Income Taxes	9 Months Ended
Jan. 31, 2014
Income Taxes	7. Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities will be recognized in the period that includes the enactment date. A valuation allowance is established against the deferred tax assets to reduce their carrying value to an amount that is more likely than not to be realized. The Company computes its interim provision for income taxes by applying the estimated annual effective tax rate to income from operations and adjusts the provision for discrete tax items occurring in the period. The Company’s effective tax rate for the three and nine months ended January 31, 2014 was 5.8% and 1.5%, respectively, compared to benefits of 17.5% and 4.1% for the three and nine months ended January 31, 2013, respectively. The current fiscal year tax rates were primarily attributable to estimated foreign and state income tax expense compared to a consolidated pre-tax book loss. The nine months ended January 31, 2014 includes a benefit of $0.4 million which was recorded as a discrete item related to a 2013 Texas state research and development credit, which was enacted in the first quarter of this fiscal year. During the nine months ended January 31, 2013, the Company recorded a tax benefit of $2.5 million resulting from a reduction in the valuation allowance associated with the Longboard Media acquisition.

Income Taxes

9 Months Ended

Jan. 31, 2014

7. Income Taxes

The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities will be recognized in the period that includes the enactment date. A valuation allowance is established against the deferred tax assets to reduce their carrying value to an amount that is more likely than not to be realized.

The Company computes its interim provision for income taxes by applying the estimated annual effective tax rate to income from operations and adjusts the provision for discrete tax items occurring in the period. The Company’s effective tax rate for the three and nine months ended January 31, 2014 was 5.8% and 1.5%, respectively, compared to benefits of 17.5% and 4.1% for the three and nine months ended January 31, 2013, respectively. The current fiscal year tax rates were primarily attributable to estimated foreign and state income tax expense compared to a consolidated pre-tax book loss. The nine months ended January 31, 2014 includes a benefit of $0.4 million which was recorded as a discrete item related to a 2013 Texas state research and development credit, which was enacted in the first quarter of this fiscal year. During the nine months ended January 31, 2013, the Company recorded a tax benefit of $2.5 million resulting from a reduction in the valuation allowance associated with the Longboard Media acquisition.