STOCK-BASED COMPENSATION

9 Months Ended

Nov. 30, 2013

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

NOTE 8 - STOCK-BASED COMPENSATION

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

	Three Months Ended				Nine Months Ended
	November 30,				November 30,
	2013		2012		2013		2012
Cost of revenues	$	52	$	39	$	133	$	98
Research and development		148		121		380		330
Selling		112		51		270		198
General and administrative		496		409		1,346		1,666
	$	808	$	620	$	2,129	$	2,292

       Changes in the Company's outstanding stock options during the nine months ended November 30, 2013 were as follows (options in thousands):

			Weighted
	Number of		Average
	Options		Exercise Price
Outstanding at February 28, 2013	1,656		$	5.53
Granted	65			15.14
Exercised	(333	)		8.28
Forfeited or expired	(7	)		4.53
Outstanding at November 30, 2013	1,381		$	5.32
Exercisable at November 30, 2013	1,165		$	4.86

       During the nine months ended November 30, 2013, upon the net share settlement exercise of 54,899 options held by four directors of the Company, the Company retained 33,222 shares to cover the aggregate option exercise price.

       Changes in the Company's unvested restricted stock shares and restricted stock units ("RSUs") during the nine months ended November 30, 2013 were as follows (restricted shares and RSUs in thousands):

	Number of		Weighted
	Restricted		Average Grant
	Shares		Date Fair
	and RSUs		Value
Outstanding at February 28, 2013	1,338		$	4.40
Granted	290			14.79
Vested	(589	)		3.83
Forfeited	(13	)		5.78
Outstanding at November 30, 2013	1,026		$	7.65

       During the nine months ended November 30, 2013, the Company retained 202,286 shares of the vested restricted stock and RSUs to satisfy the employees' minimum required statutory amount of withholding taxes.

       As of November 30, 2013, there was $7.8 million of total unrecognized stock-based compensation cost related to nonvested stock options, restricted stock and RSUs that is expected to be recognized as an expense over a weighted-average remaining vesting period of 3.2 years.