Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Company's Income Tax Provision (Benefit)

Significant components of the Company’s income tax provision (benefit) consisted of the following:


	Year Ended December 31,
	2016		2015			2014
	(In Thousands)
Current tax expense:
Federal	$	-	$	-		$	-
State		185		161			377
Foreign		(9)		264			68

		176		425			445
Deferred tax expense (benefit):
Federal		801		(544	)		2,092
State		344		476			709
Foreign		9		205			301
Change in valuation allowance		3,700		3,000			-

		4,854		3,137			3,102
Unrecognized tax benefit		-		(33	)		(370	)

Income tax provision	$	5,030	$	3,529		$	3,177

Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes are as follows:


	Year Ended December 31,
	2016		2015			2014
Domestic	$	1,568	$	(1,875	)	$	6,259
Foreign		628		1,344			982

Income (loss) before income taxes	$	2,196	$	(531	)	$	7,241

Statutory Federal Tax Rate of Income from Continuing Operations

The differences in income taxes determined by applying the statutory federal tax rate of 34% to income from continuing operations before income taxes and the amounts recorded in the accompanying consolidated statements of comprehensive income (loss) result from the following:


	Year Ended December 31,
	2016					2015						2014
	Amount		Rate			Amount			Rate			Amount			Rate
	(Dollar Amounts In Thousands)
Income tax at statutory rate	$	747		34.0	%	$	(195	)		34.0	%	$	2,468			34.0	%
Add (deduct):
State income taxes, net of federal tax benefit		429		19.6			484			(84.4	)		556			7.7
Tax rate difference on foreign income taxes		17		0.8			(36	)		6.2			26			0.4
Tax effect of rate change on deferred tax assets		-		-			-			0.0			252			3.5
Non-deductible items		126		5.7			155			(27.1	)		112			1.6
Net decrease in deferred tax attributes		-		-			-			-			183			2.5
Increase in valuation allowance against certain deferred tax assets		3,700		168.5			3,000			(523.8	)		-			-
Unrecognized tax benefits		-		-			(33	)		5.8			(370	)		(5.1	)
Other, net		11		0.5			154			(27.0	)		(50	)		(0.7	)

		$5,030		229.1	%	$	3,529			(616.3	)%	$	3,177			43.9	%

Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows:


	December 31,
	2016			2015
	(In Thousands)
Deferred income tax assets:
Net operating loss carryforwards and credits	$	16,090		$	16,753
Acquired intangible assets		6,561			6,517
Reserves and accruals		2,209			2,115
Share-based compensation		2,837			3,092
Depreciation		395			397

Total deferred income tax assets		28,092			28,874
Deferred income tax liabilities:
Acquired intangible assets		(549	)		(180	)
Other		(312	)		(162	)

Total deferred income tax liabilities		(861	)		(342	)
Valuation allowance		(8,200	)		(4,500	)

Deferred income tax asset, net	$	19,031		$	24,032

Deferred Tax Valuation Allowance

Annual changes to the deferred tax valuation allowance are as follows:


	Year Ended December 31,
	2016		2015		2014
	(In Thousands)
Balance, beginning of year	$	4,500	$	1,500	$	1,500
Additions		3,700		3,000		-

Balance, end of year	$	8,200	$	4,500	$	1,500

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:


	Year Ended December 31,
	2016		2015			2014
	(In Thousands)
Gross unrecognized tax benefits, beginning of year	$	-	$	9		$	108
Increase in tax position in current year		-		-			-
Settlement/Expiration of statute		-		-			-
De-recognition through administrative policy		-		(9	)		(99	)

Gross unrecognized tax benefits, end of year	$	-	$	-		$	9