CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (USD $) In Thousands	6 Months Ended
Jun. 30, 2011	Jun. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (10,028)	$ (6,596)
Adjustments to reconcile net loss to net cash provided by (used in) operating ativities:
Depreciation and amortization	5,488	5,919
Provision for inventory losses	1,744	945
Provision for doubtful accounts	42	24
Loss on disposal of assets	68	61
Accounting charge related to stock-based compensation expense	202	391
Deferred income taxes	(401)	(1,629)
Changes in operating assets and liabilities:
Accounts receivable	244	537
Income tax receivable	24	7,416
Inventories	3,647	2,115
Prepaid expenses and other current assets	(645)	(387)
Other assets	180	(164)
Accounts payable	(504)	(4,959)
Accrued expenses	(116)	968
Taxes payable	(1,738)	1,512
Commissions and incentives payable	(1,266)	(2,424)
Deferred revenue	(11)	(438)
Net cash provided by (used in) operating activities	(3,070)	3,291
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(476)	(997)
Proceeds from sales of assets	2	0
Change in restricted cash	65	1,255
Net cash provided by (used in) investing activities	(409)	258
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock options exercised	0	28
Repayment of capital lease obligations	642	603
Net cash used in financing activities	(642)	(575)
Effect of currency exchange rate changes on cash and cash equivalents	(142)	215
Net decrease in cash and cash equivalents	(4,263)	3,189
Cash and cash equivalents at the beginning of period	21,584	17,367
Cash and cash equivalents at the end of period	17,321	20,556
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes received (paid), net	(292)	7,442
Interest paid on capital leases	$ 96	$ 43

The net change during the reporting period in the aggregate amount of commissions and incentives incurred but not yet paid.

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Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents.

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The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations.

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The effect of exchange rate changes on cash balances held in foreign currencies.

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The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes.

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The net change during the reporting period in the aggregate amount of obligations due within one year (or one business cycle). This may include trade payables, amounts due to related parties, royalties payable, and other obligations.

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The net change during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services.

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The net change during the period in the amount of cash payments due to taxing authorities for taxes that are based on the reporting entity's earnings.

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The net change during the reporting period in the aggregate amount of expenses incurred but not yet paid.

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The net change during the reporting period, excluding the portion taken into income, in the liability reflecting services yet to be performed by the reporting entity for which cash or other forms of consideration was received or recorded as a receivable.

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The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities.

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The net change during the reporting period in other operating assets not otherwise defined in the taxonomy.

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The net cash inflow (outflow) for the net change associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as investing activities.

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Charge to cost of goods sold that represents the reduction of the carrying amount of inventory, generally attributable to obsolescence or market conditions.

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The net cash from (used in) the entity's financing activities specifically EXCLUDING the cash flows derived by the entity from its discontinued operations, if any. This element is only to be used when the entity reports its cash flows attributable to discontinued operations separately from the cash flow provided by or used in financing activities. Such reporting would necessitate the entity to use the Net Cash Provided by (Used in) Discontinued Operations, Total element provided in the taxonomy.

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The net cash from (used in) the entity's investing activities specifically EXCLUDING the cash flows derived by the entity from its discontinued operations, if any. This element is only to be used when the entity reports its cash flows attributable to discontinued operations separately from the cash flow provided by or used in investing activities. Such reporting would necessitate the entity to use the Net Cash Provided by (Used in) Discontinued Operations, Total element provided in the taxonomy.

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The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities include all transactions and events that are not defined as investing or financing activities. Operating activities generally involve producing and delivering goods and providing services. Cash flows from operating activities are generally the cash effects of transactions and other events that enter into the determination of net income.

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The net cash from (used in) the entity's continuing operations. This element specifically EXCLUDES the cash flows derived by the entity from its discontinued operations, if any. This element is only to be used when the entity reports its cash flows attributable to discontinued operations separately from the cash flow provided by or used in operating activities.

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The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes.

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The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets.

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The cash inflow from the sale of property, plant and equipment (capital expenditures), software, and other intangible assets.

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The cash inflow associated with the amount received from holders exercising their stock options.

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Amount of the current period expense charged against operations, the offset which is generally to the allowance for doubtful accounts for the purpose of reducing receivables, including notes receivable, to an amount that approximates their net realizable value (the amount expected to be collected).

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The cash outflow for the obligation for lease meeting the criteria for capitalization (with maturities exceeding one year or beyond the operating cycle of the entity, if longer).

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The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method.

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