Datawatch (DWCH) 10-Q 22 Apr 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2016	Apr. 20, 2016
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		11,739,235
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 31,516	$ 35,162
Accounts receivable, net of allowance for doubtful accounts of $40 and $106 as of March 31, 2016 and September 30, 2015, respectively	5,410	7,081
Prepaid expenses and other current assets	2,244	2,013
Total current assets	39,170	44,256
Property and equipment, net	1,248	614
Acquired intellectual property, net	2,989	3,981
Other intangible assets, net	1,121	1,270
Goodwill and indefinite-lived assets	6,685	6,685
Deferred tax asset, net	1,794	1,839
Other long-term assets	246	286
Total assets	53,253	58,931
CURRENT LIABILITIES:
Accounts payable	1,850	1,546
Accrued expenses	1,951	2,656
Deferred revenue	8,454	8,452
Deferred tax liability, current		274
Total current liabilities	12,255	12,928
LONG-TERM LIABILITIES:
Deferred revenue, long-term	227	192
Other long-term liabilities	396	269
Total long-term liabilities	623	461
Total liabilities	$ 12,878	$ 13,389
COMMITMENTS AND CONTINGENCIES (Note 6)
SHAREHOLDERS' EQUITY:
Common stock, par value $0.01; authorized: 20,000,000 shares; issued and outstanding: 11,753,481 shares and 11,739,235 shares respectively, as of March 31, 2016 and 11,640,097 shares and 11,625,851 shares, respectively, as of September 30, 2015	$ 117	$ 116
Additional paid-in capital	141,859	139,732
Accumulated deficit	(99,517)	(92,191)
Accumulated other comprehensive loss	(1,944)	(1,975)
Shareholders' equity before treasury stock	40,515	45,682
Less treasury stock, at cost, 14,246 shares	(140)	(140)
Total shareholders' equity	40,375	45,542
Total liabilities and shareholders' equity	$ 53,253	$ 58,931

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 40	$ 106
Commom stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	11,753,481	11,640,097
Common stock, shares outstanding	11,739,235	11,625,851
Treasury shares	14,246	14,246

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
REVENUE:
Software licenses		$ 3,645	$ 3,911	$ 6,792	$ 7,086
Maintenance		3,480	3,296	7,082	6,705
Professional services		299	255	605	632
Total revenues		7,424	7,462	14,479	14,423
COSTS AND EXPENSES:
Cost of software licenses		499	721	1,188	1,596
Cost of maintenance and services	[1]	610	1,084	1,208	1,962
Sales and marketing	[1]	5,100	6,802	10,848	14,790
Engineering and product development	[1]	2,066	2,187	3,893	4,710
General and administrative	[1]	$ 2,626	$ 2,434	$ 4,860	4,575
Impairment of goodwill and long-lived assets					32,009
Total costs and expenses		$ 10,901	$ 13,228	$ 21,997	59,642
LOSS FROM OPERATIONS		(3,477)	(5,766)	(7,518)	(45,219)
Other income		15	3	18	9
Foreign currency transaction loss		(6)	(14)	(33)	(11)
LOSS FROM OPERATIONS BEFORE INCOME TAXES		(3,468)	(5,777)	(7,533)	(45,221)
Income tax expense (benefit)		(106)	32	(207)	(2,536)
NET LOSS		$ (3,362)	$ (5,809)	$ (7,326)	$ (42,685)
Net loss per share - basic: (in dollars per share)		$ (0.29)	$ (0.51)	$ (0.63)	$ (3.80)
Net loss per share - diluted: (in dollars per share)		$ (0.29)	$ (0.51)	$ (0.63)	$ (3.80)
Weighted-average shares outstanding - basic (in shares)		11,701	11,340	11,669	11,237
Weighted-average shares outstanding - diluted (in shares)		11,701	11,340	11,669	11,237
Share-based compensation		$ 1,001	$ 798	$ 2,024	$ 2,539
Cost of Maintenance and Services [Member]
COSTS AND EXPENSES:
Share-based compensation		7	3	25	30
Selling and Marketing [Member]
COSTS AND EXPENSES:
Share-based compensation		494	326	1,010	1,560
Engineering and Product Development [Member]
COSTS AND EXPENSES:
Share-based compensation		91	72	176	212
General and Administrative [Member]
COSTS AND EXPENSES:
Share-based compensation		$ 409	$ 397	$ 813	$ 737
[1]	Includes share-based compensation as follows:Cost of maintenance and services$ 7$ 3$ 25$ 30Sales and marketing 494 326 1,010 1,560Engineering and product development 91 72 176 212General and administrative 409 397 813 737$ 1,001$ 798$ 2,024$ 2,539

