Note 8 - Income Taxes

3 Months Ended

Jun. 25, 2011

Income Tax Disclosure [Text Block]

(8)            Income Taxes

The Company accounts for income taxes using the asset and liability method as codified in Topic 740. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards.

The Company’s tax benefit for the three months ending June 25, 2011 was $204,000.  The effective tax rate differed from the statutory tax rate primarily as a result of state tax and R&D tax credits.  The Company’s tax benefit for the three months ending June 26, 2010 was 13,569,000 due to the reversal of the valuation allowance against the deferred tax assets in the first quarter of 2011.

As of June 25, 2011, the Company did not record any unrecognized tax benefits related to uncertain tax positions.  The unrecognized tax benefit is netted against the non-current deferred tax asset on the Consolidated Balance Sheet.  The Company has not recorded a liability for any penalties or interest related to the unrecognized tax benefits.  The Company is not currently undergoing any audits by the tax authorities and does not expect the liability for unrecognized tax benefits to change materially within the next 12 months.