Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Components of Income Before Income Taxes and Income Tax Expense (Benefit)

The components of income before income taxes and income tax expense (benefit) were as follows:

	Year Ended June 30,
	2012			2011		2010
Income from continuing operations before income taxes:
United States	$	31,277		$	26,072	$	18,714
Foreign		494			495		(22	)
	$	31,771		$	26,567	$	18,692
Income tax expense (benefit) from continuing operations:
Federal:
Current	$	10,591		$	4,974	$	(356	)
Deferred		(2,582	)		1,992		(8,286	)
	$	8,009		$	6,966	$	(8,642	)
State:
Current	$	1,401		$	855	$	98
Deferred		(335	)		48		(711	)
	$	1,066		$	903	$	(613	)
Foreign:
Current	$	77		$	161	$	(122	)
Deferred		—			30		—
	$	77		$	191	$	(122	)
	$	9,152		$	8,060	$	(9,377	)

Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from Continuing Operations

The following is the reconciliation between the statutory federal income tax rate and the Company’s effective income tax rate from continuing operations:

	Year Ended June 30,
	2012			2011			2010
Income taxes at federal statutory rates		35.0	%		35.0	%		35.0	%
State income tax, net of federal tax benefit		2.6			2.2			0.5
Research and development credits		(4.2	)		(6.9	)		(5.9	)
Domestic manufacturing deduction		(3.0	)		(2.6	)		—
Deemed repatriation of foreign earnings		—			—			(1.4	)
Equity compensation		1.0			1.6			1.8
IRS audit adjustments		—			—			(1.5	)
Goodwill impairment		—			—			0.4
Change in the fair value of the liability related to the LNX earn-out		(5.4	)		—			—
Acquisition costs		1.3			0.6			—
Valuation allowance		2.2			1.7			(79.8	)
Other		(0.7	)		(1.3	)		0.7
		28.8	%		30.3	%		(50.2	)%

Components of Net Deferred Tax Assets (Liabilities)

The components of the Company’s net deferred tax assets (liabilities) were as follows:

	June 30,
	2012			2011
Deferred tax assets:
Inventory valuation and receivable allowances	$	4,788		$	4,189
Accrued compensation		1,367			1,424
Equity compensation		6,036			5,565
Federal and state research and development tax credit carryforwards		8,569			8,716
Net operating loss		—			900
Gain on sale-leaseback		2,116			2,556
Other accruals		919			328
Repatriation of foreign earnings		—			76
Other temporary differences		1,333			594
		25,128			24,348
Valuation allowance		(8,682	)		(7,973	)
Total deferred tax assets		16,446			16,375
Deferred tax liabilities:
Deferred revenue		(3,488	)		(4,776	)
Property and equipment depreciation		(3,995	)		(2,452	)
Acquired intangible assets		(8,507	)		(5,346	)
Total deferred tax liabilities		(15,990	)		(12,574	)
Net deferred tax (liabilities) assets	$	456		$	3,801

Summary of Reserves for Unrecognized Income Tax Benefits

The changes in the Company’s reserves for unrecognized income tax benefits are summarized as follows:

	Year Ended June 30,
	2012			2011
Unrecognized tax benefits, beginning of period	$	1,831		$	1,856
Increases for previously recognized positions		716			27
Settlements of previously recognized positions		—			(59	)
Decreases for previously recognized positions		(84	)		(229	)
Increases for currently recognized positions		179			236
Unrecognized tax benefits, end of period	$	2,642		$	1,831