-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NICFOPnxGX9Op5TG5yqOuFhgqpjxr7idAVyAm1B8cfAyiycTe6sIfk309YPSVWv1 /1rGrlzmB77eubkNl+sE1Q== 0000950134-06-018443.txt : 20060929 0000950134-06-018443.hdr.sgml : 20060929 20060929111132 ACCESSION NUMBER: 0000950134-06-018443 CONFORMED SUBMISSION TYPE: SC 13G PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20060929 DATE AS OF CHANGE: 20060929 GROUP MEMBERS: MERCURY FUND IV LTD GROUP MEMBERS: MERCURY FUND VI LTD GROUP MEMBERS: MERCURY FUND VII LTD GROUP MEMBERS: MERCURY MANAGEMENT LLC GROUP MEMBERS: MERCURY VENTURES II LTD GROUP MEMBERS: MERCURY VENTURES LTD SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: DATAWATCH CORP CENTRAL INDEX KEY: 0000792130 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 020405716 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: SC 13G SEC ACT: 1934 Act SEC FILE NUMBER: 005-44549 FILM NUMBER: 061115934 BUSINESS ADDRESS: STREET 1: 175 CABOT STREET STREET 2: SUITE 503 CITY: LOWELL STATE: MA ZIP: 01854-3633 BUSINESS PHONE: 978-441-2200 MAIL ADDRESS: STREET 1: 175 CABOT STREET STREET 2: SUITE 503 CITY: LOWELL STATE: MA ZIP: 01854-3633 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: HOWE KEVIN C CENTRAL INDEX KEY: 0001209253 FILING VALUES: FORM TYPE: SC 13G BUSINESS ADDRESS: STREET 1: 2707 HIBERNIA CITY: DALLAS STATE: TX ZIP: 75204 BUSINESS PHONE: 214 522 7909 SC 13G 1 d39984asc13g.htm SCHEDULE 13G sc13g
Table of Contents

 
 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549
Schedule 13G
(Rule 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
RULES 13d-1(b), (c), AND (d) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(b)
Datawatch Corporation
(Name of Issuer)
Common Stock, $0.01 par value
(Title of Class of Securities)
237917-20-8
(CUSIP Number)
September 20, 2006
(Date of Event Which Requires Filing of this Statement)
     Check the appropriate box to designate the rule pursuant to which this Schedule is filed:
     o Rule 13d-1(b)
     þ Rule 13d-1(c)
     o Rule 13d-1(d)

     * The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

     The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 
 


Table of Contents

                     
 
 
 
  Page  
  of   
17 

 

           
1   NAMES OF REPORTING PERSONS:

Mercury Fund IV, Ltd.
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
  I.R.S Identification No. 11-3669642
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):

  (a)   þ
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  Texas
       
  5   SOLE VOTING POWER:
     
NUMBER OF   75,818(1)
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   -0-
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   75,818(1)
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    -0-
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  75,818 (1)
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  1.37%(2)
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  PN
 
(1)   Kevin C. Howe (“Mr. Howe”) exercises voting and disposition power over such shares on behalf of Mercury Management, L.L.C. (“Mercury Management”), the General Partner of Mercury Ventures, Ltd. (“Mercury Ventures”), which is the General Partner of Mercury Fund IV, Ltd. (“Mercury IV”).
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
  of   
17 

 

           
1   NAMES OF REPORTING PERSONS:

Mercury Fund VI, Ltd.
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
  I.R.S Identification No. 20-2196404
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):

  (a)   þ
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  Texas
       
  5   SOLE VOTING POWER:
     
NUMBER OF   127,095(1)
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   -0-
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   127,095(1)
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    -0-
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  127,095(1)
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  2.31%(2)
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  PN
 
(1)   Kevin C. Howe (“Mr. Howe”) exercises voting and disposition power over such shares on behalf of Mercury Management, L.L.C. (“Mercury Management”), the General Partner of Mercury Ventures, Ltd. (“Mercury Ventures”), which is the General Partner of Mercury Fund VI, Ltd. (“Mercury VI”).
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
  of   
17 

 

           
1   NAMES OF REPORTING PERSONS:

Mercury Fund VII, Ltd.
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
  I.R.S Identification No. 20-4881368
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):

