Stockholder's Equity

9 Months Ended

Jun. 30, 2011

Stockholder's Equity

Stockholder's Equity

7. STOCKHOLDERS' EQUITY

The 2006 Equity Incentive Plan (as amended, the "2006 Plan") became effective on May 12, 2006. The 2006 Plan provides for grants of both stock options and common stock, including restricted stock and performance-based restricted stock. We have approximately 1.3 million shares of common stock authorized for issuance under the 2006 Plan.

Treasury Stock

During the nine months ended June 30, 2011, we repurchased 18,846 shares of common stock from our employees to satisfy minimum tax withholding requirements upon the vesting of restricted stock issued under the 2006 Plan, 204,000 shares of restricted stock were issued from treasury stock to employees and 130,258 unvested shares of restricted stock were forfeited by former employees and returned to treasury stock. Additionally, 9,616 phantom stock units granted to members of the Board of Directors vested, triggering an issuance of 9,616 unrestricted shares from the balance held in treasury shares.

During the nine months ended June 30, 2010, we repurchased 27,622 shares of common stock from our employees to satisfy minimum tax withholding requirements upon the vesting of restricted stock issued under the 2006 Plan, 12,886 were issued from treasury stock to employees and 38,000 unvested shares of restricted stock were forfeited by former employees and returned to treasury stock.

Restricted Stock

We granted 204,000 shares of restricted stock to employees during the nine months ended June 30, 2011, of which 8,900 have vested and 53,100 have been forfeited as of June 30, 2011. These restricted shares, which were granted at a prices ranging from $3.49 to $3.51 per share, will vest on an annual pro-rata basis each December, from 2011 through 2013.

During the nine months ended June 30, 2011 and 2010, we recognized $566 and $977, respectively, in compensation expense related to all restricted stock awards. As of June 30, 2011, the unamortized compensation cost related to outstanding unvested restricted stock was $622. We expect to recognize $99 in compensation expense related to these awards during the remaining three months of our 2011 fiscal year, and $523 thereafter.

All the restricted shares granted under the 2006 Plan participate in dividends, if any, issued to common shareholders.

Stock Options

Our determination of the fair value of share-based payment awards on the date of grant using a binomial option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards, the risk-free rate of return, and actual and projected employee stock option exercise behaviors.

During the nine months ended June 30, 2011 and 2010, we granted no stock options, and 58,500 options were forfeited. During the nine months ended June 30, 2011 and 2010, we recognized $17 and $94, respectively, in compensation expense related to previously granted stock options.

The following table summarizes activity regarding our stock option and incentive compensation plans:

				Weighted Average
	Shares			Exercise Price
Outstanding, September 30, 2010		158,500		$	17
Options granted		—			—
Exercised		—			—
Expired		—			—
Forfeited		(58,500	)		—
Outstanding, June 30, 2011		100,000		$	17
Exercisable, June 30, 2011		100,000		$	17

The following table summarizes all options outstanding and exercisable at June 30, 2011:

			Remaining
	Outstanding as of		Contractual Life		Weighted-Average		Exercisable as of		Weighted-Average
Range of Exercise Prices	June 30, 2011		in Years		Exercise Price		June 30, 2011		Exercise Price
17.36		100,000		—	$	17		100,000	$	17

Upon exercise of stock options, it is our policy to first issue shares from treasury stock, then to issue new shares. Unexercised options expire at September 29, 2011.