Datawatch (DWCH) 10-K 17 Dec 13 2013 FY Annual report Financial data

Document_And_Entity_Informatio

Document And Entity Information (USD $)	12 Months Ended
	Sep. 30, 2013	Dec. 03, 2013	Mar. 31, 2013
Document Information [Line Items]	'	'	'
Entity Registrant Name	'DATAWATCH CORP	'	'
Entity Central Index Key	'0000792130	'	'
Current Fiscal Year End Date	'--09-30	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Trading Symbol	'DWCH	'	'
Entity Common Stock, Shares Outstanding	'	8,529,549	'
Document Type	'10-K	'	'
Amendment Flag	'false	'	'
Document Period End Date	30-Sep-13	'	'
Document Fiscal Period Focus	'FY	'	'
Document Fiscal Year Focus	'2013	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Public Float	'	'	$68,247,510

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and cash equivalents	$10,312	$8,722
Accounts receivable, less allowance for doubtful accounts and sales returns of $63 in 2013 and $212 in 2012	6,622	4,391
Inventories	45	59
Prepaid expenses	939	532
Total current assets	17,918	13,704
Property and equipment	'	'
Office furniture and equipment	1,382	1,296
Software	492	492
Leasehold improvements	551	551
Property, Plant and Equipment, Gross	2,425	2,339
Less accumulated depreciation and amortization	-2,136	-2,058
Net property and equipment	289	281
Acquired intellectual property, net	13,834	7,745
Other intangible assets, net	8,880	792
Goodwill	28,152	0
Other long-term assets	248	283
Total assets	69,321	22,805
LIABILITIES AND SHAREHOLDERS’ EQUITY	'	'
Current portion of long-term debt and debt discount of $157 in 2013	1,877	900
Accounts payable	1,433	676
Accrued expenses	3,481	1,792
Deferred revenue	6,997	6,295
Total current liabilities	13,788	9,663
LONG-TERM LIABILITIES:	'	'
Note payable, net of unamortized debt discount of $703 in 2013 and $1,017 in 2012	2,108	2,983
Deferred revenue, long-term	214	265
Deferred tax liability	1,483	0
Other long-term liabilities	353	200
Total long-term liabilities	4,158	3,448
Total liabilities	17,946	13,111
COMMITMENTS AND CONTINGENCIES (Note 5)	'	'
SHAREHOLDERS’ EQUITY:	'	'
Common stock, par value $0.01; authorized: 20,000,000 shares; issued: 8,795,023 shares - 2013 and 6,372,465 shares - 2012; outstanding: 8,477,552 shares- 2013 and 6,358,219 shares -2012	88	64
Additional paid-in capital	72,726	26,710
Accumulated deficit	-20,021	-15,824
Accumulated other comprehensive loss	-1,278	-1,116
Stockholders Equity before Treasury Stock	51,515	9,834
Less treasury stock, at cost, 14,246 shares	-140	-140
Total shareholders’ equity	51,375	9,694
Total liabilities and shareholders’ equity	$69,321	$22,805

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2013	Sep. 30, 2012
In Thousands, except Share data, unless otherwise specified
Allowance for Doubtful Accounts Receivable, Current	$63	$212
Amortization Of Debt Discount	157	'
Debt Instrument, Unamortized Discount	$703	$1,017
Common Stock, Par or Stated Value Per Share	$0.01	$0.01
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	8,795,023	6,372,465
Common Stock, Shares, Outstanding	8,477,552	6,358,219
Treasury Stock, Shares	14,246	14,246

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
REVENUE:	'	'	'
Software licenses	$19,430	$16,800	$9,858
Maintenance	9,700	7,902	6,219
Professional services	1,166	1,304	1,808
Total revenue	30,296	26,006	17,885
COSTS AND EXPENSES:	'	'	'
Cost of software licenses	2,505	2,270	2,237
Cost of maintenance and services	2,440	2,530	2,537
Sales and marketing	18,482	12,263	6,268
Engineering and product development	3,893	2,790	2,502
General and administrative	6,793	4,610	4,274
Total costs and expenses	34,113	24,463	17,818
(LOSS)/INCOME FROM OPERATIONS	-3,817	1,543	67
Interest income and other income (expense), net	-427	-333	11
Foreign currency transaction (losses) gains	-41	-126	89
(LOSS)/INCOME FROM OPERATIONS BEFORE INCOME TAXES	-4,285	1,084	167
Benefit/(provision) for income tax	88	-50	-35
NET (LOSS)/INCOME	($4,197)	$1,034	$132
Net (loss)/income per share - basic: (in dollars per share)	($0.63)	$0.17	$0.02
Net (loss)/income per share - diluted: (in dollars per share)	($0.63)	$0.15	$0.02
Weighted-average shares outstanding - basic (in shares)	6,634	6,252	6,039
Weighted-average shares outstanding - diluted (in shares)	6,634	6,730	6,235

CONSOLIDATED_STATEMENTS_OF_SHA

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (USD $)	Total	CommonStock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	TreasuryStock [Member]
In Thousands, except Share data
BALANCE at Sep. 30, 2010	$5,679	$60	$23,826	($16,990)	($1,077)	($140)
BALANCE (in Shares) at Sep. 30, 2010	'	5,958,237	'	'	'	-14,246
Stock options exercised/vesting of restricted stock units	388	2	386	0	0	0
Stock options exercised/vesting of restricted stock units, (in Shares)	197,248	217,741	'	'	'	0
Share-based compensation expense	264	0	264	0	0	0
Translation adjustments	-121	0	0	0	-121	0
Net Income (Loss)	132	0	0	132	0	0
BALANCE at Sep. 30, 2011	6,342	62	24,476	-16,858	-1,198	-140
BALANCE (in Shares) at Sep. 30, 2011	'	6,175,978	'	'	'	-14,246
Stock options exercised/vesting of restricted stock units	261	2	259	0	0	0
Stock options exercised/vesting of restricted stock units, (in Shares)	100,328	196,487	'	'	'	0
Share-based compensation expense	879	0	879	0	0	0
Fair value of warrants	1,096	0	1,096	0	0	0
Translation adjustments	82	0	0	0	82	0
Net Income (Loss)	1,034	0	0	1,034	0	0
BALANCE at Sep. 30, 2012	9,694	64	26,710	-15,824	-1,116	-140
BALANCE (in Shares) at Sep. 30, 2012	'	6,372,465	'	'	'	-14,246
Issuance of common stock and equivalents in connection with the acquisition of Panopticon AB	42,644	22	42,622	0	0	0
Issuance of common stock and equivalents in connection with the acquisition of Panopticon AB (in Shares)	'	2,169,941	'	'	'	0
Stock options exercised/vesting of restricted stock units	198	2	196	0	0	0
Stock options exercised/vesting of restricted stock units, (in Shares)	67,000	252,617	'	'	'	0
Dissolution of DWE subsidiary	-125	0	-125	0	0	0
Share-based compensation expense	3,323	0	3,323	0	0	0
Fair value of warrants	1,100	'	'	'	'	'
Translation adjustments	-162	0	0	0	-162	0
Net Income (Loss)	-4,197	0	0	-4,197	0	0
BALANCE at Sep. 30, 2013	$51,375	$88	$72,726	($20,021)	($1,278)	($140)
BALANCE (in Shares) at Sep. 30, 2013	'	8,795,023	'	'	'	-14,246

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Net (loss) income	($4,197)	$1,034	$132
Other comprehensive (loss) income:	'	'	'
Foreign currency translation adjustments	162	-82	121
Comprehensive (loss) income	($4,359)	$1,116	$11

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'	'
Net (loss) income	($4,197)	$1,034	$132
Adjustments to reconcile net (loss) income to cash provided by operatingactivities:	'	'	'
Depreciation and amortization	2,327	1,220	753
Provision for doubtful accounts and sales returns	-149	63	-17
Loss on disposition of fixed assets	2	1	0
Share-based compensation expense	3,323	879	264
Non-cash interest expense on warrants - debt discount	157	79	0
Deferred income taxes	-83	0	0
Changes in operating assets and liabilities:	'	'	'
Accounts receivable	-1,308	-1,467	-727
Inventories	13	-10	-10
Prepaid expenses and other assets	-328	-222	-247
Accounts payable, accrued expenses and other liabilities	2,181	-206	632
Deferred revenue	456	2,585	367
Cash provided by operating activities	2,394	3,956	1,147
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'	'
Non-cash purchase of intellectual property	0	-8,616	0
Gain on disposition of investment	-374	0	0
Capitalized software development costs	-440	-54	0
Net cash received from acquisition of Panopticon	383	0	0
Purchases of equipment and fixtures	-154	-146	-128
Decrease (increase) in other assets	60	-3	-37
Decreases in restricted cash	0	0	89
Cash used in investing activities	-525	-8,819	-76
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'	'
Proceeds from exercise of stock options and vesting of restricted stock units	198	261	388
Advances/(repayments) on line of credit	0	1,500	0
Repayments on line of credit	0	-600	'
Repayments on debt	-2,056	'	'
Proceeds from issuance of note payable	2,000	4,000	0
Debt issuance costs	-79	-72	0
Cash provided by financing activities	63	5,089	388
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND EQUIVALENTS	-342	112	-128
INCREASE IN CASH AND EQUIVALENTS	1,590	338	1,331
CASH AND EQUIVALENTS, BEGINNING OF YEAR	8,722	8,384	7,053
CASH AND EQUIVALENTS, END OF YEAR	10,312	8,722	8,384
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'	'
Income taxes paid	38	92	32
Interest paid	$481	$239	$0

