Datawatch (DWCH) Inactive 10-Q6 Feb 142014 Q1 Quarterly reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
Document And Entity Information	Dec. 31, 2013	Jan. 24, 2014
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	'	8,551,132
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Dec-13	'
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013
ASSETS	'	'
Cash and cash equivalents	$7,967	$10,312
Accounts receivable, net of allowance for doubtful accounts and sales returns of $85 and $63 as of December 31, 2013 and September 30, 2013, respectively	5,347	6,622
Inventories	38	45
Prepaid expenses	940	939
Total current assets	14,292	17,918
Property and equipment:	'	'
Office furniture and equipment	1,446	1,382
Software	492	492
Leasehold improvements	551	551
Property, Plant and Equipment, Gross	2,489	2,425
Less accumulated depreciation	-2,173	-2,136
Property and equipment, net	316	289
Acquired intellectual property, net	13,140	13,834
Other intangible assets, net	8,180	8,260
Goodwill	28,772	28,772
Other long-term assets	90	248
Total assets	64,790	69,321
LIABILITIES AND SHAREHOLDERSâ€™ EQUITY	'	'
Line of credit	900	900
Current portion of debt, net of unamortized debt discount of $157 as of December 31, 2013 and September 30, 2013, respectively	1,177	977
Accounts payable	992	1,433
Accrued expenses	2,580	3,481
Deferred revenue	6,940	6,997
Total current liabilities	12,589	13,788
LONG-TERM LIABILITIES:	'	'
Long-term debt, net of unamortized debt discount of $664 and $703 as of December 31, 2013 and September 30, 2013, respectively	1,780	2,108
Deferred revenue, long-term	42	214
Deferred tax liability	1,483	1,483
Other long-term liabilities	353	353
Total long-term liabilities	3,658	4,158
Total liabilities	16,247	17,946
COMMITMENTS AND CONTINGENCIES (Note 5)	'	'
SHAREHOLDERSâ€™ EQUITY:	'	'
Common stock, par value $0.01; authorized: 20,000,000 shares; issued: 8,869,147 shares and 8,795,023 shares, respectively; outstanding: 8,551,676 shares and 8,477,552 shares, respectively	89	88
Additional paid-in capital	75,485	72,726
Accumulated deficit	-25,635	-20,021
Accumulated other comprehensive loss	-1,256	-1,278
Stockholders Equity before Treasury Stock	48,683	51,515
Less treasury stock, at cost, 14,246 shares	-140	-140
Total shareholdersâ€™ equity	48,543	51,375
Total liabilities and shareholdersâ€™ equity	$64,790	$69,321

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013
Allowance for Doubtful Accounts Receivable, Current	$85	$63
Debt Instrument, Unamortized discount Current (in dollars)	157	157
Debt instrument, unamortized discount - Long Term (in dollars)	$664	$703
Common stock, par or stated value per share (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	8,869,147	8,795,023
Common stock, shares outstanding	8,551,676	8,477,552
Treasury stock, shares	14,246	14,246

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
REVENUE:	'	'
Software licenses	$5,433	$4,330
Maintenance	2,993	2,333
Professional services	383	158
Total revenues	8,809	6,821
COSTS AND EXPENSES:	'	'
Cost of software licenses	990	521
Cost of maintenance and services	849	530
Sales and marketing	7,384	3,776
Engineering and product development	2,375	853
General and administrative	2,668	1,191
Total costs and expenses	14,266	6,871
LOSS FROM OPERATIONS	-5,457	-50
Interest expense	-133	-167
Other income	34	9
Foreign currency transaction loss	-58	-5
LOSS FROM OPERATIONS BEFORE INCOME TAXES	-5,614	-213
Provision for income tax	0	-9
NET LOSS	($5,614)	($222)
Net loss per share - basic: (in dollars per share)	($0.66)	($0.03)
Net loss per share - diluted: (in dollars per share)	($0.66)	($0.03)
Weighted-average shares outstanding - basic (in shares)	8,532,882	6,378,343
Weighted-average shares outstanding - diluted (in shares)	8,532,882	6,378,343

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Net loss	($5,614)	($222)
Other comprehensive loss:	'	'
Foreign currency translation adjustments	22	-11
Comprehensive loss	($5,592)	($233)

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($5,614)	($222)
Adjustments to reconcile net loss to cash (used in) provided by operating activities:	'	'
Depreciation and amortization	1,052	517
Share-based compensation expense	2,719	577
Non-cash interest expense - amortization of debt discount	39	39
Amortization of debt issuance costs	14	8
Changes in operating assets and liabilities:	'	'
Accounts receivable	1,289	91
Inventories	6	5
Prepaid expenses and other assets	159	-261
Accounts payable, accrued expenses and other liabilities	-1,345	-298
Deferred revenue	-255	-328
Cash (used in) provided by operating activities	-1,936	128
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Capitalized software development costs	-250	0
Purchases of property and equipment	-66	-17
Cash used in investing activities	-316	-17
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds from exercise of stock options	41	119
Repayments on debt	-167	0
Capitalized debt issuance costs	-5	0
Cash (used in) provided by financing activities	-131	119
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	38	-15
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	-2,345	215
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	10,312	8,722
CASH AND CASH EQUIVALENTS, END OF PERIOD	7,967	8,937
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:	'	'
Interest paid	80	111
Income taxes paid	$21	$0

NATURE_OF_BUSINESS_AND_SUMMARY

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Business Description and Accounting Policies [Text Block]

NOTE 1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business and Basis of Presentation

Datawatch Corporation (the “Company” or “Datawatch”) designs, develops, markets, distributes and supports 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.

The accompanying unaudited condensed consolidated financial statements include the accounts of Datawatch and its wholly-owned subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2013 filed with the SEC. All intercompany accounts and transactions have been eliminated in consolidation.

In the opinion of management, the accompanying condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements for the fiscal year ended September 30, 2013, and include all adjustments necessary for fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. 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.

Summary of Significant Accounting Policies

Accounting Estimates

The preparation of financial statements in conformity with 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 condensed 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. The most 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, the valuation and useful lives of acquired intellectual property and other intangible assets and the valuation of share-based awards. Actual results could differ from those estimates and judgments.

