Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Pretax Loss from Operations

The components of the pretax loss from operations for the years ended December 31, 2012, 2011 and 2010 are as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
U.S. Domestic	$	(3,310	)	$	(14,400	)	$	(8,428	)
Foreign		(13,308	)		(12,288	)		(8,059	)
Pretax loss from operations	$	(16,618	)	$	(26,688	)	$	(16,487	)

Components of (Benefit) Provision for Income Taxes

The components of the (benefit) provision for income taxes are presented in the following table (in thousands):

	Year Ended December 31,
	2012			2011			2010
Current:
Federal	$	107		$	4		$	4
State		24			222			158
Foreign		2,083			(388	)		(271	)
Total current (benefit) provision		2,214			(162	)		(109	)
Deferred:
Federal		137			163			162
State		29			8			(30	)
Foreign		(3,539	)		(4,516	)		(2,077	)
Total deferred benefit		(3,373	)		(4,345	)		(1,945	)
Total benefit	$	(1,159	)	$	(4,507	)	$	(2,054	)

Schedule of Effective Income Tax Rate Reconciliation

The (benefit) provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences:

	December 31,
	2012			2011			2010
Federal statutory rate		(35.0	)%		(35.0	)%		(35.0	)%
Adjustments for tax effects of:
State taxes, net		(0.0	)%		(0.7	)%		(0.8	)%
Stock-based compensation		(0.5	)%		1.8	%		4.4	%
Foreign taxes		(0.1	)%		3.6	%		3.1	%
Tax credits		(0.7	)%		(1.2	)%		(3.4	)%
Deemed foreign dividend		0.2	%		10.3	%		—
Transaction costs		—			—			8.0	%
Permanent adjustments		5.0	%		0.8	%		3.4	%
Tax rate adjustment		0.7	%		(0.5	)%		4.4	%
Uncertain tax positions		14.9	%		(1.5	)%		0.8	%
Other		3.3	%		(3.1	)%		(1.0	)%
Valuation allowance		5.2	%		8.7	%		3.6	%
		(7.0	)%		(16.8	)%		(12.5	)%

Significant Components of Company's Deferred Tax Assets and Liabilities

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

	December 31,
	2012			2011
Deferred tax assets:
Allowances and reserves	$	1,088		$	978
Accrued expenses		648			532
Inventory reserves		7,839			6,648
Net operating loss carryforwards		28,786			26,989
Stock-based compensation		1,866			669
Legal settlement		4,156			6,670
Income tax credit carryforwards		1,276			1,277
		45,659			43,763
Valuation allowance		(36,031	)		(35,211	)
Total deferred tax assets, net of valuation allowance		9,628			8,552
Deferred tax liabilities:
Property and equipment		926			494
Intangible assets		6,910			9,790
Goodwill		1,011			845
Total deferred tax liabilities		8,847			11,129
Net deferred tax assets (liabilities)	$	781		$	(2,577	)

Summary of Changes to Unrecognized Tax Benefits

The following table summarizes the changes to unrecognized tax benefits for the years ended December 31, 2012, 2011 and 2010 (in thousands):

Balance at December 31, 2009	$	2,116
Additions based on tax positions related to the prior year		39
Additions based on tax positions related to the current year		1,480
Additions based on tax positions related to the acquisition of Scient’x		1,097
Reductions as a result of lapse of applicable statute of limitations		(256	)
Reductions as a result of foreign exchange rates and other		(55	)
Balance at December 31, 2010		4,421
Additions based on tax positions related to the prior year		73
Additions based on tax positions related to the current year		399
Reductions as a result of positions taken		(59	)
Reductions as a result of lapse of applicable statute of limitations		(649	)
Additions as a result of foreign exchange rates and other		12
Balance at December 31, 2011	$	4,197
Additions based on tax positions related to the prior year		987
Additions based on tax positions related to the current year		743
Reductions as a result of lapse of applicable statute of limitations		(58	)
Additions as a result of foreign exchange rates and other		28
Balance at December 31, 2012	$	5,897