Income Taxes (Tables)

3 Months Ended

Dec. 31, 2011

Income Taxes Tables

Schedule of Income From Continuing Operations before Provision for Income Taxes

The Company’s income from continuing operations before provision for income taxes was generated from the U.S. and foreign operations for the years ended December 31 as follows (in thousands):

	2012			2011
Earnings (loss) before income taxes:
U.S.	$	(2,659	)	$	(3,295	)
Foreign		3,076			1,335
Earnings (loss) before income taxes	$	417		$	(1,960	)

Schedule of Provision for Income Taxes

The Company’s provision for income taxes on continuing operations consisted of the following for the years ended December 31 (in thousands):

	2012			2011
Current:
Federal	$	-		$	(238	)
State		11			21
Foreign		320			300
Total current		331			83
Deferred:
Federal		-			11
State		1			1
Foreign		(17	)		(7	)
Total deferred		(17	)		5
Total provision for income taxes	$	314		$	88

Schedule of Income Tax Expense Benefit

Income tax expense on continuing operations differed from the amount obtained by applying the statutory federal income tax rate of 34% to income before income taxes as follows for the years ended December 31 (in thousands):

	2012			2011
Federal income tax at statutory rates	$	143		$	(668	)
State income taxes, net of federal benefit		11			22
Foreign income taxes		(744	)		(161	)
Changes in valuation allowances		287			897
Foreign income inclusion - IRC 956		607			144
Permanent differences		10			2
Tax benefit from income of discontinued operations		-			(227	)
Expiration of research and development credits		-			79
	$	314		$	88

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the Company’s deferred tax assets and liabilities were as follows as of December 31 (in thousands):

	2012			2011
Current deferred tax assets:
Allowance for doubtful accounts	$	1		$	4
Inventory reserves and uniform capitalization		661			415
Other accrued liabilities		178			217
		840			636
Valuation allowance-current deferred tax assets		(712	)		(612	)
Total current deferred tax assets		128			24
Long-term deferred tax assets:
Depreciation on property, plant & equipment		142			288
Non-qualified stock option expense		3			9
Deferred compensation		246			208
Deferred income		-			7
Tax credits		114			156
Alternative minimum tax credit carry-forwards		-			106
Net operating loss carry-forwards		5,095			5,333
Other, net		45			49
		5,645			6,156
Valuation allowance-long-term deferred tax assets		(5,586	)		(5,929	)
Total long-term deferred tax assets		59			227
Deferred tax liabilities:
Intangible assets other than goodwill		-			(89	)
Total deferred tax liabilities (long-term)		-			(89	)
Net deferred tax assets	$	187		$	162