Income Taxes (Tables)

3 Months Ended

Apr. 30, 2015

Company's Income Tax Expense Related to Continuing Operations

The Company’s income tax expense amounts for the three months ended April 30, 2015 and 2014 differed from the expected income tax expense amounts computed by applying the federal corporate income tax rate of 35% to income before income taxes for the periods as shown in the table below.


	Three Months Ended April 30,
	2015			2014
Computed expected income tax expense	$	5,499,000		$	2,343,000
State income taxes, net of federal tax benefit		815,000			300,000
Permanent differences, net		(1,436,000	)		(715,000	)
Other, net		(17,000	)		(34,000	)

	$	4,861,000		$	1,894,000

Schedule of Tax Effects of Temporary Differences that Gave Rise to Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred tax assets and liabilities as of April 30 and January 31, 2015 are presented below:


	April 30,			January 31,
	2015			2015
Assets:
Stock options	$	1,816,000		$	1,649,000
Purchased intangibles		1,106,000			1,132,000
Accrued liabilities		337,000			428,000
Other		283,000			107,000

		3,542,000			3,316,000

Liabilities:
Purchased intangibles	$	(3,048,000	)	$	(2,931,000	)
Construction contracts		(842,000	)		(830,000	)
Property and equipment		(503,000	)		(533,000	)
Other		(30,000	)		(32,000	)

		(4,423,000	)		(4,326,000	)

Net deferred tax liabilities	$	(881,000	)	$	(1,010,000	)