  (a)   þ
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  Texas
       
  5   SOLE VOTING POWER:
     
NUMBER OF   93,909(1)
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   -0-
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   93,909(1)
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    -0-
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  93,909(1)
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  1.70%(2)
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  PN
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures II, Ltd. (“Mercury Ventures II”), which is the General Partner of Mercury Fund VII, Ltd. (“Mercury VII”).
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
  of   
17 

 

           
1   NAMES OF REPORTING PERSONS:

Mercury Ventures, Ltd.
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
  I.R.S Identification No. 75-2796235
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):

  (a)   þ
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  Texas
       
  5   SOLE VOTING POWER:
     
NUMBER OF   202,913 (1)
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   -0-
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   202,913 (1)
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    -0-
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  202,913 (1)
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  3.68%(2)
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  PN
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures, which is the General Partner of Mercury IV and Mercury VI. Includes 75,818 shares owned by Mercury IV and 127,095 shares owned by Mercury VI.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
  of   
17 

 

           
1   NAMES OF REPORTING PERSONS:

Mercury Ventures II, Ltd.
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
  I.R.S Identification No. 20-4736567
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):

  (a)   þ
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  Texas
       
  5   SOLE VOTING POWER:
     
NUMBER OF   93,909 (1)
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   -0-
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   93,909 (1)
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    -0-
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  93,909 (1)
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  1.70%(2)
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  PN
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures II, which is the General Partner of Mercury VII, the owner of all 93,909 shares.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
  of   
17 

 

           
1   NAMES OF REPORTING PERSONS:

Mercury Management, L.L.C.
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
  I.R.S Identification No. 75-2796232
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):

  (a)   þ
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  Texas
       
  5   SOLE VOTING POWER:
     
NUMBER OF   296,822(1)
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   -0-
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   296,822(1)
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    -0-
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  296,822(1)
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  5.38%(2)
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  OO
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures and Mercury Ventures II. Mercury Ventures is the General Partner of Mercury IV and Mercury VI. Mercury Ventures II is the General Partner of Mercury VII. Includes 75,818 shares owned by Mercury IV, 127,095 shares owned by Mercury VI and 93,909 shares owned by Mercury VII.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
  of   
17 

 

           
1   NAMES OF REPORTING PERSONS:
Kevin C. Howe
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):

  (a)   þ
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  United States
       
  5   SOLE VOTING POWER:
     
NUMBER OF   296,822(1)
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   -0-
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   296,822(1)
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    -0-
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  296,822(1)
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  5.38%(2)
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  IN
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures and Mercury Ventures II. Mercury Ventures is the General Partner of Mercury IV and Mercury VI. Mercury Ventures II is the General Partner of Mercury VII. Includes 75,818 shares owned by Mercury IV, 127,095 shares owned by Mercury VI and 93,909 shares owned by Mercury VII.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006, of which 1.37% are owned by Mercury IV, 2.31% are owned by Mercury VI and 1.70% are owned by Mercury VII.
*SEE INSTRUCTIONS BEFORE FILLING OUT!

 


TABLE OF CONTENTS

Item 1(a). Name of Issuer
Item 1(b). Address of Issuer’s Principal Executive Offices:
Item 2(a). Name of Person Filing
Item 2(b). Address of Principal Business Office or, if None, Residence
Item 2(c). Citizenship
Item 2(d). Title of Class of Securities
Item 2(e). CUSIP Number:
Item 3. If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b) or (c), check whether the person filing is a:
Item 4. Ownership
Item 5. Ownership of Five Percent or Less of a Class
Item 6. Ownership of More than Five Percent on Behalf of Another Person
Item 7. Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company
Item 8. Identification and Classification of Members of the Group
Item 9. Notice of Dissolution of Group
Item 10. Certification:
SIGNATURE


