ý
|
ANNUAL
REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR
THE FISCAL YEAR ENDED SEPTEMBER 30, 2007
OR
|
o
|
TRANSITION
REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR
THE TRANSITION PERIOD FROM
TO
|
DELAWARE
|
02-0405716
|
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(I.R.S.
Employer
Identification
No.)
|
Common
Stock $0.01 PAR
VALUE
|
NASDAQ
|
|
(Title
of Class)
|
(Name
of Exchange on which
Registered)
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer ý
|
Part I
|
||
Item
1.
|
Business
|
3
|
Item
1A.
|
Risk
Factors
|
8
|
Item
1B.
|
Unresolved
Staff Comments
|
12
|
Item
2.
|
Properties
|
12
|
Item
3.
|
Legal
Proceedings
|
12
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
12
|
Part II
|
||
Item
5.
|
Market
for Registrant’s Common Equity and Related Shareholder
Matters
|
14
|
Item
6.
|
Selected
Consolidated Financial Data
|
14
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
15
|
Item
7A.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
29
|
Item
8.
|
Financial
Statements and Supplementary Data
|
30
|
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
55
|
Item
9A
|
Controls
and Procedures
|
55
|
Item
9B.
|
Other
Information
|
56
|
Part III
|
||
Item
10.
|
Directors
and Executive Officers of the Registrant
|
57
|
Item
11.
|
Executive
Compensation
|
57
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management
|
57
|
Item
13.
|
Certain
Relationships and Related Transactions
|
57
|
Item
14.
|
Principal
Accounting Fees and Services
|
57
|
Part IV
|
||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
58
|
Robert
W. Hagger
|
59
|
President,
Chief Executive Officer and Director
|
||
Kenneth
P. Bero
|
53
|
Chief
Operating Officer, Senior Vice President of Sales and
Director
|
||
John
H. Kitchen, III
|
52
|
Chief
Marketing Officer, Senior Vice President and Secretary
|
||
Murray
P. Fish
|
56
|
Chief
Financial Officer, Vice President of Finance, Treasurer and Assistant
Secretary
|
||
Daniel
F. Incropera
|
43
|
Corporate
Controller & Vice President
|
For
the Year
Ended
|
Common
Stock
|
||||
September 30,
2007
|
High
($)
|
Low
($)
|
|||
4th
Quarter
|
6.20
|
4.21
|
|||
3rd
Quarter
|
6.07
|
2.85
|
|||
2nd
Quarter
|
3.10
|
2.45
|
|||
1st
Quarter
|
2.93
|
1.89
|
For
the Year
Ended
|
Common
Stock
|
||||
September 30,
2006
|
High
($)
|
Low
($)
|
|||
4th
Quarter
|
3.68
|
2.47
|
|||
3rd
Quarter
|
3.85
|
3.36
|
|||
2nd
Quarter
|
5.38
|
3.53
|
|||
1st
Quarter
|
4.85
|
3.04
|
Statements
of Operations
Data:
|
||||||||||||||||||||
Years
Ended
September 30,
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
(In
thousands, except per share
data)
|
||||||||||||||||||||
Revenue
|
$ |
25,259
|
$ |
20,811
|
$ |
21,511
|
$ |
19,335
|
$ |
17,712
|
||||||||||
Costs
and Expenses
|
23,524
|
21,345
|
20,823
|
18,410
|
16,886
|
|||||||||||||||
Income
(loss) from Operations
|
1,735
|
(534 | ) |
688
|
925
|
826
|
||||||||||||||
Net
Income (Loss)
|
$ |
1,669
|
$ | (555 | ) | $ |
800
|
$ |
1,085
|
$ |
847
|
|||||||||
Earnings
(Loss) per Common Share:
|
||||||||||||||||||||
Basic
|
$ |
0.30
|
$ | (0.10 | ) | $ |
0.15
|
$ |
0.21
|
$ |
0.16
|
|||||||||
Diluted
|
$ |
0.29
|
$ | (0.10 | ) | $ |
0.14
|
$ |
0.19
|
$ |
0.16
|
|||||||||
Balance
Sheet
Data:
|
||||||||||||||||||||
September 30,
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Total
Assets
|
$ |
18,337
|
$ |
16,025
|
$ |
13,412
|
$ |
12,629
|
$ |
10,504
|
||||||||||
Working
Capital (Deficiency)
|
(279 | ) | (2,465 | ) |
3,487
|
2,548
|
3,408
|
|||||||||||||
Long-Term
Obligations
|
448
|
266
|
—
|
125
|
3
|
|||||||||||||||
Shareholders’
Equity
|
9,020
|
6,956
|
7,306
|
6,436
|
5,138
|
Year
Ended
September 30,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
REVENUE:
|
||||||||||||
Software
licenses and subscriptions
|
58.8 | % | 63.2 | % |
66.2
|
% | ||||||
Maintenance
and services
|
41.2
|
36.8
|
33.8
|
|||||||||
Total
Revenue
|
100.0
|
100.0
|
100.0
|
|||||||||
COSTS
AND EXPENSES:
|
||||||||||||
Cost
of software licenses and subscriptions
|
9.8
|
10.9
|
11.7
|
|||||||||
Cost
of maintenance and services
|
15.6
|
19.0
|
16.0
|
|||||||||
Sales
and marketing
|
36.8
|
43.9
|
40.4
|
|||||||||
Engineering
and product development
|
11.7
|
10.1
|
9.4
|
|||||||||
General
and administrative
|
19.3
|
18.7
|
19.3
|
|||||||||
Total
costs and expenses
|
93.2
|
102.6
|
96.8
|
|||||||||
INCOME
(LOSS) FROM OPERATIONS
|
6.8
|
(2.6 | ) |
3.2
|
||||||||
Interest
expense
|
(0.1 | ) | (0.1 | ) |
—
|
|||||||
Interest
income and other income, net
|
0.4
|
0.2
|
0.4
|
|||||||||
INCOME
(LOSS) BEFORE INCOME TAXES
|
7.1
|
(2.5 | ) |
3.6
|
||||||||
(Provision)
benefit for income taxes
|
(0.5 | ) | (0.2 | ) |
0.1
|
|||||||
NET
INCOME (LOSS)
|
6.6
|
(2.7 | ) |
3.7
|
Year
Ended
September 30,
