Stockholders' Equity

12 Months Ended

Sep. 30, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

11. Stockholders' Equity:

In September 1997, the board of directors and stockholders approved the 1997 Key Employee Stock Option Plan (the "Employee Plan"), and, following amendments thereto, there has been reserved an aggregate of 1,125,000 shares of common stock for issuance thereunder. In November 1997, the board of directors and stockholders approved the Company's 1997 Non-Employee Director Plan (the "Director Plan") and following an amendment thereto, there has been reserved an aggregate of 150,000 shares of common stock for issuance thereunder. At September 30, 2011, the shares of common stock available for grant under the Employee Plan and Director Plan were 92,175 and 45,721, respectively.

Under the Employee Plan, the Company is authorized to grant nonqualified and incentive stock options to purchase common stock and restricted stock awards of common stock to key employees of the Company. Options have a term not to exceed ten years, with the exception of incentive stock options granted to employees owning ten percent or more of the outstanding shares of common stock, which have a term not to exceed five years. The exercise price of any option may not be less than the fair market value of the common stock on the date of grant. In the case of incentive stock options granted to an employee owning ten percent or more of the outstanding shares of common stock, the exercise price of such option may not be less than 110% of the fair market value of the common stock on the date of grant. Options vest over a four-year period commencing on the date of grant in 25% annual increments. Under the Employee Plan, the Company may issue shares of restricted stock to employees for no payment by the employee or for a payment below the fair market value on the date of grant. The restricted stock is subject to certain restrictions described in the Employee Plan, with no restrictions continuing for more than ten years from the date of the award.

The Company has not issued any shares of restricted stock under the Employee Plan since August 1, 2001. All issued shares of restricted stock are fully vested; thus there are no outstanding shares of restricted stock. The prior issuances by the Company of restricted stock were recorded at the fair value of the stock subject to those awards and were recorded as a component of stockholders' equity, with a credit to additional paid-in capital. The Company recorded compensation expense based on the vesting criteria of the individual awards. The Company will account for future issuances of restricted stock awards in accordance with applicable guidelines, which require that stock-based awards be measured and recognized at fair value.

The Company established the Director Plan pursuant to which options to purchase shares of common stock are granted annually to non-employee directors and pursuant to which a portion of the annual fees paid for the services of such non-employee directors is payable in shares of common stock based on the fair market value thereof at the date of grant. However, as disclosed in our Current Report on Form 8-K filed with the Securities and Exchange Commission, on February 21, 2007, the Board of Directors of the Company approved a new compensation structure for non-employee directors, as recommended by the Board of Director's Compensation Committee. Pursuant to an amendment to the Director Plan adopted at the same meeting, the annual options to non-employee directors will no longer be granted. Options granted under the Director Plan prior to the adoption of this amendment have a term of ten years. The exercise price of each option granted is the fair market value of the common stock on the date of grant. Options vest over a one-year period commencing on the date of grant.

Effective November 5, 1999, the board of directors approved the OYO Geospace Corporation 1999 Broad-Based Option Plan (the "Broad-Based Plan") and reserved an aggregate of 50,000 shares for issuance thereunder. Under the Broad-Based Plan, the Company is authorized to issue to all employees (except executive officers and employee directors) nonqualified stock options to purchase common stock of the Company. These options have a term not to exceed ten years. The exercise price of any broad-based option may not be less than the fair market value of the common stock on the date of grant. These options vest over a one-year period commencing on the date of grant. There were 19,000 shares available for grant under this plan at September 30, 2011.

A summary of the activity with respect to stock options is as follows:

	Shares			Weighted Average Exercise Price
Outstanding at September 30, 2008		380,750			12.81
Granted		146,000			17.56
Exercised		(58,400	)		14.39
Forfeited		(100	)		11.25
Expired		—			—
Outstanding at September 30, 2009		468,250			14.10
Granted		63,000			50.08
Exercised		(122,450	)		17.85
Forfeited		(100	)		11.25
Expired		—			—
Outstanding at September 30, 2010		408,700			18.53
Granted		—			—
Exercised		(233,900	)		11.79
Forfeited		(2,000	)		17.56
Expired		—			—
Outstanding at September 30, 2011		172,800			21.35

The number of stock options vested during fiscal years 2011, 2010 and 2009 were 51,250, 37,750 and 2,000, respectively. The fair values of stock options vested during fiscal years 2011, 2010 and 2009 were $0.7 million, $0.3 million and $29,000, respectively.

The following table summarizes information about stock options outstanding and exercisable at September 30, 2011:

	Options Outstanding					Options Exercisable
Range of Exercise Prices	Shares		Weighted Average Remaining Term (in years)	Weighted Average Exercise Price		Shares		Weighted Average Remaining Term (in years)	Weighted Average Exercise Price
$ 6.81 to $13.49		14,650	1.5	$	8.43		14,650	1.5	$	8.43
$13.50 to $19.99		100,650	7.2		17.56		29,650	7.1		17.58
$20.00 to $53.95		57,500	8.8		50.20		10,250	8.9		50.75
		172,800	7.3		27.65		54,550	5.9		21.35

As of September 30, 2011 total unvested compensation expense associated with stock options amounted to $1.5 million and will be recognized over the next four fiscal years.