Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36632 | |
Entity Registrant Name | EMCORE Corp | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-2746503 | |
Entity Address, Address Line One | 2015 W. Chestnut Street | |
Entity Address, City or Town | Alhambra | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91803 | |
City Area Code | 626 | |
Local Phone Number | 293-3400 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | EMKR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,521,023 | |
Entity Central Index Key | 0000808326 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 32,650 | $ 38,406 | $ 74,886 | $ 71,832 |
Cost of revenue | 23,633 | 23,772 | 50,072 | 44,626 |
Gross profit | 9,017 | 14,634 | 24,814 | 27,206 |
Operating expense: | ||||
Selling, general, and administrative | 7,563 | 6,062 | 14,750 | 11,860 |
Research and development | 4,535 | 3,771 | 9,162 | 8,067 |
Severance | 20 | 0 | 1,318 | 0 |
(Gain) loss on sale of assets | (788) | 218 | (601) | 189 |
Total operating expense | 11,330 | 10,051 | 24,629 | 20,116 |
Operating (loss) income | (2,313) | 4,583 | 185 | 7,090 |
Other (expense) income: | ||||
Interest expense, net | (12) | (49) | (23) | (98) |
Foreign exchange (loss) gain | (17) | (68) | 25 | 169 |
Total other (expense) income | (29) | (117) | 2 | 71 |
(Loss) income before income tax benefit (expense) | (2,342) | 4,466 | 187 | 7,161 |
Income tax benefit (expense) | 117 | (82) | 2 | (208) |
Net (loss) income | (2,225) | 4,384 | 189 | 6,953 |
Foreign exchange translation adjustment | 2 | (11) | 22 | (21) |
Comprehensive (loss) income | $ (2,223) | $ 4,373 | $ 211 | $ 6,932 |
Per share data | ||||
Net income per basic share (in dollars per share) | $ (0.06) | $ 0.13 | $ 0.01 | $ 0.22 |
Weighted-average number of basic shares outstanding (in shares) | 37,217 | 32,968 | 37,082 | 31,219 |
Net income per diluted share (in dollars per share) | $ (0.06) | $ 0.13 | $ 0.01 | $ 0.21 |
Weighted-average number of diluted shares outstanding (in shares) | 37,217 | 34,451 | 38,384 | 32,492 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 80,928 | $ 71,621 |
Restricted cash | 21 | 61 |
Accounts receivable, net of credit loss of $225 and $260, respectively | 27,203 | 31,849 |
Contract assets | 491 | 361 |
Inventory | 28,049 | 32,309 |
Prepaid expenses and other current assets | 6,543 | 6,877 |
Assets held for sale | 735 | 1,241 |
Total current assets | 143,970 | 144,319 |
Property, plant, and equipment, net | 23,837 | 22,544 |
Goodwill | 69 | 69 |
Operating lease right-of-use assets | 19,930 | 13,489 |
Other intangible assets, net | 149 | 167 |
Other non-current assets | 213 | 225 |
Total assets | 188,168 | 180,813 |
Current liabilities: | ||
Accounts payable | 15,317 | 16,686 |
Accrued expenses and other current liabilities | 10,470 | 9,936 |
Operating lease liabilities - current | 938 | 1,198 |
Total current liabilities | 26,725 | 27,820 |
Operating lease liabilities - non-current | 19,479 | 12,684 |
Asset retirement obligations | 2,067 | 2,049 |
Other long-term liabilities | 115 | 794 |
Total liabilities | 48,386 | 43,347 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity: | ||
Common stock, no par value, 50,000 shares authorized; 44,301 shares issued and 37,395 shares outstanding as of March 31, 2022; 43,890 shares issued and 36,984 shares outstanding as of September 30, 2021 | 784,371 | 782,266 |
Treasury stock at cost; 6,906 shares as of March 31, 2022 and September 30, 2021 | (47,721) | (47,721) |
Accumulated other comprehensive income | 709 | 687 |
Accumulated deficit | (597,577) | (597,766) |
Total shareholders’ equity | 139,782 | 137,466 |
Total liabilities and shareholders’ equity | $ 188,168 | $ 180,813 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 225 | $ 260 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 44,301,000 | 43,890,000 |
Common stock, shares outstanding (in shares) | 37,395,000 | 36,984,000 |
Treasury stock, shares held (in shares) | 6,906,000 | 6,906,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Accumulated other comprehensive income | Accumulated deficit |
Beginning balance (in shares) at Sep. 30, 2020 | 29,551 | ||||
Shares of common stock | |||||
Stock-based compensation (in shares) | 433 | ||||
Stock option exercises (in shares) | 10 | ||||
Issuance of common stock - ESPP (in shares) | 126 | ||||
Sale of common stock (in shares) | 6,655 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 36,775 | ||||
Balance, beginning of period at Sep. 30, 2020 | $ 744,361 | $ (47,721) | $ 918 | $ (623,409) | |
Shares of common stock | |||||
Stock-based compensation | 1,834 | ||||
Stock option exercises | 46 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (83) | ||||
Issuance of common stock - ESPP | 382 | ||||
Sale of common stock, net of offering costs | 33,141 | ||||
Translation adjustment | $ (21) | (21) | |||
Net (loss) income | 6,953 | 6,953 | |||
Balance, end of period at Mar. 31, 2021 | 116,401 | $ 779,681 | (47,721) | 897 | (616,456) |
Beginning balance (in shares) at Dec. 31, 2020 | 29,783 | ||||
Shares of common stock | |||||
Stock-based compensation (in shares) | 203 | ||||
Stock option exercises (in shares) | 8 | ||||
Issuance of common stock - ESPP (in shares) | 126 | ||||
Sale of common stock (in shares) | 6,655 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 36,775 | ||||
Balance, beginning of period at Dec. 31, 2020 | $ 745,188 | (47,721) | 908 | (620,840) | |
Shares of common stock | |||||
Stock-based compensation | 931 | ||||
Stock option exercises | 39 | ||||
Tax withholding paid on behalf of employees for stock-based awards | 0 | ||||
Issuance of common stock - ESPP | 382 | ||||
Sale of common stock, net of offering costs | 33,141 | ||||
Translation adjustment | (11) | (11) | |||
Net (loss) income | 4,384 | 4,384 | |||
Balance, end of period at Mar. 31, 2021 | $ 116,401 | $ 779,681 | (47,721) | 897 | (616,456) |
Beginning balance (in shares) at Sep. 30, 2021 | 36,984 | 36,984 | |||
Shares of common stock | |||||
Stock-based compensation (in shares) | 405 | ||||
Stock option exercises (in shares) | 6 | ||||
Issuance of common stock - ESPP (in shares) | 0 | ||||
Sale of common stock (in shares) | 0 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 37,395 | 37,395 | |||
Balance, beginning of period at Sep. 30, 2021 | $ 782,266 | (47,721) | 687 | (597,766) | |
Shares of common stock | |||||
Stock-based compensation | 2,232 | ||||
Stock option exercises | 29 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (156) | ||||
Issuance of common stock - ESPP | 0 | ||||
Sale of common stock, net of offering costs | 0 | ||||
Translation adjustment | $ 22 | 22 | |||
Net (loss) income | 189 | 189 | |||
Balance, end of period at Mar. 31, 2022 | $ 139,782 | $ 784,371 | (47,721) | 709 | (597,577) |
