Stock-Based Compensation

9 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 6 - Stock-Based Compensation

The employee stock-based compensation expense for the three and nine months ended December 31, 2011 was $821,000 and $2,243,000, respectively, compared to $795,000 and $2,372,000 for the same periods of the prior fiscal year.

During the three and nine months ended December 31, 2011, the Company granted options with an estimated total grant date fair value of $348,000 and $2,924,000, respectively. For the same periods last fiscal year, the Company granted options with an estimated grant date fair value of $79,000 and $2,517,000, respectively. As of December 31, 2011, the unrecorded stock-based compensation related to stock options was $6,316,000 (net of estimated forfeitures) and will be recognized over an estimated weighted average amortization period of approximately 2 years.

The Company's shareholders approved the adoption of the 2001 Stock Option Plan (the "2001 Plan") and the reservation of 2,000,000 shares of common stock for issuance under 2001 Plan at the August 17, 2001 annual meeting of shareholders. Options granted under the 2001 Plan were granted at the fair market value of the Company's common stock on the date of grant and generally expired seven years from the date of grant or thirty days after termination of service, whichever occurs first.  The options generally were exercisable beginning one year from date of grant and generally vest ratably over a five-year period. On August 24, 2006, the Company's board of directors approved a change in grant policy of the 2001 Plan to only grant non-statutory stock options to better align the Company's compensation plan to employee incentives and to Company objectives. On August 17, 2007, the Company's board of directors approved that all future stock option grants would have a ten-year term, which is within the guidelines of the Company's 2001 Plan, subject to earlier expiration thirty days after termination of service. As of August 14, 2009, no further options may be granted under the 2001 Plan.

The Company's shareholders approved the adoption of the 2009 Equity Incentive Plan (the "2009 Plan") at the August 14, 2009 annual meeting for shareholders. Under the 2009 Plan, the total number of shares of Company common stock reserved for issuance consists of 1,000,000 shares plus (1) the 159,509 shares which remained authorized for issuance under the 2001 Plan but which were not subject to outstanding stock awards as of August 14, 2009, and (2) those of the 1,440,400 shares, subject to stock awards outstanding under the 2001 Plan as of August 14, 2009, that terminate prior to exercise and would otherwise be returned to the share reserves under the 2001 Plan, with the total shares in addition to the 1,000,000 shares thus being up to a maximum of 1,599,909 shares. The 2009 Plan allows the Company to continue its prior option practices under the 2001 Plan to grant non-statutory options to key employees with an exercise price equal to the fair market value of the Company's stock on the date of grant. The Company's options typically have a term of ten years and vest in 20% installments on each of the first five anniversaries of the date of grant. The 2009 Plan also provides the Company with the flexibility in designing equity incentives, including restricted stock awards, stock appreciation rights, restricted stock unit awards, performance stock awards, and performance cash awards.

The following table summarizes the activities under the 2001 and 2009 Plans for the nine months ended December 31, 2011:

				Options Outstanding
	Available for Grant			Number of Shares			Weighted Average Exercise Price
Balance, April 2, 2011		977,849			1,454,622		$	27.57
Granted		(370,580	)		370,580			20.10
Exercised		-			(71,580	)		17.06
Canceled		53,360			(53,360	)		27.35
Balance, December 31, 2011		660,629			1,700,262		$	26.39

The weighted average fair value of options, as determined under the authoritative guidance for stock compensation, granted under the 2009 Plan during the three and nine months ended December 31, 2011 were $6.70 and $7.89 per share, respectively, compared to $10.55 and $10.13 per share during the same periods of the prior fiscal year.  The total intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the option on the date of the exercise) during the three and nine months ended December 31, 2011 was $2,000 and $170,000 respectively.  During the three and nine months ended December 31, 2011, the amounts of cash received from employees as a result of employee stock option exercises were $22,000 and $1,221,000, respectively.

The options outstanding and exercisable at December 31, 2011, under the 2001 and 2009 Plans are in the following exercise price ranges:

Options Outstanding											Options Exercisable
Range of Exercise Prices					Number Outstanding		Weighted-Average Remaining Contractual Life (Years)		Weighted-Average Exercise Price		Number Outstanding		Weighted-Average Exercise Price
$	17.39	-	$	19.99		281,020		8.87	$	19.17		31,420	$	18.15
	20.00	-		24.99		626,102		7.79		21.44		230,962		21.05
	25.00	-		29.99		313,380		6.82		27.03		164,596		27.13
	30.00	-		34.99		236,060		2.95		33.77		217,660		33.76
	35.00	-		39.99		90,800		5.46		35.83		76,640		35.83
	40.00	-		44.99		134,900		1.83		40.90		119,280		40.88
	45.00	-		46.92		18,000		1.92		46.92		18,000		46.92
$	17.39	-	$	46.92		1,700,262		6.46	$	26.39		858,558	$	29.95

The total intrinsic value of options outstanding and options exercisable as of December 31, 2011 were $80,000 and $38,000, respectively.

2000 Employee Stock Purchase Plan ("ESPP").Under the ESPP, eligible employees may elect to withhold up to 20% of their cash compensation to purchase shares of the Company's common stock at a price equal to 95% of the market value of the stock at the time of purchase, which is at the end of the six-month offering period.  An eligible employee may purchase no more than 500 shares during any six-month offering period. For the three and nine months ended December 31, 2011, the amounts of cash received from employees as a result of ESPP purchases were $70,000 and $159,000, respectively, compared to $85,000 and $178,000 for the same periods of the prior fiscal year.