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,362)	$ (5,809)	$ (7,326)	$ (42,685)
Other comprehensive loss:
Foreign currency translation adjustments	39	(95)	31	(105)
Comprehensive loss	$ (3,323)	$ (5,904)	$ (7,295)	$ (42,790)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,326)	$ (42,685)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization	1,314	1,558
Provision for doubtful accounts	(64)
Share-based compensation expense	2,024	2,539
Deferred income taxes	$ (229)	(2,546)
Impairment of goodwill and long-lived assets		32,009
Changes in operating assets and liabilities:
Accounts receivable	$ 1,678	734
Prepaid expenses and other assets	(200)	(301)
Accounts payable, accrued expenses and other liabilities	(242)	582
Deferred revenue	98	(605)
Cash used in operating activities	(2,947)	(8,715)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(820)	(379)
Cash used in investing activities	(820)	(379)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	108	27
Cash provided by financing activities	108	27
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	13	(114)
DECREASE IN CASH AND CASH EQUIVALENTS	(3,646)	(9,181)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	35,162	47,668
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 31,516	$ 38,487
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid
Income taxes paid	$ 10	$ 8

DECRIPTION OF BUSINESS

DECRIPTION OF BUSINESS	6 Months Ended
	Mar. 31, 2016
Decription of Business [Abstract]
Decription of Business	NOTE 1. DESCRIPTION OF BUSINESS Datawatch Corporation (the “Company” or “Datawatch”) provides self-service data preparation and visual data discovery software that optimizes multiple sources and a variety of data – regardless of its variety, volume, or velocity – delivering next generation analytics to reveal valuable insights for improving business processes. Its ability to integrate structured, unstructured, and semi-structured sources like reports, PDF files and EDI streams with real-time streaming data into visually rich analytic applications allows users to dynamically discover key factors that impact any operational aspect of their business. The Company believes this ability to perform visual discovery against multiple sources and a variety of data sets Datawatch apart in the Big Data and visualization markets. Organizations of every size, worldwide use Datawatch products, including 99 of the Fortune 100.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Mar. 31, 2016
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, 2015 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, 2015 , 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.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Mar. 31, 2016
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 $22.2 million and $25.7 million as of March 31, 2016 and September 30, 2015 , respectively, within Level 2 of the fair value hierarchy. As of March 31, 2016 and September 30, 2015 , 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):    March 31, 2016 September 30, 2015  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 $ - $ 22,240 $ - $ - $ 25,724 $ -  Total $ - $ 22,240 $ - $ - $ 25,724 $ -    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 the Financial Accounting Standards Board (“FASB”) 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.

IMPAIRMENT OF GOODWILL AND INDE

IMPAIRMENT OF GOODWILL AND INDEFINITE-LIVED ASSETS	6 Months Ended
	Mar. 31, 2016
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 item s in accordance with 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 and six 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 three months 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 three months ended December 31, 2014 . These impairment charges are included under the caption "Impairment of goodwill and long-lived assets" in our consolidated statements of operations. There were no impairment charges recognized during the three and six months ended March 31, 2016 . 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 (in thousands):    Balance at September 30, 2014 $ 28,383  Goodwill impairment (21,698)  Balance at September 30, 2015 6,685  Goodwill impairment -  Balance at March 31, 2016 $ 6,685  

