Datawatch (DWCH) 10-Q 29 Jul 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Jul. 24, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	DATAWATCH CORP
Entity Central Index Key	792,130
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,515,592
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 36,319	$ 47,668
Accounts receivable, net of allowance for doubtful accounts and sales returns of $44 and $63 as of June 30, 2015 and September 30, 2014, respectively	6,382	7,024
Prepaid expenses and other current assets	2,013	1,633
Total current assets	44,714	56,325
Property and equipment, net	589	400
Acquired intellectual property, net	4,476	11,057
Other intangible assets, net	1,346	7,090
Goodwill and indefinite-lived assets	6,685	28,383
Deferred tax asset, net	2,114	239
Other long-term assets	342	103
Total assets	60,266	103,597
CURRENT LIABILITIES:
Accounts payable	1,192	925
Accrued expenses	3,042	2,884
Deferred revenue	7,132	7,401
Deferred tax liability, current	239	239
Total current liabilities	11,605	11,449
LONG-TERM LIABILITIES:
Deferred revenue, long-term	179	105
Deferred tax liability, noncurrent		798
Other long-term liabilities	342	335
Total long-term liabilities	521	1,238
Total liabilities	$ 12,126	$ 12,687
COMMITMENTS AND CONTINGENCIES (Note 6)
SHAREHOLDERS' EQUITY:
Common stock, par value $0.01; authorized: 20,000,000 shares; issued and outstanding: 11,731,752 shares and 11,500,512 shares, respectively, as of June 30, 2015 and 11,289,098 shares and 11,057,858 shares, respectively, as of September 30, 2014	$ 116	$ 114
Additional paid-in capital	139,025	134,960
Accumulated deficit	(89,212)	(42,404)
Accumulated other comprehensive loss	(1,649)	(1,620)
Shareholders' equity before treasury stock	48,280	91,050
Less treasury stock, at cost, 14,246 shares	(140)	(140)
Total shareholders' equity	48,140	90,910
Total liabilities and shareholders' equity	$ 60,266	$ 103,597

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts and sales returns	$ 44	$ 63
Commom stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	11,731,752	11,289,098
Common stock, shares outstanding	11,500,512	11,057,858
Treasury shares	14,246	14,246

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUE:
Software licenses		$ 4,117	$ 5,580	$ 11,203	$ 15,387
Maintenance		3,311	3,236	10,016	9,357
Professional services		348	412	980	1,293
Total revenues		7,776	9,228	22,199	26,037
COSTS AND EXPENSES:
Cost of software licenses		697	999	2,293	3,013
Cost of maintenance and services	[1]	557	979	2,519	2,462
Sales and marketing	[1]	6,513	8,241	21,303	23,198
Engineering and product development	[1]	1,988	1,942	6,698	6,830
General and administrative	[1]	2,204	2,185	6,779	7,000
Impairment of goodwill and long-lived assets				32,009
Total costs and expenses		11,959	14,346	71,601	42,503
LOSS FROM OPERATIONS		(4,183)	(5,118)	(49,402)	(16,466)
Interest expense					(406)
Other income (expense)			4	9	(755)
Foreign currency transaction gain (loss)		(36)	10	(47)	(152)
LOSS FROM OPERATIONS BEFORE INCOME TAXES		(4,219)	(5,104)	(49,440)	(17,779)
Income tax expense (benefit)		(96)	53	(2,632)	(270)
NET LOSS		$ (4,123)	$ (5,157)	$ (46,808)	$ (17,509)
Net loss per share - basic: (in dollars per share)		$ (0.36)	$ (0.48)	$ (4.14)	$ (1.81)
Net loss per share - diluted: (in dollars per share)		$ (0.36)	$ (0.48)	$ (4.14)	$ (1.81)
Weighted-average shares outstanding - basic (in shares)		11,448	10,826	11,307	9,654
Weighted-average shares outstanding - diluted (in shares)		11,448	10,826	11,307	9,654
Share-based compensation		$ 1,486	$ 1,686	$ 4,025	$ 6,505
Cost of Maintenance and Services [Member]
COSTS AND EXPENSES:
Share-based compensation		17	25	47	91
Selling and Marketing [Member]
COSTS AND EXPENSES:
Share-based compensation		946	1,204	2,506	3,731
Engineering and Product Development [Member]
COSTS AND EXPENSES:
Share-based compensation		125	136	337	1,493
General and Administrative [Member]
COSTS AND EXPENSES:
Share-based compensation		$ 398	$ 321	$ 1,135	$ 1,190
[1]	Includes share-based compensation as follows:Cost of maintenance and services$17$ 25$47$91Sales and marketing 9461,204 2,506 3,731Engineering and product development 125136 337 1,493General and administrative 398321 1,1351,190$ 1,486$ 1,686$ 4,025$6,505

