Income Taxes

3 Months Ended

Apr. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

The Company reported the following income tax for the periods indicated:

	Three Months Ended April 30,
	2013		2012
	(in thousands)
Income tax expense	$	473	$	303

The Company recognized income tax expense of approximately $0.5 million and $0.3 million for the three months ended April 30, 2013 and 2012, respectively. The estimated effective tax rate was 9.1% and 10.4% for the three months ended April 30, 2013 and 2012, respectively. The effective tax rate for the three months ended April 30, 2013 was lower than the effective tax rate for the three months ended April 30, 2012 primarily due to tax benefits resulting from the reinstatement of the U.S. federal research credit in January 2013.

The Company files federal and state income tax returns in the United States and in various foreign jurisdictions. The tax years 2007 to 2009 and 2011 to 2013 remain open to examination by U.S. federal tax authorities. The tax years 2004 to 2013 remain open to examination by U.S. state tax authorities. The tax years 2010 to 2013 remain open to examination by material foreign tax authorities.

The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of April 30, 2013, the gross amount of unrecognized tax benefits was approximately $3 million. If the estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period in which the Company determines the liabilities are no longer necessary. The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months.