Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Provision (benefit) for income taxes from continuing operations

The provision (benefit) for income taxes from continuing operations consists of:

	Year ended December 31,
	(in thousands)
	2013			2012
Current income tax:
Federal	$	(16	)	$	(206	)
State		27			160
Foreign		1,087			582
		1,098			536
Deferred income tax:
Federal		(1,813	)		(1,650	)
State		(65	)		(300	)
		(1,878	)		(1,950	)
Benefit for income taxes	$	(780	)	$	(1,414	)

Deferred tax liabilities (assets)

Deferred tax liabilities (assets) are comprised of the following at:

	December 31,
	(in thousands)
	2013			2012
Deferred tax liabilities:
Software development costs	$	5,042		$	3,740
Gross deferred tax liabilities		5,042			3,740
Allowances for bad debts and inventory		(3,819	)		(3,640	)
Capitalized inventory costs		(122	)		(125	)
Intangible assets		(3,223	)		(4,119	)
Employee benefit accruals		(1,764	)		(1,805	)
Federal net operating loss carryforward		(10,524	)		(8,122	)
State net operating loss carryforward		(1,200	)		(957	)
Tax credit carryforwards		(4,979	)		(4,006	)
Foreign currency		(33	)		(147	)
Other		(585	)		(334	)
Gross deferred tax assets		(26,249	)		(23,255	)
Less valuation allowance		2,377			2,198
Net deferred tax assets	$	(18,830	)	$	(17,317	)

Effective income tax rate reconciliation

The provision (benefit) for income taxes differed from the provision computed by applying the Federal statutory rate to income (loss) from continuing operations before taxes due to the following:

	Year ended December 31,
	2013			2012
Federal statutory tax rate		(34.0	)%		(34.0	)%
State taxes		1.7			(6.2	)
Non deductible expenses		61.3			6.2
Tax credits		(378.2	)		0.0
Foreign subsidiary liquidation		0.0			(6.3	)
Foreign income tax rate differential		(103.0	)		(5.1	)
Valuation allowance		84.8			1.3
Other		(2.4	)		(0.4	)
		(369.8	)%		(44.5	)%