Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes [Abstract]

Provision for income taxes from continuing operations

The provision for income taxes from continuing operations consists of:

	Year ended December 31, (in thousands)
	2016			2015
Current income tax:
Federal	$	61		$	221
State		167			141
Foreign		211			267
		439			629
Deferred income tax:
Federal		768			816
State		(60	)		55
		708			871
Provision for income taxes	$	1,147		$	1,500

Deferred tax liabilities (assets)

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

	December 31, (in thousands)
	2016			2015
Deferred tax liabilities:
Software development costs	$	2,223		$	1,841
Acquired intangible assets		1,731			2,088
Gross deferred tax liabilities		3,954			3,929
Allowances for bad debts and inventory		(4,505	)		(4,804	)
Capitalized inventory costs		(104	)		(75	)
Intangible assets		(1,388	)		(1,747	)
Employee benefit accruals		(2,089	)		(2,050	)
Federal net operating loss carryforward		(5,820	)		(6,215	)
State net operating loss carryforward		(1,085	)		(1,111	)
Tax credit carryforwards		(6,888	)		(8,760	)
Foreign currency		(33	)		(33	)
Other		(1,333	)		(334	)
Gross deferred tax assets		(23,245	)		(25,129	)
Less valuation allowance		1,874			3,421
Net deferred tax assets	$	(17,417	)	$	(17,779	)

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,
	2016			2015
Federal statutory tax rate		34.0	%		34.0	%
State taxes		1.4			5.8
Non deductible expenses		2.7			1.0
Tax credits		(6.7	)		(4.8	)
Foreign income tax rate differential		(2.1	)		(1.3	)
Valuation allowance		0.1			(9.5	)
Tax return and audit adjustments		0.0			3.8
Other		2.0			(1.8	)
		31.4	%		27.2	%