Crossroads Systems Inactive 10-Q7 Mar 142014 Q1 Quarterly reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
Document And Entity Information	Jan. 31, 2014	Mar. 07, 2014
Document Information [Line Items]	'	'
Entity Registrant Name	'CROSSROADS SYSTEMS INC	'
Entity Central Index Key	'0001093207	'
Current Fiscal Year End Date	'--10-31	'
Entity Filer Category	'Smaller Reporting Company	'
Trading Symbol	'CRDS	'
Entity Common Stock, Shares Outstanding	'	12,883,023
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Jan-14	'
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jan. 31, 2014	Oct. 31, 2013
In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$7,998	$7,795
Accounts receivable, net of allowance for doubtful accounts of $94 and $100, respectively	3,001	2,301
Inventory	323	313
Prepaid expenses and other current assets	628	694
Total current assets	11,950	11,103
Property and equipment, net	841	1,031
Other assets	180	256
Total assets	12,971	12,390
Current liabilities:	'	'
Accounts payable	904	1,066
Accrued expenses	1,394	2,095
Deferred revenue	1,215	1,090
Current portion of long term debt, net of debt discount	2,763	1,605
Total current liabilities	6,276	5,856
Long term debt, net of debt discount	5,902	6,984
Long term derivative liability	3,957	772
Other long term liabilities	384	299
Commitments and contingencies (See Note 7)	'	'
Convertible preferred stock, $0.001 par value, 25,000,000 shares authorized, 4,231,154 and 3,783,697 shares issued and outstanding, respectively, net	5,720	6,394
Stockholders' deficit:	'	'
Common stock, $0.001 par value, 75,000,000 shares authorized, 11,949,937 and 12,883,023 shares issued and outstanding, respectively	13	12
Additional paid-in capital	211,044	208,702
Accumulated other comprehensive loss	-50	-51
Accumulated deficit	-220,275	-216,578
Total stockholders' deficit	-9,268	-7,915
Total liabilities and stockholders' deficit	$12,971	$12,390

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Jan. 31, 2014	Oct. 31, 2013
In Thousands, except Share data, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Allowance for doubtful accounts (in dollars)	$100	$94
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Preferred Stock, Shares Issued	3,783,697	4,231,154
Preferred Stock, Shares Outstanding	3,783,697	4,231,154
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	12,883,023	11,949,937
Common stock, shares outstanding	12,883,023	11,949,937

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013
Revenue:	'	'
Product	$1,230	$1,918
IP license, royalty and other	2,895	1,633
Total revenue	4,125	3,551
Cost of revenue:	'	'
Product	236	194
IP license, royalty and other	383	754
Total cost of revenue	619	948
Gross profit	3,506	2,603
Operating expenses:	'	'
Sales and marketing	1,032	1,960
Research and development	1,531	2,857
General and administrative	1,338	876
Total operating expenses	3,901	5,693
Loss from operations	-395	-3,090
Gain on settlement	1,050	0
(Loss) income before interest and derivative expense	655	-3,090
Other expense:	'	'
Interest expense	-587	-54
Change in value of derivative liability	-3,400	0
Other expense	0	-1
Net loss	-3,332	-3,145
Dividends attributable to preferred stock	-155	0
Net loss available to common stockholders, basic and diluted	($3,487)	($3,145)
Net loss per share available to common stockholders, basic and diluted	($0.28)	($0.27)
Shares used in computing net loss per share:	'	'
Available to common stockholders, basic and diluted	12,368,715	11,819,003

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013
Cash flows from operating activities:	'	'
Net loss	($3,332)	($3,145)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation	198	201
Loss on change in value of derivative liability	3,400	0
Amortization of debt discount	341	0
Stock-based compensation	548	383
Provision for doubtful accounts receivable	6	-5
Changes in assets and liabilities:	'	'
Accounts receivable	-707	570
Inventory	-10	-29
Prepaid expenses and other assets	45	-37
Accounts payable	-161	-102
Accrued expenses	-606	-706
Deferred revenue	213	264
Net cash used in operating activities	-65	-2,606
Cash flows from investing activities:	'	'
Purchase of property and equipment	-9	-119
Maturity of held-to-maturity investments	0	0
Net cash used in investing activities	-9	-119
Cash flows from financing activities:	'	'
Proceeds from issuance of common stock, net of expenses	488	2
Repayment of debt	-208	-1,720
Net cash (used in) provided by financing activities	280	-1,718
Effect of foreign exchange rate on cash and cash equivalents	-3	4
Net (decrease) increase in cash and cash equivalents	203	-4,439
Cash and cash equivalents, beginning of period	7,795	6,895
Cash and cash equivalents, end of period	7,998	2,456
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	256	45
Cash paid for income taxes	0	1
Supplemental disclosure of non cash financing activities:	'	'
Conversion of preferred stock to common stock	674	0
Common stock dividends issued to preferred shareholders	366	0
Conversion of derivative liability to equity	$215	$0

ORGANIZATION_AND_BASIS_OF_PRES

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION	Jan. 31, 2014
Organization, Consolidation and Presentation Of Financial Statements [Abstract]	'
Basis of Accounting [Text Block]	'
	1. ORGANIZATION AND BASIS OF PRESENTATION

	The accompanying condensed consolidated financial statements include the accounts of Crossroads Systems, Inc. and its wholly-owned subsidiaries (“Crossroads” or the “Company”). Headquartered in Austin, Texas, Crossroads Systems, a Delaware corporation, is a global provider of data archive solutions. Through the innovative use of new technologies, Crossroads delivers customer-driven solutions that enable proactive data security, advanced data archiving, optimized performance and significant cost-savings.

	The accompanying unaudited condensed consolidated financial statements of Crossroads Systems, Inc. have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with United States generally accepted accounting principles (“GAAP”). The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto together with management’s discussion and analysis of financial condition and results of operations contained in the Company’s 2013 Annual Report on Form 10-K filed on January 23, 2014 (“2013 Form 10-K”). In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of the Company at October 31, 2013 and January 31, 2014, the results of its operations for the three months ended January 31, 2013 and 2014, and its cash flows for the three months ended January 31, 2013 and 2014. The results of operations for the periods presented are not necessarily indicative of results that may be expected for the year ending October 31, 2014.

	Principles of consolidation and presentation

	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation.

	The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has accumulated significant losses as it has been developing its current and next generation products. The Company believes that cash flow from operations, customer reimbursed expenses, and proceeds from the sale of equity will be sufficient to fund the anticipated operations for fiscal 2014. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern for a reasonable period of time.

	The Company’s investment in KIP CR P1 LP (to which the Company refers as the partnership), of which the Company is a limited partner and of which an affiliate of Fortress Investment Group LLC is the general partner, is accounted for using the equity method. The current investment balance is nominal at January 31, 2014.

	Use of Estimates

	The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements.

	Computation of Net Loss Per Share

	Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by giving effect to all dilutive potential common shares that were outstanding during the period. Basic earnings per share excludes the dilutive effect of common stock equivalents such as stock options and warrants, while earnings per share, assuming dilution, includes such dilutive effects. Future weighted-average shares outstanding calculations will be impacted by the following factors, among others: (i) the ongoing issuance of common stock associated with stock option and warrant exercises; (ii) any fluctuations in the Company’s stock price, which could cause changes in the number of common stock equivalents included in the earnings per share, assuming dilution computation; and (iii) the issuance of common stock to effect business combinations should the Company enter into such transactions.

	The Company has excluded all outstanding common stock equivalents from the calculation of diluted net loss per share because all such common stock equivalents are antidilutive for all periods presented. The total number of common stock equivalents excluded from the diluted net loss per common share calculation was 3,178,929 and 11,932,823 for the three months ended January 31, 2013 and 2014, respectively. The dilutive common stock equivalents for the three months ended January 31, 2014 include warrants to purchase 4,582,416 shares of common stock, 3,783,697 shares of preferred stock, which are excluded until converted to common shares (Note 8), and stock options to purchase 3,566,710 shares of common stock.

	Net loss available to common stockholders is calculated by deducting from net income preferred dividends paid and accrued of $ 0.2 million.

	Contracts to Modify or Customize Products

	The Company periodically enters into contracts with certain customers to significantly modify or customize products. In accounting for such arrangements, the Company first looks to the guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 985-605, Software - Revenue Recognition (“ASC 985-605”), and then ASC Subtopic 605-25, Revenue Recognition – Multiple-Element Arrangements, to determine the appropriate accounting elements in the arrangement. The Company then considers the appropriate recognition model for each accounting element based on the nature of the element and applies the guidance in ASC Subtopic 605-35, Revenue Recognition – Construction-Type and Production-Type Contracts, ASC Subtopic 985-60, ASC Subtopic 605-15, Revenue Recognition – Products, or ASC Subtopic 605-20, Revenue Recognition – Services, as applicable. Amounts allocated to the modification/customization service element are evaluated for classification in the consolidated statement of operations as either revenue or reduction of research and development expense based on the following considerations: whether and in what circumstances the consideration received is refundable, ownership of the final product and intellectual property rights to develop the product, and exclusivity of the final product.

	Recently Issued Accounting Pronouncements

	On March 4, 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830) Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”). ASU 2013-05 updates accounting guidance related to the application of consolidation guidance and foreign currency matters. This guidance resolves the diversity in practice about what guidance applies to the release of the cumulative translation adjustment into net income. This guidance is effective for interim and annual periods beginning after December 15, 2013. The Company anticipates adopting ASU 2013-05 beginning November 1, 2014. The Company does not anticipate that these changes will have a material impact on its consolidated financial statements or disclosures.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
FAIR VALUE MEASUREMENTS	Jan. 31, 2014
Fair Value Disclosures [Abstract]	'
Fair Value Disclosures [Text Block]	'
		2	FAIR VALUE MEASUREMENTS

	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is applied as follows:

	Level 1 – Valuations based on quoted prices for identical assets and liabilities in active markets.

