1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

May 31, 2014

Organization And Summary Of Significant Accounting Policies Tables

Financial assets and liabilities measured at fair value on a recurring basis

    The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2014 (in thousands):

	Balance as of
	May 31, 2014		Level 1		Level 2		Level 3
Money market funds	$	477	$	477	$	--	$	--
Certificate of Deposit		50		--		50		--
Assets	$	527	$	477	$	50	$	--
Liabilities	$	--	$	--	$	--	$	--

    The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2013 (in thousands):

	Balance as of
	May 31, 2013		Level 1		Level 2		Level 3
Money market funds	$	102	$	102	$	--	$	--
Certificate of Deposit		50		--		50		--
Assets	$	152	$	102	$	50	$	--
Liabilities	$	--	$	--	$	--	$	--

Useful life for property and equipment

The ranges of estimated useful lives are generally as follows:

Furniture and fixtures	2 to 6 years
Machinery and equipment	3 to 6 years
Test equipment	4 to 6 years

Compensation costs related to the Company's stock-based compensation

The following table summarizes compensation costs related to the Company’s stock-based compensation for the years ended May 31, 2014, 2013 and 2012, respectively (in thousands, except per share data):

	Year Ended May 31,
	2014		2013		2012
Stock-based compensation in the form of employee
stock options and ESPP shares, included in:
Cost of sales	$	43	$	36	$	87
Selling, general and administrative		643		446		430
Research and development		167		119		192
Net effect on net income (loss)	$	853	$	601	$	709
Effect on net income (loss) per share:
Basic.	$	0.08	$	0.06	$	0.08
Diluted	$	0.07	$	0.06	$	0.08

Fair value assumptions for Option Valuation Model

    Fair Value.  The fair values of the Company’s stock options granted to employees shares in fiscal 2014, 2013 and 2012 were estimated using the following weighted average assumptions in the Black-Scholes option valuation method:

	Year Ended May 31,
	2014			2013			2012
Option Plan Shares
Expected Term (in years)		4			5			5
Volatility		0.95			0.91			0.84
Expected Dividend	$	0.00		$	0.00		$	0.00
Risk-free Interest Rates		1.39	%		0.72	%		1.12	%
Weighted Average Grant Date Fair Value	$	1.09		$	0.78		$	0.60

Fair value assumption of the ESPP Purchase Rights

     The fair value of our ESPP purchase rights for the fiscal 2014, 2013 and 2012 was estimated using the following weighted-average assumptions:

	Year End May 31,
	2014			2013			2012
Employee Stock Purchase Plan Shares
Expected Term (in years)		0.5 - 2.0			0.5 - 2.0			0.5 - 2.0
Volatility		0.86 – 1.00			0.45 – 1.05			0.79 – 0.95
Expected Dividend	$	0.00		$	0.00		$	0.00
Risk-free Interest Rates		0.04%–0.44	%		0.11%–0.23	%		0.06%–1.05	%
Weighted Average Grant Date Fair Value	$	1.34		$	0.54		$	0.40

Basic and diluted EPS

    A reconciliation of the numerator and denominator of basic and diluted EPS is provided as follows (in thousands, except per share amounts):

	Year Ended May 31,
	2014		2013			2012
Numerator: Net income (loss)	$	422	$	(3,419	)	$	(3,390	)
Denominator for basic net income (loss) per share:
Weighted-average shares outstanding		10,877		9,549			9,016
Shares used in basic net income (loss) per share calculation		10,877		9,549			9,016
Effect of dilutive securities		1,012		--			--
Denominator for diluted net income (loss) per share		11,889		9,549			9,016
Basic net income (loss) per share	$	0.04	$	(0.36	)	$	(0.38	)
Diluted net income (loss) per share	$	0.04	$	(0.36	)	$	(0.38	)