Income Taxes (Tables)
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12 Months Ended |
Apr. 30, 2025 |
| Income Taxes |
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| Schedule of components of income before income taxes |
The components of income (loss) before income taxes are as follows (in thousands): | | | | | | | | | | | | | Year Ended April 30, | | | | 2025 | | 2024 | | 2023 | | Domestic | | $ | 68,814 | | $ | 68,968 | | $ | (187,647) | | Foreign | | | (29,150) | | | (5,737) | | | (730) | | Income (loss) before income taxes | | | 39,664 | | | 63,231 | | | (188,377) | | | | | | | | | | | | | Equity method investment income (loss) | | | 4,837 | | | (1,674) | | | (2,453) | | Total income (loss) before income taxes | | $ | 44,501 | | $ | 61,557 | | $ | (190,830) | |
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| Schedule of reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense |
A reconciliation of income tax expense (benefit) computed using the U.S. federal statutory rates to actual income tax expense is as follows: | | | | | | | | | | | | Year Ended April 30, | | | | 2025 | | | 2024 | | | 2023 | | U.S. federal statutory income tax rate | | 21.0 | % | | 21.0 | % | | 21.0 | % | Foreign rate differential | | (6.6) | | | (0.5) | | | (0.1) | | State income taxes, net of federal benefit | | (2.5) | | | 0.9 | | | 0.2 | | Research and development credits | | (13.3) | | | (7.8) | | | (1.8) | | Valuation allowance | | 5.8 | | | 1.5 | | | 1.1 | | Return to provision adjustments | | (0.3) | | | 1.6 | | | — | | Limit on executive compensation | | 6.7 | | | 2.7 | | | (0.4) | | Permanent items | | 3.7 | | | 0.6 | | | (0.3) | | Foreign derived intangible income | | (19.7) | | | (16.0) | | | 2.3 | | Excess benefit relating to stock-based compensation | | (7.6) | | | (0.6) | | | 0.8 | | Goodwill impairment | | 13.8 | | | — | | | (17.2) | | Unrecognized tax benefit | | 1.2 | | | (0.6) | | | 2.0 | | Other | | — | | | 0.2 | | | 0.2 | | Effective income tax rate | | 2.2 | % | | 3.0 | % | | 7.8 | % |
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| Schedule of components of the provision for income taxes |
The components of the provision for (benefit from) income taxes are as follows (in thousands): | | | | | | | | | | | | | Year Ended April 30, | | | | 2025 | | 2024 | | 2023 | | Current: | | | | | | | | | | | Federal | | $ | 21,901 | | $ | 20,990 | | $ | 1,510 | | State | | | (320) | | | 1,511 | | | 1,474 | | Foreign | | | — | | | (76) | | | 2,273 | | | | | 21,581 | | | 22,425 | | | 5,257 | | Deferred: | | | | | | | | | | | Federal | | | (19,301) | | | (18,844) | | | (17,226) | | State | | | (734) | | | (625) | | | (1,488) | | Foreign | | | (664) | | | (1,065) | | | (1,206) | | | | | (20,699) | | | (20,534) | | | (19,920) | | Total income tax expense (benefit) | | $ | 882 | | $ | 1,891 | | $ | (14,663) | |
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| Schedule of components of the Company's deferred income tax assets and liabilities |
Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands): | | | | | | | | | | April 30, | | | | 2025 | | 2024 | | Deferred income tax assets: | | | | | | | | Accrued expenses | | $ | 2,367 | | $ | 2,542 | | Stock based compensation | | | 3,728 | | | 3,391 | | Allowances, reserves, and other | | | — | | | 1,001 | | Outside basis difference | | | — | | | (33) | | Unrealized loss on securities | | | 3,787 | | | 3,588 | | Net operating loss and credit carry-forwards | | | 21,620 | | | 19,800 | | Acquisition related costs | | | 4,299 | | | — | | Capitalized research and development costs | | | 57,266 | | | 42,788 | | Reserve for inventory excess and obsolescence | | | 6,306 | | | 5,577 | | Lease liability | | | 8,226 | | | 7,628 | | Total deferred income tax assets | | | 107,599 | | | 86,282 | | Deferred income tax liabilities: | | | | | | | | Fixed asset basis | | | (3,160) | | | (3,516) | | Allowances, reserves, and other | | | (1,895) | | | — | | Outside basis difference | | | (38) | | | — | | Right-of-use asset | | | (7,645) | | | (7,053) | | Intangibles basis | | | (6,631) | | | (11,239) | | Total deferred income tax liabilities | | | (19,369) | | | (21,808) | | Valuation allowance | | | (26,770) | | | (23,835) | | Net deferred tax assets | | $ | 61,460 | | $ | 40,639 | |
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| Summary of activity related to gross unrecognized tax benefits |
The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended April 30, 2025 and 2024 (in thousands): | | | | | | | | | | April 30, | | | | 2025 | | 2024 | | Balance as of May 1 | | $ | 13,601 | | $ | 12,841 | | Increases related to prior year tax positions | | | 30 | | | — | | Decreases related to prior year tax positions | | | (18) | | | (59) | | Increases related to current year tax positions | | | 1,582 | | | 2,060 | | Decreases related to lapsing of statute of limitations | | | (1,766) | | | (1,241) | | Balance as of April 30 | | $ | 13,429 | | $ | 13,601 | |
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