Datawatch (DWCH) Inactive 10-K5 Dec 142014 FY Annual reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information (USD $)	12 Months Ended
Document And Entity Information (USD $)	Sep. 30, 2014	Nov. 24, 2014	Mar. 31, 2014
Document And Entity Information [Abstract]	'	'	'
Entity Registrant Name	'DATAWATCH CORP	'	'
Entity Central Index Key	'0000792130	'	'
Current Fiscal Year End Date	'--09-30	'	'
Entity Filer Category	'Accelerated Filer	'	'
Entity Common Stock, Shares Outstanding	'	11,060,525	'
Entity Public Float	'	'	$227,206,750
Entity Current Reporting Status	'Yes	'	'
Entity Voluntary Filers	'No	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Document Type	'10-K	'	'
Amendment Flag	'false	'	'
Document Period End Date	30-Sep-14	'	'
Document Fiscal Period Focus	'FY	'	'
Document Fiscal Year Focus	'2014	'	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
CURRENT ASSETS:	'	'
Cash and cash equivalents	$47,668	$10,312
Accounts receivable, net of allowance for doubtful accounts and sales returns of $63 as of September 30, 2014 and 2013	7,024	6,622
Inventories	148	45
Prepaid expenses and other current assets	1,485	921
Total current assets	56,325	17,900
Property and equipment:	'	'
Office furniture and equipment	1,473	1,382
Software	492	492
Leasehold improvements	594	551
Property, plant and equipment, gross	2,559	2,425
Less accumulated depreciation	-2,159	-2,136
Property and equipment, net	400	289
Acquired intellectual property, net	11,057	13,834
Other intangible assets, net	7,090	8,260
Goodwill and indefinite lived assets	28,383	28,383
Deferred tax asset, net	239	'
Other long-term assets	103	248
Total assets	103,597	68,914
CURRENT LIABILITIES:	'	'
Line of credit	'	900
Current portion of debt, net of unamortized debt discount of $157 as of September 30, 2013	'	977
Accounts payable	925	1,433
Accrued expenses	2,884	3,481
Deferred revenue	7,401	6,997
Current deferred tax liability	239	'
Total current liabilities	11,449	13,788
LONG-TERM LIABILITIES:	'	'
Long-term debt, net of unamortized debt discount of $703 as of September 30, 2013	'	2,108
Deferred revenue, long-term	105	214
Noncurrent deferred tax liability, net	798	1,076
Other long-term liabilities	335	353
Total long-term liabilities	1,238	3,751
Total liabilities	12,687	17,539
COMMITMENTS AND CONTINGENCIES (Note 5)	'	'
SHAREHOLDERS' EQUITY:	'	'
Common stock, par value $0.01; authorized: 20,000,000 shares; issued and outstanding: 11,289,098 shares and 11,057,858 shares, respectively, as of September 30, 2014 and 8,795,023 shares and 8,477,552 shares, respectively, as of September 30, 2013	114	88
Additional paid-in capital	134,960	72,726
Accumulated deficit	-42,404	-20,021
Accumulated other comprehensive loss	-1,620	-1,278
Shareholders' equity before treasury stock	91,050	51,515
Less treasury stock, at cost, 14,246 shares	-140	-140
Total shareholders' equity	90,910	51,375
Total liabilities and shareholders' equity	$103,597	$68,914

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Allowance for doubtful accounts and sales returns	$63	$63
Commom stock, par value	$0.01	$0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	11,289,098	8,795,023
Common stock, shares outstanding	11,057,858	8,477,552
Treasury shares	14,246	14,246
Short-term Debt [Member]	'	'
Debt unamortized discount	0	157
Long-term Debt [Member]	'	'
Debt unamortized discount	$0	$703

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
REVENUE:	'	'	'
Software licenses	$20,627	$19,430	$16,800
Maintenance	12,845	9,700	7,902
Professional services	1,615	1,166	1,304
Total revenues	35,087	30,296	26,006
COSTS AND EXPENSES:	'	'	'
Cost of software licenses	4,013	2,505	2,270
Cost of maintenance and services	3,351	2,440	2,530
Sales and marketing	31,133	18,482	12,263
Engineering and product development	9,074	3,893	2,790
General and administrative	9,181	6,793	4,610
Total costs and expenses	56,752	34,113	24,463
(LOSS) INCOME FROM OPERATIONS	-21,665	-3,817	1,543
Interest expense	-406	-682	-339
Other (expense) income	-755	255	6
Foreign currency transaction (loss) gain	-76	-41	-126
(LOSS) INCOME FROM OPERATIONS BEFORE INCOME TAXES	-22,902	-4,285	1,084
Benefit (provision) for income taxes	519	88	-50
NET (LOSS) INCOME	($22,383)	($4,197)	$1,034
Net (loss) income per share - basic:	($2.24)	($0.63)	$0.17
Net (loss) income per share - diluted:	($2.24)	($0.63)	$0.15
Weighted-average shares outstanding - basic	9,998,288	6,634,011	6,251,765
Weighted-average shares outstanding - diluted	9,998,288	6,634,011	6,729,672

CONSOLIDATED_STATEMENTS_OF_SHA

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Total
In Thousands, except Share data	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Total
BALANCE at Sep. 30, 2011	$62	$24,476	($16,858)	($1,198)	($140)	$6,342
BALANCE (in Shares) at Sep. 30, 2011	6,175,978	'	'	'	-14,246	'
Exercise of stock options	2	259	'	'	'	261
Exercise of stock options (in Shares)	100,328	'	'	'	'	100,328
Vesting of restricted stock (in Shares)	96,159	'	'	'	'	'
Share-based compensation expense	'	879	'	'	'	879
Fair value of warrants	'	1,096	'	'	'	1,096
Translation adjustments	'	'	'	82	'	82
Net income (loss)	'	'	1,034	'	'	1,034
BALANCE at Sep. 30, 2012	64	26,710	-15,824	-1,116	-140	9,694
BALANCE (in Shares) at Sep. 30, 2012	6,372,465	'	'	'	-14,246	'
Issuance of common stock and equivalents in connection with the acquisition of Panopticon AB	22	42,622	'	'	'	42,644
Issuance of common stock and equivalents in connection with the acquisition of Panopticon AB (in Shares)	2,169,941	'	'	'	'	'
Exercise of stock options	2	196	'	'	'	198
Exercise of stock options (in Shares)	67,000	'	'	'	'	67,000
Vesting of restricted stock (in Shares)	185,617	'	'	'	'	'
Dissolution of DWE subsidiary	'	-125	'	'	'	-125
Share-based compensation expense	'	3,323	'	'	'	3,323
Translation adjustments	'	'	'	-162	'	-162
Net income (loss)	'	'	-4,197	'	'	-4,197
BALANCE at Sep. 30, 2013	88	72,726	-20,021	-1,278	-140	51,375
BALANCE (in Shares) at Sep. 30, 2013	8,795,023	'	'	'	-14,246	'
Issuance of common stock	20	53,608	'	'	'	53,628
Issuance of common stock (in Shares)	2,018,250	'	'	'	'	'
Exercise of stock options	6	173	'	'	'	179
Exercise of stock options (in Shares)	42,709	'	'	'	'	42,709
Vesting of restricted stock (in Shares)	433,116	'	'	'	'	'
Share-based compensation expense	'	8,446	'	'	'	8,446
Excess tax benefits from stock-based compensation awards	'	7	'	'	'	7
Translation adjustments	'	'	'	-342	'	-342
Net income (loss)	'	'	-22,383	'	'	-22,383
BALANCE at Sep. 30, 2014	$114	$134,960	($42,404)	($1,620)	($140)	$90,910
BALANCE (in Shares) at Sep. 30, 2014	11,289,098	'	'	'	-14,246	'

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Statement of Comprehensive (Loss) Income [Abstract]	'	'	'
Net (loss) income	($22,383)	($4,197)	$1,034
Other comprehensive (loss) income:	'	'	'
Foreign currency translation adjustments	-342	-162	82
Comprehensive (loss) income	($22,725)	($4,359)	$1,116

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'	'
Net (loss) income	($22,383,000)	($4,197,000)	$1,034,000
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities:	'	'	'
Depreciation and amortization	4,237,000	2,293,000	1,207,000
Share-based compensation expense	8,446,000	3,323,000	879,000
Non-cash interest expense	187,000	191,000	92,000
Loss on extinguishment of debt	795,000	'	'
Deferred income taxes	-523,000	-83,000	'
Changes in operating assets and liabilities:	'	'	'
Accounts receivable	-414,000	-1,457,000	-1,404,000
Inventories	-103,000	13,000	-10,000
Prepaid expenses and other assets	-437,000	-328,000	-222,000
Accounts payable, accrued expenses and other liabilities	-1,092,000	2,181,000	-206,000
Deferred revenue	295,000	456,000	2,585,000
Cash (used in) provided by operating activities	-10,992,000	2,392,000	3,955,000
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'	'
Non-cash purchase of intellectual property	'	'	-8,616,000
Gain on disposition of investment	'	-374,000	'
Net cash received from acquisition of Panopticon	'	383,000	'
Capitalized software development costs	-250,000	-440,000	-54,000
Purchases of property and equipment	-276,000	-152,000	-145,000
Decrease (increase) in other assets	'	60,000	-3,000
Cash used in investing activities	-526,000	-523,000	-8,818,000
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'	'
Proceeds from issuance of common stock, net of issuance costs	53,628,000	'	'
Proceeds from issuance of note payable	'	2,000,000	4,000,000
Proceeds from exercise of stock options	179,000	198,000	261,000
Repayments on debt	-3,944,000	-2,056,000	'
Repayments on line of credit	-900,000	'	-600,000
Excess tax benefits from stock-based compensation awards	7,000	'	'
Advances on line of credit	'	'	1,500,000
Capitalized debt issuance costs	-5,000	-79,000	-72,000
Cash provided by financing activities	48,965,000	63,000	5,089,000
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	-91,000	-342,000	112,000
INCREASE IN CASH AND CASH EQUIVALENTS	37,356,000	1,590,000	338,000
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	10,312,000	8,722,000	8,384,000
CASH AND CASH EQUIVALENTS, END OF PERIOD	47,668,000	10,312,000	8,722,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:	'	'	'
Interest paid	169,000	481,000	239,000
Income taxes paid	$122,000	$38,000	$92,000

NATURE_OF_BUSINESS_AND_SUMMARY

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2014
Nature of Business and Summary of Significant Accounting Policies [Abstract]	'
Nature of Business and Summary of Significant Accounting Policies	'
	NOTE 1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	Nature of Business

	Datawatch Corporation (the “Company” or “Datawatch”) designs, develops, markets and distributes business computer software products. The Company also provides services, including implementation and support of its software products, as well as training on their use and administration. The Company is subject to a number of risks including dependence on key individuals, competition from substitute products and larger companies and the need for successful ongoing development and marketing of products.

	Summary of Significant Accounting Policies

	Principles of Consolidation

	These consolidated financial statements include the accounts of Datawatch and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In 2013, the Company dissolved one of its international operations, Datawatch Europe Limited, and recorded a gain on disposition of investment of approximately $374,000.

	Accounting Estimates

	The preparation of financial statements in conformity with 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, valuation of share-based compensation awards, useful lives of property and equipment, and the valuation of long term assets including goodwill, intellectual property and intangibles, capitalized software development costs and deferred tax assets. Actual results could differ from those estimates and judgments.

	The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

	Revenue Recognition

	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 and indirectly to end-users through value added resellers and distributors. Sales to indirect distribution channels accounted for approximately 44%, 45% and 31% of total sales for the years ended September 30, 2014, 2013 and 2012, respectively. The Company’s software product offerings do not require customization and 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 the software.

	Revenue typically consists of software licenses, post-contract support (“PCS”) 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. PCS 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 PCS 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 PCS 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, 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 also licenses its enterprise software using a subscription model. At the time a customer enters into a binding agreement to purchase a subscription, the customer is invoiced for an initial 90 day service period and an account receivable and deferred revenue are recorded. Beginning on the date the software is installed at the customer site and available for use by the customer, and provided that all other criteria for revenue recognition are met, the deferred revenue amount is recognized ratably over the period the service is provided. The customer is then invoiced every 90 days and revenue is recognized ratably over the period of the subscription. The subscription arrangement includes software, maintenance and unspecified future upgrades including major version upgrades on a when-and-if available basis. The subscription renewal rate is the same as the initial subscription rate. Subscriptions can be cancelled by the customer at any time by providing 90 days prior written notice following the first year of the subscription term.

	The Company’s software products are sold under warranty against certain defects in material and workmanship for a period of 30 days from the date of purchase. Additionally, the Company provides its sole distributor, Lifeboat Distribution, 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, its sole distributor and various resellers, which the Company monitors frequently.

	Allowance for Doubtful Accounts

	The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. The Company analyzes accounts receivable and the composition of the accounts receivable aging, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Actual results could differ from the allowances recorded, and this difference could have a material effect on the Company’s financial position and results of operations. Receivables are written off against these allowances in the period they are determined to be uncollectible.

	For the fiscal years ended September 30, 2014, 2013 and 2012, changes to and ending balances of the allowance for doubtful accounts were approximately as follows:




			2014			2013			2012
			(In thousands)

	Allowance for doubtful accounts balance - beginning of year		$	43		$	107		$	78
	Additions to the allowance for doubtful accounts			18			-			93
	Deductions against the allowance for doubtful accounts			-8			-64			-64
	Allowance for doubtful accounts balance - end of year		$	53		$	43		$	107

	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.

	For the fiscal years ended September 30, 2014, 2013 and 2012, changes to and ending balances of the sales returns reserve were approximately as follows:


			2014			2013			2012
			(In thousands)

	Sales returns reserve balance - beginning of year		$	20		$	105		$	70
	Additions to the sales returns reserve			24			-			117
	Deductions against the sales returns reserve			-34			-85			-82
	Sales returns reserve balance - end of year		$	10		$	20		$	105

	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 straight-line over the estimated life of the product, generally nine to 18 months. The Company evaluates the realizability of the assets and the related periods of amortization on a regular basis. Judgment is required in determining when technological feasibility of a product is established as well as its economic life. During fiscal year 2014, the Company capitalized approximately $250,000 of software development costs and during fiscal year 2013, the Company capitalized approximately $440,000 of software development costs.

For the fiscal years ended September 30, 2014, 2013 and 2012, amounts related to capitalized and purchased software development costs were approximately as follows:



		2014				2013			2012
		(In thousands)

Capitalized and purchased software balance - beginning of year		$	350			$	30		$	14
Capitalized software development costs			250				440			54
Amortization of capitalized software development costs			-600				-120			-38
Capitalized and purchased software balance - end of year		$	-			$	350		$	30

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, cash deposited with banks and highly liquid securities consisting of money market investments with original maturities of 90 days or less.