NATURE_OF_BUSINESS_AND_SUMMARY

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Business Description and Accounting Policies [Text Block]	'
	1.   NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Nature of Business
	Datawatch Corporation (the “Company” or “Datawatch”) designs, develops, markets and distributes business computer software products. The Company also provides services, including implementation and support of its software products, as well as training on their use and administration. The Company is subject to a number of risks including dependence on key individuals, competition from substitute products and larger companies and the need for successful ongoing development and marketing of products.
	Summary of Significant Accounting Policies
	Principles of Consolidation
	These consolidated financial statements include the accounts of Datawatch and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.  In 2013, the Company dissolved its’ international operation, Datawatch Europe Limited, and recorded a gain on disposition of investment of approximately $374,000.
	Accounting Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and judgments, which are evaluated on an on-going basis, that affect the amounts and disclosures reported in the Company’s consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to revenue recognition, the allowance for doubtful accounts, sales returns reserve, useful lives of property and equipment, the valuation of net deferred tax assets, acquired intellectual property and other intangible assets and share-based awards.
	The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.
	Revenue Recognition
	Revenue allocated to software products, specified upgrades and enhancements is recognized upon delivery of the related product, upgrades or enhancements. Revenue is allocated by vendor specific objective evidence (“VSOE”) of fair value to customer support (primarily maintenance) and is recognized ratably over the term of the support, and revenue allocated using VSOE to service elements (primarily training and consulting) is recognized as the services are performed. The residual method of revenue recognition is used for multi-element arrangements when the VSOE of the fair value does not exist for one of the delivered elements. Under the residual method, the arrangement fee is recognized as follows: (1) the total fair value of the undelivered elements, as supported by VSOE, is deferred and subsequently recognized as such items are delivered or completed and (2) the difference between the total arrangement fee and the amount allocated to the undelivered elements is recognized as revenue related to the delivered elements.
	The Company licenses its software products directly to end-users, through value added resellers and through distributors. Sales to distributors and resellers accounted for approximately 45%, 31% and 41% of total sales for the years ended September 30, 2013, 2012 and 2011, respectively. Revenue from the sale of all software products (when separately sold) is generally recognized at the time of shipment, provided there are no uncertainties surrounding product acceptance, the fee is fixed or determinable, collectability is reasonably assured, persuasive evidence of the arrangement exists and there are no significant obligations remaining. The Company’s software product offerings do not require customization. The Company’s software products can be installed and used by customers on their own with little or no configuration required. Multi-user licenses marketed by the Company are sold as a right to use the number of licenses, and the license fee revenue is recognized upon delivery of all software required to satisfy the number of licenses sold. Upon delivery, the licensing fee is payable without further delivery obligations by the Company.
	Datawatch software products are generally sold in multiple element arrangements which may include software licenses, professional services and customer support. In such multiple element arrangements, the Company applies the residual method in determining revenue to be allocated to the software license. In applying the residual method, the Company deducts from the sale proceeds the VSOE of fair value of the professional services and customer support in determining the residual fair value of the software license. The VSOE of fair value of the services and customer support is based on the amounts charged for these elements when sold separately. Professional services include advanced modeling, application design, implementation and configuration and process optimization with revenue recognized as the services are performed. These services are generally delivered on a time and materials basis, are billed on a current basis as the work is performed, and generally do not involve modification or customization of the software or any unusual acceptance clauses or terms. The Company has established VSOE of fair value for the majority of its professional services using the bell-shaped curve method. Customer support is typically provided under a maintenance agreement which provides technical support and rights to unspecified software maintenance updates and bug fixes on a when-and-if available basis. Revenue from customer support services is deferred and recognized ratably over the period of support (generally one year). Such deferred amounts are recorded as part of deferred revenue in the Company’s accompanying consolidated balance sheets. The Company has established VSOE of fair value for the majority of its customer support based on stated renewal rates only if the rate is determined to be substantive and falls within the Company’s customary pricing practices. VSOE of fair value for sales through the Company’s distribution channel was established using the bell-shaped curve method. VSOE calculations are updated and reviewed quarterly.
	The Company also licenses its enterprise software using a subscription model. At the time a customer enters into a binding agreement to purchase a subscription, the customer is invoiced for an initial 90 day service period and an account receivable and deferred revenue are recorded. Beginning on the date the software is installed at the customer site and is available for use by the customer, and provided that all other criteria for revenue recognition are met, the deferred revenue amount is recognized ratably over the period the service is provided. The customer is then invoiced every 90 days and revenue is recognized ratably over the period of the subscription. The subscription arrangement includes software, maintenance and unspecified future upgrades on a when-and-if available basis including major version upgrades. The subscription renewal rate is the same as the initial subscription rate. Subscriptions can be cancelled by the customer at any time by providing 90 days prior written notice following the first year of the subscription term
	The Company’s software products are sold under warranty against certain defects in material and workmanship for a period of 30 days from the date of purchase. The Company also offers a 30 day money-back guarantee on its Datawatch Modeler (formerly Monarch Professional) product sold directly to end-users. Additionally, the Company provides its distributors with stock-balancing rights. Revenue from the sale of software products to distributors and resellers is recognized at the time of shipment providing all other criteria for revenue recognition as stated above are met and (i) the distributor or reseller is unconditionally obligated to pay for the products, including no contingency as to product resale, (ii) the distributor or reseller has independent economic substance apart from the Company, (iii) the Company is not obligated for future performance to bring about product resale, and (iv) the amount of future returns can be reasonably estimated. The Company’s experience and history with its distributors and resellers allows for reasonable estimates of future returns. Among other things, estimates of potential future returns are made based on the inventory levels at, and the returns history with, the various distributors and resellers, which the Company monitors frequently.
	Allowance for Doubtful Accounts
	The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. The Company analyzes accounts receivable and the composition of the accounts receivable aging, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Actual results could differ from the allowances recorded, and this difference could have a material effect on the Company’s financial position and results of operations. Receivables are written off against these allowances in the period they are determined to be uncollectible.
	For the fiscal years ended September 30, 2013, 2012 and 2011, changes to and ending balances of the allowance for doubtful accounts were approximately as follows:
			2013			2012			2011
			(In thousands)
	Allowance for doubtful accounts balance - beginning of year		$	107		$	78		$	129
	Additions to the allowance for doubtful accounts			–			93			92
	Deductions against the allowance for doubtful accounts			-64			-64			-143
	Allowance for doubtful accounts balance - end of year		$	43		$	107		$	78
	Sales Returns Reserve
	The Company maintains reserves for potential future product returns from distributors. The Company estimates future product returns based on its experience and history with the Company’s various distributors and resellers as well as by monitoring inventory levels at such companies. Adjustments are recorded as increases or decreases in revenue in the period of adjustment. Actual returns have historically been within the range estimated by management. Actual results could differ from the reserve for sales returns recorded, and this difference could have a material effect on the Company’s financial position and results of operations.
	For the fiscal years ended September 30, 2013, 2012 and 2011, changes to and ending balances of the sales returns reserve were approximately as follows:
			2013			2012			2011
			(In thousands)
	Sales returns reserve balance - beginning of year		$	105		$	70		$	35
	Additions to the sales returns reserve			–			117			101
	Deductions against the sales returns reserve			-85			-82			-66
	Sales returns reserve balance - end of year		$	20		$	105		$	70
	Capitalized Software Development Costs
	The Company capitalizes certain software development costs as well as purchased software upon achieving technological feasibility of the related products. Software development costs incurred and software purchased prior to achieving technological feasibility are charged to engineering and product development expense as incurred. Commencing upon initial product release, capitalized costs are amortized to cost of software licenses using the straight-line method over the estimated life of the product (which approximates the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product), which is generally 4 to 24 months.
	For the fiscal years ended September 30, 2013, 2012 and 2011, amounts related to capitalized and purchased software development costs were approximately as follows:
			2013			2012			2011
			(In thousands)
	Capitalized and purchased software balance - beginning of year		$	30		$	14		$	396
	Capitalized software development costs			440			54			–
	Amortization of capitalized software development costs and			-120			-38			-382
	purchased software
	Capitalized and purchased software balance - end of year		$	350		$	30		$	14
	Cash and Cash Equivalents
	Cash and cash equivalents include cash on hand, cash deposited with banks and highly liquid securities consisting of money market investments with original maturities of 90 days or less.
	Concentration of Credit Risks and Major Customers
	Financial instruments, which potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company’s cash is maintained with what management believes to be a high-credit quality financial institution.  At times, deposits held at this bank may exceed the federally insured limits.  Management believes that the financial institutions that hold the Company’s deposits are financially sound and have minimal credit risk. Risks associated with cash and cash equivalents are mitigated by the Company’s investment policy, which limits the Company’s investing of excess cash into only money market mutual funds.
	The Company licenses its products and services to U.S. and non-U.S. distributors and other software resellers, as well as to end users, under customary credit terms. Two customers, Ingram Micro, Inc. and Lifeboat Distribution, individually accounted for the following percentages of total revenue and accounts receivable for the periods indicated:
			Percentage of total revenue												Percentage of total
			for the years ended												accounts receivable at
			September 30,												September 30,
			2013				2012				2011				2013				2012
	Ingram Micro, Inc.			*				*				13	%			*				*
	Lifeboat Distribution			20	%			17	%			15	%			11	%			19	%
	* Revenues were less than 10% of the Company’s total revenue and accounts receivable in the respective period.
	The Company licenses to Lifeboat Distribution under a distribution agreement which automatically renews for successive one-year terms unless terminated. On December 6, 2011, the Company exercised a 90 day notice provision under a distribution agreement with Ingram Micro, Inc. to terminate its relationship with that distributor. The termination was effective March 6, 2012. Effective March 7, 2012, Lifeboat Distribution became the sole North American distributor for the Company’s Datawatch Modeler platform. In addition to the customers listed above, one additional customer, Unisys Belgium, individually accounted for approximately 24% of total accounts receivable at September 30, 2012. Two additional customers, Xerox and Thomson Reuters, accounted for approximately 19% and 23%, respectively of total accounts receivable at September 30, 2013. Other than these customers, no other customer constitutes a significant portion (more than 10%) of revenues or accounts receivable for the periods presented. The Company performs ongoing credit evaluations of its customers and generally does not require collateral.
	Deferred Revenue
	Deferred revenue consisted of the following at September 30:
			2013			2012
			(In thousands)
	Maintenance		$	6,907		$	5,167
	License			69			1,257
	Other			235			136
Total			7,211			6,560
Less: Long-term portion of deferred maintenance			-214			-265
Current portion of deferred revenue		$	6,997		$	6,295
Maintenance deferred revenue consists of the unearned portion of customer support services provided by the Company to customers who purchased maintenance agreements for the Company’s products. Maintenance revenues are recognized on a straight-line basis over the term of the maintenance period, generally 12 months.
Other deferred revenue consists of deferred subscription and professional services revenue generated from arrangements that are invoiced in accordance with the terms and conditions of the arrangement but do not meet all the criteria for revenue recognition and are, therefore, deferred until all revenue recognition criteria are met.
Inventories
Inventories consist of software components, primarily software manuals, compact disks and retail packaging materials. Inventories are valued at the lower of cost (first-in, first-out method) or market.
Property and Equipment
Property and equipment consists of office equipment, furniture and fixtures, software and leasehold improvements, all of which are recorded at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets or over the terms, if shorter, of the related leases. Useful lives and lease terms range from three to seven years. Depreciation and amortization expense related to property and equipment was $145,000, $137,000 and $197,000, respectively, for the years ended September 30, 2013, 2012 and 2011.
Long-Lived Assets
The Company periodically evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful lives of long-lived assets and certain identifiable intangibles may warrant revision or that the carrying value of these assets may be impaired. To determine whether assets have been impaired, the estimated undiscounted future cash flows for the estimated remaining useful life of the respective assets are compared to the carrying value. To the extent that the undiscounted future cash flows are less than the carrying value, the fair value of the asset is determined and an impairment is recognized. If such fair value is less than the current carrying value, the asset is written down to its estimated fair value.
Acquired Intellectual Property
On March 30, 2012, the Company acquired the intellectual property which consisted primarily of the source code underlying its Datawatch Modeler (formerly Monarch Professional) and Datawatch Automator (formerly Data Pump) products pursuant to an Option Purchase Agreement dated as of April 29, 2004 by and among the Company, Personics Corporation, Raymond J. Huger and Math Strategies, as amended (the “Option Agreement”). Under the formula contained in the Option Agreement, the purchase price paid for the intellectual property assets was approximately $8,541,000 which was calculated based on a multiple of the aggregate royalties paid to Math Strategies by the Company for the four fiscal quarters preceding the exercise of the option. Additionally, the Company capitalized approximately $75,000 in closing costs and adjustments pursuant to a Supplemental Agreement dated March 30, 2012 between the Company and Raymond J. Huger. In fiscal 2013, the Company acquired additional intellectual property as noted in the Panopticon transaction totaling $7,900,000. The acquired intellectual property assets are being amortized to cost of software licenses using the straight-line method over the estimated life of the asset, ranging from five to seven and a half years. Amortization expense related to the acquired intellectual property assets for the years ended September 30, 2013 and 2012 was approximately $1,811,000 and $871,000, respectively. The estimated future amortization expense related to the acquired intellectual property is as follows (in thousands):
Fiscal Years Ending September 30,
2014		$	2,777
2015			2,777
2016			2,777
2017			1,905
2018			1,053
Thereafter			2,545
Total estimated future amortization expense		$	13,834
Intangible Assets
Intangible assets consist of acquired intellectual property. Other intangible assets consist of internally developed software, trade names, patents and customer lists acquired through business combinations. The values allocated to the majority of these intangible assets are amortized using the straight-line method over the estimated useful life of the related asset and are recorded in cost of software licenses. The values allocated to customer relationships are amortized using the straight-line method over the estimated useful life of the related asset and are recorded in sales and marketing expenses. The values allocated to loan acquisition costs are amortized using the straight-line method over the life of the debt and are recorded in interest income and other income (expense), net. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable and an impairment loss is recognized when it is probable that the estimated cash flows are less than the carrying amount of the asset.
Other intangible assets, net, were comprised of the following at September 30, 2013 and 2012:
		Weighted		September 30, 2013									September 30, 2012
		Average		Gross									Gross
Identified Intangible		Useful Life		Carrying			Accumulated			Net Carrying			Carrying			Accumulated			Net Carrying
Asset		in Years		Amount			Amortization			Amount			Amount			Amortization			Amount
				(In thousands)
Capitalized software		1		$	1,630		$	1,280		$	350		$	1,190		$	1,160		$	30
Purchased software		5			–			–			–			700			700			–
Patents		20			160			73			87			160			65			95
Customer lists		14			8,990			1,401			7,589			1,790			1,195			595
Assembled Workforce		–			620			–			620			–			–			–
Non-compete agreements		1			–			–			–			640			640			–
Trademark		3			120			4			116			21			21			–
Loan acquisition costs		4			167			49			118			88			16			72
Total				$	11,687		$	2,807		$	8,880		$	4,589		$	3,797		$	792
The intangible asset amounts amortized to cost of software licenses totaled approximately $128,000, $46,000 and $390,000 for fiscal 2013, 2012 and 2011, respectively. Intangible asset amounts amortized to sales and marketing expense totaled approximately $206,000, $166,000 and $166,000 for fiscal 2013, 2012 and 2011, respectively. Intangible asset amounts amortized to interest expense totaled approximately $33,000 and $16,000 for fiscal 2013 and 2012, respectively. There were no intangible asset amounts amortized to interest income and other income (expense), net in fiscal year 2011. Intangible asset amounts amortized to general and administrative expense totaled approximately $4,000 for fiscal 2013.  There were no intangible assets amortized to general and administrative for fiscal years 2012 and 2011. During the fiscal year 2013, the Company wrote off fully amortized intangible assets totaling approximately $1,361,000.
The estimated future amortization expense related to amortizing intangible assets was as follows (in thousands):
Fiscal Years Ending September 30,
2014		$	1,096
2015			733
2016			633
2017			494
2018			985
Thereafter			4,939
Total estimated future amortization expense		$	8,880
Goodwill
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of acquired businesses. Indefinite-lived intangibles are intangible assets whose useful lives are indefinite in that their lives extend beyond the foreseeable horizon – that is there is no foreseeable limit on the period of time over which they are expected to contribute to the cash flows of the reporting entity. The Company accounts for goodwill in accordance with the Financial Accounting Standards Board (“FASB”), under which goodwill and intangible assets having indefinite lives are not amortized but instead are tested for impairment annually or more frequently if changes in circumstances or the occurrence of events indicate possible impairment.
Financial Instruments
The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable and accounts payable and their carrying values approximate fair value because of their short-term nature.
Fair Value Measurements
Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company is required to classify certain assets and liabilities based on the following fair value hierarchy.
	·	Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;
	·	Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and
	·	Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
The following table presents the Company’s assets and liabilities that are measured and disclosed at fair value on a recurring basis at September 30, 2013 and 2012 (in thousands):
		September 30, 2013												September 30, 2012
		Fair Value									Estimated			Fair Value								Estimated
		Measurement									Fair			Measurement									Fair
		Using Input Types									Value			Using Input Types								Value
		Level 1			Level 2			Level 3			Total			Level 1			Level 2			Level 3		Total
Assets:
Money market funds		$	2,234		$	–		$	–		$	2,234		$	2,234		$	–		$	–	$	2,234
Total assets at fair value			2,234			–			–			2,234			2,234			–			–		2,234
Liabilities:
Line of credit		$	900		$	–		$	–		$	900		$	900		$	–		$	–	$	900
Note payable			3,945			–			–			3,945			4,000			–			–		4,000
Debt discount			–			-860			–			-860			–			-1,017			–		-1,017
Total liabilities at fair value		$	4,845		$	-860		$	–		$	3,985		$	4,900			-1,017			–		3,883
Income Taxes
Deferred income taxes are provided for the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and operating loss carryforwards and credits. Valuation allowances are recorded to reduce the net deferred tax assets to amounts the Company believes are more likely than not to be realized.
The Company follows the accounting guidance for uncertain tax positions. This guidance clarifies the accounting for income taxes by prescribing the minimum threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition.
Net (Loss) Income Per Share
Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the impact, when dilutive, of the exercise of stock options and the vesting of restricted stock units using the treasury stock method.
The following table presents the options and restricted stock units that were not included in the computation of diluted net income per share, because the effect was antidilutive for the years ended 2012 and 2011:
		2013			2012			2011
Quantity of option shares not included			-			123,105			105,819
Weighted-average exercise price		$	-		$	12.3		$	5.18
As the Company was in a net loss position for the year end September 30, 2013, all common stock equivalents in fiscal 2013 were antidilutive.
Foreign Currency Translations and Transactions
Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at rates in effect at each balance sheet date. Revenues, expenses and cash flows are translated into U.S. dollars at average rates prevailing during the respective period. The related translation adjustments are reported as a separate component of shareholders’ equity under the heading “Accumulated Other Comprehensive Loss.” Included in comprehensive (loss) income are the foreign currency translation adjustments. Foreign currency translation losses arising during fiscal 2013 and 2011 were approximately $162,000 and $121,000. Foreign currency translation gain arising during fiscal 2012 was approximately $82,000.
Gains and losses resulting from transactions that are denominated in currencies other than the applicable unit’s functional currency are included in the operating results of the Company and were a loss of $41,000 and $126,000 for the years ended September 30, 2013 and 2012, respectively, and gain of $89,000, for the year ended September 30, 2011. The foreign currency loss in 2012 was attributable primarily to the settlement of intercompany balances due to the dissolution of one of the Company’s foreign subsidiaries and the repatriation of international funds to the U.S. required by the Company’s line of credit facility which was entered into in March 2012.
Advertising and Promotional Materials
Advertising costs are expensed as incurred and amounted to approximately $290,000, $9,000 and $138,000 in fiscal years 2013, 2012 and 2011, respectively. Direct mail/direct response costs are expensed over the period in which the associated revenue is recognized, generally three to six months from the date of the mailing. Direct mail expense was approximately $7,000, $9,000 and $52,000, in fiscal 2013, 2012, and 2011, respectively. There were no deferred direct mail/direct response costs at September 30, 2013, 2012 or 2011.
Share-Based Compensation
All share-based awards, including grants of employee stock options and restricted stock units, are recognized in the financial statements based on their fair value at date of grant.
The Company recognizes the fair value of share-based awards over the requisite service period of the individual awards, which generally equals the vesting period. All of the Company’s share-based awards are accounted for as equity instruments and there have been no liability awards granted. See additional share-based compensation disclosure in Note 7 to the Company’s accompanying consolidated financial statements.
Segment Information
The Company has determined that it has only one reportable segment. The Company’s chief operating decision maker, its Chief Executive Officer, does not manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and operating results. See Note 9 for information about the Company’s revenue by product lines and geographic operations.
Guarantees and Indemnifications
The Company’s software products are sold under warranty against certain defects in material and workmanship for a period of 30 days from the date of purchase. The Company has never incurred significant expense under its product or service warranties and does not expect to do so in the future. As a result, the Company believes its exposure related to these warranty agreements is minimal. Accordingly, there are no liabilities recorded for warranty claims as of September 30, 2013 or 2012.
The Company enters into indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company agrees to indemnify, hold harmless, and to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally its customers, in connection with any patent, copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes its exposure related to these agreements is minimal. Accordingly, the Company has no liabilities recorded for these potential obligations as of September 30, 2013 or 2012.
Certain of the Company’s agreements also provide for the performance of services at customer sites. These agreements may contain indemnification clauses, whereby the Company will indemnify the customer from any and all damages, losses, judgments, costs and expenses for acts of its employees or subcontractors resulting in bodily injury or property damage. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has general and umbrella insurance policies that would enable it to recover a portion of any amounts paid. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes its exposure related to these agreements is minimal. Accordingly, the Company has no liabilities recorded for these potential obligations as of September 30, 2013 or 2012.
As permitted under Delaware law, the Company has agreements with its directors whereby the Company will indemnify them for certain events or occurrences while the director is, or was, serving at the Company’s request in such capacity. The term of the director indemnification period is for the later of ten years after the date that the director ceases to serve in such capacity or the final termination of proceedings against the director as outlined in the indemnification agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company’s director and officer insurance policy limits the Company’s exposure and would enable it to recover a portion of any future amounts paid. As a result of its insurance policy coverage for directors, the Company believes its exposure related to these indemnification agreements is minimal. The Company has no liabilities recorded for these potential obligations as of September 30, 2013 or 2012.
Research and Development Costs
Research and development costs are expenses as incurred.
Recent Accounting Pronouncements
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 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 .” This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The guidance outlines the events when cumulative translation adjustments should be released into net income and is intended by FASB to eliminate some disparity in current accounting practice. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013 (fiscal 2015). The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations.
In July 2012, the FASB issued ASU 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” This ASU simplifies how entities test indefinite-lived intangible assets for impairment which improve consistency in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in the previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations.
In June 2011, the FASB issued an ASU that provides amendments on the presentation of comprehensive income. The amendments require that all nonowner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. The amendments do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The amendments do not change the option for an entity to present components of other comprehensive income either net of related tax effects or before related tax effects, with one amount shown for the aggregate income tax expense or benefit related to the total of other comprehensive income items. In both cases, the tax effect for each component must be disclosed in the notes to the financial statements or presented in the statement in which other comprehensive income is presented. The amendments do not affect how earnings per share is calculated or presented. This amendment was effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and should be applied retrospectively. This ASU was adopted in the first quarter of fiscal 2013 and the Company elected the two-statement approach.
The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its consolidated financial statements.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Sep. 30, 2013
Business Combinations [Abstract]	'
Business Combination Disclosure [Text Block]	'
	2.       ACQUISITIONS
	Panopticon Software AB
	The Company acquired all of the outstanding shares of Panopticon Software, AB and subsidiaries (“Panopticon”), a privately held Swedish Company specializing in the delivery of real-time visual data discovery solutions, under a stock purchase agreement dated June 14, 2013, which closed on August 28, 2013. As a result of this transaction, the Company has acquired technologies to enable it to expand its product platform and increase its addressable market. The Company accounted for this acquisition in accordance with Accounting Standards Codification 805, Business Combinations (“ASC 805”). The purchase consideration included $175,000 in seller financing pertaining to the Company’s direct acquisition of Panopticon’s U.S. subsidiary, Panopticon Software, Inc. and 1,866,716 Datawatch common shares, with an additional 216,994 shares held back for a period of 15 months to secure indemnification obligations of the Panopticon sellers under the share purchase agreement, and 86,231 restricted stock units. The shares issued were valued at approximately $42,644,000 ($23.12 per share). The shares issued as consideration at closing are subject to a contractual lockup restriction which precludes the sale of such shares without the Company’s prior consent for a period of six months following the transaction date, although the Company lifted the restriction with respect to approximately 40% of such shares effective December 12, 2013. In addition, the restricted stock units issued as consideration are subject to vesting periods ranging from three to six months. Panopticon’s operating results are reflected in the accompanying consolidated financial statements as of the acquisition date (August 28, 2013). The Company has allocated the cost to acquire Panopticon to its identifiable tangible and intangible assets and liabilities, with the remaining amount classified as goodwill.
	The estimated fair value of net assets acquired and net liabilities acquired in the of Panopticon transaction are summarized as follows:
		Amount
	Current assets	$	1,336
	Property, plant and equipment		2
	Other intangible assets		15,840
	Goodwill		28,152
	Obligations under deferred revenue		-189
	Accounts payable and accrued expenses		-756
	Deferred income taxes		-1,566
	Purchase Price	$	42,819
	Less:
	Common stock issued	$	-42,644
	Seller financing		-175
	Cash and cash equivalents acquired		-383
	Net cash provided by acquisition	$	383
	Fair value of intangible assets was determined using a combination of the income approach and the cost approach and relief from royalty method. As the acquisition was a stock acquisition, the goodwill recognized will not be deductible for tax purposes. In addition, the Company incurred approximately $1,000,000 of acquisition related costs in fiscal 2013 and these costs are included in general and administrative expense in the accompanying consolidated statement of operations.
	Management is responsible for the valuation of net assets acquired and considered a number of factors, including valuations and appraisals, when estimating the fair values and estimated useful lives of acquired assets and liabilities. At September 30, 2013, the allocation of the purchase price has been finalized.
	The intangible assets, excluding goodwill, are being amortized on a straight-line basis over their estimated lives as follows (in thousands):
		Fair		Estimated
		Value		Lives
	Customer Relationships	$	7,200		15.0 years
	Developed Technology		7,900		7.5 years
	Trade Name		120		2.5 years
	Assembled Workforce		620		Indefinite
	Total intangible assets	$	15,840
	The following unaudited pro forma financial information reflects the combined results of operations for the fiscal years ended September 30, 2013 and September 30, 2012, assuming that Panopticon was acquired at the beginning of each respective fiscal period.  This information does not necessarily reflect the results of operations that would have occurred had the acquisitions taken place at the beginning of the period, and is not necessarily indicative of the results which may be obtained in the future (in thousands, except per share data):
		September 30,
		2013		2012
	Total revenue	$	33,271	$	28,828
	Net income (loss)		-6,542		-2,639
	Net income (loss) per share
	Basic and diluted	$	-0.79	$	-0.33
	Number of weighted average shares
	Basic and diluted		8,322		8,117

