
The Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized			3,425,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Continuous Days of Service	90 days
Share-based Compensation Arrangement by Share-based Payment Award, Number of Hours Per Week Employed	20 hours
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Common shares issued to employees	23,665	19,683
Shares available for future issuance	446,562
Proceeds from employee stock purchase plan transactions	$ 500	$ 600
The 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future grants	1,881,637

Contingencies	3 Months Ended
Contingencies	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES We lease certain of our buildings and equipment under non-cancelable lease agreements. Please refer to Note 10 to our condensed consolidated financial statements for additional information. Data Logger Solutions, LLC ("Data Loggers") brought suit in Delaware Superior Court against us and our subsidiary Digi SmartSense, LLC in October, 2020. The suit alleges that Data Loggers has not been paid certain commissions it believes it is owed and will continue to be owed under a Reseller Agreement entered between Data Loggers and TempAlert. SmartSense is the successor of interest of TempAlert and terminated the Reseller Agreement in 2019. Data Loggers claims it is entitled to actual, speculative and punitive damages in connection with its allegations. A trial is scheduled to commence in February 2024. We intend to defend the matter vigorously; however, there can be no assurance that we will be successful in such defense. We are unable to estimate the total costs to defend the matter or the potential liability to us in the event that we are not successful in our defense. In addition to the matters 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.

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 31,548	$ 31,693
Accounts receivable, net	61,441	55,997
Inventories	67,590	74,396
Other current assets	4,799	4,112
Total current assets	165,378	166,198
Property, equipment and improvements, net	28,644	29,108
Intangible assets, net	270,921	277,084
Goodwill	342,424	341,593
Operating lease right-of-use assets	12,187	12,876
Deferred tax assets	5,192	4,884
Other non-current assets	3,916	3,788
Assets	828,662	835,531
Current liabilities:
Current portion of long-term debt	0	15,523
Accounts payable	16,679	17,148
Accrued compensation	9,382	16,427
Unearned revenue	31,235	25,274
Current portion of operating lease liabilities	3,216	3,352
Taxes Payable	1,179	1,116
Other current liabilities	8,754	7,138
Total current liabilities	70,445	85,978
Income taxes payable	2,304	2,308
Deferred tax liabilities	1,817	1,812
Long-term debt	194,684	188,051
Operating lease liabilities	13,333	13,989
Other non-current liabilities	4,004	2,905
Total liabilities	286,587	295,043
Commitments and Contingencies (see Note 13)
Preferred Stock, Shares Outstanding	0	0
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; 42,748,931 and 42,501,150 shares issued	427	425
Additional paid-in capital	407,330	403,735
Retained earnings	221,791	224,845
Accumulated other comprehensive loss	(24,063)	(27,011)
Treasury stock, at cost, 6,500,331 and 6,436,204 shares	(63,410)	(61,506)
Total stockholders' equity	542,075	540,488
Total liabilities and stockholders' equity	$ 828,662	$ 835,531

Goodwill and Other Identifiable Intangible Assets, Net (Additional Information) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2023 USD ($) segment	Sep. 30, 2023 USD ($)
Goodwill [Line Items]
Number of Reportable Segments \| segment	2
Goodwill	$ 342,424	$ 341,593
Enterprise Routers
Goodwill [Line Items]
Goodwill	32,700
Console Servers
Goodwill [Line Items]
Goodwill	57,100
OEM Solutions
Goodwill [Line Items]
Goodwill	64,600
Infrastructure Mgmt.
Goodwill [Line Items]
Goodwill	20,400
SmartSense
Goodwill [Line Items]
Goodwill	48,900
Ventus
Goodwill [Line Items]
Goodwill	118,600
IoT Products & Services Segment
Goodwill [Line Items]
Goodwill	174,524	173,957
IoT Solutions Segment
Goodwill [Line Items]
Goodwill	$ 167,900	$ 167,636

Revenue

3 Months Ended

Dec. 31, 2023

REVENUE

Revenue Disaggregation

The following table summarizes our revenue by geographic location of our customers (in thousands):


	Three months ended December 31,
	2023		2022
North America, primarily the United States	$	79,695	$	83,465
Europe, Middle East & Africa	14,390		15,877
Rest of world	12,004		9,964
Total revenue	$	106,089	$	109,306

The following table summarizes our revenue by the timing of revenue recognition (in thousands):


	Three months ended December 31,
	2023		2022
Transferred at a point in time	$	79,394	$	85,486
Transferred over time	26,695		23,820
Total revenue	$	106,089	$	109,306

Contract Balances

Contract Related Assets

Our contract related assets consist of subscriber assets. Subscriber assets are equipment that we provide to customers pursuant to subscription-based contracts. In these cases, we retain the ownership of the equipment a customer uses and charge the customer subscription fees to receive our end-to-end solutions. The total net book value of subscriber assets of $16.7 million and $16.6 million as of December 31, 2023 and September 30, 2023, respectively, are included in property, equipment and improvements, net. Depreciation expense for these subscriber assets, which is included in cost of sales, was $1.0 million and $0.9 million for the three months ended December 31, 2023 and 2022, respectively. We depreciate the cost of this equipment over its useful life.