	Level 2 – Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

	Level 3 – Valuations based on unobservable inputs reflecting management’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

	As of October 31, 2013 and January 31, 2014, the fair value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximates book value due to the short maturity of these instruments. Based upon borrowing rates currently available to the Company for loans with similar terms, the principal balance of its debt obligations approximates fair value. The following table represents the Company’s fair value hierarchy for its financial instruments measured at fair value on a recurring basis as of January 31, 2014 (in thousands):

	Fair Value Table

					Quoted Prices in Active		Significant Other		Significant
			Balance at January		Markets for Identical		Observable Inputs		Unobservable Inputs
			31, 2014		Liabilities (Level 1)		(Level 2)		(Level 3)

	Derivative liability		$	3,957	$	-	$	-	$	3,957

			$	3,957	$	-	$	-	$	3,957

	In accordance with ASC 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity as approved by shareholders, the convertible preferred shares are accounted for net outside of stockholders’ equity at $5,720,000 with the warrants accounted for as liabilities at their fair value of $3,957,000 as of January 31, 2014. The value of the derivative warrant liability is re-measured at each reporting period with changes in fair value recorded as “Change in value of derivative liability”. To derive an estimate of the fair value of these warrants, the Company utilized a dynamic Black Scholes Merton formula that computes the impact of share dilution upon the exercise of the warrant shares. This process relies upon inputs such as shares outstanding, estimated stock prices, strike price, and volatility assumptions to dynamically adjust the payoff of the warrants in the presence of the dilution effect. In the event the convertible preferred shares are redeemed, any redemption price in excess of the carrying amount of the convertible preferred stock would be treated as a dividend. The changes in liabilities measured using significant unobservable inputs for three months ended January 31, 2014 was as follows (in thousands) (see Note 8 explaining the revaluation of Series-F Preferred Stock and Warrants):

	Level 3 Roll-forward		Derivative Liability
	Balance October 31, 2013		$	772
	Change in fair value of derivative liability			3,400
	Derivative liability converted to equity upon exercise			-215
	Balance January 31, 2014 (Unaudited)		$	3,957

	During the three months ended January 31, 2014 there were approximately 153,000 Series-F warrants exercised.

INVENTORY

INVENTORY	3 Months Ended
INVENTORY	Jan. 31, 2014
Inventory Disclosure [Abstract]	'
Inventory Disclosure [Text Block]	'
	3. INVENTORY

	Inventory, net consists of the following (in thousands):

		October 31,		January 31,
		2013		2014
				(Unaudited)

	Raw materials	$	204	$	222
	Finished goods		109		101
		$	313	$	323

PROPERTY_AND_EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
PROPERTY AND EQUIPMENT	Jan. 31, 2014
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment Disclosure [Text Block]	'
	4. PROPERTY AND EQUIPMENT

	Property and equipment, net consist of the following (in thousands, except number of years):

				October 31,		January 31,
				2013		2014
		Life (years)				(Unaudited)
	Equipment	3-Jan	$	18,390	$	18,373
	Furniture and fixtures	5		789		788
	Leasehold improvements	5		576		576
				19,755		19,737
	Less: Accumulated depreciation			-18,724		-18,896
			$	1,031	$	841

	Depreciation expense was approximately $201,000 and $198,000 for three months ended January 31, 2013 and 2014, respectively.

ACCRUED_EXPENSES_AND_DEFERRED_

ACCRUED EXPENSES AND DEFERRED REVENUE	3 Months Ended
ACCRUED EXPENSES AND DEFERRED REVENUE	Jan. 31, 2014
Payables and Accruals [Abstract]	'
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	'
	5. ACCRUED EXPENSES AND DEFERRED REVENUE

	Accrued expenses consist of the following (in thousands):

		October 31,		January 31,
		2013		2014
				(Unaudited)

	Payroll related	$	1,470	$	730
	Professional services		359		487
	Warranty reserve		41		41
	Other		225		136
		$	2,095	$	1,394

	Included in payroll related accrued expenses as of October 31, 2013 was $202,000 related to bonus compensation, $135,000 of which was settled in January 2014 with 66,081 shares of common stock. Also included in payroll related accrued expenses as of October 31, 2013 was $326,000 of unpaid severance, relating to the reduction in force which occurred October 24, 2013, and $142,000 of unpaid severance, relating to the termination of our previous CEO’s employment on May 8, 2013.

	Warranty reserve activity, included in accrued expenses, during the year ended October 31, 2013 and three months ended January 31, 2014 was as follows (in thousands):

		Balance at		Charged to				Balance at
		Beginning		Costs and		Reserve		End of
		of Period		Expenses		Usage		Period

	Year ended October 31, 2013
	Warranty reserve	$	11	$	58	$	-28	$	41

	Three months ended January 31, 2014
	Warranty reserve (Unaudited)	$	41	$	-	$	-	$	41

	Deferred revenue, current portion, consists of the following (in thousands):

		October 31,		January 31,
		2013		2014
				(Unaudited)

	Product	$	47	$	92
	Services		1,043		1,123
		$	1,090	$	1,215

LINE_OF_CREDIT_AND_LONG_TERM_L

LINE OF CREDIT AND LONG TERM LIABILITIES	3 Months Ended
LINE OF CREDIT AND LONG TERM LIABILITIES	Jan. 31, 2014
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	6. LINE OF CREDIT AND LONG TERM LIABILITIES

	The Company had a revolving line of credit and term loan with Silicon Valley Bank. In July 2013, the Company entered into a Credit Agreement and security agreements with Fortress Credit Co. LLC, an affiliate of Fortress Investment Group LLC (such affiliates collectively, “Fortress”) (described below). The Company used a portion of the proceeds of the Fortress loans to repay the revolving line of credit and term loan with Silicon Valley Bank.

	Effective July 22, 2013, the Company entered into a Credit Agreement with Fortress that provides for aggregate Term Loan commitments of up to $10 million. The Term Loan consists of a Term Loan A in the principal amount of $5 million, which matures July 22, 2016 and a Term Loan B in the principal amount of $5 million, which matures February 1, 2016. The Company drew down the full $10 million of both Term Loans on July 24, 2013. Interest on the Fortress notes is due monthly in arrears and the remaining principal balance accrues interest at 10% annually. Term Loan A is interest-only for the first 12 months and Term Loan B is interest-only for the first six months .

	The accounting treatment of debt issuance costs is indicated in ASC 835-30-45-3 and ASC 470-50-40-17 to 19. Debt issuance costs should be recorded as a deferred charge and amortized over the term of the debt using the interest method. The effective interest rate of the combined Fortress loans is 13.37%. The notes have a statutory interest rate of 10%. The effective rate is higher due to the use of the effective interest method to calculate the monthly expense, which includes debt discount, and loan origination fee amortization.

	In conjunction with the Credit Agreement with Fortress, the Company has agreed to certain financial covenants. The Company is required to maintain a minimum of $1.5 million of unrestricted cash at each month end and the Company is restricted from making certain cash distributions to equity security holders or from incurring additional indebtedness without prior written consent from Fortress. The Company has also agreed to certain reporting covenants and must supply monthly financial statements to Fortress within 30 days of the end of each month.

	In connection with the Fortress Transactions, the Company transferred substantially all of its patents, other than its ’972 patent family, to a limited partnership KIP CR P1 LP of which the Company is a limited partner and of which an affiliate of Fortress is the general partner. The partnership now controls 117 pending or granted non-’972 patents. There was no licensing activity during fiscal year 2013 associated with these patents. The general partner cannot be removed without the consent of Fortress. The Company accounts for the investment in the partnership on a consolidated basis using the equity method of accounting.

	As a condition to and in connection with the Credit Agreement, the Company issued to Fortress warrants to purchase 1,454,545 shares of the Company’s common stock at an exercise price of $ 2.0625 per share (“Fortress Warrants”). See Note 8 for a discussion of the Fortress Warrants.

	As of January 31, 2014, the carrying amount of the notes payable to Fortress and other, net of debt discounts, consists of the following (in thousands):

		October 31,		January 31,
		2013		2014
				(Unaudited)

	Principal balance Fortress	$	10,000	$	9,792
	Principal balance other		-		37
	Unaccreted debt discount		-1,411		-1,164
	Net carrying value of Fortress notes		8,589		8,665
	Less current portion of debt		-1,605		-2,763
	Long term portion of debt	$	6,984	$	5,902

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Jan. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies Disclosure [Text Block]	'
	7. COMMITMENTS AND CONTINGENCIES

	Leases

	The Company leases office space and equipment under long-term operating lease agreements that expire on various dates through August 31, 2016. Rental expense under these agreements was approximately $113,000 and $123,000 for the three months ended January 31, 2013 and 2014, respectively. The Company leases its headquarters, approximately 37,800 square feet of general office, laboratory, data center and administrative space in Austin, Texas. The original lease was effective October 31, 2005 and extended in accordance with an extension agreement through February 28, 2015. The term of the extension agreement is five years, from March 1, 2010 through February 28, 2015, and represents a lease commitment of approximately $382,000 per year through the lease term.
	Legal Proceedings

	Intellectual Property Litigation

	The Company filed a lawsuit on September 11, 2013 against Dot Hill Systems Corp. ("Dot Hill") styled Crossroads Systems, Inc. v. Dot Hill Systems Corp., Civil Action No. 1:13-CV-800-SS alleging patent infringement and breach of the Amended Settlement and License Agreement dated June 27, 2006 between Crossroads and Dot Hill. Dot Hill filed a motion to dismiss and the Court denied Dot Hill’s motion. The action is proceeding in the Western District of Texas.

	The Company filed a lawsuit on October 7, 2013 against Oracle Corporation alleging infringement by Oracle Corporation of U.S. Patent Nos. 6,425,035, 7,051,147 and 7,934,041 (the case is styled Crossroads Systems, Inc., v. Oracle Corporation; Civil Action No. 1:13-CV-895-SS (W.D. Tex., Austin Division)). Oracle has answered the complaint. The action is pending.


	The Company filed a lawsuit on November 26, 2013 against Tandberg Data Corporation alleging infringement by Tandberg Data Corporation of U.S. Patent Nos. 6,425,035 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. Tandberg Data Corporation; Civil Action No. 1:13-cv-01026-SS (W.D. Tex., Austin Division)). Tandberg Data answered the complaint and the action is pending.

