Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Components Of Income (Loss) Before Provision For Income Taxes

The domestic and foreign components of income (loss) before provision for income taxes are as follows:

	Year ended June 30,
	2014		2013			2012
	(Dollars in thousands)
United States	$	3,930	$	4,979		$	(2,406	)
Foreign		1,167		(362	)		170
	$	5,097	$	4,617		$	(2,236	)

Components Of The Provision For Income Taxes

The components of the provision for income taxes are as follows:

	Year ended June 30,
	2014			2013		2012
	(Dollars in thousands)
Current:
Federal	$	78		$	128	$	20
State		28			151		(11	)
Foreign		438			90		707
Total		544			369		716

Deferred:
Federal		(12,338	)		-		-
State		(1,361	)		-		-
Foreign		(253	)		-		(65	)
Total		(13,952	)		-		(65	)

Total	$	(13,408	)	$	369	$	651

Schedule Of Reconciliation Of The Income Tax Expense (Benefit) Computed Using The Federal Statutory Income Tax Rate To The Provision For Income Taxes

A reconciliation of the income tax expense (benefit) computed using the federal statutory income tax rate to our provision for income taxes is as follows:

	Year ended June 30,
	2014			2013			2012
	(Dollars in thousands)

Income (loss) before provision for income taxes	$	5,097		$	4,617		$	(2,236	)
Provision (benefit) at Federal statutory rate		1,733			1,570			(760	)
Change in valuation allowance		(15,859	)		(5,444	)		452
Permanent differences		350			22			82
Net operating loss expiration and true-up		13			4,801			700
Change in state tax rates		(21	)		-			-
Change in foreign tax rates		43			-			49
Change in uncertain tax positions		21			16			(313	)
UK refundable research and development tax credits		-			-			281
Foreign rate differential		(40	)		23			175
State and foreign tax expense		145			194			(5	)
Stock option classification change due to repricing		-			(653	)		-
Other		207			(160	)		(10	)
Provision for income taxes	$	(13,408	)	$	369		$	651

Schedule Of Deferred Tax Assets And Liabilities

As of June 30, 2014 and 2013, our deferred tax assets and liabilities were comprised of the following:

	June 30,
	2014			2013
	(Dollars in thousands)

Deferred tax assets related to:
U.S. and foreign net operating loss carryforwards	$	43,230		$	44,123
Book and tax basis differences for property and equipment		563			448
Bad debt, warranty and inventory reserves		707			804
Accrued compensation		944			898
Deferred revenue		596			1,112
U.S. credit carryforwards		549			459
Stock compensation		992			1,245
Other		1,076			1,030
Deferred tax assets		48,657			50,119
Valuation allowance		(33,851	)		(49,119	)
Total deferred tax assets		14,806			1,000

Deferred tax liabilities related to:
Acquired intangibles		117			245
Total deferred tax liability		117			245

Deferred income taxes, net	$	14,689		$	755

Schedule Of 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 (dollars in thousands):

Balance at June 30, 2012	$	154
Additions based on tax positions related to the current year		-
Additions for tax positions of prior years		-
Reductions for tax positions for prior year		-
Reductions for lapse in statute of limitations		-
Settlements		-
Balance at June 30, 2013		154
Additions based on tax positions related to the current year		-
Additions for tax positions of prior years		143
Reductions for tax positions for prior year		-
Reductions for lapse in statute of limitations		-
Settlements		-
Balance at June 30, 2014	$	297