ACCRUED_EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Sep. 30, 2013
Accrued Liabilities, Current [Abstract]	'
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	'
	3.     ACCRUED EXPENSES
	Accrued expenses consisted of the following at September 30:
		2013		2012
		(In thousands)
	Accrued royalties and commissions	$	1,483	$	809
	Accrued bonus		606		229
	Accrued other		139		96
	Accrued professional fees and consulting		417		230
	Accrued salaries and benefits		295		162
	Accrued acquisition fees		159		–
	Accrued travel and entertainment		165		46
	Accrued taxes		89		42
	Accrued marketing		85		178
	Accrued severance		43		-
	Total	$	3,481	$	1,792

FINANCING_ARRANGEMENTS

FINANCING ARRANGEMENTS	12 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	4.      FINANCING ARRANGEMENTS
	Revolving Line of Credit and Term Note
	In connection with the acquisition of intellectual property underlying its Datawatch Modeler and Datawatch Automator products, on March 30, 2012, the Company entered into a $2,000,000 revolving credit facility with Silicon Valley Bank (“SVB”), pursuant to a Loan and Security Agreement with SVB. On March 30, 2012, the Company borrowed $1,500,000 under this revolving credit facility. The revolving line of credit under the SVB facility terminates on March 29, 2014. On that date, the principal amount of all advances then outstanding under the revolving line and all unpaid interest thereon will become due and payable. The principal amount outstanding under the revolving line accrues interest at a floating rate per annum equal to 1.5% above the prime rate, with the prime rate having a floor under the SVB agreement of 3.25%. The Company can borrow under the SVB revolving line of credit based on a formula percentage of its accounts receivable balance. Additionally, the SVB facility requires that the Company maintain certain net asset and net income ratios. The Company repaid $600,000 under the line of credit in September 2012. The principal amount outstanding under the revolving line of credit at September 30, 2013 and 2012 was $900,000. Accrued interest on the revolving line of credit as of September 30, 2013 was approximately $4,000.
	In connection with the first amendment to the MCRC agreement (discussed in the following section under the caption “Subordinated Note and Warrants”), on August 15, 2013, the Company entered into an amendment to the SVB agreement which provided for an advance (“Term Loan Advance”) of $2,000,000 which was used to reduce the outstanding obligations to MCRC. After repayment, the Term Loan Advance cannot be re-borrowed. On August 15, 2016, the principal amount of the Term Loan Advance outstanding and all unpaid interest thereon will become due and payable.  The principal amount outstanding under the Term Loan Advance accrues interest at a floating per annum rate equal to two and one half percent (2.5%) above the Prime Rate (3.25%) and is payable monthly.  The second amendment to the SVB agreement also amended the financial covenants and requires that Company maintain certain liquidity ratios and minimum EBITDA balances.  As of September 30, 2013, approximately $1,945,000 remains outstanding. Accrued interest on the note as of September 30, 2013 was approximately $9,000.
	The Company was in compliance with the covenants under its Loan and Security Agreement at September 30, 2013. The Company’s obligations under the SVB facility are secured by substantially all of the Company’s assets other than intellectual property.
	Future principal payments related to the revolving line of credit and term note are as follows (in thousands):
	Fiscal Years Ended September 30,
	2014	$	1,567
	2015		667
	2016		611
	Thereafter		-
	Total future principal payments	$	2,845
	Subordinated Note and Warrants
	Also in connection with the intellectual property acquisition on March 30, 2012, the Company entered into a Note and Warrant Purchase Agreement with Massachusetts Capital Resource Company (“MCRC”), the terms of which include a $4,000,000 subordinated note and warrants for 185,000 shares of the Company’s common stock. The subordinated note issued to MCRC has a maturity date of February 28, 2019, with interest due monthly on the unpaid principal amount of the note at the rate of 10% per annum in arrears. The subordinated note also contains interest rate premiums on any optional redemption of principal payments during the first three years of the note agreement. Additionally, beginning on March 31, 2014 and on the last day of each month thereafter until the maturity date, the Company will make principal payments of $66,667 per month. The Company is also required under the MCRC agreement to maintain certain interest coverage and leverage ratios.
	On August 15, 2013, the Company entered into the first amendment to the MCRC agreement which provided for a one-time redemption of $2,000,000 in principal amount, together with interest, at a rate of 10% per annum, due on the amount redeemed through the date of redemption, and a premium equal to 3% of the principal amount.  In addition, this amendment allowed for a reduction in interest from 10% per annum in arrears to 8% per annum in arrears immediately following the one-time redemption.  On August 15, 2013, the Company exercised its’ one-time redemption right and made a payment of $2,000,000 to pay-down the principal, plus accrued interest in the amount of approximately $23,000 and premium in the amount of approximately $60,000.
	The Company was not in compliance with the covenants under the Note and Warrant Purchase Agreement at September 30, 2013 and it received a waiver of non-compliance from MCRC.
	Future principal payments related to the subordinated note are as follows (in thousands):
	Fiscal Years Ended September 30,
	2014	$	467
	2015		673
	Thereafter		860
	Total future principal payments	$	2,000
	The warrants issued to MCRC are exercisable at any time prior to the later of the repayment in full of the MCRC note or February 28, 2019 at a purchase price per share of $11.54, which is equal to the average closing price of the Company’s common stock for the 45 trading days prior to the issuance of the warrants on March 30, 2012. The number of shares issuable upon exercise of the warrants is subject to adjustment in connection with stock splits and other events impacting the Company’s common stock generally, however, the warrants do not provide the holder with any anti-dilution protection.
	The Company accounted for the borrowing under the Note and Warrant Purchase Agreement in accordance with the guidance prescribed in the Financial Accounting Standards Board Accounting Standard Codification Topic 470-20, “Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants” (“ASC 470-20”). In accordance with ASC 470-20, the value of the stock purchase warrants is considered an Original Issue Discount (“OID”) which is required to be amortized over the life of the note as interest expense with a corresponding credit to notes payable.  The fair value of the warrants on March 30, 2012, as determined under the Accounting Standard Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), was approximately $1,100,000 which is included in additional paid-in capital in the Company's accompanying consolidated balance sheets at September 30, 2012. The Company used the Black-Scholes pricing model to calculate the fair value of the warrants which included the following key assumptions: the expected life of the warrants (7 years), stock price volatility (68.18%), risk-free interest rate (1.61%) and dividend yield (0%).
	The unamortized debt discount at September 30, 2013 and 2012 was approximately $860,000 and $1,017,000, respectively, which will be amortized to interest expense over the life of the subordinated note which is seven years. During the years ended September 30, 2013 and 2012, interest expense related to the warrants was approximately $157,000 and $79,000, respectively.
	The estimated future amortization expense related to the debt discount is as follows (in thousands):
	Fiscal Years Ended September 30,
	2014	$	157
	2015		157
	2016		157
	2017		157
	2018		157
	Thereafter		75
	Total estimated future amortization of debt discount	$	860

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies Disclosure [Text Block]	'
	5.       COMMITMENTS AND CONTINGENCIES
	Leases
	The Company leases various facilities and equipment in the U.S. and overseas under non-cancelable operating leases which expire through 2016. The lease agreements generally provide for the payment of minimum annual rentals, pro-rata share of taxes, and maintenance expenses. Rental expense for all operating leases was approximately $545,000, $454,000, and $352,000 for the years ended September 30, 2013, 2012 and 2011, respectively. Certain of the Company's facility leases include options to renew.
	As of September 30, 2013, minimum rental commitments under non-cancelable operating leases are as follows (in thousands):
	Years Ending September 30,
	2014	$	452
	2015		209
	2016		152
	Total future minimum lease payments	$	813
	Royalties
	Prior to the acquisition of intellectual property underlying its Datawatch Modeler and Datawatch Automator products disclosed above to the accompanying consolidated financial statements, the Company was obligated to pay royalties up to 50% on revenue generated by the sale of certain licensed software products. Royalty expense included in cost of software licenses was approximately $194,000, $1,161,000 and $1,630,000 for the years ended September 30, 2013, 2012 and 2011, respectively. Minimum royalty obligations were insignificant for fiscal years 2013, 2012 and 2011. As a result of the acquisition of the intellectual property, the Company is no longer required to pay royalties related to its Datawatch Modeler and Datawatch Automator products.
	Contingencies
	From time to time, the Company is subject to claims and may be party to actions that arise in the normal course of business. The Company is not party to any litigation that management believes will have a material adverse effect on the Company's consolidated financial condition or results of operations.

TAXES

TAXES	12 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	6.       TAXES
	(Loss) income from operations before income taxes consists of the following for the years ended September 30:
		2013		2012		2011
		(In thousands)
	Domestic	$	-2,139	$	1,253	$	257
	Foreign		-2,146		-169		-90
	Total	$	-4,285	$	1,084	$	167
	The (benefit) provision for income taxes consisted of the following for the years ended September 30:
		2013		2012		2011
		(In thousands)
	Current:
	Federal	$	-4	$	4	$	–
	State		-1		21		11
	Foreign		–		25		25
			-5		50		36
	Deferred:
	Federal		-1,070		-391		-185
	State		-293		-3		-1
	Foreign		-83		–		–
	Change in valuation allowance		1,363		394		185
			-83		–		-1
	Total (benefit) provision	$	-88	$	50	$	35
	At September 30, 2013, the Company had U.S. federal tax loss carryforwards of approximately $8,174,000, expiring at various dates through 2032, including approximately $182,000 resulting from the Mergence acquisition during 2004 which are subject to additional annual limitations as a result of the changes in Mergence’s ownership, and had approximately $1,770,000 in state tax loss carryforwards, which also expire at various dates through 2032. Approximately $1,579,000 of the net operating loss carryforwards relate to tax deductions from stock-based compensation, which will be recorded as additional paid-in capital when realized. These loss carryforwards are available to reduce future federal, state and foreign taxable income but are subject to review and possible adjustment by the appropriate taxing authorities. The loss carryforwards, which may be utilized in any future period, may be subject to limitations based upon changes in the ownership of the Company’s stock. An alternative minimum tax credit of approximately $154,000 is available to offset future regular federal taxes. Research and development credits of approximately $846,000 expire beginning in 2014. In addition, the Company has the following net operating loss carryforwards: U.K. losses of  approximately $7,405,000 with no expiration date, Australia losses of  approximately $4,023,000 with no expiration date, Germany losses of  approximately $1,305,000 with no expiration date, Singapore losses of  approximately $1,230,000 with no expiration date, and Sweden losses of approximately $8,966,000 with no expiration date.
	The components of the Company’s net deferred tax assets are as follows at September 30:
		2013		2012		2011
		(In thousands)
	Deferred tax liabilities:
	Prepaid expenses	$	-86	$	-47	$	-91
	Acquired intangibles		-3,456		–		-40
			-3,542		-47		-131
	Deferred tax assets:
	Net operating loss carryforwards		7,717		5,493		5,146
	Research and development credits		1,120		778		624
	Alternative minimum tax credits		154		154		164
	Accounts and notes receivable reserves		40		105		27
	Depreciation and amortization		1,861		1,446		1,241
	Other		158		-300		165
			11,050		7,676		7,367
	Total		7,508		7,629		7,236
	Valuation allowance		-8,991		-7,629		-7,236
	Deferred tax liability, net	$	-1,483	$	–	$	–
	With the exception of Sweden, the valuation allowance relates to the Company’s U.S. and foreign net operating losses and other deferred tax assets and is recorded based upon the uncertainty surrounding their realizability, as these assets can only be realized via profitable operations in the respective tax jurisdictions. The Company records a deferred tax asset or liability based on the difference between the financial statement and tax basis of assets and liabilities, as measured by enacted tax rates assumed to be in effect when these differences reverse. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence including its past operating results, the existence of cumulative income in the most recent fiscal years, changes in the business in which the Company operates and its forecast of future taxable income. In determining future taxable income, the Company is responsible for assumptions utilized including the amount of federal, state and international pre-tax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies.
	These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates that the Company is using to manage the underlying business. Despite having net income for book purposes, the Company has experienced cumulative tax losses on a three year running basis covering the years ended September 30, 2013, 2012 and 2011. Accordingly, as of September 30, 2013, the Company determined that it is more likely than not that the deferred tax assets will not be realized in all of its jurisdictions with the exception of Sweden and a full valuation allowance has been recorded in the U.S., U.K., Australia, Germany, and Singapore.
	The following table reconciles the Company’s tax provision based on its effective tax rate to its tax provision based on the federal statutory rate of 34% for the years ended September 30, 2013, 2012 and 2011 (in thousands):
		2013		2012		2011
	Provision at federal statutory rate	$	-1,457	$	369	$	57
	State, net of federal impact		-303		14		7
	Foreign income taxes		-268		25		25
	Valuation allowance increase		1,363		394		185
	Return to provision adjustments		3		-256		-181
	Foreign deferred tax asset rate change and true-up		39		-369		–
	Stock-based compensation		316		–		–
	Acquisition Costs		339		–		–
	Other		-120		-127		-58
	(Benfit) provision for income taxes	$	-88	$	50	$	35
	Provision for Uncertain Tax Positions
	The Company applies the accounting requirements for uncertain tax positions which provide a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns.
	In accordance with these requirements, the Company first determines whether a tax authority would “more likely than not” sustain its tax position if it were to audit the position with full knowledge of all the relevant facts and other information. For those tax positions that meet this threshold, the Company measures the amount of tax benefit based on the largest amount of tax benefit that the Company has a greater than 50% chance of realizing in a final settlement with the relevant authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations.
	At October 1, 2010, the Company had a cumulative tax liability of  approximately $150,000 related to foreign tax exposure. During each of the fiscal years ended September 30, 2011 and 2012, the Company increased its tax liability by approximately $25,000. During the fiscal year ended September 30, 2013, the Company increased its uncertain tax liability by approximately $107,000 and $46,000 for U.S. federal and state tax exposure, respectively, resulting in a cumulative tax liability of approximately $353,000 at September 30, 2013. These amounts have been recorded as an increase to other long-term liabilities on the Company’s accompanying consolidated balance sheets. The Company does not expect its tax liability to change significantly during the next twelve months. The Company’s policy is to recognize interest and penalties related to uncertain tax positions as a component of income tax expense in its accompanying consolidated statements of operations. To date, the Company has accrued approximately $14,000 for interest and penalties associated with this liability as such amounts have been de minimis. During fiscal 2011 and 2012, the Company released portions of its reserve for uncertain tax positions and recorded benefits of approximately $2,000 and $9,000, respectively.
	As of October 1, 2011, the Company had approximately $850,000 of total gross unrecognized tax benefits (before consideration of any valuation allowance). These unrecognized tax benefits represent differences between tax positions taken by the Company in its various consolidated and separate worldwide tax returns and the benefits recognized and measured for uncertain tax positions. This amount also represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. The change in the unrecognized tax benefits in fiscal years ended September 30, 2012 and 2013 was as follows (in thousands):
	Balance at October 1, 2011	$	850
	Additions for prior year tax positions		16
	Balance at September 30, 2012		866
Additions for prior year tax positions		132
Balance at September 30, 2013	$	998
In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such jurisdictions as the U.K., Germany, Singapore, Australia, Sweden, and the U.S., and as a result, files numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The fiscal years ended September 30, 2010 through September 30, 2012 are generally still open to examination in the jurisdictions listed above. The Company is currently under audit by the Internal Revenue Service for the fiscal year ended September 30, 2011. The Company does not believe any material adjustments will be made as a result of this audit.