Revenue Recognition

Datawatch software products are generally sold in multiple element arrangements which may include software licenses, professional services and post-contract customer support. 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 44% and 32% of total sales for the three months ended December 31, 2013 and 2012, respectively. 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 obligations by the Company.

Revenue typically consists of software licenses, post-contract support and professional services. Revenue from the sale of all software products 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. Post-contract 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 post-contract customer maintenance support agreements is deferred and recognized ratably over the term of the agreements, typically one year. 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, 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 provisions.

For multiple element arrangements, total fees are allocated to each of the undelivered elements based upon vendor specific objective evidence (“VSOE”) of their fair values, with the residual amount recognized as revenue for the delivered elements. 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, generally the software license. 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. VSOE for post-contract customer support contracts is generally based on stated renewal rates when the Company has determined that the renewal rate is substantive and falls within the Company’s customary pricing practices. Additionally, the VSOE of fair value of the professional services is based on the amounts charged for these elements when sold separately. VSOE calculations are routinely updated and reviewed.

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. 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 revenue recognition criteria 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.

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 as described above. 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.

Capitalized Software Development Costs

The Company capitalizes certain software development costs as well as purchased software upon achieving technological feasibility of the related products. Costs that are incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, software development costs are capitalized until the product is available for general release to customers Such capitalized costs are amortized to cost of software licenses using the straight-line method over the estimated life of the product which is generally nine to 18 months. The net amount of capitalized software development costs was approximately $455,000 and $350,000 at December 31, 2013 and September 30, 2013, respectively. During the three months ended December 31, 2013, the Company capitalized approximately $250,000 of software development costs related to new products in development that had reached technological feasibility. The Company did not capitalize any software development costs during the three months ended December 31, 2012.

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.

Deferred Revenue

Deferred revenue consists primarily 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 twelve months.

Other deferred revenue consists of deferred 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.

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 lesser of the estimated useful lives of the related assets or term 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 approximately $34,000 and $33,000, respectively, for the three months ended December 31, 2013 and 2012, respectively.

Acquired Intellectual Property

On March 30, 2012, the Company acquired 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 in the Panopticon Software, AB (Panopticon) transaction (Note 2) 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 three months ended December 31, 2013 and 2012 was approximately $694,000 and $431,000, respectively.

The estimated future amortization expense related to the acquired intellectual property is as follows (in thousands):

Fiscal Years Ending September 30,

Remainder of 2014

2,082

2015

2,777

2016

2,777

2017

1,905

2018

1,053

Thereafter

2,546

Total estimated future amortization expense

13,140

Other Intangible Assets

Other intangible assets consist of internally developed software, trade names, patents and customer lists acquired through business combinations. Other intangible assets also include loan acquisition costs. 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, ranging from nine months to 20 years. The values allocated to internally developed software are amortized using the straight-line method over the estimated useful lives of the related asset, ranging from nine to 18 months. The values allocated to trade names are amortized using the straight-line method over the estimated useful life of the related asset (two and one half years). The values allocated to patents are amortized using the straight-line method over the estimated useful life of the related asset (20 years). The values allocated to customer lists are amortized using the straight-line method over the estimated useful lives of the related asset, ranging from ten to 15 years. Loan acquisition costs are amortized using the straight-line method over the life of the debt, ranging from two to seven years. 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.

The intangible asset amounts amortized to cost of software licenses totaled approximately $147,000 and $11,000 for the three months ended December 31, 2013 and 2012, respectively. Intangible asset amounts amortized to sales and marketing expense totaled approximately $162,000 and $42,000 for the three months ended December 31, 2013 and 2012, respectively. Intangible asset amounts amortized to general and administrative expense totaled approximately $12,000 for the three months ended December 31, 2013. There were no intangible assets amortized to general and administrative for the three months ended December 31, 2012. Intangible asset amounts amortized to interest expense totaled approximately $14,000 and $8,000 for the three months ended December 31, 2013 and 2012, respectively.

The estimated future amortization expense related to amortizing intangible assets was as follows (in thousands):

Fiscal Years Ending September 30,

Remaining 2014

1,007

2015

740

2016

635

2017

494

2018

494

Thereafter

4,810

Total estimated future amortization expense

8,180

Goodwill

The Company accounts for goodwill in accordance with the Financial the Accounting Standards Codification (“ASC”) 350

Intangibles – Goodwill and Other. This requires that goodwill be reviewed annually, or more frequently as a result of an event or change in circumstances, for possible impairment with impaired assets written down to fair value. The Company plans to complete its annual impairment test for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal 2014.

Fair Value Measurements

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and notes payable. The estimated fair values have been determined through information obtained from market sources and management estimates. The estimated fair value of certain financial instruments including cash equivalents, accounts receivable and account payable, approximate the carrying value due to their short-term maturity.

The fair value of the Company’s financial assets and liabilities are measured using inputs from the three levels of fair value hierarchy which are as follows:

⋅ Level 1 — Quoted prices in active markets for identical assets or liabilities;

⋅ Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

⋅ Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company classified its cash equivalents, which primarily include money market mutual funds, of $2,234,000 as of December, 31, 2013 and September 30, 2013, respectively, within Level 1 of the fair value hierarchy because they are valued using quoted market prices.

The following table presents the Company’s assets that are measured a December 31, 2013 and September 30, 2013 (in thousands):

31-Dec-13

30-Sep-13

Fair Value

Estimated

Fair Value

Estimated

Measurement

Fair

Measurement

Fair

Using Input Types

Value

Using Input Types

Value

Level

Total

Level

Total

Assets:

Money market funds

2,234

—

2,234

—

2,234

Total assets at fair value

2,234

—

2,234

—

2,234

Income Taxes

The provision for income taxes is based on the earnings or losses reported in the consolidated financial statements. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company provides a valuation allowance against deferred tax assets if it is more likely than not that some or all of the deferred tax assets will not be realized, with the exception of its subsidiary in Sweden. The Company has recorded a deferred tax liability relating to the intangible assets at its Swedish subsidiary.

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 Per Share

Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period.

