XML 36 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Jan. 01, 2012
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The following table presents the U.S. and foreign components of consolidated income (loss) before income taxes and the provision for (benefit from) income taxes (in thousands):
| Fiscal Years
| 2011 |  | 2010 |  | 2009
Income (loss) before income taxes: |  |  |  |  |
U.S. | $ | (7,569 | ) |  | $ | (209 | ) |  | $ | (9,999 | )
Foreign | 25 |  |  | 148 |  |  | 182 |
Income (loss) before income taxes | $ | (7,544 | ) |  | $ | (61 | ) |  | $ | (9,817 | )
Provision for (benefit from) income taxes: |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | (11 | ) |  | $ | (84 | )
State | 2 |  |  | 2 |  |  | 3 |
Foreign | 66 |  |  | 51 |  |  | 47 |
Subtotal | 68 |  |  | 42 |  |  | (34 | )
Deferred: |  |  |  |  |
Federal | — |  |  | (170 | ) |  | — |
State | — |  |  | (40 | ) |  | — |
Foreign | (18 | ) |  | (16 | ) |  | (29 | )
Subtotal | (18 | ) |  | (226 | ) |  | (29 | )
Provision for (benefit from) income taxes | $ | 50 |  |  | $ | (184 | ) |  | $ | (63 | )
Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company has provided a full valuation allowance against its U.S. federal and state deferred tax assets at January 1, 2012. The Company believes it is more likely than not it will be able to realize its foreign deferred tax assets. Deferred tax balances are comprised of the following (in thousands):
| January 1, 2012 |  | January 2, 2011
Deferred tax assets: |  |  |
Net operating losses and capital losses | $ | 34,733 |  |  | $ | 35,881 |
Accruals and reserves | 2,753 |  |  | 2,746 |
Credits carryforward | 5,304 |  |  | 5,085 |
Unrealized loss on marketable securities | 3,057 |  |  | 2,357 |
Depreciation and amortization | 9,150 |  |  | 6,081 |
Stock-based compensation | 971 |  |  | 562 |
Other | 211 |  |  | 209 |
| 56,179 |  |  | 52,921 |
Valuation allowances | (56,067 | ) |  | (52,827 | )
Deferred tax asset | $ | 112 |  |  | $ | 94 |
Deferred tax liability | — |  |  | — |
A rate reconciliation between income tax provisions at the U.S. federal statutory rate and the effective rate reflected in the consolidated statement of operations is as follows:
| Fiscal Years
| 2011 |  | 2010 |  | 2009
Income tax expense/(benefit) at statutory rate | $ | (2,565 | ) |  | $ | (21 | ) |  | $ | (3,338 | )
State taxes | 2 |  |  | 2 |  |  | 2 |
Refundable R&D credit | — |  |  | (11 | ) |  | (85 | )
Stock Compensation and other permanent differences | 192 |  |  | 224 |  |  | 378 |
Foreign taxes | 41 |  |  | (15 | ) |  | (44 | )
Benefit allocated from other comprehensive income | — |  |  | (209 | ) |  | — |
Future benefit of deferred tax assets not recognized | 2,380 |  |  | (154 | ) |  | 3,024 |
| $ | 50 |  |  | $ | (184 | ) |  | $ | (63 | )
As of January 1, 2012, the Company had net operating loss carryforwards of approximately $97.8 million for federal and $46.1 million for state income tax purposes. If not utilized, these carryforwards will begin to expire beginning in 2012 for federal and state purposes. Included in the net operating loss carryforwards amount is $7.8 million for federal and $4.9 million for state income tax purposes, which, when recognized, will result in a credit to stockholders' equity. The Company has research credit carryforwards of approximately $2.8 million for federal and $3.6 million for state income tax purposes. If not utilized, the federal carryforwards will expire in various amounts beginning in 2012. The California credit can be carried forward indefinitely. Under the Tax Reform Act of 1986, the amount of and the benefit from net operating loss carryforwards and credit carryforwards may be impaired or limited in certain circumstances. Events which may restrict utilization of a company's net operating loss and credit carryforwards include, but are not limited to, certain ownership change limitations as defined in Internal Revenue Code Section 382 and similar state provisions. In the event the Company has had a change of ownership, utilization of carryforwards could be restricted to an annual limitation. The annual limitation may result in the expiration of net operating loss carryforwards and credit carryforwards before utilization. As of the end of 2011, cumulative unremitted foreign earnings of $900,000 are considered to be permanently invested outside the United States. Accordingly, no U.S. taxes have been provided. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
| January 1, 2012 |  | January 2, 2011 |  | January 3, 2010
Beginning balance of unrecognized tax benefits | $ | 73 |  |  | $ | 70 |  |  | $ | 66 |
Gross increases for tax positions of current year | 4 |  |  | 3 |  |  | 4 |
Ending balance of unrecognized tax benefits | $ | 77 |  |  | $ | 73 |  |  | $ | 70 |
The amount of unrecognized tax benefits that would affect our effective tax rate if recognized is $77,000 as of January 1, 2012. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of January 1, 2012, January 2, 2011 and January 3, 2010, the Company had approximately $26,000, $20,000 and $9,000 of accrued interest and penalties related to uncertain tax positions. The Company is not currently under exam and the Company's historical net operating loss and credit carryforwards may be adjusted by the IRS and other tax authorities until the statute closes on the year in which such attributes are utilized. The Company estimates that its unrecognized tax benefits will not change significantly within the next twelve months.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration