STOCK-BASED COMPENSATION

6 Months Ended

Aug. 31, 2011

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 8 - STOCK-BASED COMPENSATION

Stock-based compensation expense is included in the following captions of the unaudited consolidated statements of operations (in thousands):

	Three Months Ended					Six Months Ended
	August 31,					August 31,
	2011			2010		2011		2010
Cost of revenues	$	(3	)	$	34	$	40	$	73
Research and development		94			74		176		153
Selling		48			60		93		100
General and administrative		428			313		790		678
	$	567		$	481	$	1,099	$	1,004

Changes in the Company's outstanding stock options during the six months ended August 31, 2011 were as follows (options in thousands):

			Weighted
	Number of		Average
	Options		Option Price
Outstanding at February 28, 2011	2,108		$	4.87
Granted	164			3.42
Exercised	(6	)		1.63
Forfeited or expired	(92	)		4.98
Outstanding at August 31, 2011	2,174		$	4.77
Exercisable at August 31, 2011	1,588		$	5.63

Changes in the Company's unvested restricted stock shares and RSUs during the six months ended August 31, 2011 were as follows (shares and RSUs in thousands):

	Number of		Weighted
	Restricted		Average Grant
	Shares and		Date Fair
	RSUs		Value
Outstanding at February 28, 2011	2,045		$	2.16
Granted	752			3.59
Vested	(804	)		2.22
Forfeited	(53	)		1.91
Outstanding at August 31, 2011	1,940		$	2.70

     During the six months ended August 31, 2011, the Company retained 274,000 of the 804,000 vested restricted stock shares and RSUs to cover the minimum statutory required amount of employee withholding taxes.

As of August 31, 2011, the total unrecognized stock-based compensation cost related to nonvested stock options, restricted stock and RSUs amounted to $5.7 million. This cost is expected to be recognized as an expense over a weighted-average remaining vesting period of 3.0 years.