Income Taxes	9 Months Ended
Oct. 31, 2011
Income Taxes	12. Income Taxes For the three months and nine months ended October 31, 2011, the Company recorded an income tax benefit of $478,000 and $437,000, on a loss before tax of $459,000 and $35,000, respectively. During the third quarter of fiscal 2012, the Company recognized $479,000 of tax benefits resulting from the expiration of the statute of limitations for uncertain tax positions. The statute of limitations varies by the various jurisdictions in which we operate. In any given year, the statute of limitations in certain jurisdictions may lapse without examination and any uncertain tax position taken in those years will result in reduction of the liability for unrecognized tax benefits for that year. The difference between our forecasted effective tax rate and the federal statutory rate of 35% is primarily due to the differential in foreign tax rates and the utilization of U.S. federal tax credits. For the three and nine months ended October 31, 2010, the Company recorded an income tax provision of $1.9 million on a loss before tax of $3.2 million and an income tax benefit of $1.7 million on income before tax of $17.2 million, respectively. For the three months ended October 31, 2010, the income tax provision was due to the adjustment during the second quarter of fiscal 2011 to reflect the lower forecasted profit before tax for the fiscal year 2011. The Company estimates its annual effective tax rate for the year and applies that rate to the year to date profit before tax to determine the quarterly and year to date tax expense or benefit. The income tax benefit recorded for the nine months ended October 31, 2010 includes the second quarter benefit resulting from the change in lower forecasted fiscal 2011 profit before tax as well as the benefit in the first quarter associated with the gain on the sale of the Company’s equity investment in Casa Systems, Inc. in the first quarter and the benefit from the decrease of a portion of the valuation allowance against its deferred tax assets due to the Company having met the “more likely than not” realization criteria on its U.S. deferred tax assets as of October 31, 2010. The effective income tax rate is based upon the estimated income for the year, the composition of the income in different countries and adjustments, if any, in the applicable quarterly periods for the potential tax consequences, benefits, resolution of tax audits or other tax contingencies. Our income tax provision or benefit consists of federal, foreign, and state income taxes.

Income Taxes

9 Months Ended

Oct. 31, 2011

12. Income Taxes

For the three months and nine months ended October 31, 2011, the Company recorded an income tax benefit of $478,000 and $437,000, on a loss before tax of $459,000 and $35,000, respectively. During the third quarter of fiscal 2012, the Company recognized $479,000 of tax benefits resulting from the expiration of the statute of limitations for uncertain tax positions. The statute of limitations varies by the various jurisdictions in which we operate. In any given year, the statute of limitations in certain jurisdictions may lapse without examination and any uncertain tax position taken in those years will result in reduction of the liability for unrecognized tax benefits for that year. The difference between our forecasted effective tax rate and the federal statutory rate of 35% is primarily due to the differential in foreign tax rates and the utilization of U.S. federal tax credits.

For the three and nine months ended October 31, 2010, the Company recorded an income tax provision of $1.9 million on a loss before tax of $3.2 million and an income tax benefit of $1.7 million on income before tax of $17.2 million, respectively. For the three months ended October 31, 2010, the income tax provision was due to the adjustment during the second quarter of fiscal 2011 to reflect the lower forecasted profit before tax for the fiscal year 2011. The Company estimates its annual effective tax rate for the year and applies that rate to the year to date profit before tax to determine the quarterly and year to date tax expense or benefit. The income tax benefit recorded for the nine months ended October 31, 2010 includes the second quarter benefit resulting from the change in lower forecasted fiscal 2011 profit before tax as well as the benefit in the first quarter associated with the gain on the sale of the Company’s equity investment in Casa Systems, Inc. in the first quarter and the benefit from the decrease of a portion of the valuation allowance against its deferred tax assets due to the Company having met the “more likely than not” realization criteria on its U.S. deferred tax assets as of October 31, 2010.

The effective income tax rate is based upon the estimated income for the year, the composition of the income in different countries and adjustments, if any, in the applicable quarterly periods for the potential tax consequences, benefits, resolution of tax audits or other tax contingencies. Our income tax provision or benefit consists of federal, foreign, and state income taxes.