	The Company filed a lawsuit on November 26, 2013 against Huawei Technologies Co. Ltd., Huawei Enterprise USA, Inc. & Huawei Technologies USA, Inc. alleging infringement of U.S. Patent Nos. 6,425,035, 7,051,147 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. Huawei Technologies Co., Ltd. et al; Civil Action No. 1:13-cv-01025-SS (W.D. Tex., Austin Division)). Huawei has answered the complaint and the action is pending.

	The Company filed a lawsuit on November 26, 2013 against Dell Inc. alleging infringement of U.S. Patent Nos. 6,425,035 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. Dell Inc.; Civil Action No. 1:13-cv-01023-SS (W.D. Tex., Austin Division)). Dell answered the complaint and the action is pending.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Jan. 31, 2014
Stockholders Equity Note [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	8. STOCKHOLDERS’ EQUITY

	2010 Private Placement

	On October 23, 2010 the Company sold 3,125,000 shares of its common stock at $3.20 per share for gross proceeds to the Company of $10.0 million. In conjunction with this private placement, the Company also issued warrants to purchase an additional 1,074,212 shares of common stock with an exercise price of $3.20 per share. Fees in the amount of $0.8 million relating to the stock placement were netted against proceeds. The warrants were valued at $1.3 million using the Black-Scholes model. The Black-Scholes inputs used were: expected dividend rate of 0%, expected volatility of 63%, risk free interest rate of 1.47%, and expected term of 5 years. The warrants were exercisable immediately upon issue, and expire October 22, 2015. As of January 31, 2014, there were 998,096 warrants outstanding.

	Iron Mountain Private Placement

	On July 31, 2012, the Company issued and sold to Iron Mountain Incorporated (“IRM”) 582,524 shares of its common stock at $5.15 per share, for an aggregate purchase price of $ 3 million. The Company also entered in a registration rights agreement with IRM, pursuant to which the Company agreed to prepare and file a registration statement with the Securities and Exchange Commission (“SEC”) at IRM’s request, no later than sixty days following such request, and to keep it continuously effective until the shares covered by the registration statement have been sold or become eligible for sale pursuant to SEC Rule 144 without restriction on the volume of securities that may be sold in any single transaction, assuming for this purpose that the security holders are not affiliates of the Company. On December 19, 2013, the Company and IRM mutually agreed to end their agreement involving co-promoted product development (refer to Note 11). As part of the settlement IRM also agreed that it would not transfer the shares without the Company’s prior written consent until the two-year anniversary date of the settlement, and that it would vote the shares consistent with the recommendation of the Company’s Board of Directors.

	2013 Private Placement

	On March 22, 2013, the Company entered into a Securities Purchase Agreement with certain accredited investors for the issuance and sale in a private placement of 4,231,154 units at a purchase price of $ 2.0625 per unit, valued at $8.6 million, for net proceeds of approximately $7.9 million after related expenses. Each unit consists of one share of cumulative 5.0% Series F convertible preferred stock, par value $0.001 per share and a warrant to purchase one-half of a share of common stock equal per share of convertible preferred stock purchased, at an exercise price of $2.00 per whole share, subject to certain adjustments, resulting in the issuance of warrants to purchase an additional 2,282,754 shares of common stock with an exercise price of $2.00 per share. The convertible preferred stock ranks senior to the common stock and each other class or series of the Company’s capital stock, whether common, preferred or otherwise, with respect to distributions of dividends and distributions upon liquidation, dissolution or winding up of the Company. The warrants were initially valued using the Black-Scholes pricing model at approximately $2,284,000. The relative fair value of these warrants, totaling $1,543,000, were initially allocated to additional paid in capital. The Black-Scholes inputs used were: expected dividend rate of 0 %, expected volatility of 63%, risk free interest rate of 0.82%, and expected term of 5 years. This valuation resulted in a beneficial conversion feature on the convertible preferred stock of approximately $1,090,000. This amount was recorded, upon issuance, as a deemed dividend. Fees in the amount of $0.7 million relating to the stock placement were netted against proceeds. The warrants became exercisable on June 21, 2013, and expire March 22, 2018. Stock dividends valued at $106,000 were issued in fiscal year 2013, by issuing 57,097 shares of common stock. During the three months ended January 31, 2014, the Company issued 150,703 dividend common shares valued at approximately $366,000.

	In accordance with ASC 815-40-25 and ASC 815-10-15 Derivatives and Hedging and ASC 480-10-25 Liabilities-Distinguishing Liabilities from Equity as approved by shareholders, the convertible preferred shares are accounted for net outside of stockholders’ equity at $5,720,000 with the warrants accounted for as liabilities at their fair value of $3,957,000 as of January 31, 2014. The value of the derivative warrant liability will be re-measured at each reporting period with changes in fair value recorded as earnings until the expiration of the ratchet provision on March 22, 2014 or upon approval of an amendment related to the ratchet removal to be voted on during the annual meeting on March 14, 2014.

	The warrants related to the Series F Preferred Shares were revalued at October 31, 2013 using the Black-Scholes pricing model at approximately $772,000. The dynamic Black-Scholes inputs used were: expected dividend rate of 0%, expected volatility of 65%, risk free interest rate of 1.10%, and expected term of 4.4 years. At January 31, 2014 these warrants were revalued at approximately $3,957,000 using dynamic Black-Scholes inputs of: expected dividend rate of 0%, expected volatility of 74%, risk free interest rate of 1.16%, and expected term of 4.2 years.

	The convertible preferred stock has the rights, qualifications, limitations and restrictions set forth in the Certificate of Designation (the “Certificate of Designation”) filed with the Secretary of State of the State of Delaware on March 28, 2013. The Certificate of Designation authorizes issuance of up to 4,500,000 shares of convertible preferred stock, with 3,750,000 shares designated as “Sub-Series F-1” and 750,000 shares designated as “Sub-Series F-2.” The right of holders of convertible preferred stock to convert the convertible preferred stock is subject to a 9.99% beneficial ownership limitation for holders of Sub-Series F-1 and a 4.99% beneficial ownership limitation for holders of Sub-Series F-2. Such beneficial ownership limitations may be increased or decreased by a holder of Sub-Series F-1 to any percentage not in excess of 19.99% after providing notice of such increase or decrease to the Company. For as long as at least 90% of the aggregate number of shares of Sub-Series F-1 issued on the Original Issue Date are outstanding, the holders of such Sub-Series F-1, voting as a single class, will be entitled to elect two directors of the Company. If less than 90%, but at least 20%, of such shares of Sub-Series F-1 are outstanding, such holders, voting as a single class, will be entitled to elect one director of the Company. The holders of Sub-Series F-2 will not be entitled to vote on the directors elected by the holders of Sub-Series F-1. The holders of shares of the convertible preferred stock are entitled to a liquidation preference equal to the original issuance price plus any unpaid dividends.

	The Certificate of Designation contains customary anti-dilution protection for proportional adjustments (e.g. stock splits). In addition, prior to the earlier to occur of (A) twelve months following the original issue date of March 28, 2013 and (B) the date on which the Company indicates a positive earnings per share in its public disclosures, if the Company issues or is deemed to have issued additional shares of Common Stock without consideration or for a consideration per share less than the applicable conversion price, which is initially $2.0625 per share, then the conversion price of the convertible preferred stock will be reduced, concurrently with such issue, to the consideration per share received by the Company for such issue or deemed issue of the additional shares of Common Stock. The warrants issued in March 2013 also contain customary anti-dilution protection for proportional adjustments (e.g. stock splits). In addition prior to the earlier to occur of (1) twelve months following the date of the warrants and (2) the date on which the Company indicates a positive earnings per share in its public disclosures, if the Company issues or is deemed to have issued additional shares of Common Stock without consideration or for a consideration per share less than the applicable exercise price, which is initially $2.00 per share, then the exercise price of the warrants will be reduced, concurrently with such issue, to the consideration per share received by the Company for such issue or deemed issue of the additional shares of Common Stock.

	The full ratchet anti-dilution provisions in the Company’s convertible preferred stock and warrants issued in its March 2013 private placement (discussed above) were not in effect until those provisions were approved by a vote of the Company’s stockholders at its 2013 annual meeting held on June 21, 2013. Upon approval of these provisions the warrants were reclassified as a derivative liability and recorded at fair value. Also upon approval of the full ratchet anti-dilution provision the Series F convertible preferred stock were potentially convertible into more shares of common stock than currently authorized, therefore those shares were classified in temporary equity. Upon the expiration of the full ratchet anti-dilution provisions on the one-year anniversary of the March 2013 private placement or approval of an amendment during the annual shareholders meeting on March 14, 2014, the Company expects the preferred stock and warrants to be reclassified back to permanent stockholders' equity.

	In the event the convertible preferred shares are redeemed, any redemption price in excess of the carrying amount of the convertible preferred stock would be treated as a dividend. During the three months ended January 31, 2014, there were 447,457 shares of Series-F Preferred shares converted to common shares with a value of approximately $674,000. The following table illustrates the carrying value of the Series-F Preferred shares; (in thousands)

	Series F-Preferred Shares

	Net proceeds from issuance of Series-F Preferred Shares	$	7,937
	Discount related to allocation of relative fair value of warrants		-1,543
	Net Series-F Preferred Shares October 31, 2013		6,394
	Conversion of preferred shares to common shares		-674
	Net Series-F Preferred Shares January 31, 2014 (Unaudited)	$	5,720

	Dividends on the Series F convertible preferred stock will accrue at an annual rate of 5.0% of the original issue price and will be payable on a semi-annual basis. The convertible preferred ranks senior to the common stock and each other class or series of the Company’s capital stock, whether common, preferred or otherwise, with respect to distributions of dividends and distributions upon liquidation, dissolution or winding up of the Company. Pursuant to a registration rights agreement entered into with the purchasers of the Series F convertible preferred stock, in the event that a registration statement for the resale of the common stock underlying the convertible preferred stock and March 2013 warrants was not declared effective prior to July 26, 2013 (120 days from the closing of the March 2013 private placement), then the rate at which dividends accrued on the convertible preferred stock would be increased to an annual rate of 12.0% from that date until such time as a registration statement is declared effective, at which time the dividend rate reverts to an annual rate of 5.0%. The registration statement was not declared effective by July 26, 2013, and as a result the dividend rate on the convertible preferred stock increased to an annual rate of 12.0%, until September 19, 2013 when it was declared effective. The Company may elect to satisfy our obligation to pay semi-annual dividends in cash, by distribution of common stock or a combination thereof, in our discretion. During the three months ended January 31, 2014 the Company elected to issue 150,703 shares of common stock to satisfy accrued dividends. Accrued and unpaid dividends were valued at $33,000 as of January 31, 2014.

