Income Taxes (Tables)

12 Months Ended

Mar. 31, 2014

Income Before Provision for Income Taxes and Provision for Income Taxes

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

	2014			2013			2012
	(in $000’s)
Income before provision for income taxes:
United States	$	4,267		$	10,202		$	236
Foreign		4,263			6,660			2,307
Income before income taxes	$	8,530		$	16,862		$	2,543
Provision for income taxes:
Current:
Federal	$	(100	)	$	97		$	—
State		(106	)		—			—
Foreign		525			996			259
Total current		319			1,093			259
Deferred:
Federal		825			825			825
State		35			(70	)		(36	)
Foreign		—			—			—
Total deferred		860			755			789
Total income tax provision	$	1,179		$	1,848		$	1,048

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:

	2014			2013			2012
Statutory income tax rate		34.0	%		34.0	%		34.0	%
(Decrease) increase resulting from:
Change in valuation allowance		(53.7	)		(11.5	)		(109.7	)
Rate differential on foreign operations		31.1			9.7			54.9
Credits		(20.1	)		(17.0	)		(54.0	)
State taxes, net		12.9			(6.9	)		76.0
Stock based compensation		0.9			0.4			2.0
Permanent differences		0.4			0.0			(40.9	)
Expiry of state NOL carryforwards		—			2.1			78.9
Other		8.4			0.2			—
Effective tax rate		13.9	%		11.0	%		41.2	%

Components of Net Deferred Taxes

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

	March 31,
	2014			2013
	(in $000’s)
Deferred tax assets
NOL carryforwards and tax credit carryforwards	$	72,430		$	73,833
Stock-based compensation		10,519			10,324
Nondeductible reserves and accruals		6,775			5,137
Amortizable intangibles other than goodwill		3,470			4,138
Capitalized research and development		3,208			5,366
Foreign NOL carryforwards		2,705			4,777
Deferred revenue		1,767			1,567
Depreciation		561			306
Other, net		658			1,222
		102,093			106,670
Deferred tax liabilities
Indefinite lived intangibles		(6,415	)		(5,554	)
		(6,415	)		(5,554	)
Net deferred tax asset		95,678			101,116
Valuation allowance		(102,093	)		(106,670	)
Net deferred tax liability	$	(6,415	)	$	(5,554	)