Contract Assets

Contract assets at Digi consist of products and services that have been fulfilled, but for which revenue has not yet been recognized. Our contract asset balances were immaterial as of December 31, 2023 and September 30, 2023.

Contract Liabilities

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. 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.

7. REVENUE (CONTINUED)

Our contract liabilities were $35.0 million and $23.0 million at December 31, 2023 and 2022, respectively.

There were contract liability balances of $27.9 million and $21.6 million balances as of September 30, 2023 and 2022. Of these balances, Digi recognized $7.4 million and $6.1 million as revenue in the three months ended December 31, 2023 and 2022, respectively.

Remaining Performance Obligation

As of December 31, 2023, we had approximately $156.9 million of remaining performance obligations on contracts with an original duration of one year or more. We expect to recognize revenue on approximately $67.5 million of remaining performance obligations over the next 12 months. We expect to recognize revenue from the remaining performance obligations over a range of two to five years.

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//606/tableOfContent

Supplemental Balance Sheet Information

Leases

3 Months Ended

Dec. 31, 2023

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 12 months, the related lease assets and lease liabilities are recognized on the condensed 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 expected term of 12 months or less are not recorded on the condensed 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 assets, 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	December 31, 2023		September 30, 2023
Assets
Operating leases	Operating lease right-of-use assets	$	12,187	$	12,876
Total lease assets		$	12,187	$	12,876

Liabilities

Operating leases	Current portion of operating lease liabilities	$	3,216	$	3,352

Operating leases	Operating lease liabilities	13,333		13,989
Total lease liabilities		$	16,549	$	17,341

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):


	Three months ended December 31,
	2023		2022
Operating lease cost	$	891	$	904
Variable lease cost	317		309
Short-term lease cost	27		25
Total lease cost	$	1,235	$	1,238

At December 31, 2023, the weighted average remaining lease term of our operating leases was 6.3 years and the weighted average discount rate for these leases was 4.5%.

10. LEASES (CONTINUED)

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 condensed consolidated balance sheet as of December 31, 2023 (in thousands):


Fiscal year	Amount
2024 (nine months)	$	3,197
2025	3,529
2026	3,139
2027	2,043
2028	1,897
2029	1,840
Thereafter	3,865
Total future undiscounted lease payments	19,510
Less imputed interest	(2,961)
Total reported lease liability	$	16,549

Leases (Tables)

3 Months Ended

Dec. 31, 2023

Leases [Abstract]

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


	Balance Sheet Location	December 31, 2023		September 30, 2023
Assets
Operating leases	Operating lease right-of-use assets	$	12,187	$	12,876
Total lease assets		$	12,187	$	12,876

Liabilities

Operating leases	Current portion of operating lease liabilities	$	3,216	$	3,352

Operating leases	Operating lease liabilities	13,333		13,989
Total lease liabilities		$	16,549	$	17,341

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):


	Three months ended December 31,
	2023		2022
Operating lease cost	$	891	$	904
Variable lease cost	317		309
Short-term lease cost	27		25
Total lease cost	$	1,235	$	1,238

Operating Lease Liability Maturity


Fiscal year	Amount
2024 (nine months)	$	3,197
2025	3,529
2026	3,139
2027	2,043
2028	1,897
2029	1,840
Thereafter	3,865
Total future undiscounted lease payments	19,510
Less imputed interest	(2,961)
Total reported lease liability	$	16,549

Debt (Tables)

3 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Schedule of Debt

The following table is a summary of our long-term indebtedness at December 31, 2023 and September 30, 2023 (in thousands):


	Balance on December 31, 2023		Balance on September 30, 2023
Revolving loan	$	196,000	$	—
Term loan	—		213,625
Total loans	196,000		213,625
Less unamortized issuance costs	(1,316)		(10,051)
Less current maturities of long-term debt	—		(15,523)
Total long-term debt, net of current portion	$	194,684	$	188,051

Leases - Other Information (Details)	Dec. 31, 2023
Weighted average remaining lease term [Abstract]
Weighted average remaining lease term- operating leases	6 years 3 months 18 days
Weighted Average Discount Rate Leases [Abstract]
Weighted average discount rate - operating leases	4.50%

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Unearned Revenue (Details)
Total Revenue	$ 106,089	$ 109,306
North America, primarily the United States
Unearned Revenue (Details)
Total Revenue	79,695	83,465
Europe, Middle East & Africa
Unearned Revenue (Details)
Total Revenue	14,390	15,877
Rest of world
Unearned Revenue (Details)
Total Revenue	12,004	9,964
Transferred at a point in time
Unearned Revenue (Details)
Total Revenue	79,394	85,486
Transferred over time
Unearned Revenue (Details)
Total Revenue	$ 26,695	$ 23,820

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

Goodwill and Other Identifiable Intangible Assets, Net (Goodwill Rollforward) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2023 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 341,593
Foreign currency translation adjustment	831
Ending balance	342,424
IoT Products & Services Segment
Goodwill [Roll Forward]
Beginning balance	173,957
Foreign currency translation adjustment	567
Ending balance	174,524
IoT Solutions Segment
Goodwill [Roll Forward]
Beginning balance	167,636
Foreign currency translation adjustment	264
Ending balance	$ 167,900