	On February 28, 2013, in connection with the 2013 Private Placement, the Company issued convertible promissory notes to two investors, in the aggregate principal amount of $550,000. Pursuant to the terms of the notes, both note holders had the right to convert the outstanding amounts under their notes into Series F convertible preferred stock shares at a discount of 15% to the issue price of the Series F convertible preferred stock. This resulted in a beneficial conversion feature of $107,000. Each note holder exercised this right and received 188,235 Series F convertible preferred stock shares, in the case of the note holder converting $330,000 of promissory notes and interest, and 156,863 Series F convertible preferred stock shares, in the case of note holder converting $275,000 of promissory notes and interest.

	The Company has the following common stock warrants outstanding at January 31, 2014:

	Warrants Outstanding

	Warrant Transaction	Warrants		Exercise
		Outstanding		Price
	2010 Private Placement	998,096		$	3.2
	2013 Private Placement	2,129,775		$	2
	2013 Fortress Credit Agreement	1,454,545		$	2.06
	Total Warrants	4,582,416

	2013 Fortress Credit Agreement

	Effective July 22, 2013, the Company entered into a Credit Agreement with Fortress described above in Note 6. As a condition to and in connection with the Credit Agreement, the Company issued to Fortress the Fortress Warrant, pursuant to which Fortress is entitled to purchase 1,454,545 shares of the Company’s common stock at an exercise price of $2.0625 per share.

	The Fortress Warrants previously contained what is commonly referred to as “full-ratchet” anti-dilution protection pursuant to which, if the Company issued or was deemed to have issued additional shares of common stock without consideration or for a consideration per share less than the applicable exercise price, which is initially $2.0625 per share, then the exercise price of the Fortress Warrants would have been reduced, concurrently with such issue, to the consideration per share received by the Company for such issue or deemed issue of the additional shares of common stock. On January 23, 2014, the Company entered into a warrant amendment with the warrantholder, the sole purpose of which was to remove the “full-ratchet” anti-dilution provision of the warrant. This “full-ratchet” anti-dilution provision would have expired no later than July 22, 2014 under the original terms of the Warrant.

	To derive an estimate of the fair value of these warrants, the Company utilized a dynamic Black Scholes Merton formula that computes the impact of share dilution upon the exercise of the warrant shares. This process relies upon inputs such as shares outstanding, estimated stock prices, strike price and volatility assumptions to dynamically adjust the payoff of the warrants in the presence of the dilution effect. The Fortress Warrant was recorded in shareholders’ equity at a fair value of $1,374,000 or $ 1.0625 per underlying warrant share.

	The Fortress Warrant is exercisable on or after October 22, 2013 and will expire on the seventh anniversary of the effective date of the Fortress Transactions. If the Fortress Warrant is exercisable and there is no effective Registration Statement registering, or no current prospectus available for the resale of the shares of common stock issuable upon exercise of the Fortress Warrant, then the Fortress Warrant may also be exercised at such time by means of a “cashless exercise,” determined according to the terms of the Fortress Warrant.

STOCK_OPTIONS_AND_STOCK_BASED_

STOCK OPTIONS AND STOCK BASED COMPENSATION	3 Months Ended
STOCK OPTIONS AND STOCK BASED COMPENSATION	Jan. 31, 2014
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]	'
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	'
		9	STOCK OPTIONS AND STOCK BASED COMPENSATION

	The Company has a stock-based compensation plan available to grant incentive stock options, non-qualified stock options and restricted stock to employees and non-employee members of the board of directors and advisors.

	The Company’s 2010 Stock Incentive Plan (the “2010 Plan”) succeeded the 1999 Stock Option/Stock Issuance Plan (the “1999 Plan”). As of January 31, 2014, options to purchase 693,217 shares of common stock were outstanding under the 1999 Plan, and no further grants can be made under the 1999 Plan.

	The 2010 Plan was approved by the board of directors on May 26, 2010 and became effective on August 13, 2010, upon approval by shareholders. A maximum of 3,500,000 shares of the Company’s common stock may be awarded, plus the automatic increase as detailed below. The total number of shares that will be reserved, and that may be issued, under the 2010 Plan will automatically increase on the first trading day of each calendar year, by a number of shares equal to four percent (4%) of the total outstanding shares on the last day of the prior calendar year, subject to a maximum annual increase of 250,000. As of January 31, 2014, options to purchase 3,576,998 shares of common stock were granted from the 2010 Plan, of which 2,873,493 were outstanding. During the three months ended January 31, 2013 and 2014, common stock share grants of 146,555 and 66,081, respectively, were granted from the 2010 Plan.

	As of January 31, 2014, options to purchase an aggregate of 3,566,710 shares of common stock were outstanding under the 1999 Plan and the 2010 Plan, of which 1,843,938 were vested. Under the 2010 Plan, 233,274 shares of common stock were available for future grants as of January 31, 2014. The shares of common stock reserved for future grant are reduced by 96,638 options previously exercised under the 2010 Plan, and 296,595 shares of stock granted under the 2010 Plan. The Compensation Committee of the Board of Directors determines the exercise price, term and other conditions applicable to each stock option granted under the 2010 Plan. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of the Company’s stock on that date (at market close). The 2010 Plan options generally become exercisable over a four-year period (vesting 25% after one year, the remaining 75% vesting quarterly thereafter) and expire after ten years. During 2013, the majority of the employee incentive stock option grants vest on a schedule of 25% at the end of six months and 12.5% thereafter. Stock option exercises are fulfilled with new shares of common stock.

	The Company realized stock-based compensation expense for all awards issued under the Company’s stock plans in the following line items in the consolidated statements of operations (in thousands):

			Three months ended January 31,
			2013			2014
						(Unaudited)

	Cost of revenue		$	7		$	12
	Sales and marketing			135			124
	Research and development			120			201
	General and administrative			121			211
	Total stock-based compensation		$	383		$	548

	During the year ended October 31, 2013 share based compensation expense of approximately $147,000 was accrued for 67% of the total estimated management bonus for the fiscal year ended October 31, 2013. Accordingly, 66,081 shares of common stock were granted in January 2014 to satisfy this liability.

	The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatility of the Company’s stock. The expected term represents an estimate of the time options are expected to remain outstanding based upon historical analysis. The risk-free rate for periods within the contractual life of the option is based on the U.S. treasury yield curve in effect at the time of grant. The variables used in the Black-Scholes calculation are listed below for the respective periods:

			Three months ended January 31,
			2013		2014


	Expected dividend yield		0	%	0	%
	Expected volatility		69	%	73 - 74	%
	Risk-free interest rate		0.7 - 0.8	%	1.4 - 1.6	%
	Expected term (years)		6.1		5-Apr

	The following table summarizes information about stock option activity for the three months ended January 31, 2014 (unaudited):

			Number of			Weighted		Weighted Average			Aggregate
			Shares			Average		Remaining			Intrinsic
						Exercise Price		Contractual			Value ($M)
								Term (years)

	Outstanding at October 31, 2013		3,320,910		$	2.71		6.43		$	–
	Granted		545,464		$	1.71
	Forfeited		-183,798		$	4
	Exercised		-115,866		$	1.55
	Outstanding and expected to vest		3,566,710		$	2.53		7.09		$	3.2
	at January 31, 2014		3,566,710		$	2.53		7.09		$	3.2

	Exercisable at January 31, 2014		1,843,938		$	3.09		4.94		$	1.3

	The weighted average fair value per option granted during the three months ended January 31, 2013 and 2014 was $1.68 and $1.10 respectively. The total intrinsic value of options (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) exercised during the three months ended January 31, 2013 and 2014 was $1,000 and $127,000 respectively. During the three months ended January 31, 2013 and 2014, the amount of cash received from the exercise of stock options was approximately $1,600 and $180,000, respectively.

	The Company granted 40,000 options to non-employees during the three months ended January 31, 2013 with a fair value of approximately $67,000, and granted 10,000 options during the three months ended January 31, 2014, with a fair value of approximately $14,000.

	At January 31, 2014, there was approximately $1,158,000 of total unrecognized compensation cost related to non-vested stock option awards. This cost is expected to be recognized over a weighted-average period of 1.0 year. There were 119,369 and 243,622 options that became vested during the three months ended January 31, 2013 and 2014, respectively, with the total fair value of these awards of approximately $233,000 and $340,000 respectively.

	The following table shows information about outstanding stock options at January 31, 2014:

									Options Outstanding						Options Exercisable
											Weighted
											Average		Weighted				Weighted
	Range of								Shares		Remaining		Average				Average
Exercise Prices								Outstanding		Contractual Term		Exercise Price		Shares		Exercise Price
$	0.64		-		$	1.21		579,606		9.17		$	1.11	184,606		$	0.89
$	1.21		-		$	1.54		521,506		9.76		$	1.5	127,756		$	1.38
$	1.54		-		$	1.56		359,977		4.38		$	1.56	331,609		$	1.56
$	1.56		-		$	2.04		108,981		6.31		$	1.8	83,556		$	1.79
$	2.04		-		$	2.1		864,368		9.36		$	2.1	166,095		$	2.1
$	2.1		-		$	3.98		359,896		5.44		$	3.14	269,129		$	3.29
$	3.98		-		$	4.75		498,065		3.19		$	4.62	433,861		$	4.61
$	4.75		-		$	10.64		274,311		3.59		$	5.76	247,326		$	5.86

$	0.64		-		$	10.64		3,566,710		7.09		$	2.53	1,843,938		$	3.09

EMPLOYEE_BENEFITS

EMPLOYEE BENEFITS	3 Months Ended
	Jan. 31, 2014
Compensation and Retirement Disclosure [Abstract]	'
Pension and Other Postretirement Benefits Disclosure [Text Block]	'
		10	EMPLOYEE BENEFITS

