Income Taxes - (Tables)

12 Months Ended

Dec. 31, 2012

The Company’s effective tax expense differs from the expense computed using statutory tax rates

The Company’s effective income tax expense differs from the expense computed using statutory tax rates for the years ended December 31, 2012, 2011 and 2010 as follows (in thousands):



	Years Ended December 31,
	2012			2011			2010
Tax computed at the federal statutory rate	$	(18	)	$	2,826		$	5,973
State tax, federally effected	19			173			1,212
Stock compensation	1,459			21			1,080
Tax credits	(261		)	(131		)	(152		)
State rate adjustment	(21		)	15			764
Meals & entertainment	72			75			49
Transaction costs	146			—			35
Uncertain tax positions	6			8			14
Return to provision	60			40			(80		)
Rate differential	—			2			(80		)
Valuation allowance	237			31			—
Income tax provision	$	1,699		$	3,060		$	8,815

The (benefit from) provision for income taxes

The provision for income taxes for the years ended December 31, 2012, 2011 and 2010 are as follows (in thousands):



	Years Ended December 31,
	2012			2011			2010
Current tax expense (benefit):
Federal	$	(566	)	$	3,539		$	4,194
State	86			495			508
	(480		)	4,034			4,702
Deferred tax expense (benefit):
Federal	2,058			(584		)	1,987
State	121			(390		)	2,126
	2,179			(974		)	4,113
Income tax provision	$	1,699		$	3,060		$	8,815

Significant components of the Company’s deferred tax assets and liabilities from federal and state income taxes

Significant components of the Company’s deferred tax assets and liabilities from federal and state income taxes as of December 31, 2012 and 2011 are as follows (in thousands):



	December 31,
	2012			2011
Deferred tax assets:
Net operating losses	$	1,420		$	1,300
Tax credits	2,039			911
Deferred revenue	4,186			7,021
Stock compensation	2,174			3,718
Accrued expenses	849			1,388
Charitable contributions	20			—
Total deferred tax assets	10,688			14,338
Valuation allowance	(904		)	(668		)
	9,784			13,670
Fixed assets	(1,902		)	(2,126		)
Intangible assets	(1,709		)	(2,875		)
Net deferred tax assets	$	6,173		$	8,669

Income Taxes

The rollforward of gross unrecognized tax benefits is as follows (in thousands):



Balance as of January 1, 2010	$	668
Additions based on tax positions related to the current year	142
Additions for tax positions of prior years	—
Additions related to Modality acquisition	83
Reductions for tax positions of prior years	(2		)
Settlements	—
Balance as of December 31, 2010	891
Additions based on tax positions related to the current year	236
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(1		)
Settlements	—
Balance as of December 31, 2011	1,126
Additions based on tax positions related to the current year	97
Additions for tax positions of prior years	1
Reductions for tax positions of prior years	(1		)
Settlements	—
Balance as of December 31, 2012	$	1,223