|
Increase
|
Percentage
|
||||||||||||||
2007
|
2006
|
(Decrease)
|
Change
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Software
licenses and subscriptions
|
$ |
14,852
|
$ |
13,145
|
$ |
1,707
|
13.0% | |||||||||
Maintenance
and services
|
10,407
|
7,666
|
2,741
|
35.8% | ||||||||||||
Total
revenue
|
$ |
25,259
|
$ |
20,811
|
$ |
4,448
|
21.4% |
Year
Ended
September 30,
|
Increase
/
|
Percentage
|
||||||||||||||
2007
|
2006
|
(Decrease)
|
Change
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Costs
of software licenses and subscriptions
|
$ |
2,468
|
$ |
2,268
|
$ |
200
|
8.8% | |||||||||
Costs
of maintenance and services
|
3,943
|
3,949
|
(6 | ) | -0.1% | |||||||||||
Sales
and marketing expenses
|
9,290
|
9,136
|
154
|
1.7% | ||||||||||||
Engineering
and product development expenses
|
2,951
|
2,094
|
857
|
40.9% | ||||||||||||
General
and administrative expenses
|
4,872
|
3,898
|
974
|
25.0% | ||||||||||||
Total
costs and operating expenses
|
$ |
23,524
|
$ |
21,345
|
$ |
2,179
|
10.2% |
Year
Ended
September 30,
|
Increase
|
Percentage
|
||||||||||||||
2006
|
2005
|
(Decrease)
|
Change
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Software
licenses and subscriptions
|
$ |
13,145
|
$ |
14,233
|
$ | (1,088 | ) | -7.6% | ||||||||
Maintenance
and services
|
7,666
|
7,278
|
388
|
5.3% | ||||||||||||
Total
revenue
|
$ |
20,811
|
$ |
21,511
|
$ | (700 | ) | -3.3% |
Year
Ended
September 30,
|
Increase
/
|
Percentage
|
||||||||||||||
2006
|
2005
|
(Decrease)
|
Change
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Costs
of software licenses and subscriptions
|
$ |
2,268
|
$ |
2,515
|
$ | (247 | ) | -9.8% | ||||||||
Costs
of maintenance and services
|
3,949
|
3,438
|
511
|
14.9% | ||||||||||||
Sales
and marketing expenses
|
9,136
|
8,687
|
449
|
5.2% | ||||||||||||
Engineering
and product development expenses
|
2,094
|
2,031
|
63
|
3.1% | ||||||||||||
General
and administrative expenses
|
3,898
|
4,152
|
(254 | ) | -6.1% | |||||||||||
Total
costs and operating expenses
|
$ |
21,345
|
$ |
20,823
|
$ |
522
|
2.5% |
Contractual
Obligations:
|
Total
|
Less
than 1
Year
|
1-3
Years
|
3-5
Years
|
More
than 5
Years
|
|||||||
Operating
Lease Obligations
|
$
|
1,054
|
|
407
|
|
506
|
|
141
|
|
—
|
|
Report
of Independent Registered Public Accounting Firm
|
31
|
Consolidated
Financial Statements as of September 30, 2007 and 2006 and for each
of the Three Years in the Period Ended September 30, 2007:
|
|
Consolidated
Balance Sheets
|
32
|
Consolidated
Statements of Operations
|
33
|
Consolidated
Statements of Shareholders’ Equity and Comprehensive Income
(Loss)
|
34
|
Consolidated
Statements of Cash Flows
|
35
|
Notes
to Consolidated Financial Statements
|
36
|
September
30,
|
September
30,
|
|||||||
2007
|
2006
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and equivalents
|
$ |
3,841
|
$ |
1,862
|
||||
Accounts
receivable, less allowance for doubtful accounts and sales returns
of
$303,000 in 2007 and $272,000 in 2006
|
4,174
|
3,786
|
||||||
Inventories
|
48
|
37
|
||||||
Prepaid
expenses
|
527
|
653
|
||||||
Total
current assets
|
8,590
|
6,338
|
||||||
Property
and equipment:
|
||||||||
Office
furniture and equipment
|
2,090
|
2,186
|
||||||
Manufacturing
and engineering equipment
|
288
|
270
|
||||||
2,378
|
2,456
|
|||||||
Less
accumulated depreciation and amortization
|
(1,522 | ) | (1,327 | ) | ||||
Net
property and equipment
|
856
|
1,129
|
||||||
Goodwill
|
6,020
|
5,236
|
||||||
Other
intangible assets, net
|
2,676
|
3,155
|
||||||
Restricted
cash
|
125
|
125
|
||||||
Other
long-term assets
|
70
|
42
|
||||||
$ |
18,337
|
$ |
16,025
|
|||||
LIABILITIES
AND SHAREHOLDERS’
EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Line
of credit
|
$ |
—
|
$ |
1,000
|
||||
Accounts
payable
|
1,215
|
1,302
|
||||||
Accrued
expenses
|
2,839
|
1,818
|
||||||
Deferred
revenue
|
4,486
|
4,468
|
||||||
Accrued
cost of acquisition
|
329
|
215
|
||||||
Total
current liabilities
|
8,869
|
8,803
|
||||||
LONG-TERM
LIABILITIES:
|
||||||||
Deferred
rent
|
179
|
230
|
||||||
Long-term
deferred revenue
|
122
|
—
|
||||||
Deferred
tax liability
|
147
|
36
|
||||||
Total
long-term liabilities
|
448
|
266
|
||||||
COMMITMENTS
AND CONTINGENCIES
|
||||||||
SHAREHOLDERS’
EQUITY:
|
||||||||
Common
stock, par value $.01; 20,000,000 shares authorized; issued, 5,647,666
shares and 5,526,485 shares, respectively; outstanding, 5,633,420
shares
and 5,512,239 shares, respectively
|
56
|
55
|
||||||
Additional
paid-in capital
|
22,684
|
22,204
|
||||||
Accumulated
deficit
|
(13,072 | ) | (14,741 | ) | ||||
Accumulated
other comprehensive loss
|
(508 | ) | (422 | ) | ||||
|
9,160
|
7,096
|
||||||
Less
treasury stock, at cost, 14,246 shares
|
(140 | ) | (140 | ) | ||||