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,123)	$ (5,157)	$ (46,808)	$ (17,509)
Other comprehensive (loss) income:
Foreign currency translation adjustments	76	(51)	(29)	26
Comprehensive loss	$ (4,047)	$ (5,208)	$ (46,837)	$ (17,483)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (46,808)	$ (17,509)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	2,221	3,189
Share-based compensation expense	4,025	6,505
Non-cash interest expense		187
Loss on extinguishment of debt		795
Deferred income taxes	(2,672)	(330)
Impairment of goodwill and long-lived assets	32,009
Changes in operating assets and liabilities:
Accounts receivable	568	(516)
Prepaid expenses and other assets	(669)	(108)
Accounts payable, accrued expenses and other liabilities	547	(851)
Deferred revenue	(135)	(10)
Cash used in operating activities	(10,914)	(8,648)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capitalized software development costs		(250)
Purchases of property and equipment	(400)	(162)
Cash used in investing activities	(400)	(412)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance costs		53,629
Proceeds from exercise of stock options	58	88
Repayments on debt		(3,944)
Repayments on line of credit		(900)
Capitalized debt issuance costs		(5)
Cash provided by financing activities	58	48,868
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(93)	48
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(11,349)	39,856
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	47,668	10,312
CASH AND CASH EQUIVALENTS, END OF PERIOD	36,319	50,168
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid		169
Income taxes paid	$ 38	$ 98

DECRIPTION OF BUSINESS

DECRIPTION OF BUSINESS	9 Months Ended
	Jun. 30, 2015
Decription of Business [Abstract]
Decription of Business	NOTE 1. DESCRIPTION OF BUSINESS Datawatch Corporation (the “Company” or “Datawatch”) designs, develops, markets and distributes 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.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2015
Basis of Presentation [Abstract]
Basis of Presentation	NOTE 2. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of Datawatch and its wholly-owned subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2014 filed with the SEC. All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements for the fiscal year ended September 30, 2014 , and include all adjustments necessary for fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. 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.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Jun. 30, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	NOTE 3. 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 and cash equivalents, accounts receivable and accounts 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 $29.4 million and $38.9 million as of June 30, 2015 and September 30, 2014 , respectively, within Level 2 of the fair value hierarchy. As of June 30, 2015 and September 30, 2014 , 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): June 30, 2015 September 30, 2014 Fair Value Measurement Fair Value Measurement Using Input Types Using Input Types Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Money market funds $ - $ $ - $ - $ $ - Total $ - $ $ - $ - $ $ - Non-financial assets such as goodwill and long-lived assets are also subject to non-recurring fair value measurements if they are deemed to be impaired. The impairment models used for nonfinancial assets depend on the type of asset and are accounted for in accordance with FASB’s guidance on fair value measurement. The fair value measurements for these non-financial assets were calculated using a discounted cash flow approach, which includes unobservable inputs classified as Level 3 within the fair value hierarchy. See Note 4 for additional discussion regarding the fair value methods used for these assets. The amount and timing of future cash flows was based on the Company’s most recent operational forecasts. The Company uses the assistance of an independent consulting firm to develop valuation assumptions. See Notes 4 and 5 for additional discussion regarding the impairment of goodwill and long-lived assets. As of June 30, 2015 and September 30, 2014 , the Company’s assets that are measured on a non-recurring basis include the following (in thousands): June 30, 2015 September 31, 2014 Fair Value Measurement Fair Value Measurement Using Input Types Using Input Types Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Acquired intellectual property, net $ - $ - $ $ - $ - $ Other intangible assets, net - - - - Goodwill and indefinite-lived assets - - - - Total $ - $ - $ $ - $ - $