The following table details the derivation of weighted average shares outstanding used in the calculation of basic and diluted net loss for each period (in thousands, except share data):

Three Months Ended

December 31,

2013

2012

Net loss available to common shareholders

-5,614

-222

Weighted-average number of common shares outstanding used in calculation of basic earnings per share

8,532,882

6,378,343

Incremental shares from the assumed exercise of dilutive stock options

—

Weighted-average number of common shares outstanding used in calculating diluted earnings per share

8,532,882

6,378,343

As the Company was in a net loss position for the three months ended December 31, 2013 and 2012, all common stock equivalents in the respective periods were anti-dilutive and excluded in the calculation above.

Foreign Currency Translations and Transactions

The Company’s foreign subsidiaries functional currency is their local currency. 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 are the foreign currency translation adjustments. Foreign currency translation gain arising during the three months ended December 31, 2013 was approximately $22,000. Foreign currency translation loss arising during the three months ended December 31, 2012 was approximately $11,000.

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 approximately $58,000 and $5,000 for the three months ended December 31, 2013 and 2012, respectively.

Share-Based Compensation

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.

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 December 31, 2013 or September 30, 2013.

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 December 31, 2013 or September 30, 2013.

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 December 31, 2013 or September 30, 2013.

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 December 31, 2013 or September 30, 2013.

Reclassifications

Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on the reported net loss.

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.

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	3 Months Ended
	Dec. 31, 2013
Business Combinations [Abstract]	'
Business Combination Disclosure [Text Block]	'
	NOTE 2. ACQUISITION

	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 ASC 805, Business Combinations. 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 stock purchase agreement. Also, the Company issued 86,231 restricted stock units to certain Panopticon employees. Total fair value of the consideration issued was valued at approximately $42,644,000 ($23.12 per share) at closing. Such shares 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 42% of such shares effective December 31, 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 intangible assets, excluding goodwill and assembled workforce, 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
	Total intangible assets	$	15,220

ACCRUED_EXPENSES

ACCRUED EXPENSES	3 Months Ended
ACCRUED EXPENSES	Dec. 31, 2013
Accrued Liabilities, Current [Abstract]	'
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	'
	NOTE 3. ACCRUED EXPENSES

	Accrued expenses consisted of the following at December 31, 2013 and September 30, 2013:

		December 31,		September 30,
		2013		2013
		(In thousands)

	Royalties and commissions	$	951	$	1,483
	Payroll and related expenses		688		944
	Other		691		637
	Professional fees and consulting		250		417
	Total	$	2,580	$	3,481

FINANCING_ARRANGEMENTS

FINANCING ARRANGEMENTS	3 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	NOTE 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 principal amount outstanding under the revolving line of credit at December 31, 2013 and September 30, 2013 was $900,000.

	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 earnings before interest, taxes, depreciation and amortization (“EBITDA”) balances. As of December 31, 2013 and September 30, 2013, approximately $1,778,000 and $1,945,000, respectively, remains outstanding. Accrued interest on the note as of December 31, 2013 and September 30, 2013 was approximately $9,000.

	The Company was not in compliance with the covenants under its Loan and Security Agreement at December 31, 2013 and it received a conditional waiver of non-compliance from SVB. 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 term note are as follows (in thousands):

	Fiscal Years Ended September 30,

	Remaining 2014	$	500
	2015		667
	2016		611
	Total future principal payments	$	1,778

	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 December 31, 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,

	Remaining 2014	$	467
	2015		800
	Thereafter		733
	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 an exercise 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 or price protection. The Company has reviewed the warrant terms and has concluded that pursuant to ASC 480, Distinguishing Liabilities From Equity, the warrant should be classified as equity.

	The Company accounted for the borrowing under the Note and Warrant Purchase Agreement in accordance with the guidance prescribed in ASC 470-20, “Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants”. In accordance with ASC 470-20, the relative fair 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 relative fair value of the warrants on March 30, 2012, as determined under the ASC 820, “Fair Value Measurements and Disclosures”, was approximately $1,096,000 which is included in additional paid-in capital in the Company's accompanying condensed consolidated balance sheets at December 31, 2013 and September 30, 2013, respectively. 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 December 31, 2013 and September 30, 2013 was approximately $821,000 and $860,000, respectively, which will be amortized to interest expense over the life of the subordinated note which is seven years. Interest expense related to the warrants was approximately $39,000, during the three months ended December 31, 2013 and 2012, respectively.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies Disclosure [Text Block]	'
	NOTE 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 at various dates 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 $235,000 and $143,000 for the three months ended December 31, 2013 and 2012, respectively. Certain of the Company's facility leases include options to renew.

	As of December 31, 2013, future minimum rental commitments under non-cancelable operating leases are as follows (in thousands):

	Years Ending September 30,

	Remaining in 2014	$	443
	2015		263
	2016		207
	Total future minimum lease payments	$	913

	Royalties

	Prior to the acquisition of intellectual property underlying its Datawatch Modeler and Datawatch Automator products as disclosed in Note 1 to the accompanying condensed 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 $78,000 and $35,000 for the three months ended December 31, 2013 and 2012, respectively. Minimum royalty obligations were insignificant for three months ended December 31, 2013 and 2012.

	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.

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	NOTE 6. INCOME TAXES

	During the three months ended December 31, 2013, the Company did not record a tax provision or benefit. During the three months ended December 31, 2013, the Company did not record a tax expense related to uncertain tax positions. During the three months ended December 31, 2012, the Company recorded $5,000, ($2,000), and $6,000, respectively, related to estimated federal alternative minimum taxes, credit related to state income tax adjustments, and uncertain tax positions relative to foreign taxes.

	Deferred Taxes

	The Company’s deferred tax assets include net operating loss carry forwards and tax credits that expire at different times through and until 2032. Significant judgment is required in determining the Company’s provision for income taxes, the carrying value of deferred tax assets and liabilities and the valuation allowance recorded against net deferred tax assets. Factors such as future reversals of deferred tax assets and liabilities, projected future taxable income, changes in enacted tax rates and the period over which the Company’s deferred tax assets will be recoverable are considered in making these determinations. With the exception of Sweden, management does not believe the deferred tax assets are more likely than not to be realized and a full valuation allowance has been provided against the deferred tax assets in the U.S, U.K., Australia, Germany, and Singapore at December 31, 2013 and September 30, 2013. The Company has recorded a deferred tax liability of $1,483,000 relating to the intangible assets at its Swedish subsidiary.