	In 1996, the Company established the Crossroads Systems, Inc. 401(k) Savings Plan (the “Savings Plan”), which is a qualified plan under section 401(k) of the Internal Revenue Code. All employees who have attained 18 years of age are eligible to enroll in the Savings Plan. The Company may make matching contributions to those employees participating in the Savings Plan based upon Company productivity and profitability. Company contributions vest over a period of six years. In October 2000, the Company adopted a new 401(k) Savings Plan that meets all of the criteria set forth above in the Savings Plan. The Company made matching contributions $75,000 and $45,000 during the three months ended January 31, 2013 and 2014, respectively.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
RELATED PARTY TRANSACTIONS	Jan. 31, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions Disclosure [Text Block]	'
	11. RELATED PARTY TRANSACTIONS

	On December 19, 2013, the Company and IRM entered into a settlement agreement to end their contract involving the development of a co-branded product. The Company received $1.6 million in connection with the terminated contract in the first quarter of fiscal year 2014. The Company bifurcated the payment between amounts received for work performed on the development of the product of $550,000, and a gain from settlement of $1,050,000, included in “gain on settlement” income. Included in the settlement was the return of title and ownership of the product developed to date for IRM along with return of any and all equipment purchased. The Company recorded the amounts attributable to development as services revenue, and the gain on settlement was reflected as a reduction in operating expenses. IRM also agreed that it would not transfer any of its 582,524 shares of the Company’s common stock without the Company's prior written consent until the two-year anniversary date of the settlement, and that it would vote the shares consistent with the recommendation of the Company’s Board of Directors.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Jan. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	12. SUBSEQUENT EVENTS

	The Company filed a lawsuit on February 18, 2014 against Cisco Systems, Inc. alleging infringement of U.S. Patent Nos. 6,425,035 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. Cisco Systems, Inc.; Civil Action No. 1:14-cv-00148-SS (W.D. Tex., Austin Division)). Cisco has not yet answered the complaint. The action is pending.

	The Company filed a lawsuit on February 18, 2014 against NetApp, Inc. alleging infringement of U.S. Patent Nos. 6,425,035 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. NetApp, Inc.; Civil Action No. 1:14-cv-00149-SS (W.D. Tex., Austin Division)). NetApp has not yet answered the complaint. The action is pending.

	The Company filed a lawsuit on February 18, 2014 against Quantum Corporation alleging infringement of U.S. Patent Nos. 6,425,035 and 7,934,041 (the case is styled Crossroads Systems, Inc. v. Quantum Corporation; Civil Action No. 1:14-cv-00150-SS (W.D. Tex., Austin Division)). Quantum has not yet answered the complaint. The action is pending.

ORGANIZATION_AND_BASIS_OF_PRES1

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	3 Months Ended
ORGANIZATION AND BASIS OF PRESENTATION (Policies)	Jan. 31, 2014
Organization, Consolidation and Presentation Of Financial Statements [Abstract]	'
Consolidation, Policy [Policy Text Block]	'
	Principles of consolidation and presentation

	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation.

	The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has accumulated significant losses as it has been developing its current and next generation products. The Company believes that cash flow from operations, customer reimbursed expenses, and proceeds from the sale of equity will be sufficient to fund the anticipated operations for fiscal 2014. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern for a reasonable period of time.

	The Company’s investment in KIP CR P1 LP (to which the Company refers as the partnership), of which the Company is a limited partner and of which an affiliate of Fortress Investment Group LLC is the general partner, is accounted for using the equity method. The current investment balance is nominal at January 31, 2014.

Use of Estimates, Policy [Policy Text Block]	'
	Use of Estimates

	The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements.

Earnings Per Share, Policy [Policy Text Block]	'
	Computation of Net Loss Per Share

	Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by giving effect to all dilutive potential common shares that were outstanding during the period. Basic earnings per share excludes the dilutive effect of common stock equivalents such as stock options and warrants, while earnings per share, assuming dilution, includes such dilutive effects. Future weighted-average shares outstanding calculations will be impacted by the following factors, among others: (i) the ongoing issuance of common stock associated with stock option and warrant exercises; (ii) any fluctuations in the Company’s stock price, which could cause changes in the number of common stock equivalents included in the earnings per share, assuming dilution computation; and (iii) the issuance of common stock to effect business combinations should the Company enter into such transactions.

	The Company has excluded all outstanding common stock equivalents from the calculation of diluted net loss per share because all such common stock equivalents are antidilutive for all periods presented. The total number of common stock equivalents excluded from the diluted net loss per common share calculation was 3,178,929 and 11,932,823 for the three months ended January 31, 2013 and 2014, respectively. The dilutive common stock equivalents for the three months ended January 31, 2014 include warrants to purchase 4,582,416 shares of common stock, 3,783,697 shares of preferred stock, which are excluded until converted to common shares (Note 8), and stock options to purchase 3,566,710 shares of common stock.

	Net loss available to common stockholders is calculated by deducting from net income preferred dividends paid and accrued of $ 0.2 million.

Contracts To Modify Or Customize Products [Policy Text Block]	'
	Contracts to Modify or Customize Products

	The Company periodically enters into contracts with certain customers to significantly modify or customize products. In accounting for such arrangements, the Company first looks to the guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 985-605, Software - Revenue Recognition (“ASC 985-605”), and then ASC Subtopic 605-25, Revenue Recognition – Multiple-Element Arrangements, to determine the appropriate accounting elements in the arrangement. The Company then considers the appropriate recognition model for each accounting element based on the nature of the element and applies the guidance in ASC Subtopic 605-35, Revenue Recognition – Construction-Type and Production-Type Contracts, ASC Subtopic 985-60, ASC Subtopic 605-15, Revenue Recognition – Products, or ASC Subtopic 605-20, Revenue Recognition – Services, as applicable. Amounts allocated to the modification/customization service element are evaluated for classification in the consolidated statement of operations as either revenue or reduction of research and development expense based on the following considerations: whether and in what circumstances the consideration received is refundable, ownership of the final product and intellectual property rights to develop the product, and exclusivity of the final product.

New Accounting Pronouncements, Policy [Policy Text Block]	'
	Recently Issued Accounting Pronouncements

	On March 4, 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830) Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”). ASU 2013-05 updates accounting guidance related to the application of consolidation guidance and foreign currency matters. This guidance resolves the diversity in practice about what guidance applies to the release of the cumulative translation adjustment into net income. This guidance is effective for interim and annual periods beginning after December 15, 2013. The Company anticipates adopting ASU 2013-05 beginning November 1, 2014. The Company does not anticipate that these changes will have a material impact on its consolidated financial statements or disclosures.

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Jan. 31, 2014
Fair Value Disclosures [Abstract]	'
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]	'
	The following table represents the Company’s fair value hierarchy for its financial instruments measured at fair value on a recurring basis as of January 31, 2014 (in thousands):

	Fair Value Table

				Quoted Prices in Active		Significant Other		Significant
		Balance at January		Markets for Identical		Observable Inputs		Unobservable Inputs
		31, 2014		Liabilities (Level 1)		(Level 2)		(Level 3)

	Derivative liability	$	3,957	$	-	$	-	$	3,957

		$	3,957	$	-	$	-	$	3,957

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	'
	The changes in liabilities measured using significant unobservable inputs for three months ended January 31, 2014 was as follows (in thousands) (see Note 8 explaining the revaluation of Series-F Preferred Stock and Warrants):

	Level 3 Roll-forward	Derivative Liability
	Balance October 31, 2013	$	772
	Change in fair value of derivative liability		3,400
	Derivative liability converted to equity upon exercise		-215
	Balance January 31, 2014 (Unaudited)	$	3,957

INVENTORY_Tables

INVENTORY (Tables)	3 Months Ended
INVENTORY (Tables)	Jan. 31, 2014
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current [Table Text Block]	'
	Inventory, net consists of the following (in thousands):

		October 31,		January 31,
		2013		2014
				(Unaudited)

	Raw materials	$	204	$	222
	Finished goods		109		101
		$	313	$	323

PROPERTY_AND_EQUIPMENT_Tables

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Jan. 31, 2014
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment [Table Text Block]	'
	Property and equipment, net consist of the following (in thousands, except number of years):

				October 31,		January 31,
				2013		2014
		Life (years)				(Unaudited)
	Equipment	3-Jan	$	18,390	$	18,373
	Furniture and fixtures	5		789		788
	Leasehold improvements	5		576		576
				19,755		19,737
	Less: Accumulated depreciation			-18,724		-18,896
			$	1,031	$	841

ACCRUED_EXPENSES_AND_DEFERRED_1

ACCRUED EXPENSES AND DEFERRED REVENUE (Tables)	3 Months Ended
ACCRUED EXPENSES AND DEFERRED REVENUE (Tables)	Jan. 31, 2014
Payables and Accruals [Abstract]	'
Schedule of Accrued Liabilities [Table Text Block]	'
	Accrued expenses consist of the following (in thousands):

		October 31,		January 31,
		2013		2014
				(Unaudited)

	Payroll related	$	1,470	$	730
	Professional services		359		487
	Warranty reserve		41		41
	Other		225		136
		$	2,095	$	1,394

Schedule of Product Warranty Liability [Table Text Block]	'
	Warranty reserve activity, included in accrued expenses, during the year ended October 31, 2013 and three months ended January 31, 2014 was as follows (in thousands):

		Balance at		Charged to				Balance at
		Beginning		Costs and		Reserve		End of
		of Period		Expenses		Usage		Period

	Year ended October 31, 2013
	Warranty reserve	$	11	$	58	$	-28	$	41

	Three months ended January 31, 2014
	Warranty reserve (Unaudited)	$	41	$	-	$	-	$	41

Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	'
	Deferred revenue, current portion, consists of the following (in thousands):

		October 31,		January 31,
		2013		2014
				(Unaudited)

	Product	$	47	$	92
	Services		1,043		1,123
		$	1,090	$	1,215

LINE_OF_CREDIT_AND_LONG_TERM_L1

LINE OF CREDIT AND LONG TERM LIABILITIES (Tables)	3 Months Ended
LINE OF CREDIT AND LONG TERM LIABILITIES (Tables)	Jan. 31, 2014
Debt Disclosure [Abstract]	'
Schedule of Long-term Debt Instruments [Table Text Block]	'
	As of January 31, 2014, the carrying amount of the notes payable to Fortress and other, net of debt discounts, consists of the following (in thousands):

