Income Taxes (Tables)

12 Months Ended

Apr. 30, 2014

Income Tax Expense

Income tax expense consisted of the following:

	Years ended April 30,
	2014		2013		2012
	(In thousands)
Current:
Federal	$	4,253	$	4,103	$	5,335
State		686		847		685
		4,939		4,950		6,020
Deferred:
Federal		557		131		(85	)
State		70		33		(7	)
		627		164		(92	)
	$	5,566	$	5,114	$	5,928

Earnings before Income Taxes and Noncontrolling Interest Due to Change in Effective Income Tax Rate

The Company’s actual income tax expense differs from the “expected” income tax expense calculated by applying the Federal statutory rate of 35% for fiscal years 2014, 2013 and 2012, to earnings before income taxes and noncontrolling interest as follows:

	Years ended April 30,
	2014			2013			2012
	(In thousands)
Computed “expected” income tax expense	$	5,564		$	5,434		$	6,045
Increase (decrease) in income taxes resulting from:
State income taxes, net of Federal income tax effect		493			568			405
Research and development credits		(258	)		(584	)		(259	)
Change in valuation allowance for deferred tax assets		45			(187	)		34
Tax contingencies		(47	)		27			(59	)
Other, net, including permanent items		(231	)		(144	)		(238	)
	$	5,566		$	5,114		$	5,928

Significant Components of Deferred Income Tax (Benefit) Expense Attributable to Income from Continuing Operations before Income Taxes

The significant components of deferred income tax (benefit) expense attributable to income from continuing operations before income taxes for the years ended April 30, 2014, 2013, and 2012 are as follows:

	Years ended April 30,
	2014		2013			2012
	(In thousands)
Deferred tax expense (benefit)	$	582	$	351		$	(126	)
(Decrease) increase in the valuation allowance for deferred tax assets		45		(187	)		34
	$	627	$	164		$	(92	)

Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at April 30, 2014 and 2013 are presented as follows:

	2014			2013
	(In thousands)
Deferred tax assets:
Accruals and expenses not deducted for tax purposes	$	1,024		$	1,018
State net operating loss carryforwards		389			358
Intangible assets and fixed asset basis differences		1,347			1,191
Nonqualified stock options		1,154			1,287
Total gross deferred tax assets		3,914			3,854
Less valuation allowance		466			421
Net deferred tax assets		3,448			3,433
Deferred tax liabilities:
Capitalized computer software development costs		(4,109	)		(3,334	)
Net gains/losses on trading securities		(566	)		(458	)
Goodwill		(598	)		(511	)
Other		(529	)		(528	)
Total gross deferred tax liabilities		(5,802	)		(4,831	)
Net deferred tax liabilities	$	(2,354	)	$	(1,398	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, excluding interest and penalties (in thousands):

	2014			2013
Balance at beginning of the period	$	981		$	984
Decreases as a result of positions taken during prior periods		(28	)		(25	)
Increases as a result of positions taken during the current period		—			22
Balance at April 30,	$	953		$	981