SHAREHOLDERS_EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Stockholders Equity Note Disclosure [Text Block]	'
	7.       SHAREHOLDERS’ EQUITY
	Stock Option Plans
	The Company provides its employees, officers, consultants, and directors’ stock options, restricted stock units and other stock rights to purchase common stock of the Company on a discretionary basis pursuant to three stock compensation plans described more fully below. All option grants are subject to the terms and conditions determined by the Compensation and Stock Committee of the Board of Directors, and generally vest over a three-year period beginning three months from the date of grant and expire either seven or ten years from the date of grant depending on the plan. Generally, options, restricted shares and other stock rights are granted at exercise prices not less than the fair market value at the date of grant.
	On January 20, 2006, the Company established the Datawatch Corporation 2006 Equity Compensation and Incentive Plan (the “2006 Plan”) which provides for the granting of both incentive stock options and non-qualified options, the award of Company common stock and opportunities to make direct purchases of Company common stock (collectively, “Stock Rights”), as determined by a committee appointed by the Board of Directors.  Options pursuant to this plan were available to be granted through April 26, 2011 and vest as specified by the committee.
	On April 26, 2011, the Company established the Datawatch Corporation 2011 Equity Compensation and Incentive Plan (the “2011 Plan”) which provides for the granting of both incentive stock options and non-qualified options, the award of restricted stock, restricted stock units, and any other equity-based interests (collectively, “Stock Rights”), as determined by a committee appointed by the Board of Directors. Options pursuant to this plan may be granted through April 25, 2021 and shall vest as specified by the committee.
	The Company recognizes share-based compensation expense in accordance with U.S. GAAP which requires that all share-based awards, including grants of employee stock options, be recognized in the financial statements based on their fair value.
	The Company recognizes the fair value of share-based awards over the requisite service period of the individual awards, which generally equals the vesting period. All of the Company’s stock compensation awards are accounted for as equity instruments and there have been no liability awards granted.
	Share-based compensation expense for the fiscal years ended September 30, 2013, 2012 and 2011 was approximately $3,323,000, $879,000 and $264,000, respectively, which was included in the following expense categories:
		Years Ended September 30,
		2013		2012		2011
		(In thousands)
	Sales and marketing	$	2,206	$	528	$	100
	Engineering and product development		442		43		8
	Professional Services		17		–		–
	General and administrative		658		308		156
	Total	$	3,323	$	879	$	264
	The Company uses the Black-Scholes option-pricing model to calculate the fair value of options. The key assumptions for this valuation method include the expected life of the option, stock price volatility, risk-free interest rate and dividend yield. There were 75,000 options granted under the stock options plans for the year ended September 30, 2013.  The weighted-average fair value of options granted under the stock options plans for the year ended September 30, 2013 was $7.61. No options were granted under the stock option plans for the year ended September 30, 2012. The weighted-average fair value of options granted under the stock options plans for the year ended September 30, 2011 was $2.37. The total intrinsic value of options exercised during the years ended September 30, 2013 and 2012 was approximately $1,039,000 and $778,000, respectively. Total cash received from option exercises during the years ended September 30, 2013, 2012 and 2011 was approximately $198,000, $261,000 and $388,000, respectively. The tax benefit realized from stock options exercised during the years ended September 30, 2013 and 2012 was approximately  $61,000 and $691,000, respectively. As of September 30, 2013, there was approximately  $559,000 of total unrecognized compensation cost related to non-vested stock option arrangements, which is expected to be recognized over a weighted-average period of 1.63 years.
	The table below indicates the key assumptions used in the option valuation calculations for options granted for the years ended September 30, 2013 and 2011:
		2013		2011
	Expected life	5 Years		5 Years
	Expected volatility	72.95	%	66.26 – 67.32	%
	Weighted-average volatility	72.95	%	66.56	%
	Risk-free interest rate	0.71	%	1.49 – 2.38	%
	Dividend yield	0	%	0	%
	The expected option life is based on historical trends and data. With regard to the expected option life assumption, the Company considers the exercise behavior of past grants and models the pattern of aggregate exercises. Patterns are determined on specific criteria of the aggregate pool of optionees including the reaction to vesting, realizable value and short-time-to-maturity effect. The Company uses an expected stock-price volatility assumption that is based on historical volatilities of the underlying stock which are obtained from public data sources. The risk-free interest rate is equal to the historical U.S. Treasury zero-coupon bond rate with a remaining term equal to the expected life of the option. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. Based on the Company’s historical voluntary turnover rates, an annualized estimated forfeiture rate of 10% has been used in calculating the estimated cost. Additional expense will be recorded if the actual forfeiture rate is lower than estimated, and a recovery of prior expense will be recorded if the actual forfeiture is higher than estimated.
	At September 30, 2013, 1,575,686 shares were authorized and 145,889 shares were available for future issuance under the 2011 Plan.
	The following table is a summary of combined activity for all of the Company’s stock option plans:
				Weighted-		Weighted - Average
		Number of		Average		Remaining		Aggregate
		Options		Exercise		Contractual		Intrinsic
		Outstanding		Price		Term (years)		Value $(000)
	Outstanding, September 30, 2010		545,010		2.89
	Granted		241,500		3.8
	Canceled		-129,600		3.95
	Exercised		-197,248		1.97
	Outstanding, September 30, 2011		459,662		3.46
	Granted		–		–
	Canceled		-4,000		2.68
	Exercised		-100,328		2.6
	Outstanding, September 30, 2012		355,334		3.71
	Granted		75,000		12.92
	Canceled		-125		2.79
	Exercised		-67,000		2.93
	Outstanding, September 30, 2013		363,209	$	5.76		4.33	$	8,042
	Vested or expected to vest, September 30, 2013		352,231	$	5.64		4.29	$	7,842
	Exercisable, September 30, 2013		253,430	$	4.09		3.7	$	6,035
	Exercisable, September 30, 2012		240,859	$	3.59		3.56	$	4,017
	The following table presents weighted-average price and life information regarding options outstanding and exercisable at September 30, 2013:
	Outstanding							Exercisable
				Weighted-Average		Weighted-				Weighted-
				Remaining		Average				Average
	Exercise	Number of		Contractual		Exercise				Exercise
	Prices	Shares		Life (Years)		Price		Shares		Price
	$1.61 – $2.79		20,375		2.76	$	2.23		20,000	$	2.22
	$3.22 – $4.55		185,334		3.88		3.55		160,321		3.57
	$4.88 – $5.62		82,500		3.7		5.07		66,860		5.07
	$12.92		75,000		6.56		12.92		6,249		12.92
			363,209		4.33	$	5.76		253,430	$	4.09
	Restricted Stock Units
	The Company periodically grants awards of restricted stock units (“RSUs”) to each of its non-employee directors and some of its management team and employees on a discretionary basis pursuant to its stock compensation plans. Each RSU entitles the holder to receive, at the end of each vesting period, a specified number of shares of the Company’s common stock. The total number of RSUs unvested at September 30, 2013 was 1,056,696. Most RSUs vest at the rate of 33.33% on each of the first through third anniversaries of the grant date with final vesting scheduled to occur in January 2018. Included in the total number of RSUs unvested at June 30, 2013 are certain RSUs that are subject to a further vesting condition that the Company’s common stock must trade at a price greater than the following market prices per share on a national securities exchange for a period of twenty consecutive days on or prior to certain anniversaries of the grant date as follows:
		Number of
		Unvested RSUs
	$10.00 per share prior to five years of the grant date	*	77,348
$10.00 per share prior to four years of the grant date	*	187,939
$17.50 per share prior to five years of the grant date	*	30,000
$17.50 per share prior to four years of the grant date	*	90,339
$17.50 per share prior to three years of the grant date	*	159,000
$20.00 per share prior to four years of the grant date	*	8,500
$22.50 per share prior to four years of the grant date		19,000
$22.50 per share prior to three years of the grant date		220,500
$22.50 per share prior to two and one-half years of the grant date	*	100,000
No vesting condition		164,070
Unvested RSUs, September 30, 2013		1,056,696
The Company’s common stock has satisfied the per share market price vesting conditions for the grants denoted with an asterisk above totaling 653,126 RSUs.  For such RSUs, the Company performed fair value analysis using the Monte Carlo option-pricing model. The fair value related to the RSUs was calculated based primarily on the average stock price of the Company’s common stock on the date of the grant and is being amortized evenly on a pro-rata basis over the vesting period to sales and marketing, engineering and product development and general and administrative expense. The fair values of the RSUs granted in fiscal years 2013, 2012 and 2011 was approximately $14,602,000 (or $18.40 weighted average fair value per share), approximately $3,100,000 (or $10.61 weighted average fair value per share) and approximately $1,200,000 (or $4.18 weighted average fair value per share). The Company recorded compensation expense related to RSUs of approximately $3,085,000, $709,000 and $147,000 during the years ended September 30, 2013, 2012 and 2011, respectively, which is included in the total share-based compensation expense disclosed above. As of September 30, 2013, there was approximately $16,020,000 of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted average period of 2.33 years.
The following table presents RSU information for the fiscal years ended September 30, 2011, 2012 and 2013:
	Number of
	RSUs
	Outstanding
Outstanding, September 30, 2010		45,841
Granted		282,500
Canceled		-13,504
Vested		-20,493
Outstanding, September 30, 2011		294,344
Granted		294,900
Canceled		-28,501
Vested		-96,159
Outstanding, September 30, 2012		464,584
Granted		793,732
Canceled		-16,003
Vested		-185,617
Outstanding, September 30, 2013		1,056,696

RETIREMENT_SAVINGS_PLAN

RETIREMENT SAVINGS PLAN	12 Months Ended
	Sep. 30, 2013
Compensation and Retirement Disclosure [Abstract]	'
Pension and Other Postretirement Benefits Disclosure [Text Block]	'
	8.     RETIREMENT SAVINGS PLAN
	The Company has a 401(k) retirement savings plan covering substantially all of the Company’s full-time domestic employees. Under the provisions of the plan, employees may contribute a portion of their compensation within certain limitations. The Company, at the discretion of the Board of Directors, may make contributions on behalf of its employees under this plan. Such contributions, if any, become fully vested after five years of continuous service. The Company did not make any contributions to the 401(k) retirement savings plan in fiscal 2013, 2012 or 2011.

SEGMENT_INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
Segment Reporting Disclosure [Text Block]	'
		9	SEGMENT INFORMATION
	The Company has determined that it has only one reportable segment. The following table presents information about the Company’s revenues by product line for the years ended September 30:
			2013		2012		2011
	Visual Data Discovery solutions (including Datawatch Modeler, Datawatch Automator, Datawatch Enterprise Server, Datawatch Enterprise Server - Cloud, Datawatch RMS, Datawatch Report Manager OnDemand, and Datawatch Desktop)		97	%	95	%	91	%
	Business Service Management Solutions		3	%	5	%	9	%
	Total		100	%	100	%	100	%
	The Company conducts operations in the U.S. and internationally. The following table presents information about the Company’s geographic operations:
							Intercompany
			Domestic		International		Eliminations		Total
			(In thousands)
	Year Ended September 30, 2013
	Total revenue		$	27,127	$	4,047	$	-878	$	30,296
	Operating loss			-1,471		-2,346		–		-3,817
	Long-lived assets			51,301		102		–		51,403
	Year Ended September 30, 2012
	Total revenue		$	22,915	$	3,958	$	-867	$	26,006
	Operating income (loss)			2,497		-954		–		1,543
	Long-lived assets			9,018		83		–		9,101
	Year Ended September 30, 2011
	Total revenue		$	14,671	$	4,042	$	-828	$	17,885
	Operating income (loss)			257		-190		–		67
	Long-lived assets			1,139		68		–		1,207

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	10.   SUBSEQUENT EVENTS
	On November 25, 2013, the Company entered into a loan modification agreement as a result of not being in compliance with the covenants in its Loan and Security Agreement with SVB dated March 30, 2012, as amended, as of October 31, 2013 and November 30, 2013.  Under the loan modification agreement, the Company received a waiver of non-compliance for the respective periods in which the Company was not in compliance.  In addition, certain provisions of the Loan and Security Agreement with SVB were amended including that the Company maintain a certain percentage of its cash balances with SVB.  Under the terms of the loan modification agreement, the Company expects to be compliant with its covenants through May 31, 2014.
	Subsequent events have been evaluated through the date the accompanying financial statements were issued.

QUARTERLY_RESULTS

QUARTERLY RESULTS	12 Months Ended
	Sep. 30, 2013
Quarterly Financial Information Disclosure [Abstract]	'
Quarterly Financial Information [Text Block]	'
	11.   QUARTERLY RESULTS (UNAUDITED)
	Supplementary Information:
		First		Second		Third		Fourth
		(In thousands, except per share amounts)
	Year Ended September 30, 2013:
	Software license revenue	$	4,330	$	4,297	$	5,007	$	5,796
	Maintenance revenue		2,333		2,300		2,409		2,658
	Professional services revenue		158		234		411		363
	Cost of software licenses		521		531		549		904
	Cost of maintenance and services		530		565		602		743
	Expenses		5,820		6,213		7,196		9,939
	Loss from operations		-50		-478		-520		-2,769
	Net loss		-222		-626		-666		-2,683
	Net loss per share – basic	$	-0.03	$	-0.1	$	-0.1	$	-0.4
	Net loss per share – diluted	$	-0.03	$	-0.1	$	-0.1	$	-0.4
	Year Ended September 30, 2012:
	Software license revenue	$	4,208	$	4,274	$	4,699	$	3,619
	Maintenance revenue		1,717		1,861		2,106		2,218
	Professional services revenue		346		412		368		178
	Cost of software licenses		575		659		509		527
	Cost of maintenance and services		668		684		668		510
	Expenses		4,396		4,899		5,263		5,105
	Income (loss) from operations		632		305		733		-127
	Net income (loss)		603		160		548		-277
	Net income (loss) per share - basic	$	0.1	$	0.03	$	0.09	$	-0.04
	Net income (loss) per share - diluted	$	0.09	$	0.02	$	0.08	$	-0.04

