Income Taxes (Tables)

12 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before provision for income taxes consisted of the following:

	2013		2012			2011
	(in thousands)
United States	$	4,542	$	9,723		$	12,931
International	25,479		(5,816		)	15,854
Total pre-tax income	$	30,021	$	3,907		$	28,785

Schedule of Components of Income Tax Expense (Benefit)

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

	2013		2012			2011
	(in thousands)
Current:
Federal	$	2	$	235		$	—
State	86		141			4
Foreign	2,902		1,120			1,020
Total current	$	2,990	$	1,496		$	1,024
Deferred:
Federal	7,596		5,470			(19,340		)
State	12		95			(4,561		)
Foreign	1,679		(549		)	(4,461		)
Total deferred	9,287		5,016			(28,362		)
Total provision (benefit)	$	12,277	$	6,512		$	(27,338	)

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:

	2013			2012			2011
	(in thousands)
Income taxes computed at the U.S. federal statutory rate	$	10,507		$	1,367		$	10,075
State income taxes	98			69			3
Research credits	(89		)	757			—
Foreign losses not benefited (benefited)	—			1,377			(5,549		)
Foreign Income Inclusion, net of credit	6,469			—			—
Non-deductible stock compensation	991			672			527
Non-deductible impairment charges	—			3,321			—
U.S. operating loss not benefited (benefited)	—			—			(5,123		)
Valuation allowance changes	(1,334		)	1,384			(28,136		)
Foreign taxes	(4,334		)	(2,523		)	1,020
Other	(31		)	88			(155		)
Total provision (benefit)	$	12,277		$	6,512		$	(27,338	)

Schedule of Deferred Tax Assets and Liabilities

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

	2013			2012
	(in thousands)
Deferred tax assets:
Depreciation	$	217		$	215
Inventory and other valuation reserves	532			1,136
Accrued expenses	5,312			6,255
Federal, state and foreign credit carryforwards	4,310			7,695
Federal, state and foreign net operating loss carryforwards	20,388			27,041
Non-deductible stock options	3,064			2,714
Other, net	38			2,444
Subtotal	33,861			47,500
Valuation allowance	(24,928		)	(24,887		)
Total deferred tax assets	$	8,933		$	22,613
Deferred tax liabilities:
Purchased intangibles	(1,144		)	(1,500		)
Net deferred tax assets	$	7,789		$	21,113
Reported as:
Current deferred tax assets	$	2,326		$	8,940
Non-current deferred tax assets	9,942			13,588
Non-current deferred tax liabilities	(4,479		)	(1,415		)
Net deferred tax assets	$	7,789		$	21,113

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:

	2013		2012			2011
	(in thousands)
Balance at the beginning of the year	$	2,906	$	4,533		$	3,460
Increases (decreases) related to current year positions	108		68			112
Increases (decreases) related to prior year positions	38		(1,695		)	961
Balance at the end of the year	$	3,052	$	2,906		$	4,533