Total
shareholders’ equity
|
9,020
|
6,956
|
||||||
$ |
18,337
|
$ |
16,025
|
|||||
Year
Ended September
30,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
REVENUE:
|
||||||||||||
Software
licenses and subscriptions
|
$ |
14,852
|
$ |
13,145
|
$ |
14,233
|
||||||
Maintenance
and services
|
10,407
|
7,666
|
7,278
|
|||||||||
Total
Revenue
|
25,259
|
20,811
|
21,511
|
|||||||||
COSTS
AND EXPENSES:
|
||||||||||||
Cost
of software licenses and subscriptions
|
2,468
|
2,268
|
2,515
|
|||||||||
Cost
of maintenance and services
|
3,943
|
3,949
|
3,438
|
|||||||||
Sales
and marketing
|
9,290
|
9,136
|
8,687
|
|||||||||
Engineering
and product development
|
2,951
|
2,094
|
2,031
|
|||||||||
General
and administrative
|
4,872
|
3,898
|
4,152
|
|||||||||
Total
costs and expenses
|
23,524
|
21,345
|
20,823
|
|||||||||
INCOME
(LOSS) FROM OPERATIONS
|
1,735
|
(534 | ) |
688
|
||||||||
Interest
expense
|
(33 | ) | (18 | ) | (3 | ) | ||||||
Interest
income
|
107
|
40
|
85
|
|||||||||
Foreign
currency transaction (losses) gains
|
(7 | ) | (7 | ) |
8
|
|||||||
INCOME
(LOSS) FROM OPERATIONS BEFORE INCOME TAXES
|
1,802
|
(519 | ) |
778
|
||||||||
(PROVISION)
BENEFIT FOR INCOME TAXES
|
(133 | ) | (36 | ) |
22
|
|||||||
NET
INCOME (LOSS)
|
$ |
1,669
|
$ | (555 | ) | $ |
800
|
|||||
Net
income (loss) per share - Basic:
|
$ |
0.30
|
$ | (0.10 | ) | $ |
0.15
|
|||||
Net
income (loss) per share - Diluted:
|
$ |
0.29
|
$ | (0.10 | ) | $ |
0.14
|
|||||
Weighted-Average
Shares Outstanding - Basic
|
5,558
|
5,481
|
5,317
|
|||||||||
Weighted-Average
Shares Outstanding - Diluted
|
5,855
|
5,481
|
5,774
|
Accumulated
|
||||||||||||||||||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||||||||||||||||||
Common
Stock
|
Paid-In
|
Accumulated
|
Comprehensive
|
Comprehensive
|
Treasury
Stock
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Loss
|
Income
(Loss)
|
Shares
|
Amount
|
Total
|
||||||||||||||||||||||||||||
BALANCE,
OCTOBER 1, 2004
|
5,315,108
|
$ |
53
|
$ |
21,828
|
$ | (14,986 | ) | $ | (318 | ) | (14,246 | ) | $ | (140 | ) | $ |
6,437
|
||||||||||||||||||
Stock
options exercised
|
67,976
|
1
|
82
|
83
|
||||||||||||||||||||||||||||||||
Stock
option acceleration expense
|
47
|
47
|
||||||||||||||||||||||||||||||||||
Translation
adjustments
|
(60 | ) | $ | (60 | ) | (60 | ) | |||||||||||||||||||||||||||||
Net
income
|
800
|
800
|
800
|
|||||||||||||||||||||||||||||||||
Total
comprehensive income
|
$ |
740
|
||||||||||||||||||||||||||||||||||
BALANCE,
SEPTEMBER 30, 2005
|
5,383,084
|
54
|
21,957
|
(14,186 | ) | (378 | ) | (14,246 | ) | (140 | ) |
7,307
|
||||||||||||||||||||||||
Stock
options exercised
|
143,401
|
1
|
180
|
181
|
||||||||||||||||||||||||||||||||
Stock-based
compensation expense
|
67
|
67
|
||||||||||||||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||||||
Translation
adjustments
|
(44 | ) | (44 | ) | (44 | ) | ||||||||||||||||||||||||||||||
Net
loss
|
(555 | ) | (555 | ) | (555 | ) | ||||||||||||||||||||||||||||||
Total
comprehensive loss
|
$ | (599 | ) | |||||||||||||||||||||||||||||||||
BALANCE,
SEPTEMBER 30, 2006
|
5,526,485
|
55
|
22,204
|
(14,741 | ) | (422 | ) | (14,246 | ) | (140 | ) |
6,956
|
||||||||||||||||||||||||
Stock
options exercised
|
121,181
|
1
|
348
|
349
|
||||||||||||||||||||||||||||||||
Stock-based
compensation expense
|
132
|
132
|
||||||||||||||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||||||
Translation
adjustments
|
(86 | ) | (86 | ) | (86 | ) | ||||||||||||||||||||||||||||||
Net
income
|
1,669
|
1,669
|
1,669
|
|||||||||||||||||||||||||||||||||
Total
comprehensive income
|
$ |
1,583
|
||||||||||||||||||||||||||||||||||
BALANCE,
SEPTEMBER 30, 2007
|
5,647,666
|
$ |
56
|
$ |
22,684
|
$ | (13,072 | ) | $ | (508 | ) | (14,246 | ) | $ | (140 | ) | $ |
9,020
|
Year
Ended September
30,
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
income (loss)
|
$ |
1,669
|
$ | (555 | ) | $ |
800
|
|||||
Adjustments
to reconcile net income (loss) to cash provided by operating
activities:
|
||||||||||||
Depreciation
and amortization
|
928
|
832
|
697
|
|||||||||
Impairment
of trademark
|
39
|
—
|
—
|
|||||||||
Provision
for doubtful accounts and sales returns
|
25
|
(149 | ) |
3
|
||||||||
Loss
on disposal of equipment
|
—
|
8
|
21
|
|||||||||
Stock-based
compensation
|
132
|
67
|
47
|
|||||||||
Deferred
income taxes
|
111
|
36
|
—
|
|||||||||
Changes
in current assets and liabilities, net of effects of the acquisition
of
IDARS:
|
||||||||||||
Accounts
receivable
|
(320 | ) |
569
|
(479 | ) | |||||||
Inventories
|
(10 | ) |
22
|
13
|
||||||||
Prepaid
expenses and other
|
146
|
95
|
69
|
|||||||||
Accounts
payable and accrued expenses
|
797
|
(197 | ) | (75 | ) | |||||||
Deferred
revenue
|
4
|
247
|
