Note 8 - Income Taxes

6 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Text Block]

Note 8 - Income Taxes

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

	Three Months Ended December 31						Six Months Ended December 31
	2012			2011			2012			2011
Federal and state	$	6		$	8		$	11		$	73
Deferred federal and state		(1,569	)		1,073			(2,060	)		724
Foreign		(166	)		26			(164	)		102
Uncertain tax positions		63			64			(98	)		16
Deferred tax valuation allowance		1,726			(1,068	)		2,242			(713	)
	$	60		$	103		$	(69	)	$	202

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

	Three Months Ended December 31				Six Months Ended December 31
	2012		2011		2012		2011
Statutory rate	(34.0	)%	34.0	%	(34.0	)%	34.0	%
Deferred tax valuation allowance	31.0		(37.8	)	32.1		(38.4	)
State and foreign taxes net of federal tax benefit	1.9		1.8		1.0		9.4
Uncertain tax positions	1.1		2.3		(1.4	)	0.9
Repatriation of foreign earnings	(0.2	)	3.3		-		5.0
Other, net	1.3		-		1.3		-
	1.1	%	3.6	%	(1.0	)%	10.9	%

At December 31, 2012 we had federal income tax net operating loss carryovers of approximately $46.1 million expiring in 2029 through 2031.  Our deferred tax valuation allowance was approximately $26.3 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.