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
  of   
17 
Introduction
     Pursuant to Rule 13d-1(k)(1) of the Securities Exchange Act of 1934, Mercury Fund IV, Ltd. (“Mercury IV”), Mercury Fund VI, Ltd. (“Mercury VI”), Mercury Fund VII, Ltd. (“Mercury VII”), Mercury Ventures, Ltd. (“Mercury Ventures”), Mercury Ventures II, Ltd. (“Mercury Ventures II”), Mercury Management, L.L.C. (“Mercury Management”) and Kevin C. Howe (“Mr. Howe”) are making this joint filing on Schedule 13G.
Item 1(a).   Name of Issuer:
Datawatch Corporation, a Delaware corporation
Item 1(b).   Address of Issuer’s Principal Executive Offices:
271 Mill Road, Quorum Office Park, Chelmsford, MA 01824
Item 2(a).   Name of Person Filing:
Mercury Fund IV, Ltd.
Mercury Fund VI, Ltd.
Mercury Fund VII, Ltd.
Mercury Ventures, Ltd.
Mercury Ventures II, Ltd.
Mercury Management, L.L.C.
Kevin C. Howe
Item 2(b).   Address of Principal Business Office or, if None, Residence:
The principal business office of Mercury IV, Mercury VI, Mercury VII, Mercury Ventures, Mercury Ventures II, Mercury Management and Mr. Howe is 5416 Arbor Hollow, McKinney, Texas 75070
Item 2(c).   Citizenship:
Mercury IV’s place of organization is Texas
Mercury VI’s place of organization is Texas
Mercury VII’s place of organization is Texas
Mercury Ventures’ place of organization is Texas
Mercury Ventures II’s place of organization is Texas
Mercury Management’s place of organization is Texas

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
10 
  of   
17 
Mr. Howe is a citizen of the United States
Item 2(d).   Title of Class of Securities:
Common Stock, $0.01 par value per share
Item 2(e).   CUSIP Number:
237917-20-8
Item 3.   If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b) or (c), check whether the person filing is a:
Not Applicable.
Item 4.   Ownership:
Mercury IV
             
(a)
  Amount beneficially owned:     75,818 (1)
(b)
  Percent of class:     1.37 %(2)
(c)
  Number of shares as to which the person has:        
 
  (i) Sole power to vote or direct the vote     75,818 (1)
 
  (ii) Shared power to vote or direct the vote     -0-  
 
  (iii) Sole power to dispose or to direct the disposition of     75,818 (1)
 
  (iv) Shared power to dispose or to direct the disposition of     -0-  
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures, which is the General Partner of Mercury IV.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.
Mercury VI
             
(d)
  Amount beneficially owned:     127,095 (1)
(e)
  Percent of class:     2.31 %(2)
(f)
  Number of shares as to which the person has:        
 
  (i) Sole power to vote or direct the vote     127,095 (1)
 
  (ii) Shared power to vote or direct the vote     -0-  
 
  (iii) Sole power to dispose or to direct the disposition of     127,095 (1)
 
  (iv) Shared power to dispose or to direct the disposition of     -0-  

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
11 
  of   
17 
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures, which is the General Partner of Mercury VI.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
12 
  of   
17 
             
(a)
  Amount beneficially owned:     93,909 (1)
(b)
  Percent of class:     1.70 %(2)
(c)
  Number of shares as to which the person has:        
 
  (i) Sole power to vote or direct the vote     93,909 (1)
 
  (ii) Shared power to vote or direct the vote     -0-  
 
  (iii) Sole power to dispose or to direct the disposition of     93,909 (1)
 
  (iv) Shared power to dispose or to direct the disposition of     -0-  
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures II, which is the General Partner of Mercury VII.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.
Mercury Ventures
             
(a)
  Amount beneficially owned:     202,913 (1)
(b)
  Percent of class:     3.68 %(2)
(c)
  Number of shares as to which the person has:        
 
  (i) Sole power to vote or direct the vote     202,913 (1)
 
  (ii) Shared power to vote or direct the vote     -0-  
 
  (iii) Sole power to dispose or to direct the disposition of     202,913 (1)
 
  (iv) Shared power to dispose or to direct the disposition of     -0-  
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures, which is the General Partner of Mercury IV and Mercury VI. Includes 75,818 shares owned by Mercury IV and 127,095 shares owned by Mercury VI.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.
Mercury Ventures II

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
13 
  of   
17 
             
(a)
  Amount beneficially owned:     93,909 (1)
(b)
  Percent of class:     1.70 %(2)
(c)
  Number of shares as to which the person has:        
 
  (i) Sole power to vote or direct the vote     93,909 (1)
 
  (ii) Shared power to vote or direct the vote     -0-  
 
  (iii) Sole power to dispose or to direct the disposition of     93,909 (1)
 
  (iv) Shared power to dispose or to direct the disposition of     -0-  
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures II, which is the General Partner of Mercury VII, the owner of all 93,909 shares.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006.

 


Table of Contents

                     
CUSIP No.
 
