11.	INCOME TAXES

Income tax provisions from continuing operations consisted of the following:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(In thousands)						(In thousands)
Income (loss) from continuing operations before provision for income taxes	$	1,462		$	(2,872	)	$	4,518		$	(4,780	)
Provision for income taxes		(257	)		(118	)		(284	)		(737	)
Effective tax rate		17.6	%		(4.1	)%		6.3	%		(15.4	)%

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 provisions for the three months and nine months ended September 30, 2013 are primarily as a result of estimated state taxes and foreign withholding tax expense. The income tax provisions for the three months and nine months ended September 30, 2012 are primarily as a result of foreign withholding tax expense.

As of September 30, 2013, the Company had unrecognized tax benefits under ASC 740 “Income Taxes” of approximately $689,000, including interest of $62,000. The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate, if recognized, was $261,000. There were no material changes in the amount of unrecognized tax benefits during the nine months ended September 30, 2013. The Company expects to release reserves and record a tax benefit due to the expiration of the statute of limitations during the next three 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 1998 through the current period.

The Company maintains a valuation allowance for all its deferred tax assets at September 30, 2013 as a result of uncertainties regarding the realization of the asset balance due to historical losses, the variability of operating results, and uncertainty regarding near term projected results. As of the quarter ended September 30, 2013, the Company remained in a three-year cumulative pre-tax loss position. Based on current projections, and barring any one-time adjustments, the Company expects to be in a three-year cumulative pre-tax income position by December 31, 2013. The Company expects to complete a full evaluation of the realizability of its deferred tax assets by the end of the current fiscal year. In the event that the Company determines the deferred tax assets are realizable based on its assessment of relevant factors, 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.