Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v2.4.0.6
Income taxes (Tables)
 12 Months Ended
Jul. 31, 2012
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] The benefit (provision) for income taxes for fiscal years ended July 31 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

2010

 

 

 

 

 

 

Current (provision) benefit:

 

 

 

 

 

 

 

Federal

 

$

—

 

$

8

 

$

119

 

State and local

 

 

(49

)

 

(161

)

 

(75

)

Foreign

 

 

(61

)

 

33

 

 

(61

)

Deferred (provision) benefit

 

 

1,762

 

 

(17

)

 

45

 

 

 

 

 

 

Benefit (provision) for income taxes

 

$

1,652

 

$

(137

)

$

28

 

 

 

 

 

 

Schedule of Deferred Tax Assets and Liabilities [Table Text Block] The components of deferred tax assets (liabilities) as of July 31 are as follows:

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

 

 

Federal tax carryforward losses

 

$

29,531

 

$

25,504

 

Provision for uncollectible accounts receivable

 

 

1,263

 

 

1,340

 

State and local tax carry forward losses

 

 

2,914

 

 

2,419

 

Accrued royalties

 

 

143

 

 

143

 

Stock compensation

 

 

450

 

 

1,218

 

Depreciation

 

 

445

 

 

—

 

Research and development and other tax credit carryforwards

 

 

795

 

 

633

 

Foreign tax carryforward losses

 

 

108

 

 

381

 

Intangibles

 

 

2,903

 

 

—

 

Inventory

 

 

1,630

 

 

1,515

 

Accrued expenses

 

 

909

 

 

736

 

Other, net

 

 

15

 

 

23

 

 

 

 

 

Deferred tax assets

 

 

41,106

 

 

33,912

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Deferred patent costs

 

 

(139

)

 

(170

)

Intangibles

 

 

—

 

 

(2,983

)

Depreciation

 

 

—

 

 

(27

)

Prepaid expenses

 

 

(613

)

 

(691

)

Other, net

 

 

(31

)

 

(55

)

 

 

 

 

Deferred tax liabilities

 

 

(783

)

 

(3,926

)

 

 

 

 

 

 

 

 

 

 

 

 

Net deferred tax assets (liabilities) before valuation allowance

 

 

40,323

 

 

29,986

 

Less: valuation allowance

 

 

(41,261

)

 

(32,920

)

 

 

 

 

Net deferred tax liabilities

 

$

(938

)

$

(2,934

)

 

 

 

 

Schedule of Deferred Tax Liabilities Included In Consolidated Balance Sheets [Table Text Block] Net deferred tax liabilities are included in the consolidated balance sheets as of July 31 as follows:

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

 

 

 

 

Deferred taxes:

 

 

 

 

 

 

 

Current

 

$

—

 

$

—

 

Non-current

 

 

938

 

 

2,934

 

 

 

 

 

 

 

$

938

 

$

2,934

 

 

 

 

 

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] The components of loss before income taxes consisted of the following for the years ended July 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

2010

 

 

 

 

 

 

United States operations

 

$

(31,817

)

$

(12,284

)

$

(19,642

)

International operations

 

 

(9,104

)

 

(539

)

 

(2,619

)

 

 

 

 

 

Loss before taxes

 

$

(40,921

)

$

(12,823

)

$

(22,261

)

 

 

 

 

 

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] The benefit (provision) for income taxes were at rates different from U.S. federal statutory rates for the following reasons for the years ended July 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

2010

 

 

 

 

 

 

Federal statutory rate

 

 

34.0

%

 

34.0

%

 

34.0

%

Expenses not deductible for income tax return purposes

 

 

(0.5

)

 

(2.3

)

 

(1.5

)

State income taxes, net of (benefit) of federal tax deduction

 

 

0.9

 

 

1.0

 

 

0.1

 

Change in valuation allowance

 

 

(23.2

)

 

(34.6

)

 

(32.3

)

Impairment of goodwill

 

 

(7.1

)

 

—

 

 

—

 

Reversal of tax reserve

 

 

—

 

 

0.1

 

 

0.5

 

Other

 

 

(0.1

)

 

0.7

 

 

(0.7

)

 

 

 

 

 

 

 

 

4.0

%

 

(1.1

)%

 

0.1

%