Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components of Gain (Loss) before Income Taxes

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

	Year Ended December 31,
	2014			2013		2012
United States	$	(3,412	)	$	10,513	$	(5,975	)
Foreign		556			608		630
Total	$	(2,856	)	$	11,121	$	(5,345	)
Gain from discontinued operations, before income taxes		—			—	$	18
Gain (loss) from continuing operations, before income taxes	$	(2,856	)	$	11,121	$	(5,327	)

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:	2014		2013		2012
Federal	$	—	$	—	$	—
State		34		132		54
Foreign		380		221		94
Total Current	$	414	$	353	$	148
Deferred
Federal	$	265	$	265	$	266
State		19		24		28
Foreign		42		130		(234	)
Total Deferred		326		419		60
Total provision for income taxes	$	740	$	772	$	208

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,
	2014			2013			2012
Provision at Federal statutory rate	$	(1,000	)	$	3,900		$	(1,865	)
State taxes		53			156			82
Permanent differences/other		633			520			375
Stock-based compensation		2,311			1,113			178
Federal valuation allowance (used) provided		(1,257	)		(4,917	)		1,438
Provision for income taxes	$	740		$	772		$	208

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,
	2014			2013
Deferred Tax Assets
Fixed assets	$	165		$	187
Deferred revenue		19			14
Accruals and reserves		649			498
Stock options		1,663			3,570
Net operating loss carryforwards		42,854			43,562
Federal and state credits		3,327			3,169
Foreign credits		185			197
Intangible assets		1,208			986
Gross deferred tax assets		50,070			52,183
Valuation allowance		(49,054	)		(51,726	)
Total deferred tax assets		391			457
Deferred Tax Liabilities:
Intangible assets		(1,302	)		(1,016	)
Total deferred tax liability		(1,302	)		(1,016	)
Net deferred tax liabilities	$	(911	)	$	(559	)

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,
	2014			2013			2012
Balance at beginning of year	$	2,502		$	3,637		$	3,210
Increase related to prior year tax positions		2			98			507
Decrease related to prior year tax positions		(89	)		(1,349	)		—
Increase related to current year tax positions		181			162			18
Settlements with tax authorities		—			—			—
Decrease related to lapse of statute of limitations		(136	)		(46	)		(98	)
Balance at end of year	$	2,460		$	2,502		$	3,637