Concentration of Credit Risks and Major Customers

Financial instruments, which potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company’s cash is maintained with what management believes to be a high-credit quality financial institution. At times, deposits held at this bank may exceed the federally insured limits. Management believes that the financial institutions that hold the Company’s deposits are financially sound and have minimal credit risk. Risks associated with cash and cash equivalents are mitigated by the Company’s investment policy, which limits the Company’s investing of excess cash into only money market mutual funds.

The Company licenses its products and services directly to end-users and indirectly to end-users through U.S. and non-U.S. distributors and other software resellers, under customary credit terms. One customer, Lifeboat Distribution, accounted for approximately 15%, 20% and 17% of total revenue for the years ended September 30, 2014, 2013 and 2012 respectively. Lifeboat Distribution accounted for approximately 13% and 11% of total accounts receivable for the years ended September 30, 2014 and 2013, respectively. In fiscal 2012, the Company consolidated its indirect distribution channels under Lifeboat Distribution. The Company’s current agreement with Lifeboat Distribution is scheduled to expire in early 2015 and, to manage the transition, the Company has refocused part of its Inside Sales Team to manage and pursue the book of business previously handled by Lifeboat.

In addition to Lifeboat Distribution, one additional customer, Unisys Belgium, individually accounted for approximately 24% of total accounts receivable at September 30, 2012. Two additional customers, Xerox and Thomson Reuters, accounted for approximately 19% and 23%, respectively, of total accounts receivable at September 30, 2013. Other than these customers, no other customer constitutes a significant portion (more than 10%) of revenues or accounts receivable for the periods presented. The Company performs ongoing credit evaluations of its customers and generally does not require collateral.

Deferred Revenue

Deferred revenue consisted of the following at September 30:



		2014			2013
		(In thousands)

Maintenance		$	7,154		$	6,907
License			108			69
Other			244			235
Total			7,506			7,211

Less: Long-term portion of deferred maintenance			-105			-214

Current portion of deferred revenue		$	7,401		$	6,997

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 12 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.

Inventories

Inventories consist of software components, primarily software licenses, manuals, compact disks and retail packaging materials. Inventories are valued at the lower of cost (first-in, first-out method) or market.

Property and Equipment

Property and equipment consists of office equipment, furniture and fixtures, software and leasehold improvements, all of which are recorded at cost. Depreciation and amortization are provided using the straight-line method over the 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 $158,000, $145,000 and 137,000, respectively, for the years ended September 30, 2014, 2013 and 2012.

Long-Lived Assets

The Company periodically evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful lives of long-lived assets and certain identifiable intangibles may warrant revision or that the carrying value of these assets may be impaired. If facts and circumstances indicate that an impairment may have occurred, the estimated undiscounted future cash flows for the estimated remaining useful life of the respective assets are compared to the carrying value. To the extent that the undiscounted future cash flows are less than the carrying value, the fair value of the asset is determined and an impairment is recognized. If such fair value is less than the current carrying value, the asset is written down to its estimated fair value.

Acquired Intellectual Property

On March 30, 2012, the Company acquired 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 years ended September 30, 2014, 2013 and 2012, was approximately $2,777,000, $1,811,000 and $871,000, respectively.

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


Fiscal Years Ending September 30,

2015		$	2,777
2016			2,777
2017			1,905
2018			1,053
2019			1,053
Thereafter			1,492
Total estimated future amortization expense		$	11,057


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 these intangible assets are amortized using the straight-line method over the estimated useful life of the related asset. 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. As of September 30, 2014, the Company does not have any long-lived assets it considers to be impaired.

Other intangible assets, net, were comprised of the following at September 30, 2014 and 2013:





				30-Sep-14												30-Sep-13
		Weighted		Gross															Gross
Identified Intangible		Average		Carrying				Accumulated					Net Carrying						Carrying		Accumulated		Net Carrying
Asset		Useful Life		Amount				Amortization					Amount						Amount		Amortization		Amount
		(In years)		(In thousands)

Capitalized software		1		$	1,880			$	1,880				$	-					$	1,630	$	1,280	$	350
Patents		20			160				81					79						160		73		87
Customer lists		14			8,990				2,047					6,943						8,990		1,401		7,589
Trade names		3			120				52					68						120		4		116
Loan acquisition costs		4			172				172					-						167		49		118

Total				$	11,322			$	4,232				$	7,090					$	11,067	$	2,807	$	8,260

The intangible asset amounts amortized to cost of software licenses totaled approximately $608,000, $128,000 and $46,000 for fiscal 2014, 2013 and 2012, respectively. Intangible asset amounts amortized to sales and marketing expense totaled approximately $646,000, $206,000 and $166,000 for fiscal 2014, 2013 and 2012, respectively. Intangible asset amounts amortized to general and administrative expense totaled approximately $48,000 and $4,000 for fiscal 2014 and 2013, respectively. There were no intangible assets amortized to general and administrative expense for fiscal 2012. Intangible asset amounts amortized to interest expense totaled approximately $123,000, $33,000 and $16,000 for fiscal 2014, 2013 and 2012, respectively.

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


Fiscal Years Ending September 30,

2015		$	702
2016			605
2017			488
2018			488
2019			488
Thereafter			4,319
Total estimated future amortization expense		$	7,090

Goodwill and Indefinite-Lived Assets

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of acquired businesses. Indefinite-lived intangibles are intangible assets whose useful lives are indefinite in that their lives extend beyond the foreseeable horizon – that is there is no foreseeable limit on the period of time over which they are expected to contribute to the cash flows of the reporting entity. The Company accounts for these items in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350 Intangibles – Goodwill and Other. This requires that goodwill and intangible assets having indefinite lives are not amortized but instead are 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. Goodwill and assembled workforce are considered indefinite-lived intangibles. The Company conducts its annual impairment test for goodwill and indefinite-lived intangible assets during the fourth quarter of each fiscal year. In 2014, the Company conducted its annual goodwill impairment test on August 1, 2014. As of September 30, 2014, the Company does not have goodwill it considers to be impaired.

Fair Value Measurements

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable and accounts 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 approximately $38,863,000 and $2,234,000 as of September 30, 2014 and 2013, respectively, within Level 2 of the fair value hierarchy.

As of September 30, 2014 and 2013, the Company’s assets that are measured on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands):



		September 30, 2014									September 30, 2013
		Fair Value									Fair Value
		Measurement									Measurement
		Using Input Types									Using Input Types
		Level			Level			Level			Level			Level			Level
		1			2			3			1			2			3

Assets:
Money market funds		$			$	38,863		$	-		$	-		$	2,234		$	-
Total		$	-		$	38,863		$	-		$	-		$	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) Income Per Share

Basic net (loss) income per common share is computed by dividing net (loss) income 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):



		Years Ended September 30,
		2014			2013			2012

Net (loss) income available to common shareholders		$	-22,383		$	-4,197		$	1,034

Weighted-average number of common shares outstanding used in calculation of basic earnings per share			9,998,288			6,634,011			6,251,765
Incremental shares from the assumed exercise of dilutive stock options			-			-			477,907
Weighted-average number of common shares outstanding used in calculating diluted earnings per share			9,998,288			6,634,011			6,729,672


As the Company was in a net loss position in fiscal 2014 and 2013, all common stock equivalents in the respective periods were anti-dilutive. As a result of being anti-dilutive, 11,059 shares and 239,451 shares for the years ended September 30, 2014 and 2013, respectively, were excluded in the calculation above.

Foreign Currency Translations and Transactions

The Company’s foreign subsidiaries functional currency is their local currency. As a result, 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 losses arising during fiscal 2014 and 2013 were approximately $342,000 and $162,000, respectively. Foreign currency translation gain arising during fiscal 2012 was approximately $82,000.

Gains and losses resulting from transactions that are denominated in currencies other than the applicable unit’s functional currency are included in the operating results of the Company and were losses of approximately $76,000 $41,000, and $126,000 for the years ended September 30, 2014, 2013 and 2012, respectively.

Advertising and Promotional Materials

Advertising costs are expensed as incurred and amounted to approximately $752,000, $290,000 and $9,000 in fiscal years 2014, 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.

Segment Information and Revenue by Geographic Location

The Company has determined that it has only one reportable segment. The Company’s chief operating decision maker, its Chief Executive Officer, does not manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and operating results. See Note 9 for information about the Company’s revenue by product lines and geographic operations.

Guarantees and Indemnifications

The Company’s software products are sold under warranty against certain defects in material and workmanship for a period of 30 days from the date of purchase. The Company has never incurred significant expense under its product or service warranties and does not expect to do so in the future. As a result, the Company believes its exposure related to these warranty agreements is minimal. Accordingly, there are no liabilities recorded for warranty claims as of September 30, 2014 or 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 September 30, 2014 or 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 September 30, 2014 or 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 September 30, 2014 or 2013.

Research and Development Costs

Research and development costs are expenses as incurred.

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 May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU is the result of a joint project by the FASB and the International Accounting Standards Board (“IASB”) to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”) that would: remove inconsistencies and weaknesses, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices across entities, jurisdictions, industries, and capital markets, improve disclosure requirements and resulting financial statements, and simplify the presentation of financial statements. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is effective for annual reporting periods beginning after December 15, 2016. Early application is not permitted. The Company is currently assessing the impact of this guidance.
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.

ACQUISITION

ACQUISITION	12 Months Ended
ACQUISITION	Sep. 30, 2014
Acquisition [Abstract]	'
Acquisition	'
	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 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, which were fully vested as of February 28, 2014. Total fair value of the consideration of common stock issued was approximately $42,644,000 ($23.12 per share) at closing. 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 table below summarizes the estimated fair value of net assets acquired and net liabilities acquired in the Panopticon transaction and reflects adjustments made in the period after the acquisition date to the amounts initially recorded in 2013 (the “Measurement Period Adjustments”).


		Amount

	Current assets	$	1,318
	Property, plant and equipment		2
	Other intangible assets		15,220
	Goodwill		28,383
	Obligations under deferred revenue		-189
	Accounts payable and accrued expenses		-756
	Deferred income taxes		-1,159
	Fair value of net assets acquired	$	42,819
	Less:
	Common stock issued	$	-42,644
	Seller financing		-175
	Cash and cash equivalents acquired		-383
	Net cash provided by acquisition	$	383

	Fair value of intangible assets was determined using a combination of the income approach and the cost approach and relief from royalty method. As the acquisition was a stock acquisition, the goodwill recognized will not be deductible for tax purposes. In addition, the Company incurred approximately $1,000,000 of acquisition related costs in fiscal 2013 and these costs are included in general and administrative expense in the accompanying consolidated statement of operations.

	Management is responsible for the valuation of net assets acquired and considered a number of factors, including valuations and appraisals, when estimating the fair values and estimated useful lives of acquired assets and liabilities.

	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

	The following unaudited pro forma financial information reflects the combined results of operations for the fiscal years ended September 30, 2013 and September 30, 2012, assuming that Panopticon was acquired at the beginning of each respective fiscal period. This information does not necessarily reflect the results of operations that would have occurred had the acquisitions taken place at the beginning of the period, and is not necessarily indicative of the results which may be obtained in the future (in thousands, except per share data):




		September 30,
		2013		2012

	Total revenue	$	33,271	$	28,828
	Net income (loss)		-6,542		-2,639
	Net income (loss) per share
	Basic and diluted	$	-0.79	$	-0.33
	Number of weighted average shares
	Basic and diluted		8,322		8,117

	The Measurement Period Adjustments to goodwill for the Panopticon Software AB and Panopticon Software, Inc. acquisitions resulted from additional information obtained during the measurement period which ended August 28, 2014. During the fourth quarter of fiscal 2014, the Company completed its pre-acquisition tax returns for Panopticon Software AB and Panopticon Software, Inc. Upon completion of these filings, the Company was able to finalize its assessment of acquired deferred tax assets and recorded a decrease of approximately $389,000 to goodwill offset by an increase in the tax assets. The net increase in tax assets includes an increase of approximately $407,000 related to the deferred tax asset for net operating losses of Panopticon Software AB and a decrease of approximately $18,000 related to the pre-acquisition income tax payable of Panopticon Software, Inc. Accordingly, the Company retrospectively adjusted its balance sheet as of September 30, 2013 to reflect these Measurement Period Adjustments. The change in goodwill as of September 30, 2013 is as follows (in thousands):



	Balance at September 30, 2012	$	-
	Goodwill acquired		28,772
	Balance at September 30, 2013		28,772
	Measurement period adjustments		-389
	Balance at September 30, 2013, adjusted	$	28,383

ACCRUED_EXPENSES

ACCRUED EXPENSES	12 Months Ended
ACCRUED EXPENSES	Sep. 30, 2014
Accrued Expenses [Abstract]	'
Accrued Expenses	'
	NOTE 3. ACCRUED EXPENSES

	Accrued expenses consisted of the following at September 30, 2014 and 2013:




		September 30,
		2014		2013


	Royalties and commissions	$	1,158	$	1,483
	Payroll and related expenses		747		944
	Other		428		637
	Professional fees and consulting		551		417
	Total	$	2,884	$	3,481

FINANCING_ARRANGEMENTS

FINANCING ARRANGEMENTS	12 Months Ended
FINANCING ARRANGEMENTS	Sep. 30, 2014
Financing Arrangements [Abstract]	'
Financing Arrangements	'
	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 terminated on March 29, 2014. On that date, the principal amount of all advances then outstanding under the revolving line and all unpaid interest thereon were due and payable. The principal amount outstanding under the revolving line accrued 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 could borrow under the SVB revolving line of credit based on a formula percentage of its accounts receivable balance. Additionally, the SVB facility required that the Company maintain certain net asset and net income ratios. As of September 30, 2014, the Company had paid down all amounts owed under the revolving credit facility and the facility and the SVB agreement had been terminated. The principal amount outstanding under the revolving line of credit at 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 would have become due and payable. The principal amount outstanding under the Term Loan Advance accrued interest at a floating per annum rate equal to two and one half percent (2.5%) above the Prime Rate (3.25%) and was payable monthly. The second amendment to the SVB agreement also amended the financial covenants and required that Company maintain certain liquidity ratios and minimum earnings before interest, taxes, depreciation and amortization (“EBITDA”) balances. As of September 30, 2014, the Company had paid down all amounts owed under the term loan advance and the SVB agreement had been terminated. As of September 30, 2013, approximately $1,945,000 remained outstanding and accrued interest on the note as of September 30, 2013 was approximately $9,000.

