Stock-Based Compensation (Tables)

6 Months Ended

Jan. 31, 2014

Stock-Based Compensation

Schedule of the income statement components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Income

	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2014			2013			2014			2013
Cost of sales	$	109,000		$	37,000		$	171,000		$	92,000
Operating expenses:
Selling	191,000			82,000			301,000			181,000
General and administrative	1,090,000			802,000			2,054,000			1,594,000
Research and development	18,000			8,000			30,000			20,000
Total operating expenses	1,299,000			892,000			2,385,000			1,795,000
Stock-based compensation before income taxes	1,408,000			929,000			2,556,000			1,887,000
Income tax benefits	(493,000		)	(336,000		)	(905,000		)	(676,000		)
Total stock-based compensation expense, net of tax	$	915,000		$	593,000		$	1,651,000		$	1,211,000

Summary of nonvested stock award activity

			Weighted
	Number of		Average
	Shares		Fair Value
Nonvested stock awards at July 31, 2013	605,767		$	11.96
Granted	247,136		31.84
Canceled	(4,620	)	9.02
Vested	(299,611	)	10.51
Nonvested stock awards at January 31, 2014	548,672		$	21.73

Weighted-average assumptions used to estimate fair value of stock options granted using the Black-Scholes option valuation model

Weighted-Average
Black-Scholes Option	Six Months Ended		Six Months Ended
Valuation Assumptions	January 31, 2014		January 31, 2013
Dividend yield	0.28	%	0.37	%
Expected volatility (1)	42.70	%	50.90	%
Risk-free interest rate (2)	1.44	%	0.67	%
Expected lives (in years) (3)	5.00		5.00

(1) Volatility was based on historical closing prices of our common stock.

(2) The U.S. Treasury rate on the expected life at the date of grant.

(3) Based on historical exercise behavior.

Summary of stock option activity

			Weighted
	Number of		Average
	Shares		Exercise Price
Outstanding at July 31, 2013	403,831		$	8.25
Granted	30,000		31.81
Exercised	(92,106	)	6.69
Outstanding at January 31, 2014	341,725		$	10.74
Exercisable at July 31, 2013	351,331		$	6.94
Exercisable at January 31, 2014	276,725		$	7.66