IMPAIRMENT OF GOODWILL AND INDE

IMPAIRMENT OF GOODWILL AND INDEFINITE-LIVED ASSETS	9 Months Ended
	Jun. 30, 2015
Impairment of Goodwill and Long-Lived Assets [Abstract]
Impairment of Goodwill and Indefinite-Lived Assets	NOTE 4: IMPAIRMENT OF 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 , which requires that i mpairment testing for goodwill is performed at least annually at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (also known as a component). The Company has determined that it is comprised of only one reporting unit. We perform our annual impairment test as of July 31st. Goodwill is also tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Examples of these events or circumstances include: · A significant adverse long term outlook; · Unanticipated competition or the introduction of a disruptive technology; · Failure of an anticipated product or product line; · The testing for recoverability under the ASC 360-10 Impairment or Disposal of Long-Lived Assets of a significant asset group; · A loss of key personnel; and · An expectation that a significant portion of the Company will be sold or otherwise disposed of. The impairment test for goodwill uses a two-step approach. Step one compares the fair value of the reporting unit to its carrying value including goodwill. If the carrying value exceeds the fair value, there is a potential impairment and step two must be performed. Step two compares the carrying value of the reporting unit's goodwill to its implied value (i.e., the fair value of the reporting unit less the fair value of the unit's assets and liabilities, including identifiable intangible assets). If the carrying value of goodwill exceeds its implied value, the excess is recorded as an impairment. During the three months ended December 31, 2014, the Company identified several events, that when combined, were determined to require an interim impairment test. These events consisted of a material decrease in revenue compared to prior year and compared to the prior quarter which resulted in a decision to pre-release earnings information; necessary operational changes within the Sales Organization which drove a shift in our sales approach; and a sustained decrease in share price. Under Step 1 of the impairment test the Company determined fair value based on discounted cash flows using an income approach with the multi-period excess earnings method which estimates the fair value of the asset by discounting the future projected excess earnings associated with the asset to present value as of the valuation date. Based on the analysis, it was determined that the carrying value of the Company including goodwill exceeded the fair value, requiring us to perform Step 2 of the goodwill impairment test to measure the amount of impairment loss, if any. The Company then performed Step 2 of the impairment test, noting fair value of the long-lived assets (other than goodwill), of $3.0 million, was less than the carrying amount of those assets and, as a result, recorded a non-cash, pre-tax impairment charge of $10.3 million during the quarter ended December 31, 2014 (see Note 5). The Company then determined the implied value of goodwill was $ 6.7 million, which was less than its carrying value and, as a result, the Company recognized a non-cash, pre-tax charge of $21.7 million during the quarter ended December 31, 2014 and nine months ended June 30, 2015 . These impairment charges are included under the caption "Impairment of goodwill and long-lived assets" in our consolidated statements of operations. The valuation methods utilized to value the long-lived assets and the goodwill discussed above are based on the amount and timing of expected future cash flows and growth rates and include a determination of an appropriate discount rate. The cash flows utilized in the discounted cash flow analyses were based on financial forecasts developed internally by management. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized. Determining the fair value using a discounted cash flow method requires significant estimates and assumptions, including market conditions, discount rates, and long-term projections of cash flows. The Company’s estimates are based upon historical experience, current market trends, projected future volumes and other information. The Company believes that the estimates and assumptions underlying the valuation methodology are reasonable; however, different estimates and assumptions could result in a different estimate of fair value. In estimating future cash flows, the Company relies on internally generated projections for a defined time period for revenue and operating profits, including capital expenditures, changes in net working capital, and adjustments for non-cash items to arrive at the free cash flow available to invested capital. Where applicable, a terminal value utilizing a constant growth rate of cash flows is used to calculate a terminal value after the explicit projection period. The future projected cash flows for the discrete projection period and the terminal value are discounted at a risk adjusted discount rate to determine the fair value of the reporting unit. The following table presents the changes in the carrying amount of our goodwill for the nine months ended June 30, 2015 (in thousands): Balance at September 30, 2014 $ Goodwill impairment Balance at June 30, 2015 $

LONG-LIVED ASSETS

LONG-LIVED ASSETS	9 Months Ended
	Jun. 30, 2015
Impairment of Goodwill and Long-Lived Assets [Abstract]
Long-Lived Assets	NOTE 5: LONG-LIVED ASSETS 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. During the three months ended December 31, 2014, as a result of an interim impairment test of goodwill and long-lived assets (see Note 4), the Company recorded an impairment charge of $4.3 million for the intellectual property acquired from Panopticon and $6.0 million for the customer lists acquired from Panopticon. During the three months ended March 31, 2015, the Company reclassified $0.6 million of the impairment charge between the acquired intellectual property and the customer lists. The overall impairment charge of $10.3 million remained unchanged and the total intangible values also remained unchanged between December 31, 2014 and June 30, 2015 as a result of the reclassification. Acquired Intellectual Property In fiscal 2013, the Company acquired intellectual property from Panopticon totaling $7.9 million. 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 of seven and a half years. The following table presents the changes in the carrying amount of the intellectual property acquired from Panopticon, which is included under the caption “Acquired intellectual property, net” in our consolidated balance sheets, for the nine months ended June 30, 2015 (in thousands): Gross Net Carrying Accumulated Carrying Amount Amortization Amount Balance at September 30, 2014 $ $ $ Impairment charge - Amortization expense - Balance at June 30, 2015 $ $ $ Other Intangible Assets Other intangible assets consist of trade names, patents and customer lists acquired from Panopticon. The values allocated to these intangible assets are amortized using the straight-line method over the estimated useful life of the related asset. Other intangible assets at June 30, 2015 and September 30, 2014 consist of the following (in thousands): June 30, 2015 Identified Weighted Gross Intangible Average Carrying Impairment Accumulated Net Carrying Asset Useful Life Amount Charge Amortization Amount (In years) Patents 20 $ $ - $ $ Customer lists 14 Trade names 3 - Total $ $ $ $ September 30, 2014 Identified Weighted Gross Intangible Average Carrying Impairment Accumulated Net Carrying Asset Useful Life Amount Charge Amortization Amount (In years) Patents 20 $ $ - $ $ Customer lists 14 - Trade names 3 - Total $ $ - $ $