NATURE_OF_BUSINESS_AND_SUMMARY1

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Consolidation, Policy [Policy Text Block]	'
	Principles of Consolidation
	These consolidated financial statements include the accounts of Datawatch and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.  In 2013, the Company dissolved its’ international operation, Datawatch Europe Limited, and recorded a gain on disposition of investment of approximately $374,000.
Use of Estimates, Policy [Policy Text Block]	'
	Accounting Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and judgments, which are evaluated on an on-going basis, that affect the amounts and disclosures reported in the Company’s consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to revenue recognition, the allowance for doubtful accounts, sales returns reserve, useful lives of property and equipment, the valuation of net deferred tax assets, acquired intellectual property and other intangible assets and share-based awards.
	The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.
Revenue Recognition, Policy [Policy Text Block]	'
	Revenue Recognition
	Revenue allocated to software products, specified upgrades and enhancements is recognized upon delivery of the related product, upgrades or enhancements. Revenue is allocated by vendor specific objective evidence (“VSOE”) of fair value to customer support (primarily maintenance) and is recognized ratably over the term of the support, and revenue allocated using VSOE to service elements (primarily training and consulting) is recognized as the services are performed. The residual method of revenue recognition is used for multi-element arrangements when the VSOE of the fair value does not exist for one of the delivered elements. Under the residual method, the arrangement fee is recognized as follows: (1) the total fair value of the undelivered elements, as supported by VSOE, is deferred and subsequently recognized as such items are delivered or completed and (2) the difference between the total arrangement fee and the amount allocated to the undelivered elements is recognized as revenue related to the delivered elements.
	The Company licenses its software products directly to end-users, through value added resellers and through distributors. Sales to distributors and resellers accounted for approximately 45%, 31% and 41% of total sales for the years ended September 30, 2013, 2012 and 2011, respectively. Revenue from the sale of all software products (when separately sold) is generally recognized at the time of shipment, provided there are no uncertainties surrounding product acceptance, the fee is fixed or determinable, collectability is reasonably assured, persuasive evidence of the arrangement exists and there are no significant obligations remaining. The Company’s software product offerings do not require customization. The Company’s software products can be installed and used by customers on their own with little or no configuration required. Multi-user licenses marketed by the Company are sold as a right to use the number of licenses, and the license fee revenue is recognized upon delivery of all software required to satisfy the number of licenses sold. Upon delivery, the licensing fee is payable without further delivery obligations by the Company.
	Datawatch software products are generally sold in multiple element arrangements which may include software licenses, professional services and customer support. In such multiple element arrangements, the Company applies the residual method in determining revenue to be allocated to the software license. In applying the residual method, the Company deducts from the sale proceeds the VSOE of fair value of the professional services and customer support in determining the residual fair value of the software license. The VSOE of fair value of the services and customer support is based on the amounts charged for these elements when sold separately. Professional services include advanced modeling, application design, implementation and configuration and process optimization with revenue recognized as the services are performed. These services are generally delivered on a time and materials basis, are billed on a current basis as the work is performed, and generally do not involve modification or customization of the software or any unusual acceptance clauses or terms. The Company has established VSOE of fair value for the majority of its professional services using the bell-shaped curve method. Customer support is typically provided under a maintenance agreement which provides technical support and rights to unspecified software maintenance updates and bug fixes on a when-and-if available basis. Revenue from customer support services is deferred and recognized ratably over the period of support (generally one year). Such deferred amounts are recorded as part of deferred revenue in the Company’s accompanying consolidated balance sheets. The Company has established VSOE of fair value for the majority of its customer support based on stated renewal rates only if the rate is determined to be substantive and falls within the Company’s customary pricing practices. VSOE of fair value for sales through the Company’s distribution channel was established using the bell-shaped curve method. VSOE calculations are updated and reviewed quarterly.
	The Company also licenses its enterprise software using a subscription model. At the time a customer enters into a binding agreement to purchase a subscription, the customer is invoiced for an initial 90 day service period and an account receivable and deferred revenue are recorded. Beginning on the date the software is installed at the customer site and is available for use by the customer, and provided that all other criteria for revenue recognition are met, the deferred revenue amount is recognized ratably over the period the service is provided. The customer is then invoiced every 90 days and revenue is recognized ratably over the period of the subscription. The subscription arrangement includes software, maintenance and unspecified future upgrades on a when-and-if available basis including major version upgrades. The subscription renewal rate is the same as the initial subscription rate. Subscriptions can be cancelled by the customer at any time by providing 90 days prior written notice following the first year of the subscription term
	The Company’s software products are sold under warranty against certain defects in material and workmanship for a period of 30 days from the date of purchase. The Company also offers a 30 day money-back guarantee on its Datawatch Modeler (formerly Monarch Professional) product sold directly to end-users. Additionally, the Company provides its distributors with stock-balancing rights. Revenue from the sale of software products to distributors and resellers is recognized at the time of shipment providing all other criteria for revenue recognition as stated above are met and (i) the distributor or reseller is unconditionally obligated to pay for the products, including no contingency as to product resale, (ii) the distributor or reseller has independent economic substance apart from the Company, (iii) the Company is not obligated for future performance to bring about product resale, and (iv) the amount of future returns can be reasonably estimated. The Company’s experience and history with its distributors and resellers allows for reasonable estimates of future returns. Among other things, estimates of potential future returns are made based on the inventory levels at, and the returns history with, the various distributors and resellers, which the Company monitors frequently.
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]	'
	Allowance for Doubtful Accounts
	The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. The Company analyzes accounts receivable and the composition of the accounts receivable aging, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Actual results could differ from the allowances recorded, and this difference could have a material effect on the Company’s financial position and results of operations. Receivables are written off against these allowances in the period they are determined to be uncollectible.
	For the fiscal years ended September 30, 2013, 2012 and 2011, changes to and ending balances of the allowance for doubtful accounts were approximately as follows:
			2013			2012			2011
			(In thousands)
	Allowance for doubtful accounts balance - beginning of year		$	107		$	78		$	129
	Additions to the allowance for doubtful accounts			–			93			92
	Deductions against the allowance for doubtful accounts			-64			-64			-143
	Allowance for doubtful accounts balance - end of year		$	43		$	107		$	78
Sales Returns Reserve [Policy Text Block]	'
	Sales Returns Reserve
	The Company maintains reserves for potential future product returns from distributors. The Company estimates future product returns based on its experience and history with the Company’s various distributors and resellers as well as by monitoring inventory levels at such companies. Adjustments are recorded as increases or decreases in revenue in the period of adjustment. Actual returns have historically been within the range estimated by management. Actual results could differ from the reserve for sales returns recorded, and this difference could have a material effect on the Company’s financial position and results of operations.
	For the fiscal years ended September 30, 2013, 2012 and 2011, changes to and ending balances of the sales returns reserve were approximately as follows:
			2013			2012			2011
			(In thousands)
	Sales returns reserve balance - beginning of year		$	105		$	70		$	35
	Additions to the sales returns reserve			–			117			101
	Deductions against the sales returns reserve			-85			-82			-66
	Sales returns reserve balance - end of year		$	20		$	105		$	70
Research, Development, and Computer Software, Policy [Policy Text Block]	'
	Capitalized Software Development Costs
	The Company capitalizes certain software development costs as well as purchased software upon achieving technological feasibility of the related products. Software development costs incurred and software purchased prior to achieving technological feasibility are charged to engineering and product development expense as incurred. Commencing upon initial product release, capitalized costs are amortized to cost of software licenses using the straight-line method over the estimated life of the product (which approximates the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product), which is generally 4 to 24 months.
	For the fiscal years ended September 30, 2013, 2012 and 2011, amounts related to capitalized and purchased software development costs were approximately as follows:
			2013			2012			2011
			(In thousands)
	Capitalized and purchased software balance - beginning of year		$	30		$	14		$	396
	Capitalized software development costs			440			54			–
	Amortization of capitalized software development costs and			-120			-38			-382
	purchased software
	Capitalized and purchased software balance - end of year		$	350		$	30		$	14
Cash and Cash Equivalents, Policy [Policy Text Block]	'
	Cash and Cash Equivalents
	Cash and cash equivalents include cash on hand, cash deposited with banks and highly liquid securities consisting of money market investments with original maturities of 90 days or less.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	'
	Concentration of Credit Risks and Major Customers
	Financial instruments, which potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company’s cash is maintained with what management believes to be a high-credit quality financial institution.  At times, deposits held at this bank may exceed the federally insured limits.  Management believes that the financial institutions that hold the Company’s deposits are financially sound and have minimal credit risk. Risks associated with cash and cash equivalents are mitigated by the Company’s investment policy, which limits the Company’s investing of excess cash into only money market mutual funds.
	The Company licenses its products and services to U.S. and non-U.S. distributors and other software resellers, as well as to end users, under customary credit terms. Two customers, Ingram Micro, Inc. and Lifeboat Distribution, individually accounted for the following percentages of total revenue and accounts receivable for the periods indicated:
			Percentage of total revenue												Percentage of total
			for the years ended												accounts receivable at
			September 30,												September 30,
			2013				2012				2011				2013				2012
	Ingram Micro, Inc.			*				*				13	%			*				*
	Lifeboat Distribution			20	%			17	%			15	%			11	%			19	%
	* Revenues were less than 10% of the Company’s total revenue and accounts receivable in the respective period.
	The Company licenses to Lifeboat Distribution under a distribution agreement which automatically renews for successive one-year terms unless terminated. On December 6, 2011, the Company exercised a 90 day notice provision under a distribution agreement with Ingram Micro, Inc. to terminate its relationship with that distributor. The termination was effective March 6, 2012. Effective March 7, 2012, Lifeboat Distribution became the sole North American distributor for the Company’s Datawatch Modeler platform. In addition to the customers listed above, one additional customer, Unisys Belgium, individually accounted for approximately 24% of total accounts receivable at September 30, 2012. Two additional customers, Xerox and Thomson Reuters, accounted for approximately 19% and 23%, respectively of total accounts receivable at September 30, 2013. Other than these customers, no other customer constitutes a significant portion (more than 10%) of revenues or accounts receivable for the periods presented. The Company performs ongoing credit evaluations of its customers and generally does not require collateral.
Revenue Recognition, Deferred Revenue [Policy Text Block]	'
	Deferred Revenue
	Deferred revenue consisted of the following at September 30:
			2013			2012
			(In thousands)
	Maintenance		$	6,907		$	5,167
	License			69			1,257
	Other			235			136
	Total			7,211			6,560
	Less: Long-term portion of deferred maintenance			-214			-265
	Current portion of deferred revenue		$	6,997		$	6,295
	Maintenance deferred revenue consists of the unearned portion of customer support services provided by the Company to customers who purchased maintenance agreements for the Company’s products. Maintenance revenues are recognized on a straight-line basis over the term of the maintenance period, generally 12 months.
	Other deferred revenue consists of deferred subscription and professional services revenue generated from arrangements that are invoiced in accordance with the terms and conditions of the arrangement but do not meet all the criteria for revenue recognition and are, therefore, deferred until all revenue recognition criteria are met.
Inventory, Policy [Policy Text Block]	'
	Inventories
	Inventories consist of software components, primarily software manuals, compact disks and retail packaging materials. Inventories are valued at the lower of cost (first-in, first-out method) or market.
Property, Plant and Equipment, Policy [Policy Text Block]	'
	Property and Equipment
	Property and equipment consists of office equipment, furniture and fixtures, software and leasehold improvements, all of which are recorded at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets or over the terms, if shorter, of the related leases. Useful lives and lease terms range from three to seven years. Depreciation and amortization expense related to property and equipment was $145,000, $137,000 and $197,000, respectively, for the years ended September 30, 2013, 2012 and 2011.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	'
	Long-Lived Assets
	The Company periodically evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful lives of long-lived assets and certain identifiable intangibles may warrant revision or that the carrying value of these assets may be impaired. To determine whether assets have been impaired, the estimated undiscounted future cash flows for the estimated remaining useful life of the respective assets are compared to the carrying value. To the extent that the undiscounted future cash flows are less than the carrying value, the fair value of the asset is determined and an impairment is recognized. If such fair value is less than the current carrying value, the asset is written down to its estimated fair value.
Acquired Intellectual Property, Policy [Policy Text Block]	'
	Acquired Intellectual Property
	On March 30, 2012, the Company acquired the intellectual property which consisted primarily of the source code underlying its Datawatch Modeler (formerly Monarch Professional) and Datawatch Automator (formerly Data Pump) products pursuant to an Option Purchase Agreement dated as of April 29, 2004 by and among the Company, Personics Corporation, Raymond J. Huger and Math Strategies, as amended (the “Option Agreement”). Under the formula contained in the Option Agreement, the purchase price paid for the intellectual property assets was approximately $8,541,000 which was calculated based on a multiple of the aggregate royalties paid to Math Strategies by the Company for the four fiscal quarters preceding the exercise of the option. Additionally, the Company capitalized approximately $75,000 in closing costs and adjustments pursuant to a Supplemental Agreement dated March 30, 2012 between the Company and Raymond J. Huger. In fiscal 2013, the Company acquired additional intellectual property as noted in the Panopticon transaction totaling $7,900,000. The acquired intellectual property assets are being amortized to cost of software licenses using the straight-line method over the estimated life of the asset, ranging from five to seven and a half years. Amortization expense related to the acquired intellectual property assets for the years ended September 30, 2013 and 2012 was approximately $1,811,000 and $871,000, respectively. The estimated future amortization expense related to the acquired intellectual property is as follows (in thousands):
	Fiscal Years Ending September 30,
	2014		$	2,777
	2015			2,777
	2016			2,777
	2017			1,905
	2018			1,053
	Thereafter			2,545
	Total estimated future amortization expense		$	13,834
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	'
	Intangible Assets
	Intangible assets consist of acquired intellectual property. Other intangible assets consist of internally developed software, trade names, patents and customer lists acquired through business combinations. The values allocated to the majority of these intangible assets are amortized using the straight-line method over the estimated useful life of the related asset and are recorded in cost of software licenses. The values allocated to customer relationships are amortized using the straight-line method over the estimated useful life of the related asset and are recorded in sales and marketing expenses. The values allocated to loan acquisition costs are amortized using the straight-line method over the life of the debt and are recorded in interest income and other income (expense), net. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable and an impairment loss is recognized when it is probable that the estimated cash flows are less than the carrying amount of the asset.
	Other intangible assets, net, were comprised of the following at September 30, 2013 and 2012:
			Weighted		September 30, 2013									September 30, 2012
			Average		Gross									Gross
	Identified Intangible		Useful Life		Carrying			Accumulated			Net Carrying			Carrying			Accumulated			Net Carrying
	Asset		in Years		Amount			Amortization			Amount			Amount			Amortization			Amount
					(In thousands)
	Capitalized software		1		$	1,630		$	1,280		$	350		$	1,190		$	1,160		$	30
	Purchased software		5			–			–			–			700			700			–
	Patents		20			160			73			87			160			65			95
	Customer lists		14			8,990			1,401			7,589			1,790			1,195			595
	Assembled Workforce		–			620			–			620			–			–			–
	Non-compete agreements		1			–			–			–			640			640			–
	Trademark		3			120			4			116			21			21			–
	Loan acquisition costs		4			167			49			118			88			16			72
	Total				$	11,687		$	2,807		$	8,880		$	4,589		$	3,797		$	792
	The intangible asset amounts amortized to cost of software licenses totaled approximately $128,000, $46,000 and $390,000 for fiscal 2013, 2012 and 2011, respectively. Intangible asset amounts amortized to sales and marketing expense totaled approximately $206,000, $166,000 and $166,000 for fiscal 2013, 2012 and 2011, respectively. Intangible asset amounts amortized to interest expense totaled approximately $33,000 and $16,000 for fiscal 2013 and 2012, respectively. There were no intangible asset amounts amortized to interest income and other income (expense), net in fiscal year 2011. Intangible asset amounts amortized to general and administrative expense totaled approximately $4,000 for fiscal 2013.  There were no intangible assets amortized to general and administrative for fiscal years 2012 and 2011. During the fiscal year 2013, the Company wrote off fully amortized intangible assets totaling approximately $1,361,000.
	The estimated future amortization expense related to amortizing intangible assets was as follows (in thousands):
	Fiscal Years Ending September 30,
	2014		$	1,096
	2015			733
	2016			633
	2017			494
	2018			985
	Thereafter			4,939
	Total estimated future amortization expense		$	8,880
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	'
	Goodwill
	Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of acquired businesses. Indefinite-lived intangibles are intangible assets whose useful lives are indefinite in that their lives extend beyond the foreseeable horizon – that is there is no foreseeable limit on the period of time over which they are expected to contribute to the cash flows of the reporting entity. The Company accounts for goodwill in accordance with the Financial Accounting Standards Board (“FASB”), under which goodwill and intangible assets having indefinite lives are not amortized but instead are tested for impairment annually or more frequently if changes in circumstances or the occurrence of events indicate possible impairment.
Fair Value of Financial Instruments, Policy [Policy Text Block]	'
	Financial Instruments
	The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable and accounts payable and their carrying values approximate fair value because of their short-term nature.
Fair Value Measurement, Policy [Policy Text Block]	'
	Fair Value Measurements
	Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company is required to classify certain assets and liabilities based on the following fair value hierarchy.
		·	Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;
		·	Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and
		·	Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
	The following table presents the Company’s assets and liabilities that are measured and disclosed at fair value on a recurring basis at September 30, 2013 and 2012 (in thousands):
			September 30, 2013												September 30, 2012
			Fair Value									Estimated			Fair Value								Estimated
			Measurement									Fair			Measurement									Fair
			Using Input Types									Value			Using Input Types								Value
			Level 1			Level 2			Level 3			Total			Level 1			Level 2			Level 3		Total
	Assets:
	Money market funds		$	2,234		$	–		$	–		$	2,234		$	2,234		$	–		$	–	$	2,234
	Total assets at fair value			2,234			–			–			2,234			2,234			–			–		2,234
	Liabilities:
	Line of credit		$	900		$	–		$	–		$	900		$	900		$	–		$	–	$	900
	Note payable			3,945			–			–			3,945			4,000			–			–		4,000
	Debt discount			–			-860			–			-860			–			-1,017			–		-1,017
	Total liabilities at fair value		$	4,845		$	-860		$	–		$	3,985		$	4,900			-1,017			–		3,883
Income Tax, Policy [Policy Text Block]	'
	Income Taxes
	Deferred income taxes are provided for the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and operating loss carryforwards and credits. Valuation allowances are recorded to reduce the net deferred tax assets to amounts the Company believes are more likely than not to be realized.
	The Company follows the accounting guidance for uncertain tax positions. This guidance clarifies the accounting for income taxes by prescribing the minimum threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition.
Earnings Per Share, Policy [Policy Text Block]	'
	Net (Loss) Income Per Share
	Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the impact, when dilutive, of the exercise of stock options and the vesting of restricted stock units using the treasury stock method.
	The following table presents the options and restricted stock units that were not included in the computation of diluted net income per share, because the effect was antidilutive for the years ended 2012 and 2011:
			2013			2012			2011
	Quantity of option shares not included			-			123,105			105,819
	Weighted-average exercise price		$	-		$	12.3		$	5.18
	As the Company was in a net loss position for the year end September 30, 2013, all common stock equivalents in fiscal 2013 were antidilutive.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	'
	Foreign Currency Translations and Transactions
	Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at rates in effect at each balance sheet date. Revenues, expenses and cash flows are translated into U.S. dollars at average rates prevailing during the respective period. The related translation adjustments are reported as a separate component of shareholders’ equity under the heading “Accumulated Other Comprehensive Loss.” Included in comprehensive (loss) income are the foreign currency translation adjustments. Foreign currency translation losses arising during fiscal 2013 and 2011 were approximately $162,000 and $121,000. Foreign currency translation gain arising during fiscal 2012 was approximately $82,000.
	Gains and losses resulting from transactions that are denominated in currencies other than the applicable unit’s functional currency are included in the operating results of the Company and were a loss of $41,000 and $126,000 for the years ended September 30, 2013 and 2012, respectively, and gain of $89,000, for the year ended September 30, 2011. The foreign currency loss in 2012 was attributable primarily to the settlement of intercompany balances due to the dissolution of one of the Company’s foreign subsidiaries and the repatriation of international funds to the U.S. required by the Company’s line of credit facility which was entered into in March 2012.
Advertising Costs, Policy [Policy Text Block]	'
	Advertising and Promotional Materials
	Advertising costs are expensed as incurred and amounted to approximately $290,000, $9,000 and $138,000 in fiscal years 2013, 2012 and 2011, respectively. Direct mail/direct response costs are expensed over the period in which the associated revenue is recognized, generally three to six months from the date of the mailing. Direct mail expense was approximately $7,000, $9,000 and $52,000, in fiscal 2013, 2012, and 2011, respectively. There were no deferred direct mail/direct response costs at September 30, 2013, 2012 or 2011.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	'
	Share-Based Compensation
	All share-based awards, including grants of employee stock options and restricted stock units, are recognized in the financial statements based on their fair value at date of grant.
	The Company recognizes the fair value of share-based awards over the requisite service period of the individual awards, which generally equals the vesting period. All of the Company’s share-based awards are accounted for as equity instruments and there have been no liability awards granted. See additional share-based compensation disclosure in Note 7 to the Company’s accompanying consolidated financial statements.
Segment Reporting, Policy [Policy Text Block]	'
	Segment Information
	The Company has determined that it has only one reportable segment. The Company’s chief operating decision maker, its Chief Executive Officer, does not manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and operating results. See Note 9 for information about the Company’s revenue by product lines and geographic operations.
Guarantees, Indemnifications and Warranties Policies [Policy Text Block]	'
	Guarantees and Indemnifications
	The Company’s software products are sold under warranty against certain defects in material and workmanship for a period of 30 days from the date of purchase. The Company has never incurred significant expense under its product or service warranties and does not expect to do so in the future. As a result, the Company believes its exposure related to these warranty agreements is minimal. Accordingly, there are no liabilities recorded for warranty claims as of September 30, 2013 or 2012.
	The Company enters into indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company agrees to indemnify, hold harmless, and to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally its customers, in connection with any patent, copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes its exposure related to these agreements is minimal. Accordingly, the Company has no liabilities recorded for these potential obligations as of September 30, 2013 or 2012.
	Certain of the Company’s agreements also provide for the performance of services at customer sites. These agreements may contain indemnification clauses, whereby the Company will indemnify the customer from any and all damages, losses, judgments, costs and expenses for acts of its employees or subcontractors resulting in bodily injury or property damage. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has general and umbrella insurance policies that would enable it to recover a portion of any amounts paid. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes its exposure related to these agreements is minimal. Accordingly, the Company has no liabilities recorded for these potential obligations as of September 30, 2013 or 2012.
	As permitted under Delaware law, the Company has agreements with its directors whereby the Company will indemnify them for certain events or occurrences while the director is, or was, serving at the Company’s request in such capacity. The term of the director indemnification period is for the later of ten years after the date that the director ceases to serve in such capacity or the final termination of proceedings against the director as outlined in the indemnification agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company’s director and officer insurance policy limits the Company’s exposure and would enable it to recover a portion of any future amounts paid. As a result of its insurance policy coverage for directors, the Company believes its exposure related to these indemnification agreements is minimal. The Company has no liabilities recorded for these potential obligations as of September 30, 2013 or 2012.
Research and Development Expense, Policy [Policy Text Block]	'
	Research and Development Costs
	Research and development costs are expenses as incurred.
New Accounting Pronouncements, Policy [Policy Text Block]	'
	Recent Accounting Pronouncements
	In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 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 .” This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The guidance outlines the events when cumulative translation adjustments should be released into net income and is intended by FASB to eliminate some disparity in current accounting practice. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013 (fiscal 2015). The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations.
	In July 2012, the FASB issued ASU 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” This ASU simplifies how entities test indefinite-lived intangible assets for impairment which improve consistency in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in the previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations.
	In June 2011, the FASB issued an ASU that provides amendments on the presentation of comprehensive income. The amendments require that all nonowner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. The amendments do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The amendments do not change the option for an entity to present components of other comprehensive income either net of related tax effects or before related tax effects, with one amount shown for the aggregate income tax expense or benefit related to the total of other comprehensive income items. In both cases, the tax effect for each component must be disclosed in the notes to the financial statements or presented in the statement in which other comprehensive income is presented. The amendments do not affect how earnings per share is calculated or presented. This amendment was effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and should be applied retrospectively. This ASU was adopted in the first quarter of fiscal 2013 and the Company elected the two-statement approach.
	The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its consolidated financial statements.