Beginning balance (in shares) at Dec. 31, 2021 | 37,275 | ||||
Shares of common stock | |||||
Stock-based compensation (in shares) | 120 | ||||
Stock option exercises (in shares) | 0 | ||||
Issuance of common stock - ESPP (in shares) | 0 | ||||
Sale of common stock (in shares) | 0 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 37,395 | 37,395 | |||
Balance, beginning of period at Dec. 31, 2021 | $ 783,329 | (47,721) | 707 | (595,352) | |
Shares of common stock | |||||
Stock-based compensation | 1,144 | ||||
Stock option exercises | 0 | ||||
Tax withholding paid on behalf of employees for stock-based awards | (102) | ||||
Issuance of common stock - ESPP | 0 | ||||
Sale of common stock, net of offering costs | 0 | ||||
Translation adjustment | $ 2 | 2 | |||
Net (loss) income | (2,225) | (2,225) | |||
Balance, end of period at Mar. 31, 2022 | $ 139,782 | $ 784,371 | $ (47,721) | $ 709 | $ (597,577) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 189 | $ 6,953 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 2,037 | 1,989 |
Stock-based compensation expense | 2,232 | 1,825 |
Provision adjustments related to credit loss | 165 | (52) |
Provision adjustments related to product warranty | 139 | 222 |
(Gain) loss on disposal of property, plant, and equipment | (601) | 189 |
Other | 464 | (292) |
Total non-cash adjustments | 4,436 | 3,881 |
Changes in operating assets and liabilities: | ||
Accounts receivable and contract assets | 4,351 | (3,574) |
Inventory | 6,663 | (3,909) |
Other assets | (4,857) | 1,121 |
Accounts payable | (4,893) | (660) |
Accrued expenses and other current liabilities | 5,646 | (2,040) |
Total change in operating assets and liabilities | 6,910 | (9,062) |
Net cash provided by operating activities | 11,535 | 1,772 |
Cash flows from investing activities: | ||
Purchase of equipment | (3,297) | (1,142) |
Proceeds from disposal of property, plant, and equipment | 1,128 | 583 |
Net cash used in investing activities | (2,169) | (559) |
Cash flows from financing activities: | ||
Proceeds from employee stock purchase plan and equity awards | 29 | 428 |
Proceeds from sale of common stock | 0 | 35,937 |
Issuance cost associated with sale of common stock | 0 | (2,796) |
Taxes paid related to net share settlement of equity awards | (156) | (83) |
Net cash (used in) provided by financing activities | (127) | 33,486 |
Effect of exchange rate changes provided by foreign currency | 28 | 44 |
Net increase in cash, cash equivalents, and restricted cash | 9,267 | 34,743 |
Cash, cash equivalents, and restricted cash at beginning of period | 71,682 | 30,538 |
Cash, cash equivalents, and restricted cash at end of period | 80,949 | 65,281 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 30 | 31 |
Cash paid during the period for income taxes | 361 | 295 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Changes in accounts payable related to purchases of equipment | $ (11) | $ (256) |
Description of Business
Description of Business | 6 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of BusinessEMCORE Corporation (referred to herein, together with its subsidiaries, as the “Company,” “we,” “our,” or “EMCORE”) is a leading provider of sensors for navigation in the aerospace and defense market as well as a manufacturer of lasers and optical subsystems for use in the Cable TV ("CATV") industry. We pioneered the linear fiber optic transmission technology that enabled the world’s first delivery of CATV directly on fiber, and today are a leading provider of advanced products that enable communications systems and service providers to meet growing demand for increased bandwidth and connectivity. The technology at the heart of our broadband communications products is shared with our fiber optic gyroscope (“FOG”) and inertial sensors to provide the aerospace and defense markets with state-of-the-art navigation systems technology. With the acquisition of Systron Donner Inertial, Inc. ("SDI"), a navigation systems provider with a scalable, chip-based platform for higher volume gyro applications utilizing quartz micro-electromechanical system ("QMEMS") technology, in June 2019, we further expanded our portfolio of gyros and inertial sensors with SDI’s QMEMS gyro and accelerometer technology. We have fully vertically-integrated manufacturing capability through our indium phosphide ("InP") compound semiconductor wafer fabrication facility at our headquarters in Alhambra, CA, and through our quartz processing and sensor manufacturing facility in Concord, CA. These facilities support our vertically-integrated manufacturing strategy for quartz and FOG products, for navigation systems, and for our chip, laser, transmitter, and receiver products for broadband applications. With both analog and digital circuits on multiple chips, or even a single chip, the value of Mixed-Signal device solutions is often substantially greater than traditional digital applications and requires a specialized expertise held by us which is unique in the optics industry. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and notes required by U.S. GAAP for annual financial statements. In our opinion, the interim financial statements reflect all adjustments, which are all normal recurring adjustments, that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of September 30, 2021 has been derived from the audited consolidated financial statements as of such date. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. Significant Accounting Policies and Estimates There have been no material changes in our significant accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. If these estimates differ significantly from actual results, the impact to the condensed consolidated financial statements may be material. Recent Accounting Pronouncements We recently adopted the following accounting standards, which had the following impacts on our consolidated financial statements: In December 2019, the FASB issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing various exceptions, such as the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments in this update also simplify the accounting for income taxes related to income-based franchise taxes and require that an entity reflect enacted tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The new standard was effective for our fiscal year beginning October 1, 2021. The adoption of this new standard did not have a material impact on the condensed consolidated financial statements. Other accounting standards that have been issued or proposed by FASB and do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows: As of (in thousands) March 31, 2022 September 30, 2021 Cash $ 25,847 $ 16,547 Cash equivalents 55,081 55,074 Restricted cash 21 61 Total cash, cash equivalents, and restricted cash $ 80,949 $ 71,682 |
