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INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2021

INCOME TAXES

Components of Income (Loss) Before Taxes

The components of income (loss) before taxes are (in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended October 31,
​		2021			2020			2019
Income (loss) before income taxes:		​			​			​
Domestic	​	$	4,340		$	(11,681)		$	9,793
Foreign	​		5,781			878			13,531
​	​	$	10,121		$	(10,803)		$	23,324

Schedule of Income Taxes Provision (Benefit)

​

In the fiscal years set forth below, the  provision (benefit) for income taxes consisted of the following (in thousands):

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended October 31,
​		2021			2020			2019
Current:		​			​	​		​
U.S. taxes	​	$	1,763		$	(4,932)		$	1,854
Foreign taxes	​		1,706	​		923	​		3,715
​	​		3,469	​		(4,009)	​		5,569
Deferred:	​		​	​		​	​		​
U.S. taxes	​		66	​		(256)	​		(31)
Foreign taxes	​		(178)	​		(291)	​		291
​	​		(112)	​		(547)	​		260
​	​	$	3,357		$	(4,556)		$	5,829

Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended October 31,
​		2021			​	2020			2019
​	​		​	​	​		​	​
U.S. statutory rate	​		21	%	​		21	%		21	%
Effect of tax rate of international jurisdictions different than U.S. statutory rates	​		4	%	​		(2)	%		3	%
Valuation allowance	​		—	%	​		—	%		1	%
State taxes	​		1	%	​		2	%		1	%
Tax credits	​		—	%	​		1	%		(2)	%
Transition tax	​		—	%	​		—	%		(1)	%
US tax on distributed and undistributed earnings	​	​	—	%	​	​	—	%	​	3	%
US benefit of foreign intangible income	​	​	(1)	%	​	​	—	%	​	(3)	%
Impact of CARES act	​	​	5	%	​	​	22	%	​	—	%
Other	​		3	%	1		(2)	%		2	%
Effective tax rate	​		33	%	​		42	%		25	%

¹ Primarily due to discrete items for unearned stock awards

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities at October 31, 2021 and 2020 are as follows (in thousands):

​

​	​	​	​	​	​	​
​	​	October 31,
​		2021			2020
Deferred Tax Assets:		​			​
Accrued inventory reserves	​	$	973		$	1,241
Accrued warranty expenses	​		308	​		248
Compensation related expenses	​		2,444	​		1,849
Net derivative gain	​	​	49	​	​	—
Unrealized exchange gain	​		—	​		14
Other accrued expenses	​		282	​		226
Net operating loss carryforwards	​		1,705	​		1,957
Other credit carryforwards	​		839	​		887
Operating lease liabilities	​	​	2,570	​	​	2,736
Goodwill and intangibles	​	​	967	​	​	1,019
Other	​		215	​		183
​	​		10,352	​		10,360
Less: Valuation allowance – net operating loss and other credit carryforwards	​		(1,871)	​		(2,164)
Deferred tax assets	​		8,481	​		8,196
​	​		​	​		​
Deferred Tax Liabilities:	​		​	​		​
Net derivative loss	​		—	​		(305)
Unrealized exchange loss	​		(15)	​		—
Property and equipment and capitalized software development costs	​		(2,533)	​		(2,563)
Operating lease - right of use assets	​	​	(2,495)	​	​	(2,666)
Other	​		(352)	​		(314)
Net deferred tax assets	​	$	3,086		$	2,348

Schedule of Income Tax Expense

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

​

​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
Balance, beginning of year	​	$	168		$	193		$	180
Additions based on tax positions related to the current year	​		74	​		9	​		36
Additions (reductions) related to prior year tax positions	​		—	​		(2)	​		—
Reductions due to statute expiration	​		(75)	​		(32)	​		(23)
Other	​		—	​		—	​		—
Balance, end of year	​	$	167		$	168		$	193

Summary of open tax years by major jurisdiction

​

​	​	​
United States federal	​	Fiscal 2014 through the current period
Germany¹	​	Fiscal 2017 through the current period
Taiwan	​	Fiscal 2016 through the current period
United Kingdom	​	Fiscal 2015 through the current period

¹ Includes federal as well as state, provincial or similar local jurisdictions, as applicable.

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