67
|
|||||||||
Cash
provided by operating activities
|
3,521
|
975
|
1,163
|
|||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Purchases
of equipment and fixtures
|
(136 | ) | (912 | ) | (343 | ) | ||||||
Proceeds
from sale of equipment
|
8
|
2
|
4
|
|||||||||
Purchase
of IDARS business, net of cash acquired
|
(671 | ) | (4,575 | ) |
—
|
|||||||
Capitalized
software development costs
|
(81 | ) |
—
|
(43 | ) | |||||||
Decrease
(increase) in restricted cash
|
—
|
268
|
(122 | ) | ||||||||
Other
assets
|
(25 | ) | (9 | ) | (19 | ) | ||||||
Cash
used in investing activities
|
(905 | ) | (5,226 | ) | (523 | ) | ||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Proceeds
from exercise of stock options
|
349
|
181
|
82
|
|||||||||
(Repayments)
borrowings on line of credit
|
(1,000 | ) |
1,000
|
—
|
||||||||
Cash
(used in) provided by financing activities
|
(651 | ) |
1,181
|
82
|
||||||||
EFFECT
OF EXCHANGE RATE CHANGES ON CASH AND EQUIVALENTS
|
14
|
31
|
(82 | ) | ||||||||
INCREASE
(DECREASE) IN CASH AND EQUIVALENTS
|
1,979
|
(3,039 | ) |
640
|
||||||||
CASH
AND EQUIVALENTS, BEGINNING OF YEAR
|
1,862
|
4,901
|
4,261
|
|||||||||
CASH
AND EQUIVALENTS, END OF YEAR
|
$ |
3,841
|
$ |
1,862
|
$ |
4,901
|
||||||
SUPPLEMENTAL
CASH FLOW INFORMATION:
|
||||||||||||
Interest
paid
|
$ |
42
|
$ |
31
|
$ |
3
|
||||||
Income
taxes paid
|
$ |
4
|
$ |
6
|
$ |
—
|
||||||
Income
tax refunds received
|
$ |
—
|
$ |
—
|
$ |
63
|
2007
|
2006
|
2005
|
||||||||||
(in
thousands)
|
||||||||||||
Allowance
for doubtful accounts balance - beginning of year
|
$ |
193
|
$ |
294
|
$ |
230
|
||||||
Additions
to the allowance for doubtful accounts
|
57
|
11
|
75
|
|||||||||
Deductions
against the allowance for doubtful accounts
|
(27 | ) | (112 | ) | (11 | ) | ||||||
Allowance
for doubtful accounts balance - end of year
|
$ |
223
|
$ |
193
|
$ |
294
|
2007
|
2006
|
2005
|
||||||||||
(in
thousands)
|
||||||||||||
Sales
returns reserve balance - beginning of year
|
$ |
79
|
$ |
123
|
$ |
186
|
||||||
Additions
to the sales returns reserve
|
131
|
82
|
180
|
|||||||||
Deductions
against the sales returns reserve
|
(130 | ) | (126 | ) | (243 | ) | ||||||
Sales
returns reserve balance - end of year
|
$ |
80
|
$ |
79
|
$ |
123
|
2007
|
2006
|
2005
|
||||||||||
(in
thousands)
|
||||||||||||
Capitalized
and purchased software balance - beginning of year
|
$ |
473
|
$ |
583
|
$ |
937
|
||||||
Capitalized
software development costs
|
81
|
—
|
42
|
|||||||||
Capitalized
purchased software
|
—
|
180
|
—
|
|||||||||
Amortization
of capitalized software development costs and purchased
software
|
(159
|
) | (290 | ) | (396 | ) | ||||||
Capitalized
and purchased software balance - end of year
|
$ |
395
|
$ |
473
|
$ |
583
|
2007
|
2006
|
|||||||
(in
thousands)
|
||||||||
Maintenance
|
$ |
4,012
|
$ |
3,690
|
||||
Other
|
596
|
778
|
||||||
Total
|
4,608
|
4,468
|
||||||
Less:
Long-term portion of deferred maintenance
|
(122 | ) |
—
|
|||||
Current
portion of deferred revenue
|
$ |
4,486
|
$ |
4,468
|
2007
|
2006
|
|||||
Balance
at beginning of year
|
$ |
5,236
|
$ |
1,631
|
||
Acquisition
of IDARS business
|
784
|
3,605
|
||||
Balance
at end of year
|
$ |
6,020
|
$ |
5,236
|
Weighted
|
September
30,
2007
|
September
30,
2006
|
||||||||||||
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
|
$ 1,747
|
$ 1,671
|
$ 76
|
$ 1,666
|
$ 1,648
|
$ 18
|
|||||||
Purchased
software
|
5
|
700
|
381
|
319
|
700
|
245
|
455
|
|||||||
Patents
|
20
|
160
|
24
|
136
|
160
|
16
|
144
|
|||||||
Customer
lists
|
10
|
1,790
|
337
|
1,453
|
1,790
|
138
|
1,652
|
|||||||
Non-compete
agreements
|
4
|
640
|
254
|
386
|
640
|
99
|
541
|
|||||||
Trademark
|
2
|
21
|
—
|
21
|
60
|
—
|
60
|
|||||||
Trademark
|
indefinite
|
285
|
—
|
285
|
285
|
—
|
285
|
|||||||
Total
|
8
Years
|
$ 5,343
|
$ 2,667
|
$ 2,676
|
$ 5,301
|
$ 2,146
|
$ 3,155
|
Years
Ending September
30,
|
|||||
2008
|
$ |
513
|
|||
2009
|
466
|
||||
2010
|
353
|
||||
2011
|
195
|
||||
2012
|
174
|
||||
Thereafter
|
690
|
||||
Total
estimated future amortization expense
|
$ |
2,391
|
2007
|
2006
|
2005
|
||||||||||
Quantity
of option shares not included
|
190,042
|
255,753
|
145,870
|
|||||||||
Weighted-average
exercise price
|
$ |
4.90
|
$ |
4.76
|
$ |
5.86
|
Current
assets
|
$ |
56
|
||
Property
and equipment, net
|
64
|
|||
Current
liabilities
|
(125 | ) | ||
Deferred
revenues
|
(1,190 | ) | ||
Goodwill
|
3,605
|
|||
Acquired
intangible assets:
|
||||
Existing
technology
|
180
|
|||
Customer
list
|
1,660
|
|||
Non-compete
agreement
|
540
|
|||
|
||||
Total
purchase price
|
$ |
4,790
|
3.
|
INVENTORIES
|
2007
|
2006
|
|||||||
(in
thousands)
|
||||||||
Raw
materials
|
$ |
32
|
$ |
18
|
||||
Finished
goods
|
16
|
19
|
||||||
Total
|
$ |
48
|
$ |
37
|
4.
