Income Taxes (Tables)

12 Months Ended

Mar. 31, 2015

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)	2015			2014			2013
Loss before income taxes
United States	$	(12,697	)	$	(5,475	)	$	(9,594	)
Foreign	146			89			262
Total loss from continuing operations before income taxes	$	(12,551	)	$	(5,386	)	$	(9,332	)

Schedule of income tax (benefit) expense

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



(In thousands)	2015			2014			2013
Income tax (benefit) expense
Current:
Federal	$	25		$	(2,206	)	$	(3,002	)
State and local	(798		)	(161		)	28
Foreign	90			55			100
Deferred:
Federal	(206		)	(161		)	—
State and local	(141		)	(20		)	(252		)
Foreign	(24		)	2			8
Total income tax benefit	$	(1,054	)	$	(2,491	)	$	(3,118	)

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)	2015			2014			2013
Income tax benefit at the statutory rate of 35%	$	(4,405	)	$	(2,103	)	$	(3,266	)
(Benefit) provision for state taxes	(172		)	(106		)	(14		)
Impact of foreign operations	11			14			(48		)
Indefinite life assets	—			47			(251		)
Officer life insurance	(20		)	(28		)	(75		)
Change in valuation allowance	4,241			(76		)	627
Change in liability for unrecognized tax benefits	(857		)	(561		)	(230		)
Meals and entertainment	102			113			114
Other	46			209			25
Total income tax benefit	$	(1,054	)	$	(2,491	)	$	(3,118	)

Schedule of deferred tax assets and liabilities

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



(In thousands)	2015			2014
Deferred tax assets:
Accrued liabilities	$	3,961		$	3,884
Allowance for doubtful accounts	297			408
Inventory valuation reserve	24			14
Restructuring reserve	—			54
Federal losses and credit carryforwards	58,992			55,231
Foreign net operating losses	326			330
State losses and credit carryforwards	10,162			10,706
Deferred compensation	—			70
Deferred revenue	146			61
Goodwill and other intangible assets	3,129			3,611
Other	340			514
	77,377			74,883
Less: valuation allowance	(76,420		)	(73,014		)
Total	957			1,869
Deferred tax liabilities:
Property and equipment & software amortization	(690		)	(1,560		)
Indefinite-lived goodwill & intangible assets	(3,324		)	(3,622		)
Other	34			(81		)
Total	(3,980		)	(5,263		)
Total deferred tax liabilities	$	(3,023	)	$	(3,394	)

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)	2015			2014			2013
Balance at April 1	$	2,568		$	4,248		$	2,873
Additions:
Relating to positions taken during current year	—			—			1,624
Relating to positions taken during prior year	—			—			—
Reductions:
Relating to tax settlements	—			—			—
Relating to positions taken during prior year	(204		)	(1,238		)	—
Relating to lapse in statute	(609		)	(442		)	(249		)
Balance at March 31	$	1,755		$	2,568		$	4,248