Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2014
Income Loss from Continuing Operations Before Provision for Income Taxes

The components of income (loss) from continuing operations before provision for income taxes consist of the following (in thousands):

 

     Years ended December 31,  
     2012      2013      2014  

United States

    $ (17,696 )     $ 2,710       $ 4,899   

Foreign

      4         2         1  
  

 

 

     

 

 

     

 

 

  

Income (loss) before provision for income taxes

 $ (17,692 )  $ 2,712    $ 4,900   
  

 

 

     

 

 

     

 

 

  
Provision for Income Taxes from Continuing Operations

The provision for income taxes from continuing operations for the Company consists of the following (in thousands):

 

     Years ended December 31,  
     2012     2013     2014  

Current provision (benefit)

       

Federal

    $ (69 )    $ (11 )    $ 2   

State

      63        34        34   

Foreign

      2        —         —    

Deferred provision

       

Federal

      4,139        874        3,786   

State

      —         —         —    

Tax benefit of equity adjustment for stock option exercises and restricted stock vesting

      (4,227 )      (76 )      (1,231 ) 

Valuation allowance

      16,400        651        21,686   

Other

      258        283        —    
  

 

 

    

 

 

    

 

 

  

Total income tax expense

 $ 16,566    $ 1,755    $ 24,277   
  

 

 

    

 

 

    

 

 

  
Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) from continuing operations differed from the amounts computed by applying the U.S. federal income tax rates of 34% to income (loss) before provision for income taxes as a result of the following (in thousands):

 

     Years ended December 31,  
     2012      2013      2014  

Income tax expense (benefit) at U.S. statutory rate

    $ (6,016 )     $ 922       $ 1,666   

State taxes, net of valuation allowance

      40         17         22   

Non-deductible stock compensation

      589         571         602   

Non-deductible goodwill impairment

      3,534         —          —    

Effect of rate change on deferred items

      1,289         —          —    

Valuation allowance

      16,400         651         21,686   

Effect of non-U.S. operations, net of valuation allowance

      —          —           —    

Research tax credits

      (242 )       (851 )       (547 ) 

Other non-deductible expenses

      972         445         848   
  

 

 

     

 

 

     

 

 

  

Total income tax expense

 $ 16,566    $ 1,755    $ 24,277   
  

 

 

     

 

 

     

 

 

  
Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in thousands):

 

     As of December 31,  
     2013     2014  

Deferred tax assets:

     

Accrued liabilities not currently deductible

    $ 1,631      $ 1,589   

Intangible assets-excess of financial statement over tax amortization

      14,208        12,156   

Goodwill recognized on financial statements in excess of tax amortization

      15,420        11,864   

Stock-based compensation

      5,158        4,542   

Federal net operating losses and AMT credit carryforwards

      3,897        5,209   

State and city net operating loss carryforwards

      5,883        5,964   

Research & experimental tax credit carryforwards

      2,613        2,626   

Other

      582        852   
  

 

 

    

 

 

  

Gross deferred tax assets

   49,392      44,802   

Valuation allowance

   (23,034 )    (44,802 ) 
  

 

 

    

 

 

  

Net deferred tax assets

   26,358      —     

Deferred tax liabilities:

Excess of tax over financial statement depreciation

   204      —     
  

 

 

    

 

 

  

Total deferred tax liabilities

   204      —     
  

 

 

    

 

 

  

Net deferred tax assets

 $ 26,154    $ —     
  

 

 

    

 

 

  
Reconciliation of Tax Contingencies

The following table summarizes activity related to tax contingencies from January 1, 2012 to December 31, 2014 (in thousands):

 

Gross tax contingencies—January 1, 2012

 $  305   

Gross increases to tax positions associated with prior periods

 $ 28   

Gross increases to current period tax positions

 $ —    

Gross decreases to tax positions associated with prior periods

 $ (83 ) 

Settlements

 $ —    

Lapse of statute of limitations

 $ —    
  

 

 

  

Gross tax contingencies—December 31, 2012

 $ 250   

Gross increases to tax positions associated with prior periods

 $ —    

Gross increases to current period tax positions

 $ 284   

Gross decreases to tax positions associated with prior periods

 $ —    

Settlements

 $ —    

Lapse of statute of limitations

 $ —    
  

 

 

  

Gross tax contingencies—December 31, 2013

 $ 534   

Gross increases to tax positions associated with prior periods

 $ —    

Gross increases to current period tax positions

 $ 183   

Gross decreases to tax positions associated with prior periods

 $ —    

Settlements

 $ —    

Lapse of statute of limitations

 $ —    
  

 

 

  

Gross tax contingencies—December 31, 2014

 $ 717