|
ACCRUED
EXPENSES
|
2007
|
2006
|
|||||||
(in
thousands)
|
||||||||
Accrued
salaries and benefits
|
$ |
357
|
$ |
347
|
||||
Accrued
royalties and commissions
|
1,542
|
933
|
||||||
Accrued
professional fees
|
421
|
255
|
||||||
Other
|
519
|
283
|
||||||
Total
|
$ |
2,839
|
$ |
1,818
|
Years
Ending September
30,
|
|||||
2008
|
$ |
407
|
|||
2009
|
310
|
||||
2010
|
196
|
||||
2011
|
141
|
||||
Total
minimum lease payments
|
$ |
1,054
|
6.
|
FINANCING
ARRANGEMENTS
|
7.
|
INCOME
TAXES
|
2007
|
2006
|
2005
|
||||||||||
(in
thousands)
|
||||||||||||
Domestic
|
$ |
2,078
|
$ |
1,551
|
$ |
1,645
|
||||||
Foreign
|
(276 | ) | (2,070 | ) | (867 | ) | ||||||
Total
|
$ |
1,802
|
$ | (519 | ) | $ |
778
|
2007
|
2006
|
2005
|
||||||||||
(in
thousands)
|
||||||||||||
Current:
|
||||||||||||
Federal
|
$ |
12
|
$ |
—
|
$ | (12 | ) | |||||
State
|
9
|
—
|
(10 | ) | ||||||||
Foreign
|
1
|
—
|
—
|
|||||||||
22
|
—
|
(22 | ) | |||||||||
Deferred:
|
||||||||||||
Federal
|
138
|
(26 | ) | (18 | ) | |||||||
State
|
52
|
10
|
11
|
|||||||||
Foreign
|
—
|
(32 | ) |
—
|
||||||||
Change
in valuation allowance
|
(79 | ) |
84
|
7
|
||||||||
111
|
36
|
—
|
||||||||||
Total
provision (benefit)
|
$ |
133
|
$ |
36
|
$ | (22 | ) |
2007
|
2006
|
|||||||
(in
thousands)
|
||||||||
Deferred
tax liabilities:
|
||||||||
Goodwill
amortization
|
$ | (147 | ) | $ | (36 | ) | ||
Prepaid
expenses
|
(71 | ) | (58 | ) | ||||
Acquired
intangibles
|
(152 | ) | (356 | ) | ||||
(370 | ) | (450 | ) | |||||
Deferred
tax assets:
|
||||||||
Net
operating loss carryforwards
|
3,931
|
4,147
|
||||||
Research
and development credits
|
499
|
418
|
||||||
Accounts
and notes receivable reserves
|
84
|
144
|
||||||
Alternative
minimum tax credits
|
157
|
148
|
||||||
Depreciation
and amortization
|
734
|
182
|
||||||
Deferred
rent
|
92
|
95
|
||||||
Other
|
311
|
54
|
||||||
5,808
|
5,188
|
|||||||
Total
|
5,438
|
4,738
|
||||||
Valuation
allowance
|
(5,585 | ) | (4,774 | ) | ||||
Deferred
tax liability, net
|
$ | (147 | ) | $ | (36 | ) |
2007
|
2006
|
2005
|
||||||||||
Provision
at federal statutory rate
|
$ |
613
|
$ | (176 | ) | $ |
265
|
|||||
State,
net of federal impact
|
21
|
6
|
(7 | ) | ||||||||
Foreign
income taxes
|
(473 | ) | (76 | ) | (60 | ) | ||||||
Valuation
allowance increase (decrease)
|
(79 | ) |
350
|
7
|
||||||||
Extra-territorial
income exclusion
|
—
|
(72 | ) | (120 | ) | |||||||
Other
|
51
|
4
|
(107 | ) | ||||||||
Provision
(benefit) for income taxes
|
$ |
133
|
$ |
36
|
$ | (22 | ) |
8.
|
SHAREHOLDERS’
EQUITY
|
Year
Ended
|
|||||
September
30,
|
|||||
2005
|
|||||
(In
thousands)
|
|||||
Net
income, as reported
|
$ |
800
|
|||
Add:
|
|||||
Total
stock-based employee compensation expense included in net
income
|
47
|
||||
Less:
|
|||||
Total
stock-based employee compensation expense determined under fair
value base method for all awards, net of taxes
|
(590 | ) | |||
Pro
forma net income
|
$ |
257
|
|||
Basic
net income per share:
|
|||||
As
reported
|
$ |
0.15
|
|||
Pro
forma
|
$ |
0.05
|
|||
Diluted
net income per share:
|
|||||
As
reported
|
$ |
0.14
|
|||
Pro
forma
|
$ |
0.04
|
|||
Years
Ended September
30,
|
||||||||
2007
|
2006
|
|||||||
(In
thousands)
|
||||||||
Sales
and marketing
|
$ |
51
|
$ |
25
|
||||
Engineering
and product development
|
11
|
7
|
||||||
General
and administrative
|
70
|
35
|
||||||
$ |
132
|
$ |
67
|
2007
|
2006
|
|||||||
Expected
life
|
5
years
|
5
years
|
||||||
Expected
volatility
|
75.88%-83.34 | % | 95.91%-97.65 | % | ||||
Weighted
average volatility
|
77.63
|
% |
96.69
|
% | ||||
Risk-free
interest rate
|
4.48%-4.99 | % | 4.43%-5.03 | % | ||||
Dividend
yield
|
0.0 | % | 0.0 | % |
Weighted-
|
Weighted
-
Average
|
||||||||||||||
Number
of
|
Average
|
Remaining
|
Aggregate
|
||||||||||||
Options
|
Exercise
|
Contractual
|
Intrinsic
|
||||||||||||
Outstanding
|
Price
|
Term
|
Value
$(000)
|
||||||||||||
Outstanding,
October 1, 2004
|
919,970
|
$ |
2.17
|
||||||||||||
Granted
|
115,334
|
3.78
|
|||||||||||||
Canceled
|
(55,286 | ) |
3.06
|
||||||||||||
Exercised
|
(67,976 | ) |
1.21
|
||||||||||||
Outstanding,
September 30, 2005
|
912,042
|
2.39
|
|||||||||||||
Granted
|
100,000
|
4.14
|
|||||||||||||
Canceled
|
(16,325 | ) |
6.89
|
||||||||||||
Exercised
|
(143,401 | ) |
1.26
|
||||||||||||
Outstanding,
September 30, 2006
|
852,316
|
2.65
|
|||||||||||||
Granted
|
110,000
|
2.67
|
|||||||||||||
Canceled
|
(31,592 | ) |
4.38
|
||||||||||||
Exercised
|
(121,181 | ) |
2.88
|
||||||||||||
Outstanding,
September 30, 2007
|
809,543
|
$ |
2.55
|
5.42
|
$ |
1,650
|
|||||||||
Vested
or expected
to vest, September 30, 2007
|
797,844
|
$ |
2.54
|
5.19
|
$ |
1,636
|
|||||||||
Exercisable,
September 30, 2007
|
685,828
|
$ |
2.43
|
4.96
|
$ |
1,484
|
|||||||||
Exercisable,
September 30, 2006
|
771,908
|
$ |
2.50
|
Outstanding
|
Exercisable
|
|||||||||||||||||||||
Weighted-Average
|
Weighted-
|
Weighted-
|
||||||||||||||||||||
Remaining
|
Average
|
Average
|
||||||||||||||||||||
Exercise
|
Number
of
|
Contractual
|
Exercise
|
Exercise
|
||||||||||||||||||
Prices
|
Shares
|
Life
(Years)
|
Price
|
Shares
|
Price
|
|||||||||||||||||
$0.74 – $3.10 |
544,602
|
5.12
|
$ |
1.59
|
479,618
|
$ |
1.48
|
|||||||||||||||
$3.11 – $5.76 |
250,713
|
6.23
|
4.35
|
191,982
|
4.43
|
|||||||||||||||||
$7.59 |
14,228
|
2.49
|
7.59
|
14,228
|
7.59
|
|||||||||||||||||
809,543
|
5.42
|
$ |
2.55
|
685,828
|
$ |
2.43
|
9.
