Income Taxes (Tables)

12 Months Ended

Jan. 31, 2013

Summary of Income before Income Taxes

Income before income taxes consisted of the following for the periods indicated:

	Year Ended January 31,
	2013		2012		2011
	(in thousands)
U.S. operations	$	3,264	$	2,923	$	2,758
Non-U.S. operations		16,778		8,242		12,672
Income before income taxes	$	20,042	$	11,165	$	15,430

Schedule of Income Tax Provision

Income tax provision consisted of the following for the periods indicated:

	Year Ended January 31,
	2013			2012			2011
	(in thousands)
Current:
U.S. federal tax	$	2,022		$	962		$	306
U.S. state taxes		5			26			—
Non-U.S. foreign taxes		701			502			708
		2,728			1,490			1,014
Deferred:
U.S. federal tax		(743	)		(73	)		473
U.S. state taxes		(109	)		(36	)		10
Non-U.S. foreign taxes		(22	)		(37	)		4
		(874	)		(146	)		487
Provision for income taxes	$	1,854		$	1,344		$	1,501

Schedule of Income Tax Provision Differed from Amounts Computed by Applying U.S. Federal Income Tax Rate

Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax income as a result of the following for the periods indicated:

	Year Ended January 31,
	2013			2012			2011
	(in thousands)
U.S. federal tax at statutory rate	$	6,814		$	3,796		$	5,246
U.S. state taxes		(107	)		(13	)		9
Non-U.S. foreign tax differential		(4,513	)		(2,306	)		(3,577	)
Stock-based compensation		682			537			366
U.S. R&D credit		(890	)		(623	)		(571	)
Other		(132	)		(47	)		28
Provision for income taxes	$	1,854		$	1,344		$	1,501

Schedule of Deferred Tax Assets and Liabilities

Temporary differences that gave rise to significant portions of the Company’s deferred tax assets and liabilities at January 31, 2013 and 2012 were as follows:

	As of January 31,
	2013			2012
	(in thousands)
Deferred tax assets:
Deferred revenue	$	—		$	83
Federal and state credits		1,243			1,301
Expenses not currently deductible		1,345			895
Foreign deferred		60			38
Stock-based compensation		950			451
Gross deferred tax assets		3,598			2,768
Valuation allowance		(1,243	)		(1,301	)
Total deferred tax assets	$	2,355		$	1,467
Deferred tax liabilities
Property and equipment		(197	)		(180	)
Net deferred tax assets	$	2,158		$	1,287

Summary of Tax Valuation Allowance

Tax valuation allowance for the periods indicated below were as follows:

	Balance at Beginning of Period		Additional Charged to Expenses		Additions Charged to Other Account		Deductions Charged to Expenses or Other Accounts			Balance at End of Period
	(in thousands)
Tax Valuation Allowance
Year ended January 31, 2013	$	1,301	$	—	$	—	$	(58	)	$	1,243
Year ended January 31, 2012	$	1,153	$	280	$	—	$	(132	)	$	1,301
Year ended January 31, 2011	$	5,409	$	46	$	—	$	(4,302	)	$	1,153

Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

The following table sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits:

	Year Ended January 31,
	2013			2012			2011
	(in thousands)
Beginning balance:	$	2,213		$	2,007		$	1,883
Additions based on tax positions related to the current year		325			311			244
Additions for tax positions of prior years		690			34			138
Reductions for tax positions of prior years		(210	)		(139	)		(258	)
Ending balance:	$	3,018		$	2,213		$	2,007