Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before provision for income taxes consisted of the following:

	2014		2013		2012
	(in thousands)
United States	$	4,126	$	4,542	$	9,723
International	29,001		25,479		(5,816		)
Total pre-tax income	$	33,127	$	30,021	$	3,907

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consisted of the following for the years ended September 30:

	2014		2013		2012
	(in thousands)
Current:
Federal	$	2,710	$	2	$	235
State	124		86		141
Foreign	4,565		2,902		1,120
Total current	7,399		2,990		1,496
Deferred:
Federal	1,091		7,596		5,470
State	933		12		95
Foreign	215		1,679		(549		)
Total deferred	2,239		9,287		5,016
Total provision	$	9,638	$	12,277	$	6,512

Schedule of Effective Income Tax Rate Reconciliation

The Company’s provision for income taxes differs from the amount computed by applying the U.S. federal statutory rate (35%) to income before taxes and minority interest as follows for the years ended September 30:

	2014			2013			2012
	(in thousands)
Income taxes computed at the U.S. federal statutory rate	$	11,595		$	10,507		$	1,367
State income taxes	1,057			98			69
Research credits	(41		)	(89		)	757
Foreign losses not benefited	—			—			1,377
Foreign income inclusion, net of credit	1,765			6,469			—
Non-deductible stock compensation	1,126			991			672
Non-deductible impairment charges	—			—			3,321
Valuation allowance changes	(815		)	(1,334		)	1,384
Foreign taxes	(5,371		)	(4,334		)	(2,523		)
Other	322			(31		)	88
Total provision	$	9,638		$	12,277		$	6,512

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred taxes consisted of the following at September 30:

	2014			2013
	(in thousands)
Deferred tax assets:
Depreciation	$	—		$	217
Inventory and other valuation reserves	457			532
Accrued expenses	5,745			5,312
Federal, state and foreign credit carryforwards	9,804			4,310
Federal, state and foreign net operating loss carryforwards	12,835			20,388
Non-deductible stock options	3,106			3,064
Other, net	1,600			38
Subtotal	33,547			33,861
Valuation allowance	(23,287		)	(24,928		)
Total deferred tax assets	$	10,260		$	8,933
Deferred tax liabilities:
Purchased intangibles	(866		)	(1,144		)
Net deferred tax assets	$	9,394		$	7,789
Reported as:
Current deferred tax assets	$	1,868		$	2,326
Non-current deferred tax assets	8,392			9,942
Non-current deferred tax liabilities	(866		)	(4,479		)
Net deferred tax assets	$	9,394		$	7,789

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits during the tax year ended September 30 is as follows:

	2014		2013		2012
	(in thousands)
Balance at the beginning of the year	$	3,052	$	2,906	$	4,533
Increases related to current year positions	90		108		68
Increases (decreases) related to prior year positions	78		38		(1,695		)
Balance at the end of the year	$	3,220	$	3,052	$	2,906