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

Schedule of Segment Reporting Information, by Segment

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Lease, Cost [Abstract]
Operating lease cost	$ 891	$ 904
Variable lease cost	317	309
Short-term Lease, Cost	27	25
Total lease cost	$ 1,235	$ 1,238

Segment Information (Tables)

3 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

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


	Three months ended December 31,
	2023		2022
Revenue
IoT Products & Services	$	82,023	$	84,342
IoT Solutions	24,066		24,964
Total revenue	$	106,089	$	109,306
Gross Profit
IoT Products & Services	$	43,859	$	46,021
IoT Solutions	17,241		15,500
Total gross profit	$	61,100	$	61,521
Operating Income (Loss)
IoT Products & Services	$	10,341	$	12,683
IoT Solutions	1,792		(720)
Total operating income	$	12,133	$	11,963
Depreciation and Amortization
IoT Products & Services	$	3,098	$	3,292
IoT Solutions	4,953		4,820
Total depreciation and amortization	$	8,051	$	8,112

Payments to Acquire Property, Plant and Equipment by Segment

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


	Three months ended December 31,
	2023		2022
IoT Products & Services	$	37	$	637
IoT Solutions*	182		326
Total expended for property, plant and equipment	$	219	$	963

Reconciliation of Assets from Segment to Consolidated

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


	December 31, 2023		September 30, 2023
IoT Products & Services	$	382,874	$	384,018
IoT Solutions	414,240		419,820
Unallocated*	31,548		31,693
Total assets	$	828,662	$	835,531

*Unallocated consists of cash and cash equivalents.

Product Warranty Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 772	$ 886
Warranties accrued	94	90
Settlements made	(85)	(54)
Ending balance	$ 781	$ 922

Product Warranty Obligation (Tables)

3 Months Ended

Dec. 31, 2023

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Accrual

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


	Three months ended December 31,
	2023		2022
Balance at beginning of period	$	772	$	886
Warranties accrued	94		90
Settlement made	(85)		(54)
Balance at end of period	$	781	$	922

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Accounts receivable, net:
Accounts receivable	$ 66,873	$ 61,880
Less allowance for credit losses	1,407	1,693
Less reserve for future credit returns and pricing adjustments	4,025	4,190
Accounts receivable, net	61,441	55,997
Inventories:
Raw materials	28,649	29,974
Work in process	130	66
Finished goods	38,811	44,356
Inventories	$ 67,590	$ 74,396

Revenue (Tables)

3 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes our revenue by geographic location of our customers (in thousands):


	Three months ended December 31,
	2023		2022
North America, primarily the United States	$	79,695	$	83,465
Europe, Middle East & Africa	14,390		15,877
Rest of world	12,004		9,964
Total revenue	$	106,089	$	109,306

The following table summarizes our revenue by the timing of revenue recognition (in thousands):


	Three months ended December 31,
	2023		2022
Transferred at a point in time	$	79,394	$	85,486
Transferred over time	26,695		23,820
Total revenue	$	106,089	$	109,306

Earnings (Loss) Per Share (Tables)

3 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

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):


	Three months ended December 31,
	2023		2022
Numerator:


Net (loss) income	$	(3,054)	$	5,779

Denominator:
Denominator for basic net income per common share — weighted average shares outstanding	36,129		35,608
Effect of dilutive securities:
Stock options and restricted stock units	—		1,251
Denominator for diluted net income per common share — adjusted weighted average shares	36,129		36,859




Net (loss) income per common share, basic	$	(0.08)	$	0.16



Net (loss) income per common share, diluted	$	(0.08)	$	0.16

Goodwill and Other Identifiable Intangible Assets, Net (Tables)

3 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Amortizable Intangible Assets

Amortizable intangible assets were (in thousands):


	December 31, 2023						September 30, 2023
	Gross carrying amount		Accum. amort.		Net		Gross carrying amount		Accum. amort.		Net
Purchased and core technology	$	85,080	$	(60,833)	$	24,247	$	85,032	$	(59,833)	$	25,199
License agreements	112		(112)		—		112		(112)		—
Patents and trademarks	40,035		(20,421)		19,614		39,957		(19,888)		20,069

Customer relationships	309,241		(82,181)		227,060		309,196		(77,380)		231,816
Non-compete agreements	600		(600)		—		600		(600)		—
Order backlog	1,000		(1,000)		—		1,000		(1,000)		—
Total	$	436,068	$	(165,147)	$	270,921	$	435,897	$	(158,813)	$	277,084

Schedule of Estimated Future Amortization Expense Related to Intangible Assets

Estimated amortization expense related to intangible assets for the remainder of fiscal 2024 and the five succeeding fiscal years is (in thousands):


2024 (nine months)	$	19,058
2025	21,781
2026	21,549
2027	20,593
2028	20,411
2029	18,355

Schedule of Changes in Carrying Amount of Goodwill

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


	Three months ended December 31, 2023
	IoT Products & Services		IoT Solutions		Total
Balance on September 30, 2023	$	173,957	$	167,636	$	341,593


