Note 3 – Income Taxes

During the three months ended June 30, 2011, the Company recorded $18,000 in income tax benefits
primarily related to estimated state tax adjustments. During the nine months ended June 30, 2011, the Company
recorded $34,000 related to estimated state taxes, estimated federal alternative minimum taxes and uncertain tax
positions relative to foreign taxes. During the three and nine months ended June 30, 2010, the Company recorded $7,000 and $22,000, respectively, related to uncertain tax positions relative to foreign taxes, estimated alternative minimum taxes and income tax liabilities in foreign jurisdictions.

Deferred Tax Assets

The Company's deferred tax assets include net operating loss carry forwards and tax credits that expire at
different times through and until 2030. Significant judgment is required in determining the Company's provision
for income taxes, the carrying value of deferred tax assets and liabilities and the valuation allowance recorded
against net deferred tax assets. Factors such as future reversals of deferred tax assets and liabilities, projected
future taxable income, changes in enacted tax rates and the period over which the Company's deferred tax assets will be recoverable are considered in making these determinations. Management does not believe the deferred tax assets are more likely than not to be realized and a full valuation allowance has been provided against the deferred tax assets at June 30, 2011 and September 30, 2010.

Provision for Uncertain Tax Positions

At September 30, 2010, the Company had a $150,000 tax liability related to tax exposures that could result
in cash payments, of which approximately $6,000 and $19,000, respectively, were recorded during the three and

nine months ended June 30, 2010. The Company increased its tax liability by $6,000 during each of the three
month periods ended December 31, 2010, March 31, 2011 and June 30, 2011. During the three months ended
June 30, 2011, the Company released a portion of its reserve for uncertain tax positions and recorded a benefit of $2,000 for the quarter. The cumulative adjustment for the nine months ended June 30, 2011 was an increase of $1,000 to its reserve for uncertain tax positions. The Company does not expect its tax liability to change
significantly during the next twelve months. The Company's policy is to recognize interest and penalties related to uncertain tax positions as a component of income tax expense in its consolidated statements of operations. To date, the Company has not accrued any amounts for interest and penalties associated with this liability as such amounts have been de minimis.

The Company's unrecognized tax benefits (before consideration of any valuation allowance) represent
differences between tax positions taken by the Company in its various consolidated and separate worldwide tax returns and the benefits recognized and measured. This amount also represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. The change in the unrecognized tax benefits during the nine months ended June 30, 2011 was as follows (in thousands):


Balance at October 1, 2010	$	826
Additions for prior year tax positions		20
Balance at June 30, 2011	$	846

In the normal course of business, the Company is subject to examination by taxing authorities throughout
the world, including such jurisdictions as the United Kingdom, Australia, and the United States, and as a result, files numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The fiscal years ended September 30, 2008 through September 30, 2010 are generally still open to examination in the jurisdictions listed above.