Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Provision (benefit) for income taxes from continuing operations

The provision for (benefit from) income taxes from continuing operations consists of:

	Year ended December 31, (in thousands)
	2014		2013
Current income tax:
Federal	$	115	$	(16	)
State		212		27
Foreign		757		1,087
		1,084		1,098
Deferred income tax:
Federal		370		(1,813	)
State		146		(65	)
		516		(1,878	)
Provision for (benefit from) income taxes	$	1,600	$	(780	)

Deferred tax liabilities (assets)

Deferred tax liabilities (assets) are comprised of the following at:

	December 31, (in thousands)
	2014			2013
Deferred tax liabilities:
Software development costs	$	4,984		$	5,042
Acquired intangible assets		2,350			-
Gross deferred tax liabilities		7,334			5,042
Allowances for bad debts and inventory		(4,524	)		(3,819	)
Capitalized inventory costs		(114	)		(122	)
Intangible assets		(2,100	)		(3,223	)
Employee benefit accruals		(1,715	)		(1,764	)
Federal net operating loss carryforward		(9,344	)		(10,524	)
State net operating loss carryforward		(1,104	)		(1,200	)
Tax credit carryforwards		(7,809	)		(4,979	)
Foreign currency		(33	)		(33	)
Other		(502	)		(585	)
Gross deferred tax assets		(27,150	)		(26,249	)
Less valuation allowance		3,947			2,377
Net deferred tax assets	$	(15,869	)	$	(18,830	)

Effective income tax rate reconciliation

The provision for (benefit from) income taxes differed from the provision computed by applying the Federal statutory rate to income (loss) from continuing operations before taxes due to the following:

	Year ended December 31,
	2014			2013
Federal statutory tax rate		(34.0	)%		(34.0	)%
State taxes		13.8			1.7
Non deductible expenses		10.1			61.3
Tax credits		(21.5	)		(378.2	)
Repatriation of foreign earnings		109.8			0.0
Foreign income tax rate differential		(79.3	)		(103.0	)
Valuation allowance		76.6			84.8
Other		2.5			(2.4	)
		78.0	%		(369.8	)%