Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

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


	2013			2012
Current:
Federal	$	(24	)	$	873
State		(4	)		416
Foreign		271			294

		243			1,583

Deferred:
Federal		218			525
State		62			(24	)

		280			501

Provision (benefit) for income taxes	$	523		$	2,084

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):


	2013			2012
Deferred tax assets:
Allowance for doubtful accounts	$	49		$	45
Accrued vacation expense		108			147
Tax credit carry forward		4			0
Allowance for inventories		136			200
Stock-based compensation		126			193
Pension liability		279			216
Other, net		150			567
Deferred rent		89			196
Accumulated depreciation and amortization		846			563
Net operating loss carry forward		525			517

Total gross deferred tax assets	$	2,312		$	2,644
Deferred tax liabilities:
Prepaid expenses		(151	)		(162	)
Other		(25	)		(312	)

Deferred tax liabilities		(176	)		(474	)

Net deferred tax assets	$	2,136		$	2,170

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

A reconciliation of income tax provision 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):


	2013			2012
Income taxes computed at statutory federal income tax rate	$	711		$	2,123
State income taxes, net of federal income tax expense		41			265
Expenses not deductible for tax purposes		39			54
Foreign tax rate differential		(264	)		(343	)
Return to provision – differences		(4	)		(15	)

Income tax provision as reported	$	523		$	2,084

Effective tax rate		25.0	%		33.4	%