37245R107 
  Page  
14 
  of   
17 
Mercury Management
             
(a)
  Amount beneficially owned:     296,822 (1)
(b)
  Percent of class:     5.38 %(2)
(c)
  Number of shares as to which the person has:        
 
  (i) Sole power to vote or direct the vote     296,822 (1)
 
  (ii) Shared power to vote or direct the vote     -0-  
 
  (iii) Sole power to dispose or to direct the disposition of     296,822 (1)
 
  (iv) Shared power to dispose or to direct the disposition of     -0-  
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures and Mercury Ventures II. Mercury Ventures is the General Partner of Mercury IV and Mercury VI. Mercury Ventures II is the General Partner of Mercury VII. Includes 75,818 shares owned by Mercury IV, 127,095 shares owned by Mercury VI and 93,909 shares owned by Mercury VII.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006, of which 1.37% are owned by Mercury IV, 2.31% are owned by Mercury VI and 1.70% are owned by Mercury VII.
Mr. Howe
             
(a)
  Amount beneficially owned:     296,822 (1)
(b)
  Percent of class:     5.38 %(2)
(c)
  Number of shares as to which the person has:        
 
  (i) Sole power to vote or direct the vote     296,822 (1)
 
  (ii) Shared power to vote or direct the vote     -0-  
 
  (iii) Sole power to dispose or to direct the disposition of     296,822 (1)
 
  (iv) Shared power to dispose or to direct the disposition of     -0-  
 
(1)   Mr. Howe exercises voting and disposition power over such shares on behalf of Mercury Management, the General Partner of Mercury Ventures and Mercury Ventures II. Mercury Ventures is the General Partner of Mercury IV and Mercury VI. Mercury Ventures II is the General Partner of Mercury VII. Includes 75,818 shares owned by Mercury IV, 127,095 shares owned by Mercury VI and 93,909 shares owned by Mercury VII.
 
(2)   Assumes a total of 5,512,239 shares of common stock outstanding based on Datawatch Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006, of which 2.31% are owned by Mercury VI and 1.70% are owned by Mercury VII.
Item 5.   Ownership of Five Percent or Less of a Class:
If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following.

 


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CUSIP No.
 
37245R107 
  Page  
15 
  of   
17 
Not Applicable.
Item 6.   Ownership of More than Five Percent on Behalf of Another Person:
Not Applicable
Item 7.   Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company:
Not Applicable
Item 8.   Identification and Classification of Members of the Group:
The following lists each member of the group filing this Schedule 13G pursuant to Rule 13d-1(c):
Mercury Fund IV, Ltd.
Mercury Fund VI, Ltd.
Mercury Fund VII, Ltd.
Mercury Ventures, Ltd.
Mercury Ventures II, Ltd.
Mercury Management, L.L.C.
Kevin C. Howe
Item 9.   Notice of Dissolution of Group:
Not Applicable
Item 10.   Certification:
By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.
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CUSIP No.
 
37245R107 
  Page  
16 
  of   
17 
SIGNATURE
     After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
             
September 28, 2006   MERCURY FUND IV, LTD.
 
           
    By:   MERCURY VENTURES, LTD.
        General Partner
 
           
    By:   MERCURY MANAGEMENT, L.L.C.
        General Partner
 
           
 
      By:   /s/ Kevin C. Howe
 
           
 
      Name:   Kevin C. Howe
 
      Title:   Manager
 
           
September 28, 2006   MERCURY FUND VI, LTD.
 
           
    By:   MERCURY VENTURES, LTD.
        General Partner
 
           
    By:   MERCURY MANAGEMENT, L.L.C.
        General Partner
 
           
 
      By:   /s/ Kevin C. Howe
 
           
 
      Name:   Kevin C. Howe
 
      Title:   Manager
 
           
September 28, 2006   MERCURY FUND VII, LTD.
 
           
    By:   MERCURY VENTURES II, LTD.
        General Partner
 
           
    By:   MERCURY MANAGEMENT, L.L.C.
        General Partner
 
           
 
      By:   /s/ Kevin C. Howe
 
           
 
      Name:   Kevin C. Howe
 
      Title:   Manager
 
           
September 28, 2006   MERCURY VENTURES, LTD.
 
           
    By:   MERCURY MANAGEMENT, L.L.C.
        General Partner
 
           
    By:   /s/ Kevin C. Howe
         
    Name:   Kevin C. Howe
    Title:   Manager

 


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CUSIP No.
 
