Income Taxes (Tables)

12 Months Ended

Apr. 30, 2020

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,
	2020		2019		2018
Domestic	$	52,730	$	50,644	$	32,651
Foreign		(60)		(166)		(34)
Income from continuing operations before income taxes		52,670		50,478		32,617
Equity method investment loss		(5,487)		(3,944)		(1,283)
Total income from continuing operations before income taxes	$	47,183	$	46,534	$	31,334

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,
	2020		2019		2018
U.S. federal statutory income tax rate	21.0	%	21.0	%	30.4	%
State and local income taxes, net of federal benefit	(2.1)		(2.2)		(2.2)
R&D and other tax credits	(6.8)		(8.1)		(7.0)
Valuation allowance	3.4		3.7		4.9
Foreign rate differential	—		—		0.1
Return to provision adjustments	0.1		(0.3)		(0.1)
Permanent items	0.7		0.8		(2.7)
Foreign derived intangible income	(3.9)		(3.7)		—
Excess benefit of equity awards	(1.5)		(3.1)		(4.4)
Tax Act	—		—		10.4
Other	0.2		1.1		0.6
Effective income tax rate	11.1	%	9.2	%	30.0	%

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,
	2020		2019		2018
Current:
Federal	$	3,005	$	1,953	$	6,010
State		390		228		900
Foreign		—		—		—
		3,395		2,181		6,910
Deferred:
Federal		2,063		1,945		3,272
State		421		551		(330)
Foreign		(31)		(36)		(52)
		2,453		2,460		2,890
Total income tax expense	$	5,848	$	4,641	$	9,800

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,
	2020		2019
Deferred income tax assets:
Accrued expenses	$	3,337	$	3,559
Stock based compensation		2,259		1,647
Allowances, reserves, and other		1,784		1,579
Outside basis difference		2,264		1,150
Unrealized loss on securities		9		—
Net operating loss and credit carry-forwards		12,832		13,208
Intangibles basis		605		125
Lease liability		2,282		—
Total deferred income tax assets		25,372		21,268
Deferred income tax liabilities:
Fixed asset basis		(1,218)		(425)
Revenue recognition		(3,112)		(2,909)
Right-of-use asset		(1,965)		—
Total deferred income tax liabilities		(6,295)		(3,334)
Valuation allowance		(14,149)		(11,278)
Net deferred tax assets	$	4,928	$	6,656

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, 2020 and 2019 (in thousands):

	April 30,
	2020		2019
Balance as of May 1	$	12,593	$	11,170
Increases related to prior year tax positions		62		216
Decreases related to prior year tax positions		—		—
Increases related to current year tax positions		1,971		1,756
Decreases related to lapsing of statute of limitations		(279)		(549)
Balance as of April 30	$	14,347	$	12,593