Annual report pursuant to Section 13 and 15(d)

Income Taxes Income Taxes (Tables)

v2.4.0.8
Income Taxes Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Schedule of income before income taxes
The components of income (loss) before income taxes consist of the following (in thousands):
 
Years Ended December 31,
 
2013
 
2012
 
2011
Income (loss) before income taxes:
 

 
 

 
 

Domestic
$
(8,827
)
 
$
(37,941
)
 
$
4,177

Foreign
(1,051
)
 
(1,847
)
 
492

Total income (loss) before income taxes
$
(9,878
)
 
$
(39,788
)
 
$
4,669

Schedule of provision for income tax expense (benefit)
 
Years Ended December 31,
 
2013
 
2012
 
2011
Income (loss) before income taxes:
 

 
 

 
 

Domestic
$
(8,827
)
 
$
(37,941
)
 
$
4,177

Foreign
(1,051
)
 
(1,847
)
 
492

Total income (loss) before income taxes
$
(9,878
)
 
$
(39,788
)
 
$
4,669


The provision for income tax expense (benefit) consists of the following (in thousands):
 
Years Ended December 31,
 
2013
 
2012
 
2011
Current:
 

 
 

 
 

U.S. Federal
$
(626
)
 
$
(2,461
)
 
$
3,103

State
(35
)
 
2

 
723

Foreign

 
(97
)
 
259

Total current
(661
)
 
(2,556
)
 
4,085

Deferred:
 

 
 

 
 

U.S. Federal
711

 
9,885

 
(1,633
)
State

 
1,537

 
(455
)
Foreign
(109
)
 
(57
)
 

Total deferred
602

 
11,365

 
(2,088
)
Total provision for income tax expense (benefit)
$
(59
)
 
$
8,809

 
$
1,997

Total income tax expense differs from the expected income tax expense
Total income tax expense (benefit) differs from the expected income tax expense (benefit), computed by applying the federal statutory rate of 34% to earnings before income taxes as follows (in thousands):
 
Years Ended December 31,
 
2013
 
2012
 
2011
Expected income tax expense (benefit)
$
(3,359
)
 
$
(13,528
)
 
$
1,587

State income taxes, net of federal tax effect
(318
)
 
(314
)
 
177

Change in tax rate
(39
)
 
170

 
102

Manufacturer's deduction

 

 
(155
)
Federal R&D credit
(95
)
 

 
(163
)
Tax-exempt interest income

 

 
(18
)
Change in valuation allowance
3,351

 
13,967

 
(97
)
Goodwill impairment

 
7,554

 

Non-deductible acquisition costs

 

 
363

Foreign tax
265

 
431

 

Other, net
136

 
529

 
201

Total provision for income tax expense (benefit)
$
(59
)
 
$
8,809

 
$
1,997

Schedule of tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities)
The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are presented below (in thousands):
 
December 31,
 
2013
 
2012
Deferred tax assets:
 

 
 

Inventory provisions and uniform capitalization
$
225

 
$
299

Accounts receivable allowances
73

 
57

Fixed assets
244

 
414

Non-qualified stock option and restricted stock expense
2,367

 
2,455

Deferred maintenance revenue
726

 
1,354

Unrecognized tax benefits
13

 
9

Loss and credit carryforwards of U.S. subsidiary
15,502

 
13,124

Loss carryforward of foreign subsidiaries and joint venture
1,332

 
1,103

Other accruals and reserves
880

 
374

Other
62

 
70

Total deferred tax assets before valuation allowance
21,424

 
19,259

Less valuation allowance
(18,110
)
 
(14,988
)
Total deferred tax assets
$
3,314

 
$
4,271

Deferred tax liabilities:
 

 
 

Acquired intangibles
(3,029
)
 
(3,425
)
Total deferred tax liabilities
$
(3,029
)
 
$
(3,425
)
Total net deferred tax assets
$
285

 
$
846

Reconciliation of the beginning and ending amounts of gross unrecognized tax benefits
A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits for the years ended December 31 is presented in the table below (in thousands):
 
Years Ended December 31,
 
2013
 
2012
Gross unrecognized tax benefits at beginning of year
$
1,017

 
$
977

Increases related to:
 

 
 

Prior year income tax positions
97

 
37

Current year income tax positions
84

 
3

Decreases related to:
 

 
 

Prior year income tax positions - closure of statute of limitations
(162
)
 

Gross unrecognized tax benefits at end of year
$
1,036

 
$
1,017