Accounts Receivable, net
Accounts Receivable, net | 6 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net The components of accounts receivable consisted of the following: As of (in thousands) March 31, 2022 September 30, 2021 Accounts receivable, gross $ 27,428 $ 32,109 Allowance for credit loss (225) (260) Accounts receivable, net $ 27,203 $ 31,849 |
Inventory
Inventory | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory consisted of the following: As of (in thousands) March 31, 2022 September 30, 2021 Raw materials $ 14,861 $ 16,146 Work in-process 9,864 11,410 Finished goods 3,324 4,753 Inventory $ 28,049 $ 32,309 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 6 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, net | Property, Plant, and Equipment, netThe components of property, plant, and equipment, net consisted of the following: As of (in thousands) March 31, 2022 September 30, 2021 Equipment $ 38,944 $ 37,985 Furniture and fixtures 1,125 1,125 Computer hardware and software 3,576 3,575 Leasehold improvements 6,701 6,663 Construction in progress 11,377 9,247 Property, plant, and equipment, gross $ 61,723 $ 58,595 Accumulated depreciation (37,886) (36,051) Property, plant, and equipment, net $ 23,837 $ 22,544 During the fiscal year ended September 30, 2020, the Company entered into agreements to sell equipment and these assets were reclassified to assets held for sale. The balance as of March 31, 2022 and September 30, 2021 was $0.7 million and $1.2 million, respectively. During the three months ended March 31, 2022 and 2021, the Company sold certain equipment and recognized a (gain) loss on sale of assets of $(0.8) million and $0.2 million, respectively. During the six months ended March 31, 2022 and 2021, the Company sold certain equipment and recognized a (gain) loss on sale of assets of $(0.6) million and $0.2 million, respectively. Geographical Concentrations Long-lived assets consist of land, building, property, plant, and equipment. As of March 31, 2022 and September 30, 2021, 97% and 96%, respectively, of our long-lived assets were located in the United States. The remaining long-lived assets are primarily located in China. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities consisted of the following: As of (in thousands) March 31, 2022 September 30, 2021 Compensation $ 5,028 $ 7,192 Warranty 1,112 1,125 Legal expenses and other professional fees 370 152 Contract liabilities 582 364 Income and other taxes — 104 Severance and restructuring accruals 845 — Deferred revenue 674 4 Litigation settlement 575 70 Other 1,284 925 Accrued expenses and other current liabilities $ 10,470 $ 9,936 |
Credit Facilities and Debt
Credit Facilities and Debt | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Credit Facilities and Debt | Credit Facility and Debt Credit Facility On November 11, 2010, we entered into a Credit and Security Agreement (as amended to date, the “Credit Facility”) with Wells Fargo Bank, N.A. ("Wells Fargo"). The Credit Facility is secured by the Company’s assets and is subject to a borrowing base formula based on the Company’s eligible accounts receivable, inventory, and machinery and equipment accounts. In February 2022, we entered into an extension wherein the Credit Facility is to mature in May 2022. The Credit Facility currently provides us with a revolving credit line of up to $15.0 million at an interest rate equal to LIBOR plus 1.75%, subject to a borrowing base formula, that can be used for working capital requirements, letters of credit, acquisitions, and other general corporate purposes subject to a requirement, for certain specific uses, that the Company has liquidity of at least $25.0 million after such use. The Credit Facility requires us to maintain (a) liquidity of at least $10.0 million and (b) excess availability of at least $1.0 million. |
Income and Other Taxes
Income and Other Taxes | 6 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income and Other Taxes | Income and Other Taxes During the three months ended March 31, 2022 and 2021, the Company recorded an income tax benefit of $117 thousand and income tax expense of $82 thousand, respectively. Income tax benefit during the three months ended March 31, 2022 is composed primarily of state minimum taxes. Income tax expense during the three months ended March 31, 2021 is composed primarily of state tax expense which is driven by the State of California's temporary suspension of net operating loss ("NOL") utilization. During the six months ended March 31, 2022 and 2021, the Company recorded an income tax benefit of $2 thousand and income tax expense of $208 thousand. Income tax benefit for the six months ended March 31, 2022 is composed primarily of state minimum taxes. Income tax expense for the six months ended March 31, 2021 is composed primarily of state tax expense which is driven by the State of California's temporary suspension of NOL utilization. For the three months ended March 31, 2022 and 2021 the effective tax rate on continuing operations was (5.0)% and 1.8%, respectively. For the six months ended March 31, 2022 and 2021 the effective tax rate on continuing operations was 1.1% and 2.9%, respectively. The tax rate for the three and six months ended March 31, 2022 is primarily driven by the state minimum taxes. The Company uses estimates to forecast the results from continuing operations for the current fiscal year as well as permanent differences between book and tax accounting. We have not provided for income taxes on non-U.S. subsidiaries’ undistributed earnings as of March 31, 2022 because we plan to indefinitely reinvest the unremitted earnings of our non-U.S. subsidiaries and all of our non-U.S. subsidiaries historically have negative earnings and profits. All deferred tax assets have a full valuation allowance as of March 31, 2022. On a quarterly basis, the Company evaluates the positive and negative evidence to assess whether the more likely than not criteria has been satisfied in determining whether there will be further adjustments to the valuation allowance. As of March 31, 2022 and September 30, 2021, we had no uncertain tax benefit reserved and no interest and penalties accrued as tax liabilities on our balance sheet. During the three and six months ended March 31, 2022 and 2021, there were no material increases or decreases in unrecognized tax benefits. