STOCK-BASED COMPENSATION

9 Months Ended

Nov. 30, 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				Nine Months Ended
	November 30,				November 30,
	2011		2010		2011		2010
Cost of revenues	$	30	$	40	$	70	$	113
Research and development		107		93		283		246
Selling		55		55		148		155
General and administrative		446		367		1,236		1,045
	$	638	$	555	$	1,737	$	1,559

     Changes in the Company's outstanding stock options during the nine months ended November 30, 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	(8	)		1.68
Forfeited or expired	(92	)		4.98
Outstanding at November 30, 2011	2,172		$	4.77
Exercisable at November 30, 2011	1,586		$	5.63

     Changes in the Company's unvested restricted stock shares and restricted stock units (“RSUs”) during the nine months ended November 30, 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	757			3.58
Vested	(817	)		2.21
Forfeited	(56	)		1.93
Outstanding at November 30, 2011	1,929		$	2.71

     During the nine months ended November 30, 2011, the Company retained 279,000 of the 817,000 vested restricted stock shares and RSUs to cover the minimum statutory required amount of employee withholding taxes.

As of November 30, 2011, the total unrecognized stock-based compensation cost related to nonvested stock options, restricted stock and RSUs amounted to $5.0 million. This cost is expected to be recognized as an expense over a weighted-average remaining vesting period of 2.8 years.