Income Taxes (Tables)

12 Months Ended

Jan. 31, 2016


	Years Ended January 31,
	2016			2015			2014
	(in thousands)
(Loss) income before income taxes is attributable to the following jurisdictions:
Domestic	$	(11,900	)	$	(6,766	)	$	(4,323	)
Foreign		(15,859	)		(3,420	)		10,349

Total	$	(27,759	)	$	(10,186	)	$	6,026

The components of income tax expense (benefit) were as follows:
Current:
Domestic	$	(16	)	$	387		$	802
Foreign		684			1,687			2,660

		668			2,074			3,462
Deferred:
Domestic		10,762			(4,230	)		(3,039	)
Foreign		(453	)		1,162			835

		10,309			(3,068	)		(2,204	)

Income tax expense (benefit)	$	10,977		$	(994	)	$	1,258

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


	Years Ended January 31,
	2016			2015			2014
	(in thousands)
Federal income tax (benefit) expense at 34%	$	(9,436	)	$	(3,463	)	$	2,049
Changes in tax rates		(82	)		—			22
Permanent differences		509			(224	)		132
Foreign effective tax rate differential		1,609			540			(1,884	)
Potential tax, penalties and interest resulting from uncertain tax positions		(236	)		(172	)		32
Foreign withholding taxes		717			920			642
Election to deduct foreign taxes in prior years U.S. income tax returns		2,610			—			—
Valuation allowance on deferred tax assets		15,477			1,379			—
Other		(191	)		26			265

	$	10,977		$	(994	)	$	1,258

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


	As of January 31,
	2016			2015
	(in thousands)
Deferred tax assets:
Net operating losses	$	10,127		$	4,053
Tax credit carry forwards		823			4,472
Stock option book expense		2,716			2,837
Allowance for doubtful accounts		2,121			1,798
Allowance for inventory obsolescence		116			68
Accruals not yet deductible for tax purposes		636			421
Fixed assets		299			—
Other		627			620

Gross deferred tax assets		17,465			14,269
Valuation allowance		(16,647	)		(1,379	)

Deferred tax assets		818			12,890
Deferred tax liabilities:
Fixed assets		—			(636	)
Intangible assets		(215	)		(390	)
Foreign branch taxes		—			(274	)
Other		(17	)		(4	)

Deferred tax liabilities		(232	)		(1,304	)
Unrecognized tax benefits		—			(237	)

Total deferred tax assets, net	$	586		$	11,349

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


	Years Ended January 31,
	2016			2015			2014
	(in thousands)
Unrecognized tax benefits as of beginning of year	$	92		$	254		$	—
Increases as a result of tax positions taken in prior years		—			—			254
Increases as a result of tax positions taken in current year		—			—			—
Settlements		(44	)		(162	)		—
Lapse of statute of limitations		(48	)		—			—

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