Quik’s net income for the quarter rose 16% to $12.5 million compared to $10.7 million in the pcp (prior calendar period- same quarter the previous year). But the provision for income taxes fell from $9 million to $2.5 million or from 45.6% to 16.8%. Here’s what Quik says in their 10Q about why that happened.
“This decrease resulted primarily from a shift in the mix of income before tax between tax jurisdictions. As a result of our valuation allowance against deferred tax assets in the United States, no tax provision was recognized for income generated in the United States during the three months ended July 31, 2012.”