LONG-LIVED ASSETS

LONG-LIVED ASSETS	6 Months Ended
	Mar. 31, 2016
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 $4.9 million for the intellectual property acquired from Panopticon and $5.4 million for the customer lists acquired from Panopticon. There were no impairment charges recognized for the six months ended March 31, 2016 .  Acquired Intellectual Property  Acquired intellectual property consists of software source code acquired through business combinations in prior years. 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.  Acquired intellectual property, net, were comprised of the following at March 31, 2016 and September 30, 2015 (in thousands):     March 31, 2016  Identified Weighted Gross Accumulated  Intangible Average Carrying Impairment Accumulated Net Carrying  Asset Useful Life Amount Charge Amortization Amount  (In years)   Panopticon intellectual property 7.5 $ 7,900 $ (4,895) $ (1,729) $ 1,276  Monarch intellectual property 5 8,616 - (6,903) 1,713   Total $ 16,516 $ (4,895) $ (8,632) $ 2,989    September 30, 2015  Identified Weighted Gross Accumulated  Intangible Average Carrying Impairment Accumulated Net Carrying  Asset Useful Life Amount Charge Amortization Amount  (In years)   Panopticon intellectual property 7.5 $ 7,900 $ (4,895) $ (1,599) $ 1,406  Monarch intellectual property 5 8,616 - (6,041) 2,575   Total $ 16,516 $ (4,895) $ (7,640) $ 3,981  Other Intangible Assets  Other intangible assets consist of trade names, patents and customer lists acquired through business combinations in prior years . 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, net, were comprised of the following at March 31, 2016 and September 30, 2015 (in thousands):         March 31, 2016  Identified Weighted Gross Accumulated  Intangible Average Carrying Impairment Accumulated Net Carrying  Asset Useful Life Amount Charge Amortization Amount  (In years)   Patents 20 $ 160 $ - $ (92) $ 68  Customer lists 14 8,990 (5,416) (2,521) 1,053  Trade names 3 120 - (120) -   Total $ 9,270 $ (5,416) $ (2,733) $ 1,121    September 30, 2015  Identified Weighted Gross Accumulated  Intangible Average Carrying Impairment Accumulated Net Carrying  Asset Useful Life Amount Charge Amortization Amount  (In years)   Patents 20 $ 160 $ - $ (88) $ 72  Customer lists 14 8,990 (5,416) (2,396) 1,178  Trade names 3 120 - (100) 20   Total $ 9,270 $ (5,416) $ (2,584) $ 1,270 

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Mar. 31, 2016
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 million and $0.2 million for the three months ended March 31, 2016 and 2015 , respectively , and $0.6 million and $0.5 million for the six months ended March 31, 2016 and 2015 , respectively . Deferred rent of $0.1 million is included under the caption “ Other long-term liabilities ” in our consolidated balance sheets, at March 31, 2016 . There was no deferred rent at September 30, 2015 . Certain of the Company's facility leases include options to renew.  On June 23, 2015 , the Company entered into a facility lease in Bedford, MA for a new corporate headquarters. The lease is for 20,360 square feet and has a term of 84 months which commenced in January 2016 when the Company moved in. The monthly rent expense is $42,000 . 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, at March 31, 2016 . Royalties  Royalty charges included in cost of software license for the three months ended March 31, 2016 were a benefit of $0.1 million. Royalty expense included in cost of software licenses was $0.2 million for the three months ended March 31, 2015 , and was $0.1 million and $0.3 million for the six mont h s ended March 31, 2016 and 2015 , respectively. Minimum royalty obligations were insignificant for the three and six months ended March 31, 2016 and 2015 . 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	6 Months Ended
	Mar. 31, 2016
Restructuring Charges [Abstract]
Restructuring Charges	NOTE 7. RESTRUCTURING CHARGES  During the six months ended March 31, 2015, the Company initiated restructuring plans to (i) lower expenses by reducing the investment in legacy solutions and realigning of international operations, primarily impacting engineering and product development, and (ii) further reduce the workforce across all functional areas of the Company in an effort to rebalance investments to match the go-to-market model. The planned restructuring efforts began during the quarter ended December 31, 2014 and continued during the quarter ended March 31, 2015, when the remaining employees impacted by the plans were notified. The Company recorded restructuring charges of $0.4 million during the three months ended December 31, 2014 and an additional $1.2 million during the three months ended March 31, 2015 including severance and related benefit costs related to workforce reductions. The Company completed all restructuring actions associated with these plans during the fiscal year ended September 30, 2015 .  The Company did not initiate any restructuring plans during fiscal 2016. However, the Company recorded severance expense of $0.2 million and $0.3 million for the three and six months ended March 31, 2016 , respectively. The following table presents the changes in the accrual for restructuring and severance charges, which is included under the caption “Accrued expenses” in our consolidated balance sheet, as of March 31, 2016 and September 30, 2015 (in thousands):     Balance at September 30, 2014 $ -  Charges 1,786  Payments (1,555)  Balance at September 30, 2015 231  Charges 289  Payments (520)  Balance at March 31, 2016 $ -  The following table presents restructuring and severance charges included in our unaudited consolidated statements of operations (in thousands):    Three Months Ended Six Months Ended  March 31, March 31,   2016 2015 2016 2015   Cost of maintenance and services $ 48 $ 353 $ 49 $ 379  Sales and marketing 107 629 234 685  Engineering and product development - 60 4 312  General and administrative - 151 2 235  $ 155 $ 1,193 $ 289 $ 1,611   