Foreign currency translation adjustment	567		264		831
Balance on December 31, 2023	$	174,524	$	167,900	$	342,424

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating activities:
Net income	$ (3,054)	$ 5,779
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, equipment and improvements	1,813	1,649
Amortization of intangible assets	6,591	6,957
Write-off of debt issuance costs	9,722	0
Stock-based compensation	3,106	2,868
Deferred income tax provision	(303)	905
Other	349	(29)
Changes in operating assets and liabilities (net of acquisitions)	448	(15,449)
Net cash provided by operating activities	18,672	2,680
Investing activities:
Purchase of property, equipment, improvements and certain other intangible assets	(292)	(963)
Net cash used in investing activities	(292)	(963)
Financing activities:
Proceeds from long-term debt	214,062	0
Payments on long-term debt	(233,025)	(4,375)
Proceeds from stock option plan transactions	225	872
Proceeds from employee stock purchase plan transactions	531	594
Taxes paid for net share settlement of share-based payment options and awards	(2,169)	(2,987)
Net cash provided by financing activities	(20,376)	(5,896)
Effect of exchange rate changes on cash and cash equivalents	1,851	228
Net (decrease) increase in cash and cash equivalents	(145)	(3,951)
Cash and cash equivalents, beginning of period	31,693	34,900
Cash and cash equivalents, end of period	31,548	30,949
Supplemental schedule of non-cash investing and financing activities
Interest Paid	4,309	8,466
Income Taxes Paid, Net	72	565
Transfer of inventory to property, equipment and improvements	(1,105)	(1,512)
Accrual for purchase of property, equipment, improvements and certain other intangible assets	$ (10)	$ (17)

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ (3,054)	$ 5,779
Other comprehensive (loss) income:
Foreign currency translation adjustment	2,948	1,289
Other comprehensive income (loss)	2,948	1,289
Comprehensive income	$ (106)	$ 7,068

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

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Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

3 Months Ended

Dec. 31, 2023

STOCK-BASED COMPENSATION

Stock-based awards granted in the first fiscal quarter of 2024 and 2023 were granted under the amended and restated 2021 Omnibus Incentive Plan (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 2021 Plan. The authority to grant options under the 2021 Plan and set other terms and conditions rests with the Compensation Committee of the Board of Directors.

As of December 31, 2023, there were approximately 1,881,637 shares available for future grants under the 2021 Plan.

Cash received from the exercise of stock options was $0.2 million and $0.9 million for the three months ended December 31, 2023 and 2022, respectively.

12. STOCK-BASED COMPENSATION (CONTINUED)

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. When employees make this election, we retain a portion of shares issuable under the award. Tax withholding obligations are otherwise fulfilled by the employee paying cash to us for the withholding. During the three months ended December 31, 2023 and 2022, our employees forfeited 87,792 shares and 71,951 shares, respectively, in order to satisfy withholding tax obligations of $2.1 million and $3.0 million, respectively.

We sponsor an Employee Stock Purchase Plan as amended and restated as of December 10, 2019, October 29, 2013, December 4, 2009 and November 27, 2006 (the "ESPP"), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The ESPP 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 ESPP, ratified by our stockholders on January 29, 2020, increased the total number of shares that may be purchased under the ESPP to 3,425,000. ESPP contributions by employees were $0.5 million and $0.6 million for the three months ended December 31, 2023 and 2022, respectively. Pursuant to the ESPP, 23,665 and 19,683 common shares were issued to employees during the three months ended December 31, 2023 and 2022, respectively. Shares are issued under the ESPP from treasury stock. As of December 31, 2023, 446,562 common shares were available for future issuances under the ESPP.

The following table shows stock-based compensation expense that is included in the consolidated results of operations (in thousands):


	Three months ended December 31,
	2023		2022
Cost of sales	$	181	$	142
Sales and marketing	1,168		851
Research and development	430		448
General and administrative	1,327		1,427
Stock-based compensation before income taxes	3,106		2,868
Income tax benefit	(663)		(599)
Stock-based compensation after income taxes	$	2,443	$	2,269

Stock Options

The following table summarizes our stock option activity (in thousands, except per common share amounts):


	Options Outstanding	Weighted Average Exercise Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance on September 30, 2023	1,553	$18.52
Granted	87	24.58
Exercised	(19)	24.04
Forfeited / Canceled	(10)	23.17
Balance on December 31, 2023	1,611	$18.89	3.8	$	12,533

Exercisable on December 31, 2023	1,137	$16.89	3.3	$	10,656

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $26.00 as of December 31, 2023, 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 the three months ended December 31, 2023 and 2023 was $0.4 million and $1.7 million, respectively.

12. STOCK-BASED COMPENSATION (CONTINUED)

The following table 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:


	Three months ended December 31,
	2023	2022
Weighted average per option grant date fair value	$12.44	$19.98
Assumptions used for option grants:
Risk free interest rate	4.45% - 4.68%	3.89% - 3.98%
Expected term	6.00 years	6.00 years
Expected volatility	46%	46%
Weighted average volatility	46%	46%
Expected dividend yield	—	—

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 December 31, 2023, the total unrecognized compensation cost related to non-vested stock options was $4.1 million and the related weighted average period over which it is expected to be recognized is approximately 1.5 years.

