Income Taxes (Tables)

12 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before provision for income taxes consisted of the following:

	2012			2011		2010
	(in thousands)
United States	$	9,723		$	12,931	$	25,675
International	(5,816		)	15,854		18,234
Total pre-tax income	$	3,907		$	28,785	$	43,909

Schedule of Components of Income Tax Expense (Benefit)

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

	2012			2011			2010
	(in thousands)
Current:
Federal	$	235		$	—		$	(207	)
State	141			4			318
Foreign	1,120			1,020			1,043
Total current	$	1,496		$	1,024		$	1,154
Deferred:
Federal	5,470			(19,340		)	—
State	95			(4,561		)	—
Foreign	(549		)	(4,461		)	—
Total deferred	5,016			(28,362		)	—
Total provision (benefit)	$	6,512		$	(27,338	)	$	1,154

Schedule of Effective Income Tax Rate Reconciliation

The Company’s provision (benefit) 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:

	2012			2011			2010
	(in thousands)
Income taxes computed at the U.S. federal statutory rate	$	1,367		$	10,075		$	15,368
Federal refundable credit	—			—			(207		)
State income taxes	69			3			207
Research credits	757			—			—
Foreign losses not benefited (benefited)	1,377			(5,549		)	(6,382		)
Non-deductible stock compensation	672			527			375
Non-deductible impairment charges	3,321			—			—
U.S. operating loss not benefited (benefited)	—			(5,123		)	(9,286		)
Valuation allowance changes	1,384			(28,136		)	—
Reversal of previously provided taxes	—			—			(140		)
Foreign taxes	(2,523		)	1,020			1,183
Other individually immaterial items	88			(155		)	36
Total provision (benefit)	$	6,512		$	(27,338	)	$	1,154

Schedule of Deferred Tax Assets and Liabilities

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

	2012			2011
	(in thousands)
Deferred tax assets:
Depreciation	$	215		$	87
Inventory and other valuation reserves	1,136			788
Accrued expenses	6,255			2,608
Federal, state and foreign credit carryforwards	7,695			11,143
Federal, state and foreign net operating loss carryforwards	27,041			31,466
Non-deductible stock options	2,714			2,850
Other, net	2,444			2,484
Subtotal	47,500			51,426
Valuation allowance	(24,887		)	(22,228		)
Total deferred tax assets	$	22,613		$	29,198
Deferred tax liabilities:
Purchased intangibles	(1,500		)	(1,649		)
Net deferred tax assets	$	21,113		$	27,549
Reported as:
Current deferred tax assets	$	8,940		$	10,044
Non-current deferred tax assets	13,588			19,028
Non-current deferred tax liabilities	(1,415		)	(1,523		)
Net deferred tax assets	$	21,113		$	27,549

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:

	2012			2011		2010
	(in thousands)
Balance at the beginning of the year	$	4,533		$	3,460	$	3,790
Increases (decreases) related to current year positions	68			112		(330		)
Increases (decreases) related to prior year positions	(1,695		)	961		—
Balance at the end of the year	$	2,906		$	4,533	$	3,460