INCOME TAXES

INCOME TAXES	6 Months Ended
	Mar. 31, 2016
Income Taxes [Abstract]
Income Taxes	NOTE 8 . INCOME TAXES  During the three and six m onths ended March 31, 2016 , the Company recorded a tax benefit of $0.1 million and $0.2 million, respectively, primarily related to the change in the deferred tax asset in Sweden as a result of generating losses, estimated state taxes, and accruing interest on uncertain tax positions. During the three months ended March 31, 2015 , the Company recorded a tax expense of $32,000 , primarily related to the change in the deferred tax asset in Sweden as a result of generating losses, estimated state taxes, and accrued interest on uncertain tax positions. During the six months ended March 31, 2015 , the Company recorded a tax benefit of $2.5 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, and accrued interest 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 203 5 . 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 the deferred tax asset in 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 March 31, 2016 and September 30, 2015 . At September 30, 2015 , 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 three and six months ended March 31, 2016 . 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	6 Months Ended
	Mar. 31, 2016
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 Six Months Ended  March 31, March 31,  2016 2015 2016 2015   Net loss $ (3,362) $ (5,809) $ (7,326) $ (42,685)  Weighted-average number of common shares outstanding 11,701 11,340 11,669 11,237   Net loss per share $ (0.29) $ (0.51) $ (0.63) $ (3.80) F or the three and six months ended March 31, 2016 and 2015, all common stock equivalents in the respective periods were anti-dilutive as a result of the Company’s net loss position. As such, 103,942 shares and 242,645 shares, have not been included in the calculation of basic or diluted net loss per share , for the three months ended March 31, 2016 and 2015 , respectively, and 190,291 shares and 303,322 shares, have not been included in the calculation of basic or diluted net loss per share , for the six months ended March 31, 2016 and 2015 , respectively

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Mar. 31, 2016
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 six months ended March 31, 2016 were granted under our Second Amended and Equity Compensation and Incentive Plan (the “2011 Plan”) . At March 31, 2016 , there were 269,571 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, 2015 302,500 $ 6.15 2.86 $ 446  Granted - - - -  Canceled/Forfeited (5,000) 3.61 - 7  Exercised (22,500) 4.52 1.00 20  Outstanding, March 31, 2016 275,000 $ 6.36 2.55 $ 217  Exercisable, March 31, 2016 274,988 $ 6.31 2.50 $ 224  Unvested awards expected to vest, March 31, 2016 5,635 $ 12.92 4.06 $ -  Restricted Stock Units The fair value related to the restricted stock units (“RSUs”) was calculated based on the closing stock price of the Company’s common stock on the date of the grant and is amortized ratably over the vesting period of the award.  The following table presents nonvested RSU information for the six months ended March 31, 2016 :     Number of  RSUs  Outstanding    Nonvested, September 30, 2015 569,564  Granted 300,300  Canceled/Forfeited (89,199)  Vested (90,172)  Nonvested, March 31, 2016 690,493  