Non-vested Stock Units

The following table presents a summary of our non-vested restricted stock units and performance stock units as of December 31, 2023 and changes during the three 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 on September 30, 2023	846	$	30.56	135	$	37.72
Granted	302	24.55		122	24.59
Vested	(198)	26.87		(30)	37.11
Canceled	(9)	32.07		(7)	25.15
Nonvested on December 31, 2023	941	$	29.39	220	$	30.92

As of December 31, 2023, the total unrecognized compensation cost related to non-vested restricted stock units and performance stock units was $24.2 million and $1.4 million, respectively. The related weighted average period over which these costs are expected to be recognized was approximately 2.6 years and 0.8 years, respectively.

Income Taxes

3 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

Our income tax benefit was $0.2 million for the three months ended December 31, 2023. Included in this was a net tax liability of $0.2 million discretely related to the three months ended December 31, 2023. This liability primarily was the result of book stock compensation in excess of recognized tax benefits.

Our effective tax rate will vary based on a variety of factors. These factors include our overall profitability, the geographical mix of income before taxes and related statutory tax rate in each jurisdiction, and tax items discretely related to the period, such as tax impacts of stock compensation as there are no open audits during the period. We may record other benefits or expenses in the future that are specific to a particular quarter such as expiration of statutes of limitation, the completion of tax audits, or legislation that is enacted in both U.S. and foreign jurisdictions.

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


Unrecognized tax benefits as of September 30, 2023	$	3,162



Decreases related to:


Expiration of statute of limitations	(32)

Unrecognized tax benefits as of December 31, 2023	$	3,130

The total amount of unrecognized tax benefits at December 31, 2023 that, if recognized, would affect our effective tax rate was $3.0 million, after considering the impact of interest and deferred benefit items. We expect that the total amount of unrecognized tax benefits will decrease by approximately $0.4 million over the next 12 months.

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.

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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

Options Outstanding, Beginning Balance (in shares) | shares

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Revenue:
Total Revenue	$ 106,089	$ 109,306
Cost of sales:
Amortization of intangibles	953	1,103
Total cost of sales	44,989	47,785
Gross Profit	61,100	61,521
Operating expenses:
Sales and marketing	19,647	19,106
Research and development	14,633	14,094
General and administrative	14,687	16,358
Total operating expenses	48,967	49,558
Operating income	12,133	11,963
Other expense, net:
Interest expense, net	(5,661)	(5,971)
Debt issuance cost write off	(9,722)	0
Other expense, net	(26)	17
Total other expense, net	(15,409)	(5,954)
Income before income taxes	(3,276)	6,009
Income tax provision (benefit)	(222)	230
Net income	$ (3,054)	$ 5,779
Basic net (loss) income per common share:
Basic (USD per share)	$ (0.08)	$ 0.16
Diluted net (loss) income per common share
Diluted (USD per share)	$ (0.08)	$ 0.16
Weighted average common shares:
Basic (shares)	36,129	35,608
Diluted (shares)	36,129	36,859
Product
Revenue:
Revenue	$ 77,250	$ 81,755
Cost of sales:
Cost of sales excluding amortization	37,766	39,612
Service
Revenue:
Revenue	28,839	27,551
Cost of sales:
Cost of sales excluding amortization	$ 6,270	$ 7,070

Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Assets and Liabilities, Lessee [Abstract]
Operating lease other non-current asset	$ 12,187	$ 12,876
Total lease assets	12,187	12,876
Operating lease other current liabilities	3,216	3,352
Operating lease other non-current liability	13,333	13,989
Total lease liabilities	$ 16,549	$ 17,341

Stock-Based Compensation (Options and Common Shares Reserved for Grant) (Details) - Stock Options
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

Dec. 31, 2023

USD ($)

$ / shares

Options Outstanding [Roll Forward]

1,553

Options Outstanding, Granted (in shares) | shares

Options Outstanding, Exercised (in shares) | shares

(19)

Options Outstanding, Forfeited / Canceled (in shares) | shares

(10)

Options Outstanding, Ending Balance (in shares) | shares

1,611

Options Outstanding, Exercisable (in shares) | shares

1,137

Weighted Average Exercise Price [Roll Forward]

Weighted Average Exercise Price, Beginning Balance

$ 18.52

Weighted Average Exercise Price, Granted

24.58

Weighted Average Exercise Price, Exercised

24.04

Weighted Average Exercise Price, Forfeited / Canceled

23.17

Weighted Average Exercise Price, Ending Balance

18.89

Weighted Average Exercise Price, Exercisable

$ 16.89

Weighted Average Remaining Contractual Term [Abstract]

Weighted Average Remaining Contractual Term, Outstanding

3 years 9 months 18 days

Weighted Average Remaining Contractual Term, Exercisable

3 years 3 months 18 days

Aggregate Intrinsic Value, Outstanding | $

$ 12,533

^[1]

Aggregate Intrinsic Value, Exercisable | $

$ 10,656

^[1]

Closing Stock Price

$ 26.00

[1]

The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $26.00 as of December 31, 2023, 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.