		October 31,		January 31,
		2013		2014
				(Unaudited)

	Principal balance Fortress	$	10,000	$	9,792
	Principal balance other		-		37
	Unaccreted debt discount		-1,411		-1,164
	Net carrying value of Fortress notes		8,589		8,665
	Less current portion of debt		-1,605		-2,763
	Long term portion of debt	$	6,984	$	5,902

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
STOCKHOLDERS' EQUITY (Tables)	Jan. 31, 2014
Stockholders Equity Note [Abstract]	'
Schedule of Stockholders Equity Note, Warrants or Rights [Table Text Block]	'
	The Company has the following common stock warrants outstanding at January 31, 2014:

	Warrants Outstanding

	Warrant Transaction	Warrants		Exercise
	Warrant Transaction	Outstanding		Price
	2010 Private Placement	998,096		$	3.2
	2013 Private Placement	2,129,775		$	2
	2013 Fortress Credit Agreement	1,454,545		$	2.06
	Total Warrants	4,582,416

Series F Preferred Stock [Member]	'
Stockholders Equity Note [Abstract]	'
Temporary Equity [Table Text Block]	'
	Series F-Preferred Shares

	Net proceeds from issuance of Series-F Preferred Shares	$	7,937
	Discount related to allocation of relative fair value of warrants		-1,543
	Net Series-F Preferred Shares October 31, 2013		6,394
	Conversion of preferred shares to common shares		-674
	Net Series-F Preferred Shares January 31, 2014 (Unaudited)	$	5,720

STOCK_OPTIONS_AND_STOCK_BASED_1

STOCK OPTIONS AND STOCK BASED COMPENSATION (Tables)	3 Months Ended
STOCK OPTIONS AND STOCK BASED COMPENSATION (Tables)	Jan. 31, 2014
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]	'
Schedule Of Employees And Non Employees Service Share Based Compensation Allocation Of Recognized Period Costs [Table Text Block]	'
	The Company realized stock-based compensation expense for all awards issued under the Company’s stock plans in the following line items in the consolidated statements of operations (in thousands):

			Three months ended January 31,
			2013			2014
						(Unaudited)

	Cost of revenue		$	7		$	12
	Sales and marketing			135			124
	Research and development			120			201
	General and administrative			121			211
	Total stock-based compensation		$	383		$	548

Variables Used In Black Sholes Calculation [Table Text Block]	'
	The variables used in the Black-Scholes calculation are listed below for the respective periods:

			Three months ended January 31,
			2013		2014


	Expected dividend yield		0	%	0	%
	Expected volatility		69	%	73 - 74	%
	Risk-free interest rate		0.7 - 0.8	%	1.4 - 1.6	%
	Expected term (years)		6.1		5-Apr

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	'
	The following table summarizes information about stock option activity for the three months ended January 31, 2014 (unaudited):

			Number of			Weighted		Weighted Average			Aggregate
			Shares			Average		Remaining			Intrinsic
						Exercise Price		Contractual			Value ($M)
								Term (years)

	Outstanding at October 31, 2013		3,320,910		$	2.71		6.43		$	–
	Granted		545,464		$	1.71
	Forfeited		-183,798		$	4
	Exercised		-115,866		$	1.55
	Outstanding and expected to vest		3,566,710		$	2.53		7.09		$	3.2
	at January 31, 2014		3,566,710		$	2.53		7.09		$	3.2

	Exercisable at January 31, 2014		1,843,938		$	3.09		4.94		$	1.3

Schedule Of Share Based Compensation Shares Authorized Under Stock Option Plans To Employees and Non Employees By Exercise Price Range [Table Text Block]	'
	The following table shows information about outstanding stock options at January 31, 2014:

									Options Outstanding					Options Exercisable
											Weighted
											Average	Weighted			Weighted
	Range of								Shares		Remaining	Average			Average
	Exercise Prices								Outstanding		Contractual Term	Exercise Price		Shares	Exercise Price
	$	0.64		-		$	1.21		579,606		9.17	$	1.11	184,606	$	0.89
	$	1.21		-		$	1.54		521,506		9.76	$	1.5	127,756	$	1.38
	$	1.54		-		$	1.56		359,977		4.38	$	1.56	331,609	$	1.56
	$	1.56		-		$	2.04		108,981		6.31	$	1.8	83,556	$	1.79
	$	2.04		-		$	2.1		864,368		9.36	$	2.1	166,095	$	2.1
	$	2.1		-		$	3.98		359,896		5.44	$	3.14	269,129	$	3.29
	$	3.98		-		$	4.75		498,065		3.19	$	4.62	433,861	$	4.61
	$	4.75		-		$	10.64		274,311		3.59	$	5.76	247,326	$	5.86

	$	0.64		-		$	10.64		3,566,710		7.09	$	2.53	1,843,938	$	3.09

ORGANIZATION_AND_BASIS_OF_PRES2

ORGANIZATION AND BASIS OF PRESENTATION (Details Textual) (USD $)	3 Months Ended
In Millions, except Share data, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013
Organization And Basis Of Presentation [Line Items]	'	'
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount	11,932,823	3,178,929
Dividends, Preferred Stock, Cash	$0.20	'
Warrant [Member]	'	'
Organization And Basis Of Presentation [Line Items]	'	'
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount	4,582,416	'
Convertible Preferred Stock [Member]	'	'
Organization And Basis Of Presentation [Line Items]	'	'
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount	3,783,697	'
Employee Stock Option [Member]	'	'
Organization And Basis Of Presentation [Line Items]	'	'
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount	3,566,710	'

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013
In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability	$3,957	$772
Fair Value, Inputs, Level 1 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability	0	'
Fair Value, Inputs, Level 2 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability	0	'
Fair Value, Inputs, Level 3 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability	3,957	'
Derivative [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability	3,957	'
Derivative [Member] \| Fair Value, Inputs, Level 1 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability	0	'
Derivative [Member] \| Fair Value, Inputs, Level 2 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability	0	'
Derivative [Member] \| Fair Value, Inputs, Level 3 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability	$3,957	'

FAIR_VALUE_MEASUREMENTS_Detail1

FAIR VALUE MEASUREMENTS (Details 1) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]	'
Balance October 31, 2013	$772
Change in fair value of derivative liability	3,400
Derivative liability converted to equity upon exercise	-215
Balance January 31, 2014	$3,957

FAIR_VALUE_MEASUREMENTS_Detail2

FAIR VALUE MEASUREMENTS (Details Textual) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Preferred Stock, Value, Outstanding	$5,720	$6,394
Series-F warrants exercised	153,000	'

INVENTORY_Details

INVENTORY (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013
In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Inventory [Line Items]	'	'
Raw materials	$222	$204
Finished goods	101	109
Inventory, Net	$323	$313

PROPERTY_AND_EQUIPMENT_Details

PROPERTY AND EQUIPMENT (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013	Jan. 31, 2014	Jan. 31, 2014	Jan. 31, 2014	Jan. 31, 2014
In Thousands, unless otherwise specified			Machinery and Equipment [Member]	Machinery and Equipment [Member]	Furniture and Fixtures [Member]	Leasehold Improvements [Member]
			Minimum [Member]	Maximum [Member]
Property, Plant and Equipment [Line Items]	'	'	'	'	'	'
Equipment	$18,373	$18,390	'	'	'	'
Furniture and fixtures	788	789	'	'	'	'
Leasehold improvements	576	576	'	'	'	'
Property, Plant and Equipment, Gross	19,737	19,755	'	'	'	'
Less: Accumulated depreciation	-18,896	-18,724	'	'	'	'
Property Plant And Equipment Net	$841	$1,031	'	'	'	'
Property, Plant and Equipment, Useful Life	'	'	'1 year	'3 years	'5 years	'5 years

PROPERTY_AND_EQUIPMENT_Details1

PROPERTY AND EQUIPMENT (Details Textual) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013
Property, Plant and Equipment [Line Items]	'	'
Depreciation	$198	$201

ACCRUED_EXPENSES_AND_DEFERRED_2

ACCRUED EXPENSES AND DEFERRED REVENUE (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Accrued Expenses And Deferred Revenue [Line Items]	'	'	'
Payroll related	$730	$1,470	'
Professional services	487	359	'
Warranty reserve	41	41	11
Other	136	225	'
Accrued Liabilities Current	$1,394	$2,095	'

ACCRUED_EXPENSES_AND_DEFERRED_3

ACCRUED EXPENSES AND DEFERRED REVENUE (Details 1) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Product Warranty Accrual [Line Items]	'	'
Balance at Beginning of Period, Warranty reserve	$41	$11
Charged to Costs and Expenses, Warranty reserve	0	58
Reserve Usage, Warranty reserve	0	-28
Balance at End of Period, Warranty reserve	$41	$41

ACCRUED_EXPENSES_AND_DEFERRED_4

ACCRUED EXPENSES AND DEFERRED REVENUE (Details 2) (USD $)	Jan. 31, 2014	Oct. 31, 2013
In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Deferred Revenue For Product And Services [Line Items]	'	'
Deferred revenue	$1,215	$1,090
Product [Member]	'	'
Deferred Revenue For Product And Services [Line Items]	'	'
Deferred revenue	92	47
Services[Member]	'	'
Deferred Revenue For Product And Services [Line Items]	'	'
Deferred revenue	$1,123	$1,043

ACCRUED_EXPENSES_AND_DEFERRED_5

ACCRUED EXPENSES AND DEFERRED REVENUE (Details Textual) (USD $)	3 Months Ended	12 Months Ended
	Jan. 31, 2014	Oct. 31, 2013
Accrued Expenses And Deferred Revenue [Line Items]	'	'
Accrued Bonuses, Current	'	$202,000
Stock Issued During Period, Value, Share-Based Compensation, Net Of Forfeitures	135,000	'
Stock Issued During Period, Shares, Share-Based Compensation, Net Of Forfeitures (in shares)	66,081	147,000
Employee Severance [Member]	'	'
Accrued Expenses And Deferred Revenue [Line Items]	'	'
Severance Costs Payable	'	326,000
Chief Executive Officer [Member] \| Employee Severance [Member]	'	'
Accrued Expenses And Deferred Revenue [Line Items]	'	'
Severance Costs Payable	'	$142,000

