7. INCOME TAXES (Tables)

12 Months Ended

May 31, 2013

Income Tax Disclosure [Abstract]

Domestic and foreign components of loss before income tax expense (benefit)

In Thousands, unless otherwise specified

	Year Ended May 31,
	2013	2012	2011
Domestic.........................	$(3,392)	$(3,590)	$(4,424)
Foreign..........................	3	186	1,002
	$(3,389)	$(3,404)	$(3,422)

Income tax (expense) benefit

In Thousands, unless otherwise specified

	Year Ended May 31,
	2013	2012	2011
Federal income taxes:
Current.........................	--	--	--
Deferred........................	--	--	--
State income taxes:
Current.........................	$(21)	$(12)	$(30)
Deferred........................	--	--	--
Foreign income taxes:
Current.........................	(9)	27	79
Deferred........................	--	--	--
	$ (30)	$ 15	$ 49

Income tax reconciliation

In Thousands, unless otherwise specified

	Year Ended May 31,
	2013	2012	2011
U.S. federal statutory tax rate...	34.0 %	34.0 %	34.0 %
State taxes, net of federal tax
effect..........................	(0.4)	(0.2)	(0.6)
Foreign rate differential.........	0.2	2.9	12.4
Stock-based compensation..........	(4.4)	(6.0)	(8.5)
Research and development credit...	3.0	0.1	--
Change in valuation allowance.....	(33.0)	(30.2)	(35.7)
Other.............................	(0.3)	(0.2)	(0.2)
Effective tax rate................	(0.9)%	0.4 %	1.4 %

Net deferred tax assets

In Thousands, unless otherwise specified

	Year Ended May 31,
	2013	2012
Net operating losses.....................	$11,903	$11,106
Credit carryforwards.....................	4,028	3,696
Inventory reserves.......................	2,667	2,686
Reserves and accruals....................	2,913	2,957
Other....................................	679	665
	22,190	21,110
Less: Valuation allowance...................	(22,190)	(21,110)
Net deferred tax assets.....................	$    --	$    --

Unrecognized tax benefits

In Thousands, unless otherwise specified

Beginning balance as of May 31, 2010.....................	$1,181
Decreases related to prior year tax positions............	--
Decreases related to lapse of statute of limitations.....	(88)
Balance at May 31, 2011..................................	$1,093
Decreases related to prior year tax positions............	--
Decreases related to lapse of statute of limitations.....	(71)
Balance at May 31, 2012..................................	$1,022
Decreases related to prior year tax positions............	--
Decreases related to lapse of statute of limitations.....	(15)
Balance at May 31, 2013..................................	$1,007