Note 4 - Income Taxes (Tables)

12 Months Ended

Jan. 31, 2021

Notes Tables

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	Years Ended January 31,
	2021		2020			2019
	(in thousands)
Domestic net income before income taxes	$	7,725	$	2,963		$	6,562
Foreign net income  (loss) before income taxes		3,096		(6,567	)		5,355
Income (loss) before income taxes	$	10,821	$	(3,604	)	$	11,917

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Years Ended January 31,
	2021			2020			2019
	(in thousands)
Current:
U.S. federal	$	997		$	471		$	(829	)
State		37			130			(13	)
Foreign		2,376			2,149			3,784
Subtotal		3,410			2,750			2,942
Deferred:
U.S. federal		3			25			79
State		6			(107	)		(30	)
Foreign		(3,663	)		9,677			(1,502	)
Subtotal		(3,654	)		9,595			(1,453	)
Total	$	(244	)	$	12,345		$	1,489

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Years Ended January 31,
	2021			2020			2019
	(in thousands)
Computed expected tax expense (benefit)	$	2,272		$	(757	)	$	2,503
State income taxes, net of federal income tax expense		272			(581	)		96
Incremental tax expense from foreign operations		1,708			1,256			715
Equity compensation		(958	)		(4,198	)		(2,916	)
Foreign withholding taxes		1,619			1,103			1,089
Net change in valuation allowance		(3,438	)		16,179			3,224
Net change in uncertain tax positions		125			3			(71	)
Non-deductible expenses		(41	)		218			1,149
Benefit of tax credits		(2,569	)		(1,719	)		(3,483	)
Subpart F income		611			27			101
U.S. Tax Reform (the Tax Act)		—			—			(1,312	)
Rate change impact		123			867			124
Other		32			(53	)		270
Total income tax (benefit) expense	$	(244	)	$	12,345		$	1,489

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	January 31,
	2021			2020
	(in thousands)
Deferred tax assets:
Allowance for doubtful accounts and sales adjustments	$	700		$	600
Accrued vacation		1,305			1,499
Tax credits		24,312			22,077
Deferred revenue		2,670			3,136
Lease liabilities		5,046			4,142
Net operating loss carryforwards		13,794			15,475
Accrued expenses - other		2,543			2,038
Other comprehensive income		3,624			1,603
Section 263(a) interest capitalization		182			190
Intellectual property		4,583			6,250
Equity compensation		4,219			3,579
Carryforward of Irish amortization		5,728			3,614
Other		718			1,767
Total deferred tax assets		69,424			65,970
Less valuation allowance		(48,571	)		(50,972	)
Less netting of unrecognized tax benefits against deferred tax assets		(968	)		(973	)
Deferred tax assets, net of valuation allowance	$	19,885		$	14,025
Deferred tax liabilities:
Depreciation and amortization		(612	)		(851	)
Acquisition accounting basis differences		(2,514	)		—
Costs to obtain and fulfill contracts		(3,081	)		(3,054	)
ASC 842 lease right of use assets		(4,756	)		(3,931	)
Other liabilities		(396	)		(355	)
Total deferred tax liabilities		(11,359	)		(8,191	)
Total net deferred tax assets	$	8,526		$	5,834

Summary of Valuation Allowance [Table Text Block]

Jurisdiction	January 31, 2021		January 31, 2020
U.S. federal and state	$	30.3	$	30.3
Irish principal		12.0		11.6
Brazil		6.1		5.7
Germany		-		2.6
Hong Kong		-		0.6
South Africa		0.2		0.2
Total valuation allowance	$	48.6	$	51.0

Summary of Tax Credit Carryforwards [Table Text Block]

Credit Carryforwards	January 31, 2021
Foreign tax credit	$	6,338
Federal R&D credit		8,336
State R&D credit		9,380
AMT credit and New hire retention		258
Total credit	$	24,312

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	Years Ended January 31,
	2021			2020
	(in thousands)
Unrecognized tax benefits at beginning of the year	$	1,171		$	1,168
Decreases as a result of tax positions taken in a prior period		—			—
Increases as a result of tax positions taken in the prior period		130			143
Reduction as a result of a lapse of the statute of limitations		(5	)		(37	)
Decreases as a result of settlements with taxing authorities		—			(103	)
Unrecognized tax benefit at end of year	$	1,296		$	1,171

List of Open Tax Year by Jurisdiction [Table Text Block]

Jurisdiction	Years Open for Audit
U.S. federal	Fiscal year 2018 and beyond
California	Fiscal year 2017 and beyond
Michigan	Fiscal year 2017 and beyond
New Jersey	Fiscal year 2017 and beyond
Australia	Fiscal year 2017 and beyond
France	Fiscal year 2018 and beyond
India	Fiscal years 2010, 2013 and 2019
Ireland	Fiscal year 2017 and beyond
United Kingdom	Fiscal year 2020 and beyond
China	Calendar year 2016 and beyond
Mexico	Calendar year 2016 and beyond