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	NOTE 6. 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 2022 . The lease agreements generally provide for the payment of minimum annual rentals and pro-rata share of taxes and maintenance expenses. Rental expense for all operating leases was $0.3 and $0.2 million for the three months ended June 30, 2015 and 2014 , respectively, and $0.8 million and $0.7 million for the nine months ended June 30, 2015 and 2014 , respectively. Certain of the Company's facility leases include options to renew. During the three months ended June 30, 2015 , the Company entered into a facility lease in Bedford, MA for new corporate headquarters. The lease is for 20,360 square feet commencing November 1, 2015 and ending on October 31, 2022 with a monthly expense of $42,000 . The Company anticipates moving into the new facility during the first quarter of fiscal 2016 and anticipates recording a $0.1 million charge, which represents the remaining lease obligation under the lease agreement for the current corporate headquarters in Chelmsford, MA, upon the cease-use date of the existing corporate headquarters. In conjunction with entering into the lease, the Company was required to deposit $0.2 million into a restricted cash account as collateral for a Letter of Credit, which is included under the caption “ Other long-term assets ” in our consolidated balance sheets, for the period ended June 30, 2015 . Royalties Royalty expense included in cost of software licenses was $0.2 million and $0.1 million for the three mont h s ended June 30, 2015 and 2014 , respectively, and $0.4 million and $0.3 million for the nine months ended June 30, 2015 and 2014 , respectively. Minimum royalty obligations were insignificant for the three and nine mont h s ended June 30, 2015 and 2014 . 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.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	9 Months Ended
	Jun. 30, 2015
Restructuring Charges [Abstract]
Restructuring Charges	NOTE 7. RESTRUCTURING CHARGES Plans initiated during the first fiscal quarter of 2015 During the three months ended December 31, 2014, the Company initiated a restructuring plan to lower expense structure by reducing the investment in legacy solutions and the realignment of international operations, primarily impacting engineering and product development. The planned action began during the first fiscal quarter and continued during the second fiscal quarter when the remaining employees impacted by the plan were notified. The Company recorded restructuring charges related to workforce reductions including severance and related benefit costs of $0.4 million during the three months ended December 31, 2014, $0.3 million during the three months ended March 31, 2015, and an immaterial amount during the three months ended June 30, 2015. Plans initiated during the second fiscal quarter of 2015 During the three months ended March 31, 2015, the Company initiated a restructuring plan to reduce the workforce by nearly 15% across all functional areas of the Company in an effort to rebalance investments to match the go-to-market model. The Company completed all restructuring actions associated with this plan during the three months ended March 31, 2015, and recorded restructuring charges of $0.9 million during the three months ended March 31, 2015 related to workforce reductions including severance and related benefit costs, and an additional $27,000 during the three months ended June 30, 2015. No additional amounts are expected to be incurred in future periods. The following table presents the changes in the accrual for restructuring charges, which is included under the caption “Accrued expenses” in our consolidated balance sheets, as of June 30, 2015 (in thousands): Plan initiated during Q1 FY15 Q2 FY15 Total Balance at September 30, 2014 $ - $ - $ - Charges Payments Balance at June 30, 2015 $ $ $ The following table presents restructuring charges included in our unaudited consolidated statements of operations for the three and nine months ended June 30, 2015 (in thousands): Three Months Ended Nine Months Ended June 30, 2015 June 30, 2015 Plan initiated during Plan initiated during 1st Quarter 2nd Quarter Total 1st Quarter 2nd Quarter Total Cost of maintenance and services $ - $ $ $ $ $ Sales and marketing - Engineering and product development General and administrative - $ $ $ $ $ $

INCOME TAXES

INCOME TAXES	9 Months Ended
	Jun. 30, 2015
Income Taxes [Abstract]
Income Taxes	NOTE 8. INCOME TAXES During the three months ended June 30, 2015 , the Company recorded a tax benefit of $0.1 , primarily related to the change in the deferred tax asset in Sweden as a result of generating losses, estimated state taxes, return to provision adjustments, and accruing interest on uncertain tax positions. During the three months ended June 30, 2014 , the Company recorded a tax expense of $0.1 , primarily related to losses generated in Sweden, estimated state taxes, return to provision adjustments, and accrued interest and penalties on uncertain tax positions. During the nine months ended June 30, 2015 , the Company recorded a tax benefit of $2.6 million, primarily related to the change in the deferred tax liability in Sweden as a result of impairing non-goodwill intangibles and amortization, estimated state taxes, return to provision adjustments, and accruing interest on uncertain tax positions. During the nine months ended June 30, 2014 , the Company recorded a tax benefit of $0.3 million, primarily related to losses generated in Sweden, estimated state taxes, return to provision adjustments, and accrued interest and penalties on uncertain tax positions. The Company’s deferred tax assets include net operating loss carry forwards and tax credits that expire at different times through and until 2034. 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 June 30, 2015 and September 30, 2014 . At September 30, 2014 , the Company had a cumulative tax liability of $0.3 million related to uncertain tax positions for Federal, state, and foreign tax exposure that could result in cash payments. There were no significant changes to the Company’s uncertain tax positions during the nine months ended June 30, 2015 . The Company does not expect its tax liability to change significantly during the next twelve months.

