Income Taxes (Tables)

12 Months Ended

Apr. 30, 2015

Income Tax Expense

Income tax expense consisted of the following:

	Years ended April 30,
	2015			2014		2013
	(In thousands)
Current:
Federal	$	2,506		$	4,253	$	4,103
State		501			686		847
		3,007			4,939		4,950
Deferred:
Federal		(697	)		557		131
State		(36	)		70		33
		(733	)		627		164
	$	2,274		$	5,566	$	5,114

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 2015, 2014 and 2013, to earnings before income taxes and noncontrolling interest as follows:

	Years ended April 30,
	2015			2014			2013
	(In thousands)
Computed “expected” income tax expense	$	3,641		$	5,564		$	5,434
Increase (decrease) in income taxes resulting from:
State income taxes, net of Federal income tax effect		269			493			568
Research and development credits		(516	)		(258	)		(584	)
Change in valuation allowance for deferred tax assets		(5	)		45			(187	)
Tax contingencies		(955	)		(47	)		27
Other, net, including permanent items		(160	)		(231	)		(144	)
	$	2,274		$	5,566		$	5,114

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, 2015, 2014, and 2013 are as follows:

	Years ended April 30,
	2015			2014		2013
	(In thousands)
Deferred tax (benefit)/expense	$	(728	)	$	582	$	351
(Decrease) increase in the valuation allowance for deferred tax assets		(5	)		45		(187	)
	$	(733	)	$	627	$	164

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, 2015 and 2014 are presented as follows:

	2015			2014
	(In thousands)
Deferred tax assets:
Accruals and expenses not deducted for tax purposes	$	914		$	1,024
State net operating loss carryforwards		350			389
Intangible assets and fixed asset basis differences		1,803			1,347
Nonqualified stock options		1,452			1,154
Total gross deferred tax assets		4,519			3,914
Less valuation allowance		461			466
Net deferred tax assets		4,058			3,448
Deferred tax liabilities:
Capitalized computer software development costs		(3,758	)		(4,109	)
Net gains/losses on trading securities		(605	)		(566	)
Goodwill		(752	)		(598	)
Other		(575	)		(529	)
Total gross deferred tax liabilities		(5,690	)		(5,802	)
Net deferred tax liabilities	$	(1,631	)	$	(2,354	)

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):

	2015			2014
Balance at beginning of the period	$	953		$	981
Decreases as a result of positions taken during prior periods		(896	)		(28	)
Increases as a result of positions taken during the current period		4			—
Balance at April 30,	$	61		$	953