Note 16 - Restatement of Financial Statements for the periods ended September 30, 2010, December 31, 2010, March 31, 2011 and June 30, 2011

12 Months Ended

Sep. 30, 2011

Accounting Changes and Error Corrections [Text Block]

16. Restatement of Financial Statements for the periods ended September 30, 2010, December 31, 2010, March 31, 2011 and June 30, 2011

The Company has restated its Consolidated Statements of Operations for the year ended September 30, 2010, and the three months ended December 31, 2010,the three months and six months ended March 31, 2011 and the three months and nine months ended June 30, 2011 to reflect adjustments and reclassifications of revenue and cost of sales, in connection with the identification of saless that are maintenance and support services provided by third parties where the Company is not the primary obligor of the service, which requires presentation of the revenue reported by the Company net of the cost of the services as opposed to recognition of the gross sales value of the services. In addition, the Company identified certain other services provided pursuant to third party contracts for which the Company is the primary obligor and reported these services correctly at the gross sales value; however these services were reported as product revenue and should have been included as service revenue. We have therefore, reclassified both the revenue and cost of sales for these services from product revenue and product cost of sales to service revenue and service cost of sales.

The adjustments made to the restated financial statements referred to above did not affect gross profit, income before taxes, net income, cash flow, total assets, total liabilities, retained earnings or total shareholder equity

The tables below show the impact to the balance sheets and statements of operations for the restated periods.

September 30, 2010

Restated Consolidated Statements of Operations

	Year ended September 30, 2010
	As reported		Restatement Adjustment			Restated
	(Amounts in thousands except per share date)
Sales:
Product	$	78,743	$	(9,109	)	$	69,634
Services		16,275		4,203			20,478
Total sales		95,018		(4,906	)		90,112

Cost of sales:
Product		67,385		(7,924	)		59,461
Services		10,442		3,018			13,460
Total cost of sales		77,827		(4,906	)		72,921
Gross profit		17,191		-			17,191

Operating Expenses		16,049		-			16,049
Operating income		1,142		-			1,142

Total other income (expense), net		7		-			7
Income before income taxes		1,149		-			1,149
Income tax expense		235		-			235
Net income	$	914		-		$	914
Net income per share – basic	$	0.26		-		$	0.26
Weighted average shares outstanding – basic		3,538		-			3,538
Net income per share – diluted	$	0.25		-		$	0.25
Weighted average shares outstanding – diluted		3,567		-			3,567

December 31, 2010

Restated Consolidated Statements of Operations

	For the three months ended December 31, 2010 (unaudited)
	As reported			Restatement Adjustment			Restated
	(Amounts in thousands except for per share data)
Sales:
Product	$	17,424		$	(2,132	)	$	15,292
Services		4,686			649			5,335
Total sales		22,110			(1,483	)		20,627

Cost of sales:
Product		15,293			(1,878	)		13,415
Services		2,289			395			2,684
Total cost of sales		17,582			(1,483	)		16,099
Gross profit		4,528			-			4,528

Operating expenses		3,885			-			3,885
Operating income		643			-			643
Other expense, net		(21	)		-			(21	)
Income before income taxes		622			-			622
Income tax expense		233			-			233
Net income	$	389			-		$	389
Net income per share – basic	$	0.11			-		$	0.11
Weighted average shares outstanding – basic		3,485			-			3,485
Net income per share – diluted	$	0.11			-		$	0.11
Weighted average shares outstanding – diluted		3,521			-			3,521

March 31, 2011

Restated Consolidated Statements of Operations

	Three months ended March 31, 2011 (unaudited)									Six months ended March 31, 2011 (unaudited)
	As reported			Restatement Adjustment			Restated			As reported			Restatement Adjustment			Restated
	(Amounts in thousands except for per share data)
Sales:
Product	$	15,726		$	(2,959	)	$	12,767		$	33,150		$	(5,092	)	$	28,058
Services		3,483			1,379			4,862			8,169			2,029			10,198
Total sales		19,209			(1,580	)		17,629			41,319			(3,063	)		38,256

Cost of sales:
Product		12,457			(2,496	)		9,961			27,750			(4,374	)		23,376
Services		2,503			916			3,419			4,792			1,311			6,103
Total cost of sales		14,960			(1,580	)		13,380			32,542			(3,063	)		29,479
Gross profit		4,249			-			4,249			8,777			-			8,777

Operating expenses		3,818			-			3,818			7,703			-			7,703
Operating income		431			-			431			1,074			-			1,074

Other income (expense), net		(1	)		-			(1	)		(22	)		-			(22	)
Income before income taxes		430			-			430			1,052			-			1,052
Income tax expense		144			-			144			377			-			377
Net income	$	286			-		$	286		$	675			-		$	675
Net income per share – basic	$	0.08			-		$	0.08		$	0.19			-		$	0.19
Weighted average shares outstanding – basic		3,437			-			3,437			3,455			-			3,455
Net income per share – diluted	$	0.08			-		$	0.08		$	0.19			-		$	0.19
Weighted average shares outstanding – diluted		3,471			-			3,471			3,491			-			3,491

June 30, 2011

Restated Consolidated Statements of Operations

	Three months ended June 30, 2011 (unaudited)									Nine months ended June 30, 2011 (unaudited)
	As reported			Restatement Adjustment			Restated			As reported			Restatement Adjustment			Restated
	(Amounts in thousands except for per share data)
Sales:
Product	$	16,416		$	(1,690	)	$	14,726		$	49,566		$	(6,782	)	$	42,784
Services		3,265			798			4,063			11,434			2,827			14,261
Total sales		19,681			(892	)		18,789			61,000			(3,955	)		57,045

Cost of sales:
Product		13,690			(1,434	)		12,256			41,440			(5,809	)		35,631
Services		2,370			542			2,912			7,162			1,854			9,016
Total cost of sales		16,060			(892	)		15,168			48,602			(3,955	)		44,647
Gross profit		3,621			-			3,621			12,398			-			12,398

Operating expenses		3,892			-			3,892			11,595			-			11,595
Operating income (loss)		(271	)		-			(271	)		803						803

Other income (expense), net		(33	)		-			(33	)		(55	)		-			(55	)
Income (loss) before income taxes		(304	)		-			(304	)		748			-			748
Income tax expense (benefit)		(90	)		-			(90	)		287			-			287
Net income(loss)	$	(214	)		-		$	(214	)	$	461			-		$	461
Net income (loss) per share – basic	$	(0.06	)		-		$	(0.06	)	$	0.13			-		$	0.13
Weighted average shares outstanding – basic		3,428			-			3,428			3,446			-			3,446
Net income (loss) per share – diluted	$	(0.06	)		-		$	(0.06	)	$	0.13			-		$	0.13
Weighted average shares outstanding – diluted		3,428			-			3,428			3,485			-			3,485

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

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