SEGMENT INFORMATION AND REVENUE

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION	6 Months Ended
	Mar. 31, 2016
Segment Information and Revenue by Geographic Location [Abstract]
Segment Information and Revenue by Geographic Location	NOTE 1 1 . 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):     Domestic International Total   Total Revenue   Three months ended March 31, 2016 $ 6,242 $ 1,182 $ 7,424  Three months ended March 31, 2015 $ 5,800 $ 1,662 $ 7,462   Six months ended March 31, 2016 $ 12,284 $ 2,195 $ 14,479  Six months ended March 31, 2015 $ 11,304 $ 3,119 $ 14,423   Total Operating Loss   Three months ended March 31, 2016 $ (2,496) $ (981) $ (3,477)  Three months ended March 31, 2015 $ (3,920) $ (1,846) $ (5,766)   Six months ended March 31, 2016 $ (5,558) $ (1,960) $ (7,518)  Six months ended March 31, 2015 $ (41,272) $ (3,947) $ (45,219)   Total Long-Lived Assets  At March 31, 2016 $ 13,988 $ 95 $ 14,083  At September 30, 2015 $ 14,515 $ 160 $ 14,675 

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Mar. 31, 2016
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	NOTE 1 2 . RECENT ACCOUNTING PRONOUNCEMENTS  In March 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting , which is intended to simplify various aspects of how share-based payments are accounted for and presented in financial statements. The standard is effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the effect this standard will have on the Company’s consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Lease s (Topic 842 ) , which requires l essees to recognize , on the balance sheet, leases with a lease terms of greater than twelve months as a right-of-use asset and a lease liability. The standard is effective for fiscal years beginning after December 15, 2018. The Company is currently evaluating the effect that the standard will have on the Company’s consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position to simplify the presentation of deferred income taxes. The standard is effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. As of October 1, 2015, the Company elected to adopt early the pronouncement on a prospective basis. Adoption of this amendment did not have an effect on the Company's financial position or results of operations, and prior periods were not retrospectively adjusted. In May 2014, the FASB issued 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 was initially 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. The Company is currently evaluating the effect that the updated standard will have on the Company’s 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)	6 Months Ended
	Mar. 31, 2016
Fair Value Measurements [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	As of March 31, 2016 and September 30, 2015 , 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):    March 31, 2016 September 30, 2015  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 $ - $ 22,240 $ - $ - $ 25,724 $ -  Total $ - $ 22,240 $ - $ - $ 25,724 $ - 

IMPAIRMENT OF GOODWILL AND IN20

IMPAIRMENT OF GOODWILL AND INDEFINITE-LIVED ASSETS (Tables)	6 Months Ended
	Mar. 31, 2016
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 (in thousands):    Balance at September 30, 2014 $ 28,383  Goodwill impairment (21,698)  Balance at September 30, 2015 6,685  Goodwill impairment -  Balance at March 31, 2016 $ 6,685 

LONG-LIVED ASSETS (Tables)

LONG-LIVED ASSETS (Tables)	6 Months Ended
	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Other Intangible Assets	Other intangible assets, net, were comprised of the following at March 31, 2016 and September 30, 2015 (in thousands):         March 31, 2016  Identified Weighted Gross Accumulated  Intangible Average Carrying Impairment Accumulated Net Carrying  Asset Useful Life Amount Charge Amortization Amount  (In years)   Patents 20 $ 160 $ - $ (92) $ 68  Customer lists 14 8,990 (5,416) (2,521) 1,053  Trade names 3 120 - (120) -   Total $ 9,270 $ (5,416) $ (2,733) $ 1,121    September 30, 2015  Identified Weighted Gross Accumulated  Intangible Average Carrying Impairment Accumulated Net Carrying  Asset Useful Life Amount Charge Amortization Amount  (In years)   Patents 20 $ 160 $ - $ (88) $ 72  Customer lists 14 8,990 (5,416) (2,396) 1,178  Trade names 3 120 - (100) 20   Total $ 9,270 $ (5,416) $ (2,584) $ 1,270 
Panopticon [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Other Intangible Assets	Acquired intellectual property, net, were comprised of the following at March 31, 2016 and September 30, 2015 (in thousands):     March 31, 2016  Identified Weighted Gross Accumulated  Intangible Average Carrying Impairment Accumulated Net Carrying  Asset Useful Life Amount Charge Amortization Amount  (In years)   Panopticon intellectual property 7.5 $ 7,900 $ (4,895) $ (1,729) $ 1,276  Monarch intellectual property 5 8,616 - (6,903) 1,713   Total $ 16,516 $ (4,895) $ (8,632) $ 2,989    September 30, 2015  Identified Weighted Gross Accumulated  Intangible Average Carrying Impairment Accumulated Net Carrying  Asset Useful Life Amount Charge Amortization Amount  (In years)   Panopticon intellectual property 7.5 $ 7,900 $ (4,895) $ (1,599) $ 1,406  Monarch intellectual property 5 8,616 - (6,041) 2,575   Total $ 16,516 $ (4,895) $ (7,640) $ 3,981 

