Income Taxes (Tables)

12 Months Ended

Apr. 30, 2019

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,
	2019		2018		2017
Domestic	$	50,644	$	32,651	$	22,642
Foreign		(166)		(34)		(86)
Income from continuing operations before income taxes		50,478		32,617		22,556
Equity method investment loss		(3,944)		(1,283)		(119)
Total income from continuing operations before income taxes	$	46,534	$	31,334	$	22,437

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

	Year Ended April 30,
	2019		2018		2017
U.S. federal statutory income tax rate	21.0	%	30.4	%	34.0	%
State and local income taxes, net of federal benefit	(2.2)		(2.2)		(1.7)
R&D and other tax credits	(8.1)		(7.0)		(10.8)
Valuation allowance	3.7		4.9		3.8
Foreign rate differential	—		0.1		—
Return to provision adjustments	(0.3)		(0.1)		(0.3)
Permanent items	0.8		(2.7)		(2.3)
Foreign derived intangible income	(3.7)		—		—
Excess benefit of stock options	(3.1)		(4.4)		(1.0)
Tax Act	—		10.4		—
Other	1.1		0.6		(0.6)
Effective income tax rate	9.2	%	30.0	%	21.1	%

Schedule of components of the provision (benefit) for income taxes

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

	Year Ended April 30,
	2019		2018		2017
Current:
Federal	$	1,953	$	6,010	$	4,336
State		228		900		243
Foreign		—		—		—
		2,181		6,910		4,579
Deferred:
Federal		1,945		3,272		(66)
State		551		(330)		280
Foreign		(36)		(52)		(35)
		2,460		2,890		179
Total income tax expense (benefit)	$	4,641	$	9,800	$	4,758

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,
	2019		2018
Deferred income tax assets:
Accrued expenses	$	5,206	$	5,771
Allowances, reserves, and other		2,729		2,100
Unrealized loss on securities		—		25
Net operating loss and credit carry-forwards		13,208		12,361
Intangibles basis		125		94
Total deferred income tax assets		21,268		20,351
Deferred income tax liabilities:
Fixed asset basis		(425)		(682)
Revenue recognition		(2,909)		326
Total deferred income tax liabilities		(3,334)		(356)
Valuation allowance		(11,278)		(8,568)
Net deferred tax assets	$	6,656	$	11,427

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, 2019 and 2018 (in thousands):

	April 30,
	2019		2018
Balance as of May 1	$	11,170	$	9,856
Increases related to prior year tax positions		216		228
Decreases related to prior year tax positions		—		—
Increases related to current year tax positions		1,756		1,347
Decreases related to lapsing of statute of limitations		(549)		(261)
Balance as of April 30	$	12,593	$	11,170