	Provision for Uncertain Tax Positions

	At September 30, 2013, the Company had a cumulative tax liability of $353,000 related to Federal, state, and foreign tax exposure that could result in cash payments, of which approximately $4,000, was recorded during the three months ended December 31, 2012. The Company did not adjust the tax liability during the three months ended December 31, 2013. 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 consolidated statements of operations. To date, the Company has accrued approximately $14,000 for interest and penalties associated with this liability.

	The Company’s unrecognized tax benefits (before consideration of any valuation allowance) 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 during the three months ended December 31, 2013 was as follows (in thousands):

	Balance at September 30, 2013	$	998
	Additions for prior year tax positions		—
	Balance at December 31, 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 United Kingdom, Germany, Singapore, Australia and the United States, 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.

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
SHARE-BASED COMPENSATION	Dec. 31, 2013
Equity [Abstract]	'
Stockholders Equity Note Disclosure [Text Block]	'
	NOTE 7. SHARE-BASED COMPENSATION

	The Company provides its employees, officers, consultants and directors with stock options, restricted stock units and other stock rights for common stock of the Company on a discretionary basis. All option and restricted stock unit 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 and other stock rights are granted at exercise prices not less than the fair market value at the date of grant. Share-based compensation expense for all share-based payment awards is measured based on the grant-date fair value of the award.

	The following table presents share-based employee compensation expenses included in our unaudited condensed consolidated statements of operations (in thousands):

			Three Months Ended
			December 31,
			2013			2012

	Sales and marketing		$	1,267		$	459
	Engineering and product development			876			22
	Professional Services			39			—
	General and administrative			537			96
	Total		$	2,719		$	577

	Stock Option Plans

	The Company estimates the fair value of each share-based award (except restricted stock units, which are discussed below) using the Black-Scholes option valuation model. The Black-Scholes option valuation model incorporates assumptions as to stock price volatility, the expected life of options, a risk-free interest rate and dividend yield. The Company recognizes share-based compensation expense related to stock options on a straight-line basis over the requisite service period of the award. All of the Company’s stock compensation awards are accounted for as equity instruments and there have been no liability awards granted. No options were granted under the stock option plans for the three month periods ended December 31, 2013 and 2012. The total intrinsic value of options exercised during the three months ended December 31, 2013 and 2012 was approximately $388,000 and $450,000, respectively. Total cash received from option exercises during the three months ended December 31, 2013 and 2012 was approximately $41,000 and $119,000, respectively. There was no tax benefit realized from stock options exercised during the three months ended December 31, 2013 and 2012. As of December 31, 2013, there was approximately $471,000 of total unrecognized compensation cost related to non-vested stock option arrangements, which is expected to be recognized over a weighted-average period of 0.60 years. Many of the assumptions used in the determination of share-based compensation expense are judgmental and highly volatile.

	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 determined the volatility for options granted using the historical volatility of the Company’s common stock. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the stock options. 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 December 31, 2013, 1,575,686 shares were authorized and 66,889 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-	Aggregate
					Weighted-			Average	Aggregate
			Number of		Average			Remaining	Intrinsic
			Options		Exercise			Contractual	Value $
			Outstanding		Price			Term (years)	(thousands)

	Outstanding, September 30, 2013		363,209			5.76
	Granted		—			—
	Canceled		—			—
	Exercised		12,375			3.32
	Outstanding, December 31, 2013		350,834		$	5.84		4.18	$	9,882

	Vested or expected to vest, December 31, 2013		342,289		$	5.73		4.14	$	9,681
	Exercisable, December 31, 2013		265,384		$	4.32		3.67	$	7,879

	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 December 31, 2013 was 1,073,947. 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 December 31, 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		*	75,681
	$10.00 per share prior to four years of the grant date		*	154,606
	$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		*	5,668
	$22.50 per share prior to four years of the grant date		*	12,667
	$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 further trading vesting condition			225,486
	Unvested RSUs, December 31, 2013			1,073,947

	The Company’s common stock has satisfied the per share market price vesting conditions for the grants denoted with an asterisk above totaling 848,461 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, professional services and general and administrative expense. The fair values of the RSUs granted in the three months ended December 31, 2013 and 2012 were approximately $2,356,000 (or $29.82 weighted average fair value per share) and approximately $2,347,000 (or $18.41 weighted average fair value per share). The Company recorded compensation expense related to RSUs of approximately $2,631,000 and $536,000 for the three months ended December 31, 2013 and 2012, respectively. These amounts are included in the total share-based compensation expense disclosed above. As of December 31, 2013, there was approximately $14,465,000 of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted average period of 2.13 years.

	The following table presents RSU information for the three months ended December 31, 2013:
			Number of
		RSUs
		Outstanding

Outstanding, September 30, 2013		1,056,696
Granted		79,000
Canceled		—
Vested		-61,749
Outstanding, December 31, 2013		1,073,947

SEGMENT_INFORMATION

SEGMENT INFORMATION	3 Months Ended
SEGMENT INFORMATION	Dec. 31, 2013
Segment Reporting [Abstract]	'
Segment Reporting Disclosure [Text Block]	'
	Note 8. 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.

	The Company conducts operations in the U.S. and internationally. The following table presents information about the Company’s geographic operations (in thousands):

		Domestic		International		Intercompany		Total
		Domestic		International		Eliminations		Total
	Total Revenue
	Three months ended December 31, 2013	$	7,707	$	1,384	$	-282	$	8,809
	Three months ended December 31, 2012		5,930		1,125		-234		6,821

	Total Operating (Loss) Income
	Three months ended December 31, 2013	$	-3,654	$	-1,803	$	—	$	-5,457
	Three months ended December 31, 2012		338		-388		—		-50

	Total Long-Lived Assets
	At December 31, 2013	$	50,387	$	111	$	—	$	50,498
	At September 30, 2013		51,301		102		—		51,403

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2013
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	Note 9. SUBSEQUENT EVENTS

	On January 13, 2014, the Company amended its agreement with MCRC as a result of not being in compliance with a covenant in its Note and Warrant Purchase Agreement with MCRC dated March 30, 2012, as amended, as of August 15, 2013. Under the amendment, the Company received a waiver of non-compliance through September 30, 2014. In addition, certain provisions of the Note and Warrant Purchase Agreement with MCRC were amended including that the Company maintain certain interest coverage ratios. Under the terms of the amendment, the Company expects to be compliant with its covenants through September 30, 2014.

