Income Taxes

6 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 9 — Income Taxes

For the three and six months ended September 30, 2011, the Company recorded income tax benefits of $3.4 million and $3.7 million, respectively. The Company currently estimates its annual effective income tax rate to be a benefit of approximately 54.8% for fiscal year 2012, compared to the actual zero effective income tax rate in fiscal year 2011. The estimated annual effective income tax benefit rate for fiscal year 2012 is primarily a result of expected federal and state research and development tax credits in excess of taxes at the statutory rate on projected pre-tax income for the year. The benefit rate reflects the December 31, 2011 expiration of the federal research and development tax credit. If the federal research and development tax credit is reinstated, the Company may have a higher annual effective tax benefit rate for fiscal year 2012, and the amount of any such increase in the tax benefit rate will depend on the effective date of any such reinstatement, the terms of the reinstatement, as well as the amount of eligible research and development expenses in the reinstated period.

For the three and six months ended September 30, 2011, the Company’s gross unrecognized tax benefits increased by $2.2 million and $3.1 million, respectively. In the next twelve months, it is reasonably possible that the amount of unrecognized tax benefits will decrease by up to approximately $3.1 million as a result of the expiration of the statute of limitations or settlements with tax authorities for previously filed tax returns.