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications We have agreed to indemnify certain customers against claims of infringement of intellectual property rights of others in our sales contracts with these customers. Historically, we have not paid any claims under these customer indemnification obligations. We enter into indemnification agreements with each of our directors and executive officers pursuant to which we agree to indemnify them for certain potential expenses and liabilities arising from their status as a director or executive officer of the Company. We maintain directors and officers insurance, which covers certain liabilities relating to our obligation to indemnify our directors and executive officers in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular claim. Legal Proceedings We are subject to various legal proceedings, claims, and litigation, either asserted or unasserted, that arise in the ordinary course of business. The outcome of these matters is currently not determinable and we are unable to estimate a range of loss, should a loss occur, from these proceedings. The ultimate outcome of legal proceedings involves judgments, estimates, and inherent uncertainties and the results of these matters cannot be predicted with certainty. Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Should we fail to prevail in any legal matter, or should several legal matters be resolved against the Company in the same reporting period, then the financial results of that particular reporting period could be materially affected. Intellectual Property Lawsuits We protect our proprietary technology by applying for patents where appropriate and, in other cases, by preserving the technology, related know-how, and information as trade secrets. The success and competitive position of our product lines are impacted by our ability to obtain intellectual property protection for our research and development efforts. We have, from time to time, exchanged correspondence with third parties regarding the assertion of patent or other intellectual property rights in connection with certain of our products and processes. Resilience Litigation In February 2021, Resilience Capital (“Resilience”) filed a complaint against us with the Delaware Chancery Court containing claims arising from the February 2020 sale of SDI’s real property (the “Concord Property Sale”) located in Concord, California (the “Concord Real Property”) to Eagle Rock Holdings, LP (“Buyer”) and that certain Single-Tenant Triple Net Lease, dated as of February 10, 2020, entered into by and between SDI and the Buyer, pursuant to which SDI leased from the Buyer the Concord Real Property for a 15 year term. The Resilience complaint seeks, among other items, (a) a declaration that the Concord Property Sale included a non-cash component; (b) a decree requiring us and Resilience to follow the appraisal requirements set forth in that certain Purchase and Sale Agreement (the "SDI Purchase Agreement"), dated as of June 7, 2019, by and among the Company, The Resilience Fund IV, L.P., The Resilience Fund IV-A, L.P., Aerospace Newco Holdings, Inc. and Ember Acquisition Sub, Inc.; (c) recovery of Resilience’s costs and expenses; and (d) pre- and post-judgment interest. In April 2021, we filed with the Delaware Chancery Court our answer to the Resilience complaint and counterclaims against Resilience, in which we are seeking, among other items, (a) dismissal of the Resilience complaint and/or granting of judgment in favor of EMCORE with respect to the Resilience complaint, (b) entering final judgment against Resilience awarding damages to us for Resilience’s fraud and breaches of the SDI Purchase Agreement in an amount to be proven at trial and not less than $1,565,000, (c) a judicial determination of the respective rights and duties of us and Resilience under the SDI Purchase Agreement, (d) an award to us of costs and expenses and (e) pre- and post-judgment interest. We believe that the claims made by Resilience in its complaint are without merit and we intend to vigorously defend ourselves against them. |
Equity
Equity | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity | Equity Equity Plans We provide long-term incentives to eligible officers, directors, and employees in the form of equity-based awards. We maintain three equity incentive compensation plans, collectively described as our “Equity Plans”: • the 2010 Equity Incentive Plan, • the 2012 Equity Incentive Plan, and • the 2019 Equity Incentive Plan. We issue new shares of common stock to satisfy awards granted under our Equity Plans. In March 2022, our shareholders approved the Amended and Restated EMCORE Corporation 2019 Equity Incentive Plan, which was adopted by the Company’s Board of Directors in December 2021, and increased the maximum number of shares of the Company’s common stock that may be issued or transferred pursuant to awards under the 2019 Equity Incentive Plan by an additional 1.9 million shares. Stock-Based Compensation The following table sets forth stock-based compensation expense by award type: For the Three Months Ended March 31, For the Six Months Ended March 31, (in thousands) 2022 2021 2022 2021 Employee stock options $ — $ 1 $ — $ 2 RSUs and RSAs 549 501 1,103 932 PSUs and PRSAs 487 269 894 586 ESPP — 84 — 173 Outside director equity awards and fees in common stock 108 76 235 141 Total stock-based compensation expense $ 1,144 $ 931 $ 2,232 $ 1,834 The following table sets forth stock-based compensation expense by expense type: For the Three Months Ended March 31, For the Six Months Ended March 31, (in thousands) 2022 2021 2022 2021 Cost of revenue $ 178 $ 203 $ 329 $ 344 Selling, general, and administrative 781 519 1,536 1,078 Research and development 185 209 367 412 Total stock-based compensation expense $ 1,144 $ 931 $ 2,232 $ 1,834 401(k) Plan We have a savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under this savings plan, participating employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. Since June 2015, all employer contributions are made in cash. During each of the three months ended March 31, 2022 and 2021, our matching contribution in cash was $0.3 million. During each of the six months ended March 31, 2022 and 2021, our matching contribution in cash was $0.6 million. Income Per Share The following table sets forth the computation of basic and diluted net income per share: For the Three Months Ended March 31, For the Six Months Ended March 31, (in thousands, except per share data) 2022 2021 2022 2021 Numerator Net (loss) income $ (2,225) $ 4,384 $ 189 $ 6,953 Denominator Weighted average number of shares outstanding - basic 37,217 32,968 37,082 31,219 Effect of dilutive securities Stock options — 6 4 2 PSUs, RSUs, and restricted stock — 1,477 1,298 1,271 Weighted average number of shares outstanding - diluted 37,217 34,451 38,384 32,492 Earnings per share - basic $ (0.06) $ 0.13 $ 0.01 $ 0.22 Earnings per share - diluted $ (0.06) $ 0.13 $ 0.01 $ 0.21 Weighted average antidilutive options, unvested