Stock-Based Compensation (Tables)

6 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-Based Compensation Expense

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



	Three months ended March 31,						Six months ended March 31,
	2019			2018			2019			2018
Cost of sales	$	25		$	46		$	80		$	96
Sales and marketing	466			391			819			725
Research and development	269			167			469			175
General and administrative	533			721			1,339			1,382
Stock-based compensation before income taxes	1,293			1,325			2,707			2,378
Income tax benefit	(263		)	(277		)	(557		)	(498		)
Stock-based compensation after income taxes	$	1,030		$	1,048		$	2,150		$	1,880

Schedule of Stock Option Activity

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



	Options Outstanding		Weighted Average Exercised Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance at September 30, 2018	3,526		$10.49
Granted	590		10.92
Exercised	(410	)	9.14
Forfeited / Canceled	(301	)	12.64
Balance at March 31, 2019	3,405		$10.67	4.3	$	7,154

Exercisable at March 31, 2019	2,192		$10.29	3.3	$	5,434

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $12.67 as of March 31, 2019, 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.

Schedule of Valuation Assumptions

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:



	Six months ended March 31,
	2019	2018
Weighted average per option grant date fair value	$4.36	$3.72
Assumptions used for option grants:
Risk free interest rate	2.56% - 2.93%	2.12% - 2.58%
Expected term	6.00 years	6.00 years
Expected volatility	33% - 34%	33% - 34%
Weighted average volatility	33%	33%
Expected dividend yield	0	0

Schedule of Nonvested Restricted Stock Units

A summary of our non-vested restricted stock units as of March 31, 2019 and changes during the six months then ended is presented below (in thousands, except per common share amounts):



	Number of Awards		Weighted Average Grant Date Fair Value
Nonvested at September 30, 2018	674		$	11.05
Granted	534		$	11.60
Vested	(248	)	$	10.42
Canceled	(115	)	$	12.31
Nonvested at March 31, 2019	845		$	11.41