NATURE_OF_BUSINESS_AND_SUMMARY2

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2013
Schedule Of Allowance For Doubtful Accounts Receivable [Table Text Block]	'
	For the fiscal years ended September 30, 2013, 2012 and 2011, changes to and ending balances of the allowance for doubtful accounts were approximately as follows:
		2013			2012			2011
		(In thousands)
	Allowance for doubtful accounts balance - beginning of year	$	107		$	78		$	129
	Additions to the allowance for doubtful accounts		–			93			92
	Deductions against the allowance for doubtful accounts		-64			-64			-143
	Allowance for doubtful accounts balance - end of year	$	43		$	107		$	78
Schedule Of Sales Returns Reserve [Table Text Block]	'
	For the fiscal years ended September 30, 2013, 2012 and 2011, changes to and ending balances of the sales returns reserve were approximately as follows:
		2013			2012			2011
		(In thousands)
	Sales returns reserve balance - beginning of year	$	105		$	70		$	35
	Additions to the sales returns reserve		–			117			101
	Deductions against the sales returns reserve		-85			-82			-66
	Sales returns reserve balance - end of year	$	20		$	105		$	70
Schedule Of Capitalized And Purchased Software Development Costs [Table Text Block]	'
	For the fiscal years ended September 30, 2013, 2012 and 2011, amounts related to capitalized and purchased software development costs were approximately as follows:
		2013			2012			2011
		(In thousands)
	Capitalized and purchased software balance - beginning of year	$	30		$	14		$	396
	Capitalized software development costs		440			54			–
	Amortization of capitalized software development costs and		-120			-38			-382
	purchased software
	Capitalized and purchased software balance - end of year	$	350		$	30		$	14
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]	'
	Two customers, Ingram Micro, Inc. and Lifeboat Distribution, individually accounted for the following percentages of total revenue and accounts receivable for the periods indicated:
		Percentage of total revenue												Percentage of total
		for the years ended												accounts receivable at
		September 30,												September 30,
		2013				2012				2011				2013				2012
	Ingram Micro, Inc.		*				*				13	%			*				*
	Lifeboat Distribution		20	%			17	%			15	%			11	%			19	%
	* Revenues were less than 10% of the Company’s total revenue and accounts receivable in the respective period.
Schedule Of Deferred Revenue [Table Text Block]	'
	Deferred revenue consisted of the following at September 30:
		2013			2012
		(in thousands)
	Maintenance	$	6,907		$	5,167
	License		69			1,257
	Other		235			136
	Total		7,211			6,560
	Less: Long-term portion of deferred maintenance		-214			-265
	Current portion of deferred revenue	$	6,997		$	6,295
Schedule of Indefinite-Lived Intangible Assets [Table Text Block]	'
	Other intangible assets, net, were comprised of the following at September 30, 2013 and 2012:
		Weighted		September 30, 2013									September 30, 2012
		Average		Gross									Gross
	Identified Intangible	Useful Life		Carrying			Accumulated			Net Carrying			Carrying			Accumulated			Net Carrying
	Asset	in Years		Amount			Amortization			Amount			Amount			Amortization			Amount
				(In thousands)
	Capitalized software	1		$	1,630		$	1,280		$	350		$	1,190		$	1,160		$	30
	Purchased software	5			–			–			–			700			700			–
	Patents	20			160			73			87			160			65			95
	Customer lists	14			8,990			1,401			7,589			1,790			1,195			595
	Assembled Workforce	–			620			–			620			–			–			–
	Non-compete agreements	1			–			–			–			640			640			–
	Trademark	3			120			4			116			21			21			–
	Loan acquisition costs	4			167			49			118			88			16			72
	Total			$	11,687		$	2,807		$	8,880		$	4,589		$	3,797		$	792
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	'
	The estimated future amortization expense related to amortizing intangible assets was as follows (in thousands):
	Fiscal Years Ending September 30,
	2014	$	1,096
	2015		733
	2016		633
	2017		494
	2018		985
	Thereafter		4,939
	Total estimated future amortization expense	$	8,880
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	'
	The following table presents the Company’s assets and liabilities that are measured and disclosed at fair value on a recurring basis at September 30, 2013 and 2012 (in thousands):
		September 30, 2013												September 30, 2012
		Fair Value									Estimated			Fair Value								Estimated
		Measurement									Fair			Measurement									Fair
		Using Input Types									Value			Using Input Types								Value
		Level 1			Level 2			Level 3			Total			Level 1			Level 2			Level 3		Total
	Assets:
	Money market funds	$	2,234		$	–		$	–		$	2,234		$	2,234		$	–		$	–	$	2,234
	Total assets at fair value		2,234			–			–			2,234			2,234			–			–		2,234
	Liabilities:
	Line of credit	$	900		$	–		$	–		$	900		$	900		$	–		$	–	$	900
	Note payable		3,945			–			–			3,945			4,000			–			–		4,000
	Debt discount		–			-860			–			-860			–			-1,017			–		-1,017
	Total liabilities at fair value	$	4,845		$	-860		$	–		$	3,985		$	4,900			-1,017			–		3,883
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	'
	The following table presents the options and restricted stock units that were not included in the computation of diluted net income per share, because the effect was antidilutive for the years ended 2012 and 2011:
		2013			2012			2011
	Quantity of option shares not included		-			123,105			105,819
	Weighted-average exercise price	$	-		$	12.3		$	5.18
Intellectual Property [Member]	'
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	'
	The estimated future amortization expense related to the acquired intellectual property is as follows (in thousands):
	Fiscal Years Ending September 30,
	2014	$	2,777
	2015		2,777
	2016		2,777
	2017		1,905
	2018		1,053
	Thereafter		2,545
	Total estimated future amortization expense	$	13,834

ACQUISITIONS_Tables

ACQUISITIONS (Tables)	12 Months Ended
	Sep. 30, 2013
Business Combinations [Abstract]	'
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	'
	The estimated fair value of net assets acquired and net liabilities acquired in the of Panopticon transaction are summarized as follows:
		Amount
	Current assets	$	1,336
	Property, plant and equipment		2
	Other intangible assets		15,840
	Goodwill		28,152
	Obligations under deferred revenue		-189
	Accounts payable and accrued expenses		-756
	Deferred income taxes		-1,566
	Purchase Price	$	42,819
	Less:
	Common stock issued	$	-42,644
	Seller financing		-175
	Cash and cash equivalents acquired		-383
	Net cash provided by acquisition	$	383
Schedule of Finite-Lived Intangible Assets [Table Text Block]	'
	The intangible assets, excluding goodwill, are being amortized on a straight-line basis over their estimated lives as follows (in thousands):
		Fair		Estimated
		Value		Lives
	Customer Relationships	$	7,200		15.0 years
	Developed Technology		7,900		7.5 years
	Trade Name		120		2.5 years
	Assembled Workforce		620		Indefinite
	Total intangible assets	$	15,840
Business Acquisition, Pro Forma Information [Table Text Block]	'
	This information does not necessarily reflect the results of operations that would have occurred had the acquisitions taken place at the beginning of the period, and is not necessarily indicative of the results which may be obtained in the future (in thousands, except per share data):
		September 30,
		2013		2012
	Total revenue	$	33,271	$	28,828
	Net income (loss)		-6,542		-2,639
	Net income (loss) per share
	Basic and diluted	$	-0.79	$	-0.33
	Number of weighted average shares
	Basic and diluted		8,322		8,117

ACCRUED_EXPENSES_Tables

ACCRUED EXPENSES (Tables)	12 Months Ended
	Sep. 30, 2013
Accounts Payable and Accrued Liabilities, Current [Abstract]	'
Schedule of Accrued Liabilities [Table Text Block]	'
	Accrued expenses consisted of the following at September 30:
		2013		2012
		(In thousands)
	Accrued royalties and commissions	$	1,483	$	809
	Accrued bonus		606		229
	Accrued other		139		96
	Accrued professional fees and consulting		417		230
	Accrued salaries and benefits		295		162
	Accrued acquisition fees		159		–
	Accrued travel and entertainment		165		46
	Accrued taxes		89		42
	Accrued marketing		85		178
	Accrued severance		43		-
	Total	$	3,481	$	1,792

FINANCING_ARRANGEMENTS_Tables

FINANCING ARRANGEMENTS (Tables)	12 Months Ended
	Sep. 30, 2013
Schedule of Maturities of Long-term Debt [Table Text Block]	'
	Future principal payments related to the subordinated note are as follows (in thousands):
	Fiscal Years Ended September 30,
	2014	$	467
	2015		673
	Thereafter		860
	Total future principal payments	$	2,000
Amortization Debt Discount [Table Text Block]	'
	The estimated future amortization expense related to the debt discount is as follows (in thousands):
	Fiscal Years Ended September 30,
	2014	$	157
	2015		157
	2016		157
	2017		157
	2018		157
	Thereafter		75
	Total estimated future amortization of debt discount	$	860
Revolving Line Of Credit [Member]	'
Schedule of Maturities of Long-term Debt [Table Text Block]	'
	Future principal payments related to the revolving line of credit and term note are as follows (in thousands):
	Fiscal Years Ended September 30,
	2014	$	1,567
	2015		667
	2016		611
	Thereafter		-
	Total future principal payments	$	2,845

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	'
	As of September 30, 2013, minimum rental commitments under non-cancelable operating leases are as follows (in thousands):
	Years Ending September 30,
	2014	$	452
	2015		209
	2016		152
	Total future minimum lease payments	$	813

TAXES_Tables

TAXES (Tables)	12 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]	'
	(Loss) income from operations before income taxes consists of the following for the years ended September 30:
		2013		2012		2011
		(In thousands)
	Domestic	$	-2,139	$	1,253	$	257
	Foreign		-2,146		-169		-90
	Total	$	-4,285	$	1,084	$	167
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	'
	The (benefit) provision for income taxes consisted of the following for the years ended September 30:
		2013		2012		2011
		(In thousands)
	Current:
	Federal	$	-4	$	4	$	–
	State		-1		21		11
	Foreign		–		25		25
			-5		50		36
	Deferred:
	Federal		-1,070		-391		-185
	State		-293		-3		-1
	Foreign		-83		–		–
	Change in valuation allowance		1,363		394		185
			-83		–		-1
	Total (benefit) provision	$	-88	$	50	$	35
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	'
	The components of the Company’s net deferred tax assets are as follows at September 30:
		2013		2012		2011
		(In thousands)
	Deferred tax liabilities:
	Prepaid expenses	$	-86	$	-47	$	-91
	Acquired intangibles		-3,456		–		-40
			-3,542		-47		-131
	Deferred tax assets:
	Net operating loss carryforwards		7,717		5,493		5,146
	Research and development credits		1,120		778		624
	Alternative minimum tax credits		154		154		164
	Accounts and notes receivable reserves		40		105		27
	Depreciation and amortization		1,861		1,446		1,241
	Other		158		-300		165
			11,050		7,676		7,367
	Total		7,508		7,629		7,236
	Valuation allowance		-8,991		-7,629		-7,236
	Deferred tax liability, net	$	-1,483	$	–	$	–
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	'
	The following table reconciles the Company’s tax provision based on its effective tax rate to its tax provision based on the federal statutory rate of 34% for the years ended September 30, 2013, 2012 and 2011 (in thousands):
		2013		2012		2011
	Provision at federal statutory rate	$	-1,457	$	369	$	57
	State, net of federal impact		-303		14		7
	Foreign income taxes		-268		25		25
	Valuation allowance increase		1,363		394		185
	Return to provision adjustments		3		-256		-181
	Foreign deferred tax asset rate change and true-up		39		-369		–
	Stock-based compensation		316		–		–
	Acquisition Costs		339		–		–
	Other		-120		-127		-58
	(Benfit) provision for income taxes	$	-88	$	50	$	35
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	'
	The change in the unrecognized tax benefits in fiscal years ended September 30, 2012 and 2013 was as follows (in thousands):
	Balance at October 1, 2011	$	850
	Additions for prior year tax positions		16
	Balance at September 30, 2012		866
	Additions for prior year tax positions		132
	Balance at September 30, 2013	$	998

SHAREHOLDERS_EQUITY_Tables

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Schedule Of Share Based Expense Categories [Table Text Block]	'
	Share-based compensation expense for the fiscal years ended September 30, 2013, 2012 and 2011 was approximately $3,323,000, $879,000 and $264,000, respectively, which was included in the following expense categories:
		Years Ended September 30,
		2013		2012		2011
		(In thousands)
	Sales and marketing	$	2,206	$	528	$	100
	Engineering and product development		442		43		8
	Professional Services		17		–		–
	General and administrative		658		308		156
	Total	$	3,323	$	879	$	264
Key Assumptions Use In Option Value Calculations [Table Text Block]	'
	The table below indicates the key assumptions used in the option valuation calculations for options granted for the years ended September 30, 2013 and 2011:
		2013		2011
	Expected life	5 Years		5 Years
	Expected volatility	72.95	%	66.26 – 67.32	%
	Weighted-average volatility	72.95	%	66.56	%
	Risk-free interest rate	0.71	%	1.49 – 2.38	%
	Dividend yield	0	%	0	%
Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block]	'
	The following table is a summary of combined activity for all of the Company’s stock option plans:
				Weighted-		Weighted - Average
		Number of		Average		Remaining		Aggregate
		Options		Exercise		Contractual		Intrinsic
		Outstanding		Price		Term (years)		Value $(000)
	Outstanding, September 30, 2010		545,010		2.89
	Granted		241,500		3.8
	Canceled		-129,600		3.95
	Exercised		-197,248		1.97
	Outstanding, September 30, 2011		459,662		3.46
	Granted		–		–
	Canceled		-4,000		2.68
	Exercised		-100,328		2.6
	Outstanding, September 30, 2012		355,334		3.71
	Granted		75,000		12.92
	Canceled		-125		2.79
	Exercised		-67,000		2.93
	Outstanding, September 30, 2013		363,209	$	5.76		4.33	$	8,042
	Vested or expected to vest, September 30, 2013		352,231	$	5.64		4.29	$	7,842
	Exercisable, September 30, 2013		253,430	$	4.09		3.7	$	6,035
	Exercisable, September 30, 2012		240,859	$	3.59		3.56	$	4,017
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	'
	The following table presents weighted-average price and life information regarding options outstanding and exercisable at September 30, 2013:
	Outstanding							Exercisable
				Weighted-Average		Weighted-				Weighted-
				Remaining		Average				Average
	Exercise	Number of		Contractual		Exercise				Exercise
	Prices	Shares		Life (Years)		Price		Shares		Price
	$1.61 – $2.79		20,375		2.76	$	2.23		20,000	$	2.22
	$3.22 – $4.55		185,334		3.88		3.55		160,321		3.57
	$4.88 – $5.62		82,500		3.7		5.07		66,860		5.07
	$12.92		75,000		6.56		12.92		6,249		12.92
			363,209		4.33	$	5.76		253,430	$	4.09
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]	'
	Included in the total number of RSUs unvested at June 30, 2013 are certain RSUs that are subject to a further vesting condition that the Company’s common stock must trade at a price greater than the following market prices per share on a national securities exchange for a period of twenty consecutive days on or prior to certain anniversaries of the grant date as follows:
		Number of
		Unvested RSUs
	$10.00 per share prior to five years of the grant date	*	77,348
	$10.00 per share prior to four years of the grant date	*	187,939
	$17.50 per share prior to five years of the grant date	*	30,000
	$17.50 per share prior to four years of the grant date	*	90,339
	$17.50 per share prior to three years of the grant date	*	159,000
	$20.00 per share prior to four years of the grant date	*	8,500
	$22.50 per share prior to four years of the grant date		19,000
	$22.50 per share prior to three years of the grant date		220,500
	$22.50 per share prior to two and one-half years of the grant date	*	100,000
	No vesting condition		164,070
	Unvested RSUs, September 30, 2013		1,056,696
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	'
	The following table presents RSU information for the fiscal years ended September 30, 2011, 2012 and 2013:
		Number of
		RSUs
		Outstanding
	Outstanding, September 30, 2010		45,841
	Granted		282,500
	Canceled		-13,504
	Vested		-20,493
	Outstanding, September 30, 2011		294,344
	Granted		294,900
	Canceled		-28,501
	Vested		-96,159
	Outstanding, September 30, 2012		464,584
	Granted		793,732
	Canceled		-16,003
	Vested		-185,617
	Outstanding, September 30, 2013		1,056,696