LINE_OF_CREDIT_AND_LONG_TERM_L2

LINE OF CREDIT AND LONG TERM LIABILITIES (Details) (USD $)	Jan. 31, 2014	Oct. 31, 2013
In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Line of Credit Facility [Line Items]	'	'
Principal balance	$37	$0
Less current portion of debt	-2,763	-1,605
Long term portion of debt	5,902	6,984
Fortress [Member]	'	'
Line of Credit Facility [Line Items]	'	'
Principal balance	9,792	10,000
Unaccreted debt discount	-1,164	-1,411
Net carrying value of Fortress notes	8,665	8,589
Less current portion of debt	-2,763	-1,605
Long term portion of debt	$5,902	$6,984

LINE_OF_CREDIT_AND_LONG_TERM_L3

LINE OF CREDIT AND LONG TERM LIABILITIES (Details Textual) (USD $)	Jan. 31, 2014	Oct. 31, 2013	Jan. 31, 2014	Jul. 24, 2013	Jul. 22, 2013	Jul. 22, 2013	Jul. 22, 2013
			Fortress [Member]	Fortress [Member]	Fortress [Member]	Term Loan A [Member]	Term Loan B [Member]
						Fortress [Member]	Fortress [Member]
Line of Credit Facility [Line Items]	'	'	'	'	'	'	'
Debt Instrument, Face Amount	$37,000	$0	'	'	$10,000,000	$5,000,000	$5,000,000
Debt Instrument, Maturity Date	'	'	'	'	'	22-Jul-16	1-Feb-16
Debt Instrument, Interest Rate, Stated Percentage	'	'	10.00%	'	'	10.00%	10.00%
Debt Instrument Drew Down Amount	'	'	'	10,000,000	'	'	'
Debt Instrument Unrestricted Cash Minimum	$1,500,000	'	'	'	'	'	'
Debt Instrument, Description	'	'	'The Company is required to maintain a minimum of $1.5 million of unrestricted cash at each month end and the Company is restricted from making certain cash distributions to equity security holders or from incurring additional indebtedness without prior written consent from Fortress. The Company has also agreed to certain reporting covenants and must supply monthly financial statements to Fortress within 30 days of the end of each month.	'	'	'	'
Debt Instrument, Interest Rate, Effective Percentage	'	'	13.37%	'	'	'	'
Warrants To Purchase Common Stock	'	'	1,454,545	'	'	'	'
Warrants Exercise Price	'	'	$2.06	'	'	'	'

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)	Jan. 31, 2014	Jan. 31, 2013
Commitments And Contingencies [Line Items]	'	'
Operating Leases, Rent Expense, Net	$123,000	$113,000
Operating Leases Agreement Description	'The term of the extension agreement is five years, from March 1, 2010 through February 28, 2015, and represents a lease commitment of approximately $382,000 per year through the lease term.	'

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	3 Months Ended			12 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Oct. 31, 2013
	Jan. 31, 2014	Jan. 31, 2013	Series F Preferred Stock [Member]	Series F Preferred Stock [Member]
Stock Issuance And Proceeds [Line Items]	'	'	'	'
Net proceeds from issuance of Series-F Preferred Shares	'	'	'	$7,937
Discount related to allocation of relative fair value of warrants	'	'	'	-1,543
Conversion of preferred shares to common shares	674	0	-674	'
Net Series-F Preferred shares	'	'	$5,720	$6,394

STOCKHOLDERS_EQUITY_Details_1

STOCKHOLDERS' EQUITY (Details 1) (USD $)	Jan. 31, 2014	Jan. 31, 2014	Oct. 31, 2010	Jan. 31, 2014	Jan. 31, 2014	Oct. 31, 2013
STOCKHOLDERS' EQUITY (Details 1) (USD $)	Jan. 31, 2014	2010 Private Placement Warrant [Member]	2010 Private Placement Warrant [Member]	2013 Private Placement Warrant [Member]	2013 Fortress Credit Agreement Warrant [Member]	2013 Fortress Credit Agreement Warrant [Member]
Warrants [Line Items]	'	'	'	'	'	'
Warrants Outstanding	4,582,416	998,096	998,096	2,129,775	1,454,545	1,454,545
Warrants Exercise Price	'	$3.20	'	$2	$2.06	'

STOCKHOLDERS_EQUITY_Details_Te

STOCKHOLDERS' EQUITY (Details Textual) (USD $)

3 Months Ended

12 Months Ended

0 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

Jan. 31, 2014

Oct. 31, 2010

Oct. 31, 2013

Mar. 22, 2013

Jan. 31, 2014

Oct. 31, 2013

Oct. 31, 2010

Jan. 31, 2014

Oct. 31, 2013

Jan. 31, 2014

Oct. 31, 2013

Jul. 31, 2012

Oct. 31, 2013

Jul. 22, 2013

Oct. 31, 2010

2013 Private Placement Warrant [Member]

2010 Private Placement Warrant [Member]

2013 Fortress Credit Agreement Warrant [Member]

Series F Convertible Preferred Stock [Member]

Certificate Of Designation [Member]

Iron Mountain Incorporated [Member]

Investors [Member]

Investor One [Member]

Investor Two [Member]

Fortress Credit Co LLC [Member]

Private Placement [Member]

Series F1 Convertible Preferred Stock [Member]

Series F2 Convertible Preferred Stock [Member]

Convertible Notes Payable [Member]

Series F Convertible Preferred Stock [Member]

Convertible Notes Payable [Member]

Stock Holders Equity [Line Items]

Stock Issued During Period Shares New Issues One

3,125,000

Stock Issued During Period, New Issues, Par Value Per Share

$3.20

Stock Issued During Period Value New Issues One

$10,000,000

Number Of Common Stock, Shares Granted By Issue Of Warrants Under Private Placement

1,074,212

Exercise Price Per Share Of Common Stock Issued By Conversion Of Warrants

$3.20

Payments of Stock Issuance Costs

800,000

Fair Value Of Warrants

2,284,000

3,957,000

772,000

1,300,000

1,374,000

Fair Value Assumptions, Expected Dividend Rate

0.00%

Fair Value Assumptions, Expected Volatility Rate

63.00%

74.00%

65.00%

63.00%

Fair Value Assumptions, Risk Free Interest Rate

0.82%

1.16%

1.10%

1.47%

Fair Value Assumptions, Expected Term

'5 years

'4 years 2 months 12 days

'4 years 4 months 24 days

'5 years

Common Stock, Shares, Issued (in shares)

12,883,023

11,949,937

582,524

Common Stock, Par Or Stated Value Per Share (in dollars per share)

$0.00

$5.15

Common Stock, Value, Issued (in shares)

13,000

12,000

3,000,000

Securities Purchase Agreement, Number Of Units Issuable

4,231,154

Securities Purchase Agreement, Price Per Unit Of Units Issuable

2.0625

Securities Purchase Agreement, Value Of Units Issuable

8,600,000

Securities Purchase Agreement, Proceeds From Issuance Of Units

7,900,000

Preferred Stock, Shares Authorized

25,000,000

4,500,000

3,750,000

750,000

Preferred Stock, Conversion Basis

'The right of holders of convertible preferred stock to convert the convertible preferred stock is subject to a 9.99% beneficial ownership limitation for holders of Sub-Series F-1 and a 4.99% beneficial ownership limitation for holders of Sub-Series F-2

Preferred Stock, Voting Rights

'Such beneficial ownership limitations may be increased or decreased by a holder of Sub-Series F-1 to any percentage not in excess of 19.99% after providing notice of such increase or decrease to the Company. For as long as at least 90% of the aggregate number of shares of Sub-Series F-1 issued on the Original Issue Date are outstanding, the holders of such Sub-Series F-1, voting as a single class, will be entitled to elect two directors of the Company. If less than 90%, but at least 20%, of such shares of Sub-Series F-1 are outstanding, such holders, voting as a single class, will be entitled to elect one director of the Company

'The holders of Sub-Series F-2 will not be entitled to vote on the directors elected by the holders of Sub-Series F-1

Units, Par Or Stated Value Per Share

0.001

Securities Purchase Agreement, Number Of Warrants Issued

2,282,754

Securities Purchase Agreement, Exercise Price Of Warrants Issued

Securities Purchase Agreement, Units Issuance Cost

700,000

Debt Instrument, Face Amount

37,000

550,000

10,000,000

Debt Instrument, Convertible, Terms of Conversion Feature

'Pursuant to the terms of the notes, both note holders had the right to convert the outstanding amounts under their notes into Series F convertible preferred stock shares at a discount of 15% to the issue price of the Series F convertible preferred stock.

Debt Conversion, Converted Instrument, Shares Issued

188,235

156,863

convertible preferred shares

330,000

275,000

Warrants Convertible Beneficial Conversion Feature

1,090,000

Class of Warrant or Right, Outstanding

4,582,416

2,129,775

998,096

1,454,545

Dividends, Stock, Total

106,000

Common Stock Dividends, Shares

150,703

57,097

Fair Value Of Warrants, Per Share

$1.06

Debt Instrument, Convertible, Beneficial Conversion Feature

107,000

Preferred Stock, Value, Outstanding

5,720,000

6,394,000

Preferred Stock, Dividend Rate, Percentage

5.00%

Preferred Stock, Dividend Rate, Increased Percentage

12.00%

Stock Issued During Period, Value, Stock Dividend

366,000

Conversion of Stock, Shares Converted

447,457

Dividends Payable

$33,000

STOCK_OPTIONS_AND_STOCK_BASED_2

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share Based Compensation To Employees and Non Employees	$548	$383
Cost of revenue [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share Based Compensation To Employees and Non Employees	12	7
Selling and marketing [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share Based Compensation To Employees and Non Employees	124	135
Research and development [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share Based Compensation To Employees and Non Employees	201	120
General and administrative [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share Based Compensation To Employees and Non Employees	$211	$121

STOCK_OPTIONS_AND_STOCK_BASED_3

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 1)	3 Months Ended
STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 1)	Jan. 31, 2014	Jan. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Expected dividend yield	0.00%	0.00%
Expected volatility	'	69.00%
Expected volatility, Minimum	73.00%	'
Expected volatility, Maximum	74.00%	'
Risk-free interest rate, Minimum	1.40%	0.70%
Risk-free interest rate, Maximum	1.60%	0.80%
Expected term (years)	'	'6 years 1 month 6 days
Expected term (years), Minimum	'4 years	'
Expected term (years), Maximum	'5 years	'

