5. INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2016

Income Taxes

Loss before income taxes and income tax expense

	Year Ended March 31,
	2016		2015		2014
	(In thousands)
Loss before income taxes:
U.S.	$	(3,426)	$	(6,910)	$	(6,388)
Foreign		615		1,257		912
	$	(2,811)	$	(5,653)	$	(5,476)
Current income tax expense (benefit):
U.S. federal	$	(354)	$	(619)	$	(1,782)
Foreign		15		(2)		113
State		(289)		(54)		(82)
		(628)		(675)		(1,751)
Deferred income tax expense (benefit):
U.S. federal		(3)		-		1,892
Foreign		(10)		-		-
State		-		-		572
		(13)		-		2,464
Provision (benefit) for income tax	$	(641)	$	(675)	$	713

Income tax reconciliation

	Year Ended March 31,
	2016		2015		2014
	(In thousands)
U.S. Federal taxes at statutory rate	$	(956)	$	(1,922)	$	(1,862)
State taxes, net of federal benefit		(204)		(39)		490
Stock-based compensation		470		447		392
Tax credits		(539)		(472)		(338)
Foreign tax rate differential		(368)		(916)		(650)
Tax exempt interest		(9)		(20)		(29)
Other		6		(35)		(72)
		(1,600)		(2,957)		(2,069)
Valuation allowance		959		2,282		2,782
	$	(641)	$	(675)	$	713

Deferred tax assets and deferred tax liabilities

	March 31,
	2016		2015
	(In thousands)
Deferred tax assets:
Deferred revenue	$	231	$	110
Tax credits		2,706		1,766
Net operating losses		1,356		1,165
Stock-based compensation		1,550		1,387
Property and equipment		297		193
Other reserves and accruals		1,175		1,407
Total deferred tax assets	$	7,315	$	6,028
Deferred tax liabilities:
Intangible assets	$	(856)	$	-
Unrecognized gains		(14)		(11)
Total deferred tax liabilities	$	(870)	$	(11)
Net deferred tax assets	$	6,445	$	6,017
Valuation allowance		(7,256)		(6,017)
Net deferred tax liability	$	(811)	$	-

Unrecognized tax benefits

	Year Ended March 31,
	2016		2015		2014
	(In thousands)
Unrecognized tax benefits, beginning of period	$	1,982	$	2,386	$	2,760
Additions based on tax positions related to current year		453		292		250
Additions based on tax positions related to prior years		183		-		13
Settlements during the current year		-		-		-
Lapses during the current year applicable to statutes of limitations		(563)		(696)		(637)
Unrecognized tax benefits, end of period	$	2,055	$	1,982	$	2,386