	On January 23, 2014, the Company entered into a conditional waiver agreement with SVB 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 conditional waiver agreement, the Company received a conditional waiver of non-compliance through March 15, 2014. Under the terms of the agreement, the Company expects to be compliant with its covenants through March 15, 2014.

	Subsequent events have been evaluated through the date the accompanying condensed consolidated financial statements were issued.

NATURE_OF_BUSINESS_AND_SUMMARY1

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Accounting Estimates

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance for Doubtful Accounts

Sales Returns Reserve [Policy Text Block]

Sales Returns Reserve

Research, Development, and Computer Software, Policy [Policy Text Block]

Capitalized Software Development Costs

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.

Revenue Recognition, Deferred Revenue [Policy Text Block]

Deferred Revenue

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Acquired Intellectual Property, Policy [Policy Text Block]

Acquired Intellectual Property

The estimated future amortization expense related to the acquired intellectual property is as follows (in thousands):

Fiscal Years Ending September 30,

Remainder of 2014

2,082

2015

2,777

2016

2,777

2017

1,905

2018

1,053

Thereafter

2,546

Total estimated future amortization expense

13,140

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Other Intangible Assets

The estimated future amortization expense related to amortizing intangible assets was as follows (in thousands):

Fiscal Years Ending September 30,

Remaining 2014

1,007

2015

740

2016

635

2017

494

2018

494

Thereafter

4,810

Total estimated future amortization expense

8,180

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

The Company accounts for goodwill in accordance with the Financial the Accounting Standards Codification (“ASC”) 350

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The fair value of the Company’s financial assets and liabilities are measured using inputs from the three levels of fair value hierarchy which are as follows:

⋅ Level 1 — Quoted prices in active markets for identical assets or liabilities;

⋅ Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table presents the Company’s assets that are measured a December 31, 2013 and September 30, 2013 (in thousands):

31-Dec-13

30-Sep-13

Fair Value

Estimated

Fair Value

Estimated

Measurement

Fair

Measurement

Fair

Using Input Types

Value

Using Input Types

Value

Level

Total

Level

Total

Assets:

Money market funds

2,234

—

2,234

—

2,234

Total assets at fair value

2,234

—

2,234

—

2,234

Income Tax, Policy [Policy Text Block]

Income Taxes

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Share

Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period.

The following table details the derivation of weighted average shares outstanding used in the calculation of basic and diluted net loss for each period (in thousands, except share data):

Three Months Ended

December 31,

2013

2012

Net loss available to common shareholders

-5,614

-222

Weighted-average number of common shares outstanding used in calculation of basic earnings per share

8,532,882

6,378,343

Incremental shares from the assumed exercise of dilutive stock options

—

Weighted-average number of common shares outstanding used in calculating diluted earnings per share

8,532,882

6,378,343

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translations and Transactions

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Share-Based Compensation

Guarantees, Indemnifications and Warranties Policies [Policy Text Block]

Guarantees and Indemnifications

Reclassification, Policy [Policy Text Block]

Reclassifications

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

NATURE_OF_BUSINESS_AND_SUMMARY2

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Dec. 31, 2013
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,

	Remaining 2014	$	1,007
	2015		740
	2016		635
	2017		494
	2018		494
	Thereafter		4,810
	Total estimated future amortization expense	$	8,180

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	'
	The following table presents the Company’s assets that are measured a December 31, 2013 and September 30, 2013 (in thousands):

		31-Dec-13								30-Sep-13
		Fair Value						Estimated		Fair Value						Estimated
		Measurement						Fair		Measurement						Fair
		Using Input Types						Value		Using Input Types						Value
		Level		Level		Level		Total		Level		Level		Level		Total
		1		2		3		Total		1		2		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

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	'
	The following table details the derivation of weighted average shares outstanding used in the calculation of basic and diluted net loss for each period (in thousands, except share data):

		Three Months Ended
		December 31,
		2013		2012

	Net loss available to common shareholders	$	-5,614	$	-222

	Weighted-average number of common shares outstanding used in calculation of basic earnings per share		8,532,882		6,378,343
	Incremental shares from the assumed exercise of dilutive stock options		—		—
	Weighted-average number of common shares outstanding used in calculating diluted earnings per share		8,532,882		6,378,343

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,

	Remainder of 2014	$	2,082
	2015		2,777
	2016		2,777
	2017		1,905
	2018		1,053
	Thereafter		2,546
	Total estimated future amortization expense	$	13,140

ACQUISITIONS_Tables

ACQUISITIONS (Tables)	3 Months Ended
ACQUISITIONS (Tables)	Dec. 31, 2013
Business Combinations [Abstract]	'
Schedule of Finite-Lived Intangible Assets [Table Text Block]	'
	The intangible assets, excluding goodwill and assembled workforce, 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
	Total intangible assets	$	15,220

ACCRUED_EXPENSES_Tables

ACCRUED EXPENSES (Tables)	3 Months Ended
ACCRUED EXPENSES (Tables)	Dec. 31, 2013
Accounts Payable and Accrued Liabilities, Current [Abstract]	'
Schedule of Accrued Liabilities [Table Text Block]	'
	Accrued expenses consisted of the following at December 31, 2013 and September 30, 2013:

		December 31,		September 30,
		2013		2013
		(In thousands)

	Royalties and commissions	$	951	$	1,483
	Payroll and related expenses		688		944
	Other		691		637
	Professional fees and consulting		250		417
	Total	$	2,580	$	3,481

FINANCING_ARRANGEMENTS_Tables

FINANCING ARRANGEMENTS (Tables)	3 Months Ended
FINANCING ARRANGEMENTS (Tables)	Dec. 31, 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,

