Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Income Taxes Tables

Components of tax provision

The components of the consolidated provision for income taxes for fiscal 2013, 2012 and 2011 consisted of the following (in thousands):

		March 31,
Current:		2013		2012		2011
Federal	$	-	$	-	$	-
State		473		76		53
Foreign		-		(8)		2
		473		68		55
Deferred
Federal	$	7,465	$	(56,665)	$	-
State		1,795		(5,757)		-
Foreign		-		-		-
Total deferred tax provision (benefit)		9,260		(62,422)		-
Income tax provision (benefit)	$	9,733	$	(62,354)	$	55

Schedule of tax effects of temporary differences that give rise to deferred tax assets and liabilities

Deferred tax assets were comprised of the following (in thousands):

		March 31,
Current deferred tax assets		2013		2012
Net operating loss carryforwards	$	4,795	$	6,518
Inventory valuation		18		45
Reserves and allowances		2,182		1,167
Net current deferred tax assets		6,995		7,730
Net operating loss carryforwards		48,002		54,783
Research and development and other credit carryforwards		3,026		2,436
Fixed assets and intangibles		(2,468)		(1,172)
Net non-current deferred tax assets		48,560		56,047
Valuation allowance		(3,107)		(2,070)
Total	$	52,448	$	61,707

Reconciliation of U.S. statutory income tax rate to company's effective tax rate

A reconciliation of the tax provision to the amounts computed using the statutory U.S. federal income tax rate of 34% is as follows (in thousands):

		Years Ended March 31,
		2013		2012		2011
Tax provision at statutory rate	$	8,048	$	2,337	$	2,226
State income taxes before valuation allowance,
net of federal effect		846		408		372
Research and development credits		(385)		(211)		(128)
Change in valuation allowance		1,038		(65,042)		(2,147)
Loss from change in fair value of warrant liability		-		-		(57)
Compensation/option differences		(207)		(87)		(291)
Non-deductible compensation		403		220		75
Other		(10)		21		5
	$	9,733	$	(62,354)	$	55

Reconciliation of beginning and ending amount of unrecognized tax benefits

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

		Unrecognized Tax Benefits
		2013		2012		2011
Balance at beginning of year	$	2,483	$	1,726	$	1,743
Gross increases - tax position in prior period		73		111		-
Gross decreases - tax position in prior period		-		-		(157)
Gross increases - tax positions related to the current year		468		646		140
Settlements		-		-		-
Lapse of statue of limitations		-		-		-
Balance at end of year	$	3,024	$	2,483	$	1,726