|
RETIREMENT
SAVINGS
PLAN
|
10.
|
SEGMENT
INFORMATION
|
2007
|
2006
|
2005
|
||||
Business
Intelligence Solutions (including Monarch,
Monarch
Data Pump, Monarch|RMS, Datawatch|ES, Datawatch|Researcher,
Visual|Insight, iMergence and VorteXML)
|
67%
|
73%
|
74%
|
|||
Content
Management Solutions (including Datawatch|BDS
and Datawatch|MailManager)
|
14%
|
5%
|
0%
|
|||
Business
Service Management and Workflow Solutions (including Visual|QSM
and
Visual|HD)
|
19%
|
22%
|
26%
|
|||
100%
|
100%
|
100%
|
||||
International
|
||||||||||||||||
(Principally
|
Intercompany
|
|||||||||||||||
Domestic
|
U.K.)
|
Eliminations
|
Total
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Year
Ended September 30,
2007
|
||||||||||||||||
Total
revenue
|
$ |
18,521
|
$ |
7,800
|
$ | (1,062 | ) | $ |
25,259
|
|||||||
Operating
income (loss)
|
2,091
|
(356 | ) |
—
|
1,735
|
|||||||||||
Long-lived
assets
|
9,632
|
115
|
—
|
9,747
|
||||||||||||
Year
Ended September 30,
2006
|
||||||||||||||||
Total
revenue
|
$ |
15,110
|
$ |
6,676
|
$ | (975 | ) | $ |
20,811
|
|||||||
Operating
income (loss)
|
565
|
(1,099 | ) |
—
|
(534 | ) | ||||||||||
Long-lived
assets
|
8,806
|
881
|
—
|
9,687
|
||||||||||||
Year
Ended September 30,
2005
|
||||||||||||||||
Total
revenue
|
$ |
14,727
|
$ |
7,848
|
$ | (1,064 | ) | $ |
21,511
|
|||||||
Operating
income (loss)
|
1,640
|
(952 | ) |
—
|
688
|
|||||||||||
Long-lived
assets
|
3,456
|
94
|
—
|
3,550
|
11.
|
QUARTERLY
RESULTS
(UNAUDITED)
|
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
(in
thousands, except per share
amounts)
|
||||||||||||||||
Year
Ended September 30,
2007:
|
||||||||||||||||
Software
license and subscription revenue
|
$ |
3,438
|
$ |
3,257
|
$ |
4,091
|
$ |
4,066
|
||||||||
Maintenance
and service revenue
|
2,338
|
2,892
|
2,392
|
2,785
|
||||||||||||
Cost
of software licenses and subscriptions
|
537
|
560
|
691
|
680
|
||||||||||||
Cost
of maintenance and services
|
1,032
|
983
|
922
|
1,006
|
||||||||||||
Expenses
|
4,117
|
4,138
|
4,470
|
4,388
|
||||||||||||
Income
from operations
|
90
|
468
|
400
|
777
|
||||||||||||
Net
income
|
34
|
424
|
382
|
829
|
||||||||||||
Net
income per share - basic
|
$ |
0.01
|
$ |
0.08
|
$ |
0.07
|
$ |
0.15
|
||||||||
Net
income per share - diluted
|
$ |
0.01
|
$ |
0.07
|
$ |
0.06
|
$ |
0.14
|
||||||||
Year
Ended September 30,
2006:
|
||||||||||||||||
Software
license and subscription revenue
|
$ |
3,155
|
$ |
3,445
|
$ |
3,386
|
$ |
3,159
|
||||||||
Maintenance
and service revenue
|
1,593
|
1,949
|
1,958
|
2,166
|
||||||||||||
Cost
of software licenses and subscriptions
|
573
|
591
|
580
|
524
|
||||||||||||
Cost
of maintenance and services
|
841
|
964
|
1,000
|
1,144
|
||||||||||||
Expenses
|
3,284
|
3,631
|
4,055
|
4,158
|
||||||||||||
Income
(loss) from operations
|
50
|
208
|
(291 | ) | (501 | ) | ||||||||||
Net
income (loss)
|
64
|
227
|
(315 | ) | (531 | ) | ||||||||||
Net
income (loss) per share - basic
|
$ |
0.01
|
$ |
0.04
|
$ | (0.06 | ) | $ | (0.09 | ) | ||||||
Net
income (loss) per share - diluted
|
$ |
0.01
|
$ |
0.04
|
$ | (0.06 | ) | $ | (0.09 | ) |
Item
9.
|
CHANGES
IN AND
DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
CONTROLS
AND
PROCEDURES
|
(a)
|
Evaluation
of Disclosure
Controls and Procedures
|
(b)
|
Changes
in Internal
Controls
|
Item
9B.
