INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2015

The components of our income tax provision are summarized as follows (in thousands):

	Year Ended March 31,
	2015			2014			2013
Continuing operations:
Current:
Federal	$	12,065		$	7,947		$	16,635
State		1,657			939			1,647
Foreign		64			892			174
Total current income tax provision		13,786			9,778			18,456
Deferred:
Federal		(1,363	)		(631	)		(1,219	)
State		(158	)		(154	)		(88	)
Foreign		(26	)		-			-
Total deferred income tax provision (benefit)		(1,547	)		(785	)		(1,307	)
Total income tax provision - continuing operations	$	12,239		$	8,993		$	17,149

Discontinued operations and gain on sale of discontinued operations:
Current:
Federal	$	5,923		$	(1,147	)	$	(2,060	)
State		458			(88	)		(159	)
Total current income tax provision (benefit)		6,381			(1,235	)		(2,219	)
Deferred:
Federal		(2,258	)		-			-
State		(175	)		-			-
Total deferred income tax (benefit)		(2,433	)		-			-
Total income tax provision (benefit) - discontinued operations and gain on sale of discontinued operations	$	3,948		$	(1,235	)	$	(2,219	)

Component of Income before Income Tax Provision

The components of our income before income tax provision are summarized as follows (in thousands):

	Year Ended March 31,
	2015			2014			2013
Continuing operations:
United States	$	33,489		$	22,598		$	47,630
Foreign		(447	)		2,624			646
Total - continuing operations	$	33,042		$	25,222		$	48,276
Discontinued operations:
United States	$	10,475		$	(3,279	)	$	(5,887	)

Effective Income Tax Rate Reconciliation

The income tax provision from continuing operations differs from the amount computed by applying the federal statutory income tax rate (35 percent) to income from continuing operations before income tax provision as follows (in thousands):

	Year Ended March 31,
	2015			2014			2013
Continuing operations:
Income taxes at federal income tax rate	$	11,565		$	8,828		$	16,896
State income taxes, net of federal benefits		787			475			1,282
Non-deductible compensation		880			260			56
Research and development tax credits		(383	)		(210	)		(541	)
Tax-exempt interest income		(6	)		(20	)		(32	)
Qualified production activities income benefit		(866	)		(490	)		(525	)
Other		262			150			13
Total income tax provision from continuing operations	$	12,239		$	8,993		$	17,149

Breakdown Between Current and Non-Current Net Deferred Tax Assets (Liabilities)

The following table presents the breakdown between current and non-current net deferred tax assets (liabilities) (in thousands):

	March 31,
	2015			2014
Deferred tax assets, current	$	6,575		$	4,464
Deferred tax assets, non-current		3,413			1,557
Deferred tax liabilities, non-current		(310	)		-
Total net deferred tax assets	$	9,678		$	6,021

Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets (liabilities) are as follows (in thousands):

	March 31,
	2015			2014
Deferred tax assets:
Research and development tax credit carryforwards	$	717		$	646
Capitalized research and development		106			136
Inventory reserves		724			622
Deferred revenue from extended maintenance agreements		1,687			1,940
Warranty reserves		1,190			704
Accrued payroll and other accrued expenses		2,904			1,269
Share-based compensation		2,932			2,129
Alternative minimum tax credits		24			24
Tax on deferred intercompany profit		1,161			742
Other		494			792
Total deferred tax assets		11,939			9,004
Deferred tax liabilities:
Depreciation		(1,850	)		(2,876	)
Other		(411	)		(107	)
Total deferred tax liabilities		(2,261	)		(2,983	)
Net deferred tax assets	$	9,678		$	6,021