Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):



	Year Ended December 31,			Six Months Ended December 31,				Fiscal Year Ended June 30,
	2012			2011		2010		2011		2010
						(Unaudited)
Current provision:
Federal	$	187		$	325	$	111	$	62	$	—
State	200			396		449		988		2
Foreign	1,787			329		93		286		278
	2,174			1,050		653		1,336		280
Deferred provision:
Federal	(55		)	22		—		—		—
State	(5		)	3		—		—		—
Foreign	(746		)	—		—		—		—
	(806		)	25		—		—		—
Provision for income taxes	$	1,368		$	1,075	$	653	$	1,336	$	280

Components of Income (Loss) From Continuing Operations Before Income Taxes

The components of income (loss) from continuing operations before income taxes by United States and foreign jurisdictions were as follows (in thousands):



	Year Ended December 31,			Six Months Ended December 31,					Fiscal Year Ended June 30,
	2012			2011			2010		2011		2010
							(Unaudited)
United States	$	(7,903	)	$	(1,375	)	$	5,368	$	10,585	$	(29,602	)
Foreign	(28,077		)	(4,234		)	88		581		177
Total	$	(35,980	)	$	(5,609	)	$	5,456	$	11,166	$	(29,425	)

Reconciliation of Federal Income Tax Rate

The effective income tax rate differs from the federal statutory income tax rate applied to the income (loss) before provision for income taxes due to the following (in thousands):



	Year Ended December 31,			Six Months Ended December 31,						Fiscal Year Ended June 30,
	2012			2011			2010			2011			2010
							(Unaudited)
Tax computed at the federal statutory rate	$	(12,234	)	$	(1,907	)	$	1,857		$	3,799		$	(10,005	)
State taxes, net of federal benefit	329			82			122			250			(359		)
Tax rate differential for international subsidiaries⁽¹⁾	10,743			1,589			(23		)	(47		)	(13		)
Stock-based compensation	3,926			978			244			727			149
Tax credits	(1,056		)	(378		)	(150		)	(409		)	(282		)
Tax contingencies	452			178			74			171			265
Permanent differences	532			244			120			305			411
Change in state rate	(68		)	8			295			662			(1,170		)
Other	(697		)	146			379			344			117
Valuation allowance	(559		)	135			(2,265		)	(4,466		)	11,167
Provision for income taxes	$	1,368		$	1,075		$	653		$	1,336		$	280


(1)	The change in the impact of the tax rate differential for international jurisdictions is primarily attributable to a change in the mix of income/loss from the United States to international jurisdictions with different income tax rates compared to the United States.

Reconciliation of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets as of December 31, 2012 and 2011 are shown below (in thousands). A valuation allowance has been recognized to offset our deferred tax assets, as necessary, by the amount of any tax benefits that, based on evidence, are not expected to be realized.



	December 31,
	2012			2011
Deferred tax assets:
Net operating losses	$	2,647		$	4,182
Deferred revenue	2,421			8,434
Accrued expenses	1,357			700
Deferred rent	322			201
Credit carryforwards	2,342			1,357
Incentive from lessor	46			1,023
Facility exit obligation	1,102			—
Depreciation	304			—
Stock-based compensation	7,474			1,333
Other	1,017			1,130
Total deferred tax assets	19,032			18,360
Less valuation allowance	(13,270		)	(13,829		)
	5,762			4,531
Deferred tax liabilities:
Depreciation	(5,016		)	(4,531		)
Net deferred tax assets	$	746		$	—

Reconciliation of Beginning and Ending Balance of Total Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in thousands):



	Year Ended December 31,			Six Months Ended December 31,				Fiscal Year Ended June 30,
	2012			2011		2010		2011		2010
						(Unaudited)
Beginning balance	$	710		$	519	$	374	$	374	$	185
Gross increases - tax positions in prior period	827			—		—		—		—
Gross decreases - tax positions in prior period	(65		)	—		—		—		—
Gross increases - tax positions in current period	264			191		73		145		189
Lapse of statute of limitations	(11		)	—		—		—		—
Ending balance	$	1,725		$	710	$	447	$	519	$	374