Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Schedule of income from continuing operations before income taxes

For the year ended March 31, income from continuing operations before income taxes consisted of the following:



(In thousands)	2013			2012			2011
Loss before income taxes
United States	$	(2,089	)	$	(42,946	)	$	(21,664	)
Foreign	507			700			1,109
Total loss from continuing operations before income taxes	$	(1,582	)	$	(42,246	)	$	(20,555	)

Schedule of income tax (benefit) expense

For the year ended March 31, income tax (benefit) expense consisted of the following:



(In thousands)	2013			2012			2011
Income tax (benefit) expense
Current:
Federal	$	(230	)	$	(8,133	)	$	(2,022	)
State and local	28			31			(250		)
Foreign	94			33			243
Deferred:
Federal	61			61			3,874
State and local	(263		)	10			575
Foreign	26			(9		)	—
Total income tax (benefit) expense	$	(284	)	$	(8,007	)	$	2,420

Schedule of effective income tax rate reconciliation

The following table presents the principal components of the difference between the effective tax rate for continuing operations to the U.S. federal statutory income tax rate for the years ended March 31:



(In thousands)	2013			2012			2011
Income tax benefit at the statutory rate of 35%	$	(428	)	$	(14,786	)	$	(7,194	)
Provision (benefit) for state taxes	(14		)	73			18
Impact of foreign operations	31			279			200
Nontaxable proceeds	—			—			(723		)
Indefinite life assets	(203		)	72			72
Officer life insurance	(75		)	104			(117		)
Change in valuation allowance	500			8,345			9,431
Change in liability for unrecognized tax benefits	(230		)	(1,536		)	(311		)
Meals and entertainment	154			177			628
Other	(19		)	(735		)	416
(Benefit) expense for income taxes	$	(284	)	$	(8,007	)	$	2,420

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities as of March 31, are as follows:



(In thousands)	2013			2012
Deferred tax assets:
Accrued liabilities	$	6,824		$	4,433
Allowance for doubtful accounts	273			180
Inventory valuation reserve	330			437
Restructuring reserve	206			1,228
Federal losses and credit carryforwards	59,289			54,047
Foreign net operating losses	331			332
State losses and credit carryforwards	9,947			12,149
Deferred compensation	73			2,908
Deferred revenue	—			19
Goodwill and other intangible assets	4,463			6,090
Other	1,036			130
	82,772			81,953
Less: valuation allowance	(79,165		)	(78,682		)
Total	3,607			3,271
Deferred tax liabilities:
Property and equipment & software amortization	3,627			3,261
Indefinite-lived goodwill & intangible assets	3,844			4,043
Total	7,471			7,304
Total deferred tax liabilities	$	(3,864	)	$	(4,033	)

Schedule of unrecognized tax benefits rollforward

We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31:



(In thousands)	2013			2012			2011
Balance at April 1	$	2,873		$	4,123		$	4,456
Additions:
Relating to positions taken during current year	1,624			1			879
Relating to positions taken during prior year	—			47			260
Reductions:
Relating to tax settlements	—			(293		)	(678		)
Relating to positions taken during prior year	—			(47		)	(164		)
Relating to lapse in statute	(249		)	(958		)	(630		)
Balance at March 31	$	4,248		$	2,873		$	4,123