Note 6 - Income Taxes

3 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Text Block]

The following presents components of our income tax (benefit) expense (in thousands):

	Three Months Ended September 30
	2012			2011
Federal and state	$	5		$	65
Deferred federal and state		(491	)		(349	)
Foreign		2			76
Uncertain tax positions		(161	)		(48	)
Deferred tax valuation allowance		516			355
	$	(129	)	$	99

The federal statutory income tax rate reconciles to our effective income tax rate as follows:

	Three Months Ended September 30
	2012			2011
Statutory rate		(34.0	)%		(34.0	)%
Deferred tax valuation allowance		36.6			36.4
State and foreign taxes net of federal tax benefit		(3.0	)		12.6
Uncertain tax positions		(11.4	)		(4.9	)
Repatriation of foreign earnings		0.7			-
Other, net		2.0			-
		(9.1	)%		10.1	%

At September 30, 2012 we had federal income tax net operating loss carryovers of approximately $52.7 million expiring in 2029 through 2031.  Our deferred tax valuation allowance was approximately $24.7 million.

During the first quarter of fiscal 2013, $161,000 of the liability previously recorded for uncertain state tax positions was released from the reserve as it no longer failed to meet the more-likely-than-not threshold.