Income Taxes (Tables)

9 Months Ended

Sep. 30, 2012

Components of Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):


	Fiscal Years Ended June 30,						Six Months Ended December 31,
	2009		2010		2011		2010		2011
							(Unaudited)
Current provision:
Federal	$	—	$	—	$	62	$	111	$	325
State		5		2		988		449		396
Foreign		43		278		286		93		329

		48		280		1,336		653		1,050

Deferred provision:
Federal		—		—		—		—		22
State		—		—		—		—		3
Foreign		—		—		—		—		—

		—		—		—		—		25

Provision for income taxes	$	48	$	280	$	1,336	$	653	$	1,075

Components of Income (Loss) From Continuing Operations Before Income Taxes

The components of income (loss) from continuing operations before income taxes by United States and foreign jurisdictions were as follows (in thousands):


	Fiscal Years Ended June 30,								Six Months Ended December 31,
	2009			2010			2011		2010		2011
									(Unaudited)
United States	$	(5,864	)	$	(29,602	)	$	10,585	$	5,368	$	(1,375	)
Foreign		6			177			581		88		(4,234	)

Total	$	(5,858	)	$	(29,425	)	$	11,166	$	5,456	$	(5,609	)

Reconciliation of Federal Income Tax Rate

The effective income tax rate differs from the federal statutory income tax rate applied to the income (loss) before provision for income taxes due to the following (in thousands):


	Fiscal Years Ended June 30,									Six Months Ended December 31,
	2009			2010			2011			2010			2011
										(Unaudited)
Tax computed at the federal statutory rate	$	(1,991	)	$	(10,005	)	$	3,799		$	1,857		$	(1,907	)
State taxes, net of federal benefit		(312	)		(359	)		250			122			82
Tax rate differential for international subsidiaries⁽¹⁾		(1	)		(13	)		(47	)		(23	)		1,589
Stock-based compensation		50			149			727			244			978
Tax credits		(677	)		(282	)		(409	)		(150	)		(378	)
Tax contingencies		194			265			171			74			178
Permanent differences		226			411			305			120			244
Change in state rate		32			(1,170	)		662			295			8
Other		(15	)		117			344			379			146
Valuation allowance		2,542			11,167			(4,466	)		(2,265	)		135

Provision for income taxes	$	48		$	280		$	1,336		$	653		$	1,075

(1)

The change in the impact of the tax rate differential for international jurisdictions is primarily attributable to a change in the mix of income/loss from the United States to international jurisdictions with different income tax rates compared to the United States.

Reconciliation of Deferred Tax Assets and Liabilities

A valuation allowance has been recognized to offset our deferred tax assets as realization for fiscal 2010 and 2011 and the six months ended December 31, 2011 of such deferred tax assets has not met the more likely than not threshold.


	June 30,						December 31, 2011
	2010			2011			December 31, 2011
Deferred tax assets:
Net operating losses	$	15,731		$	9,936		$	4,182
Deferred revenue		848			2,397			8,434
Accrued state taxes		—			286			28
Accrued expenses		416			363			672
Deferred rent		128			183			201
Credit carryforwards		781			858			1,357
Incentive from lessor		—			1,096			1,023
Stock-based compensation		—			345			1,333
Other		409			461			1,130

Total deferred tax assets		18,313			15,925			18,360
Less valuation allowance		(18,160	)		(13,694	)		(13,829	)

		153			2,231			4,531
Deferred tax liabilities:
Accrued expenses		—			—			—
Property and equipment		(153	)		(2,231	)		(4,531	)

Net deferred tax assets	$	—		$	—		$	—

Reconciliation of Beginning and Ending Balance of Total Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in thousands):


	Fiscal Years Ended June 30,						Six Months Ended December 31,
	2009		2010		2011		2010		2011
							(Unaudited)
Beginning balance	$	98	$	185	$	374	$	374	$	519
Tax provisions taken in the period:
Additions		87		189		145		73		191
Reductions		—		—		—		—		—

Ending balance	$	185	$	374	$	519	$	447	$	710