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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2018
Income Tax Disclosure [Abstract] |
Schedule of Components of the Provision (Benefit) for Income Taxes | The components of income (loss) before provision for income taxes are as follows (in thousands):
| Years Ended September 30,
| 2018 |  | 2017 |  | 2016
Domestic | $ | 7,845 |  |  | $ | 1,900 |  |  | $ | 2,100 |
Foreign | (2,320 | ) |  | 7,930 |  |  | (7,550 | )
| $ | 5,525 |  |  | $ | 9,830 |  |  | $ | (5,450 | )
The components of the provision for income taxes are as follows (in thousands):
| Years Ended September 30,
| 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |
Domestic federal | $ | 1,167 |  |  | $ | 54 |  |  | $ | 530 |
Foreign | (1,404 | ) |  | 1,330 |  |  | 500 |
Foreign withholding taxes | 356 |  |  | 240 |  |  | 280 |
Domestic state | 101 |  |  | 120 |  |  | 110 |
Total current | 220 |  |  | 1,744 |  |  | 1,420 |
Deferred: |  |  |  |  |
Domestic federal | — |  |  | — |  |  | 1,680 |
Total deferred | — |  |  | — |  |  | 1,680 |
Total provision | $ | 220 |  |  | $ | 1,744 |  |  | $ | 3,100 |
Reconciliation of Actual Income Taxes to Expected Federal Corporate Income Taxes | A reconciliation of actual income taxes to income taxes at the expected United States federal corporate income tax rate is as follows (in thousands, except percentages):
| Years Ended September 30,
| 2018 |  | 2017 |  | 2016
Federal statutory rate | 24.3 | % |  | 34.0 | % |  | 34.0 | %
Tax expense (benefit) at the federal statutory rate | $ | 1,342 |  |  | $ | 3,340 |  |  | $ | (1,890 | )
Effect of permanent book-tax differences | 75 |  |  | 340 |  |  | 1,120 |
State tax provision | 76 |  |  | 100 |  |  | 110 |
Valuation allowance for net deferred tax assets | 617 |  |  | (1,610 | ) |  | 2,690 |
Uncertain tax items | (3,013 | ) |  | 350 |  |  | 350 |
Tax rate differential | 1,107 |  |  | (776 | ) |  | 1,050 |
Other items | 16 |  |  | — |  |  | (330 | )
| $ | 220 |  |  | $ | 1,744 |  |  | $ | 3,100 |
Schedule of Deferred Tax Assets and Deferred Tax Liability | The components of deferred tax assets and deferred tax liabilities are as follows (in thousands):
| Years Ended September 30,
| 2018 |  | 2017
Deferred tax assets (liabilities): |  |  |
Capitalized inventory costs | $ | 193 |  |  | $ | 210 |
Inventory write-downs | 1,333 |  |  | 1,945 |
Accrued warranty | 204 |  |  | 260 |
Deferred profits | 1,006 |  |  | 1,190 |
Accruals and reserves not currently deductible | 5,017 |  |  | 1,945 |
Stock option expense | 738 |  |  | 1,080 |
Book vs. tax basis of acquired assets | — |  |  | (1,290 | )
Federal net operating loss carryforwards | 2,922 |  |  | 4,820 |
Foreign and state net operating losses | 13,860 |  |  | 14,800 |
Book vs. tax depreciation and amortization | (1,667 | ) |  | (2,250 | )
Foreign tax credits | — |  |  | 420 |
Other deferred tax assets | 163 |  |  | — |
Total deferred tax assets | 23,769 |  |  | 23,130 |
Valuation allowance | (23,769 | ) |  | (22,930 | )
Deferred tax assets, net of valuation allowance | $ | — |  |  | $ | 200 |
Changes in Deferred Tax Valuation Allowance | Changes in the deferred tax valuation allowance are as follows (in thousands):
| Years Ended September 30,
| 2018 |  | 2017
Balance at the beginning of the year | $ | 22,930 |  |  | $ | 24,310 |
Additions (reductions) to valuation allowance | 839 |  |  | (1,380 | )
Balance at the end of the year | $ | 23,769 |  |  | $ | 22,930 |
Schedule of Unrecognized Tax Benefit Liabilities | A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows (in thousands):
| Years Ended September 30,
| 2018 |  | 2017 |  | 2016
Balance at beginning of the year | $ | 4,210 |  |  | $ | 3,860 |  |  | $ | 3,510 |
Additions related to tax positions taken in prior years | 155 |  |  | 350 |  |  | 350 |
Reductions due to resolution of uncertain tax position | (3,167 | ) |  | — |  |  | — |
Balance at the end of the year | $ | 1,198 |  |  | $ | 4,210 |  |  | $ | 3,860 |

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