CALCULATION OF EARNINGS PER SHA

CALCULATION OF EARNINGS PER SHARE	9 Months Ended
	Jun. 30, 2015
Calculation of Earnings per Share [Abstract]
Calculation of Earnings per Share	NOTE 9. CALCULATION OF EARNINGS PER SHARE Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income or loss by the weighted-average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the purposes of this calculation, stock options are considered common equivalents in periods in which they have a dilutive effect. Stock options that are anti-dilutive are excluded from the calculation. The following table presents the computation basic and diluted net loss per share attributable to common shareholders (in thousands, except per share data): Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Net loss $ $ $ $ Weighted-average number of common shares outstanding Net loss per share For the three and nine months ended June 30, 2015 and 2014 all common stock equivalents in the respective periods were anti-dilutive as a result of the Company’s net loss position. As such, 242,200 shares and 563,738 shares, have not been included in the calculation of basic or diluted net loss per share for the three months ended June 30, 2015 and 2014 , respectively and 272,700 shares and 883,891 shares for the nine months ended June 30, 2015 and 2014 , respectively.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Jun. 30, 2015
Share-Based Compensation [Abstract]
Share-Based Compensation	NOTE 10. 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. All awards granted during the nine months ended June 30, 2015 were granted under our 2011 Plan. At June 30, 2015 , there were 399,833 shares available for future issuance under the 2011 Plan. Generally, options and other stock rights are granted at exercise prices not less than the fair market value at the date of grant. All of the Company’s share-based awards are accounted for as equity instruments and there have been no liability awards granted. Share-based compensation expense for all share-based payment awards is measured based on the grant-date fair value of the award and recognized on a straight-line basis over the requisite period of the award. 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 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 Options Price Per Share Life (In years) Value (In thousands) Outstanding, September 30, 2014 $ $ Granted - - - - Canceled/Forfeited - - - - Exercised Outstanding, June 30, 2015 $ $ Exercisable, June 30, 2015 $ $ Unvested awards expected to vest, June 30, 2015 $ $ - Restricted Stock Units The following table presents nonvested RSU information for the nine months ended June 30, 2015 : Number of RSUs Outstanding Nonvested, September 30, 2014 Granted Canceled/Forfeited Vested Nonvested, June 30, 2015

SEGMENT INFORMATION AND REVENUE

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION	9 Months Ended
	Jun. 30, 2015
Segment Information and Revenue by Geographic Location [Abstract]
Segment Information and Revenue by Geographic Location	NOTE 11. SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION The Company operates its business as one operating segment and 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 Three months ended June 30, 2015 $ $ $ $ Three months ended June 30, 2014 $ $ $ $ Nine months ended June 30, 2015 $ $ $ $ Nine months ended June 30, 2014 $ $ $ $ Total Operating Loss Three months ended June 30, 2015 $ $ $ $ Three months ended June 30, 2014 $ $ $ $ Nine months ended June 30, 2015 $ $ $ $ Nine months ended June 30, 2014 $ $ $ $ Total Long-Lived Assets At June 30, 2015 $ $ $ - $ At September 30, 2014 $ $ $ - $

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Jun. 30, 2015
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	NOTE 12. 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. On July 9, 2015, the FASB voted to delay the effective date of the new revenue standard by one year, but to permit entities to choose to adopt the standard as of the original effective date. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. 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.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Jun. 30, 2015
Fair Value Measurements [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	As of June 30, 2015 and September 30, 2014 , 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): June 30, 2015 September 30, 2014 Fair Value Measurement Fair Value Measurement Using Input Types Using Input Types Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Money market funds $ - $ $ - $ - $ $ - Total $ - $ $ - $ - $ $ -
Assets Measured on a Non-Recurring Basis	As of June 30, 2015 and September 30, 2014 , the Company’s assets that are measured on a non-recurring basis include the following (in thousands): June 30, 2015 September 31, 2014 Fair Value Measurement Fair Value Measurement Using Input Types Using Input Types Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Acquired intellectual property, net $ - $ - $ $ - $ - $ Other intangible assets, net - - - - Goodwill and indefinite-lived assets - - - - Total $ - $ - $ $ - $ - $

IMPAIRMENT OF GOODWILL AND IN20

IMPAIRMENT OF GOODWILL AND INDEFINITE-LIVED ASSETS (Tables)	9 Months Ended
	Jun. 30, 2015
Impairment of Goodwill and Long-Lived Assets [Abstract]
Changes in the Carrying Amount of Goodwill	The following table presents the changes in the carrying amount of our goodwill for the nine months ended June 30, 2015 (in thousands): Balance at September 30, 2014 $ Goodwill impairment Balance at June 30, 2015 $

LONG-LIVED ASSETS (Tables)