STOCK_OPTIONS_AND_STOCK_BASED_4

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 2) (USD $)	3 Months Ended
In Millions, except Share data, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Number of Shares, Outstanding at October 31, 2013	3,320,910	'
Number of Shares, Granted	545,464	'
Number of Shares, Forfeited	-183,798	'
Number of Shares, Exercised	-115,866	'
Number of Shares, Outstanding and expected to vest at January 31, 2014	3,566,710	3,320,910
Number of Shares, Exercisable at January 31, 2014	1,843,938	'
Weighted Average Exercise Price, Outstanding at October 31, 2013 (in dollars per share)	$2.71	'
Weighted Average Exercise Price, Granted (in dollars per share)	$1.71	'
Weighted Average Exercise Price, Forfeited (in dollars per share)	$4	'
Weighted Average Exercise Price, Exercised (in dollars per share)	$1.55	'
Weighted Average Exercise Price, Outstanding and expected to vest at January 31, 2014 (in dollars per share)	$2.53	$2.71
Weighted Average Exercise Price, Exercisable at January 31, 2014 (in dollars per share)	$3.09	'
Stock Options To Employees and Non Employees Outstanding and expected to vest Weighted Average Remaining Contractual Term (in years)	'7 years 1 month 2 days	'6 years 5 months 5 days
Weighted Average Remaining Contractual Term, Exercisable (in years)	'4 years 11 months 8 days	'
Average Intrinsic Value, Outstanding at October 31, 2013	$0	'
Average Intrinsic Value, Outstanding and expected to vest at January 31, 2014	3.2	0
Average Intrinsic Value, Exercisable at January 31, 2014	$1.30	'

STOCK_OPTIONS_AND_STOCK_BASED_5

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details 3) (USD $)	3 Months Ended
	Jan. 31, 2014	Oct. 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Lower Range Limit	$0.64	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Upper Range Limit	$10.64	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	3,566,710	3,320,910
Weighted Average Remaining Contractual Term, Outstanding (in years)	'7 years 1 month 2 days	'6 years 5 months 5 days
Stock Options To Employees and Non Employees Outstanding Weighted Average Exercise Price (in dollars per share)	$2.53	$2.71
Share Based Payment Award Options Exercisable Number (in shares)	1,843,938	'
Weighted Average Exercise Price, Exercisable (in dollars per share)	$3.09	'
Range Of Exercise Prices One [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Lower Range Limit	$0.64	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Upper Range Limit	$1.21	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	579,606	'
Weighted Average Remaining Contractual Term, Outstanding (in years)	'9 years 2 months 1 day	'
Stock Options To Employees and Non Employees Outstanding Weighted Average Exercise Price (in dollars per share)	$1.11	'
Share Based Payment Award Options Exercisable Number (in shares)	184,606	'
Weighted Average Exercise Price, Exercisable (in dollars per share)	$0.89	'
Range Of Exercise Prices Two [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Lower Range Limit	$1.21	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Upper Range Limit	$1.54	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	521,506	'
Weighted Average Remaining Contractual Term, Outstanding (in years)	'9 years 9 months 4 days	'
Stock Options To Employees and Non Employees Outstanding Weighted Average Exercise Price (in dollars per share)	$1.50	'
Share Based Payment Award Options Exercisable Number (in shares)	127,756	'
Weighted Average Exercise Price, Exercisable (in dollars per share)	$1.38	'
Range Of Exercise Prices Three [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Lower Range Limit	$1.54	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Upper Range Limit	$1.56	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	359,977	'
Weighted Average Remaining Contractual Term, Outstanding (in years)	'4 years 4 months 17 days	'
Stock Options To Employees and Non Employees Outstanding Weighted Average Exercise Price (in dollars per share)	$1.56	'
Share Based Payment Award Options Exercisable Number (in shares)	331,609	'
Weighted Average Exercise Price, Exercisable (in dollars per share)	$1.56	'
Range Of Exercise Prices Four [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Lower Range Limit	$1.56	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Upper Range Limit	$2.04	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	108,981	'
Weighted Average Remaining Contractual Term, Outstanding (in years)	'6 years 3 months 22 days	'
Stock Options To Employees and Non Employees Outstanding Weighted Average Exercise Price (in dollars per share)	$1.80	'
Share Based Payment Award Options Exercisable Number (in shares)	83,556	'
Weighted Average Exercise Price, Exercisable (in dollars per share)	$1.79	'
Range Of Exercise Prices Five [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Lower Range Limit	$2.04	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Upper Range Limit	$2.10	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	864,368	'
Weighted Average Remaining Contractual Term, Outstanding (in years)	'9 years 4 months 10 days	'
Stock Options To Employees and Non Employees Outstanding Weighted Average Exercise Price (in dollars per share)	$2.10	'
Share Based Payment Award Options Exercisable Number (in shares)	166,095	'
Weighted Average Exercise Price, Exercisable (in dollars per share)	$2.10	'
Range Of Exercise Prices Six [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Lower Range Limit	$2.10	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Upper Range Limit	$3.98	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	359,896	'
Weighted Average Remaining Contractual Term, Outstanding (in years)	'5 years 5 months 8 days	'
Stock Options To Employees and Non Employees Outstanding Weighted Average Exercise Price (in dollars per share)	$3.14	'
Share Based Payment Award Options Exercisable Number (in shares)	269,129	'
Weighted Average Exercise Price, Exercisable (in dollars per share)	$3.29	'
Range Of Exercise Prices Seven [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Lower Range Limit	$3.98	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Upper Range Limit	$4.75	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	498,065	'
Weighted Average Remaining Contractual Term, Outstanding (in years)	'3 years 2 months 8 days	'
Stock Options To Employees and Non Employees Outstanding Weighted Average Exercise Price (in dollars per share)	$4.62	'
Share Based Payment Award Options Exercisable Number (in shares)	433,861	'
Weighted Average Exercise Price, Exercisable (in dollars per share)	$4.61	'
Range Of Exercise Prices Eight [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Lower Range Limit	$4.75	'
Stock Option Plans To Employees and Non Employees Exercise Price Range Upper Range Limit	$10.64	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	274,311	'
Weighted Average Remaining Contractual Term, Outstanding (in years)	'3 years 7 months 2 days	'
Stock Options To Employees and Non Employees Outstanding Weighted Average Exercise Price (in dollars per share)	$5.76	'
Share Based Payment Award Options Exercisable Number (in shares)	247,326	'
Weighted Average Exercise Price, Exercisable (in dollars per share)	$5.86	'

STOCK_OPTIONS_AND_STOCK_BASED_6

STOCK OPTIONS AND STOCK BASED COMPENSATION (Details Textual) (USD $)	3 Months Ended		12 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Oct. 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	3,566,710	'	3,320,910
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$1.10	$1.68	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value	$127,000	$1,000	'
Proceeds from Stock Options Exercised	180,000	1,600	'
Unrecognized Compensation Cost Related To Non Vested Stock Option Awards To Employees and Nonemployees	1,158,000	'	'
Expected Weighted Average Period Of Recognition Of Compensation Cost Related To Stock Options To Employees and Non Employees	'1 year	'	'
Stock Options Vested By Shares To Employees and Non Employees During Period	243,622	119,369	'
Stock Options Vested To Value Of Employees and Non Employees During Period	340,000	233,000	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	10,000	40,000	'
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Grant Date Fair Value	$14,000	$67,000	'
Estimated Percentage On Management Bonus, Share Based Compensation	'	'	67.00%
Stock Issued During Period, Shares, Share-Based Compensation, Net Of Forfeitures	66,081	'	147,000
Stock Options Granted To Employees and Non Employees During Period	545,464	'	'
Stock Option Plan 1999 [Member]	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	693,217	'	'
Stock Options To Employees and Non Employees Vested	1,843,938	'	'
Stock Option Plan 2010 [Member]	'	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'
Stock Options To Employees and Non Employees Outstanding Number (in shares)	2,873,493	'	'
Stock Options Authorized To Be Issued To Employees and Non Employees	3,500,000	'	'
Criteria For Increase In Number Of Shares Reserved For Options	'four percent (4%) of the total outstanding shares on the last day of the prior calendar year, subject to a maximum annual increase of 250,000.	'	'
Stock Options To Employees and Non Employees Options Grants	3,576,998	'	'
Stock Options To Employees and Non Employees Available For Future Grants	233,274	'	'
Number Of Options To Employees and Non Employed Previously Exercised Reduced	96,638	'	'
Common Stock Shares Granted	66,081	146,555	'
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Description and Terms	'The 2010 Plan options generally become exercisable over a four-year period (vesting 25% after one year, the remaining 75% vesting quarterly thereafter) and expire after ten years. During 2013, the majority of the employee incentive stock option grants vest on a schedule of 25% at the end of six months and 12.5% thereafter.	'	'
Stock Options To Employees and Non Employees Vested	1,843,938	'	'
Stock Options Granted To Employees and Non Employees During Period	296,595	'	'

EMPLOYEE_BENEFITS_Details_Text

EMPLOYEE BENEFITS (Details Textual) (USD $)	3 Months Ended
EMPLOYEE BENEFITS (Details Textual) (USD $)	Jan. 31, 2014	Jan. 31, 2013
Employee Benefits [Line Items]	'	'
Defined Contribution Plan, Employer Discretionary Contribution Amount	$45,000	$75,000

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details Textual) (Iron Mountain Incorporated ("IRM") [Member], USD $)	3 Months Ended
	Jan. 31, 2014
Iron Mountain Incorporated ("IRM") [Member]	'
Related Party Transaction [Line Items]	'
Related Party Transaction, Proceeds from Terminated Contract	$1,600,000
Revenue from Related Parties	550,000
Related party transaction, Gain Loss on Contract Termination	$1,050,000
Related party transaction, Number Of Shares Held By Related Party	582,524
Related Party Transaction, Terms and Manner of Settlement	'Included in the settlement was the return of title and ownership of the product developed to date for IRM along with return of any and all equipment purchased.