LONG-LIVED ASSETS

3 Months Ended

Dec. 31, 2014

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.

Acquired Intellectual Property

In fiscal 2013, the Company acquired intellectual property from Panopticon totaling $7.9 million.  The acquired intellectual property assets are being amortized to cost of software licenses using the straight-line method over the estimated life of the asset of seven and a half years. 

During the three months ended December 31, 2014, as a result of an interim impairment test of goodwill and long-lived assets (see Note 4), the Company recorded an impairment charge of $4.3 million for the intellectual property acquired from Panopticon.

The following table presents the changes in the carrying amount of the intellectual property acquired from Panopticon, which is included under the caption “Acquired intellectual property, net” in our consolidated balance sheets, for the three months ended December 31, 2014 (in thousands):

	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Balance at September 30, 2014	$	7,900	$	(1,142)	$	6,758
Impairment charge		(4,338)		-		(4,338)
Amortization expense		-		(263)		(263)
Balance at December 31, 2014	$	3,562	$	(1,405)	$	2,157

Other Intangible Assets

Other intangible assets consist of trade names, patents and customer lists acquired from Panopticon. The values allocated to these intangible assets are amortized using the straight-line method over the estimated useful life of the related asset.

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 $6.0 million for the customer lists acquired from Panopticon.

The following table presents the changes in the carrying amount of the customer lists acquired from Panopticon, which is included under the caption “Other intangible assets, net” in our consolidated balance sheets, for the three months ended December 31, 2014 (in thousands):

	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Balance at September 30, 2014	$	8,990	$	(2,047)	$	6,943
Impairment charge		(5,973)		-		(5,973)
Amortization expense		-		(161)		(161)
Balance at December 31, 2014	$	3,017	$	(2,208)	$	809

Other intangible assets at December 31, 2014 and September 30, 2014 consist of the following (in thousands):

December 31, 2014
Identified	Weighted		Gross
Intangible	Average		Carrying		Impairment		Accumulated		Net Carrying
Asset	Useful Life		Amount		Charge		Amortization		Amount
	(In years)
Patents	20	$	160	$	-	$	(83)	$	77
Customer lists	14		8,990		(5,973)		(2,208)		809
Trade names	3		120		-		(64)		56
Total		$	9,270	$	(5,973)	$	(2,355)	$	942
September 30, 2014
Identified	Weighted		Gross
Intangible	Average		Carrying		Impairment		Accumulated		Net Carrying
Asset	Useful Life		Amount		Charge		Amortization		Amount
	(In years)
Patents	20	$	160	$	-	$	(81)	$	79
Customer lists	14		8,990		-		(2,047)		6,943
Trade names	3		120		-		(52)		68
Total		$	9,270	$	-	$	(2,180)	$	7,090