INCOME TAXES (Tables)

12 Months Ended

Feb. 28, 2015

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

	Year Ended February 28,
	2015		2014		2013
Domestic	$	24,684	$	17,185	$	14,811
Foreign		116		726		637
Total income before income taxes	$	24,800	$	17,911	$	15,448

Schedule of Income Tax Benefit (Provision)

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

	Year Ended February 28,
	2015			2014			2013
Current:
Federal	$	-		$	-		$	-
State		(325	)		(42	)		(9	)
Foreign		(49	)		(45	)		(44	)
Total current		(374	)		(87	)		(53	)

Deferred:
Federal		(8,134	)		(6,346	)		21,465
State		216			325			7,766
Total deferred		(7,918	)		(6,021	)		29,231

Total income tax benefit (provision)	$	(8,292	)	$	(6,108	)	$	29,178

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,
	2015			2014			2013
Income tax provision at U.S. statutory federal rate of 35%	$	(8,680	)	$	(6,269	)	$	(5,407	)
State income tax provision, net of federal income tax effect		(867	)		(770	)		(570	)
Foreign taxes		41			209			178
Valuation allowance reductions (increases)		250			(865	)		35,148
Research and development tax credits		1,556			1,126			721
Other, net		(592	)		461			(892	)
Total income tax benefit (provision)	$	(8,292	)	$	(6,108	)	$	29,178

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,
	2015			2014
Net operating loss carryforwards	$	20,318		$	31,546
Depreciation, amortization and impairments		1,785			1,332
Research and development credits		8,738			7,238
Stock-based compensation		1,869			1,639
Capital loss carryforward		-			840
Other tax credits		635			551
Inventory reserve		484			576
Warranty reserve		697			593
Payroll and employee benefit accruals		1,797			1,185
Allowance for doubtful accounts		258			298
Other accrued liabilities		2,158			1,568
Other, net		242			233
Gross deferred tax assets		38,981			47,599
Valuation allowance		(4,159	)		(4,849	)
Net deferred tax assets		34,822			42,750
Less current portion		11,367			7,619
Non-current portion	$	23,455		$	35,131

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, 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
Decrease in fiscal 2015		-
Balance at February 28, 2015	$	1,029