Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

The income tax expense for the years ended June 30, 2014, 2013, and 2012 consists of the following (in thousands):

	2014			2013			2012
Income / (Loss) Before Income Taxes:
Domestic	$	13,894		$	11,250		$	14,556
International	2,761			(97		)	116
	$	16,655		$	11,153		$	14,672
Current Taxes:
Federal	$	2,010		$	4,087		$	3,758
State	72			383			1,121
Foreign	1,018			(33		)	47
Total Current Income Tax Provision	$	3,100		$	4,437		$	4,926
Deferred Taxes:
Federal	2,299			(706		)	(2,110		)
State	83			(77		)	(601		)
Foreign	(210		)	(109		)	(12		)
Total Deferred Income Tax Provision	$	2,172		$	(892	)	$	(2,723	)
Net Income Tax Provision	$	5,272		$	3,545		$	2,203

The effective income tax rate differs from the U.S. Federal statutory income tax rate

The effective income tax rate for the years ended June 30, 2014, 2013, and 2012 differs from the U.S. Federal statutory income tax rate due to the following:

	2014		2013		2012
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.9	%	1.8	%	5.5	%
Tax return to provision true-up	(3.0	)%	(2.5	)%	(1.0	)%
Permanent differences:
— change in derivative liability	0.0	%	0.0	%	16.1	%
— stock based compensation	1.3	%	0.8	%	0.3	%
— domestic production activities deduction	(1.8	)%	(2.7	)%	0.0	%
— credit for increasing research activities	(1.5	)%	(0.7	)%	0.0	%
— other	(0.5	)%	0.0	%	(0.4	)%
Change in valuation allowance	0.1	%	0.0	%	(39.5	)%
Net income tax provision	31.5	%	31.7	%	16.0	%

The components of the deferred tax assets and liabilities

The components of the deferred tax assets and liabilities as of June 30, 2014 and 2013 are as follows (in thousands):

	2014			2013
Deferred tax assets:
Federal, state, and foreign net operating loss carryovers	$	1,016		$	1,768
Stock option compensation	1,353			1,212
Accrued vacation, allowance for returns, bonuses & other	572			2,493
Gross deferred tax asset	$	2,941		$	5,473
Deferred tax liabilities:
Patents and trademarks	(500		)	(536		)
Change in tax accounting methods	(198		)	(297		)
Property & equipment	(583		)	(824		)
Gross deferred tax liabilities	(1,281		)	(1,657		)
Less: valuation allowance	(217		)	(201		)
Deferred tax assets, net	$	1,443		$	3,615