Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Provision for (Benefit from) Income Taxes

The provision for (benefit from) income taxes on income (loss) from operations for fiscal 2019 and 2018 consists of the following (in thousands):

	2019		2018
Federal:
Current	$	—	$	(313	)
Deferred		—		—
		—		(313	)
State:
Current		4		5
Deferred		—		—
		4		5
Foreign:
Current		1,694		1,041
Deferred		1,661		(7,909	)
		3,355		(6,868	)
Total	$	3,359	$	(7,176	)

Income (Loss) Before Income Taxes

Income (loss) before income taxes for fiscal 2019 and 2018 consisted of the following (in thousands):

	2019			2018
U.S	$	(4,875	)	$	(11,634	)
Foreign		9,382			8,039
	$	4,507		$	(3,595	)
Effective tax rate		74.5	%		199.6	%

Significant Components of Deferred Tax Assets

Significant components of deferred tax assets are as follows (in thousands):

	December 28, 2019			December 29, 2018
Deferred tax assets:
Vacation, warranty and other accruals	$	635		$	515
Depreciation and amortization		89			656
Intangible amortization		804			902
Inventory valuation		1,288			1,401
Deferred income		—			256
Equity-based compensation		1,593			1,411
Net operating loss, research and other tax credit carryforwards		54,818			53,595
Other		43			545
		59,270			59,281
Valuation allowance for deferred tax assets		(52,099	)		(50,804	)
Total deferred tax assets		7,171			8,477
Deferred tax liabilities:
Purchased technology		(45	)		(181	)
Unbilled revenue		(874	)		(383	)
Total deferred tax liabilities		(919	)		(564	)
Net deferred tax assets	$	6,252		$	7,913
As reported on the balance sheet:
Non-current deferred tax assets	$	6,252		$	7,913

Difference Between Tax Provision at Statutory Federal Income Tax Rate and Tax Provision

The difference between the tax provision at the statutory federal income tax rate and the tax provision for fiscal 2019 and 2018 was as follows (in thousands):

	2019			2018
Income tax (benefit) at the federal statutory rate	$	947		$	(756	)
State income taxes, net of federal benefit		4			5
Change in valuation allowance:
U.S		(689	)		930
Foreign		—			(9,286	)
Effect of foreign operations taxed at various rates		(397	)		(254	)
Research tax credits		(1,710	)		(1,883	)
Effect of tax rate changes, permanent differences and adjustments of prior deferrals		3,685			4,142
Unrecognized tax benefits		1,519			(74	)
Total	$	3,359		$	(7,176	)

Aggregate Changes in Balance of Gross Unrecognized Tax Benefits

The aggregate changes in the balance of gross unrecognized tax benefits were as follows for fiscal 2019 and 2018:

	2019		2018
Beginning balance	$	6,164	$	5,678
Additions based on tax positions related to the current year		1,519		784
Settlements		—		(233	)
Lapse of statute of limitations		—		(65	)
Ending balance	$	7,683	$	6,164