Revenue - Performance Obligations (Details) $ in Millions	Dec. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 156.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	156.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 67.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, period	12 months
Remaining performance obligation	$ 67.5
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, period	2 years
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, period	5 years

Indebtedness

3 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

INDEBTEDNESS

5. INDEBTEDNESS

On December 7, 2023, Digi entered into a credit agreement (the “Credit Agreement”) with BMO Bank N.A. (“BMO”), as administrative and collateral agent, BMO Capital Markets Corp., BofA Securities, Inc. and MUFG Bank, Ltd., as joint lead arrangers and joint bookrunners, and the several banks and other financial institutions or entities from time to time party thereto as lenders (the “Lenders”). The Credit Agreement provides Digi with a senior secured credit facility (the “Credit Facility”). The Credit Facility includes a $250 million senior secured revolving credit facility (the “Revolving Loan Facility”), with an uncommitted accordion feature that provides for additional borrowing capacity of up to the greater of $95 million or one hundred percent of trailing twelve month adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA"). The Credit Facility also contains a $10 million letter of credit sublimit and $10 million swingline sub-facility. Digi may use the proceeds of the Credit Facility in the future for general corporate purposes.

Digi borrowed a total of $215 million under the Credit Facility to repay all obligations and to pay related fees and expenses under the Third Amended and Restated Credit Agreement dated as of December 22, 2021 (the “Prior Credit Facility”), by and among Digi, as the borrower, BMO, as administrative agent and collateral agent, BMO Capital Markets Corp., as sole lead arranger and bookrunner, and the other lenders from time-to-time party thereto. The Prior Credit Facility consisted of a $350 million term loan B secured loan and a $35 million revolving credit facility that included a $10 million letter of credit subfacility and $10 million swingline subfacility.

5. INDEBTEDNESS (CONTINUED)

Borrowings under the Credit Facility bear interest at a rate per annum equal to Term SOFR with a floor of 0.00% 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 Term SOFR is no longer available) plus the applicable margin or a base rate plus the applicable margin. The base rate is determined by reference to the highest of BMO’s prime rate, the rate determined by BMO to be the average rate of Federal funds in the secondary market plus 0.50%, or one-month SOFR plus 1.00%. The applicable margin for loans under the Credit Facility is in a range of 1.75% to 2.75% for Term SOFR loans and 0.75% to 1.75% for base rate loans, depending on Digi’s total net leverage ratio. The initial borrowings were made at Term SOFR for a one-month interest period plus an applicable margin of 2.50%. Our weighted average interest rate for our Credit Facility was 7.96% as of December 31, 2023.

In addition to paying interest on the outstanding principal, Digi is required to pay a commitment fee on the unutilized commitments under the Credit Facility. The commitment fee is between 0.20% and 0.35% depending on Digi’s total net leverage ratio. Our weighted average Revolving Loan Facility commitment fee was 0.30% as of December 31, 2023. The Credit Facility is secured by substantially all of the property of Digi and its domestic subsidiaries.

The debt issuance costs and remaining balance under the Prior Credit Facility totaling $9.7 million at December 7, 2023 were written off and included in other expenses upon the entry into the Credit Agreement. Digi incurred an additional $1.3 million in debt issuance costs upon entry into the Credit Agreement, with this amount amortized over the term of the Credit Agreement and reported in interest expense.

The Revolving Loan is due in a lump sum payment at maturity December 7, 2028, if any amounts are drawn. The fair value of the Revolving Loan approximated carrying value at December 31, 2023.

The following table is a summary of our long-term indebtedness at December 31, 2023 and September 30, 2023 (in thousands):


	Balance on December 31, 2023		Balance on September 30, 2023
Revolving loan	$	196,000	$	—
Term loan	—		213,625
Total loans	196,000		213,625
Less unamortized issuance costs	(1,316)		(10,051)
Less current maturities of long-term debt	—		(15,523)
Total long-term debt, net of current portion	$	194,684	$	188,051

Covenants and Security Interest

The Credit Agreement requires Digi to maintain a minimum interest coverage ratio of 3.00 to 1.00 and a total net leverage ratio not to exceed 3.00 to 1.00, with certain exceptions for a covenant holiday of up to 3.50 to 1.00 after certain material acquisitions. The total net leverage ratio is defined as the ratio of Digi’s consolidated total funded indebtedness minus unrestricted cash as of such date up to a maximum amount not to exceed $50 million, to consolidated EBITDA for such period. The Credit Agreement also contains other customary affirmative and negative covenants, including covenants that restrict the ability of Digi and its subsidiaries to incur additional indebtedness, dispose of significant assets, make certain investments, including any acquisitions other than permitted acquisitions, make certain restricted payments, enter into sale and leaseback transactions or grant additional liens on its assets, subject to certain limitations. Amounts borrowed under the Credit Facility are secured by substantially all of our assets.

