Income Taxes (Tables)

12 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Components of income tax expense (benefit)

The income tax expense for the years ended June 30, 2016, 2015, and 2014 consists of the following (in thousands):

	Year ended June 30,
	2016			2015			2014
Income / (Loss) Before Income Taxes:
Domestic	$	7,518		$	8,249		$	13,894
International	1,166			2,404			2,761
	$	8,684		$	10,653		$	16,655
Current Taxes:
Federal	$	4,180		$	2,600		$	2,010
State	561			446			72
Foreign	478			856			1,018
Total Current Income Tax Provision	$	5,219		$	3,902		$	3,100
Deferred Taxes:
Federal	(2,326		)	97			2,299
State	(105		)	4			83
Foreign	(123		)	(337		)	(210		)
Total Deferred Income Tax Provision	$	(2,554	)	$	(236	)	$	2,172
Net Income Tax Provision	$	2,665		$	3,666		$	5,272

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, 2016, 2015, and 2014 differs from the U.S. Federal statutory income tax rate due to the following:

	Year ended June 30,
	2016		2015		2014
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	2.8	%	2.0	%	1.9	%
Foreign tax rate difference	(1.3	)%	0.0	%	0.0	%
Tax return to provision true-up	0.7	%	1.2	%	(3.0	)%
Permanent differences:
— stock based compensation	0.9	%	1.2	%	1.3	%
— domestic production activities deduction	(4.4	)%	(1.6	)%	(1.8	)%
— credit for increasing research activities	(0.7	)%	(3.8	)%	(1.5	)%
— other	(2.9	)%	0.4	%	(0.5	)%
Change in valuation allowance	0.6	%	0.0	%	0.1	%
Net income tax provision	30.7	%	34.4	%	31.5	%

The components of the deferred tax assets and liabilities

The components of the deferred tax assets and liabilities as of June 30, 2016 and 2015 are as follows (in thousands):

	June 30,
	2016			2015
Deferred tax assets:
Federal, state, and foreign net operating loss carryovers	$	651		$	656
Stock option compensation	1,696			1,353
Accrued vacation, allowance for returns, bonuses & other	2,965			1,395
Gross deferred tax asset	$	5,312		$	3,404
Deferred tax liabilities:
Patents and trademarks	(417		)	(468		)
Change in tax accounting methods	—			(98		)
Property & equipment	(722		)	(1,268		)
Gross deferred tax liabilities	(1,139		)	(1,834		)
Less: valuation allowance	(267		)	(218		)
Deferred tax assets, net	$	3,906		$	1,352