Income Taxes (Tables)

12 Months Ended

Apr. 30, 2017

Income Taxes

Schedule of components of income before income taxes

The components of income before income taxes are as follows (in thousands):

	Year Ended April 30,
	2017		2016		2015
Domestic	$	14,415	$	8,125	$	2,138
Foreign		(206)		(57)		(245)
Total	$	14,209	$	8,068	$	1,893

Schedule of reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax (benefit) expense

	Year Ended April 30,
	2017		2016		2015
U.S. federal statutory income tax rate	34.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	(3.0)		(15.3)		(84.4)
R&D and other tax credits	(19.5)		(49.9)		(172.3)
Valuation allowance	6.4		17.1		96.7
Foreign rate differential	0.2		—		—
Uncertain tax position adjustment	—		—		(1.9)
Return to provision adjustments	(0.4)		6.1		78.3
Permanent items	(4.0)		(2.6)		(5.2)
Other	(1.4)		(1.5)		0.9
Effective income tax rate	12.3	%	(11.1)	%	(52.9)	%

Schedule of (benefit) provision for income taxes

The components of the (benefit) provision for income taxes are as follows (in thousands):

	Year Ended April 30,
	2017		2016		2015
Current:
Federal	$	1,766	$	1,804	$	573
State		129		154		(1,292)
Foreign		—		—		—
		1,895		1,958		(719)
Deferred:
Federal		(451)		(2,859)		(1,972)
State		343		3		1,689
Foreign		(35)
		(143)		(2,856)		(283)
Total income tax (benefit) expense	$	1,752	$	(898)	$	(1,002)

Schedule of components of the Company's deferred income tax assets and liabilities

Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands):

	April 30,
	2017		2016
Deferred income tax assets:
Accrued expenses	$	7,074	$	8,238
Allowances, reserves, and other		1,801		1,330
Unrealized loss on securities		74		119
Net operating loss and credit carry-forwards		11,854		9,554
Intangibles basis		43		416
Total deferred income tax assets		20,846		19,657
Deferred income tax liabilities:
Other		(29)		—
Fixed asset basis		(428)		(395)
Total deferred income tax liabilities		(457)		(395)
Valuation allowance		(5,416)		(4,511)
Net deferred tax assets	$	14,973	$	14,751

Summary of activity related to gross unrecognized tax benefits

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended April 30, 2017 and 2016 (in thousands):

	April 30,
	2017		2016
Balance as of May 1	$	9,905	$	8,190
Increases related to prior year tax positions		3		581
Decreases related to prior year tax positions		(26)		—
Increases related to current year tax positions		901		1,144
Decreases related to lapsing of statute of limitations		(927)		(10)
Balance as of April 30,	$	9,856	$	9,905