5. INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2017

INCOME TAXES

Loss before provision (benefit) for income taxes

	Year Ended March 31,
	2017		2016		2015
	(In thousands)
Loss before income taxes:
U.S.	$	(4,938)	$	(3,426)	$	(6,910)
Foreign		4,889		615		1,257
	$	(49)	$	(2,811)	$	(5,653)
Current income tax expense (benefit):
U.S. federal	$	(14)	$	(354)	$	(619)
Foreign		736		15		(2)
State		4		(289)		(54)
		726		(628)		(675)
Deferred income tax expense (benefit):
U.S. federal		14		(3)		—
Foreign		(674)		(10)		—
		(660)		(13)		—
Provision (benefit) for income taxes	$	66	$	(641)	$	(675)

Income tax reconciliation

	Year Ended March 31,
	2017		2016		2015
	(In thousands)
U.S. Federal taxes at statutory rate	$	(17)	$	(956)	$	(1,922)
State taxes, net of federal benefit		3		(204)		(39)
Stock-based compensation		630		470		447
Tax credits		(398)		(539)		(472)
Foreign tax rate differential		(1,525)		(368)		(916)
Tax exempt interest		(5)		(9)		(20)
Non-deductible expenses and other		24		6		(35)
		(1,288)		(1,600)		(2,957)
Valuation allowance		1,354		959		2,282
	$	66	$	(641)	$	(675)

Deferred tax assets and deferred tax liabilities

	March 31,
	2017		2016
	(In thousands)
Deferred tax assets:
Deferred revenue	$	330	$	231
Tax credits		3,387		2,706
Net operating losses		2,264		1,356
Stock-based compensation		1,386		1,550
Property and equipment		425		297
Other reserves and accruals		1,167		1,175
Total deferred tax assets	$	8,959	$	7,315
Deferred tax liabilities:
Intangible assets	$	(13)	$	(856)
Unrecognized gains		—		(14)
Total deferred tax liabilities	$	(13)	$	(870)
Net deferred tax assets	$	8,946	$	6,445
Valuation allowance		(8,939)		(7,256)
Net deferred tax asset (liability)	$	7	$	(811)

Unrecognized tax benefits

	Year Ended March 31,
	2017		2016		2015
	(In thousands)
Unrecognized tax benefits, beginning of period	$	2,055	$	1,982	$	2,386
Additions based on tax positions related to current year		730		453		292
Additions based on tax positions related to prior years		—		183		—
Settlements during the current year		—		—		—
Lapses during the current year applicable to statutes of limitations		(71)		(563)		(696)
Unrecognized tax benefits, end of period	$	2,714	$	2,055	$	1,982