restricted RSUs and RSAs, unvested PSUs and ESPP shares excluded from the computation 75 1,536 72 1,331 Basic earnings per share ("EPS") is computed by dividing net (loss) income for the period by the weighted-average number of common stock outstanding during the period. Diluted EPS is computed by dividing net (loss) income for the period by the weighted average number of common stock outstanding during the period, plus the dilutive effect of outstanding restricted stock units ("RSUs") and restricted stock awards ("RSAs"), performance stock units ("PSUs"), stock options, and shares issuable under the employee stock purchase plan ("ESPP") as applicable pursuant to the treasury stock method. Certain of the Company's outstanding share-based awards, noted in the table above, were excluded because they were anti-dilutive, but they could become dilutive in the future. Future Issuances As of March 31, 2022, we had common stock reserved for the following future issuances: Number of Common Stock Shares Available for Future Issuances Exercise of outstanding stock options 13,884 Unvested RSUs and RSAs 2,445,307 Unvested PSUs and PRSAs (at 200% maximum payout) 4,098,106 Issuance of stock-based awards under the Equity Plans 312,137 Purchases under the officer and director share purchase plan 88,741 Total reserved 6,958,175 |
Segment and Revenue Information
Segment and Revenue Information | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Revenue Information | Segment and Revenue Information Reportable Segments Reported below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker, the Chief Executive Officer, to assess performance and to allocate resources. We do not allocate sales and marketing, general and administrative expenses, or interest expense and interest income to our segments, because management does not include the information in its measurement of the performance of the operating segments. Also, a measure of segment assets and liabilities has not been provided to the Company's chief operating decision maker and therefore is not shown below. Information on reportable segments utilized by the chief operating decision maker is as follows: (in thousands) For the Three Months Ended March 31, For the Six Months Ended March 31, 2022 2021 2022 2021 Revenue Aerospace and Defense $ 9,006 $ 13,134 $ 18,906 $ 26,770 Broadband 23,644 25,272 55,980 45,062 Total revenue $ 32,650 $ 38,406 $ 74,886 $ 71,832 Segment income Aerospace and Defense gross profit $ 1,233 $ 3,775 $ 2,917 $ 7,875 Aerospace and Defense research and development expense 4,041 3,157 8,203 6,843 Aerospace and Defense segment profit $ (2,808) $ 618 $ (5,286) $ 1,032 Broadband gross profit $ 7,784 $ 10,859 $ 21,897 $ 19,331 Broadband research and development expense 494 614 959 1,224 Broadband segment profit $ 7,290 $ 10,245 $ 20,938 $ 18,107 Consolidated segment profit $ 4,482 $ 10,863 $ 15,652 $ 19,139 Unallocated expense Selling, general, and administrative $ 7,563 $ 6,062 $ 14,750 $ 11,860 Severance 20 — 1,318 — (Gain) loss on sale of assets (788) 218 (601) 189 Interest expense, net 12 49 23 98 Foreign exchange loss (gain) 17 68 (25) (169) Total unallocated expense $ 6,824 $ 6,397 $ 15,465 $ 11,978 (Loss) income before income tax benefit (expense) $ (2,342) $ 4,466 $ 187 $ 7,161 Product Categories Revenue is classified by major product category and is presented below: For the Three Months Ended March 31, (in thousands) 2022 % of 2021 % of Aerospace and Defense Navigation and Inertial Sensing $ 7,615 23 % $ 8,993 23 % Defense Optoelectronics 1,391 4 4,141 11 Broadband CATV Lasers and Transmitters 20,984 64 21,120 55 Chip Devices 1,113 3 841 2 Other Optical Products 1,547 5 3,311 9 Total revenue $ 32,650 100 % $ 38,406 100 % For the Six Months Ended March 31, (in thousands) 2022 % of 2021 % of Aerospace and Defense Navigation and Inertial Sensing $ 15,760 21 % $ 18,195 25 % Defense Optoelectronics 3,146 4 8,575 12 Broadband CATV Lasers and Transmitters 49,443 66 38,435 54 Chip Devices 2,181 3 1,584 2 Other Optical Products 4,356 6 5,043 7 Total revenue $ 74,886 100 % $ 71,832 100 % Geographical Concentration The following table sets forth revenue by geographic area based on our customers’ billing address: For the Three Months Ended March 31, For the Six Months Ended March 31, (in thousands) 2022 2021 2022 2021 United States and Canada $ 29,652 $ 33,106 $ 67,708 $ 62,452 Asia 1,728 4,145 4,814 7,170 Europe 936 558 1,756 1,214 Other 334 597 608 996 Total revenue $ 32,650 $ 38,406 $ 74,886 $ 71,832 Significant Customers Significant customers are defined as customers representing greater than 10% of consolidated revenue. Significant portions of the Company’s sales are concentrated among a limited number of customers. Revenue from two and three of our significant customers represented an aggregate of 62% and 68% of our consolidated revenue for the three months ended March 31, 2022 and 2021, respectively. Revenue from two and three of our significant customers represented an aggregate of 64% and 69% of our consolidated revenue for the six months ended March 31, 2022 and 2021, respectively. The percentage from significant customers decreased due to lower Aerospace and Defense revenue. The duration, severity, and future impact of the COVID-19 pandemic is highly uncertain and could result in significant disruptions to the business operations of the Company’s customers. If one or more of these significant customers significantly decreases their orders for the Company’s products, or if we are unable to deliver finished products to the customer in connection with such orders, the Company’s business could be materially and adversely affected. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn April 29, 2022, we completed the previously announced acquisition of the L3Harris Technologies, Inc. (“L3H”) Space and Navigation business (“S&N”) pursuant to that certain Sale Agreement, dated as of February 14, 2022 (as amended, the “Sale Agreement”), entered into by and among the Company, Ringo Acquisition Sub, Inc. and L3H, pursuant to which we acquired certain intellectual property, assets, and liabilities of S&N for aggregate consideration of approximately $5.0 million, exclusive of transaction costs and expenses and subject to certain post-closing working capital adjustments. In consideration of the recency of the completion of the purchase, we have not completed the initial accounting for the business combination and have not evaluated stand-alone acquiree revenue and earnings in the pre-acquistion period for supplemental pro-forma presentation and, accordingly have not included disclosure related to such items. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and notes required by U.S. GAAP for annual financial statements. In our opinion, the interim financial statements reflect all adjustments, which are all normal recurring adjustments, that are necessary to provide a fair presentation of the financial results for the interim periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for an entire fiscal year. The condensed consolidated balance sheet as of September 30, 2021 has been derived from the audited consolidated financial statements as of such date. For a more complete understanding of our business, financial position, operating results, cash flows, risk factors and other matters, please refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. |