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	12 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
Schedule Of Revenues By Product Lines Percentages [Table Text Block]	'
	The following table presents information about the Company’s revenues by product line for the years ended September 30:
		2013		2012		2011
	Visual Data Discovery solutions (including Datawatch Modeler, Datawatch Automator, Datawatch Enterprise Server, Datawatch Enterprise Server - Cloud, Datawatch RMS, Datawatch Report Manager OnDemand, and Datawatch Desktop)	97	%	95	%	91	%
	Business Service Management Solutions	3	%	5	%	9	%
	Total	100	%	100	%	100	%
Schedule of Segment Reporting Information, by Segment [Table Text Block]	'
	The following table presents information about the Company’s geographic operations:
						Intercompany
		Domestic		International		Eliminations		Total
		(In thousands)
	Year Ended September 30, 2013
	Total revenue	$	27,127	$	4,047	$	-878	$	30,296
	Operating loss		-1,471		-2,346		—		-3,817
	Long-lived assets		51,301		102		—		51,403
	Year Ended September 30, 2012
	Total revenue	$	22,915	$	3,958	$	-867	$	26,006
	Operating income (loss)		2,497		-954		—		1,543
	Long-lived assets		9,018		83		—		9,101
	Year Ended September 30, 2011
	Total revenue	$	14,671	$	4,042	$	-828	$	17,885
	Operating income (loss)		257		-190		—		67
	Long-lived assets		1,139		68		—		1,207

QUARTERLY_RESULTS_Tables

QUARTERLY RESULTS (Tables)	12 Months Ended
	Sep. 30, 2013
Quarterly Financial Information Disclosure [Abstract]	'
Schedule of Quarterly Financial Information [Table Text Block]	'
	Supplementary Information:
		First		Second		Third		Fourth
		(In thousands, except per share amounts)
	Year Ended September 30, 2013:
	Software license revenue	$	4,330	$	4,297	$	5,007	$	5,796
	Maintenance revenue		2,333		2,300		2,409		2,658
	Professional services revenue		158		234		411		363
	Cost of software licenses		521		531		549		904
	Cost of maintenance and services		530		565		602		743
	Expenses		5,820		6,213		7,196		9,939
	Loss from operations		-50		-478		-520		-2,769
	Net loss		-222		-626		-666		-2,683
	Net loss per share – basic	$	-0.03	$	-0.1	$	-0.1	$	-0.4
	Net loss per share – diluted	$	-0.03	$	-0.1	$	-0.1	$	-0.4
	Year Ended September 30, 2012:
	Software license revenue	$	4,208	$	4,274	$	4,699	$	3,619
	Maintenance revenue		1,717		1,861		2,106		2,218
	Professional services revenue		346		412		368		178
	Cost of software licenses		575		659		509		527
	Cost of maintenance and services		668		684		668		510
	Expenses		4,396		4,899		5,263		5,105
	Income (loss) from operations		632		305		733		-127
	Net income (loss)		603		160		548		-277
	Net income (loss) per share - basic	$	0.1	$	0.03	$	0.09	$	-0.04
	Net income (loss) per share - diluted	$	0.09	$	0.02	$	0.08	$	-0.04

NATURE_OF_BUSINESS_AND_SUMMARY3

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Allowance for doubtful accounts balance - beginning of year	$107	$78	$129
Additions to the allowance for doubtful accounts	0	93	92
Deductions against the allowance for doubtful accounts	-64	-64	-143
Allowance for doubtful accounts balance - end of year	$43	$107	$78

NATURE_OF_BUSINESS_AND_SUMMARY4

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Sales returns reserve balance - beginning of year	$105	$70	$35
Additions to the sales returns reserve	0	117	101
Deductions against the sales returns reserve	-85	-82	-66
Sales returns reserve balance - end of year	$20	$105	$70

NATURE_OF_BUSINESS_AND_SUMMARY5

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Capitalized and purchased software balance - beginning of year	$30	$14	$396
Capitalized software development costs	440	54	0
Amortization of capitalized software development costs and purchased software	-120	-38	-382
Capitalized and purchased software balance - end of year	$350	$30	$14

NATURE_OF_BUSINESS_AND_SUMMARY6

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3)	12 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2011
Ingram Micro, Inc. [Member]	'		'		'
Major Customer Percentage Of Total Revenue	0.00%	[1]	0.00%	[1]	13.00%
Major Customer Percentage Of Total Accounts Receivable	0.00%	[1]	0.00%	[1]	'
Lifeboat Distribution [Member]	'		'		'
Major Customer Percentage Of Total Revenue	20.00%		17.00%		15.00%
Major Customer Percentage Of Total Accounts Receivable	11.00%		19.00%		'
[1]	Revenues were less than 10% of the Company’s total revenue and accounts receivable in the respective period.

NATURE_OF_BUSINESS_AND_SUMMARY7

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $)	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified
Deferred Revenue	$7,211	$6,560
Less: Long-term portion of deferred maintenance	-214	-265
Current portion of deferred revenue	6,997	6,295
Maintenance [Member]	'	'
Deferred Revenue	6,907	5,167
License [Member]	'	'
Deferred Revenue	69	1,257
Other [Member]	'	'
Deferred Revenue	$235	$136

NATURE_OF_BUSINESS_AND_SUMMARY8

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $)	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified
2014	$1,096	'
2015	733	'
2016	633	'
2017	494	'
2018	985	'
Thereafter	4,939	'
Total estimated future amortization expense	8,880	792
Intellectual Property [Member]	'	'
2014	2,777	'
2015	2,777	'
2016	2,777	'
2017	1,905	'
2018	1,053	'
Thereafter	2,545	'
Total estimated future amortization expense	$13,834	'

NATURE_OF_BUSINESS_AND_SUMMARY9

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Gross Carrying Amount	$11,687	$4,589
Accumulated Amortization	2,807	3,797
Net Carrying Amount	8,880	792
Capitalized software [Member]	'	'
Weighted Average Useful Life inYears	'1 year	'
Gross Carrying Amount	1,630	1,190
Accumulated Amortization	1,280	1,160
Net Carrying Amount	350	30
Purchased software [Member]	'	'
Weighted Average Useful Life inYears	'5 years	'
Gross Carrying Amount	0	700
Accumulated Amortization	0	700
Net Carrying Amount	0	0
Patents [Member]	'	'
Weighted Average Useful Life inYears	'20 years	'
Gross Carrying Amount	160	160
Accumulated Amortization	73	65
Net Carrying Amount	87	95
Customer lists [Member]	'	'
Weighted Average Useful Life inYears	'14 years	'
Gross Carrying Amount	8,990	1,790
Accumulated Amortization	1,401	1,195
Net Carrying Amount	7,589	595
Assembled Workforce [Member]	'	'
Weighted Average Useful Life inYears	'0 years	'
Gross Carrying Amount	620	0
Accumulated Amortization	0	0
Net Carrying Amount	620	0
Noncompete agreements [Member]	'	'
Weighted Average Useful Life inYears	'1 year	'
Gross Carrying Amount	0	640
Accumulated Amortization	0	640
Net Carrying Amount	0	0
Trademarks [Member]	'	'
Weighted Average Useful Life inYears	'3 years	'
Gross Carrying Amount	120	21
Accumulated Amortization	4	21
Net Carrying Amount	116	0
Loan acquisition costs [Member]	'	'
Weighted Average Useful Life inYears	'4 years	'
Gross Carrying Amount	167	88
Accumulated Amortization	49	16
Net Carrying Amount	$118	$72

Recovered_Sheet1

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) (USD $)	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified
2014	$1,096	'
2015	733	'
2016	633	'
2017	494	'
2018	985	'
Thereafter	4,939	'
Total estimated future amortization expense	$8,880	$792

Recovered_Sheet2

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 8) (USD $)	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified
Total assets at fair value	$2,234	$2,234
Line of credit	900	900
Note payable	3,945	4,000
Debt discount	703	1,017
Total liabilities at fair value	3,985	3,883
Money Market Funds [Member]	'	'
Total assets at fair value	2,234	2,234
Fair Value, Inputs, Level 1 [Member]	'	'
Total assets at fair value	2,234	2,234
Line of credit	900	900
Note payable	3,945	4,000
Debt discount	0	0
Total liabilities at fair value	4,845	4,900
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]	'	'
Total assets at fair value	2,234	2,234
Fair Value, Inputs, Level 2 [Member]	'	'
Total assets at fair value	0	0
Line of credit	0	0
Note payable	'	0
Debt discount	-860	-1,017
Total liabilities at fair value	-860	-1,017
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]	'	'
Total assets at fair value	0	0
Fair Value, Inputs, Level 3 [Member]	'	'
Total assets at fair value	0	0
Line of credit	0	0
Note payable	'	0
Debt discount	0	0
Total liabilities at fair value	0	0
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]	'	'
Total assets at fair value	$0	$0

Recovered_Sheet3

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 9) (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Quantity of option shares not included	0	123,105	105,819
Weighted-average exercise price	$0	$12.30	$5.18

Recovered_Sheet4

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)	1 Months Ended	12 Months Ended
	Mar. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Gain (Loss) on Disposition of Business	'	$374,000	'	'
License Sales To Distributors And Resellers As Percentage Of Total Revenue	'	45.00%	31.00%	41.00%
Deferred Revenue Recognition Period	'	'1 year	'	'
Initial Service Period	'	'90 days	'	'
Regular Invoicing Period	'	'90 days	'	'
Subscription Cancellation Notice Period	'	'90 days	'	'
Product Warranty Period	'	'30 days	'	'
Money Back Guarantee Period	'	'30 days	'	'
Number Of Major Customers	'	2	'	'
Automatic Agreement Renewal Period	'	'1 year	'	'
Maintenance Period	'	'12 months	'	'
Depreciation, Depletion and Amortization, Nonproduction, Total	'	145,000	137,000	197,000
Foreign Currency Transaction Gain (Loss), Realized	'	41,000	126,000	89,000
Advertising Expense	'	290,000	9,000	138,000
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent, Total	'	-162,000	82,000	-121,000
Amortization of Intangible Assets	'	1,811,000	871,000	'
Capitalized Closing Costs And Adjustments	75,000	'	'	'
Finite-lived Intangible Assets Acquired	8,541,000	15,840,000	'	'
Intellectual Property [Member]	'	'	'	'
Amortization of Intangible Assets	'	1,361,000	'	'
Finite-lived Intangible Assets Acquired	'	7,900,000	'	'
Selling and Marketing Expense [Member]	'	'	'	'
Amortization of Intangible Assets	'	206,000	166,000	166,000
Direct MailDirect Response Expenses [Member]	'	'	'	'
Advertising Expense	'	7,000	9,000	52,000
General and Administrative Expense [Member]	'	'	'	'
Amortization of Intangible Assets	'	4,000	'	'
Interest Expense [Member]	'	'	'	'
Amortization of Intangible Assets	'	33,000	16,000	'
Software Licenses [Member]	'	'	'	'
Amortization of Intangible Assets	'	$128,000	$46,000	$390,000
Unisys Belgium [Member]	'	'	'	'
Concentration Risk, Percentage	'	24.00%	'	'
Xerox [Member]	'	'	'	'
Concentration Risk, Percentage	'	19.00%	'	'
Thomson Reuters [Member]	'	'	'	'
Concentration Risk, Percentage	'	23.00%	'	'
Minimum [Member]	'	'	'	'
Capitalized Computer Software Amortization Period	'	'4 months	'	'
Finite-Lived Intangible Asset, Useful Life	'	'5 years	'	'
Maximum [Member]	'	'	'	'
Capitalized Computer Software Amortization Period	'	'24 months	'	'
Finite-Lived Intangible Asset, Useful Life	'	'7 years 7 months 6 days	'	'

ACQUISITIONS_Details

ACQUISITIONS (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Current assets	$1,336
Property, plant and equipment	2
Other intangible assets	15,840
Goodwill	28,152
Obligations under deferred revenue	-189
Accounts payable and accrued expenses	-756
Deferred income taxes	-1,566
Purchase Price	42,819
Common stock issued	-42,644
Seller financing	-175
Cash and cash equivalents acquired	-383
Net cash provided by acquisition	$383

ACQUISITIONS_Details_1

ACQUISITIONS (Details 1) (USD $)	1 Months Ended	12 Months Ended
	Mar. 30, 2012	Sep. 30, 2013
Total intangible assets, Fair Value	$8,541,000	$15,840,000
Customer Relationships [Member]	'	'
Total intangible assets, Fair Value	'	7,200,000
Estimated Lives	'	'15 years
Developed Technology [Member]	'	'
Total intangible assets, Fair Value	'	7,900,000
Estimated Lives	'	'7 years 6 months
Trade Name [Member]	'	'
Total intangible assets, Fair Value	'	120,000
Estimated Lives	'	'2 years 6 months
Assembled Workforce [Member]	'	'
Total intangible assets, Fair Value	'	$620,000

ACQUISITIONS_Details_2

ACQUISITIONS (Details 2) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Total revenue	$33,271	$28,828
Net income (loss)	($6,542)	($2,639)
Net income (loss) per share	'	'
Basic and diluted (in dollars per share)	($0.79)	($0.33)
Number of weighted average shares	'	'
Basic and diluted (in shares)	8,322	8,117

ACQUISITIONS_Details_Textual

ACQUISITIONS (Details Textual) (USD $)	1 Months Ended	12 Months Ended
	Aug. 28, 2013	Sep. 30, 2013
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed	'	$1,000,000
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	42,644,000	'
Business Acquisition, Share Price	$23.12	'
Maximum [Member]	'	'
Property, Plant and Equipment, Useful Life	'	'7 years 6 months
Minimum [Member]	'	'
Property, Plant and Equipment, Useful Life	'	'5 years
Stock Purchase Acquisition [Member]	'	'
Business Combination, Consideration Transferred, Total	$175,000	'
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	1,866,716	'
Stock Purchase Acquisition [Member] | Common Stock [Member]	'	'
Business Acquisition Equity Interests Issued Or Issuable Number Of Shares Issued Under Held Back Period	216,994	'
Business Acquisition Equity Interests Issued Or Issuable Number Of Shares Issued To Be Held Back For A Period	'15 months	'
Stock Purchase Acquisition [Member] | Restricted Stock Units (RSUs) [Member]	'	'
Business Acquisition Equity Interests Issued Or Issuable Number Of Shares Issued To Be Held Back For A Period	'six months	'
Business Acquisition Equity Interests Issued Or Issuable Number Of Restricted Stock Issued	86,231	'

ACCRUED_EXPENSES_Details

ACCRUED EXPENSES (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified
Accrued royalties and commissions	$1,483	$809
Accrued bonus	606	229
Accrued other	139	96
Accrued professional fees and consulting	417	230
Accrued salaries and benefits	295	162
Accrued acquisition fees	159	0
Accrued travel and entertainment	165	46
Accrued taxes	89	42
Accrued marketing	85	178
Accrued severance	43	0
Total	$3,481	$1,792

FINANCING_ARRANGEMENTS_Details

FINANCING ARRANGEMENTS (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
2014	$467
2015	673
Thereafter	860
Total future principal payments	2,000
Revolving Line Of Credit [Member]	'
2014	1,567
2015	667
2016	611
Thereafter	0
Total future principal payments	$2,845

FINANCING_ARRANGEMENTS_Details1

FINANCING ARRANGEMENTS (Details 1) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
2014	$467
2015	673
Thereafter	860
Total future principal payments	$2,000

FINANCING_ARRANGEMENTS_Details2

FINANCING ARRANGEMENTS (Details 2) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
2014	$157
2015	157
2016	157
2017	157
2018	157
Thereafter	75
Total estimated future amortization of debt discount	$860

