Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.1.9
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Schedule of income before income taxes
The components of loss before income taxes consist of the following (in thousands):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Loss before income taxes:
 

 
 

 
 

Domestic
$
(26,271
)
 
$
(18,450
)
 
$
(48,582
)
Foreign
(2,636
)
 
(1,167
)
 
(773
)
Total loss before income taxes
$
(28,907
)
 
$
(19,617
)
 
$
(49,355
)
Schedule of provision for income tax expense (benefit)
 
Years Ended December 31,
 
2014
 
2013
 
2012
Loss before income taxes:
 

 
 

 
 

Domestic
$
(26,271
)
 
$
(18,450
)
 
$
(48,582
)
Foreign
(2,636
)
 
(1,167
)
 
(773
)
Total loss before income taxes
$
(28,907
)
 
$
(19,617
)
 
$
(49,355
)

The provision for income tax expense (benefit) consists of the following (in thousands):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Current:
 

 
 

 
 

U.S. Federal
$
(122
)
 
$
(627
)
 
$
(2,461
)
State
35

 
28

 
30

Foreign
(96
)
 

 

Total current
(183
)
 
(599
)
 
(2,431
)
Deferred:
 

 
 

 
 

U.S. Federal
(5,693
)
 
(2,475
)
 
6,972

State
(562
)
 
(322
)
 
(106
)
Foreign
(126
)
 

 

Total deferred
(6,381
)
 
(2,797
)
 
6,866

Total provision for income tax expense (benefit)
$
(6,564
)
 
$
(3,396
)
 
$
4,435

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,
 
2014
 
2013
 
2012
Expected income tax expense (benefit)
$
(9,828
)
 
$
(6,671
)
 
$
(16,805
)
State income taxes, net of federal tax effect
(347
)
 
(549
)
 
(669
)
Change in tax rate
20

 
1

 
69

Federal R&D credit
(88
)
 
(57
)
 

Change in valuation allowance
2,957

 
3,659

 
13,957

Goodwill impairment

 

 
7,554

Foreign tax
690

 
108

 
187

Other, net
32

 
113

 
142

Total provision for income tax expense (benefit)
$
(6,564
)
 
$
(3,396
)
 
$
4,435

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,
 
2014
 
2013
Deferred tax assets:
 

 
 

Inventory provisions and uniform capitalization
$
35

 
$
225

Accounts receivable allowances
20

 
73

Fixed assets

 
244

Non-qualified stock option and restricted stock expense
2,176

 
2,367

Deferred maintenance revenue
221

 
726

Loss and credit carryforwards of U.S. subsidiary
19,153

 
15,502

Loss carryforward of foreign subsidiaries
221

 
1,107

Other accruals and reserves
907

 
880

Other
33

 
75

Total deferred tax assets before valuation allowance
22,766

 
21,199

Less valuation allowance
(19,916
)
 
(18,110
)
Total deferred tax assets
$
2,850

 
$
3,089

Deferred tax liabilities:
 

 
 

Acquired intangibles
$
(3,865
)
 
$
(3,029
)
Fixed Assets
(100
)
 

Total deferred tax liabilities
$
(3,965
)
 
$
(3,029
)
Total net deferred tax assets (liabilities)
$
(1,115
)
 
$
60

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,
 
2014
 
2013
Gross unrecognized tax benefits at beginning of year
$
1,036

 
$
1,017

Increases related to:
 

 
 

Prior year income tax positions

 
97

Current year income tax positions
64

 
84

Decreases related to:
 

 
 

Prior year income tax positions - closure of statute of limitations
(200
)
 
(162
)
Gross unrecognized tax benefits at end of year
$
900

 
$
1,036