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

EARNINGS (LOSS) PER SHARE

Earnings (Loss) Per Share

3 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

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):


	Three months ended December 31,
	2023		2022
Numerator:


Net (loss) income	$	(3,054)	$	5,779

Denominator:
Denominator for basic net income per common share — weighted average shares outstanding	36,129		35,608
Effect of dilutive securities:
Stock options and restricted stock units	—		1,251
Denominator for diluted net income per common share — adjusted weighted average shares	36,129		36,859




Net (loss) income per common share, basic	$	(0.08)	$	0.16



Net (loss) income per common share, diluted	$	(0.08)	$	0.16

Digi excludes certain stock options and restricted stock unit awards that would have an anti-dilutive effect on our diluted net (loss) income per share calculation. For the three months ended December 31, 2023 and 2022, 1,563,857 and 234,365 shares outstanding were excluded, respectively.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Revenue - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Unearned Revenue (Details)
Amortization	$ 1.0	$ 0.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Unearned Revenue (Details)
Remaining performance obligation, period	12 months
Equipment
Unearned Revenue (Details)
Contract assets	$ 16.7		$ 16.6

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 222	$ (230)
Income tax benefit specific to the period	$ 200

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

Share-Based Payment Arrangement [Abstract]

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock, Common	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income
Beginning balance (in shares) at Sep. 30, 2022		41,950	6,413
Beginning balance at Sep. 30, 2022	$ 501,513	$ 420	$ (58,172)	$ 385,244	$ 200,075	$ (26,054)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,779				5,779
Other comprehensive (loss) income	1,289					1,289
Employee stock purchase plan issuances (in shares)			(20)
Employee stock purchase plan issuances	594		$ 186	408
Taxes paid for net share settlement of share-based payment awards (in shares)			72
Taxes paid for net share settlement of share-based payment awards	(2,987)		$ (2,987)
Issuance of stock under stock award plans (in shares)		249
Issuance of stock under stock award plans	872	$ 2		870
Stock-based compensation expense	2,868			2,868
Ending balance (in shares) at Dec. 31, 2022		42,199	6,465
Ending balance at Dec. 31, 2022	509,928	$ 422	$ (60,973)	389,390	205,854	(24,765)
Beginning balance (in shares) at Sep. 30, 2023		42,501	6,436
Beginning balance at Sep. 30, 2023	540,488	$ 425	$ (61,506)	403,735	224,845	(27,011)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(3,054)				(3,054)
Other comprehensive (loss) income	2,948					2,948
Employee stock purchase plan issuances (in shares)			(24)
Employee stock purchase plan issuances	531		$ 231	300
Taxes paid for net share settlement of share-based payment awards (in shares)			88
Taxes paid for net share settlement of share-based payment awards	(2,168)		$ (2,135)	(33)
Issuance of stock under stock award plans (in shares)		248
Issuance of stock under stock award plans	224	$ 2		222
Stock-based compensation expense	3,106			3,106
Ending balance (in shares) at Dec. 31, 2023		42,749	6,500
Ending balance at Dec. 31, 2023	$ 542,075	$ 427	$ (63,410)	$ 407,330	$ 221,791	$ (24,063)

Stock-Based Compensation (Tables)

3 Months Ended

Dec. 31, 2023

Schedule of Stock-Based Compensation Expense

The following table shows stock-based compensation expense that is included in the consolidated results of operations (in thousands):


	Three months ended December 31,
	2023		2022
Cost of sales	$	181	$	142
Sales and marketing	1,168		851
Research and development	430		448
General and administrative	1,327		1,427
Stock-based compensation before income taxes	3,106		2,868
Income tax benefit	(663)		(599)
Stock-based compensation after income taxes	$	2,443	$	2,269

Schedule of Stock Option Activity

The following table summarizes our stock option activity (in thousands, except per common share amounts):


	Options Outstanding	Weighted Average Exercise Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance on September 30, 2023	1,553	$18.52
Granted	87	24.58
Exercised	(19)	24.04
Forfeited / Canceled	(10)	23.17
Balance on December 31, 2023	1,611	$18.89	3.8	$	12,533

Exercisable on December 31, 2023	1,137	$16.89	3.3	$	10,656

Schedule of Valuation Assumptions


	Three months ended December 31,
	2023	2022
Weighted average per option grant date fair value	$12.44	$19.98
Assumptions used for option grants:
Risk free interest rate	4.45% - 4.68%	3.89% - 3.98%
Expected term	6.00 years	6.00 years
Expected volatility	46%	46%
Weighted average volatility	46%	46%
Expected dividend yield	—	—

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 on September 30, 2023	846	$	30.56	135	$	37.72
Granted	302	24.55		122	24.59
Vested	(198)	26.87		(30)	37.11
Canceled	(9)	32.07		(7)	25.15
Nonvested on December 31, 2023	941	$	29.39	220	$	30.92

