Income Taxes (Tables)

12 Months Ended

Mar. 31, 2013

Schedule of loss from operations before income taxes

Loss before income taxes consisted of the following (dollars in thousands):



	Year Ended March 31,
	2013			2012			2011
United States	$	(21,555	)	$	(4,303	)	$	(1,900	)
Non-United States	(279		)	(1,128		)	(108		)
	$	(21,834	)	$	(5,431	)	$	(2,008	)

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes was as follows (dollars in thousands):



	Year Ended March 31,
	2013			2012			2011
Current tax provision (benefit):
Federal	$	—		$	(563	)	$	157
State	(10		)	45			88
Foreign	218			158			280
	208			(360		)	525
Deferred tax provision (benefit):
Federal	445			876			(1,142		)
State	188			241			(323		)
Foreign	3			238			(301		)
	636			1,355			(1,766		)
	$	844		$	995		$	(1,241	)

Effective income tax rate reconciliation

The reported provision (benefit) for income taxes differs from the amount computed by applying the statutory federal income tax rate of 34% to loss before income taxes as follows (dollars in thousands):



	Year Ended March 31,
	2013			2012			2011
Tax benefit computed at statutory rates	$	(7,579	)	$	(1,851	)	$	(682	)
State taxes, net of federal benefit	(1,672		)	(419		)	(168		)
Research credits	(454		)	(480		)	(786		)
Non-deductible expenses	133			130			113
Tax exempt income	(56		)	(158		)	(154		)
Unrecognized tax benefits	83			(315		)	337
Meals and entertainment	75			70			66
Foreign tax rate differences	(81		)	(53		)	(77		)
Change in valuation allowance	10,052			4,002			150
Purchase accounting adjustment	—			—			(42		)
Adjustment to deferred income tax rate	59			39			—
Other	284			30			2
	$	844		$	995		$	(1,241	)

Schedule of deferred tax assets and liabilities

Deferred tax assets (liabilities) consisted of the following components (dollars in thousands):



	March 31,
	2013			2012
Current deferred taxes:
Accrued expense	$	282		$	225
Prepaid expenses	(76		)	(68		)
Other current	9			142
Total current deferred taxes	215			299
Valuation allowance - current	(251		)	(251		)
Net current deferred taxes	(36		)	48
Non-current deferred taxes:
Depreciation and amortization	(800		)	69
Deferred rent	989			589
Accelerated research and experimentation expenditures	(4,042		)	(3,517		)
Stock-based compensation	6,442			5,167
Net operating and capital loss carryforwards	9,510			710
Federal and state tax credits	1,076			618
Other	142			124
Total non-current deferred taxes	13,317			3,760
Valuation allowance	(13,891		)	(3,839		)
Net non-current deferred taxes	(574		)	(79		)
Net deferred taxes	$	(610	)	$	(31	)

Schedule of unrecognized tax benefits roll-forward

Following is a roll-forward of our unrecognized tax benefits (in thousands):



Balance at March 31, 2010	$	958
Additions for tax positions taken in Fiscal 2011	139
Additions for tax positions taken in prior fiscal years	178
Balance at March 31, 2011	1,275
Additions for tax positions taken in Fiscal 2012	279
Decreases for lapses in statutes of limitation	(551		)
Balance at March 31, 2012	1,003
Additions for tax positions taken in Fiscal 2013	145
Additions for tax positions taken in prior fiscal years	7
Decreases for lapses in statutes of limitation	(75		)
Balance at March 31, 2013	$	1,080