	Remaining 2014	$	467
	2015		800
	Thereafter		733
	Total future principal payments	$	2,000

Revolving Line Of Credit [Member]	'
Schedule of Maturities of Long-term Debt [Table Text Block]	'
	Future principal payments related to the term note are as follows (in thousands):

	Fiscal Years Ended September 30,

	Remaining 2014	$	500
	2015		667
	2016		611
	Total future principal payments	$	1,778

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	'
	As of December 31, 2013, future minimum rental commitments under non-cancelable operating leases are as follows (in thousands):

	Years Ending September 30,

	Remaining in 2014	$	443
	2015		263
	2016		207
	Total future minimum lease payments	$	913

INCOME_TAXES_Tables

INCOME TAXES (Tables)	3 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	'
	The change in the unrecognized tax benefits during the three months ended December 31, 2013 was as follows (in thousands):

	Balance at September 30, 2013	$	998
	Additions for prior year tax positions		—
	Balance at December 31, 2013	$	998

SHAREBASED_COMPENSATION_Tables

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
SHARE-BASED COMPENSATION (Tables)	Dec. 31, 2013
Equity [Abstract]	'
Schedule Of Share Based Expense Categories [Table Text Block]	'
	The following table presents share-based employee compensation expenses included in our unaudited condensed consolidated statements of operations (in thousands):

		Three Months Ended
		December 31,
		2013			2012

	Sales and marketing	$	1,267		$	459
	Engineering and product development		876			22
	Professional Services		39			—
	General and administrative		537			96
	Total	$	2,719		$	577

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-	Aggregate
				Weighted-			Average	Aggregate
		Number of		Average			Remaining	Intrinsic
		Options		Exercise			Contractual	Value $
		Outstanding		Price			Term (years)	(thousands)

	Outstanding, September 30, 2013	363,209			5.76
	Granted	—			—
	Canceled	—			—
	Exercised	12,375			3.32
	Outstanding, December 31, 2013	350,834		$	5.84		4.18	$	9,882

	Vested or expected to vest, December 31, 2013	342,289		$	5.73		4.14	$	9,681
	Exercisable, December 31, 2013	265,384		$	4.32		3.67	$	7,879

Schedule Of Nonvested Restricted Stock Units With Further Vesting Restrictions [Table Text Block]	'
	Included in the total number of RSUs unvested at December 31, 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	*	75,681
	$10.00 per share prior to four years of the grant date	*	154,606
	$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	*	5,668
	$22.50 per share prior to four years of the grant date	*	12,667
	$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 further trading vesting condition		225,486
	Unvested RSUs, December 31, 2013		1,073,947

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	'
	The following table presents RSU information for the three months ended December 31, 2013:
		Number of
		RSUs
		Outstanding

	Outstanding, September 30, 2013	1,056,696
	Granted	79,000
	Canceled	—
	Vested	-61,749
	Outstanding, December 31, 2013	1,073,947

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	3 Months Ended
SEGMENT INFORMATION (Tables)	Dec. 31, 2013
Segment Reporting [Abstract]	'
Schedule of Segment Reporting Information, by Segment [Table Text Block]	'
	The following table presents information about the Company’s geographic operations (in thousands):

		Domestic		International		Intercompany		Total
		Domestic		International		Eliminations		Total
	Total Revenue
	Three months ended December 31, 2013	$	7,707	$	1,384	$	-282	$	8,809
	Three months ended December 31, 2012		5,930		1,125		-234		6,821

	Total Operating (Loss) Income
	Three months ended December 31, 2013	$	-3,654	$	-1,803	$	—	$	-5,457
	Three months ended December 31, 2012		338		-388		—		-50

	Total Long-Lived Assets
	At December 31, 2013	$	50,387	$	111	$	—	$	50,498
	At September 30, 2013		51,301		102		—		51,403

NATURE_OF_BUSINESS_AND_SUMMARY3

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013
Remainder of 2014	$1,007
2015	740
2016	635
2017	494
2018	494
Thereafter	4,810
Total estimated future amortization expense	8,180
Intellectual Property [Member]	'
Remainder of 2014	2,082
2015	2,777
2016	2,777
2017	1,905
2018	1,053
Thereafter	2,546
Total estimated future amortization expense	$13,140

NATURE_OF_BUSINESS_AND_SUMMARY4

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013
Remaining 2014	$1,007
2015	740
2016	635
2017	494
2018	494
Thereafter	4,810
Total estimated future amortization expense	$8,180

NATURE_OF_BUSINESS_AND_SUMMARY5

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013
Total assets at fair value	$2,234	$2,234
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
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
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
Fair Value, Inputs, Level 3 [Member] \| Money Market Funds [Member]	'	'
Total assets at fair value	$0	$0

NATURE_OF_BUSINESS_AND_SUMMARY6

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Net income (loss)	($5,614)	($222)
Weighted-average number of common shares outstanding used in calculation of basic earnings per share	8,532,882	6,378,343
Incremental shares from the assumed exercise of dilutive stock options	0	0
Weighted-average number of common shares outstanding used in calculating diluted earnings per share	8,532,882	6,378,343

