STOCK-BASED COMPENSATION

3 Months Ended

May 31, 2014

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
	May 31,
	2014		2013
Cost of revenues	$	52	$	39
Research and development		135		110
Selling		113		71
General and administrative		520		411
	$	820	$	631

     Changes in the Company's outstanding stock options during the three months ended May 31, 2014 were as follows (options in thousands):

			Weighted
	Number of		Average
	Options		Exercise Price
Outstanding at February 28, 2014	1,093		$	5.04
Granted	-			-
Exercised	(102	)		4.90
Forfeited or expired	(1	)		7.53
Outstanding at May 31, 2014	990		$	5.05
Exercisable at May 31, 2014	804		$	4.39

Changes in the Company's outstanding restricted stock shares and restricted stock units ("RSUs") during the three months ended May 31, 2014 were as follows (restricted shares and RSUs in thousands):

	Number of		Weighted
	Restricted		Average Grant
	Shares and		Date Fair
	RSUs		Value
Outstanding at February 28, 2014	1,024		$	8.02
Granted	5			15.96
Vested	(9	)		7.83
Forfeited	(8	)		11.35
Outstanding at May 31, 2014	1,012		$	8.04

     During the three months ended May 31, 2014, the Company retained 3,346 shares of the vested restricted stock and RSUs to satisfy the minimum required statutory amount of employee withholding taxes.

As of May 31, 2014, there was $6.4 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 2.7 years.