FINANCING_ARRANGEMENTS_Details3

FINANCING ARRANGEMENTS (Details Textual) (USD $)	1 Months Ended	12 Months Ended				0 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Mar. 30, 2012	Aug. 15, 2013	Sep. 30, 2013	Sep. 30, 2012
						Amendment To MCRC Agreement [Member]	Note Warrant [Member]	Note Warrant [Member]
Line of Credit Facility, Maximum Borrowing Capacity	'	$1,945,000	'	'	$2,000,000	$2,000,000	'	'
Line of Credit Facility, Amount Outstanding	900,000	'	900,000	'	1,500,000	'	'	'
Floating Interest Rate On Credit Facility Principal Amount Outstanding	'	1.50%	'	'	'	2.50%	'	'
Interest Rate Floor On Credit Facility Principal Amount Outstanding	'	3.25%	'	'	'	3.25%	'	'
Repayments of Lines of Credit	600,000	0	600,000	'	'	'	'	'
Debt Instrument, Face Amount	'	'	'	'	4,000,000	2,000,000	'	'
Class of Warrant or Right, Outstanding	'	'	'	'	185,000	'	'	'
Debt Instrument, Interest Rate, Stated Percentage	'	10.00%	'	'	'	10.00%	'	'
Debt Instrument, Maturity Date	'	28-Feb-19	'	'	'	'	'	'
Period Of Interest Rate Premium On Principal Payments	'	'3 years	'	'	'	'	'	'
Share Price	'	$11.54	'	'	'	'	'	'
Trading Period Prior To Issuance Of Warrants	'	'45 days	'	'	'	'	'	'
Stock and Warrants Issued During Period, Value, Preferred Stock and Warrants	'	1,100,000	1,096,000	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	'	'5 years	'	'5 years	'	'	'7 years	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	'	72.95%	'	'	'	'	68.18%	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	'	0.71%	'	'	'	'	1.61%	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	'	0.00%	'	0.00%	'	'	0.00%	'
Debt Instrument, Unamortized Discount	1,017,000	703,000	1,017,000	'	'	'	'	'
Interest Expense, Total	'	'	'	'	'	'	157,000	79,000
Debt Instrument, Interest Rate, Increase (Decrease)	'	'	'	'	'	8.00%	'	'
Interest Rate Premium On Principal Payments	'	'	'	'	'	3.00%	'	'
Debt Instrument, Periodic Payment, Principal	'	'	'	'	'	2,000,000	'	'
Debt Instrument, Accrued Interest	'	4,000	'	'	'	'	9,000	'
Debt Instrument, Periodic Payment, Interest	'	'	'	'	'	23,000	'	'
Debt Instrument, Unamortized Premium	'	'	'	'	'	$60,000	'	'

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
2014	$452
2015	209
2016	152
Total future minimum lease payments	$813

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Operating Leases, Rent Expense	$545,000	$454,000	$352,000
Royalty Expense	$194,000	$1,161,000	$1,630,000
Royalties As Percent Of Revenues	50.00%	'	'

TAXES_Details

TAXES (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Domestic	($2,139)	$1,253	$257
Foreign	-2,146	-169	-90
Total	($4,285)	$1,084	$167

TAXES_Details_1

TAXES (Details 1) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Current Federal	($4)	$4	$0
Current State	-1	21	11
Current Foreign	0	25	25
Current provision	-5	50	36
Deferred Federal	-1,070	-391	-185
Deferred State	-293	-3	-1
Deferred Foreign	-83	0	0
Change in valuation allowance	1,363	394	185
Deferred provision	-83	0	0
Total (benefit) provision	($88)	$50	$35

TAXES_Details_2

TAXES (Details 2) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
In Thousands, unless otherwise specified
Deferred tax liabilities:	'	'	'
Prepaid expenses	($86)	($47)	($91)
Acquired intangibles	-3,456	0	-40
Deferred tax liabilities	-3,542	-47	-131
Deferred tax assets:	'	'	'
Net operating loss carryforwards	7,717	5,493	5,146
Research and development credits	1,120	778	624
Alternative minimum tax credits	154	154	164
Accounts and notes receivable reserves	40	105	27
Depreciation and amortization	1,861	1,446	1,241
Other	158	-300	165
Deferred tax assets	11,050	7,676	7,367
Total	7,508	7,629	7,236
Valuation allowance	-8,991	-7,629	-7,236
Deferred tax liability, net	($1,483)	$0	$0

TAXES_Details_3

TAXES (Details 3) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Provision at federal statutory rate	($1,457)	$369	$57
State, net of federal impact	-303	14	7
Foreign income taxes	-268	25	25
Valuation allowance increase	1,363	394	185
Return to provision adjustments	3	-256	-181
Foreign deferred tax asset rate change and true-up	39	-369	0
Stock-based compensation	316	0	0
Acquisition Costs	339	0	0
Other	-120	-127	-58
Total (benefit) provision	($88)	$50	$35

TAXES_Details_4

TAXES (Details 4) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Beginning Balance	$866	$850
Additions for prior year tax positions	132	16
Beginning Balance	$998	$866

TAXES_Details_Textual

TAXES (Details Textual) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax	$154,000	$154,000	$164,000	'
Deferred Tax Assets, in Process Research and Development	1,120,000	778,000	624,000	'
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%	34.00%	34.00%	'
Liability for Uncertain Tax Positions, Noncurrent	353,000	'	'	150,000
Increase Decrease In Liability For Uncertain Tax Positions	'	25,000	25,000	'
Unrecognized Tax Benefits, Period Increase (Decrease)	'	9,000	2,000	'
Unrecognized Tax Benefits	998,000	866,000	850,000	'
Tax Loss Carryforwards	1,579,000	'	'	'
Income Tax Examination, Penalties and Interest Accrued, Total	14,000	'	'	'
Federal [Member]	'	'	'	'
Increase Decrease In Liability For Uncertain Tax Positions	107,000	'	'	'
Tax Loss Carryforwards	8,174,000	'	'	'
State (Member)	'	'	'	'
Increase Decrease In Liability For Uncertain Tax Positions	46,000	'	'	'
Tax Loss Carryforwards	1,770,000	'	'	'
United Kingdom [Member]	'	'	'	'
Tax Loss Carryforwards	7,405,000	'	'	'
Australia [Member]	'	'	'	'
Tax Loss Carryforwards	4,023,000	'	'	'
Germany [Member]	'	'	'	'
Tax Loss Carryforwards	1,305,000	'	'	'
Mergence [Member]	'	'	'	'
Tax Loss Carryforwards	182,000	'	'	'
Singapore [Member]	'	'	'	'
Tax Loss Carryforwards	1,230,000	'	'	'
Sweden [Member]	'	'	'	'
Tax Loss Carryforwards	$8,966,000	'	'	'

SHAREHOLDERS_EQUITY_Details

SHAREHOLDERS' EQUITY (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation, Total	$3,323	$879	$264
Sales and marketing [Member]	'	'	'
Share-based Compensation, Total	2,206	528	100
Engineering and product development [Member]	'	'	'
Share-based Compensation, Total	442	43	8
Professional Services [Member]	'	'	'
Share-based Compensation, Total	17	0	0
General and administrative [Member]	'	'	'
Share-based Compensation, Total	$658	$308	$156

SHAREHOLDERS_EQUITY_Details_1

SHAREHOLDERS' EQUITY (Details 1)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2011
Expected life (Years)	'5 years	'5 years
Expected volatility	72.95%	'
Expected volatility, Minimum	'	66.26%
Expected volatility, Maximum	'	67.32%
Weighted-average volatility	72.95%	66.56%
Risk-free interest rate	0.71%	'
Risk free interest rate, Minimum	'	1.49%
Risk free interest rate, Maximum	'	2.38%
Dividend yield	0.00%	0.00%

SHAREHOLDERS_EQUITY_Details_2

SHAREHOLDERS' EQUITY (Details 2) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Number of Options Outstanding, beginning balance	355,334	459,662	545,010
Number of Options Outstanding, Granted	75,000	0	241,500
Number of Options Outstanting, Canceled	-125	-4,000	-129,600
Number of Options Outstanding, Exercised	-67,000	-100,328	-197,248
Number of Options Outstanding, ending balance	363,209	355,334	459,662
Number of Options Outstanding, Vested or expected to vest	352,231	'	'
Number of Options Outstanding, Exercisable	253,430	240,859	'
Weighted - Average Exercise Price, beginning balance	$3.71	$3.46	$2.89
Weighted-Average Exercise Price, Granted	$12.92	$0	$3.80
Weighted-Average Exercise Price, Canceled	$2.79	$2.68	$3.95
Weighted -Average Exercise Price, Exercised	$2.93	$2.60	$1.97
Weighted - Average Exercise Price, ending balance	$5.76	$3.71	$3.46
Weighted-Average Exercise Price, Vested or expected to vest	$5.64	'	'
Weighted-Average Exercise Price, Exercisable	$4.09	$3.59	'
Outstanding, Weighted-Average Remaining Contractual Life (Years)	'4 years 3 months 29 days	'	'
Weighted-Average Remaining Contractual Term, Vested or expected to vest	'4 years 3 months 14 days	'	'
Weighted-Average Remaining Contractual Term, Exercisable	'3 years 8 months 12 days	'3 years 6 months 22 days	'
Aggregate Intrinsic Value, ending balance	$8,042	'	'
Aggregate Intrinsic Value, Vested or expected to vest	7,842	'	'
Aggregate Intrinsic Value, Exercisable	$6,035	$4,017	'

SHAREHOLDERS_EQUITY_Details_3

SHAREHOLDERS' EQUITY (Details 3) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Outstanding, Number Of Shares	363,209	'	'	'
Outstanding, Weighted-Average Remaining Contractual Life (Years)	'4 years 3 months 29 days	'	'	'
Outstanding, Weighted-Average Exercise Price	$5.76	$3.71	$3.46	$2.89
Exercisable, Shares	253,430	'	'	'
Exercisable, Weighted-Average Exercise Price	$4.09	'	'	'
Exercise Price Range One [Member]	'	'	'	'
Outstanding, Exercise Prices, lower range limit	$1.61	'	'	'
Outstanding, Exercise Prices, upper range limit	$2.79	'	'	'
Outstanding, Number Of Shares	20,375	'	'	'
Outstanding, Weighted-Average Remaining Contractual Life (Years)	'2 years 9 months 4 days	'	'	'
Outstanding, Weighted-Average Exercise Price	$2.23	'	'	'
Exercisable, Shares	20,000	'	'	'
Exercisable, Weighted-Average Exercise Price	$2.22	'	'	'
Exercise Price Range Two [Member]	'	'	'	'
Outstanding, Exercise Prices, lower range limit	$3.22	'	'	'
Outstanding, Exercise Prices, upper range limit	$4.45	'	'	'
Outstanding, Number Of Shares	185,334	'	'	'
Outstanding, Weighted-Average Remaining Contractual Life (Years)	'3 years 10 months 17 days	'	'	'
Outstanding, Weighted-Average Exercise Price	$3.55	'	'	'
Exercisable, Shares	160,321	'	'	'
Exercisable, Weighted-Average Exercise Price	$3.57	'	'	'
Exercise Price Range Three [Member]	'	'	'	'
Outstanding, Exercise Prices, lower range limit	$4.88	'	'	'
Outstanding, Exercise Prices, upper range limit	$5.62	'	'	'
Outstanding, Number Of Shares	82,500	'	'	'
Outstanding, Weighted-Average Remaining Contractual Life (Years)	'3 years 8 months 12 days	'	'	'
Outstanding, Weighted-Average Exercise Price	$5.07	'	'	'
Exercisable, Shares	66,860	'	'	'
Exercisable, Weighted-Average Exercise Price	$5.07	'	'	'
Exercise Price Range Four [Member]	'	'	'	'
Outstanding, Exercise Prices	$12.92	'	'	'
Outstanding, Number Of Shares	75,000	'	'	'
Outstanding, Weighted-Average Remaining Contractual Life (Years)	'6 years 6 months 22 days	'	'	'
Outstanding, Weighted-Average Exercise Price	$12.92	'	'	'
Exercisable, Shares	6,249	'	'	'
Exercisable, Weighted-Average Exercise Price	$12.92	'	'	'

SHAREHOLDERS_EQUITY_Details_4

SHAREHOLDERS' EQUITY (Details 4) (USD $)	12 Months Ended
	Sep. 30, 2013
Five Years [Member] | Ten Dollar Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	77,348
Weighted Average Fair Value Per Share Restricted Stock	$10
Five Years [Member] | Seventeen Dollars And Fifty Cents Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	30,000
Weighted Average Fair Value Per Share Restricted Stock	$17.50
Four Years [Member] | Ten Dollar Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	187,939
Weighted Average Fair Value Per Share Restricted Stock	$10
Four Years [Member] | Seventeen Dollars And Fifty Cents Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	90,339
Weighted Average Fair Value Per Share Restricted Stock	$17.50
Four Years [Member] | Twenty Dollar Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	8,500
Weighted Average Fair Value Per Share Restricted Stock	$20
Four Years [Member] | Twenty Two Dollars And Fifty Cents Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	19,000
Weighted Average Fair Value Per Share Restricted Stock	$22.50
Three Years [Member] | Seventeen Dollars And Fifty Cents Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	159,000
Weighted Average Fair Value Per Share Restricted Stock	$17.50
Three Years [Member] | Twenty Two Dollars And Fifty Cents Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	220,500
Weighted Average Fair Value Per Share Restricted Stock	$22.50
Two and One Half Years [Member] | Twenty Two Dollars And Fifty Cents Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	100,000
Weighted Average Fair Value Per Share Restricted Stock	$22.50
No vesting [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	164,070
Restricted Stock Units (RSUs) [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	1,056,696

SHAREHOLDERS_EQUITY_Details_5

SHAREHOLDERS' EQUITY (Details 5)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Number of Options Outstanding, beginning balance	355,334	459,662	545,010
Number of Options Outstanding, Granted	75,000	0	241,500
Number of Options Outstanting, Canceled	-125	-4,000	-129,600
Number of Options Outstanding, Vested	352,231	'	'
Number of Options Outstanding, ending balance	363,209	355,334	459,662
Restricted Stock Units (RSUs) [Member]	'	'	'
Number of Options Outstanding, beginning balance	464,584	294,344	45,841
Number of Options Outstanding, Granted	793,732	294,900	282,500
Number of Options Outstanting, Canceled	-16,003	-28,501	-13,504
Number of Options Outstanding, Vested	-185,617	-96,159	-20,493
Number of Options Outstanding, ending balance	1,056,696	464,584	294,344

SHAREHOLDERS_EQUITY_Details_Te

SHAREHOLDERS' EQUITY (Details Textual) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	75,000	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$7.61	'	$2.37
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$1,039,000	$778,000	'
Proceeds from Stock Options Exercised	198,000	261,000	388,000
Deferred Tax Expense from Stock Options Exercised	61,000	691,000	'
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total	559,000	'	'
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	'1 year 7 months 17 days	'	'
Share Based Compensation Arrangement By Share Based Payment Award Estimated Forfeiture Rate	10.00%	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,575,686	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	145,889	'	'
Stock Issued During Period Shares Restricted Stock Award Unvested	1,056,696	'	'
Restricted Stock Unit Vesting Rate	33.33%	'	'
Stock Issued During Period Value Restricted Stock Award Price Per Share	$18.40	$10.61	$4.18
Stock Issued During Period, Value, Restricted Stock Award, Gross	14,602,000	3,100,000	1,200,000
Number Of Restricted Stock Units Fulfill The Condition	653,126	'	'
Restricted Stock Units (RSUs) [Member]	'	'	'
Recognition Period For Restricted Stock Expense	'2 years 3 months 29 days	'	'
Restricted Stock or Unit Expense	3,085,000	709,000	147,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$16,020,000	'	'

RETIREMENT_SAVINGS_PLAN_Detail

RETIREMENT SAVINGS PLAN (Details Textual)	12 Months Ended
	Sep. 30, 2013
Defined Benefit Plan Contributions Vesting Period	'5 years

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Percent Of Revenue By Product Line	100.00%	100.00%	100.00%
Visual Data Discovery solutions [Member]	'	'	'
Percent Of Revenue By Product Line	97.00%	95.00%	91.00%
Business Service Management Solutions [Member]	'	'	'
Percent Of Revenue By Product Line	3.00%	5.00%	9.00%

SEGMENT_INFORMATION_Details_1

SEGMENT INFORMATION (Details 1) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Total revenue	'	'	'	'	'	'	'	'	$30,296	$26,006	$17,885
Operating income (loss)	-2,769	-520	-478	-50	-127	733	305	632	-3,817	1,543	67
Long-lived assets	51,403	'	'	'	9,101	'	'	'	51,403	9,101	1,207
Domestic [Member]	'	'	'	'	'	'	'	'	'	'	'
Total revenue	'	'	'	'	'	'	'	'	27,127	22,915	14,671
Operating income (loss)	'	'	'	'	'	'	'	'	-1,471	2,497	257
Long-lived assets	51,301	'	'	'	9,018	'	'	'	51,301	9,018	1,139
International [Member]	'	'	'	'	'	'	'	'	'	'	'
Total revenue	'	'	'	'	'	'	'	'	4,047	3,958	4,042
Operating income (loss)	'	'	'	'	'	'	'	'	-2,346	-954	-190
Long-lived assets	102	'	'	'	83	'	'	'	102	83	68
Intercompany Eliminations [Member]	'	'	'	'	'	'	'	'	'	'	'
Total revenue	'	'	'	'	'	'	'	'	-878	-867	-828
Operating income (loss)	'	'	'	'	'	'	'	'	0	0	0
Long-lived assets	$0	'	'	'	$0	'	'	'	$0	$0	$0

QUARTERLY_RESULTS_Details

QUARTERLY RESULTS (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Software license revenue	$5,796	$5,007	$4,297	$4,330	$3,619	$4,699	$4,274	$4,208	$19,430	$16,800	$9,858
Maintenance revenue	2,658	2,409	2,300	2,333	2,218	2,106	1,861	1,717	9,700	7,902	6,219
Professional services revenue	363	411	234	158	178	368	412	346	1,166	1,304	1,808
Cost of software licenses	904	549	531	521	527	509	659	575	2,505	2,270	2,237
Cost of maintenance and services	743	602	565	530	510	668	684	668	2,440	2,530	2,537
Expenses	9,939	7,196	6,213	5,820	5,105	5,263	4,899	4,396	'	'	'
Income (loss) from operations	-2,769	-520	-478	-50	-127	733	305	632	-3,817	1,543	67
Net income (loss)	($2,683)	($666)	($626)	($222)	($277)	$548	$160	$603	($4,197)	$1,034	$132
Net income (loss) per share - basic (in dollars per share)	($0.40)	($0.10)	($0.10)	($0.03)	($0.04)	$0.09	$0.03	$0.10	($0.63)	$0.17	$0.02
Net income (loss) per share - diluted (in dollars per share)	($0.40)	($0.10)	($0.10)	($0.03)	($0.04)	$0.08	$0.02	$0.09	($0.63)	$0.15	$0.02