Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Income Loss Before Provision for Income Taxes and Provision for Income Taxes

Income (loss) before provision for income taxes and the provision for income taxes is as follows for the years ended March 31:

	2013			2012			2011
	(in $000’s)
Income (loss) before provision for income taxes:
United States	$	10,202		$	236		$	(6,522	)
Foreign		6,660			2,307			(4,341	)
Income (loss) before income taxes	$	16,862		$	2,543		$	(10,863	)
Provision for income taxes:
Current:
Federal	$	97		$	—		$	(78	)
State		—			—			81
Foreign		996			259			—
Total current		1,093			259			3
Deferred:
Federal		825			825			825
State		(70	)		(36	)		64
Foreign		—			—			—
Total deferred		755			789			889
Total income tax provision	$	1,848		$	1,048		$	892

Differences Between Federal Statutory Income Tax Rate and Effective Tax Rates

Differences between the federal statutory income tax rate and the effective tax rates are as follows for the years ended March 31:

	2013			2012			2011
Statutory income tax rate		34.0	%		34.0	%		34.0	%
(Decrease) increase resulting from:
Credits		(15.3	)		(54.0	)		8.4
Rate differential on foreign operations		9.7			54.9			(0.1	)
Permanent differences		(8.1	)		(46.2	)		0.3
State taxes, net		(7.7	)		62.2			(14.1	)
Change in valuation allowance		(2.0	)		(96.0	)		(33.8	)
Stock based compensation		0.4			2.0			(0.3	)
Expiry of state NOL carryforwards		—			78.9			(2.6	)
Effective tax rate		11.0	%		35.8	%		(8.2	)%

Components of Net Deferred Taxes

The components of the Company’s net deferred taxes were as follows:

	March 31,
	2013			2012
	(in $000’s)
Deferred tax assets
NOL carryforwards and tax credit carryforwards	$	88,304		$	84,831
Stock-based compensation		6,825			7,500
Capitalized research and development		5,366			8,040
Foreign NOL carryforwards		4,777			5,405
Nondeductible reserves and accruals		4,811			4,579
Amortizable intangibles other than goodwill		4,138			4,600
Deferred revenue		1,567			1,132
Depreciation		388			580
Change in unrealized losses on marketable securities		285			285
Other, net		1,488			1,327
		117,949			118,279
Deferred tax liabilities
Indefinite lived intangibles		(5,554	)		(4,799	)
		(5,554	)		(4,799	)
Net deferred tax asset		112,395			113,480
Valuation allowance		(117,949	)		(118,279	)
Net deferred tax liability	$	(5,554	)	$	(4,799	)