Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The income tax expense (benefit) from continuing operations are summarized as follows:



	Fiscal Year Ended March 31,
(in thousands)	2017			2016
Federal:
Current	$	—		$	—
Deferred	(1		)	(142		)
	(1		)	(142		)
State:
Current	44			135
Deferred	1			(28		)
	45			107
Foreign:
Current	24			(32		)
Deferred	(10		)	(35		)
	14			(67		)
Total	$	58		$	(102	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The statutory federal income tax rate is reconciled to the Company's effective income tax rates below:



	Fiscal Year Ended March 31,
	2017		2016
Statutory federal income tax rate	34.0	%	34.0	%
Meals and entertainment	(0.3	)	(0.4	)
State income tax, net of federal tax effect	3.5		2.3
Valuation allowance	(34.7	)	(32.3	)
Deferred tax adjustments	(0.4	)	—
Foreign tax credit	0.2		(0.1	)
Equity compensation	(2.5	)	(2.9	)
Other	(0.2	)	—
Effective income tax rate	(0.4	)%	0.6	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Components of the net deferred income tax assets are as follows:



	March 31,
(in thousands)	2017			2016
Deferred income tax assets:
Allowance for doubtful accounts	$	34		$	19
Alternative minimum tax credit carryforward	697			697
Foreign tax credit carryforward	845			821
Depreciation	1,257			1,146
Deferred revenue	1,316			1,092
Accrued compensation	726			1,130
Inventory reserves	3,303			3,804
Accrued warranty	150			168
Net operating loss carryforward	46,156			41,103
Accrued restructuring	469			701
Other	940			1,075
Gross deferred tax assets	55,893			51,756
Valuation allowance	(52,190		)	(46,683		)
Net deferred income tax assets	3,703			5,073
Deferred income tax liabilities:
Intangibles and goodwill	(3,703		)	(5,083		)
Net deferred income tax liabilities	$	—		$	(10	)

Net deferred income tax liabilities are classified in the Consolidated Balance Sheets as follows:



	March 31,
(in thousands)	2017		2016
Deferred income tax assets	$	—	$	—
Deferred income tax liability	—		(10		)
Net deferred income tax liabilities	$	—	$	(10	)

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits for fiscal years 2016 and 2017 is as follows:



	(in thousands)
Unrecognized tax benefits at March 31, 2015	$	2,962
Additions based on positions related to fiscal year 2016	—
Unrecognized tax benefits at March 31, 2016	2,962
Additions based on positions related to fiscal year 2017	—
Unrecognized tax benefits at March 31, 2017	$	2,962

Summary of Income Tax Examinations [Table Text Block]

With few exceptions, the major jurisdictions subject to examination by the relevant taxable authorities, and open tax years, stated as the Company's fiscal years, are as follows:



Jurisdiction	Open Tax Years
U.S. Federal	2013	-	2016
U.S. States	2012	-	2016
Foreign	2012	-	2016

Since net operating loss carryovers are subject to audit based on the year in which they are utilized, all of the Company’s net operating losses generated in the past are open to adjustment to the Internal Revenue Service or state tax authorities (some states have shorter carryover periods).