DATAWATCH CORP - 10-K filing on 2012-12-21

Nature Of Business And Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2012

Nature Of Business And Summary Of Significant Accounting Policies [Abstract]

Schedule Of Allowance For Doubtful Accounts


	2012			2011			2010
	(in thousands)

Allowance for doubtful accounts balance - beginning of year	$	78		$	129		$	160
Additions to the allowance for doubtful accounts		93			92			99
Deductions against the allowance for doubtful accounts		(64)			(143)			(130)
Allowance for doubtful accounts balance - end of year	$	107		$	78		$	129

Schedule Of Sales Returns Reserve


	2012			2011			2010
	(in thousands)

Sales returns reserve balance - beginning of year	$	70		$	35		$	55
Additions to the sales returns reserve		117			101			12
Deductions against the sales returns reserve		(82)			(66)			(32)
Sales returns reserve balance - end of year	$	105		$	70		$	35

Schedule Of Capitalized And Purchased Software Development Costs


	2012			2011			2010
	(in thousands)

Capitalized and purchased software balance - beginning of year	$	14		$	396		$	1,106
Capitalized software development costs		54			-			3
Amortization of capitalized software development costs and
purchased software		(38)			(382)			(713)
Capitalized and purchased software balance - end of year	$	30		$	14		$	396

Schedule Of Revenue By Major Customers


		Percentage of total revenue						Percentage of total
		for the year ended						accounts receivable at
		September 30,						September 30,
		2012		2011		2010		2012		2011

Ingram Micro, Inc.		4%		13%		11%		0%		14%

Lifeboat Distribution		17%		15%		12%		19%		18%

Schedule Of Deferred Revenue


	2012			2011
	(in thousands)

Maintenance	$	5,167		$	3,794
License		1,257			33
Other		136			109
Total		6,560			3,936

Less: Long-term portion of deferred maintenance		(265)			(113)

Current portion of deferred revenue	$	6,295		$	3,823

Schedule Of Other Intangible Assets, Net


		Weighted		September 30, 2012									September 30, 2011
		Average		Gross									Gross
Identified Intangible		Useful Life		Carrying			Accumulated			Net Carrying			Carrying			Accumulated			Net Carrying
Asset		in Years		Amount			Amortization			Amount			Amount			Amortization			Amount
					(in thousands)

Capitalized software		2		$	1,190		$	1,160		$	30		$	2,662		$	2,648		$	14
Purchased software		5			700			700			-			700			700			-
Patents		20			160			65			95			160			57			103
Customer lists		10			1,790			1,195			595			1,790			1,029			761
Non-compete agreements		4			640			640			-			640			640			-
Trademark		2			21			21			-			21			21			-
Loan acquisition costs		4			88			16			72			-			-			-

Total				$	4,589		$	3,797		$	792		$	5,973		$	5,095		$	878

Schedule Of Estimated Future Amortization Expense


Fiscal Years Ending September 30,

2013										$	235
2014											193
2015											179
2016											110
2017											13
Thereafter											62

Total estimated future amortization expense										$	792

Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis



		September 30, 2012													September 30, 2011
												Estimated												Estimated
		Fair Value Measurement										Fair			Fair Value Measurement									Fair
		Using Input Types										Value			Using Input Types									Value
		Level 1			Level 2			Level 3				Total			Level 1			Level 2			Level 3			Total

Assets:
Money market funds		$	2,234		$	-		$	-		$	2,234		$	2,233		$	-		$	-		$	2,233
Total assets at fair value			2,234			-			-			2,234			2,233			-			-			2,233

Liablities:
Line of credit		$	900		$	-		$	-		$	900		$	-		$	-		$	-		$	-
Note payable			4,000									4,000			-			-			-			-
Debt discount			-			(1,017)			-			(1,017)			-			-			-			-
Total liabilities at fair value		$	4,900		$	(1,017)		$	-		$	3,883		$	-			-			-			-

Schedule Of Options And Restricted Stock Units Excluded From Computation Of Diluted Net Income Per Share



		2012			2011			2010

Quantity of option shares not included			123,105			105,819			270,916
Weighted-average exercise price		$	12.30		$	5.18		$	4.46