Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

Income Taxes

11. INCOME TAXES

Income tax provisions from continuing operations consisted of the following:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Income (loss) from continuing operations before provision for income taxes	$	334		$	1,939
Provision for income taxes		(553	)		(594	)
Effective tax rate		165.6	%		30.6	%

The effective tax rates differ from the statutory rate primarily due to the valuation allowance, foreign withholding taxes, and unrecognized tax benefits. The income tax provision for the three months ended March 31, 2012 and 2011 are primarily as a result of foreign withholding tax expense.

As of March 31, 2012, the Company had unrecognized tax benefits under ASC 740 "Income Taxes" of approximately $677,000 including interest of $50,000. The total amount of unrecognized tax benefits that would affect the Company's effective tax rate, if recognized, was $249,000. There were no material changes in the amount of unrecognized tax benefits during the three months ended March 31, 2012. The Company does not expect any material changes to its liability for unrecognized tax benefits during the next twelve months. The Company's policy is to account for interest and penalties related to uncertain tax positions as a component of income tax provision.

Because the Company had net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state, and foreign taxing authorities may examine the Company's tax returns for all years from 1993 through the current period.

The Company maintains a valuation allowance for its entire deferred tax assets at March 31, 2012 and December 31, 2011 as a result of uncertainties regarding the realization of the asset balance due to past losses, the variability of operating results, and near term projected results. In the event that the Company determines the deferred tax assets are realizable, an adjustment to the valuation allowance may increase income in the period such determination is made. The valuation allowance does not impact the Company's ability to utilize the underlying net operating loss carryforwards.