37245R107 
  Page  
17 
  of   
17 
             
September 28, 2006   MERCURY VENTURES II, LTD.
 
           
    By:   MERCURY MANAGEMENT, L.L.C.
        General Partner
 
           
    By:   /s/ Kevin C. Howe
         
    Name:   Kevin C. Howe
    Title:   Manager
 
           
September 28, 2006   MERCURY MANAGEMENT, L.L.C.
 
           
    By:   /s/ Kevin C. Howe
         
    Name:   Kevin C. Howe
    Title:   Manager
         
     
September 28, 2006  /s/ Kevin C. Howe    
  Name:   Kevin C. Howe   
     
 

 


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EXHIBIT A
JOINT FILING AGREEMENT

 


Table of Contents

SCHEDULE 13G
JOINT FILING AGREEMENT
     This Agreement is dated as of September 28, 2006 by and between Mercury Fund IV, Ltd. (“Mercury IV”), Mercury Fund VI, Ltd. (“Mercury VI”), Mercury Fund VII, Ltd. (“Mercury VII”), Mercury Ventures, Ltd. (“Mercury Ventures”), Mercury Ventures II, Ltd. (“Mercury Ventures II”), Mercury Management, L.L.C. (“Mercury Management”) and Kevin C. Howe (“Mr. Howe”).
     WHEREAS, pursuant to paragraph (k)(1) of Rule 13d-1 promulgated under Section 13d(1) of the Securities Exchange Act of 1934, as amended (the “Act”), the parties hereto have decided to satisfy their filing obligations under the Act by a single joint filing.
     NOW, THEREFORE, the undersigned do hereby agree as follows:
     1. The Schedule 13G (the “Schedule 13G”) with respect to Datawatch Corporation, a Delaware corporation, to which this Agreement is attached as Exhibit A is filed on behalf of Mercury IV, Mercury VI, Mercury VII, Mercury Ventures, Mercury Ventures II, Mercury Management and Mr. Howe. Mercury VI, Mercury VII, Mercury Ventures and Mercury Management hereby authorize Mr. Howe to file the Schedule 13G on their behalf.
     2. Each of Mercury IV, Mercury VI, Mercury VII, Mercury Ventures, Mercury Ventures II, Mercury Management and Mr. Howe is responsible for the completeness and accuracy of the information concerning such person or entity contained therein; provided that each person or entity is not responsible for the completeness or accuracy of the information concerning any other person or entity making such filing.
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     IN WITNESS WHEREOF, the undersigned hereunto set their hands as of the date first above written.
                 
    MERCURY FUND IV, LTD.
 
               
    By:   MERCURY VENTURES, LTD.
        General Partner
 
               
        By:   MERCURY MANAGEMENT, L.L.C.
            General Partner
 
               
 
          By:   /s/ Kevin C. Howe
 
               
 
          Name:   Kevin C. Howe
 
          Title:   Manager
 
               
    MERCURY FUND VI, LTD.
 
               
    By:   MERCURY VENTURES, LTD.
        General Partner
 
               
        By:   MERCURY MANAGEMENT, L.L.C.
            General Partner
 
               
 
          By:   /s/ Kevin C. Howe
 
               
 
          Name:   Kevin C. Howe
 
          Title:   Manager
 
               
    MERCURY FUND VII, LTD.
 
               
    By:   MERCURY VENTURES, LTD.
        General Partner
 
               
        By:   MERCURY MANAGEMENT, L.L.C.
            General Partner
 
               
 
          By:   /s/ Kevin C. Howe
 
               
 
          Name:   Kevin C. Howe
 
          Title:   Manager
 
               
    MERCURY VENTURES, LTD.
 
               
    By:   MERCURY MANAGEMENT, L.L.C.
        General Partner
 
               
        By:   /s/ Kevin C. Howe
             
        Name:   Kevin C. Howe
        Title:   Manager

 


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    MERCURY VENTURES II, LTD.
 
               
    By:   MERCURY MANAGEMENT, L.L.C.
        General Partner
 
               
        By:   /s/ Kevin C. Howe
             
        Name:   Kevin C. Howe
        Title:   Manager
 
               
    MERCURY MANAGEMENT, L.L.C.
 
               
    By:   /s/ Kevin C. Howe
         
    Name:   Kevin C. Howe
    Title:   Manager
 
               
    /s/ Kevin C. Howe
     
    Name: Kevin C. Howe

 

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