	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 included a $4,000,000 subordinated note and warrants for 185,000 shares of the Company’s common stock. The subordinated note issued to MCRC had 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 contained 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 would have made principal payments of $66,667 per month. The Company was 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. This amendment was accounted for as a modification per ASC 470-50, Debt Modifications and Extinguishment, therefore the direct costs incurred in completing the modification were expensed. As of September 30, 2014, the Company had paid down all amounts owed under the subordinated note and the note and the MCRC agreement had been terminated except with respect to the outstanding warrants.

	The warrants issued to MCRC are exercisable at any time prior to 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 warrants 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 September 30, 2014 and 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%).

	Interest expense related to the warrants during the fiscal years ended September 30, 2014 and 2013 was approximately $65,000 and $157,000, respectively.
	During the year ended September 30, 2014, as a result of paying off the subordinated note, the Company recorded a loss on extinguishment of debt of approximately $795,000 which represented the unamortized debt discount on the subordinated note and was recorded as other expense within the accompanying consolidated statement of operations.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
	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 2019. 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 $954,000, $545,000 and $454,000 for the years ended September 30, 2014, 2013 and 2012, respectively. Certain of the Company's facility leases include options to renew.

	As of September 30, 2014, future minimum rental commitments under non-cancelable operating leases are as follows (in thousands):


	Years Ending September 30,

	2015		527
	2016		264
	2017		45
	2018		46
	2019		43
	Total future minimum lease payments	$	925

	Royalties

	Royalty expense included in cost of software licenses was approximately $416,000, $194,000 and $1,161,000 for the years ended September 30, 2014, 2013 and 2012, respectively. Minimum royalty obligations were insignificant for fiscal years 2014, 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	12 Months Ended
INCOME TAXES	Sep. 30, 2014
Income Taxes [Abstract]	'
Income Taxes	'
	NOTE 6. INCOME TAXES

	(Loss) income from operations before income taxes consists of the following for the years ended September 30:




			2014			2013			2012
			(In thousands)

	Domestic		$	-17,533		$	-2,139		$	1,253
	Foreign			-5,369			-2,146			-169

	Total		$	-22,902		$	-4,285		$	1,084

	The (benefit) provision for income taxes consisted of the following for the years ended September 30:




			2014			2013			2012
			(In thousands)

	Current:
	Federal		$	-8		$	-4		$	4
	State			12			-1			21
	Foreign			-			-			25
				4			-5			50

	Deferred:
	Federal			-4,890			-1,070			-391
	State			-882			-293			-3
	Foreign			176			-83			-
	Change in valuation allowance			5,073			1,363			394
				-523			-83			-

	Total (benefit) provision		$	-519		$	-88		$	50

	At September 30, 2014, the Company had U.S. federal tax loss carryforwards of approximately $27,020,000, expiring at various dates through 2034, including approximately $182,000 resulting from the an acquisition during 2004 which are subject to additional annual limitations as a result of the changes in ownership, and had approximately $11,863,000 in state tax loss carryforwards, which also expire at various dates through 2034. Included in the Federal and state net operating loss carryforwards are approximately $7,668,000 of tax deductions from share-based compensation, which will be recorded as additional paid-in capital when realized. These loss carryforwards are available to reduce future federal, state and foreign taxable income but are subject to review and possible adjustment by the appropriate taxing authorities. The loss carryforwards, which may be utilized in any future period, may be subject to limitations based upon changes in the ownership of the Company’s stock. An alternative minimum tax credit of approximately $7,000 is available to offset future regular federal taxes. Federal research and development credits of approximately $754,000 expire beginning in 2021. State research and development credits of approximately $522,000 expire at various years through 2029. In addition, the Company has the following net operating loss carryforwards: U.K. losses of approximately $3,482,000 with no expiration date, Australia losses of approximately $3,814,000 with no expiration date, Germany losses of approximately $2,000,000 with no expiration date, Singapore losses of approximately $2,339,000 with no expiration date, and Sweden losses of approximately $10,500,000 with no expiration date.

	The components of the Company’s net deferred tax assets are as follows at September 30:




			2014			2013			2012
			(In thousands)

	Deferred tax liabilities:
	Prepaid expenses		$	-234		$	-86		$	-47
	Acquired intangibles			-3,108			-3,456			-
				-3,342			-3,542			-47
	Deferred tax assets:
	Net operating loss carryforwards			13,063			8,124			5,493
	Research and development credits			1,099			1,120			778
	Alternative minimum tax credits			7			154			154
	Accounts and notes receivable reserves			40			40			105
	Depreciation and amortization			2,178			1,861			1,446
	Other			221			158			-300
				16,608			11,457			7,676

	Total			13,266			7,915			7,629

Valuation allowance			-14,064			-8,991			-7,629

Deferred tax liability, net		$	-798		$	-1,076		$	-

With the exception of Sweden, the valuation allowance relates to the Company’s U.S. and foreign net operating losses and other deferred tax assets and is recorded based upon the uncertainty surrounding their realizability, as these assets can only be realized via profitable operations in the respective tax jurisdictions. The Company records a deferred tax asset or liability based on the difference between the financial statement and tax basis of assets and liabilities, as measured by enacted tax rates assumed to be in effect when these differences reverse. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence including its past operating results, the existence of cumulative income in the most recent fiscal years, changes in the business in which the Company operates and its forecast of future taxable income. In determining future taxable income, the Company is responsible for assumptions utilized including the amount of federal, state and international pre-tax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies.

These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates that the Company is using to manage the underlying business. Despite having net income for book purposes, the Company has experienced cumulative tax losses on a three year running basis covering the years ended September 30, 2014, 2013 and 2012. Accordingly, as of September 30, 2014, the Company determined that it is more likely than not that the deferred tax assets will not be realized in all of its jurisdictions with the exception of Sweden and a full valuation allowance has been recorded in the U.S., U.K., Australia, Germany, and Singapore.

The following table reconciles the Company’s tax provision based on its effective tax rate to its tax provision based on the federal statutory rate of 34% for the years ended September 30, 2014, 2013 and 2012 (in thousands):




		2014			2013			2012
		(In thousands)

Provision at federal statutory rate		$	-7,757		$	-1,457		$	369
State, net of federal impact			-474			-303			14
Foreign income taxes			-642			-268			-
Valuation allowance increase			5,073			1,363			394
Return to provision adjustments			48			3			-256
Foreign rate change			394			39			-369
Stock-based compensation			1,103			316			-
NOL adjustment due to subsidiary liquidation			1,345			-			-
Acquisition costs			59			339			-
Change in uncertain tax positions			-386			7			25
IRS Audit Adjustments			535			-			-
Other			183			-127			-127

(Benefit) provision for income taxes		$	-519		$	-88		$	50


Deferred Taxes

The Company’s deferred tax assets include net operating loss carry forwards and tax credits that expire at different times through 2034 or have an unlimited carry forward. 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 September 30, 2014. The Company’s Swedish subsidiary has recorded a $798,000 deferred tax liability.

Provision for Uncertain Tax Positions

The Company applies the accounting requirements for uncertain tax positions which provide a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns.

In accordance with these requirements, the Company first determines whether a tax authority would “more likely than not” sustain its tax position if it were to audit the position with full knowledge of all the relevant facts and other information. For those tax positions that meet this threshold, the Company measures the amount of tax benefit based on the largest amount of tax benefit that the Company has a greater than 50% chance of realizing in a final settlement with the relevant authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations.

At September 30, 2014, the Company had a cumulative tax liability of $335,000 related to Federal, state, and foreign tax exposure that could result in cash payments. The Company decreased the tax liability by $678,000 during the fiscal year ended September 30, 2014. The decrease related to the effective settlement of U.S. uncertain tax positions and the statute of limitations expiring on U.S. and foreign uncertain tax positions. 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. The Company accrued $8,000 of interest and penalties associated with this liability for the fiscal year ended September 30, 2014. To date, the Company has accrued approximately $20,000 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 fiscal year ended September 30, 2014 was as follows (in thousands):




Balance at September 30, 2012		$	866
Additions for prior year tax positions			132
Balance at September 30, 2013			998
Reductions for prior year tax positions			-678
Balance at September 30, 2014		$	320
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, 2011 through September 30, 2013 are generally still open to examination in the jurisdictions listed above. The Company was under audit by the Internal Revenue Service for the fiscal year ended September 30, 2011. The audit was completed during the fourth quarter ended September 30, 2014 and resulted in the reduction of $535,000 related to research credits, AMT credits, and NOL carryforwards which had a full valuation. The Company did not have to make any cash payments as a result of this audit.

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	12 Months Ended
SHARE-BASED COMPENSATION	Sep. 30, 2014
Share-Based Compensation [Abstract]	'
Share-Based Compensation	'
	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.

	On January 20, 2006, the Company established the Datawatch Corporation 2006 Equity Compensation and Incentive Plan (the “2006 Plan”) which provides for the granting of both incentive stock options and non-qualified options, the award of Company common stock and opportunities to make direct purchases of Company common stock (collectively, “Stock Rights”), as determined by a committee appointed by the Board of Directors. Options pursuant to this plan were available to be granted through April 26, 2011 and vest as specified by the committee.

	On April 26, 2011, the Company established the Datawatch Corporation 2011 Equity Compensation and Incentive Plan (the “2011 Plan”) which provides for the granting of both incentive stock options and non-qualified options, the award of restricted stock, restricted stock units, and any other equity-based interests (collectively, “Stock Rights”), as determined by a committee appointed by the Board of Directors. Options pursuant to this plan may be granted through April 25, 2021 and shall vest as specified by the committee.

	The Company recognizes share-based compensation expense in accordance with U.S. GAAP which requires that all share-based awards, including grants of employee stock options, be recognized in the financial statements based on their fair value. The Company recognizes the fair value of share-based awards over the requisite service period of the individual awards, which generally equals the vesting period. All of the Company’s stock compensation awards are accounted for as equity instruments and there have been no liability awards granted.

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



			Years Ended September 30,
			2014			2013			2012
			(In thousands)

	Sales and marketing		$	5,243		$	2,206		$	528
	Engineering and product development			1,585			442			43
	Professional services			143			17			-
	General and administrative			1,475			658			308
	Total		$	8,446		$	3,323		$	879

	*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 year ended September 30, 2014. There were 75,000 options granted under the stock options plans for the year ended September 30, 2013. The weighted-average fair value of options granted under the stock options plans for the year ended September 30, 2013 was $7.61. No options were granted under the stock option plans for the year ended September 30, 2012. The total intrinsic value of options exercised during the years ended September 30, 2014, 2013 and 2012 was approximately $719,000, $1,039,000 and $778,000, respectively. Total cash received from option exercises during the years ended September 30, 2014, 2013 and 2012 was approximately $179,000, $198,000 and $261,000, respectively. The tax benefit realized from stock options exercised during the years ended September 30, 2014 and 2013 was approximately $24,000 and $61,000, respectively. As of September 30, 2014, there was approximately $268,000 of total unrecognized compensation cost related to non-vested stock option arrangements, which is expected to be recognized over a weighted-average period of 1.56 years. Many of the assumptions used in the determination of share-based compensation expense are judgmental and highly volatile.

	The table below indicates the key assumptions used in the option valuation calculations for options granted for the year ended September 30, 2013:



				2013

	Expected life				5 Years
	Expected volatility				72.95	%
	Weighted-average volatility				72.95	%
	Risk-free interest rate				0.71	%
	Dividend yield				-	%

	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.

	On April 22, 2014, the stockholders of the Company approved the adoption of the Company’s Second Amended and Restated 2011 Equity Compensation and Incentive Plan (the “Amended 2011 Plan”), which amends the previous Amended and Restated 2011 Equity Compensation and Incentive Plan to increase the shares authorized for issuance under such plan by 700,000 shares to 2,275,392 shares. At September 30, 2014, 643,224 shares were available for future issuance under the 2011 Plan.

	The following table is a summary of combined activity for all of the Company’s stock option plans:

					Weighted-			Weighted-
					Average			Average		Aggregate
					Exercise			Remaining		Intrinsic
			Number of		Price			Life		Value
			Options		Per Share			(In years)		(In thousands)

	Outstanding, September 30, 2011		459,662		$	3.46		4.13		$	872
	Granted		-			-		-			-
	Canceled/Forfeited		-4,000			2.68		-			70
	Exercised		-100,328			2.60		-			778
	Outstanding, September 30, 2012		355,334			3.71		3.94		$	5,883
	Granted		75,000			12.92		6.56			1,124
	Canceled/Forfeited		-125			2.79		-			3
	Exercised		-67,000			2.93		-			1,039
	Outstanding, September 30, 2013		363,209			5.76		4.33		$	8,042
	Granted		-			-		-			-
	Canceled/Forfeited		-			-		-			-
Exercised		-42,709			4.18		-			719
Outstanding, September 30, 2014		320,500		$	5.97		3.74		$	1,572

Exercisable, September 30, 2014		276,745		$	4.87		3.46		$	1,572
Expected to vest, September 30, 2014		39,379		$	12.92		5.56		$	-

The following table presents weighted-average price and life information regarding options outstanding and exercisable at September 30, 2014:



Outstanding													Exercisable
							Weighted-Average				Weighted-				Weighted-
							Remaining				Average				Average
Exercise				Number of			Contractual				Exercise				Exercise
Prices				Shares			Life (Years)				Price		Shares		Price

	$1.61 – $2.79				13,000			2.24			$	2.27		13,000	$	2.27
	$3.22 – $4.55				170,000			3.11				3.51		170,000		3.51
	$4.88 – $5.62				62,500			3.6				5.10		62,500		5.10
	$12.92				75,000			5.56				12.92		31,245		12.92

					320,500			3.74			$	5.97		276,745	$	4.87


Restricted Stock Units

The Company periodically grants awards of restricted stock units (“RSUs”) to each of its non-employee directors and some of its management team and employees on a discretionary basis pursuant to its stock compensation plans. Each RSU entitles the holder to receive, at the end of each vesting period, a specified number of shares of the Company’s common stock. The total number of RSUs unvested at September 30, 2014 was 740,011. Most RSUs vest at the rate of 33.33% on each of the first through third anniversaries of the grant date. Included in the total number of RSUs unvested at September 30, 2014 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 four years of the grant date		*	77,312
$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		*	41,843
$17.50 per share prior to three years of the grant date		*	106,002
$20.00 per share prior to four years of the grant date		*	4,334
$22.50 per share prior to four years of the grant date		*	5,834
$22.50 per share prior to three years of the grant date		*	117,004
$22.50 per share prior to two and one-half years of the grant date		*	62,674
No further trading vesting condition			295,008
Unvested RSUs, September 30, 2014			740,011

The Company’s common stock has satisfied the per share market price vesting conditions for the grants denoted with an asterisk above totaling 445,003 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 fiscal years 2014, 2013 and 2012 were approximately $6,004,000 (or $19.98 weighted-average fair value per share), approximately $14,602,000 (or $18.40 weighted-average fair value per share) and approximately $3,100,000 (or $10.61 weighted-average fair value per share), respectively. The Company recorded compensation expense related to RSUs of approximately $8,181,000, $3,085,000 and $709,000 during the years ended September 30, 2014, 2013 and 2012, respectively. These amounts are included in the total share-based compensation expense disclosed above. As of September 30, 2014, there was approximately $11,015,000 of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted average period of 1.84 years.

