Income Taxes	6 Months Ended
Mar. 31, 2013
Income Taxes
Income Taxes	3. Income Taxes At the end of each interim reporting period, the Company prepares an estimate of the annual effective income tax rate, which is applied to year-to-date income to compute income tax expense exclusive of discrete items. Tax items discrete to a specific quarter are included in computing the income tax expense for that quarter. The estimated annual effective tax rate used in providing for income taxes on a year-to-date basis may change in subsequent interim periods. The income tax expense for the three and six months ended March 31, 2013 was $123,000 and $219,000, respectively, compared to a tax expense of $86,000 and benefit of $165,000, respectively, for the three and six months ended March 31, 2012. The income tax expense for the three and six months ended March 31, 2013 was the result of the actual pre-tax income for the respective three and six months compared to the actual pre-tax income and pre-tax loss from the same periods in the prior year, respectively. The effective tax rate for the three months ended March 31, 2013 and 2012 were 10% and 23%, respectively. The effective tax rate for the three months ended March 31, 2013 differs from the statutory rate, due primarily to the retroactive extension of the Federal Research and Development Tax Credit (“Federal R&D Tax Credit”). On January 1, 2013, Congress enacted the American Taxpayer Relief Act of 2012 which retroactively reinstated and extended the Federal R&D Tax Credit from January 1, 2012 to December 31, 2013. The current year estimated annual effective income tax rate reflects a full year benefit from the Federal R&D Tax Credit. Additionally, the retroactive benefit for the previously expired period from January 1, 2012 to September 30, 2012 is reflected as a discrete item which further reduced the Company’s income tax expense for the three months ended March 31, 2013. The effective tax rate for the three month period ended March 31, 2012 differs from the statutory rate primarily because of the limitation on the recognition of the current tax benefit from the carry-back of year-to-date losses to recover federal income taxes previously paid, and because any benefit from deferred tax assets generated (used) was fully reserved (offset) by the valuation allowance maintained at that time. The effective tax rates for the six months ended March 31, 2013 was 13%. The effective tax rate differs from the statutory rate for the six months ended March 31, 2013 due primarily to the favorable impact of the extension of the Federal R&D Tax Credit mentioned above. The effective tax benefit rate for the six months ended March 31, 2012 was 75%. The effective tax benefit rate differs from the statutory rate for the six months ended March 31, 2012 primarily because of a decrease in the liability recorded for uncertain tax positions due to the lapse of an applicable statute of limitation, resulting in a greater benefit to the period. At September 30, 2012, the Company considered all available evidence, including the recent history of income before income taxes, together with projections of profitability in future periods and, as a result of this analysis, determined that the positive evidence was sufficient to conclude that it was appropriate to reverse the valuation allowance previously recorded against its net federal deferred tax assets. At March 31, 2013, the balance of the deferred tax valuation allowance relates principally to NOL of certain state taxing jurisdictions. The Company will continue to maintain the balance of the valuation allowance until an appropriate level of profitability is sustained in certain jurisdictions to warrant a conclusion that it is no longer more likely than not that a portion, or all, of these net state deferred tax assets will not be realized in future periods. The Company believes that its estimate of future taxable income is inherently uncertain, and if its current or future operations generate losses, further adjustments to the valuation allowance are possible.

3. Income Taxes

At the end of each interim reporting period, the Company prepares an estimate of the annual effective income tax rate, which is applied to year-to-date income to compute income tax expense exclusive of discrete items. Tax items discrete to a specific quarter are included in computing the income tax expense for that quarter. The estimated annual effective tax rate used in providing for income taxes on a year-to-date basis may change in subsequent interim periods. The income tax expense for the three and six months ended March 31, 2013 was $123,000 and $219,000, respectively, compared to a tax expense of $86,000 and benefit of $165,000, respectively, for the three and six months ended March 31, 2012. The income tax expense for the three and six months ended March 31, 2013 was the result of the actual pre-tax income for the respective three and six months compared to the actual pre-tax income and pre-tax loss from the same periods in the prior year, respectively.

The effective tax rate for the three months ended March 31, 2013 and 2012 were 10% and 23%, respectively. The effective tax rate for the three months ended March 31, 2013 differs from the statutory rate, due primarily to the retroactive extension of the Federal Research and Development Tax Credit (“Federal R&D Tax Credit”). On January 1, 2013, Congress enacted the American Taxpayer Relief Act of 2012 which retroactively reinstated and extended the Federal R&D Tax Credit from January 1, 2012 to December 31, 2013. The current year estimated annual effective income tax rate reflects a full year benefit from the Federal R&D Tax Credit. Additionally, the retroactive benefit for the previously expired period from January 1, 2012 to September 30, 2012 is reflected as a discrete item which further reduced the Company’s income tax expense for the three months ended March 31, 2013.

The effective tax rate for the three month period ended March 31, 2012 differs from the statutory rate primarily because of the limitation on the recognition of the current tax benefit from the carry-back of year-to-date losses to recover federal income taxes previously paid, and because any benefit from deferred tax assets generated (used) was fully reserved (offset) by the valuation allowance maintained at that time.

The effective tax rates for the six months ended March 31, 2013 was 13%. The effective tax rate differs from the statutory rate for the six months ended March 31, 2013 due primarily to the favorable impact of the extension of the Federal R&D Tax Credit mentioned above. The effective tax benefit rate for the six months ended March 31, 2012 was 75%. The effective tax benefit rate differs from the statutory rate for the six months ended March 31, 2012 primarily because of a decrease in the liability recorded for uncertain tax positions due to the lapse of an applicable statute of limitation, resulting in a greater benefit to the period.

At September 30, 2012, the Company considered all available evidence, including the recent history of income before income taxes, together with projections of profitability in future periods and, as a result of this analysis, determined that the positive evidence was sufficient to conclude that it was appropriate to reverse the valuation allowance previously recorded against its net federal deferred tax assets. At March 31, 2013, the balance of the deferred tax valuation allowance relates principally to NOL of certain state taxing jurisdictions. The Company will continue to maintain the balance of the valuation allowance until an appropriate level of profitability is sustained in certain jurisdictions to warrant a conclusion that it is no longer more likely than not that a portion, or all, of these net state deferred tax assets will not be realized in future periods. The Company believes that its estimate of future taxable income is inherently uncertain, and if its current or future operations generate losses, further adjustments to the valuation allowance are possible.