Income Taxes

12 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

INCOME TAXES

NOTE 7 — INCOME TAXES:

	2012		2011
	(In thousands)
Current:
Federal	$	266	$	285
Foreign, state and other		579		808
Prior year state and local		234		98
Deferred:
Federal		1,089		4,444
Foreign, state and other		308		156
	$	2,476	$	5,791

The Company files a consolidated federal return and certain state and local income tax returns.

The difference between the effective rate reflected in the provision for income taxes and the amounts determined by applying the statutory federal rate of 34% to earnings before income taxes for the years ended March 31, 2012 and 2011 is analyzed below:

	2012			2011
	(In thousands)
Statutory provision (benefit)	$	4,458		$	7,381
Foreign subsidiary		(1,677	)		(2,523	)
State taxes		736			671
Permanent differences		6			7
True up of prior year taxes		34			(764	)
Expiration of NOL		—			—
Usage of NOL		—			(156	)
Valuation allowance		(1,081	)		1,158
Other, net		—			17
Total income tax (benefit)	$	2,476		$	5,791

As of March 31, 2012 and 2011, the significant components of the Company’s deferred tax assets and liabilities were as follows:

	2012			2011
	(In thousands)
Deferred tax assets:
Current:
Accounts receivable reserves	$	1,445		$	1,432
Inventory reserves		368			1,227
Accruals		214			—
Stock warrants		166			166
Non-current:
Property, plant, and equipment		699			699
Impairment of auction rate securities		—			828
Net operating loss and credit carryforwards		1,235			2,249
Stock compensation		79			79
Gross deferred tax assets		4,206			6,680
Valuation allowances		(234	)		(1,315	)
Total deferred tax assets		3,972			5,365
Deferred tax liabilities:
Non-current:
Capital lease expense		177			158
Total Deferred Tax Liabilities		177			158
Net deferred tax assets	$	3,795		$	5,207

The Company has no U.S. federal net operating loss carryforwards (“NOLs”) as of March 31, 2012.

The amounts of state NOLs available by year as of March 31, 2012 are as follows (in millions $):

Loss Year (Fiscal)	Included in DTA	Expiration Year (Fiscal)
2007	1.3	2017
2008	2.6	2018

The tax benefits related to these state net operating loss carryforwards and future deductible temporary differences are recorded to the extent management believes it is more likely than not that such benefits will be realized.

Income of foreign subsidiaries before taxes was $4,908,000 and $7,983,000 for the years ended March 31, 2012 and 2011, respectively.

No provision was made for U.S. or additional foreign taxes on undistributed earnings of foreign subsidiaries. Such earnings have been and will be reinvested but could become subject to additional tax if they were remitted as dividends, or were loaned to the Company or a domestic affiliate, or if the Company should sell its stock in the foreign subsidiaries. It is not practicable to determine the amount of additional tax, if any, that might be payable on undistributed foreign earnings.

A reconciliation of the Company’s changes in uncertain tax positions from April 1, 2011 to March 31, 2012 is as follows:

	In 000’s
Total amount of unrecognized tax benefits as of April 1, 2011	$	121
Gross increases in unrecognized tax benefits as a result of tax positions taken during a prior period		—
Gross decreases in unrecognized tax benefits as a result of tax positions taken during a prior period		—
Gross increases in unrecognized tax benefits as a result of tax positions taken during the current period		—
Gross decreases in unrecognized tax benefits as a result of tax positions taken during the current period		—
Decreases in unrecognized tax benefits relating to settlements with taxing authorities		—
Reductions to unrecognized tax benefits as a result of lapse of statute of limitations		—
Total amount of unrecognized tax benefits as of March 31, 2012	$	121

The effective tax rate on the Company’s income before income taxes for fiscal 2012 differs from the federal statutory rate primarily as a result of difference in tax rate between U.S. and foreign jurisdictions, state income taxes, and change in net operating loss carryforwards. The effective tax rate on the Company’s income before income taxes for fiscal 2011 differs from the federal statutory rate primarily as a result of difference in tax rate between U.S. and foreign jurisdictions, state income taxes and change in net operating loss carryforwards.

The Company is subject to examination and assessment by tax authorities in numerous jurisdictions. A summary of the Company’s open tax years is as follows as of March 31, 2012:

Jurisdiction	Open Tax Years
U.S. Federal		2008-2011
U.S. States		2007-2011
Foreign		2005-2011

Based on the outcome of tax examinations or due to the expiration of statutes of limitations, it is reasonably possible that the unrecognized tax benefits related to uncertain tax positions taken in previously filed returns may be different from the liabilities that have been recorded for these unrecognized tax benefits. As a result, the Company may be subject to additional tax expense.