INCOME TAX

9 Months Ended

Mar. 31, 2014

Notes to Financial Statements

INCOME TAX (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

The Company had an income tax benefit of $184 and $266 for the three and nine months ended March 31, 2014 as compared to the income tax expense of $28 and income tax benefit of $96, respectively, for the same periods in the last fiscal year.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

Balance at July 1, 2012	$	249
Additions based on current year tax positions		-
Additions for prior year(s) tax positions		1
Reductions for prior year(s) tax positions		-
Settlements		-
Expiration of statute of limitations		-
Balance at June 30, 2013	$	250
Additions based on current year tax positions		-
Additions for prior year(s) tax positions		26
Reductions for prior year(s) tax positions		-
Settlements		-
Expiration of statute of limitations		(195	)
Settlements		-
Balance at March 31, 2014	$	81

The Company accrues penalties and interest related to unrecognized tax benefits when necessary as a component of penalties and interest expenses, respectively.  The Company had not accrued any penalties or interest expenses relating to unrecognized benefits at March 31, 2014 and June 30, 2013.

The major tax jurisdictions in which the Company files income tax returns are the United States, Singapore and Malaysia.  The statute of limitations, in general, is open for years ranging from 2008 to 2013 for tax authorities in those jurisdictions to audit or examine income tax returns.  The Company is under annual review by the tax authorities of United States, Singapore and Malaysia.  However, the Company is not currently under tax examination in any other jurisdiction.