NATURE_OF_BUSINESS_AND_SUMMARY7

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)	1 Months Ended	3 Months Ended
	Mar. 30, 2012	Dec. 31, 2013	Aug. 28, 2013	Dec. 31, 2012	Sep. 30, 2013
License Sales To Distributors And Resellers As Percentage Of Total Revenue	'	44.00%	'	32.00%	'
Product Warranty Period	'	'30 days	'	'	'
Maintenance Period	'	'12 months	'	'	'
Depreciation, Depletion and Amortization, Nonproduction, Total	'	$34,000	'	$33,000	'
Foreign Currency Transaction Gain (Loss), Realized	'	58,000	'	5,000	'
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent, Total	'	22,000	'	-11,000	'
Amortization of Intangible Assets	'	694,000	'	431,000	'
Capitalized Closing Costs And Adjustments	75,000	'	'	'	'
Finite-lived Intangible Assets Acquired	8,541,000	'	15,220,000	'	'
Capitalized Computer Software, Net	'	455,000	'	'	350,000
Capitalized Computer Software, Additions	'	250,000	'	0	'
Intellectual Property [Member]	'	'	'	'	'
Finite-lived Intangible Assets Acquired	'	'	7,900,000	'	'
Patents [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'20 years	'	'	'
Selling and Marketing Expense [Member]	'	'	'	'	'
Amortization of Intangible Assets	'	162,000	'	42,000	'
General and Administrative Expense [Member]	'	'	'	'	'
Amortization of Intangible Assets	'	12,000	'	'	'
Interest Expense [Member]	'	'	'	'	'
Amortization of Intangible Assets	'	14,000	'	8,000	'
Cost Of Software Licenses [Member]	'	'	'	'	'
Amortization of Intangible Assets	'	$147,000	'	$11,000	'
Trademarks [Member] \| Patents [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'2 years 6 months	'	'	'
Minimum [Member]	'	'	'	'	'
Capitalized Computer Software Amortization Period	'	'9 months	'	'	'
Minimum [Member] \| Capitalized Software [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'9 months	'	'	'
Minimum [Member] \| Customer Lists [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'10 years	'	'	'
Minimum [Member] \| Loan Acquisition Costs [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'2 years	'	'	'
Minimum [Member] \| Other Intangible Assets [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'9 months	'	'	'
Maximum [Member]	'	'	'	'	'
Capitalized Computer Software Amortization Period	'	'18 months	'	'	'
Maximum [Member] \| Capitalized Software [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'18 months	'	'	'
Maximum [Member] \| Customer Lists [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'15 years	'	'	'
Maximum [Member] \| Loan Acquisition Costs [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'7 years	'	'	'
Maximum [Member] \| Other Intangible Assets [Member]	'	'	'	'	'
Finite-Lived Intangible Asset, Useful Life	'	'20 years	'	'	'

ACQUISITIONS_Details_1

ACQUISITIONS (Details 1) (USD $)	1 Months Ended	3 Months Ended
ACQUISITIONS (Details 1) (USD $)	Mar. 30, 2012	Aug. 28, 2013
Total intangible assets, Fair Value	$8,541,000	$15,220,000
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

ACQUISITIONS_Details_Textual

ACQUISITIONS (Details Textual) (USD $)	1 Months Ended
ACQUISITIONS (Details Textual) (USD $)	Aug. 28, 2013
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	$42,644,000
Business Acquisition, Share Price	$23.12
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 Restricted Stock Issued	86,231
Business Acquisition Equity Interests Issued Or Issuable Number Of Shares Issued To Be Lock Up For A Period	'six months

ACCRUED_EXPENSES_Details

ACCRUED EXPENSES (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013
Royalties and commissions	$951	$1,483
Payroll and related expenses	688	944
Other	691	637
Professional fees and consulting	250	417
Total	$2,580	$3,481

FINANCING_ARRANGEMENTS_Details

FINANCING ARRANGEMENTS (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013
Remaining 2014	$500
2015	667
2016	611
Total future principal payments	$1,778

FINANCING_ARRANGEMENTS_Details1

FINANCING ARRANGEMENTS (Details 1) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013
Remaining 2014	$467
2015	800
Thereafter	733
Total future principal payments	$2,000

FINANCING_ARRANGEMENTS_Details2

FINANCING ARRANGEMENTS (Details Textual) (USD $)	1 Months Ended	3 Months Ended		0 Months Ended		3 Months Ended		1 Months Ended	3 Months Ended
	Mar. 30, 2012	Dec. 31, 2013	Sep. 30, 2013	Aug. 15, 2013	Aug. 15, 2013	Dec. 31, 2013	Sep. 30, 2013	Mar. 30, 2012	Dec. 31, 2013	Dec. 31, 2012
	Mar. 30, 2012	Dec. 31, 2013	Sep. 30, 2013	Amendment To MCRC Agreement [Member]	SVB Agreement [Member]	SVB Agreement [Member]	SVB Agreement [Member]	Note Warrant [Member]	Note Warrant [Member]	Note Warrant [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$2,000,000	'	'	'	'	'	'	'	'	'
Line of Credit Facility, Amount Outstanding	1,500,000	900,000	900,000	'	'	1,778,000	1,945,000	'	'	'
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%	'	'	'	'	'
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%	8.00%	8.00%	10.00%	'	'	'	'	'	'
Debt Instrument, Maturity Date	'	28-Feb-19	'	'	'	'	'	'	'	'
Share Price	'	$11.54	'	'	'	'	'	'	'	'
Fair value of warrants	1,096,000	'	'	'	'	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	'	'	'	'	'	'	'	'7 years	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	'	'	'	'	'	'	'	68.18%	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	'	'	'	'	'	'	'	1.61%	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	'	'	'	'	'	'	'	0.00%	'	'
Debt Instrument, Unamortized Discount	'	821,000	860,000	'	'	'	'	'	'	'
Interest Expense, Total	'	'	'	'	'	'	'	'	39,000	39,000
Interest Rate Decrease	'	'	'	8.00%	'	'	'	'	'	'
Interest Rate Premium On Principal Payments	'	'	'	3.00%	'	'	'	'	'	'
Debt Instrument, Periodic Payment, Principal	'	66,667	'	2,000,000	'	'	'	'	'	'
Debt Instrument, Accrued Interest	'	'	'	'	'	9,000	9,000	'	'	'
Debt Instrument, Periodic Payment, Interest	'	'	'	23,000	'	'	'	'	'	'
Debt Instrument, Unamortized Premium	'	'	'	$60,000	'	'	'	'	'	'

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2013
Remaining in 2014	$443
2015	263
2016	207
Total future minimum lease payments	$913

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Operating Leases, Rent Expense	$235,000	$143,000
Royalty Expense	$78,000	$35,000
Royalties As Percent Of Revenues	50.00%	'

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013
Beginning Balance	$998
Additions for prior year tax positions	0
Ending Balance	$998