Significant Accounting Policies and Estimates | Significant Accounting Policies and Estimates There have been no material changes in our significant accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We recently adopted the following accounting standards, which had the following impacts on our consolidated financial statements: In December 2019, the FASB issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing various exceptions, such as the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments in this update also simplify the accounting for income taxes related to income-based franchise taxes and require that an entity reflect enacted tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The new standard was effective for our fiscal year beginning October 1, 2021. The adoption of this new standard did not have a material impact on the condensed consolidated financial statements. Other accounting standards that have been issued or proposed by FASB and do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Legal Costs | Professional legal fees are expensed when incurred. We accrue for contingent losses when such losses are probable and reasonably estimable. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows: As of (in thousands) March 31, 2022 September 30, 2021 Cash $ 25,847 $ 16,547 Cash equivalents 55,081 55,074 Restricted cash 21 61 Total cash, cash equivalents, and restricted cash $ 80,949 $ 71,682 |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows: As of (in thousands) March 31, 2022 September 30, 2021 Cash $ 25,847 $ 16,547 Cash equivalents 55,081 55,074 Restricted cash 21 61 Total cash, cash equivalents, and restricted cash $ 80,949 $ 71,682 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Components of Accounts Receivable, net | The components of accounts receivable consisted of the following: As of (in thousands) March 31, 2022 September 30, 2021 Accounts receivable, gross $ 27,428 $ 32,109 Allowance for credit loss (225) (260) Accounts receivable, net $ 27,203 $ 31,849 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory consisted of the following: As of (in thousands) March 31, 2022 September 30, 2021 Raw materials $ 14,861 $ 16,146 Work in-process 9,864 11,410 Finished goods 3,324 4,753 Inventory $ 28,049 $ 32,309 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The components of property, plant, and equipment, net consisted of the following: As of (in thousands) March 31, 2022 September 30, 2021 Equipment $ 38,944 $ 37,985 Furniture and fixtures 1,125 1,125 Computer hardware and software 3,576 3,575 Leasehold improvements 6,701 6,663 Construction in progress 11,377 9,247 Property, plant, and equipment, gross $ 61,723 $ 58,595 Accumulated depreciation (37,886) (36,051) Property, plant, and equipment, net $ 23,837 $ 22,544 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Components of Accrued Expenses and Other Current Liabilities | The components of accrued expenses and other current liabilities consisted of the following: As of (in thousands) March 31, 2022 September 30, 2021 Compensation $ 5,028 $ 7,192 Warranty 1,112 1,125 Legal expenses and other professional fees 370 152 Contract liabilities 582 364 Income and other taxes — 104 Severance and restructuring accruals 845 — Deferred revenue 674 4 Litigation settlement 575 70 Other 1,284 925 Accrued expenses and other current liabilities $ 10,470 $ 9,936 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock-based Compensation Expense - By Award Type | The following table sets forth stock-based compensation expense by award type: For the Three Months Ended March 31, For the Six Months Ended March 31, (in thousands) 2022 2021 2022 2021 Employee stock options $ — $ 1 $ — $ 2 RSUs and RSAs 549 501 1,103 932 PSUs and PRSAs 487 269 894 586 ESPP — 84 — 173 Outside director equity awards and fees in common stock 108 76 235 141 Total stock-based compensation expense $ 1,144 $ 931 $ 2,232 $ 1,834 |
Schedule of Stock-based Compensation Expense - By Expense Type | The following table sets forth stock-based compensation expense by expense type: For the Three Months Ended March 31, For the Six Months Ended March 31, (in thousands) 2022 2021 2022 2021 Cost of revenue $ 178 $ 203 $ 329 $ 344 Selling, general, and administrative 781 519 1,536 1,078 Research and development 185 209 367 412 Total stock-based compensation expense $ 1,144 $ 931 $ 2,232 $ 1,834 |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net income per share: For the Three Months Ended March 31, For the Six Months Ended March 31, (in thousands, except per share data) 2022 2021 2022 2021 Numerator Net (loss) income $ (2,225) $ 4,384 $ 189 $ 6,953 Denominator Weighted average number of shares outstanding - basic 37,217 32,968 37,082 31,219 Effect of dilutive securities Stock options — 6 4 2 PSUs, RSUs, and restricted stock — 1,477 1,298 1,271 Weighted average number of shares outstanding - diluted 37,217 34,451 38,384 32,492 Earnings per share - basic $ (0.06) $ 0.13 $ 0.01 $ 0.22 Earnings per share - diluted $ (0.06) $ 0.13 $ 0.01 $ 0.21 Weighted average antidilutive options, unvested restricted RSUs and RSAs, unvested PSUs and ESPP shares excluded from the computation 75 1,536 72 1,331 |
Schedule of Common Stock Reserved for Future Issuances | As of March 31, 2022, we had common stock reserved for the following future issuances: Number of Common Stock Shares Available for Future Issuances Exercise of outstanding stock options 13,884 Unvested RSUs and RSAs 2,445,307 Unvested PSUs and PRSAs (at 200% maximum payout) 4,098,106 Issuance of stock-based awards under the Equity Plans 312,137 Purchases under the officer and director share purchase plan 88,741 Total reserved 6,958,175 |
Segment and Revenue Informati_2