|
OTHER
INFORMATION
|
(a)
|
1. Consolidated
Financial Statements
|
(1)
|
3.1
|
Restated
Certificate of Incorporation of the Registrant (Exhibit
3.2)
|
||
(6)
|
3.2
|
Certificate
of Amendment of Restated Certificate of Incorporation of the Registrant
(Exhibit 3.2)
|
||
(1)
|
3.3
|
By-Laws,
as amended, of the Registrant (Exhibit 3.3)
|
||
(1)
|
4.1
|
Specimen
certificate representing the Common Stock (Exhibit 4.4)
|
||
(4)
|
4.2
|
Warrant
to Purchase Stock issued to Silicon Valley Bank, dated January 17,
2001
(Exhibit 4.1)
|
||
(6)
|
4.3
|
Warrant
to Purchase Stock issued to Silicon Valley Bank, dated October 30,
2001
(Exhibit 4.3)
|
||
(1)
|
10.1*
|
1987
Stock Plan (Exhibit 10.7)
|
||
(11)
|
10.2*
|
Form
of Incentive Stock Option Agreement of the Registrant (Exhibit
10.2)
|
||
(11)
|
10.3*
|
Form
of Nonqualified Stock Option Agreement of the Registrant (Exhibit
10.3)
|
||
(1)
|
10.4
|
Software
Development and Marketing Agreement by and between Personics Corporation
and Raymond Huger, dated January 19, 1989 (Exhibit
10.12)
|
||
(9)
|
10.5
|
Option
Purchase Agreement by and among Datawatch Corporation, Personics
Corporation and Raymond J. Huger dated April 29, 2005. (Exhibit
10.1)
|
||
(8)
|
10.6
|
Distribution
Agreement, dated December 10, 1992, by and between Datawatch Corporation
and Ingram Micro Inc. (Exhibit 10.2)
|
||
(2)
|
10.7*
|
1996
Non-Employee Director Stock Option Plan, as amended on December 10,
1996
(Exhibit 10.30)
|
||
(2)
|
10.8*
|
1996
International Employee Non-Qualified Stock Option Plan (Exhibit
10.31)
|
||
(8)
|
10.9*
|
1996
Stock Plan as amended as of March 7, 2003 (Exhibit
10.1)
|
||
(3)
|
10.10
|
Indemnification
Agreement between Datawatch Corporation and James Wood, dated January
12,
2001 (Exhibit 10.1)
|
||
(3)
|
10.11
|
Indemnification
Agreement between Datawatch Corporation and Richard de J. Osborne,
dated
January 12, 2001 (Exhibit 10.2)
|
||
(5)
|
10.12
|
Form
of Indemnification Agreement between Datawatch Corporation and each
of its
Non-Employee Directors (Exhibit 10.1)
|
||
(5)
|
10.13*
|
Advisory
Agreement, dated April 5, 2001, by and between Datawatch Corporation
and
Richard de J. Osborne (Exhibit 10.2)
|
||
(6)
|
10.14*
|
Executive
Agreement, dated July 9, 2001, between the Company and Robert W.
Hagger
(Exhibit 10.24)
|
||
(7)
|
10.15*
|
Executive
Agreement, dated April 25, 2002, by and between Datawatch Corporation
and
John Kitchen (Exhibit 10.2)
|
||
(7)
|
10.16
|
Professional
Services Agreement, dated May 16, 2002, by and between Vested Development
Inc. and Datawatch Corporation (Exhibit
10.3)
|
(13)
|
10.17*
|
Severance
Agreement between Datawatch Corporation and John Hulburt, dated November
19, 2004. (Exhibit 10.19)
|
||
(10)
|
10.18
|
Stock
Purchase Agreement among Datawatch Corporation, Mergence Technologies
Corporation and the Management Sellers, dated as of August 11, 2005
(Exhibit 2.1).
|
||
(10)
|
10.19
|
Form
of Stock Purchase Agreement among Datawatch Corporation, Mergence
Technologies Corporation and the Non-Management Sellers, dated as
of
August 11, 2005 (Exhibit 2.2)
|
||
(11)
|
10.20*
|
Description
of Fiscal Executive Sales Incentive Plan (Exhibit 10.4)
|
||
(12)
|
10.21*
|
Form
of Lock-up Agreement between Datawatch Corporation and each Executive
Officer of Datawatch Corporation, dated September 26, 2005 (Exhibit
99.1)
|
||
(12)
|
10.22
|
Sublease
Agreement, dated September 28, 2005, between Tellabs Operations,
Inc., and
Datawatch Corporation (Exhibit 99.2)
|
||
(14)
|
10.23
|
February
2006 Amendment to Software Development and Marketing Agreement, dated
February 21, 2006 by and among the Company, Personics Corporation,
Raymond
J. Huger and Math Strategies (Exhibit 10.1)
|
||
(14)
|
10.24
|
Amendment
to Option Purchase Agreement, dated February 21, 2006 by and among
the
Company, Personics Corporation, Raymond J. Huger and Math Strategies
(Exhibit 10.2)
|
||
(15)
|
10.25*
|
2006
Equity Compensation and Incentive Plan
|
||
(20)
|
10.26*
|
Form
of 2006 Non-Qualified Stock Option Agreement for Directors (Exhibit
10.26)
|
||
(20)
|
10.27*
|
Form
of 2006 Non-Qualified Stock Option Agreement for Officers (Exhibit
10.27)
|
||
(20)
|
10.28*
|
Form
of 2006 Incentive Stock Option Agreement for Officers (Exhibit
10.28)
|
||
(16)
|
10.29
|
Asset
Purchase Agreement dated as of March 10, 2006 between Datawatch
Corporation and ClearStory Systems, Inc. (Exhibit 10.1)
|
||
(17)
|
10.30
|
Loan
and Security Agreement dated April 20, 2006 between Silicon Valley
Bank, Datawatch Corporation, and Datawatch Technologies Corporation
(Exhibit 10.1)
|
||
(18)
|
10.31
|
First
Loan Modification Agreement dated August 2, 2006 between Silicon
Valley
Bank, Datawatch Corporation and Datawatch Technologies Corporation
(Exhibit 10.1)
|
||
(19)
|
10.32
|
Second
Loan Modification Agreement dated November 27, 2006 between Silicon
Valley
Bank, Datawatch Corporation, and Datawatch Technologies Corporation
(Exhibit 10.1)
|
||
(21)
|
10.33*
|
Executive
Agreement, dated March 26, 2007, between Datawatch Corporation and
Murray
Fish (Exhibit 10.1)
|
||
(22)
|
10.34*
|
Form
of Restricted Stock Unit Agreement for Directors (Exhibit
10.1)
|
||
(23)
|
10.35*
|
Management
Consulting Agreement dated October 22, 2007 by and between Robert
W.
