Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Summary of income tax expense

A summary of the income tax expense is as follows (in thousands):

		Year Ended December 31,
		2012			2011			2010
Current:
Federal	$	50		$	(6,844	)	$	3,071
State		(440	)		190			652
Foreign		156			311			54
Total current		(234	)		(6,343	)		3,777
Deferred:
Federal		-			(873	)		943
State		-			1,713			(82	)
Excess tax benefits related to stock based compensation		-			-			1,543
Tax deficiencies related to restricted stock expense		-			(426	)		(15	)
Other adjustments		-			-			(1	)
Total deferred		-			414			2,388
Total provision	$	(234	)	$	(5,929	)	$	6,165

Federal statutory rate to the profit before income taxes

A reconciliation of the provision for income taxes to the amount of income tax expense that would result from applying the federal statutory rate to the profit before income taxes is as follows:

	Year Ended December 31,
	2012		2011		2010
Federal statutory rate	35	%	35	%	35	%
State tax, net of federal benefit	3		4		5
Equity compensation	(2	)	-		3
R&D tax credit	-		-		(5	)
Goodwill impairment	-		(5	)	-
Other	(4	)	-		(5	)
Change in valuation allowance	(31	)	(30	)	-
	1	%	4	%	33	%

Components of deferred tax assets and liabilities

The major components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

		Year Ended December 31,
	2012			2011
Current
Various reserves	$	199		$	369
Nondeductible accruals		1,352			1,661
Prepaid expenses		(95	)		(96	)
Other		43			25
Valuation allowance		(1,410	)		(1,951	)
Total Current	$	89		$	8
Non-current
Credit carryforwards		3,708			4,223
Net operating loss carryforwards		23,808			11,286
Fixed assets		1,299			1,695
Amortization		31,483			35,252
Identifiable intangibles acquired		(2,239	)		(2,288	)
Equity based compensation		934			978
Other		24			83
Valuation allowance		(59,108	)		(51,239	)
Total Non-current	$	(91	)	$	(10	)

Gross unrecognized tax benefits changes in balances

The Company’s gross unrecognized tax benefits as of December 31, 2012 and the changes in those balances are as follows (in thousands):

		Year Ended December 31,
		2012		2011
Beginning Balance	$	324	$	-
Increases for tax positions for current year		-		162
Increases/(Decreases) in tax positions for the prior year		268		162
Lapse in statute of limitations		-		-
Settlements		-		-
Other		-		-
Change in valuation allowance		-		-
Gross Unrecognized tax benefits, ending balance	$	592	$	324