XML 50 R35.htm IDEA: XBRL DOCUMENT v3.25.3
Income Taxes (Tables)
12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Taxes
The components of income before income taxes are (in thousands):
Year ended September 30,
202520242023
United States$47,517 $19,088 $21,149 
International2,400 3,770 3,769 
Income before income taxes$49,917 $22,858 $24,918 
Schedule of Components of Income Tax Provision
The components of the income tax expense are (in thousands):
Year ended September 30,
202520242023
Current:
Federal$12,263 $9,149 $9,894 
State2,318 1,995 1,955 
Foreign1,110 832 598 
Deferred:
Federal(5,563)(11,189)(12,131)
Foreign(1,015)(434)(168)
Income tax (benefit) expense$9,113 $353 $148 
Schedule of Net Deferred Tax Asset
Net deferred tax liability consists of (in thousands):
As of September 30,
20252024
Non-current deferred tax asset$5,131 $16,141 
Non-current deferred tax liability(164)(1,308)
Net deferred tax asset (liability)$4,967 $14,833 
Depreciation and amortization$(5,075)$(4,735)
Lease asset(1,927)(2,283)
Lease liability2,783 3,183 
Inventories5,737 6,614 
Compensation costs6,308 5,552 
Deferred Revenue10,863 7,595 
Other accruals5,839 5,805 
Tax credit carryforwards4,488 3,531 
Net operating loss carryforwards9,840 323 
Valuation allowance(3,217)(3,317)
Identifiable intangible assets(57,926)(25,533)
Research and development costs27,254 18,098 
Net deferred tax asset (liability)$4,967 $14,833 
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,
202520242023
Statutory income tax amount$10,494 $4,800 $5,233 
Increase (decrease) resulting from:
State taxes, net of federal benefits601 401 636 
Employee stock purchase plan141 159 165 
Foreign operations1,412 1,751 984 
Non-deductible executive compensation734 519 373 
Utilization of research and development tax credits(4,000)(5,224)(4,678)
ASU 2016-09 excess stock compensation(673)(47)(1,678)
Changes from provision to return1,123 (791)181 
Adjustment of tax contingency reserves465 491 238 
U.S. deduction for foreign export sales(1,724)(1,827)(1,419)
Other, net540 121 113 
Income tax (benefit) expense$9,113 $353 $148 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands):
Year ended September 30,
202520242023
Unrecognized tax benefits at beginning of fiscal year$3,602 $3,162 $3,316 
Increases related to:
Prior year income tax positions579 71 100 
Current year income tax positions726 768 858 
Decreases related to:
Prior year income tax positions(92)— (159)
Expiration of statute of limitations(503)(399)(953)
Unrecognized tax benefits at end of fiscal year$4,312 $3,602 $3,162