Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Components of income (loss) before taxes
Components of income (loss) from continuing operations before taxes are as follows for the years ended December 31, (in thousands):
 
 
2011
 
2012
 
2013
Income (loss) from continuing operations before taxes:
 
 
 
 
 
 
U.S.
 
$
(6,229
)
 
$
(7,211
)
 
$
9,051

Foreign
 
(2,106
)
 
(2,442
)
 
(3,460
)
Total income (loss) from continuing operations before taxes
 
$
(8,335
)
 
$
(9,653
)
 
$
5,591
Components of income tax provision
Components of the income tax provision (benefit) are as follows for the years ended December 31, (in thousands):
 
 
2011
 
2012
 
2013
Current:
 
 
 
 
 
 
Federal
 
$
—

 
$
—

 
$
(28
)
State, local and foreign
 
129

 
749

 
184

 
 
129

 
749

 
156

Deferred:
 
 
 
 
 
 
Federal
 
—

 
—

 
—

State, local and foreign
 
—

 
—

 
(105
)
 
 
—

 
—

 
(105
)
Total income tax provision
 
$
129

 
$
749

 
$
51
Reconciliation of the income tax provision
The reconciliation of the income tax provision computed using the federal statutory income tax rate to the recognized income tax provision (benefit) is as follows for the years ended December 31, (in thousands):
 
 
2011
 
2012
 
2013
Federal statutory rate
 
$
(2,834
)
 
$
(3,282
)
 
$
1,901

State and local income taxes, net of federal benefit
 
(85
)
 
(16
)
 
65

State rate change and other adjustments
 
160

 
531

 
—

Adjustments to state deferred taxes
 
—

 
—

 
(590
)
Increase (decrease) in valuation allowance
 
1,490

 
597

 
(1,672
)
Foreign tax differential
 
816

 
915

 
24

Research and development credits
 
(49
)
 
127

 
(365
)
Share based compensation
 
402

 
518

 
491

Uncertain tax positions
 
(46
)
 
767

 
(43
)
Adjustments to federal deferred taxes
 
—

 
525

 
110

Other
 
275

 
67

 
130

Income tax provision
 
$
129

 
$
749

 
$
51
The tax effect of temporary differences that give rise to deferred income taxes
The tax effect of temporary differences that give rise to deferred income taxes are as follows as of December 31, (in thousands):
 
 
2012
 
2013
Deferred tax assets:
 
 
 
 
Net operating loss and tax credit carry forwards
 
$
93,547

 
$
93,128

Inventory reserve and uniform capitalization
 
2,016

 
1,474

Stock options and warrants
 
2,330

 
2,440

In-process research and development
 
237

 
—

Allowance for bad debts
 
232

 
171

Vacation accrual
 
386

 
261

Deferred rent
 
429

 
143

Deferred revenue
 
376

 
380

Warranty accrual
 
937

 
958

Depreciation and amortization
 
1,012

 
1,358

Other accruals and reserves
 
701

 
362

Accrued Bonus
 
—

 
873

Acquired intangibles
 
1,336

 
1,195

Total deferred tax assets
 
103,539

 
102,743

Deferred tax liabilities:
 
 
 
 
State taxes
 
(3,603
)
 
(3,885
)
Other
 
(205
)
 
(548
)
Total deferred income tax liabilities
 
(3,808
)

(4,433
)
Valuation allowance
 
(99,731
)
 
(98,205
)
Net deferred tax assets
 
$
—

 
$
105
Summary of the activity related to unrecognized tax benefits
The following table summarizes the activity related to our unrecognized tax benefits (in thousands):
 
 
2011
 
2012
 
2013
Balance, January 1
 
$
5,111

 
$
5,025

 
$
5,726

Increase related to prior period positions
 
—

 
583

 
341

Increase related to current year tax positions
 
124

 
241

 
380

Reductions for tax positions of prior years
 
(210
)
 
(123
)
 
(676
)
Settlements
 
—

 
—

 
—

Balance, December 31
 
$
5,025

 
$
5,726

 
$
5,771