Hagger and Datawatch Corporation (Exhibit 10.1)
|
||
21.1
|
Subsidiaries
of the Registrant (filed herewith)
|
|||
23.1
|
Consent
of Independent Registered Pubic Accounting Firm (filed
herewith)
|
|||
31.1
|
Certification
of the Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002. (filed herewith)
|
|||
31.2
|
Certification
of the Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002. (filed herewith)
|
|||
32.1
|
Certification
of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350,
as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(furnished herewith)
|
|||
32.2
|
Certification
of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350,
as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(furnished herewith)
|
*
|
Indicates
a management contract or compensatory plan or
contract.
|
(1)
|
Previously
filed as an exhibit to Registration Statement 33-46290 on Form S-1
and
incorporated herein by reference (the number given in parenthesis
indicates the corresponding exhibit in such Form S-1).
|
|
(2)
|
Previously
filed as an exhibit to Registrant’s Annual Report on Form 10-K for the
fiscal year ended September 30, 1996 and incorporated herein by reference
(the number given in parenthesis indicates the corresponding exhibit
in
such Form 10-K).
|
|
(3)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated
February 2, 2001 and incorporated herein by reference (the number
in
parenthesis indicates the corresponding exhibit in such Form
8-K).
|
|
(4)
|
Previously
filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the
quarter ended December 31, 2000 and incorporated herein by reference
(the
number given in parenthesis indicates the corresponding exhibit in
such
Form 10-Q).
|
|
(5)
|
Previously
filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2001 and incorporated herein by reference
(the
number given in parenthesis indicates the corresponding exhibit in
such
Form 10-Q).
|
(6)
|
Previously
filed as an exhibit to Registrant’s Annual Report on Form 10-K for the
fiscal year ended September 30, 2001 and incorporated herein by reference
(the number given in parenthesis indicates the corresponding exhibit
in
such Form 10-K).
|
|
(7)
|
Previously
filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2002 and incorporated herein by reference
(the
number given in parenthesis indicates the corresponding exhibit in
such
Form 10-Q).
|
|
(8)
|
Previously
filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2003 and incorporated herein by reference
(the
number given in parenthesis indicates the corresponding exhibit in
such
Form 10-Q).
|
|
(9)
|
Previously
filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2004 and incorporated herein by reference
(the
number given in parenthesis indicates the corresponding exhibit is
such
Form 10-Q).
|
|
(10)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated
August 20, 2004 and incorporated herein by reference (the number
in
parenthesis indicates the corresponding exhibit in such Form
8-K).
|
|
(11)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated
November 2, 2004 and incorporated herein by reference (the number
in
parenthesis indicates the corresponding exhibit in such Form
8-K).
|
|
(12)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated
September 26, 2005 and incorporated herein by reference (the number
in
parenthesis indicates the corresponding exhibit in such Form
8-K).
|
|
(13)
|
Previously
filed as an exhibit to Registrant’s Annual Report on Form 10-K for the
fiscal year ended September 30, 2005 and incorporated herein by reference
(the number given in parenthesis indicates the corresponding exhibit
in
such Form 10-K).
|
|
(14)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated
February 21, 2006 and incorporated herein by reference (the number
in
parenthesis indicates the corresponding exhibit in such Form
8-K).
|
|
(15)
|
Previously
filed as Appendix A to Registrant’s Definitive Proxy Statement dated
January 30, 2006 and incorporated herein by reference.
|
|
(16)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated March
10, 2006 and incorporated herein by reference (the number in parenthesis
indicates the corresponding exhibit in such Form 8-K).
|
|
(17)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated April
20, 2006 and incorporated herein by reference (the number in parenthesis
indicates the corresponding exhibit in such Form 8-K).
|
|
(18)
|
Previously
filed as an exhibit to Registrant’s Quarterly Report on Form 10-Q for the
quarter ended June 20, 2006 and incorporated herein by reference
(the
number in parenthesis indicates the corresponding exhibit in such
Form
10-Q).
|
|
(19)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated
November 27, 2006 and incorporated herein by reference (the number
in
parenthesis indicates the corresponding exhibit in such Form
8-K).
|
|
(20)
|
Previously
filed as an exhibit to Registrant’s Annual Report on Form 10-K for the
fiscal year ended September 30, 2006 and incorporated herein by reference
(the number given in parenthesis indicates the corresponding exhibit
in
such Form 10-K).
|
|
(21)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated March
26, 2007 and incorporated herein by reference (the number in parenthesis
indicates the corresponding exhibit in such Form 8-K).
|
|
(22)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated
August 2, 2007 and incorporated herein by reference (the number in
parenthesis indicates the corresponding exhibit in such Form
8-K).
|
|
(23)
|
Previously
filed as an exhibit to Registrant’s Current Report on Form 8-K dated
October 23, 2007 and incorporated herein by reference (the number
in
parenthesis indicates the corresponding exhibit in such Form
8-K).
|
Datawatch
Corporation
|
||||
Date:
|
December
31, 2007
|
By:
|
/s/
Robert W. Hagger
|
|
Robert
W. Hagger
|
||||
President,
Chief Executive Officer
and
Director
|
SIGNATURE
|
TITLE
|
DATE
|
||
/s/
Robert W. Hagger
|
President,
Chief Executive Officer and Director
|
December
31, 2007
|
||
Robert
W. Hagger
|
(Principal
Executive Officer)
|
|||
/s/
Murray P. Fish
|
Vice
President of Finance, Chief Financial Officer,
|
December
31, 2007
|
||
Murray
P. Fish
|
Treasurer
and Assistant Secretary
|
|||
(Principal
Financial and Accounting Officer)
|
||||
/s/
Richard de J. Osborne
|
Chairman
of the Board
|
December
31, 2007
|
||
Richard
de J. Osborne
|
||||
/s/
Kenneth P. Bero
|
Director | December 31, 2007 | ||
Kenneth
P. Bero
|
||||
/s/
Thomas H. Kelly
|
Director
|
December
31, 2007
|
||
Thomas
H. Kelly
|
||||
/s/
Terry W. Potter
|
Director
|
December
31, 2007
|
||
Terry
W. Potter
|
||||
/s/
David T. Riddiford
|
Director
|
December
31, 2007
|
||
David
T. Riddiford
|
||||
/s/
William B. Simmons, Jr.
|
Director
|
December
31, 2007
|
||
William
B. Simmons, Jr.
|
||||
/s/
James Wood
|
Director
|
December
31, 2007
|
||
James
Wood
|