Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Tax effects of temporary differences and carry-forwards

Deferred income taxes for 2012 and 2011 were provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Tax effects of temporary differences and carry-forwards at December 31, 2012 and 2011, are as follows:

	December 31, 2012					December 31, 2011
	Deferred Tax					Deferred Tax
	Asset			Liability		Asset			Liability
	(in thousands)
Inventory reserve	$	1,022		$	—	$	737		$	—
Fixed assets		—			443		—			528
Other reserves and accruals		92			—		224			—
Stock-based compensation		173			—		77			—
Undistributed foreign earnings		—			725		—			919
Other		—			35		—			57
Tax credit carry-forwards		1,464			—		1,557			—
Federal tax loss carry-forwards		2,116			—		2,020			—
State tax loss carry-forwards		513			—		—			—
Foreign tax loss carry-forwards		52			—		497			—
Total deferred income taxes		5,432		$	1,203		5,112		$	1,504
Valuation allowance		(307	)				(263	)
Net deferred tax assets	$	5,125				$	4,849

Provision (benefit) for income taxes

The provision (benefit) for income taxes is summarized as follows:

	2012			2011
	(in thousands)
Current:
Federal	$	—		$	—
State and local		2			—
Foreign		50			180
Total Current		52			180

Deferred:
Federal		(527	)		25
State and local		3			(20	)
Foreign		(52	)		—
Total Deferred		(576	)		5
	$	(524	)	$	185

Reconciliation of provision (benefit) for income taxes

A reconciliation of the provision (benefit) for income taxes and the amount computed by applying the statutory federal income tax rate to income before income taxes:

	2012			2011
	(in thousands)

Tax provision at expected statutory rate	$	(627	)	$	193
State taxes, net of federal benefit		6			(29	)
Permanent differences		21			17
Credits		—			(217	)
Changes in estimated research and development credits		93			—
Foreign tax expense, and other		(16	)		221
Change in valuation allowance for utilization of Georgia State net operating loss		(1	)		—
Provision (benefit) for income taxes	$	(524	)	$	185