Income Taxes (Tables)

12 Months Ended

Apr. 30, 2017

Income tax expense consisted of the following:


	Years ended April 30,
	2017		2016		2015
	(In thousands)
Current:
Federal	$	5,643	$	4,105	$	2,506
State		676		665		501


	Years ended April 30,
	2017		2016			2015
	(In thousands)
		6,319		4,770			3,007

Deferred:
Federal		558		(299	)		(697	)
State		117		(13	)		(36	)

		675		(312	)		(733	)

	$	6,994	$	4,458		$	2,274

Earnings before Income Taxes 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 2017, 2016 and 2015, to earnings before income taxes as follows:


	Years ended April 30,
	2017			2016			2015
	(In thousands)
Computed “expected” income tax expense	$	7,565		$	5,145		$	3,641
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal income tax effect		592			435			269
Research and development credits		(520	)		(694	)		(516	)
Change in valuation allowance for deferred tax assets		(293	)		(2	)		(5	)
Tax contingencies		(42	)		(13	)		(955	)
Other, net, including permanent items		(308	)		(413	)		(160	)

	$	6,994		$	4,458		$	2,274

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, 2017, 2016, and 2015 are as follows:


	Years ended April 30,
	2017			2016			2015
	(In thousands)
Deferred tax expense/(benefit)	$	968		$	(310	)	$	(728	)
Decrease in the valuation allowance for deferred tax assets		(293	)		(2	)		(5	)

	$	675		$	(312	)	$	(733	)

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, 2017 and 2016 are presented as follows:


	2017		2016
	(In thousands)
Deferred tax assets:
Accruals and expenses not deducted for tax purposes	$	461	$	1,008
State net operating loss carryforwards		295		333
Fixed asset basis differences		1,384		1,515


	2017			2017
	(In thousands)
Nonqualified stock options		1,679			1,870
Deferred revenue		234			96

Total gross deferred tax assets		4,054			4,822
Less valuation allowance		166			459

Net deferred tax assets		3,887			4,363

Deferred tax liabilities:
Capitalized computer software development costs		(3,298	)		(3,500	)
Net gains/losses on trading securities		(1,019	)		(673	)
Goodwill and intangible assets basis differences		(939	)		(957	)
Deferred agent commissions		(625	)		(553	)

Total gross deferred tax liabilities		(5,881	)		(5,682	)

Net deferred tax liabilities	$	(1,994	)	$	(1,319	)

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):


	2017			2016
Balance at beginning of the period	$	54		$	61
Decreases as a result of positions taken during prior periods		(25	)		(11	)
Increases as a result of positions taken during the current period		4			4

Balance at April 30,	$	33		$	54