Income Taxes (Tables)

12 Months Ended

Jan. 31, 2015

Components of Income from Continuing Operations before Income Taxes

The components of income from continuing operations before income taxes are as follows:


	Years Ended January 31,
	2015		2014
(In thousands)
Domestic	$	5,401	$	537
Foreign		1,531		875

	$	6,932	$	1,412

Components of Provision for Income Taxes from Continuing Operations

The components of the provision for income taxes from continuing operations are as follows:


	Years Ended January 31,
	2015			2014
(In thousands)
Current:
Federal	$	1,666		$	930
State		466			179
Foreign		535			297

		2,667			1,406


Deferred:
Federal		(290	)		(1,044	)
State		(107	)		(174	)
Foreign		—			(13	)

		(397	)		(1,231	)

	$	2,270		$	175

Components of Difference Between Provision for Income Taxes from Continuing Operations and Amount Computed by Applying Statutory Federal Income Tax Rate

The provision for income taxes for continuing operations differs from the amount computed by applying the statutory federal income tax rate of 34% in fiscal 2015 and 2014 to income before income taxes due to the following:


	Years Ended January 31
	2015			2014
(In thousands)
Income Tax Provision at Statutory Rate	$	2,357		$	480
State Taxes, Net of Federal Tax Effect		233			(47	)
Change in Reserves Related to ASC 740 Liability		23			(59	)
Meals and Entertainment		41			38
Domestic Production Deduction		(164	)		(30	)
Share-Based Compensation		(25	)		36
Tax-exempt Income		(24	)		(22	)
R&D Credits		(135	)		(114	)
Foreign Rate Differential		(56	)		(26	)
Other Permanent Differences and Miscellaneous, Net		20			(81	)

	$	2,270		$	175

Tax Effects of Temporary Differences that gave Rise to Significant Portions of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities are as follows:


	January 31
	2015			2014
(In thousands)
Deferred Tax Assets:
Inventory	$	1,666		$	1,792
Share-Based Compensation		572			535
State R&D Credits		371			258
Compensation Accrual		417			493
ASC 740 Liability Federal Benefit		304			290
Deferred Service Contract Revenue		235			181
Warranty Reserve		140			137
Reserve for Doubtful Accounts		116			127
Foreign Tax Credit		356			213
Other		298			119

		4,475			4,145
Deferred Tax Liabilities:
Accumulated Tax Depreciation in Excess of Book Depreciation		766			830
Deferred Gain on Asset Held for Sale		785			897
Currency Translation Adjustment		36			173
Other		87			78

		1,674			1,978

Subtotal		2,801			2,167
Valuation Allowance		(255	)		(258	)

Net Deferred Tax Assets	$	2,546		$	1,909

Changes in Balance of Unrecognized Tax Benefits, Excluding Interest and Penalties

A reconciliation of unrecognized tax benefits, excluding interest and penalties follows:


	2015			2014
(In thousands)
Balance at February 1	$	715		$	941
Increases in prior period tax positions		—			31
Increases in current period tax positions		87			42
Reductions related to lapse of statute of limitations		(95	)		(299	)

Balance at January 31	$	707		$	715