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The provision for (benefit from) income taxes differs from that based on the federal statutory rate due to the following (in thousands): 

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The approximate tax effect of each type of temporary difference and carry forward is as follows (in thousands) 

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(1)The Company recorded a $14.5 million deferred tax liability associated with the acquisition of Hyprotech. 

The tax credits and net operating loss carryforwards expire at various dates from 2004 through 2024. The Tax Reform Act of 1986 contains provisions that may limit the net operating loss and tax credit carryforwards available to be used in any given year in the event of significant changes in ownership, as defined. Due to the uncertainty surrounding the realization and timing of these tax attributes, the Company has recorded a valuation allowance of approximately $27.0 million and $76.2 million as of June 30, 2002 and 2003, respectively. 

