Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes [Abstract]

Provision (benefit) for income taxes from continuing operations

The provision for income taxes from continuing operations consists of:

	Year ended December 31, (in thousands)
	2015		2014
Current income tax:
Federal	$	221	$	115
State		141		212
Foreign		267		757
		629		1,084
Deferred income tax:
Federal		816		2,238
State		55		372
		871		2,610
Provision for income taxes	$	1,500	$	3,694

Deferred tax liabilities (assets)

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

	December 31, (in thousands)
	2015			2014
Deferred tax liabilities:
Software development costs	$	1,841		$	4,984
Acquired intangible assets		2,088			2,350
Gross deferred tax liabilities		3,929			7,334
Allowances for bad debts and inventory		(4,804	)		(4,524	)
Capitalized inventory costs		(75	)		(114	)
Intangible assets		(1,747	)		(2,100	)
Employee benefit accruals		(2,050	)		(1,715	)
Federal net operating loss carryforward		(6,215	)		(9,249	)
State net operating loss carryforward		(1,111	)		(1,104	)
Tax credit carryforwards		(8,760	)		(7,809	)
Foreign currency		(33	)		(33	)
Other		(334	)		(502	)
Gross deferred tax assets		(25,129	)		(27,150	)
Less valuation allowance		3,421			3,947
Net deferred tax assets	$	(17,779	)	$	(15,869	)

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:

	2015			2014
Federal statutory tax rate		34.0	%		34.0	%
State taxes		5.8			11.5
Non deductible expenses		1.0			4.6
Tax credits		(4.8	)		(11.7	)
Repatriation of foreign earnings		0.0			59.8
Foreign income tax rate differential		(1.3	)		(43.2	)
Valuation allowance		(9.5	)		41.7
Tax return and audit adjustments		3.8			0.0
Other		(1.8	)		1.4
		27.2	%		98.1	%