Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Components of loss before income taxes

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

	Year Ended December 31,
	2012			2011			2010
United States	$	(5,975	)	$	(18,455	)	$	(17,794	)
Foreign		630			457			(158	)
Total	$	(5,345	)	$	(17,998	)	$	(17,952	)
Gain (loss) from discontinued operations, before income taxes	$	18		$	(90	)	$	(58	)
Gain (loss) from continuing operations, before income taxes	$	(5,327	)	$	(18,088	)	$	(18,010	)

Provision for income taxes from continuing operations

The provision for income taxes from continuing operations consisted of the following (in thousands):

	Year Ended December 31,
Current:	2012			2011			2010
Federal	$	-		$	-		$	58
State		54			99			30
Foreign		94			53			48
Total Current		148			152			136
Deferred
Federal		265			324			(48	)
State		28			13			-
Foreign		(234	)		(88	)		-
Total provision for income taxes	$	208		$	401		$	88

Reconciliation of Federal statutory income tax rate to effective income tax rate

The reconciliation of the Federal statutory income tax rate to our effective income tax rate is as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Provision at Federal statutory rate	$	(1,865	)	$	(6,330	)	$	(6,283	)
State taxes		82			111			30
Permanent differences/other		375			416			254
Stock-based compensation		178			568			(1	)
Federal valuation allowance provided		1,438			5,636			6,030
Impact of discontinued operations		-			-			58
Provision for income taxes	$	208		$	401		$	88

Components of deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.   Significant components of our deferred tax assets and liabilities are as follows (in thousands):

	December 31,
	2012			2011
Deferred Tax Assets
Fixed assets	$	279		$	292
Deferred revenue		196			-
Accruals and reserves		303			692
Stock options		5,475			4,659
Net operating loss carryforwards		47,713			47,007
Federal and state credits		3,099			3,552
Foreign credits		320			375
Intangible assets		701			516
Gross deferred tax assets		58,086			57,093
Valuation allowance		(57,455	)		(56,679	)
Total deferred tax assets		631			414
Deferred Tax Liabilities:
Intangible assets		(742	)		(467	)
Total deferred tax liability		(742	)		(467	)
Net deferred tax liabilities	$	(111	)	$	(53	)

Reconciliation of beginning and ending unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Balance at beginning of year	$	3,210		$	3,776		$	3,706
Increase related to prior year tax positions		507			-			226
Decrease related to prior year tax positions		-			(494	)		(5	)
Increase related to current year tax positions		18			55			63
Settlements with tax authorities		-			-			-
Decrease related to lapse of statute of limitations		(98	)		(127	)		(214	)
Balance at end of year	$	3,637		$	3,210		$	3,776