Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

The provision for income taxes for the years ended June 30 consisted of the following (in thousands):


	2012			2011
Current:
Federal	$	873		$	—
State		416			151
Foreign		294			275

		1,583			426

Deferred:
Federal		525			225
State		(24	)		(47	)
Valuation allowance		—			(3,340	)

		501			(3,162	)

Provision (benefit) for income taxes	$	2,084		$	(2,736	)

Net Deferred Tax Assets and Deferred Tax Liabilities

Net deferred tax assets and deferred tax liabilities as of June 30 were as follows (in thousands):


	2012			2011
Deferred tax assets:
Allowance for doubtful accounts	$	45		$	24
Accrued vacation expense		147			122
Tax credit carry forward		—			80
Allowance for inventories		200			333
Stock-based compensation		193			203
Pension liability		216			228
Other, net		567			518
Deferred rent		196			287
Accumulated depreciation and amortization		563			360
Net operating loss carry forward		517			1,049

Total gross deferred tax assets	$	2,644		$	3,204
Deferred tax liabilities:
Prepaid expenses		(162	)		(160	)
Other		(312	)		(17	)

Deferred tax liabilities		(474	)		(177	)

Valuation allowance		—			—
Net deferred tax assets	$	2,170		$	3,027

Reconciliation of Income Tax Benefit Computed By Applying Statutory Federal Income Tax Rate

A reconciliation of income tax provision (benefit) computed by applying the statutory federal income tax rate of 34% to net income before income taxes for the year ended June 30 is as follows (dollars in thousands):


	2012			2011
Income taxes computed at statutory federal income tax rate	$	2,123		$	774
State income taxes, net of federal income tax expense		265			68
Expenses not deductible for tax purposes		54			47
Foreign tax rate differential		(343	)		(176	)
Return to provision – differences		(15	)		(109	)
Change in valuation allowance, net		—			(3,340	)

Income tax provision (benefit) as reported	$	2,084		$	(2,736	)

Effective tax rate		33.4	%		(120.0	)%