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	6 Months Ended
	Mar. 31, 2016
Restructuring Charges [Abstract]
Schedule of Changes in the Accrual for Restructuring Charges	The following table presents the changes in the accrual for restructuring and severance charges, which is included under the caption “Accrued expenses” in our consolidated balance sheet, as of March 31, 2016 and September 30, 2015 (in thousands):     Balance at September 30, 2014 $ -  Charges 1,786  Payments (1,555)  Balance at September 30, 2015 231  Charges 289  Payments (520)  Balance at March 31, 2016 $ - 
Restructuring Charges Included in our Unaudited Consolidated Statements of Operations	The following table presents restructuring and severance charges included in our unaudited consolidated statements of operations (in thousands):    Three Months Ended Six Months Ended  March 31, March 31,   2016 2015 2016 2015   Cost of maintenance and services $ 48 $ 353 $ 49 $ 379  Sales and marketing 107 629 234 685  Engineering and product development - 60 4 312  General and administrative - 151 2 235  $ 155 $ 1,193 $ 289 $ 1,611  

CALCULATION OF EARNINGS PER S23

CALCULATION OF EARNINGS PER SHARE (Tables)	6 Months Ended
	Mar. 31, 2016
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 Six Months Ended  March 31, March 31,  2016 2015 2016 2015   Net loss $ (3,362) $ (5,809) $ (7,326) $ (42,685)  Weighted-average number of common shares outstanding 11,701 11,340 11,669 11,237   Net loss per share $ (0.29) $ (0.51) $ (0.63) $ (3.80) 

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Mar. 31, 2016
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, 2015 302,500 $ 6.15 2.86 $ 446  Granted - - - -  Canceled/Forfeited (5,000) 3.61 - 7  Exercised (22,500) 4.52 1.00 20  Outstanding, March 31, 2016 275,000 $ 6.36 2.55 $ 217  Exercisable, March 31, 2016 274,988 $ 6.31 2.50 $ 224  Unvested awards expected to vest, March 31, 2016 5,635 $ 12.92 4.06 $ - 
Schedule of Nonvested RSU Information	The following table presents nonvested RSU information for the six months ended March 31, 2016 :     Number of  RSUs  Outstanding    Nonvested, September 30, 2015 569,564  Granted 300,300  Canceled/Forfeited (89,199)  Vested (90,172)  Nonvested, March 31, 2016 690,493 

SEGMENT INFORMATION AND REVEN25

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION (Tables)	6 Months Ended
	Mar. 31, 2016
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):     Domestic International Total   Total Revenue   Three months ended March 31, 2016 $ 6,242 $ 1,182 $ 7,424  Three months ended March 31, 2015 $ 5,800 $ 1,662 $ 7,462   Six months ended March 31, 2016 $ 12,284 $ 2,195 $ 14,479  Six months ended March 31, 2015 $ 11,304 $ 3,119 $ 14,423   Total Operating Loss   Three months ended March 31, 2016 $ (2,496) $ (981) $ (3,477)  Three months ended March 31, 2015 $ (3,920) $ (1,846) $ (5,766)   Six months ended March 31, 2016 $ (5,558) $ (1,960) $ (7,518)  Six months ended March 31, 2015 $ (41,272) $ (3,947) $ (45,219)   Total Long-Lived Assets  At March 31, 2016 $ 13,988 $ 95 $ 14,083  At September 30, 2015 $ 14,515 $ 160 $ 14,675 

FAIR VALUE MEASUREMENTS (Narrat

FAIR VALUE MEASUREMENTS (Narrative) (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value	$ 22,240	$ 25,724
Money Market Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value	$ 22,240	$ 25,724

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	Mar. 31, 2016	Sep. 30, 2015
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	$ 22,240	$ 25,724
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Total assets at fair value	$ 22,240	$ 25,724
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

