INCOME TAXES (Tables)

12 Months Ended

Feb. 28, 2014

The Company's income before income taxes consists of the following (in thousands):

	Year Ended February 28,
	2014		2013		2012
Domestic	$	17,185	$	14,811	$	6,047
Foreign		726		637		(768	)
Total income before income taxes	$	17,911	$	15,448	$	5,279

Schedule of Income Tax Benefit (Provision)

The income tax benefit (provision) consists of the following (in thousands):

	Year Ended February 28,
	2014			2013			2012
Current:
Federal	$	-		$	-		$	(52	)
State		(42	)		(9	)		(9	)
Foreign		(45	)		(44	)		-
Total current		(87	)		(53	)		(61	)

Deferred:
Federal		(6,346	)		21,465			-
State		325			7,766			-
Total deferred		(6,021	)		29,231			-

Total income tax benefit (provision)	$	(6,108	)	$	29,178		$	(61	)

Reconciliation of Effective Income Tax Benefit (Provision)

Differences between the income tax benefit (provision) reported in the consolidated statements of income and the income tax amount computed using the statutory U.S. federal income tax rate are as follows (in thousands):

	Year Ended February 28,
	2014			2013			2012
Income tax provision at U.S. statutory federal rate of 35%	$	(6,269	)	$	(5,407	)	$	(1,848	)
State income tax provision, net of federal income tax effect		(770	)		(570	)		(245	)
Foreign taxes		209			178			(268	)
Valuation allowance reductions (increases)		(865	)		35,148			1,816
Research and development tax credits		1,126			721			590
Other, net		461			(892	)		(106	)
Total income tax benefit (provision)	$	(6,108	)	$	29,178		$	(61	)

Schedule of Net Deferred Tax Income Assets

The components of net deferred income tax assets for U.S. income tax purposes are as follows (in thousands):

	February 28,
	2014			2013
Net operating loss carryforwards	$	31,546		$	22,977
Depreciation, amortization and impairments		1,332			9,585
Research and development credits		7,238			6,089
Stock-based compensation		1,639			1,990
Capital loss carryforward		840			831
Other tax credits		551			636
Inventory reserve		576			534
Warranty reserve		593			515
Payroll and employee benefit accruals		1,185			469
Allowance for doubtful accounts		298			179
Other accrued liabilities		1,568			343
Other, net		233			827
Gross deferred tax assets		47,599			44,975
Valuation allowance		(4,849	)		(3,959	)
Net deferred tax assets		42,750			41,016
Less current portion		7,619			6,400
Non-current portion	$	35,131		$	34,616

Reconciliation of Unrecognized Tax Benefits

Activity in the amount of unrecognized tax benefits for uncertain tax positions during the past three years is as follows (in thousands):

Balance at February 28, 2011	$	1,265
Decrease in fiscal 2012		(174	)
Balance at February 28, 2012		1,091
Decrease in fiscal 2013		(2	)
Balance at February 28, 2013		1,089
Decrease in fiscal 2014		(60	)
Balance at February 28, 2014	$	1,029