The following table presents nonvested RSU information for the fiscal years ended September 30, 2012, 2013 and 2014:


		Number of
		RSUs
		Outstanding

Nonvested, September 30, 2011			294,344
Granted			294,900
Canceled/Forfeited			-28,501
Vested			-96,159
Nonvested, September 30, 2012			464,584
Granted			793,732
Canceled/Forfeited			-16,003
Vested			-185,617
Nonvested, September 30, 2013			1,056,696
Granted			300,500
Canceled/Forfeited			-97,835
Vested			-519,350
Nonvested, September 30, 2014			740,011

RETIREMENT_SAVINGS_PLAN

RETIREMENT SAVINGS PLAN	12 Months Ended
RETIREMENT SAVINGS PLAN	Sep. 30, 2014
Retirement Savings Plan [Abstract]	'
Retirement Savings Plan	'
	Note 8. RETIREMENT SAVINGS PLAN

	The Company has a 401(k) retirement savings plan covering substantially all of the Company’s full-time domestic employees. Under the provisions of the plan, employees may contribute a portion of their compensation within certain limitations. The Company, at the discretion of the Board of Directors, may make contributions on behalf of its employees under this plan. Such contributions, if any, become fully vested after five years of continuous service. The Company did not make any contributions to the 401(k) retirement savings plan in fiscal 2014, 2013 or 2012.

ISSUANCE_OF_COMMON_STOCK

ISSUANCE OF COMMON STOCK	12 Months Ended
ISSUANCE OF COMMON STOCK	Sep. 30, 2014
Issuance of Common Stock [Abstract]	'
Issuance of Common Stock	'

	Note 9. ISSUANCE OF COMMON STOCK
	On February 19, 2014, the Company completed a public offering of 2,018,250 shares of common stock at a price to the public of $28.50 per share. The number of shares the Company sold included the underwriters’ full exercise of their over-allotment option of 263,250 shares. Net proceeds to the Company from the offering, after underwriting discounts and expenses, were approximately $53,628,000.

SEGMENT_INFORMATION_AND_REVENU

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION	12 Months Ended
SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION	Sep. 30, 2014
Segment Information and Revenue by Geographic Location [Abstract]	'
Segment Information and Revenue by Geographic Location	'
	Note 10. SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION

	The Company has determined that it has only one reportable segment. The following table presents information about the Company’s revenues by product line for the years ended September 30:



		2014				2013				2012

	Visual Data Discovery Solutions		98	%			97	%			95	%
	Business Service Management Solutions		2	%			3	%			5	%

	Total		100	%			100	%			100	%

	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):


								Intercompany
		Domestic			International			Eliminations			Total

	Total Revenue
	Year ended September 30, 2014	$	30,055		$	8,153		$	-3,121		$	35,087
	Year ended September 30, 2013	$	27,127		$	4,047		$	-878		$	30,296
	Year ended September 30, 2012	$	22,915		$	3,958		$	-867		$	26,006

	Total Operating (Loss) Income
	Year ended September 30, 2014	$	-16,252		$	-5,396		$	-17		$	-21,665
	Year ended September 30, 2013	$	-1,471		$	-2,346		$	-		$	-3,817
	Year ended September 30, 2012	$	2,497		$	-954		$	-		$	1,543

	Total Long-Lived Assets
	At September 30, 2014	$	47,135		$	137		$	-		$	47,272
	At September 30, 2013	$	51,301		$	102		$	-		$	51,403

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Note 11. SUBSEQUENT EVENTS

	The Company has evaluated all events and transactions that occurred after the balance sheet date and through the date that the condensed consolidated financial statements were available to be issued noting none.

QUARTERLY_RESULTS

QUARTERLY RESULTS	12 Months Ended
QUARTERLY RESULTS	Sep. 30, 2014
Quarterly Results [Abstract]	'
Quarterly Results	'
	Note 12. QUARTERLY RESULTS (UNAUDITED)

	Supplementary Information:




		First		Second		Third		Fourth
		(In thousands, except per share amounts)

	Year Ended September 30, 2014:
	Software license revenue	$	5,433	$	4,375	$	5,580	$	5,239
	Maintenance revenue		2,993		3,127		3,236		3,489
	Professional services revenue		383		498		412		322
	Cost of software licenses		990		1,024		999		1,000
	Cost of maintenance and services		849		634		979		889
	Expenses		12,427		12,233		12,368		12,360
	Loss from operations		-5,457		-5,891		-5,118		-5,199
	Net loss		-5,614		-6,737		-5,157		-4,875

	Net loss per share – basic	$	-0.66	$	-0.7	$	-0.48	$	-0.4
	Net loss per share – diluted	$	-0.66	$	-0.7	$	-0.48	$	-0.4

	Year Ended September 30, 2013:
	Software license revenue	$	4,330	$	4,297	$	5,007	$	5,796
	Maintenance revenue		2,333		2,300		2,409		2,658
	Professional services revenue		158		234		411		363
	Cost of software licenses		521		531		549		904
	Cost of maintenance and services		530		565		602		743
	Expenses		5,820		6,213		7,196		9,939
	Loss from operations		-50		-478		-520		-2,769
	Net loss		-222		-626		-666		-2,683

	Net loss per share – basic	$	-0.03	$	-0.1	$	-0.1	$	-0.4
	Net loss per share – diluted	$	-0.03	$	-0.1	$	-0.1	$	-0.4

	Year Ended September 30, 2012:
	Software license revenue	$	4,208	$	4,274	$	4,699	$	3,619
	Maintenance revenue		1,717		1,861		2,106		2,218
	Professional services revenue		346		412		368		178
	Cost of software licenses		575		659		509		527
	Cost of maintenance and services		668		684		668		510
	Expenses		4,396		4,899		5,263		5,105
	Income (loss) from operations		632		305		733		-127
	Net income (loss)		603		160		548		-277

	Net income (loss) per share - basic	$	0.10	$	0.03	$	0.09	$	-0.04
	Net income (loss) per share - diluted	$	0.09	$	0.02	$	0.08	$	-0.04

NATURE_OF_BUSINESS_AND_SUMMARY1

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)	12 Months Ended
	Sep. 30, 2014
Nature of Business and Summary of Significant Accounting Policies [Abstract]	'
Principles of Consolidation	'
	Principles of Consolidation

	These consolidated financial statements include the accounts of Datawatch and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In 2013, the Company dissolved one of its international operations, Datawatch Europe Limited, and recorded a gain on disposition of investment of approximately $374,000.

Accounting Estimates	'
	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, valuation of share-based compensation awards, useful lives of property and equipment, and the valuation of long term assets including goodwill, intellectual property and intangibles, capitalized software development costs and deferred tax assets. Actual results could differ from those estimates and judgments.

	The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

Revenue Recognition	'
	Revenue 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 and indirectly to end-users through value added resellers and distributors. Sales to indirect distribution channels accounted for approximately 44%, 45% and 31% of total sales for the years ended September 30, 2014, 2013 and 2012, respectively. The Company’s software product offerings do not require customization and 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 the software.

	Revenue typically consists of software licenses, post-contract support (“PCS”) 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. PCS 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 PCS 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 PCS 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, 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 also licenses its enterprise software using a subscription model. At the time a customer enters into a binding agreement to purchase a subscription, the customer is invoiced for an initial 90 day service period and an account receivable and deferred revenue are recorded. Beginning on the date the software is installed at the customer site and available for use by the customer, and provided that all other criteria for revenue recognition are met, the deferred revenue amount is recognized ratably over the period the service is provided. The customer is then invoiced every 90 days and revenue is recognized ratably over the period of the subscription. The subscription arrangement includes software, maintenance and unspecified future upgrades including major version upgrades on a when-and-if available basis. The subscription renewal rate is the same as the initial subscription rate. Subscriptions can be cancelled by the customer at any time by providing 90 days prior written notice following the first year of the subscription term.

	The Company’s software products are sold under warranty against certain defects in material and workmanship for a period of 30 days from the date of purchase. Additionally, the Company provides its sole distributor, Lifeboat Distribution, 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, its sole distributor and various resellers, which the Company monitors frequently.

Allowance for Doubtful Accounts	'
	Allowance for Doubtful Accounts

	The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. The Company analyzes accounts receivable and the composition of the accounts receivable aging, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Actual results could differ from the allowances recorded, and this difference could have a material effect on the Company’s financial position and results of operations. Receivables are written off against these allowances in the period they are determined to be uncollectible.

	For the fiscal years ended September 30, 2014, 2013 and 2012, changes to and ending balances of the allowance for doubtful accounts were approximately as follows:




		2014			2013			2012
		(In thousands)

	Allowance for doubtful accounts balance - beginning of year	$	43		$	107		$	78
	Additions to the allowance for doubtful accounts		18			-			93
	Deductions against the allowance for doubtful accounts		-8			-64			-64
	Allowance for doubtful accounts balance - end of year	$	53		$	43		$	107


Sales Returns Reserve	'
	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.

	For the fiscal years ended September 30, 2014, 2013 and 2012, changes to and ending balances of the sales returns reserve were approximately as follows:


		2014			2013			2012
		(In thousands)

	Sales returns reserve balance - beginning of year	$	20		$	105		$	70
	Additions to the sales returns reserve		24			-			117
	Deductions against the sales returns reserve		-34			-85			-82
	Sales returns reserve balance - end of year	$	10		$	20		$	105


Capitalized Software Development Costs	'
	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 straight-line over the estimated life of the product, generally nine to 18 months. The Company evaluates the realizability of the assets and the related periods of amortization on a regular basis. Judgment is required in determining when technological feasibility of a product is established as well as its economic life. During fiscal year 2014, the Company capitalized approximately $250,000 of software development costs and during fiscal year 2013, the Company capitalized approximately $440,000 of software development costs.

	For the fiscal years ended September 30, 2014, 2013 and 2012, amounts related to capitalized and purchased software development costs were approximately as follows:



		2014				2013			2012
		(In thousands)

	Capitalized and purchased software balance - beginning of year	$	350			$	30		$	14
	Capitalized software development costs		250				440			54
	Amortization of capitalized software development costs		-600				-120			-38
	Capitalized and purchased software balance - end of year	$	-			$	350		$	30


Cash and Cash Equivalents	'
	Cash and Cash Equivalents

	Cash and cash equivalents include cash on hand, cash deposited with banks and highly liquid securities consisting of money market investments with original maturities of 90 days or less.

Concentration of Credit Risks and Major Customers	'
	Concentration of Credit Risks and Major Customers

	Financial instruments, which potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company’s cash is maintained with what management believes to be a high-credit quality financial institution. At times, deposits held at this bank may exceed the federally insured limits. Management believes that the financial institutions that hold the Company’s deposits are financially sound and have minimal credit risk. Risks associated with cash and cash equivalents are mitigated by the Company’s investment policy, which limits the Company’s investing of excess cash into only money market mutual funds.

	The Company licenses its products and services directly to end-users and indirectly to end-users through U.S. and non-U.S. distributors and other software resellers, under customary credit terms. One customer, Lifeboat Distribution, accounted for approximately 15%, 20% and 17% of total revenue for the years ended September 30, 2014, 2013 and 2012 respectively. Lifeboat Distribution accounted for approximately 13% and 11% of total accounts receivable for the years ended September 30, 2014 and 2013, respectively. In fiscal 2012, the Company consolidated its indirect distribution channels under Lifeboat Distribution. The Company’s current agreement with Lifeboat Distribution is scheduled to expire in early 2015 and, to manage the transition, the Company has refocused part of its Inside Sales Team to manage and pursue the book of business previously handled by Lifeboat.

	In addition to Lifeboat Distribution, one additional customer, Unisys Belgium, individually accounted for approximately 24% of total accounts receivable at September 30, 2012. Two additional customers, Xerox and Thomson Reuters, accounted for approximately 19% and 23%, respectively, of total accounts receivable at September 30, 2013. Other than these customers, no other customer constitutes a significant portion (more than 10%) of revenues or accounts receivable for the periods presented. The Company performs ongoing credit evaluations of its customers and generally does not require collateral.

Deferred Revenue	'
	Deferred Revenue

	Deferred revenue consisted of the following at September 30:



		2014			2013
		(In thousands)

	Maintenance	$	7,154		$	6,907
	License		108			69
	Other		244			235
	Total		7,506			7,211

	Less: Long-term portion of deferred maintenance		-105			-214

	Current portion of deferred revenue	$	7,401		$	6,997

	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 12 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.

Inventories	'
	Inventories

	Inventories consist of software components, primarily software licenses, manuals, compact disks and retail packaging materials. Inventories are valued at the lower of cost (first-in, first-out method) or market.

Property and Equipment	'
	Property and Equipment

	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 $158,000, $145,000 and 137,000, respectively, for the years ended September 30, 2014, 2013 and 2012.

Long-Lived Assets	'
	Long-Lived Assets

	The Company periodically evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful lives of long-lived assets and certain identifiable intangibles may warrant revision or that the carrying value of these assets may be impaired. If facts and circumstances indicate that an impairment may have occurred, the estimated undiscounted future cash flows for the estimated remaining useful life of the respective assets are compared to the carrying value. To the extent that the undiscounted future cash flows are less than the carrying value, the fair value of the asset is determined and an impairment is recognized. If such fair value is less than the current carrying value, the asset is written down to its estimated fair value.


Acquired Intellectual Property	'
	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 years ended September 30, 2014, 2013 and 2012, was approximately $2,777,000, $1,811,000 and $871,000, respectively.

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


	Fiscal Years Ending September 30,

	2015	$	2,777
	2016		2,777
	2017		1,905
	2018		1,053
	2019		1,053
	Thereafter		1,492
	Total estimated future amortization expense	$	11,057


Other Intangible Assets	'
	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 these intangible assets are amortized using the straight-line method over the estimated useful life of the related asset. 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. As of September 30, 2014, the Company does not have any long-lived assets it considers to be impaired.