IMPAIRMENT OF GOODWILL AND IN28

IMPAIRMENT OF GOODWILL AND INDEFINITE-LIVED ASSETS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Mar. 31, 2016	Sep. 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	$ 0
Goodwill	$ 6,700	$ 6,685	$ 6,685	$ 28,383
Goodwill impairment			$ 21,698

IMPAIRMENT OF GOODWILL AND IN29

IMPAIRMENT OF GOODWILL AND INDEFINITE-LIVED ASSETS (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2016	Sep. 30, 2015
Impairment of Goodwill and Long-Lived Assets [Abstract]
Goodwill, beginning balance	$ 6,685	$ 28,383
Goodwill impairment		(21,698)
Goodwill, ending balance	$ 6,685	$ 6,685

LONG-LIVED ASSETS (Narrative) (

LONG-LIVED ASSETS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Mar. 31, 2016	Sep. 30, 2015
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated lives		14 years	14 years
Panopticon [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment charge		$ 0
Panopticon [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated lives		7 years 6 months
Impairment charge	$ 4,900
Panopticon [Member] | Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment charge	$ 5,400
Minimum [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated lives		5 years
Maximum [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated lives		7 years 6 months

LONG-LIVED ASSETS (Other Intang

LONG-LIVED ASSETS (Other Intangible Assets) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2016	Sep. 30, 2015
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 16,516	$ 16,516
Accumulated impairment charge	(4,895)	(4,895)
Accumulated amortization	(8,632)	(7,640)
Net carrying amount	$ 2,989	$ 3,981
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	20 years	20 years
Gross carrying amount	$ 160	$ 160
Accumulated impairment charge
Accumulated amortization	$ (92)	$ (88)
Net carrying amount	$ 68	$ 72
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	14 years	14 years
Gross carrying amount	$ 8,990	$ 8,990
Accumulated impairment charge	(5,416)	(5,416)
Accumulated amortization	(2,521)	(2,396)
Net carrying amount	$ 1,053	$ 1,178
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	3 years	3 years
Gross carrying amount	$ 120	$ 120
Accumulated impairment charge
Accumulated amortization	$ (120)	$ (100)
Net carrying amount		20
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	9,270	9,270
Accumulated impairment charge	(5,416)	(5,416)
Accumulated amortization	(2,733)	(2,584)
Net carrying amount	$ 1,121	1,270
Panopticon [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	7 years 6 months
Gross carrying amount	$ 7,900	7,900
Accumulated impairment charge	(4,895)	(4,895)
Accumulated amortization	(1,729)	(1,599)
Net carrying amount	$ 1,276	1,406
Monarch [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	5 years
Gross carrying amount	$ 8,616	$ 8,616
Accumulated impairment charge
Accumulated amortization	$ (6,903)	$ (6,041)
Net carrying amount	$ 1,713	$ 2,575

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Narrative) (Details)	3 Months Ended			6 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Jun. 23, 2015ft²
Rental expense for operating leases	$ 300,000	$ 200,000		$ 600,000	$ 500,000
Facility square feet | ft²						20,360
Lease term				84 months
Lease commencement date				Jan. 1, 2016
Deferred rent	100,000			$ 100,000
Cash collateral for borrowed securities	200,000			200,000
Royalty expense			$ 200,000
Scenario, Plan [Member]
Monthly lease expense				42,000
Software Licenses [Member]
Royalty income	$ 100,000
Royalty expense		$ 200,000		$ 100,000	$ 300,000

RESTRUCTURING CHARGES (Narrativ

RESTRUCTURING CHARGES (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2016
Restructuring Charges [Abstract]
Severance and related benefit costs	$ 0.2	$ 1.2	$ 0.4	$ 0.3

RESTRUCTURING CHARGES (Schedule

RESTRUCTURING CHARGES (Schedule of Changes in the Accrual for Restructuring Charges) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Restructuring Charges [Abstract]
Restructuring reserve, beginning balance			$ 231
Charges	$ 155	$ 1,193	289	$ 1,611	$ 1,786
Payments			$ (520)		(1,555)
Restructuring reserve, ending balance					$ 231

