Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.3.1.900
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Schedule of income before income taxes
The components of loss before income taxes consist of the following (in thousands):
 
Year Ended December 31,
 
2015
 
2014
 
2013
Loss before income taxes:
 

 
 

 
 

Domestic
$
(26,889
)
 
$
(26,271
)
 
$
(18,450
)
Foreign
(2,639
)
 
(2,636
)
 
(1,167
)
Total loss before income taxes
$
(29,528
)
 
$
(28,907
)
 
$
(19,617
)
Schedule of provision for income tax expense (benefit)
The provision for income tax expense (benefit) consists of the following (in thousands):
 
Year Ended December 31,
 
2015
 
2014
 
2013
Current:
 

 
 

 
 

U.S. Federal
$
(3
)
 
$
(122
)
 
$
(627
)
State
27

 
35

 
28

Foreign
(817
)
 
(96
)
 

Total current
(793
)
 
(183
)
 
(599
)
Deferred:
 

 
 

 
 

U.S. Federal
1

 
(5,693
)
 
(2,475
)
State
(47
)
 
(562
)
 
(322
)
Foreign

 
(126
)
 

Total deferred
(46
)
 
(6,381
)
 
(2,797
)
Total provision for income tax expense (benefit)
$
(839
)
 
$
(6,564
)
 
$
(3,396
)
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):
 
Year Ended December 31,
 
2015
 
2014
 
2013
Expected income tax expense (benefit)
$
(10,040
)
 
$
(9,828
)
 
$
(6,671
)
State income taxes, net of federal tax effect
(830
)
 
(347
)
 
(549
)
Change in tax rate
48

 
20

 
1

Federal R&D credit
(82
)
 
(88
)
 
(57
)
Change in valuation allowance
9,906

 
2,957

 
3,659

Foreign tax
80

 
690

 
108

Other, net
79

 
32

 
113

Total provision for income tax expense (benefit)
$
(839
)
 
$
(6,564
)
 
$
(3,396
)
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,
 
2015
 
2014
Deferred tax assets:
 

 
 

Inventory provisions and uniform capitalization
$
24

 
$
35

Accounts receivable allowances
9

 
20

Non-qualified stock option and restricted stock expense
1,789

 
2,176

Deferred maintenance revenue
76

 
221

Loss and credit carryforwards of U.S. subsidiary
28,366

 
19,153

Loss carryforward of foreign subsidiaries
382

 
221

Other accruals and reserves
1,108

 
907

Other
122

 
33

Total deferred tax assets before valuation allowance
31,876

 
22,766

Less valuation allowance
(28,928
)
 
(19,916
)
Total deferred tax assets
$
2,948

 
$
2,850

Deferred tax liabilities:
 

 
 

Acquired intangibles
$
(3,067
)
 
$
(3,865
)
Fixed Assets
(399
)
 
(100
)
Total deferred tax liabilities
$
(3,466
)
 
$
(3,965
)
Total net deferred tax assets (liabilities)
$
(518
)
 
$
(1,115
)
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):
 
Year Ended December 31,
 
2015
 
2014
Gross unrecognized tax benefits at beginning of year
$
900

 
$
1,036

Increases related to:
 

 
 

Prior year income tax positions
2

 

Current year income tax positions
68

 
64

Decreases related to:
 

 
 

Prior year income tax positions - closure of statute of limitations

 
(200
)
Gross unrecognized tax benefits at end of year
$
970

 
$
900