	Other intangible assets, net, were comprised of the following at September 30, 2014 and 2013:





				30-Sep-14												30-Sep-13
		Weighted		Gross															Gross
	Identified Intangible	Average		Carrying				Accumulated					Net Carrying						Carrying		Accumulated		Net Carrying
	Asset	Useful Life		Amount				Amortization					Amount						Amount		Amortization		Amount
		(In years)		(In thousands)

	Capitalized software	1		$	1,880			$	1,880				$	-					$	1,630	$	1,280	$	350
	Patents	20			160				81					79						160		73		87
	Customer lists	14			8,990				2,047					6,943						8,990		1,401		7,589
	Trade names	3			120				52					68						120		4		116
	Loan acquisition costs	4			172				172					-						167		49		118

	Total			$	11,322			$	4,232				$	7,090					$	11,067	$	2,807	$	8,260

	The intangible asset amounts amortized to cost of software licenses totaled approximately $608,000, $128,000 and $46,000 for fiscal 2014, 2013 and 2012, respectively. Intangible asset amounts amortized to sales and marketing expense totaled approximately $646,000, $206,000 and $166,000 for fiscal 2014, 2013 and 2012, respectively. Intangible asset amounts amortized to general and administrative expense totaled approximately $48,000 and $4,000 for fiscal 2014 and 2013, respectively. There were no intangible assets amortized to general and administrative expense for fiscal 2012. Intangible asset amounts amortized to interest expense totaled approximately $123,000, $33,000 and $16,000 for fiscal 2014, 2013 and 2012, respectively.

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


	Fiscal Years Ending September 30,

	2015	$	702
	2016		605
	2017		488
	2018		488
	2019		488
	Thereafter		4,319
	Total estimated future amortization expense	$	7,090


Goodwill	'
	Goodwill and Indefinite-Lived Assets

	Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of acquired businesses. Indefinite-lived intangibles are intangible assets whose useful lives are indefinite in that their lives extend beyond the foreseeable horizon – that is there is no foreseeable limit on the period of time over which they are expected to contribute to the cash flows of the reporting entity. The Company accounts for these items in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350 Intangibles – Goodwill and Other. This requires that goodwill and intangible assets having indefinite lives are not amortized but instead are 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. Goodwill and assembled workforce are considered indefinite-lived intangibles. The Company conducts its annual impairment test for goodwill and indefinite-lived intangible assets during the fourth quarter of each fiscal year. In 2014, the Company conducted its annual goodwill impairment test on August 1, 2014. As of September 30, 2014, the Company does not have goodwill it considers to be impaired.


Fair Value Measurements	'
	Fair Value Measurements

	The Company’s financial instruments consist of cash and cash equivalents, accounts receivable and accounts 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 approximately $38,863,000 and $2,234,000 as of September 30, 2014 and 2013, respectively, within Level 2 of the fair value hierarchy.

	As of September 30, 2014 and 2013, the Company’s assets that are measured on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands):



		September 30, 2014									September 30, 2013
		Fair Value									Fair Value
		Measurement									Measurement
		Using Input Types									Using Input Types
		Level			Level			Level			Level			Level			Level
		1			2			3			1			2			3

	Assets:
	Money market funds	$			$	38,863		$	-		$	-		$	2,234		$	-
	Total	$	-		$	38,863		$	-		$	-		$	2,234		$	-



Income Taxes	'

	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	'
	Net (Loss) Income Per Share

	Basic net (loss) income per common share is computed by dividing net (loss) income 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):



		Years Ended September 30,
		2014			2013			2012

	Net (loss) income available to common shareholders	$	-22,383		$	-4,197		$	1,034

	Weighted-average number of common shares outstanding used in calculation of basic earnings per share		9,998,288			6,634,011			6,251,765
	Incremental shares from the assumed exercise of dilutive stock options		-			-			477,907
	Weighted-average number of common shares outstanding used in calculating diluted earnings per share		9,998,288			6,634,011			6,729,672


	As the Company was in a net loss position in fiscal 2014 and 2013, all common stock equivalents in the respective periods were anti-dilutive. As a result of being anti-dilutive, 11,059 shares and 239,451 shares for the years ended September 30, 2014 and 2013, respectively, were excluded in the calculation above.

Foreign Currency Translations and Transactions	'
	Foreign Currency Translations and Transactions

	The Company’s foreign subsidiaries functional currency is their local currency. As a result, 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 losses arising during fiscal 2014 and 2013 were approximately $342,000 and $162,000, respectively. Foreign currency translation gain arising during fiscal 2012 was approximately $82,000.

	Gains and losses resulting from transactions that are denominated in currencies other than the applicable unit’s functional currency are included in the operating results of the Company and were losses of approximately $76,000 $41,000, and $126,000 for the years ended September 30, 2014, 2013 and 2012, respectively.

Advertising and Promotional Materials	'
	Advertising and Promotional Materials

	Advertising costs are expensed as incurred and amounted to approximately $752,000, $290,000 and $9,000 in fiscal years 2014, 2013 and 2012, respectively.

Share-Based Compensation	'
	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.

Segment Information	'
	Segment Information and Revenue by Geographic Location

	The Company has determined that it has only one reportable segment. The Company’s chief operating decision maker, its Chief Executive Officer, does not manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and operating results. See Note 9 for information about the Company’s revenue by product lines and geographic operations.

Guarantees and Indemnifications	'
	Guarantees and Indemnifications

	The Company’s software products are sold under warranty against certain defects in material and workmanship for a period of 30 days from the date of purchase. The Company has never incurred significant expense under its product or service warranties and does not expect to do so in the future. As a result, the Company believes its exposure related to these warranty agreements is minimal. Accordingly, there are no liabilities recorded for warranty claims as of September 30, 2014 or 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 September 30, 2014 or 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 September 30, 2014 or 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 September 30, 2014 or 2013.

	Research and Development Costs

	Research and development costs are expenses as incurred.


Reclassifications	'
	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	'
	Recent Accounting Pronouncements

	In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU is the result of a joint project by the FASB and the International Accounting Standards Board (“IASB”) to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”) that would: remove inconsistencies and weaknesses, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices across entities, jurisdictions, industries, and capital markets, improve disclosure requirements and resulting financial statements, and simplify the presentation of financial statements. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is effective for annual reporting periods beginning after December 15, 2016. Early application is not permitted. The Company is currently assessing the impact of this guidance.
	The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its consolidated financial statements.

NATURE_OF_BUSINESS_AND_SUMMARY2

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2014
Schedule Of Allowance For Doubtful Accounts Receivable	'
	For the fiscal years ended September 30, 2014, 2013 and 2012, changes to and ending balances of the allowance for doubtful accounts were approximately as follows:




		2014			2013			2012
		(In thousands)

	Allowance for doubtful accounts balance - beginning of year	$	43		$	107		$	78
	Additions to the allowance for doubtful accounts		18			-			93
	Deductions against the allowance for doubtful accounts		-8			-64			-64
	Allowance for doubtful accounts balance - end of year	$	53		$	43		$	107


Schedule Of Sales Returns Reserve	'
	For the fiscal years ended September 30, 2014, 2013 and 2012, changes to and ending balances of the sales returns reserve were approximately as follows:


		2014			2013			2012
		(In thousands)

	Sales returns reserve balance - beginning of year	$	20		$	105		$	70
	Additions to the sales returns reserve		24			-			117
	Deductions against the sales returns reserve		-34			-85			-82
	Sales returns reserve balance - end of year	$	10		$	20		$	105


Schedule Of Capitalized And Purchased Software Development Costs	'
	For the fiscal years ended September 30, 2014, 2013 and 2012, amounts related to capitalized and purchased software development costs were approximately as follows:



		2014				2013			2012
		(In thousands)

	Capitalized and purchased software balance - beginning of year	$	350			$	30		$	14
	Capitalized software development costs		250				440			54
	Amortization of capitalized software development costs		-600				-120			-38
	Capitalized and purchased software balance - end of year	$	-			$	350		$	30


Schedule of Deferred Revenue	'
	Deferred revenue consisted of the following at September 30:



		2014			2013
		(In thousands)

	Maintenance	$	7,154		$	6,907
	License		108			69
	Other		244			235
	Total		7,506			7,211

	Less: Long-term portion of deferred maintenance		-105			-214

	Current portion of deferred revenue	$	7,401		$	6,997


Schedule of Other Intangible Assets, Net	'
	Other intangible assets, net, were comprised of the following at September 30, 2014 and 2013:





				30-Sep-14												30-Sep-13
		Weighted		Gross															Gross
	Identified Intangible	Average		Carrying				Accumulated					Net Carrying						Carrying		Accumulated		Net Carrying
	Asset	Useful Life		Amount				Amortization					Amount						Amount		Amortization		Amount
		(In years)		(In thousands)

	Capitalized software	1		$	1,880			$	1,880				$	-					$	1,630	$	1,280	$	350
	Patents	20			160				81					79						160		73		87
	Customer lists	14			8,990				2,047					6,943						8,990		1,401		7,589
	Trade names	3			120				52					68						120		4		116
	Loan acquisition costs	4			172				172					-						167		49		118

	Total			$	11,322			$	4,232				$	7,090					$	11,067	$	2,807	$	8,260


Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	'
	As of September 30, 2014 and 2013, the Company’s assets that are measured on a recurring basis and whose carrying values approximate their respective fair values include the following (in thousands):



		September 30, 2014									September 30, 2013
		Fair Value									Fair Value
		Measurement									Measurement
		Using Input Types									Using Input Types
		Level			Level			Level			Level			Level			Level
		1			2			3			1			2			3

	Assets:
	Money market funds	$			$	38,863		$	-		$	-		$	2,234		$	-
	Total	$	-		$	38,863		$	-		$	-		$	2,234		$	-


Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	'
	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):



		Years Ended September 30,
		2014			2013			2012

	Net (loss) income available to common shareholders	$	-22,383		$	-4,197		$	1,034

	Weighted-average number of common shares outstanding used in calculation of basic earnings per share		9,998,288			6,634,011			6,251,765
	Incremental shares from the assumed exercise of dilutive stock options		-			-			477,907
	Weighted-average number of common shares outstanding used in calculating diluted earnings per share		9,998,288			6,634,011			6,729,672



Intellectual Property [Member]	'
Schedule of Estimated Future Amortization Expense	'
	The estimated future amortization expense related to the acquired intellectual property is as follows (in thousands):


	Fiscal Years Ending September 30,

	2015	$	2,777
	2016		2,777
	2017		1,905
	2018		1,053
	2019		1,053
	Thereafter		1,492
	Total estimated future amortization expense	$	11,057


Other Intangible Assets [Member]	'
Schedule of Estimated Future Amortization Expense	'
	The estimated future amortization expense related to amortizing intangible assets is as follows (in thousands):


	Fiscal Years Ending September 30,

	2015	$	702
	2016		605
	2017		488
	2018		488
	2019		488
	Thereafter		4,319
	Total estimated future amortization expense	$	7,090

ACQUISITION_Tables

ACQUISITION (Tables)	12 Months Ended
ACQUISITION (Tables)	Sep. 30, 2014
Acquisition [Abstract]	'
Estimated Fair Value of Net Assets Acquired and Net Liabilities Acquired	'
	estimated fair value of net assets acquired and net liabilities acquired in the Panopticon transaction and reflects adjustments made in the period after the acquisition date to the amounts initially recorded in 2013 (the “Measurement Period Adjustments”).


		Amount

	Current assets	$	1,318
	Property, plant and equipment		2
	Other intangible assets		15,220
	Goodwill		28,383
	Obligations under deferred revenue		-189
	Accounts payable and accrued expenses		-756
	Deferred income taxes		-1,159
	Fair value of net assets acquired	$	42,819
	Less:
	Common stock issued	$	-42,644
	Seller financing		-175
	Cash and cash equivalents acquired		-383
	Net cash provided by acquisition	$	383


Schedule of Intangible Assets	'
	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


Pro Forma Financial Information Related to Acquisitions	'
	The following unaudited pro forma financial information reflects the combined results of operations for the fiscal years ended September 30, 2013 and September 30, 2012, assuming that Panopticon was acquired at the beginning of each respective fiscal period. This information does not necessarily reflect the results of operations that would have occurred had the acquisitions taken place at the beginning of the period, and is not necessarily indicative of the results which may be obtained in the future (in thousands, except per share data):




		September 30,
		2013		2012

	Total revenue	$	33,271	$	28,828
	Net income (loss)		-6,542		-2,639
	Net income (loss) per share
	Basic and diluted	$	-0.79	$	-0.33
	Number of weighted average shares
	Basic and diluted		8,322		8,117


Schedule of Changes in Goodwill	'
	The change in goodwill as of September 30, 2013 is as follows (in thousands):



	Balance at September 30, 2012	$	-
	Goodwill acquired		28,772
	Balance at September 30, 2013		28,772
	Measurement period adjustments		-389
	Balance at September 30, 2013, adjusted	$	28,383

ACCRUED_EXPENSES_Tables

ACCRUED EXPENSES (Tables)	12 Months Ended
ACCRUED EXPENSES (Tables)	Sep. 30, 2014
Accrued Expenses [Abstract]	'
Schedule of Accrued Expenses	'
	Accrued expenses consisted of the following at September 30, 2014 and 2013:




		September 30,
		2014		2013


	Royalties and commissions	$	1,158	$	1,483
	Payroll and related expenses		747		944
	Other		428		637
	Professional fees and consulting		551		417
	Total	$	2,884	$	3,481

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Schedule of Future Minimum Rental Payments for Operating Leases	'
	As of September 30, 2014, future minimum rental commitments under non-cancelable operating leases are as follows (in thousands):


	Years Ending September 30,

	2015		527
	2016		264
	2017		45
	2018		46
	2019		43
	Total future minimum lease payments	$	925

INCOME_TAXES_Tables

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Sep. 30, 2014
Income Taxes [Abstract]	'
Schedule of (Loss) Income from Operations Before Income Taxes	'
	(Loss) income from operations before income taxes consists of the following for the years ended September 30:




		2014		2013		2012
		(In thousands)

	Domestic	$	-17,533	$	-2,139	$	1,253
	Foreign		-5,369		-2,146		-169

	Total	$	-22,902	$	-4,285	$	1,084


Schedule of (Benefit) Provision for Income Taxes	'
	The (benefit) provision for income taxes consisted of the following for the years ended September 30:




		2014		2013		2012
		(In thousands)

	Current:
	Federal	$	-8	$	-4	$	4
	State		12		-1		21
	Foreign		-		-		25
			4		-5		50

	Deferred:
	Federal		-4,890		-1,070		-391
	State		-882		-293		-3
	Foreign		176		-83		-
	Change in valuation allowance		5,073		1,363		394
			-523		-83		-

	Total (benefit) provision	$	-519	$	-88	$	50


Components of the Company's Net Deferred Tax Assets	'
	The components of the Company’s net deferred tax assets are as follows at September 30:




		2014		2013		2012
		(In thousands)

