Income Taxes (Tables)

12 Months Ended

Jan. 31, 2015


	Years Ended January 31,
	2015			2014			2013
	(in thousands)
Income (loss) before income taxes is attributable to the following jurisdictions:
Domestic	$	(6,766	)	$	(4,323	)	$	(2,824	)
Foreign		(3,420	)		10,349			16,348

Total	$	(10,186	)	$	6,026		$	13,524


The components of income tax expense (benefit) were as follows:
Current:
Domestic	$	387		$	802		$	(2,306	)
Foreign		1,687			2,660			3,229

		2,074			3,462			923
Deferred:
Domestic		(4,230	)		(3,039	)		(4,757	)
Foreign		1,162			835			307

		(3,068	)		(2,204	)		(4,450	)

Income tax expense (benefit)	$	(994	)	$	1,258		$	(3,527	)

The following is a reconciliation of expected to actual income tax expense:


	Years Ended January 31,
	2015			2014			2013
	(in thousands)
Federal income tax (benefit) expense at 34%	$	(3,463	)	$	2,049		$	4,598
Changes in tax rates		—			22			23
Permanent differences		(224	)		132			(741	)
Foreign effective tax rate differential		540			(1,884	)		(3,092	)
Potential tax, penalties and interest resulting from uncertain tax positions		(172	)		32			(5,059	)
Foreign withholding taxes		920			642			—
Valuation allowance on deferred tax assets		1,379			—			—
Other		26			265			744

	$	(994	)	$	1,258		$	(3,527	)

The components of the Company’s deferred taxes consisted of the following:


	As of January 31,
	2015			2014
	(in thousands)
Deferred tax assets:
Net operating losses	$	4,053		$	2,592
Tax credit carry forwards		4,472			3,470
Stock option book expense		2,837			2,689
Allowance for doubtful accounts		1,798			1,704
Allowance for inventory obsolescence		68			94
Accruals not yet deductible for tax purposes		421			620
Other		620			679

Gross deferred tax assets		14,269			11,848
Valuation allowance		(1,379	)		—

Deferred tax assets		12,890			11,848
Deferred tax liabilities:
Fixed assets		(636	)		(2,172	)
Intangible assets		(390	)		(435	)
Foreign branch taxes		(274	)		(1,140	)
Other		(4	)		—

Deferred tax liabilities		(1,304	)		(3,747	)
Unrecognized tax benefits		(237	)		—

Total deferred tax assets, net	$	11,349		$	8,101

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding potential penalties and interest, is as follows:


	Years Ended January 31,
	2015			2014		2013
	(in thousands)
Unrecognized tax benefits as beginning of year	$	254		$	—	$	(3,300	)
Increases (decreases) as a result of tax positions taken in prior years		—			254		—
Increases as a result of tax positions taken in current year		—			—		—
Settlements		(162	)		—		3,300
Lapse of statute of limitations		—			—		—

Unrecognized tax benefits as of end of year	$	92		$	254	$	—