Segment and Revenue Information (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment | Information on reportable segments utilized by the chief operating decision maker is as follows: (in thousands) For the Three Months Ended March 31, For the Six Months Ended March 31, 2022 2021 2022 2021 Revenue Aerospace and Defense $ 9,006 $ 13,134 $ 18,906 $ 26,770 Broadband 23,644 25,272 55,980 45,062 Total revenue $ 32,650 $ 38,406 $ 74,886 $ 71,832 Segment income Aerospace and Defense gross profit $ 1,233 $ 3,775 $ 2,917 $ 7,875 Aerospace and Defense research and development expense 4,041 3,157 8,203 6,843 Aerospace and Defense segment profit $ (2,808) $ 618 $ (5,286) $ 1,032 Broadband gross profit $ 7,784 $ 10,859 $ 21,897 $ 19,331 Broadband research and development expense 494 614 959 1,224 Broadband segment profit $ 7,290 $ 10,245 $ 20,938 $ 18,107 Consolidated segment profit $ 4,482 $ 10,863 $ 15,652 $ 19,139 Unallocated expense Selling, general, and administrative $ 7,563 $ 6,062 $ 14,750 $ 11,860 Severance 20 — 1,318 — (Gain) loss on sale of assets (788) 218 (601) 189 Interest expense, net 12 49 23 98 Foreign exchange loss (gain) 17 68 (25) (169) Total unallocated expense $ 6,824 $ 6,397 $ 15,465 $ 11,978 (Loss) income before income tax benefit (expense) $ (2,342) $ 4,466 $ 187 $ 7,161 |
Schedule of Revenue by Major Product Category | Revenue is classified by major product category and is presented below: For the Three Months Ended March 31, (in thousands) 2022 % of 2021 % of Aerospace and Defense Navigation and Inertial Sensing $ 7,615 23 % $ 8,993 23 % Defense Optoelectronics 1,391 4 4,141 11 Broadband CATV Lasers and Transmitters 20,984 64 21,120 55 Chip Devices 1,113 3 841 2 Other Optical Products 1,547 5 3,311 9 Total revenue $ 32,650 100 % $ 38,406 100 % For the Six Months Ended March 31, (in thousands) 2022 % of 2021 % of Aerospace and Defense Navigation and Inertial Sensing $ 15,760 21 % $ 18,195 25 % Defense Optoelectronics 3,146 4 8,575 12 Broadband CATV Lasers and Transmitters 49,443 66 38,435 54 Chip Devices 2,181 3 1,584 2 Other Optical Products 4,356 6 5,043 7 Total revenue $ 74,886 100 % $ 71,832 100 % |
Schedule of Revenue by Geographic Region | The following table sets forth revenue by geographic area based on our customers’ billing address: For the Three Months Ended March 31, For the Six Months Ended March 31, (in thousands) 2022 2021 2022 2021 United States and Canada $ 29,652 $ 33,106 $ 67,708 $ 62,452 Asia 1,728 4,145 4,814 7,170 Europe 936 558 1,756 1,214 Other 334 597 608 996 Total revenue $ 32,650 $ 38,406 $ 74,886 $ 71,832 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 25,847 | $ 16,547 | ||
Cash equivalents | 55,081 | 55,074 | ||
Restricted cash | 21 | 61 | ||
Total cash, cash equivalents, and restricted cash | $ 80,949 | $ 71,682 | $ 65,281 | $ 30,538 |
Accounts Receivable, net - Sche
Accounts Receivable, net - Schedule of Components of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 27,428 | $ 32,109 |
Allowance for credit loss | (225) | (260) |
Accounts receivable, net | $ 27,203 | $ 31,849 |
Inventory - Schedule of Compone
Inventory - Schedule of Components of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 14,861 | $ 16,146 |
Work in-process | 9,864 | 11,410 |
Finished goods | 3,324 | 4,753 |
Inventory | $ 28,049 | $ 32,309 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 61,723 | $ 58,595 |
Accumulated depreciation | (37,886) | (36,051) |
Property, plant, and equipment, net | 23,837 | 22,544 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 38,944 | 37,985 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 1,125 | 1,125 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 3,576 | 3,575 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 6,701 | 6,663 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 11,377 | $ 9,247 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||||||
(Gain) loss on sale of assets | $ (788) | $ 218 | $ (601) | $ 189 | ||
United States | Long-lived Assets | Geographic Concentration Risk | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Concentration risk, percentage | 97.00% | 96.00% | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, and equipment held for sale | $ 700 | $ 700 | $ 1,200 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Payables and Accruals [Abstract] | ||
Compensation | $ 5,028 | $ 7,192 |
Warranty | 1,112 | 1,125 |
Legal expenses and other professional fees | 370 | 152 |
Contract liabilities | 582 | 364 |
Income and other taxes | 0 | 104 |
Severance and restructuring accruals | 845 | 0 |
Deferred revenue | 674 | 4 |
Litigation settlement | 575 | 70 |
Other | 1,284 | 925 |
Accrued expenses and other current liabilities | $ 10,470 | $ 9,936 |
Credit Facilities and Debt - Na
Credit Facilities and Debt - Narrative (Details) - Revolving Credit Facility | 6 Months Ended |
Mar. 31, 2022USD ($)credit | |
Line of Credit Facility [Line Items] | |
Liquidity requirement, minimum after specific uses (at least) | $ 25,000,000 |
Liquidity requirement, minimum (at least) | 10,000,000 |
Excess availability requirement, minimum (at least) | 1,000,000 |
Long-term line of credit | 0 |
Standby letters of credit, total amount outstanding | 500,000 |
Remaining borrowing capacity | 6,100,000 |
Tenth Amendment | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 15,000,000 |
Tenth Amendment | London Interbank Offered Rate (LIBOR) | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.75% |
LIBOR Rate Loan | |
Line of Credit Facility [Line Items] | |
Number of standby letters of credit outstanding | credit | 1 |
Income and Other Taxes - Narrat
Income and Other Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Income tax benefit (expense) | $ 117,000 | $ (82,000) | $ 2,000 | $ (208,000) | |
Effective tax rate on continuing operations | 5.00% | 1.80% | 1.10% | 2.90% | |
Uncertain tax benefit reserve | $ 0 | $ 0 | $ 0 | ||
Interest and penalties accrued as tax liabilities | 0 | 0 | $ 0 | ||
Uncertain tax reserve, period increase (decrease) | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Resilience Litigation - USD ($) $ in Thousands | 1 Months Ended | |
Apr. 30, 2021 | Feb. 10, 2020 | |
Resilience Capital | ||
Loss Contingencies [Line Items] | ||
Damages sought value (not less than) | $ 1,565 | |
Concord Property | ||
Loss Contingencies [Line Items] | ||
Lease length in years | 15 years |
Equity - Narrative (Details)
Equity - Narrative (Details) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022planshares | Mar. 31, 2022USD ($)plan | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)plan | Mar. 31, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of equity incentive compensation plans maintained by the company | plan | 3 | 3 | 3 | ||
Matching contribution | $ | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.6 | |
2019 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional number of shares authorized for the plan (in shares) | shares | 1.9 |
Equity - Schedule of Stock-base
Equity - Schedule of Stock-based Compensation Expense - by Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,144 | $ 931 | $ 2,232 | $ 1,834 |