	Deferred tax liabilities:
	Prepaid expenses	$	-234	$	-86	$	-47
	Acquired intangibles		-3,108		-3,456		-
			-3,342		-3,542		-47
	Deferred tax assets:
	Net operating loss carryforwards		13,063		8,124		5,493
	Research and development credits		1,099		1,120		778
	Alternative minimum tax credits		7		154		154
	Accounts and notes receivable reserves		40		40		105
	Depreciation and amortization		2,178		1,861		1,446
	Other		221		158		-300
			16,608		11,457		7,676

	Total		13,266		7,915		7,629

	Valuation allowance		-14,064		-8,991		-7,629

	Deferred tax liability, net	$	-798	$	-1,076	$	-


Reconciliation of the Company's Tax Provision Based on its Effective Tax Rate to its Tax Provision	'
	The following table reconciles the Company’s tax provision based on its effective tax rate to its tax provision based on the federal statutory rate of 34% for the years ended September 30, 2014, 2013 and 2012 (in thousands):




		2014		2013		2012
		(In thousands)

	Provision at federal statutory rate	$	-7,757	$	-1,457	$	369
	State, net of federal impact		-474		-303		14
	Foreign income taxes		-642		-268		-
	Valuation allowance increase		5,073		1,363		394
	Return to provision adjustments		48		3		-256
	Foreign rate change		394		39		-369
	Stock-based compensation		1,103		316		-
	NOL adjustment due to subsidiary liquidation		1,345		-		-
	Acquisition costs		59		339		-
	Change in uncertain tax positions		-386		7		25
	IRS Audit Adjustments		535		-		-
	Other		183		-127		-127

	(Benefit) provision for income taxes	$	-519	$	-88	$	50


Schedule of Unrecognized Tax Benefits	'
	The change in the unrecognized tax benefits during the fiscal year ended September 30, 2014 was as follows (in thousands):




	Balance at September 30, 2012	$	866
	Additions for prior year tax positions		132
	Balance at September 30, 2013		998
	Reductions for prior year tax positions		-678
	Balance at September 30, 2014	$	320

SHAREBASED_COMPENSATION_Tables

SHARE-BASED COMPENSATION (Tables)	12 Months Ended
SHARE-BASED COMPENSATION (Tables)	Sep. 30, 2014
Share-Based Compensation [Abstract]	'
Schedule of Share Based Expense Categories	'
	The following table presents share-based compensation expenses included in our audited condensed consolidated statements of operations (in thousands):



			Years Ended September 30,
			2014			2013			2012
			(In thousands)

	Sales and marketing		$	5,243		$	2,206		$	528
	Engineering and product development			1,585			442			43
	Professional services			143			17			-
	General and administrative			1,475			658			308
	Total		$	8,446		$	3,323		$	879


Schedule of Key Assumptions Used in the Option Valuation Calculations for Options Granted	'
	The table below indicates the key assumptions used in the option valuation calculations for options granted for the year ended September 30, 2013:



				2013

	Expected life				5 Years
	Expected volatility				72.95	%
	Weighted-average volatility				72.95	%
	Risk-free interest rate				0.71	%
	Dividend yield				-	%


Schedule of Stock Option Activity	'
	The following table is a summary of combined activity for all of the Company’s stock option plans:

					Weighted-			Weighted-
					Average			Average		Aggregate
					Exercise			Remaining		Intrinsic
			Number of		Price			Life		Value
			Options		Per Share			(In years)		(In thousands)

	Outstanding, September 30, 2011		459,662		$	3.46		4.13		$	872
	Granted		-			-		-			-
	Canceled/Forfeited		-4,000			2.68		-			70
	Exercised		-100,328			2.60		-			778
	Outstanding, September 30, 2012		355,334			3.71		3.94		$	5,883
	Granted		75,000			12.92		6.56			1,124
	Canceled/Forfeited		-125			2.79		-			3
	Exercised		-67,000			2.93		-			1,039
	Outstanding, September 30, 2013		363,209			5.76		4.33		$	8,042
	Granted		-			-		-			-
	Canceled/Forfeited		-			-		-			-
	Exercised		-42,709			4.18		-			719
	Outstanding, September 30, 2014		320,500		$	5.97		3.74		$	1,572

	Exercisable, September 30, 2014		276,745		$	4.87		3.46		$	1,572
	Expected to vest, September 30, 2014		39,379		$	12.92		5.56		$	-


Schedule of Weighted-Average Price and Life Information Regarding Options Outstanding and Exercisable	'
	The following table presents weighted-average price and life information regarding options outstanding and exercisable at September 30, 2014:



	Outstanding													Exercisable
								Weighted-Average				Weighted-				Weighted-
								Remaining				Average				Average
	Exercise				Number of			Contractual				Exercise				Exercise
	Prices				Shares			Life (Years)				Price		Shares		Price

		$1.61 – $2.79				13,000			2.24			$	2.27		13,000	$	2.27
		$3.22 – $4.55				170,000			3.11				3.51		170,000		3.51
		$4.88 – $5.62				62,500			3.6				5.10		62,500		5.10
		$12.92				75,000			5.56				12.92		31,245		12.92

						320,500			3.74			$	5.97		276,745	$	4.87


Schedule of Nonvested Restricted Stock Units Activity	'
	Included in the total number of RSUs unvested at September 30, 2014 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 four years of the grant date		*	77,312
	$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		*	41,843
	$17.50 per share prior to three years of the grant date		*	106,002
	$20.00 per share prior to four years of the grant date		*	4,334
	$22.50 per share prior to four years of the grant date		*	5,834
	$22.50 per share prior to three years of the grant date		*	117,004
	$22.50 per share prior to two and one-half years of the grant date		*	62,674
	No further trading vesting condition			295,008
	Unvested RSUs, September 30, 2014			740,011


Schedule of Nonvested RSU Information	'
	The following table presents nonvested RSU information for the fiscal years ended September 30, 2012, 2013 and 2014:


			Number of
			RSUs
			Outstanding

	Nonvested, September 30, 2011			294,344
	Granted			294,900
	Canceled/Forfeited			-28,501
	Vested			-96,159
	Nonvested, September 30, 2012			464,584
	Granted			793,732
	Canceled/Forfeited			-16,003
	Vested			-185,617
	Nonvested, September 30, 2013			1,056,696
	Granted			300,500
	Canceled/Forfeited			-97,835
	Vested			-519,350
	Nonvested, September 30, 2014			740,011

SEGMENT_INFORMATION_AND_REVENU1

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION (Tables)	12 Months Ended
	Sep. 30, 2014
Segment Information and Revenue by Geographic Location [Abstract]	'
Schedule of Revenues by Product Line	'
	The Company has determined that it has only one reportable segment. The following table presents information about the Company’s revenues by product line for the years ended September 30:



		2014				2013				2012

	Visual Data Discovery Solutions		98	%			97	%			95	%
	Business Service Management Solutions		2	%			3	%			5	%

	Total		100	%			100	%			100	%


Schedule of Segment Reporting Information, by Segment	'
	The Company conducts operations in the U.S. and internationally. The following table presents information about the Company’s geographic operations (in thousands):


								Intercompany
		Domestic			International			Eliminations			Total

	Total Revenue
	Year ended September 30, 2014	$	30,055		$	8,153		$	-3,121		$	35,087
	Year ended September 30, 2013	$	27,127		$	4,047		$	-878		$	30,296
	Year ended September 30, 2012	$	22,915		$	3,958		$	-867		$	26,006

	Total Operating (Loss) Income
	Year ended September 30, 2014	$	-16,252		$	-5,396		$	-17		$	-21,665
	Year ended September 30, 2013	$	-1,471		$	-2,346		$	-		$	-3,817
	Year ended September 30, 2012	$	2,497		$	-954		$	-		$	1,543

	Total Long-Lived Assets
	At September 30, 2014	$	47,135		$	137		$	-		$	47,272
	At September 30, 2013	$	51,301		$	102		$	-		$	51,403

QUARTERLY_RESULTS_Tables

QUARTERLY RESULTS (Tables)	12 Months Ended
QUARTERLY RESULTS (Tables)	Sep. 30, 2014
Quarterly Results [Abstract]	'
Schedule of Quarterly Financial Information	'
	Supplementary Information:




		First		Second		Third		Fourth
		(In thousands, except per share amounts)

	Year Ended September 30, 2014:
	Software license revenue	$	5,433	$	4,375	$	5,580	$	5,239
	Maintenance revenue		2,993		3,127		3,236		3,489
	Professional services revenue		383		498		412		322
	Cost of software licenses		990		1,024		999		1,000
	Cost of maintenance and services		849		634		979		889
	Expenses		12,427		12,233		12,368		12,360
	Loss from operations		-5,457		-5,891		-5,118		-5,199
	Net loss		-5,614		-6,737		-5,157		-4,875

	Net loss per share – basic	$	-0.66	$	-0.7	$	-0.48	$	-0.4
	Net loss per share – diluted	$	-0.66	$	-0.7	$	-0.48	$	-0.4

	Year Ended September 30, 2013:
	Software license revenue	$	4,330	$	4,297	$	5,007	$	5,796
	Maintenance revenue		2,333		2,300		2,409		2,658
	Professional services revenue		158		234		411		363
	Cost of software licenses		521		531		549		904
	Cost of maintenance and services		530		565		602		743
	Expenses		5,820		6,213		7,196		9,939
	Loss from operations		-50		-478		-520		-2,769
	Net loss		-222		-626		-666		-2,683

	Net loss per share – basic	$	-0.03	$	-0.1	$	-0.1	$	-0.4
	Net loss per share – diluted	$	-0.03	$	-0.1	$	-0.1	$	-0.4

	Year Ended September 30, 2012:
	Software license revenue	$	4,208	$	4,274	$	4,699	$	3,619
	Maintenance revenue		1,717		1,861		2,106		2,218
	Professional services revenue		346		412		368		178
	Cost of software licenses		575		659		509		527
	Cost of maintenance and services		668		684		668		510
	Expenses		4,396		4,899		5,263		5,105
	Income (loss) from operations		632		305		733		-127
	Net income (loss)		603		160		548		-277

	Net income (loss) per share - basic	$	0.10	$	0.03	$	0.09	$	-0.04
	Net income (loss) per share - diluted	$	0.09	$	0.02	$	0.08	$	-0.04

NATURE_OF_BUSINESS_AND_SUMMARY3

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $)	1 Months Ended	12 Months Ended
	Mar. 31, 2012	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Gain on disposition of investment	'	'	$374,000	'
License sales to distributors and resellers as percentage of total revenue	'	44.00%	45.00%	31.00%
Warranty liabilities	'	0	0	'
Depreciation and amortization expense	'	158,000	145,000	137,000
Conversion gains and (losses) on foreign investments	'	-76,000	-41,000	-126,000
Capitalized software development costs	'	250,000	440,000	54,000
Purchase price for intellectual property assets	'	'	15,220,000	'
Antidilutive shares	'	11,059	239,451	'
Foreign currency translation gain	'	'	'	82,000
Foreign currency translation losses	'	342,000	162,000	'
Advertising expense	'	752,000	290,000	9,000
Capitalized closing costs and adjustments	75,000	'	'	'
Indemnification Agreement [Member]	'	'	'	'
Loss liability	'	0	0	'
Intellectual Property [Member]	'	'	'	'
Amortization of intangible assets	'	2,777,000	1,811,000	871,000
Purchase price for intellectual property assets	8,541,000	'	7,900,000	'
Capitalized Software [Member]	'	'	'	'
Useful life	'	'1 year	'	'
Patents [Member]	'	'	'	'
Useful life	'	'20 years	'	'
Customer Lists [Member]	'	'	'	'
Useful life	'	'14 years	'	'
Selling and Marketing [Member]	'	'	'	'
Amortization of intangible assets	'	646,000	206,000	166,000
General and Administrative [Member]	'	'	'	'
Amortization of intangible assets	'	48,000	4,000	0
Interest Expense [Member]	'	'	'	'
Amortization of intangible assets	'	123,000	33,000	16,000
Software Licenses [Member]	'	'	'	'
Product warranty period	'	'30 days	'	'
Amortization of intangible assets	'	608,000	128,000	46,000
Minimum [Member]	'	'	'	'
Property and equipment useful lives	'	'3 years	'	'
Minimum [Member] \| Intellectual Property [Member]	'	'	'	'
Useful life	'	'5 years	'	'
Minimum [Member] \| Capitalized Software [Member]	'	'	'	'
Capitalized computer software amortization period	'	'9 months	'	'
Maximum [Member]	'	'	'	'
Property and equipment useful lives	'	'7 years	'	'
Maximum [Member] \| Intellectual Property [Member]	'	'	'	'
Useful life	'	'7 years 6 months	'	'
Maximum [Member] \| Capitalized Software [Member]	'	'	'	'
Capitalized computer software amortization period	'	'18 months	'	'
Money Market Funds [Member]	'	'	'	'
Total assets at fair value	'	$38,863,000	$2,234,000	'
Unisys Belgium [Member]	'	'	'	'
Number of major customers	'	'	'	2
Unisys Belgium [Member] \| Accounts Receivable [Member]	'	'	'	'
Concentration risk, percentage	'	'	'	24.00%
Xerox [Member] \| Accounts Receivable [Member]	'	'	'	'
Concentration risk, percentage	'	'	19.00%	'
Thomson Reuters [Member] \| Accounts Receivable [Member]	'	'	'	'
Concentration risk, percentage	'	'	23.00%	'
Lifeboat Distribution [Member]	'	'	'	'
Number of major customers	'	1	'	'
Lifeboat Distribution [Member] \| Sales Revenue, Net [Member]	'	'	'	'
Concentration risk, percentage	'	15.00%	20.00%	17.00%
Lifeboat Distribution [Member] \| Accounts Receivable [Member]	'	'	'	'
Concentration risk, percentage	'	13.00%	11.00%	'
Xerox and Thomson Reuters [Member] \| Accounts Receivable [Member]	'	'	'	'
Number of major customers	'	'	3	'

NATURE_OF_BUSINESS_AND_SUMMARY4

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Allowance For Doubtful Accounts Receivable) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Nature of Business and Summary of Significant Accounting Policies [Abstract]	'	'	'
Allowance for doubtful accounts balance - beginning of year	$43	$107	$78
Additions to the allowance for doubtful accounts	18	'	93
Deductions against the allowance for doubtful accounts	-8	-64	-64
Allowance for doubtful accounts balance - end of year	$53	$43	$107

NATURE_OF_BUSINESS_AND_SUMMARY5

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Sales Returns Reserve) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Nature of Business and Summary of Significant Accounting Policies [Abstract]	'	'	'
Sales returns reserve balance - beginning of year	$20	$105	$70
Additions to the sales returns reserve	24	'	117
Deductions against the sales returns reserve	-34	-85	-82
Sales returns reserve balance - end of year	$10	$20	$105

