Income Taxes (Tables)

12 Months Ended

Mar. 31, 2015

Income Taxes Tables

Components of tax provision

The components of the consolidated provision for income taxes for fiscal 2015, 2014 and 2013 consisted of the following (in thousands):

		March 31,
Current:		2015		2014		2013
Federal	$	92	$	-	$	-
State		457		276		434
Foreign		1		-		-
Total current tax provision		550		276		434
Deferred
Federal	$	2,602	$	1,578	$	7,185
State		(363)		365		1,780
Foreign		-		-		-
Total deferred tax provision		2,239		1,943		8,965
Total income tax provision	$	2,789	$	2,219	$	9,399

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		2015		2014
Net operating loss carryforwards	$	2,179	$	333
Inventory valuation		14		33
Reserves and allowances		2,394		1,791
Net current deferred tax assets		4,587		2,157
Net operating loss carryforwards		44,228		51,598
Research and development and other credit carryforwards		5,414		4,488
Fixed assets and intangibles		(1,705)		(2,819)
Net non-current deferred tax assets		47,937		53,267
Valuation allowance		(4,901)		(5,562)
Total	$	47,623	$	49,862

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

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

		Years Ended March 31,
		2015		2014		2013
Tax provision at statutory rate	$	1,599	$	1,285	$	7,768
State income taxes before valuation allowance,
net of federal effect		269		196		822
Research and development credits		(725)		(1,534)		(385)
Change in valuation allowance		(1,480)		1,264		1,038
Compensation/option differences		(331)		(264)		(207)
Non-deductible compensation		746		605		403
Acquisition costs		-		230		-
Expiring CA NOLs		1,484		240		-
Foreign loss not benefited		1,192		271		-
Other		35		(74)		(40)
Total income tax provision	$	2,789	$	2,219	$	9,399

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
		2015		2014		2013
Balance at beginning of year	$	2,165	$	3,024	$	2,483
Gross increases - tax position in prior period		27		-		73
Gross decreases - tax position in prior period		-		(1,081)		-
Gross increases - tax positions related to the current year		228		222		468
Settlements		-		-		-
Lapse of statute of limitations		-		-		-
Balance at end of year	$	2,420	$	2,165	$	3,024