LONG-LIVED ASSETS (Tables)	9 Months Ended
	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Other Intangible Assets	Other intangible assets at June 30, 2015 and September 30, 2014 consist of the following (in thousands): June 30, 2015 Identified Weighted Gross Intangible Average Carrying Impairment Accumulated Net Carrying Asset Useful Life Amount Charge Amortization Amount (In years) Patents 20 $ $ - $ $ Customer lists 14 Trade names 3 - Total $ $ $ $ September 30, 2014 Identified Weighted Gross Intangible Average Carrying Impairment Accumulated Net Carrying Asset Useful Life Amount Charge Amortization Amount (In years) Patents 20 $ $ - $ $ Customer lists 14 - Trade names 3 - Total $ $ - $ $
Panopticon [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Other Intangible Assets	The following table presents the changes in the carrying amount of the intellectual property acquired from Panopticon, which is included under the caption “Acquired intellectual property, net” in our consolidated balance sheets, for the nine months ended June 30, 2015 (in thousands): Gross Net Carrying Accumulated Carrying Amount Amortization Amount Balance at September 30, 2014 $ $ $ Impairment charge - Amortization expense - Balance at June 30, 2015 $ $ $

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	9 Months Ended
	Jun. 30, 2015
Restructuring Charges [Abstract]
Schedule of Changes in the Accrual for Restructuring Charges	The following table presents the changes in the accrual for restructuring charges, which is included under the caption “Accrued expenses” in our consolidated balance sheets, as of June 30, 2015 (in thousands): Plan initiated during Q1 FY15 Q2 FY15 Total Balance at September 30, 2014 $ - $ - $ - Charges Payments Balance at June 30, 2015 $ $ $
Restructuring Charges Included in our Unaudited Consolidated Statements of Operations	The following table presents restructuring charges included in our unaudited consolidated statements of operations for the three and nine months ended June 30, 2015 (in thousands): Three Months Ended Nine Months Ended June 30, 2015 June 30, 2015 Plan initiated during Plan initiated during 1st Quarter 2nd Quarter Total 1st Quarter 2nd Quarter Total Cost of maintenance and services $ - $ $ $ $ $ Sales and marketing - Engineering and product development General and administrative - $ $ $ $ $ $

CALCULATION OF EARNINGS PER S23

CALCULATION OF EARNINGS PER SHARE (Tables)	9 Months Ended
	Jun. 30, 2015
Calculation of Earnings per Share [Abstract]
Schedule of Earnings Per Share	The following table presents the computation basic and diluted net loss per share attributable to common shareholders (in thousands, except per share data): Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Net loss $ $ $ $ Weighted-average number of common shares outstanding Net loss per share

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Jun. 30, 2015
Share-Based Compensation [Abstract]
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 Options Price Per Share Life (In years) Value (In thousands) Outstanding, September 30, 2014 $ $ Granted - - - - Canceled/Forfeited - - - - Exercised Outstanding, June 30, 2015 $ $ Exercisable, June 30, 2015 $ $ Unvested awards expected to vest, June 30, 2015 $ $ -
Schedule of Nonvested RSU Information	The following table presents nonvested RSU information for the nine months ended June 30, 2015 : Number of RSUs Outstanding Nonvested, September 30, 2014 Granted Canceled/Forfeited Vested Nonvested, June 30, 2015

SEGMENT INFORMATION AND REVEN25

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION (Tables)	9 Months Ended
	Jun. 30, 2015
Segment Information and Revenue by Geographic Location [Abstract]
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 Three months ended June 30, 2015 $ $ $ $ Three months ended June 30, 2014 $ $ $ $ Nine months ended June 30, 2015 $ $ $ $ Nine months ended June 30, 2014 $ $ $ $ Total Operating Loss Three months ended June 30, 2015 $ $ $ $ Three months ended June 30, 2014 $ $ $ $ Nine months ended June 30, 2015 $ $ $ $ Nine months ended June 30, 2014 $ $ $ $ Total Long-Lived Assets At June 30, 2015 $ $ $ - $ At September 30, 2014 $ $ $ - $

FAIR VALUE MEASUREMENTS (Narrat

FAIR VALUE MEASUREMENTS (Narrative) (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value	$ 29,372	$ 38,863
Money Market Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value	$ 29,372	$ 38,863

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value
Fair Value, Inputs, Level 2 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value	$ 29,372	$ 38,863
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value	$ 29,372	$ 38,863
Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value

FAIR VALUE MEASUREMENTS (Assets

FAIR VALUE MEASUREMENTS (Assets Measured on a Non-Recurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Fair Value, Inputs, Level 1 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Goodwill
Total assets measured on a non-recurring basis
Fair Value, Inputs, Level 2 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Goodwill
Total assets measured on a non-recurring basis
Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Goodwill	$ 6,685	$ 28,383
Total assets measured on a non-recurring basis	$ 12,507	$ 46,530
Intellectual Property [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Intangible assets
Intellectual Property [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Intangible assets
Intellectual Property [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Intangible assets	$ 4,476	$ 11,057
Other Intangible Assets [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Intangible assets
Other Intangible Assets [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Intangible assets
Other Intangible Assets [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Intangible assets	$ 1,346	$ 7,090

IMPAIRMENT OF GOODWILL AND IN29

IMPAIRMENT OF GOODWILL AND INDEFINITE-LIVED ASSETS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2014	Jun. 30, 2015	Sep. 30, 2014
Impairment of Goodwill and Long-Lived Assets [Abstract]
Long-lived assets, fair value	$ 3,000
Long-lived assets impairment loss, pre-tax	10,300
Goodwill	6,700	$ 6,685	$ 28,383
Goodwill impairment	$ 21,700	$ 21,698

