Note 7 - Income Taxes

9 Months Ended

Jul. 31, 2012

Income Tax Disclosure [Text Block]

7. INCOME TAXES

Our effective income tax rate from continuing operations for the three and nine months ended July 31, 2012 was 21.8% and 28.1%, respectively. Our effective income tax rate from continuing operations for the three and nine months ended July 31, 2011 was 28.1% and 26.6%, respectively. The lower effective income tax rate for the three months ended July 31, 2012 compared to the prior year period is primarily attributable to due diligence and transaction costs incurred in the prior quarter which became deductible in the current quarter due to our decision not to proceed with the acquisition of Ongame Network Ltd (“Ongame”).  The rate was also favorably impacted by the recognition of certain unrecognized tax benefits for which the statute of limitations expired.  The higher effective income tax rate for the nine months ended July 31, 2012 compared to the prior year period is primarily attributable to the changes in geographic income before taxes. Our effective income tax rate may fluctuate due to changes in the amount and mix of domestic and foreign income, changes in tax legislation, changes in valuation allowances and changes in assessments of uncertain tax positions and related accumulated interest and penalties.