CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011		Sep. 30, 2010 Restated
Cash flows from operating activities:
Net loss	$ (7,441)		$ (9,292)	[1],[2]
Adjustments to reconcile net loss to net cash used in operating activities:
Income from discontinued operations			(69)	[1],[2]
Deferred income taxes	(2,666)		(223)	[1]
Depreciation and amortization	4,013		3,475	[1]
Accretion of interest to related party liability	563		581	[1]
Interest on debt note, bank line of credit and mortgage loan	176		56	[1]
Remeasurement of contingent consideration	254
Stock-based compensation expense	831		1,018	[1]
Gain on disposal of fixed assets	55
Changes in operating assets and liabilities:
Accounts receivable	1,224		(3,053)	[1]
Inventories	1,337		(919)	[1]
Other assets	(303)		(2,463)	[1]
Income taxes receivable	(40)		(272)	[1]
Accounts payable	(2,950)		2,822	[1]
Liability to related party	(780)		(829)	[1]
Accrued expenses	(685)		1,946	[1]
Deferred revenue	514		2,785	[1]
Income taxes payable	369		(316)	[1]
Net cash used in operating activities from continuing operations	(5,529)		(4,753)	[1]
Net cash used in operating activities from discontinued operations			(778)	[1]
Net cash used in operating activities	(5,529)		(5,531)	[1]
Cash flows from investing activities:
Capital expenditures	(897)		(638)	[1]
Net cash (paid) acquired (for) from acquisitions	(5,154)		4,881	[1]
Maturities of short-term investments			1,015	[1]
Net cash (used in) provided by investing activities	(6,051)		5,258	[1]
Cash flows from financing activities:
Proceeds from issuance of common stock, net of issuance costs	18,211		1,936	[1]
Payments on debt note and mortgage loan	(857)		(40)	[1]
Payments on bank line of credit, net	(605)		(52)	[1]
Proceeds from issuance of common stock upon options exercised	56
Proceeds from issuance of common stock upon warrants exercised	1,076
Net cash provided by financing activities	17,881		1,844	[1]
Effect of exchange rates on cash and cash equivalents	620		(236)	[1]
Net increase in cash and cash equivalents	6,921		1,335	[1]
Cash and cash equivalents at beginning of period	10,799	[3]	4,836	[1]
Cash and cash equivalents at end of period	17,720		6,171	[1]
Supplemental disclosures of non-cash investing and financing activities:
Common stock issued in connection with business combinations	3,024		38,776	[1]
Conversion of stock options in connection with business combinations			3,007	[1]
Common stock issued in connection with contingent consideration	316
Common stock issued in connection with stock bonus and incentive plans	1,434		135	[1]
Stock option grants in connection with stock bonus and incentive plans	610
Common stock issued to affiliates for conversion of loan			291	[1]
Fair value of contingent consideration in connection with business combinations	5,060		298	[1]
Cash paid for interest expense	$ 739		$ 637	[1]

[1] As stated earlier, the Company had determined an error in the recognition of revenue related to the sale of readers for the German national ID program as reported in the third quarter of 2010 as not all criteria for recognizing the sale were in fact met until the fourth quarter of 2010. As a result, revenue, cost of revenue, gross profit, operating loss and net loss reported in the Company's Form 10-Q for the quarter ended September 30, 2010 was overstated, however there was no impact to the total net cash used in operating activities. The amounts presented in the table above have been restated to correct the impact of such error.

[2] As stated in Note 20 to the Consolidated Financial Statements in its 2010 Annual Report on Form 10-K, the Company had determined that an error occurred in the recognition of revenue related to the sale of readers for the German national ID program as reported in the third quarter of 2010. Upon review of Accounting Standards Codification 605, Revenue Recognition, the Company had concluded that not all criteria for recognizing the sale were in fact met until the fourth quarter of 2010. As a result, revenue and cost of revenue of approximately $2.8 million and $1.6 million, respectively reported in the Company's Form 10-Q for the three and nine months ended September 30, 2010 were overstated, resulting in an impact of $1.2 million on gross profit, operating loss and net loss in such periods. The loss per share was understated by $(0.03). The amounts presented for the three and nine months ended September 30, 2010 in the table above have been restated to correct the impact of such error.

[3] The condensed consolidated balance sheet has been derived from the audited consolidated financial statements at December 31, 2010 but does not include all the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.