NATURE_OF_BUSINESS_AND_SUMMARY6

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Capitalized And Purchased Software Development Costs) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Nature of Business and Summary of Significant Accounting Policies [Abstract]	'	'	'
Capitalized and purchased software balance - beginning of year	$350	$30	$14
Capitalized software development costs	250	440	54
Amortization of capitalized software development costs and purchased software	-600	-120	-38
Capitalized and purchased software balance - end of year	'	$350	$30

NATURE_OF_BUSINESS_AND_SUMMARY7

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Deferred Revenue) (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Deferred revenue	$7,506	$7,211
Less: Long-term portion of deferred maintenance	-105	-214
Current portion of deferred revenue	7,401	6,997
Maintenance Revenue [Member]	'	'
Deferred revenue	7,154	6,907
License [Member]	'	'
Deferred revenue	108	69
Other Revenue [Member]	'	'
Deferred revenue	$244	$235

NATURE_OF_BUSINESS_AND_SUMMARY8

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Future Amortization Expense Related to the Acquired Intellectual Property) (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Total estimated future amortization expense	$7,090	$8,260
Intellectual Property [Member]	'	'
2015	2,777	'
2016	2,777	'
2017	1,905	'
2018	1,053	'
2019	1,053	'
Thereafter	1,492	'
Total estimated future amortization expense	$11,057	'

NATURE_OF_BUSINESS_AND_SUMMARY9

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Other Intangible Assets, Net) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Gross Carrying Amount	$11,322	$11,067
Accumulated Amortization	4,232	2,807
Net Carrying Amount	7,090	8,260
Capitalized Software [Member]	'	'
Useful life	'1 year	'
Gross Carrying Amount	1,880	1,630
Accumulated Amortization	1,880	1,280
Net Carrying Amount	'	350
Patents [Member]	'	'
Useful life	'20 years	'
Gross Carrying Amount	160	160
Accumulated Amortization	81	73
Net Carrying Amount	79	87
Customer Lists [Member]	'	'
Useful life	'14 years	'
Gross Carrying Amount	8,990	8,990
Accumulated Amortization	2,047	1,401
Net Carrying Amount	6,943	7,589
Trademarks [Member]	'	'
Useful life	'3 years	'
Gross Carrying Amount	120	120
Accumulated Amortization	52	4
Net Carrying Amount	68	116
Loan Acquisition Costs [Member]	'	'
Useful life	'4 years	'
Gross Carrying Amount	172	167
Accumulated Amortization	172	49
Net Carrying Amount	'	$118

Recovered_Sheet1

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Future Amortization Expense) (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Total estimated future amortization expense	$7,090	$8,260
Other Intangible Assets [Member]	'	'
2015	702	'
2016	605	'
2017	488	'
2018	488	'
2019	488	'
Thereafter	4,319	'
Total estimated future amortization expense	$7,090	'

Recovered_Sheet2

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Money Market Funds [Member]	'	'
Total assets at fair value	$38,863,000	$2,234,000
Fair Value, Inputs, Level 2 [Member]	'	'
Total assets at fair value	38,863,000	2,234,000
Fair Value, Inputs, Level 2 [Member] \| Money Market Funds [Member]	'	'
Total assets at fair value	$38,863,000	$2,234,000

Recovered_Sheet3

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) (USD $)

3 Months Ended

12 Months Ended

In Thousands, except Share data, unless otherwise specified

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2012

Nature of Business and Summary of Significant Accounting Policies [Abstract]

Net (loss) income available to common shareholders

($4,875)

($5,157)

($6,737)

($5,614)

($2,683)

($666)

($626)

($222)

($277)

$548

$160

$603

($22,383)

($4,197)

$1,034

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

9,998,288

6,634,011

6,251,765

Incremental shares from the assumed exercise of dilutive stock options

477,907

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

9,998,288

6,634,011

6,729,672

ACQUISITION_Narrative_Details

ACQUISITION (Narrative) (Details) (USD $)	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended
	Sep. 30, 2013	Aug. 28, 2013	Sep. 30, 2013	Aug. 28, 2013	Sep. 30, 2014	Aug. 28, 2013
		Panopticon [Member]	Panopticon [Member]	Panopticon [Member]	Panopticon [Member]	Panopticon [Member]
				Common Stock [Member]	Common Stock [Member]	Restricted Stock Units (RSUs) [Member]
Business Acquisition [Line Items]	'	'	'	'	'	'
Acquisition agreement date	'	14-Jun-13	'	'	'	'
Acquisition date	'	28-Aug-13	'	'	'	'
Purchase consideration, seller financing	'	$175,000	'	'	'	'
Purchase consideration, common shares issued	'	'	'	1,866,716	'	'
Business acquisition, shares held back for indemnification obligations	'	'	'	216,994	'	'
Business acquisition, period for shares held back for indemnification obligations	'	'	'	'	'15 months	'
Business acquisition, restricted stock issued to employees	'	'	'	'	'	86,231
Business acquisition, fair value of consideration issued	'	42,644,000	'	'	'	'
Business acquisition, share price of consideration issued	'	$23.12	'	'	'	'
Acquisition related costs	1,000,000	'	'	'	'	'
Decrease in goodwill	'	'	389,000	'	'	'
Increase in tax assets	'	'	407,000	'	'	'
Decrease in income taxes payable	'	'	($18,000)	'	'	'

ACQUISITIONS_Estimated_Fair_Va

ACQUISITIONS (Estimated Fair Value of Net Assets Acquired and Net Liabilities Acquired) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Acquisition [Abstract]	'
Current assets	$1,318
Property, plant and equipment	2
Other intangible assets	15,220
Goodwill	28,383
Obligations under deferred revenue	-189
Accounts payable and accrued expenses	-756
Deferred income taxes	-1,159
Fair value of net assets acquired	42,819
Common stock issued	-42,644
Seller financing	-175
Cash and cash equivalents acquired	-383
Net cash provided by acquisition	$383

ACQUISITION_Schedule_of_Intang

ACQUISITION (Schedule of Intangible Assets) (Details) (USD $)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Intangible assets	'	$15,220,000
Customer Relationships [Member]	'	'
Intangible assets	'	7,200,000
Estimated Lives	'15 years	'
Developed Technology Rights [Member]	'	'
Intangible assets	'	7,900,000
Estimated Lives	'7 years 6 months	'
Trade Names [Member]	'	'
Intangible assets	'	$120,000
Estimated Lives	'2 years 6 months	'

ACQUISITIONS_Pro_Forma_Financi

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

ACQUISITION_Schedule_of_Change

ACQUISITION (Schedule of Changes in Goodwill) (Details) (Panopticon [Member], USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Panopticon [Member]	'
Goodwill [Line Items]	'
Goodwill acquired	$28,772
Measurement period adjustments	-389
Goodwill, ending balance	28,772
Goodwill, ending balance, adjusted	$28,383

ACCRUED_EXPENSES_Details

ACCRUED EXPENSES (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Accrued Expenses [Abstract]	'	'
Royalties and commissions	$1,158	$1,483
Payroll and related expenses	747	944
Other	428	637
Professional fees and consulting	551	417
Total	$2,884	$3,481

FINANCING_ARRANGEMENTS_Narrati

FINANCING ARRANGEMENTS (Narrative) (Details) (USD $)

0 Months Ended

12 Months Ended

14 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

4 Months Ended

24 Months Ended

12 Months Ended

Aug. 17, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2012

Feb. 19, 2014

Aug. 15, 2013

Sep. 30, 2013

Sep. 30, 2014

Aug. 15, 2013

Sep. 30, 2014

Aug. 15, 2013

Mar. 30, 2012

Aug. 14, 2013

Mar. 29, 2014

Sep. 30, 2013

Mar. 30, 2012

Mar. 29, 2014

Aug. 15, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Mar. 30, 2012

Amendment to SVB Agreement [Member]

Massachusetts Capital Resource Company ("MCRC") [Member]

Subordinated Debt [Member]

Revolving Credit Facility [Member]

Term Loan Advance [Member]

Note Warrant [Member]

Prime Rate [Member]

Amendment To MCRC Agreement [Member]

Massachusetts Capital Resource Company ("MCRC") [Member]

Silicon Valley Bank [Member]

Massachusetts Capital Resource Company ("MCRC") [Member]

Arrears [Member]

Prime Rate [Member]

Debt Instrument [Line Items]

Line of credit, maximum borrowing capacity

$2,000,000

Line of credit outstanding

900,000

1,500,000

Basis spread on variable interest rate

2.50%

1.50%

Interest rate minimum

3.25%

Interest rate maximum

10.00%

Interest rate

3.25%

8.00%

10.00%

Term loan advance outstanding

1,945,000

Accrued interest

9,000

Debt face amount

4,000,000

2,000,000

Warrants

185,000

Debt instrument maturity date

28-Feb-19

Original period of loan subject to interest rate premiums on optional redemption of principal payments

'3 years

Monthly principal payments

66,667

Debt terms

'The subordinated note issued to MCRC had 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 contained 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 would have made principal payments of $66,667 per month. The Company was also required under the MCRC agreement to maintain certain interest coverage and leverage ratios.

Debt redemption face amount

2,000,000

Debt repaid

2,000,000

Interest rate premium on principal payments

3.00%

Debt interest payment

23,000

Payment of debt instrument discount (premium)

-60,000

Warrant exercise price

11.54

Period of average common stock price used for warrant exercise price

'45 days

Warrants fair value

1,096,000

Share Price

$28.50

Expected life (years)

'5 years

'7 years

Expected volatility

72.95%

68.18%

Risk-free interest rate

0.71%

1.61%

Dividend yield

0.00%

Interest expense

406,000

682,000

339,000

65,000

157,000

Loss on extinguishment of debt

($795,000)

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Commitments and Contingencies [Abstract]	'	'	'
Rental expense for operating leases	$954,000	$545,000	$454,000
Royalty expense	$416,000	$194,000	$1,161,000

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Future Minimum Rental Commitments for Operating Leases) (Details) (USD $)	Sep. 30, 2014
In Thousands, unless otherwise specified	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
2015	$527
2016	264
2017	45
2018	46
2019	43
Total future minimum lease payments	$925

INCOME_TAXES_Narrative_Details

INCOME TAXES (Narrative) (Details) (USD $)	12 Months Ended
INCOME TAXES (Narrative) (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Operating Loss Carryforwards [Line Items]	'	'	'
Alternative minimum tax credits	$7,000	$154,000	$154,000
Research and development credits	1,099,000	1,120,000	778,000
Effective tax rate	34.00%	34.00%	34.00%
Deferred tax liability, net	798,000	1,076,000	'
Cumulative tax liability	335,000	'	'
Decrease in tax liability	678,000	'	'
Increase (decrease) in tax credit carryforwards	-535,000	'	'
Unrecognized tax benefits	320,000	998,000	866,000
Accrued interest and penalties in the period	8,000	'	'
Interest and penalties accrued	20,000	'	'
Share-Based Compensation Plan [Member]	'	'	'
Operating Loss Carryforwards [Line Items]	'	'	'
Tax loss carryforwards	7,668,000	'	'
Federal [Member]	'	'	'
Operating Loss Carryforwards [Line Items]	'	'	'
Research and development credits	754,000	'	'
Tax loss carryforwards	27,020,000	'	'
State (Member)	'	'	'
Operating Loss Carryforwards [Line Items]	'	'	'
Research and development credits	522,000	'	'
Tax loss carryforwards	11,863,000	'	'
United Kingdom [Member]	'	'	'
Operating Loss Carryforwards [Line Items]	'	'	'
Tax loss carryforwards	3,482,000	'	'
Australia [Member]	'	'	'
Operating Loss Carryforwards [Line Items]	'	'	'
Tax loss carryforwards	3,814,000	'	'
Germany [Member]	'	'	'
Operating Loss Carryforwards [Line Items]	'	'	'
Tax loss carryforwards	2,000,000	'	'
Singapore [Member]	'	'	'
Operating Loss Carryforwards [Line Items]	'	'	'
Tax loss carryforwards	2,339,000	'	'
Sweden [Member]	'	'	'
Operating Loss Carryforwards [Line Items]	'	'	'
Deferred tax liability, net	798,000	'	'
Tax loss carryforwards	10,500,000	'	'
Panopticon [Member] \| Federal [Member]	'	'	'
Operating Loss Carryforwards [Line Items]	'	'	'
Tax loss carryforwards	$182,000	'	'

INCOME_TAXES_Schedule_of_Loss_

INCOME TAXES (Schedule of (Loss) Income from Operations Before Income Taxes) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Income Taxes [Abstract]	'	'	'
Domestic	($17,533)	($2,139)	$1,253
Foreign	-5,369	-2,146	-169
Total	($22,902)	($4,285)	$1,084

INCOME_TAXES_Schedule_of_Benef

INCOME TAXES (Schedule of (Benefit) Provision for Income Taxes) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Income Taxes [Abstract]	'	'	'
Current Federal	($8)	($4)	$4
Current State	12	-1	21
Current Foreign	'	'	25
Current provision	4	-5	50
Deferred Federal	-4,890	-1,070	-391
Deferred State	-882	-293	-3
Deferred Foreign	176	-83	'
Change in valuation allowance	5,073	1,363	394
Deferred provision	-523	-83	'
Total (benefit) provision	($519)	($88)	$50

INCOME_TAXES_Components_of_the

INCOME TAXES (Components of the Company's Net Deferred Tax Assets) (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Deferred tax liabilities:	'	'	'
Prepaid expenses	($234,000)	($86,000)	($47,000)
Acquired intangibles	-3,108,000	-3,456,000	'
Deferred tax liabilities	-3,342,000	-3,542,000	-47,000
Deferred tax assets:	'	'	'
Net operating loss carryforwards	13,063,000	8,124,000	5,493,000
Research and development credits	1,099,000	1,120,000	778,000
Alternative minimum tax credits	7,000	154,000	154,000
Accounts and notes receivable reserves	40,000	40,000	105,000
Depreciation and amortization	2,178,000	1,861,000	1,446,000
Other	221,000	158,000	-300,000
Deferred tax assets	16,608,000	11,457,000	7,676,000
Total	13,266,000	7,915,000	7,629,000
Valuation allowance	-14,064,000	-8,991,000	-7,629,000
Deferred tax liability, net	($798,000)	($1,076,000)	'