RESTRUCTURING CHARGES (Restruct

RESTRUCTURING CHARGES (Restructuring Charges Included in our Unaudited Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 155	$ 1,193	$ 289	$ 1,611	$ 1,786
Cost of Maintenance and Services [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	48	353	49	379
Selling and Marketing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 107	629	234	685
Engineering and Product Development [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		60	4	312
General and Administrative [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 151	$ 2	$ 235

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Income Taxes [Abstract]
Tax liability increase (decrease) for uncertain tax positions			$ 0
Potential cash payment for tax liability					$ 300
Income tax expense (benefit)	$ (106)	$ 32	$ (207)	$ (2,536)

CALCULATION OF EARNINGS PER S37

CALCULATION OF EARNINGS PER SHARE (Narrative) (Details) - shares	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Calculation of Earnings per Share [Abstract]
Anit-dilutive securities excluded from calculation of earnings (loss) per share	103,942	242,645	190,291	303,322

CALCULATION OF EARNINGS PER S38

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		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Calculation of Earnings per Share [Abstract]
Net loss	$ (3,362)	$ (5,809)	$ (7,326)	$ (42,685)
Weighted-average number of common shares outstanding	11,701	11,340	11,669	11,237
Net loss per share	$ (0.29)	$ (0.51)	$ (0.63)	$ (3.80)

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details)	6 Months Ended
	Mar. 31, 2016shares
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	269,571
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	6 Months Ended	12 Months Ended
	Mar. 31, 2016	Sep. 30, 2015
Share-Based Compensation [Abstract]
Number of options outstanding, beginning balance	302,500
Number of options outstanding, granted
Number of options outstanding, canceled/forfeited	(5,000)
Number of options outstanding, exercised	(22,500)
Number of options outstanding, ending balance	275,000	302,500
Number of options outstanding, exercisable	274,988
Unvested awards expected to vest	5,635
Weighted - average exercise price, beginning balance	$ 6.15
Weighted - average exercise price, granted
Weighted - average exercise price, canceled/forfeited	$ 3.61
Weighted - average exercise price, exercised	4.52
Weighted - average exercise price, ending balance	6.36	$ 6.15
Weighted - average exercise price, exercisable	6.31
Weighted - average exercise price, expected to vest	$ 12.92
Weighted - average remaining contractual life (years)	2 years 6 months 18 days	2 years 10 months 10 days
Weighted - average remaining contractual term, exercised	1 year
Weighted - average remaining contractual term, expected to vest	4 years 22 days
Weighted - average remaining contractual term, exercisable	2 years 6 months
Aggregate intrinsic value, beginning balance	$ 446
Aggregate intrinsic value, canceled/forfeited	7
Aggregate intrinsic value, exercised	20
Aggregate intrinsic value, exercisable	$ 224
Aggregate intrinsic value, expected to vest
Aggregate intrinsic value, ending balance	$ 217	$ 446

SHARE-BASED COMPENSATION (Sch41

SHARE-BASED COMPENSATION (Schedule of Nonvested RSU Information) (Details) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Mar. 31, 2016shares
Number of RSUs outstanding, nonvested, beginning balance	569,564
Number of RSUs outstanding, granted	300,300
Number of RSUs outstanding, canceled/forfeited	(89,199)
Number of RSUs outstanding, vested	(90,172)
Number of RSUs outstanding, nonvested, ending balance	690,493

SEGMENT INFORMATION AND REVEN42

SEGMENT INFORMATION AND REVENUE BY GEOGRAPHIC LOCATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016USD ($)segment	Mar. 31, 2015USD ($)	Sep. 30, 2015USD ($)
Number of operating segments | segment			1
Number of reportable segments | segment			1
Revenue	$ 7,424	$ 7,462	$ 14,479	$ 14,423
Operating loss	(3,477)	(5,766)	(7,518)	(45,219)
Long-lived assets	14,083		14,083		$ 14,675
Domestic [Member]
Revenue	6,242	5,800	12,284	11,304
Operating loss	(2,496)	(3,920)	(5,558)	(41,272)
Long-lived assets	13,988		13,988		14,515
International [Member]
Revenue	1,182	1,662	2,195	3,119
Operating loss	(981)	$ (1,846)	(1,960)	$ (3,947)
Long-lived assets	$ 95		$ 95		$ 160