INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Component of Loss Before Income Taxes By Tax Jurisdiction

The components of loss before income taxes by tax jurisdiction were as follows:

	Year Ended December 31,
	2012			2011			2010
United States	$	(6,745	)	$	(25,159	)	$	(14,527	)
Foreign		(15,708	)		4,672			1,813
Loss before income taxes	$	(22,453	)	$	(20,487	)	$	(12,714	)

Components of Income Tax Provision

The components of income tax provision were as follows:

	Year Ended December 31,
	2012			2011			2010
Current:
Federal	$	—		$	—		$	—
State		(4	)		(2	)		(3	)
Foreign		913			(2,698	)		(1,311	)
		909			(2,700	)		(1,314	)
Deferred:
Federal		497			1,452			—
State		64			211			—
Foreign		524			423			605
		1,085			2,086			605
Total:
Federal		497			1,452			—
State		60			209			(3	)
Foreign		1,437			(2,275	)		(706	)
	$	1,994		$	(614	)	$	(709	)

Difference Between Actual Rate and Federal Statutory Rate

The difference between the actual rate and the federal statutory rate was as follows:

	Year Ended December 31,
	2012			2011			2010
Tax at federal statutory rate		34.0	%		34.0	%		34.0	%
State tax, net of federal benefit		0.3			1.0			—
Foreign rate differential		(0.6	)		1.4			0.4
Research and development credit		—			2.1			1.5
Acquired in-process research and development		—			—			0.3
United Kingdom research and development refund		—			—			1.1
Withholding taxes		(0.3	)		(0.1	)		(3.7	)
Goodwill impairment		(5.5	)		—			—
Stock-based compensation		(2.7	)		(1.3	)		(1.0	)
Non-deductible intercompany bad debt		(16.5	)		—			—
FIN 48 interest and release		10.0			(0.4	)		(1.8	)
Other		(0.7	)		(0.4	)		1.7
Valuation allowance		(9.1	)		(39.3	)		(38.1	)
Effective tax rate		8.9	%		(3.0	)%		(5.6	)%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following:

	December 31, 2012									December 31, 2011
	US			Foreign			Total			US			Foreign			Total
Deferred tax assets:
Fixed assets	$	571		$	1,501		$	2,072		$	644		$	1,587		$	2,231
Net operating loss carryforwards		32,795			12,207			45,002			31,318			13,677			44,995
Accruals, reserves and other		3,605			121			3,726			4,821			96			4,917
Foreign tax credit		6,086			—			6,086			5,767			—			5,767
Stock-based compensation		2,723			58			2,781			1,748			65			1,813
Research and development credit		2,839			—			2,839			3,143			—			3,143
Other		2,873			11			2,884			2,573			12			2,585
Total deferred tax assets	$	51,492		$	13,898		$	65,390		$	50,014		$	15,437		$	65,451
Deferred tax liabilities:
Macrospace, MIG and iFone intangible assets	$	—		$	(498	)	$	(498	)	$	—		$	(931	)	$	(931	)
GameSpy intangible assets		(506	)		—			(506	)		—			—			—
Blammo intangible assets		—			(261	)		(261	)		—			(429	)		(429	)
Griptonite intangible assets		(949	)		—			(949	)		(2,149	)		—			(2,149	)
Fixed assets		—			—			—			—			—			—
Other		—			(9	)		(9	)		—			(10	)		(10	)
Net deferred tax assets		50,037			13,130			63,167			47,865			14,067			61,932
Less valuation allowance		(50,037	)		(13,674	)		(63,711	)		(47,865	)		(15,150	)		(63,015	)
Net deferred tax liability	$	—		$	(544	)	$	(544	)	$	—		$	(1,083	)	$	(1,083	)

Reconciliation of Total Amounts of Unrecognized Tax Benefits

A reconciliation of the total amounts of unrecognized tax benefits was as follows:

	Year Ended December 31,
	2012			2011
Beginning balance	$	4,034		$	3,326
Reductions of tax positions taken during previous years		(631	)		(82	)
Additions based on uncertain tax positions related to the current period		410			740
Additions based on uncertain tax positions related to prior periods		813			50
Ending balance	$	4,626		$	4,034