Bunt foul caught by catcher - out or not?

[tsbetts]

This situation happened tonight.

The batter attempted a bunt with no strikes. The bunt went up in the air about 6-10 inches directly in front of the catcher behind home plate. The catcher leaned forward and caught the ball on the way down.

The question is - is the batter out or is this a foul tip? I always thought the rule was if the ball did not elevate above the batter's head, then it was a foul tip but the umpire ruled it an out tonight.