Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income before income tax

For financial reporting purposes, net income (loss) before income taxes includes the following components (in thousands):

	Years Ended December 31,
				2011
	2012			(Restated)			2010
United States	$	(5,994	)	$	(9,348	)	$	(12,903	)
Foreign	15,517			9,766			8,478
Total	$	9,523		$	418		$	(4,425	)

Income tax expense (benefit)

The provision (benefit) for income taxes based on income (loss) before income taxes is as follows (in thousands):

	Years Ended December 31,
				2011
	2012			(Restated)			2010
Federal:
Current	$	(190	)	$	—		$	13
Deferred	6,873			(2,430		)	(4,183		)
	6,683			(2,430		)	(4,170		)
State:
Current	7			6			5
Deferred	1,653			206			60
	1,660			212			65
Foreign:
Current	2,135			3,089			1,006
Deferred	(95		)	(1,216		)	607
	2,040			1,873			1,613
Valuation allowance	(8,034		)	2,201			4,123
Tax provision	$	2,349		$	1,856		$	1,631

Tax rate reconciliation

	Years Ended December 31,
				2011
	2012			(Restated)			2010
Taxes at federal statutory rate	$	3,054		$	143		$	(1,504	)
State taxes, net of federal benefit	(23		)	(323		)	(284		)
Effect of tax rate differential for foreign subsidiary	(2,695		)	(1,576		)	(1,356		)
Valuation allowance, including tax benefits of stock activity	(8,034		)	2,201			4,123
Nondeductible interest	—			462			(313		)
Foreign tax credit	—			—			(183		)
Stock-based compensation	242			73			155
FCPA settlement	—			—			1,156
Return to provision adjustments	3,568			576			(1,512		)
Subpart F income inclusion	5,594			—			948
Other	643			300			401
Tax provision	$	2,349		$	1,856		$	1,631

Deferred tax assets and liabilities

Items that give rise to significant portions of the deferred tax accounts are as follows (in thousands):

	December 31,
				2011
	2012			(Restated)
Deferred tax assets:
Tax loss carryforwards	$	55,288		$	59,457
Tax credit carryforwards	19			18
Uniform capitalization, contract and inventory related reserves	895			1,319
Accrued vacation	642			631
Stock-based compensation	813			763
Tax basis depreciation less book depreciation	—			984
Intangible assets	1,104			1,232
Deferred revenue	152			265
FCPA settlement	—			1,187
Other	1,185			1,849
Total	60,098			67,705
Deferred tax liabilities:
Inventory deduction	(209		)	(185		)
Pension assets	(1,385		)	(933		)
Allowance for doubtful accounts	(433		)	(245		)
Tax basis depreciation less book depreciation	(224		)	—
Other	—			(1		)
Total	(2,251		)	(1,364		)
Net deferred tax assets before valuation allowance	57,847			66,341
Valuation allowance	(59,740		)	(67,773		)
Net deferred tax liabilities	$	(1,893	)	$	(1,432	)

Reconciliation of the beginning and ending amount of unrecognized tax benefits

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

Balance at December 31, 2011	$	10,433
Increase in prior period positions	510
Decrease in current period positions	(666		)
Balance at December 31, 2012	$	10,277