Employee stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0 | 1 | 0 | 2 |
RSUs and RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 549 | 501 | 1,103 | 932 |
PSUs and PRSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 487 | 269 | 894 | 586 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0 | 84 | 0 | 173 |
Outside director equity awards and fees in common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 108 | $ 76 | $ 235 | $ 141 |
Equity - Schedule of Stock-ba_2
Equity - Schedule of Stock-based Compensation Expense - by Expense Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,144 | $ 931 | $ 2,232 | $ 1,834 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 178 | 203 | 329 | 344 |
Selling, general, and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 781 | 519 | 1,536 | 1,078 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 185 | $ 209 | $ 367 | $ 412 |
Equity - Schedule of Earnings p
Equity - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||||
Net (loss) income | $ (2,225) | $ 4,384 | $ 189 | $ 6,953 |
Denominator | ||||
Weighted average number of shares outstanding - basic (in shares) | 37,217 | 32,968 | 37,082 | 31,219 |
Effect of dilutive securities | ||||
Weighted average number of shares outstanding - diluted (in shares) | 37,217 | 34,451 | 38,384 | 32,492 |
Earnings per share - basic (in dollars per share) | $ (0.06) | $ 0.13 | $ 0.01 | $ 0.22 |
Earnings per share - diluted (in dollars per share) | $ (0.06) | $ 0.13 | $ 0.01 | $ 0.21 |
Weighted average antidilutive options, unvested restricted RSUs and RSAs, unvested PSUs and ESPP shares excluded from the computation (in shares) | 75 | 1,536 | 72 | 1,331 |
Stock options | ||||
Effect of dilutive securities | ||||
Dilutive options outstanding, unvested stock units and unvested stock awards (in shares) | 0 | 6 | 4 | 2 |
PSUs, RSUs, and restricted stock | ||||
Effect of dilutive securities | ||||
Dilutive options outstanding, unvested stock units and unvested stock awards (in shares) | 0 | 1,477 | 1,298 | 1,271 |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Reserved for Future Issuances (Details) | Mar. 31, 2022shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise of outstanding stock options (in shares) | 13,884 |
Issuance of stock-based awards under the Equity Plans (in shares) | 312,137 |
Purchases under the officer and director share purchase plan (in shares) | 88,741 |
Total reserved (in shares) | 6,958,175 |
RSUs and RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested restricted stock units and awards (in shares) | 2,445,307 |
PSUs and PRSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested award potential, percentage | 200.00% |
Unvested performance stock units and awards (in shares) | 4,098,106 |
Segment and Revenue Informati_3
Segment and Revenue Information - Schedule of Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 32,650 | $ 38,406 | $ 74,886 | $ 71,832 |
Gross profit | 9,017 | 14,634 | 24,814 | 27,206 |
R&D expense | 4,535 | 3,771 | 9,162 | 8,067 |
Operating (loss) income | (2,313) | 4,583 | 185 | 7,090 |
Unallocated expense | ||||
Selling, general, and administrative | 7,563 | 6,062 | 14,750 | 11,860 |
Severance | 20 | 0 | 1,318 | 0 |
(Gain) loss on sale of assets | (788) | 218 | (601) | 189 |
Interest expense, net | 12 | 49 | 23 | 98 |
Foreign exchange (loss) gain | 17 | 68 | (25) | (169) |
Total unallocated expense | 6,824 | 6,397 | 15,465 | 11,978 |
(Loss) income before income tax benefit (expense) | (2,342) | 4,466 | 187 | 7,161 |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 32,650 | 38,406 | 74,886 | 71,832 |
Operating (loss) income | 4,482 | 10,863 | 15,652 | 19,139 |
Operating segments | Aerospace And Defense | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 9,006 | 13,134 | 18,906 | 26,770 |
Gross profit | 1,233 | 3,775 | 2,917 | 7,875 |
R&D expense | 4,041 | 3,157 | 8,203 | 6,843 |
Operating (loss) income | (2,808) | 618 | (5,286) | 1,032 |
Operating segments | Broadband | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 23,644 | 25,272 | 55,980 | 45,062 |
Gross profit | 7,784 | 10,859 | 21,897 | 19,331 |
R&D expense | 494 | 614 | 959 | 1,224 |
Operating (loss) income | $ 7,290 | $ 10,245 | $ 20,938 | $ 18,107 |
Segment and Revenue Informati_4
Segment and Revenue Information - Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 32,650 | $ 38,406 | $ 74,886 | $ 71,832 |
Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Navigation and Inertial Sensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 7,615 | $ 8,993 | $ 15,760 | $ 18,195 |
Navigation and Inertial Sensing | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 23.00% | 23.00% | 21.00% | 25.00% |
Defense Optoelectronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,391 | $ 4,141 | $ 3,146 | $ 8,575 |
Defense Optoelectronics | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 4.00% | 11.00% | 4.00% | 12.00% |
CATV Lasers and Transmitters | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 20,984 | $ 21,120 | $ 49,443 | $ 38,435 |
CATV Lasers and Transmitters | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 64.00% | 55.00% | 66.00% | 54.00% |
Chip Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,113 | $ 841 | $ 2,181 | $ 1,584 |
Chip Devices | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 3.00% | 2.00% | 3.00% | 2.00% |
Other Optical Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,547 | $ 3,311 | $ 4,356 | $ 5,043 |
Other Optical Products | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 5.00% | 9.00% | 6.00% | 7.00% |
Segment and Revenue Informati_5
Segment and Revenue Information - Schedule of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Segment revenue | $ 32,650 | $ 38,406 | $ 74,886 | $ 71,832 |
United States and Canada | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 29,652 | 33,106 | 67,708 | 62,452 |
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 1,728 | 4,145 | 4,814 | 7,170 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | 936 | 558 | 1,756 | 1,214 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenue | $ 334 | $ 597 | $ 608 | $ 996 |
Segment and Revenue Informati_6
Segment and Revenue Information - Narrative (Details) - Sales Revenue, Segment - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Two Significant Customers | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Concentration risk, percentage | 62.00% | 64.00% | ||
Three Significant Customers | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Concentration risk, percentage | 68.00% | 69.00% |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Apr. 29, 2022USD ($) |
L3Harris Technologies, Inc. | Subsequent Event | |
Subsequent Event [Line Items] | |
Aggregate consideration | $ 5 |