Stock-Based Compensation (Non-Vested Options) (Details) shares in Thousands	3 Months Ended
	Dec. 31, 2023 $ / shares shares
Restricted Stock Units
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	846
Number of Restricted Stock Units, Granted \| shares	302
Number of Restricted Stock Units, Vested \| shares	(198)
Number of Restricted Stock Units, Canceled \| shares	(9)
Number of Restricted Stock Units, Ending Balance \| shares	941
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	$ 30.56
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	24.55
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	26.87
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	32.07
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 29.39
Performance Shares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	135
Number of Restricted Stock Units, Granted \| shares	122
Number of Restricted Stock Units, Vested \| shares	(30)
Number of Restricted Stock Units, Canceled \| shares	(7)
Number of Restricted Stock Units, Ending Balance \| shares	220
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	$ 37.72
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	24.59
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	37.11
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	25.15
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 30.92

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income	$ (3,054)	$ 5,779

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

Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 12.44	$ 19.98
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	4.45%	3.89%
Risk free interest rate, maximum	4.68%	3.98%
Expected term	6 years	6 years
Expected volatility rate	46.00%
Weighted average volatility	46.00%	46.00%
Expected dividend yield	0.00%	0.00%
Minimum
Assumptions Used For Options Grants [Abstract]
Expected volatility rate		46.00%

Indebtedness - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Indebtedness - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 07, 2023	Dec. 22, 2021
Line of Credit Facility [Line Items]
Revolving loan maximum borrowing capacity			$ 215,000
Debt instrument, margin spread on LIBOR Rate	2.50%
Credit Facility [Domain] \| Line of Credit
Line of Credit Facility [Line Items]
Debt instrument, covenant, leverage ratio, minimum	3.00
Debt instrument, covenant, liquidity ratio, total net leverage ratio	3.00
Debt instrument, covenant, holiday, exception	3.50
Prior Credit Facility
Line of Credit Facility [Line Items]
Debt issuance costs		$ 9,700
December 7, 2023 Credit Agreement
Line of Credit Facility [Line Items]
Debt issuance costs		1,300
Term loan
Line of Credit Facility [Line Items]
Revolving loan maximum borrowing capacity			350,000
Weighted average interest rate on debt	7.96%
Term loan \| Base Rate \| Federal Funds Rate
Line of Credit Facility [Line Items]
Debt instrument, margin spread on LIBOR Rate	0.50%
Term loan \| Base Rate \| LIBOR
Line of Credit Facility [Line Items]
Debt instrument, margin spread on LIBOR Rate	1.00%
Revolving loan
Line of Credit Facility [Line Items]
Revolving loan maximum borrowing capacity		250,000	35,000
Line of credit facility, accordion feature, increase limit		95,000
Line of credit facility, unused capacity, commitment fee percentage	0.30%
Revolving loan \| Minimum
Line of Credit Facility [Line Items]
Line of credit facility, unused capacity, commitment fee percentage	0.20%
Revolving loan \| Maximum
Line of Credit Facility [Line Items]
Line of credit facility, unused capacity, commitment fee percentage	0.35%
Revolving loan \| Benchmark Rate \| Minimum
Line of Credit Facility [Line Items]
Debt instrument, margin spread on LIBOR Rate	1.75%
Revolving loan \| Benchmark Rate \| Maximum
Line of Credit Facility [Line Items]
Debt instrument, margin spread on LIBOR Rate	2.75%
Revolving loan \| Base Rate \| Minimum
Line of Credit Facility [Line Items]
Debt instrument, interest rate, effective percentage	0.00%
Debt instrument, margin spread on LIBOR Rate	0.75%
Revolving loan \| Base Rate \| Maximum
Line of Credit Facility [Line Items]
Debt instrument, margin spread on LIBOR Rate	1.75%
Letter of Credit
Line of Credit Facility [Line Items]
Revolving loan maximum borrowing capacity		$ 10,000	10,000
Swingline Credit Facility
Line of Credit Facility [Line Items]
Revolving loan maximum borrowing capacity			$ 10,000

Goodwill and Other Identifiable Intangible Assets, Net (Amortization Expense) (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2024 (nine months)	$ 19,058
2025	21,781
2026	21,549
2027	20,593
2028	20,411
2029	$ 18,355

Leases - Maturity of Operating Lease Liability (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]
2024 (nine months)	$ 3,197
2025	3,529
2026	3,139
2027	2,043
2028	1,897
2029	1,840
Thereafter	3,865
Total future undiscounted lease payments	19,510
Less imputed interest	(2,961)
Total reported lease liability	$ 16,549

Goodwill and Other Identifiable Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 436,068		$ 435,897
Accumulated amortization	(165,147)		(158,813)
Net	270,921		277,084
Amortization expense	6,591	$ 6,957
Goodwill	342,424		341,593
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	85,080		85,032
Accumulated amortization	(60,833)		(59,833)
Net	24,247		25,199
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	40,035		39,957
Accumulated amortization	(20,421)		(19,888)
Net	19,614		20,069
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	309,241		309,196
Accumulated amortization	(82,181)		(77,380)
Net	227,060		231,816
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)		(1,000)
Net	0		$ 0
Cost of Sales and General and Administrative Expense
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 6,200	$ 6,500

Revenue - Unearned Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Unearned Revenue (Details)
Unearned Revenue	$ 35.0	$ 23.0	$ 27.9	$ 21.6
Contract with Customer, Liability, Revenue Recognized	$ 7.4	$ 6.1

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.