Taxes on Income (Tables)

12 Months Ended

Feb. 02, 2019

Income Tax Disclosure [Abstract]

Schedule of loss from continuing operations before income taxes

Geographic sources of loss from continuing operations before income taxes are as follows:

	Year Ended
(In thousands)	February 2, 2019			February 3, 2018
United States	$	(7,399	)	$	(46,044	)
Foreign		(2,239	)		(6,787	)
Loss from continuing operations before income taxes	$	(9,638	)	$	(52,831	)

Schedule of income tax provision as shown in the income statements

The provision for income taxes as shown in the accompanying consolidated statements of operations includes the following:

	Year Ended
(In thousands)	February 2, 2019			February 3, 2018
Current:
Federal	$	—		$	(81	)
State		(11	)		(164	)
Foreign		941			1,639
		930			1,394
Deferred:
Federal		—			(150	)
State		37			13
Foreign		1,721			1,773
		1,758			1,636
	$	2,688		$	3,030

Schedule of reconciliation of the actual income tax rates to the federal statutory rate

The provision for income taxes differs from the amounts computed using the statutory United States federal income tax rate as shown in the table below.  Nondeductible transaction costs arose in the Hi-Tec Acquisition.

	Year Ended
(In thousands, except percentages)	February 2, 2019					February 3, 2018
Tax expense at U.S. statutory rate	$	(2,023	)	21.0	%	$	(17,329	)	32.8	%
State income taxes, net of federal income tax benefit		265		(2.8	)		(942	)	1.8
Change in U.S. federal statutory rate		—		—			7,350		(13.9	)
Stock-based compensation		262		(2.7	)		1,517		(2.9	)
Stock warrants		—		—			425		(0.8	)
Adjustments to unrecognized tax benefits		(380	)	3.9			(794	)	1.5
Nondeductible expenses		12		(0.1	)		18		—
Nondeductible transaction costs		21		(0.2	)		250		(0.5	)
Valuation allowance		4,616		(47.9	)		10,688		(20.3	)
Foreign Taxes		381		(4.0	)		562		(1.1	)
Exchange rate changes		—		—			1,427		(2.7	)
Other		(466	)	4.8			(142	)	0.4
	$	2,688		(28.0	)%	$	3,030		(5.7	)%

Summary of deferred income tax assets

A summary of deferred income tax assets and liabilities is as follows:

	February 2, 2019			February 3, 2018
(In thousands)	Non-Current			Non-Current
Deferred tax assets:
Deferred revenue	$	9		$	213
Amortization		3,855			5,967
Other		359			1,578
Employee compensation		242			543
Interest expense carryforward		1,277			—
Net operating loss and credit carryforwards		26,089			18,778
Valuation Allowance		(31,472	)		(27,079	)
Total deferred income tax assets		359			—
Deferred tax liabilities:
Amortization		(12,414	)		(10,466	)
Total deferred income tax liabilities		(12,414	)		(10,466	)
Net deferred income tax liabilities	$	(12,055	)	$	(10,466	)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

The Company recorded a $3.9 million reserve for uncertain tax positions in Fiscal 2017 as part of Hi-Tec acquisition.  Gross unrecognized tax benefits are reflected in the accompanying balance sheets as reductions in deferred tax assets or in other long-term liabilities if there are no net operating loss carryforwards available to offset them.  A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows:

	Year Ended
(In thousands)	February 2, 2019			February 3, 2018
Gross unrecognized tax benefits at beginning of year	$	3,846		$	3,977
Additions:
Tax positions taken in prior years		—			315
Tax positions taken in the current year		426			1,609
Reductions:
Tax positions taken in prior years		(261	)		—
Settlement with taxing authorities		—			(38	)
Lapse in statute of limitations		(595	)		(2,017	)
Gross unrecognized tax benefits at year end	$	3,416		$	3,846