Income Taxes (Tables)

12 Months Ended

Mar. 31, 2015

Schedule of loss from operations before income taxes

Income (loss) before income taxes from continuing operations consisted of the following (dollars in thousands):



	Year Ended March 31,
	2015			2014			2013
United States	$	(5,940	)	$	(9,641	)	$	(25,827	)
Non-United States	152			306			(322		)
	$	(5,788	)	$	(9,335	)	$	(26,149	)

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes from continuing operations was as follows (dollars in thousands):



	Year Ended March 31,
	2015			2014			2013
Current tax provision (benefit):
Federal	$	(76	)	$	(200	)	$	—
State	22			(291		)	(10		)
Foreign	338			376			208
	284			(115		)	198
Deferred tax provision (benefit):
Federal	(545		)	(1,437		)	(825		)
State	(178		)	(515		)	(355		)
Foreign	15			(116		)	2
	(708		)	(2,068		)	(1,178		)
	$	(424	)	$	(2,183	)	$	(980	)

Effective income tax rate reconciliation

The reported provision (benefit) for income taxes from continuing operations differs from the amount computed by applying the statutory federal income tax rate of 34% to income (loss) before income taxes as follows (dollars in thousands):



	Year Ended March 31,
	2015			2014			2013
Tax benefit computed at statutory rates	$	(1,966	)	$	(3,174	)	$	(9,046	)
State taxes, net of federal benefit	(334		)	(256		)	(2,030		)
Federal and state tax credits	(1,017		)	(2,854		)	(454		)
Non-deductible expenses	312			1,192			133
Tax exempt income	—			(31		)	(56		)
Unrecognized tax benefits	64			(193		)	83
Stock-based compensation	77			(44		)	(2		)
Meals and entertainment	94			79			71
Foreign tax rate differences	(53		)	(66		)	(77		)
Change in valuation allowance	2,412			3,062			10,104
Adjustment to deferred income tax rate	11			63			58
Other	(24		)	39			236
	$	(424	)	$	(2,183	)	$	(980	)

Schedule of deferred tax assets and liabilities

Deferred tax assets (liabilities) from continuing operations consisted of the following components (dollars in thousands):



	March 31,
	2015			2014
Current deferred taxes:
Accrued expense	$	180		$	230
Prepaid expenses	(102		)	(91		)
Other current	222			105
Total current deferred taxes	300			244
Valuation allowance - current	(240		)	(200		)
Net current deferred taxes	60			44
Non-current deferred taxes:
Depreciation and amortization	(2,715		)	(1,456		)
Deferred rent	954			978
Accelerated research and experimentation expenditures	(6,819		)	(5,400		)
Stock-based compensation	8,804			8,105
Net operating and capital loss carryforwards	12,034			10,209
Federal and state tax credits	4,588			3,705
Other	56			98
Total non-current deferred taxes	16,902			16,239
Valuation allowance	(19,130		)	(16,998		)
Net non-current deferred taxes	(2,228		)	(759		)
Net deferred taxes	$	(2,168	)	$	(715	)

Schedule of unrecognized tax benefits roll-forward

Following is a roll-forward of our unrecognized tax benefits (dollars in thousands):



Balance at March 31, 2012	$	1,003
Additions for tax positions taken in Fiscal 2013	145
Additions for tax positions taken in prior fiscal years	7
Decreases for lapses in statutes of limitation	(75		)
Balance at March 31, 2013	1,080
Additions for tax positions taken in Fiscal 2014	131
Decrease for tax positions taken in prior fiscal years (payment of tax)	(12		)
Decreases for lapses in statutes of limitation	(229		)
Decreases for settlements with taxing authorities	(164		)
Balance at March 31, 2014	806
Additions for tax positions taken in Fiscal 2015	279
Decreases for lapses in statutes of limitation	(111		)
Balance at March 31, 2015	$	974