STOCK-BASED COMPENSATION

6 Months Ended

Aug. 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				Six Months Ended
	August 31,				August 31,
	2015		2014		2015		2014
Cost of revenues	$	54	$	58	$	119	$	110
Research and development		198		148		362		283
Selling		295		126		495		239
General and administrative		842		604		1,633		1,124
	$	1,389	$	936	$	2,609	$	1,756

Changes in the Company's outstanding stock options during the six months ended August 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	82			17.54
Exercised	(127	)		3.83
Forfeited or expired	(1	)		1.80
Outstanding at August 31, 2015	961		$	7.06
Exercisable at August 31, 2015	789		$	5.07

Changes in the Company's outstanding restricted stock shares, performance stock units (“PSUs”) and restricted stock units (“RSUs”) during the six months ended August 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	483			17.68
Vested	(383	)		9.44
Forfeited	(26	)		13.80
Outstanding at August 31, 2015	960		$	16.66

During the six months ended August 31, 2015, the Company retained 139,385 shares of the vested restricted stock and RSUs to satisfy the minimum required statutory amount of employee withholding taxes.

As of August 31, 2015, there was $16.4 million of total unrecognized stock-based compensation cost related to outstanding nonvested equity awards that is expected to be recognized as expense over a weighted-average remaining vesting period of 3.0 years.