IMPAIRMENT OF GOODWILL AND IN30

IMPAIRMENT OF GOODWILL AND INDEFINITE-LIVED ASSETS (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2014	Jun. 30, 2015
Impairment of Goodwill and Long-Lived Assets [Abstract]
Goodwill, beginning balance	$ 28,383	$ 28,383
Goodwill impairment	(21,700)	(21,698)
Goodwill, ending balance	$ 6,700	$ 6,685

LONG-LIVED ASSETS (Narrative) (

LONG-LIVED ASSETS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Finite-Lived Intangible Assets [Line Items]
Impairment charge for long-lived assets other than goodwill			$ 10,300
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated lives				14 years	14 years
Panopticon [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Purchase price for intellectual property assets						$ 7,900
Estimated lives				7 years 6 months
Reallocated impairment charge for long-lived assets other than goodwill	$ 600
Impairment charge		$ 4,300		$ 4,895
Panopticon [Member] | Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment charge		$ 6,000

LONG-LIVED ASSETS (Changes in C

LONG-LIVED ASSETS (Changes in Carrying Amounts of Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2014	Jun. 30, 2015	Sep. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, beginning balance	$ 9,270	$ 9,270
Accumulated amortization, beginning balance	(2,180)	(2,180)
Net carrying amount balance		1,346	$ 7,090
Gross carrying amount, ending balance		9,270
Accumulated amortization, ending balance		(2,508)
Panopticon [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, beginning balance	7,900	7,900
Accumulated amortization, beginning balance	(1,142)	(1,142)
Net carrying amount balance		1,470	$ 6,758
Impairment charge	$ (4,300)	(4,895)
Amortization expense		(393)
Gross carrying amount, ending balance		3,005
Accumulated amortization, ending balance		$ (1,535)

LONG-LIVED ASSETS (Other Intang

LONG-LIVED ASSETS (Other Intangible Assets) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2015	Sep. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 9,270	$ 9,270
Impairment charge	(5,416)
Accumulated amortization	(2,508)	(2,180)
Net carrying amount balance	$ 1,346	$ 7,090
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	20 years	20 years
Gross carrying amount	$ 160	$ 160
Accumulated amortization	(87)	(81)
Net carrying amount balance	$ 73	$ 79
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	14 years	14 years
Gross carrying amount	$ 8,990	$ 8,990
Impairment charge	(5,416)
Accumulated amortization	(2,333)	(2,047)
Net carrying amount balance	$ 1,241	$ 6,943
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	3 years	3 years
Gross carrying amount	$ 120	$ 120
Accumulated amortization	(88)	(52)
Net carrying amount balance	$ 32	$ 68

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Narrative) (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2015USD ($)ft²	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)ft²	Jun. 30, 2014USD ($)
Rental expense for operating leases	$ 300,000	$ 200,000	$ 800,000	$ 700,000
Facility square feet | ft²	20,360		20,360
Lease commencement date	Nov. 1, 2015
Lease expiration date	Oct. 31, 2022
Cash collateral for borrowed becurities	$ 200,000		$ 200,000
Royalty expense	200,000	$ 100,000	$ 400,000	$ 300,000
Scenario, Plan [Member]
Monthly lease expense	42,000
Expected expense from early exit of office	$ 100,000

RESTRUCTURING CHARGES (Narrativ

RESTRUCTURING CHARGES (Narrative) (Details) - USD ($)	3 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Expected restrcturing charges in each quarter	$ 0
Restructuring Plans Initiated During the First Fiscal Quarter of 2015 [Member]
Restructuring Cost and Reserve [Line Items]
Severance and related benefit costs		$ 300,000	$ 400,000
Restructuring Plans Initiated During the Second Fiscal Quarter of 2015 [Member]
Restructuring Cost and Reserve [Line Items]
Severance and related benefit costs	$ 27,000	$ 900,000
Percentage of positions eliminated		15.00%

RESTRUCTURING CHARGES (Schedule

RESTRUCTURING CHARGES (Schedule of Changes in the Accrual for Restructuring Charges) (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, beginning balance
Charges	$ 29	$ 1,640
Payments		(1,261)
Restructuring reserve, ending balance	379	$ 379
Restructuring Plans Initiated During the First Fiscal Quarter of 2015 [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, beginning balance
Charges	2	$ 763
Payments		(628)
Restructuring reserve, ending balance	135	$ 135
Restructuring Plans Initiated During the Second Fiscal Quarter of 2015 [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, beginning balance
Charges	27	$ 877
Payments		(633)
Restructuring reserve, ending balance	$ 244	$ 244

