STOCK-BASED COMPENSATION

3 Months Ended

May. 31, 2015

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,
	2015		2014
Cost of revenues	$	165	$	52
Research and development		164		135
Selling		200		113
General and administrative		791		520
	$	1,220	$	820

Changes in the Company's outstanding stock options during the three months ended May 31, 2015 were as follows (options in thousands):

			Weighted
	Number of		Average
	Options		Exercise Price
Outstanding at February 28, 2015	1,007		$	5.80
Granted	-			-
Exercised	(52	)		3.15
Forfeited or expired	-			-
Outstanding at May 31, 2015	955		$	5.94
Exercisable at May 31, 2015	807		$	4.56

Changes in the Company's outstanding restricted stock shares, performance stock units (“PSUs”) and restricted stock units (“RSUs”) during the three months ended May 31, 2015 were as follows (shares, PSUs and RSUs in thousands):

	Number of
	Restricted		Weighted
	Shares,		Average Grant
	PSUs and		Date Fair
	RSUs		Value
Outstanding at February 28, 2015	886		$	12.90
Granted	97			16.68
Vested	(4	)		10.30
Forfeited	(10	)		10.02
Outstanding at May 31, 2015	969		$	13.32

During the three months ended May 31, 2015, the Company retained 1,625 shares of the vested restricted stock and RSUs to satisfy the minimum required statutory amount of employee withholding taxes.

As of May 31, 2015, there was $10.3 million of total unrecognized stock-based compensation cost related to nonvested stock options, restricted stock, PSUs and RSUs that is expected to be recognized as an expense over a weighted-average remaining vesting period of 2.8 years.