INCOME_TAXES_Reconciliation_of

INCOME TAXES (Reconciliation of the Company's Tax Provision Based on its Effective Tax Rate to its Tax Provision) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Income Taxes [Abstract]	'	'	'
Provision at federal statutory rate	($7,757)	($1,457)	$369
State, net of federal impact	-474	-303	14
Foreign income taxes	-642	-268	'
Valuation allowance increase	5,073	1,363	394
Return to provision adjustments	48	3	-256
Foreign rate change	394	39	-369
Stock-based compensation	1,103	316	'
NOL adjustment due to subsidiary liquidation	1,345	'	'
Acquisition Costs	59	339	'
Change in uncertain tax positions	-386	7	25
IRS audit adjustments	535	'	'
Other	183	-127	-127
Total (benefit) provision	($519)	($88)	$50

INCOME_TAXES_Changes_in_Unreco

INCOME TAXES (Changes in Unrecognized Tax Benefits) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Income Taxes [Abstract]	'	'
Beginning balance	$998	$866
Additions for prior year tax positions	-678	132
Ending balance	$320	$998

SHAREBASED_COMPENSATION_Narrat

SHARE-BASED COMPENSATION (Narrative) (Details) (USD $)	12 Months Ended			0 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Apr. 22, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	2011 Plan [Member]	2011 Plan [Member]	Minimum [Member]	Maximum [Member]	Restricted Stock Units (RSUs) [Member]	Restricted Stock Units (RSUs) [Member]	Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'	'	'	'	'
Award vesting period	'3 years	'	'	'	'	'	'	'	'	'
Award expiration period	'	'	'	'	'	'7 years	'10 years	'	'	'
Stock options granted	0	75,000	'	'	'	'	'	'	'	'
Intrinsic value of options exercised	$719,000	$1,039,000	$778,000	'	'	'	'	'	'	'
Proceeds from exercise of stock options	179,000	198,000	261,000	'	'	'	'	'	'	'
Tax benefit realized from stock options exercised	24,000	61,000	'	'	'	'	'	'	'	'
Unrecognized compensation cost from non-vested stock options	268,000	'	'	'	'	'	'	'	'	'
Unrecognized compensation cost from non-vested awards, weighted-average period	'1 year 6 months 22 days	'	'	'	'	'	'	'1 year 10 months 2 days	'	'
Dividend yield	0.00%	'	'	'	'	'	'	'	'	'
Estimated forfeiture rate	10.00%	'	'	'	'	'	'	'	'	'
Additional shares authorized for plan	'	'	'	700,000	'	'	'	'	'	'
Shares authorized for equity compensation plan	'	'	'	'	2,275,392	'	'	'	'	'
Shares available for future issuance under plan	'	'	'	'	643,224	'	'	'	'	'
Number of unvested units	'	'	'	'	'	'	'	740,011	'	'
Annual unit vesting rate	'	'	'	'	'	'	'	33.33%	'	'
Restricted stock units for which the vesting conditions have been fulfilled	'	'	'	'	'	'	'	445,003	'	'
Fair value of awards granted	'	'	'	'	'	'	'	6,004,000	14,602,000	3,100,000
Weighted average share price of options granted	'	$7.61	'	'	'	'	'	'	'	'
Weighted average share price of awards granted	'	'	'	'	'	'	'	$19.98	$18.40	$10.61
Compensation expense for awards	'	'	'	'	'	'	'	8,181,000	3,085,000	709,000
Unrecognized compensation costs related to awards	'	'	'	'	'	'	'	$11,015,000	'	'

SHAREBASED_COMPENSATION_ShareB

SHARE-BASED COMPENSATION (Share-Based Employee Compensation Expenses) (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Share-based compensation expense	$8,446	$3,323	$879
Selling and Marketing [Member]	'	'	'
Share-based compensation expense	5,243	2,206	528
Engineering and Product Development [Member]	'	'	'
Share-based compensation expense	1,585	442	43
Professional Services [Member]	'	'	'
Share-based compensation expense	143	17	'
General and Administrative [Member]	'	'	'
Share-based compensation expense	$1,475	$658	$308

SHAREBASED_COMPENSATION_Schedu

SHARE-BASED COMPENSATION (Schedule of Key Assumptions Used in the Option Valuation Calculations for Options Granted) (Details)	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Share-Based Compensation [Abstract]	'	'
Expected life (years)	'	'5 years
Expected volatility	'	72.95%
Weighted-average volatility	'	72.95%
Risk-free interest rate	'	0.71%
Dividend yield	0.00%	'

SHAREBASED_COMPENSATION_Stock_

SHARE-BASED COMPENSATION (Stock Option Plan Activity) (Details) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2011
Share-Based Compensation [Abstract]	'	'	'	'
Number of options outstanding, beginning balance	363,209	355,334	459,662	'
Number of options outstanding, granted	0	75,000	'	'
Number of options outstanding, canceled/forfeited	'	-125	-4,000	'
Number of options outstanding, exercised	-42,709	-67,000	-100,328	'
Number of options outstanding, ending balance	320,500	363,209	355,334	459,662
Number of options outstanding, expected to vest	39,379	'	'	'
Number of options outstanding, exercisable	276,745	'	'	'
Weighted - average exercise price, beginning balance	$5.76	$3.71	$3.46	'
Weighted - average exercise price, granted	'	$12.92	'	'
Weighted - average exercise price, canceled/forfeited	'	$2.79	$2.68	'
Weighted - average exercise price, exercised	$4.18	$2.93	$2.60	'
Weighted - average exercise price, ending balance	$5.97	$5.76	$3.71	$3.46
Weighted - average exercise price, expected to vest	$12.92	'	'	'
Weighted - average exercise price, exercisable	$4.87	'	'	'
Weighted - average remaining contractual life, beginning balance, (years)	'3 years 8 months 27 days	'4 years 3 months 29 days	'3 years 11 months 9 days	'4 years 1 month 17 days
Weighted - average remaining contractual life, granted (years)	'	'6 years 6 months 22 days	'	'
Weighted - average remaining contractual term, expected to vest, (years)	'5 years 6 months 22 days	'	'	'
Weighted - average remaining contractual life, ending balance, (years)	'3 years 8 months 27 days	'4 years 3 months 29 days	'3 years 11 months 9 days	'4 years 1 month 17 days
Weighted - average remaining contractual term, exercisable, (years)	'3 years 5 months 16 days	'	'	'
Aggregate intrinsic value, beginning balance	$8,042	$5,883	$872	'
Aggregate intrinsic value, granted	'	1,124	'	'
Aggregate intrinsic value, canceled/forfeited	'	3	70	'
Aggregate intrinsic value, exercised	719	1,039	778	'
Aggregate intrinsic value, exercisable	1,572	'	'	'
Aggregate intrinsic value, ending balance	1,572	8,042	5,883	872
Aggregate intrinsic value, expected to vest	'	'	'	'

SHAREBASED_COMPENSATION_Schedu1

SHARE-BASED COMPENSATION (Schedule of Weighted-Average Price and Life Information Regarding Options Outstanding and Exercisable) (Details) (USD $)	12 Months Ended
	Sep. 30, 2014
Outstanding, Number Of Shares	320,500
Weighted - average remaining contractual life (years)	'3 years 8 months 27 days
Outstanding, Weighted-Average Exercise Price	$5.97
Exercisable, Shares	276,745
Exercisable, Weighted-Average Exercise Price	$4.87
$1.61 - $2.79 [Member]	'
Outstanding, Exercise Prices, lower range limit	$1.61
Outstanding, Exercise Prices, upper range limit	$2.79
Outstanding, Number Of Shares	13,000
Weighted - average remaining contractual life (years)	'2 years 2 months 27 days
Outstanding, Weighted-Average Exercise Price	$2.27
Exercisable, Shares	13,000
Exercisable, Weighted-Average Exercise Price	$2.27
$3.22 - $4.55 [Member]	'
Outstanding, Exercise Prices, lower range limit	$3.22
Outstanding, Exercise Prices, upper range limit	$4.55
Outstanding, Number Of Shares	170,000
Weighted - average remaining contractual life (years)	'3 years 1 month 10 days
Outstanding, Weighted-Average Exercise Price	$3.51
Exercisable, Shares	170,000
Exercisable, Weighted-Average Exercise Price	$3.51
$4.88 - $5.62 [Member]	'
Outstanding, Exercise Prices, lower range limit	$4.88
Outstanding, Exercise Prices, upper range limit	$5.62
Outstanding, Number Of Shares	62,500
Weighted - average remaining contractual life (years)	'3 years 7 months 6 days
Outstanding, Weighted-Average Exercise Price	$5.10
Exercisable, Shares	62,500
Exercisable, Weighted-Average Exercise Price	$5.10
$12.92 [Member]	'
Outstanding, Exercise Prices, upper range limit	$12.92
Outstanding, Number Of Shares	75,000
Weighted - average remaining contractual life (years)	'5 years 6 months 22 days
Outstanding, Weighted-Average Exercise Price	$12.92
Exercisable, Shares	31,245
Exercisable, Weighted-Average Exercise Price	$12.92

SHAREBASED_COMPENSATION_Schedu2

SHARE-BASED COMPENSATION (Schedule of Restricted Stock Units) (Details) (Restricted Stock Units (RSUs) [Member], USD $)	12 Months Ended
	Sep. 30, 2014
Number of restricted stock units subject to vesting conditions	740,011
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	17.5
Four Years [Member] \| Ten Dollar Per Share Market Price [Member]	'
Number of restricted stock units subject to vesting conditions	77,312
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	41,843
Trading vesting conditions, restricted stock unit	17.5
Four Years [Member] \| Twenty Dollar Per Share Market Price [Member]	'
Number of restricted stock units subject to vesting conditions	4,334
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	5,834
Trading vesting conditions, restricted stock unit	22.5
Three Years [Member] \| Seventeen Dollars And Fifty Cents Per Share Market Price [Member]	'
Number of restricted stock units subject to vesting conditions	106,002
Trading vesting conditions, restricted stock unit	17.5
Three Years [Member] \| Twenty Two Dollars And Fifty Cents Per Share Market Price [Member]	'
Number of restricted stock units subject to vesting conditions	117,004
Trading vesting conditions, restricted stock unit	22.5
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	62,674
Trading vesting conditions, restricted stock unit	22.5
No Vesting [Member]	'
Number of restricted stock units subject to vesting conditions	295,008

SHAREBASED_COMPENSATION_Nonves

SHARE-BASED COMPENSATION (Nonvested RSU Information) (Details) (Restricted Stock Units (RSUs) [Member])	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Restricted Stock Units (RSUs) [Member]	'	'	'
Number of RSUs outstanding, nonvested, beginning balance	1,056,696	464,584	294,344
Number of RSUs outstanding, granted	300,500	793,732	294,900
Number of RSUs outstanding, canceled/forfeited	-97,835	-16,003	-28,501
Number of RSUs outstanding, vested	-519,350	-185,617	-96,159
Number of RSUs outstanding, nonvested, ending balance	740,011	1,056,696	464,584

ISSUANCE_OF_COMMON_STOCK_Narra

ISSUANCE OF COMMON STOCK (Narrative) (Details) (USD $)	0 Months Ended	12 Months Ended
ISSUANCE OF COMMON STOCK (Narrative) (Details) (USD $)	Feb. 19, 2014	Sep. 30, 2014
Issuance of Common Stock [Abstract]	'	'
Shares issued in public offering	2,018,250	'
Share price	$28.50	'
Underwriters' over-allotment options	263,250	'
Proceeds from public offering	$53,628,000	$53,628,000

SEGMENT_INFORMATION_AND_REVENU2

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION (Schedule of Revenues by Product Line) (Details) (Product Concentration Risk [Member])	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Concentration risk, percentage	100.00%	100.00%	100.00%
Visual Data Discovery [Member]	'	'	'
Concentration risk, percentage	98.00%	97.00%	95.00%
Business Service Management Solutions [Member]	'	'	'
Concentration risk, percentage	2.00%	3.00%	5.00%

SEGMENT_INFORMATION_AND_REVENU3

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION (Schedule of Segment Reporting Information, by Segment) (Details) (USD $)

3 Months Ended

12 Months Ended

In Thousands, unless otherwise specified

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2012

segment

Number of reportable segments

Revenue

$35,087

$30,296

$26,006

Operating income (loss)

-5,199

-5,118

-5,891

-5,457

-2,769

-520

-478

-50

-127

733

305

632

-21,665

-3,817

1,543

Long-lived assets

47,272

51,403

47,272

51,403

Domestic [Member]

Revenue

30,055

27,127

22,915

Operating income (loss)

-16,252

-1,471

2,497

Long-lived assets

47,135

51,301

47,135

51,301

International [Member]

Revenue

8,153

4,047

3,958

Operating income (loss)

-5,396

-2,346

-954

Long-lived assets

137

102

137

102

Intersubsegment Eliminations [Member]

Revenue

-3,121

-878

-867

Operating income (loss)

($17)

QUARTERLY_RESULTS_Details

QUARTERLY RESULTS (Details) (USD $)	3 Months Ended												12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Quarterly Results [Abstract]	'	'	'	'	'	'	'	'	'	'	'	'	'	'	'
Software license revenue	$5,239	$5,580	$4,375	$5,433	$5,796	$5,007	$4,297	$4,330	$3,619	$4,699	$4,274	$4,208	$20,627	$19,430	$16,800
Maintenance revenue	3,489	3,236	3,127	2,993	2,658	2,409	2,300	2,333	2,218	2,106	1,861	1,717	12,845	9,700	7,902
Professional services revenue	322	412	498	383	363	411	234	158	178	368	412	346	1,615	1,166	1,304
Cost of software licenses	1,000	999	1,024	990	904	549	531	521	527	509	659	575	4,013	2,505	2,270
Cost of maintenance and services	889	979	634	849	743	602	565	530	510	668	684	668	3,351	2,440	2,530
Expenses	12,360	12,368	12,233	12,427	9,939	7,196	6,213	5,820	5,105	5,263	4,899	4,396	'	'	'
Income (loss) from operations	-5,199	-5,118	-5,891	-5,457	-2,769	-520	-478	-50	-127	733	305	632	-21,665	-3,817	1,543
Net income (loss)	($4,875)	($5,157)	($6,737)	($5,614)	($2,683)	($666)	($626)	($222)	($277)	$548	$160	$603	($22,383)	($4,197)	$1,034
Net income (loss) per share - basic (in dollars per share)	($0.40)	($0.48)	($0.70)	($0.66)	($0.40)	($0.10)	($0.10)	($0.03)	($0.04)	$0.09	$0.03	$0.10	($2.24)	($0.63)	$0.17
Net income (loss) per share - diluted (in dollars per share)	($0.40)	($0.48)	($0.70)	($0.66)	($0.40)	($0.10)	($0.10)	($0.03)	($0.04)	$0.08	$0.02	$0.09	($2.24)	($0.63)	$0.15