RESTRUCTURING CHARGES (Restruct

RESTRUCTURING CHARGES (Restructuring Charges Included in our Unaudited Consolidated Statements of Operations) (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 29	$ 1,640
Cost of Maintenance and Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(14)	365
Selling and Marketing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	31	716
Engineering and Product Development [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	11	323
General and Administrative [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1	236
Restructuring Plans Initiated During the First Fiscal Quarter of 2015 [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2	763
Restructuring Plans Initiated During the First Fiscal Quarter of 2015 [Member] | Cost of Maintenance and Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		160
Restructuring Plans Initiated During the First Fiscal Quarter of 2015 [Member] | Selling and Marketing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		247
Restructuring Plans Initiated During the First Fiscal Quarter of 2015 [Member] | Engineering and Product Development [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2	268
Restructuring Plans Initiated During the First Fiscal Quarter of 2015 [Member] | General and Administrative [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		88
Restructuring Plans Initiated During the Second Fiscal Quarter of 2015 [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	27	877
Restructuring Plans Initiated During the Second Fiscal Quarter of 2015 [Member] | Cost of Maintenance and Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(14)	205
Restructuring Plans Initiated During the Second Fiscal Quarter of 2015 [Member] | Selling and Marketing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	31	469
Restructuring Plans Initiated During the Second Fiscal Quarter of 2015 [Member] | Engineering and Product Development [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	9	55
Restructuring Plans Initiated During the Second Fiscal Quarter of 2015 [Member] | General and Administrative [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1	$ 148

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Income Taxes [Abstract]
Tax liability increase (decrease) for uncertain tax positions			$ 0
Potential cash payment for tax liability					$ 300
Tax expense (benefit)	$ (96)	$ 53	$ (2,632)	$ (270)

CALCULATION OF EARNINGS PER S39

CALCULATION OF EARNINGS PER SHARE (Narrative) (Details) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Calculation of Earnings per Share [Abstract]
Anit-dilutive securities excluded from calculation of earnings (loss) per share	242,200	563,738	272,700	883,891

CALCULATION OF EARNINGS PER S40

CALCULATION OF EARNINGS PER SHARE (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Calculation of Earnings per Share [Abstract]
Net loss	$ (4,123)	$ (5,157)	$ (46,808)	$ (17,509)
Weighted-average number of common shares outstanding	11,448	10,826	11,307	9,654
Net loss per share	$ (0.36)	$ (0.48)	$ (4.14)	$ (1.81)

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - Jun. 30, 2015 - shares	Total
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future issuance under plan	399,833
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period	7 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period	10 years

SHARE-BASED COMPENSATION (Sched

SHARE-BASED COMPENSATION (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2015	Sep. 30, 2014
Share-Based Compensation [Abstract]
Number of options outstanding, beginning balance	320,500
Number of options outstanding, exercised	(18,000)
Number of options outstanding, ending balance	302,500	320,500
Number of options outstanding, exercisable	277,492
Number of options outstanding, expected to vest	22,507
Weighted - average exercise price, beginning balance	$ 5.97
Weighted - average exercise price, exercised	2.91
Weighted - average exercise price, ending balance	6.15	$ 5.97
Weighted - average exercise price, exercisable	5.54
Weighted - average exercise price, expected to vest	$ 12.92
Weighted - average remaining contractual life (years)	3 years 1 month 13 days	3 years 8 months 27 days
Weighted - average remaining contractual term, exercised	1 year 26 days
Weighted - average remaining contractual term, expected to vest	4 years 9 months 26 days
Weighted - average remaining contractual term, exercisable	2 years 11 months 16 days
Aggregate intrinsic value, beginning balance	$ 1,572
Aggregate intrinsic value, exercised	71
Aggregate intrinsic value, exercisable	696
Aggregate intrinsic value, ending balance	$ 696	$ 1,572

SHARE-BASED COMPENSATION (Sch43

SHARE-BASED COMPENSATION (Schedule of Nonvested RSU Information) (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Jun. 30, 2015shares
Number of RSUs outstanding, nonvested, beginning balance	740,011
Number of RSUs outstanding, granted	441,568
Number of RSUs outstanding, canceled/forfeited	(198,177)
Number of RSUs outstanding, vested	(207,660)
Number of RSUs outstanding, nonvested, ending balance	775,742

SEGMENT INFORMATION AND REVEN44

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segment	Jun. 30, 2014USD ($)	Sep. 30, 2014USD ($)
Number of operating segments | segment			1
Number of reportable segments | segment			1
Revenue	$ 7,776	$ 9,228	$ 22,199	$ 26,037
Operating income (loss)	(4,183)	(5,118)	(49,402)	(16,466)
Long-lived assets	15,320		15,320		$ 47,272
Domestic [Member]
Revenue	6,787	7,680	19,367	22,342
Operating income (loss)	(2,751)	(4,422)	(44,017)	(12,577)
Long-lived assets	15,301		15,301		47,135
International [Member]
Revenue	1,593	2,507	4,712	5,912
Operating income (loss)	(1,385)	(684)	(5,332)	(3,873)
Long-lived assets	19		19		$ 137
Intercompany Eliminations [Member]
Revenue	(604)	(959)	(1,880)	(2,217)
Operating income (loss)	$ (47)	$ (12)	$ (53)	$ (16)