INCOME_TAXES_Details_Textual

INCOME TAXES (Details Textual) (USD $)	3 Months Ended
INCOME TAXES (Details Textual) (USD $)	Dec. 31, 2012	Dec. 31, 2013	Sep. 30, 2013
Income Tax Examination, Penalties and Interest Accrued, Total	'	$14,000	'
Deferred Tax Liabilities, Net	'	1,483,000	'
Potential Cash Payment For Tax Liability	'	'	353,000
Tax Liability Increase Decrease For Uncertain Tax Positions	4,000	'	'
Current Federal Tax Expense (Benefit)	5,000	'	'
Current State and Local Tax Expense (Benefit)	-2,000	'	'
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation	$6,000	'	'

SHAREBASED_COMPENSATION_Detail

SHARE-BASED COMPENSATION (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation, Total	$2,719	$577
Sales and marketing [Member]	'	'
Share-based Compensation, Total	1,267	459
Engineering and product development [Member]	'	'
Share-based Compensation, Total	876	22
Professional Services [Member]	'	'
Share-based Compensation, Total	39	0
General and administrative [Member]	'	'
Share-based Compensation, Total	$537	$96

SHAREBASED_COMPENSATION_Detail1

SHARE-BASED COMPENSATION (Details 1) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013
Number of Options Outstanding, beginning balance	363,209
Number of Options Outstanding, Granted	0
Number of Options Outstanting, Canceled	0
Number of Options Outstanding, Exercised	12,375
Number of Options Outstanding, ending balance	350,834
Number of Options Outstanding, Vested or expected to vest	342,289
Number of Options Outstanding, Exercisable	265,384
Weighted - Average Exercise Price, beginning balance	$5.76
Weighted-Average Exercise Price, Granted	$0
Weighted-Average Exercise Price, Canceled	$0
Weighted -Average Exercise Price, Exercised	$3.32
Weighted - Average Exercise Price, ending balance	$5.84
Weighted-Average Exercise Price, Vested or expected to vest	$5.73
Weighted-Average Exercise Price, Exercisable	$4.32
Outstanding, Weighted-Average Remaining Contractual Life (Years)	'4 years 2 months 5 days
Weighted-Average Remaining Contractual Term, Vested or expected to vest	'4 years 1 month 20 days
Weighted-Average Remaining Contractual Term, Exercisable	'3 years 8 months 1 day
Aggregate Intrinsic Value, ending balance	$9,882
Aggregate Intrinsic Value, Vested or expected to vest	9,681
Aggregate Intrinsic Value, Exercisable	$7,879

SHAREBASED_COMPENSATION_Detail2

SHARE-BASED COMPENSATION (Details 2) (USD $)	3 Months Ended
SHARE-BASED COMPENSATION (Details 2) (USD $)	Dec. 31, 2013
Five Years [Member] \| Ten Dollar Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	75,681
Trading Vesting Conditions Restricted Stock Unit	$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
Trading Vesting Conditions Restricted Stock Unit	$17.50
Five Years [Member] \| Twenty Two Dollars And Fifty Cents Per Share Market Price [Member]	'
Trading Vesting Conditions Restricted Stock Unit	$22.50
Four Years [Member] \| Ten Dollar Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	154,606
Trading Vesting Conditions Restricted Stock Unit	$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
Trading Vesting Conditions Restricted Stock Unit	$17.50
Four Years [Member] \| Twenty Dollar Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	5,668
Trading Vesting Conditions Restricted Stock Unit	$20
Four Years [Member] \| Twenty Two Dollars And Fifty Cents Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	12,667
Three Years [Member] \| Seventeen Dollars And Fifty Cents Per Share Market Price [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	159,000
Trading Vesting Conditions Restricted Stock Unit	$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
Trading Vesting Conditions Restricted Stock Unit	$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
Trading Vesting Conditions Restricted Stock Unit	$22.50
No vesting [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	225,486
Restricted Stock Units (RSUs) [Member]	'
Number Of Restricted Stock Units Subject To Vesting Conditions	1,073,947

SHAREBASED_COMPENSATION_Detail3

SHARE-BASED COMPENSATION (Details 3)	3 Months Ended
SHARE-BASED COMPENSATION (Details 3)	Dec. 31, 2013
Number of Options Outstanding, beginning balance	363,209
Number of Options Outstanding, Granted	0
Number of Options Outstanting, Canceled	0
Number of Options Outstanding, ending balance	350,834
Restricted Stock Units (RSUs) [Member]	'
Number of Options Outstanding, beginning balance	1,056,696
Number of Options Outstanding, Granted	79,000
Number of Options Outstanting, Canceled	0
Number of Options Outstanding, Vested	-61,749
Number of Options Outstanding, ending balance	1,073,947

SHAREBASED_COMPENSATION_Detail4

SHARE-BASED COMPENSATION (Details Textual) (USD $)	3 Months Ended
SHARE-BASED COMPENSATION (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$388,000	$450,000
Proceeds from Stock Options Exercised	41,000	119,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total	471,000	'
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	'7 months 6 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	66,889	'
Stock Issued During Period Shares Restricted Stock Award Unvested	1,073,947	'
Restricted Stock Unit Vesting Rate	33.33%	'
Stock Issued During Period Value Restricted Stock Award Price Per Share	$29.82	$18.41
Stock Issued During Period, Value, Restricted Stock Award, Gross	2,356,000	2,347,000
Number Of Restricted Stock Units Fulfill The Condition	848,461	'
Restricted Stock Units (RSUs) [Member]	'	'
Recognition Period For Restricted Stock Expense	'2 years 1 month 17 days	'
Restricted Stock or Unit Expense	2,631,000	536,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$14,465,000	'

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Total Revenue	$8,809	$6,821	'
Total Operating (Loss) Income	-5,457	-50	'
Total Long-Lived Assets	50,498	'	51,403
Domestic [Member]	'	'	'
Total Revenue	7,707	5,930	'
Total Operating (Loss) Income	-3,654	338	'
Total Long-Lived Assets	50,387	'	51,301
International [Member]	'	'	'
Total Revenue	1,384	1,125	'
Total Operating (Loss) Income	-1,803	-388	'
Total Long-Lived Assets	111	'	102
Intercompany Eliminations [Member]	'	'	'
Total Revenue	-282	-234	'
Total Operating (Loss) Income	0	0	'
Total Long-Lived Assets	$0	'	$0