Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Components of the Provision (Benefit) for Income Taxes

The components of income (loss) before provision for income taxes are as follows (in thousands):



	Years Ended September 30,
	2018			2017		2016
Domestic	$	7,845		$	1,900	$	2,100
Foreign	(2,320		)	7,930		(7,550		)
	$	5,525		$	9,830	$	(5,450	)

The components of the provision for income taxes are as follows (in thousands):



	Years Ended September 30,
	2018			2017		2016
Current:
Domestic federal	$	1,167		$	54	$	530
Foreign	(1,404		)	1,330		500
Foreign withholding taxes	356			240		280
Domestic state	101			120		110
Total current	220			1,744		1,420

Deferred:
Domestic federal	—			—		1,680
Total deferred	—			—		1,680
Total provision	$	220		$	1,744	$	3,100

Reconciliation of Actual Income Taxes to Expected Federal Corporate Income Taxes

A reconciliation of actual income taxes to income taxes at the expected United States federal corporate income tax rate is as follows (in thousands, except percentages):



	Years Ended September 30,
	2018			2017			2016
Federal statutory rate	24.3		%	34.0		%	34.0		%

Tax expense (benefit) at the federal statutory rate	$	1,342		$	3,340		$	(1,890	)
Effect of permanent book-tax differences	75			340			1,120
State tax provision	76			100			110
Valuation allowance for net deferred tax assets	617			(1,610		)	2,690
Uncertain tax items	(3,013		)	350			350
Tax rate differential	1,107			(776		)	1,050
Other items	16			—			(330		)
	$	220		$	1,744		$	3,100

Schedule of Deferred Tax Assets and Deferred Tax Liability

The components of deferred tax assets and deferred tax liabilities are as follows (in thousands):



	Years Ended September 30,
	2018			2017
Deferred tax assets (liabilities):
Capitalized inventory costs	$	193		$	210
Inventory write-downs	1,333			1,945
Accrued warranty	204			260
Deferred profits	1,006			1,190
Accruals and reserves not currently deductible	5,017			1,945
Stock option expense	738			1,080
Book vs. tax basis of acquired assets	—			(1,290		)
Federal net operating loss carryforwards	2,922			4,820
Foreign and state net operating losses	13,860			14,800
Book vs. tax depreciation and amortization	(1,667		)	(2,250		)
Foreign tax credits	—			420
Other deferred tax assets	163			—
Total deferred tax assets	23,769			23,130
Valuation allowance	(23,769		)	(22,930		)
Deferred tax assets, net of valuation allowance	$	—		$	200

Changes in Deferred Tax Valuation Allowance

Changes in the deferred tax valuation allowance are as follows (in thousands):



	Years Ended September 30,
	2018		2017
Balance at the beginning of the year	$	22,930	$	24,310
Additions (reductions) to valuation allowance	839		(1,380		)
Balance at the end of the year	$	23,769	$	22,930

Schedule of Unrecognized Tax Benefit Liabilities

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



	Years Ended September 30,
	2018			2017		2016
Balance at beginning of the year	$	4,210		$	3,860	$	3,510
Additions related to tax positions taken in prior years	155			350		350
Reductions due to resolution of uncertain tax position	(3,167		)	—		—
Balance at the end of the year	$	1,198		$	4,210	$	3,860