Stock Based Compensation

3 Months Ended

Apr. 30, 2011

Stock Based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Stock-Based Compensation

Compensation is recognized for all stock-based compensation arrangements by the Company. Stock-based compensation expense in the first quarter of fiscal 2011 and 2010 related to stock option awards was $542,000 and $759,000, respectively. The Company has not recorded any income tax benefit from the exercise of stock options due to the uncertainty of realizing income tax benefits in the future.

As of April 30, 2011, the Company had two active omnibus stock plans for which stock awards can be currently granted: the 2004 Omnibus Stock Plan (as amended and restated in fiscal 2006) that provides for the issuance of up to 4,000,000 shares of the Company's common stock; and the 2001 Omnibus Stock Plan that provides for the issuance of up to 3,000,000 shares of the Company's stock. These plans are administered by the human resources and compensation committee of the board of directors and provide for awards for employees, directors and consultants. All employees and directors of the Company and its affiliates are eligible to receive awards under the plans. The types of awards that may be granted under these plans include restricted and unrestricted stock, incentive and nonstatutory stock options, stock appreciation rights, performance units, and other stock-based awards. Incentive stock options may be granted to employees at such exercise prices as the human resources and compensation committee may determine but not less than 100% of the fair market value of the underlying stock as of the date of grant. No incentive stock option may be granted more than ten years after the effective date of the respective plan's inception or be exercisable more than ten years after the date of grant. Options granted to outside directors are nonstatutory stock options with an exercise price equal to 100% of the fair market value of the underlying stock as of the date of grant. Options granted under these plans are exercisable and generally vest over three years in the case of employee stock options and vest immediately on the date of grant in the case of director options, and generally have contractual terms of either five years from the date of vesting or ten years from the date of grant.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses assumptions noted in the following table. Expected volatilities are based on the historical volatility of the Company's stock. Expected term is calculated using the simplified method taking into consideration the option's contractual life and vesting terms. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yields were not used in the fair value computations as the Company has never declared or paid dividends on its common stock and currently intends to retain earnings for use in operations.

	Fiscal 2011		Fiscal 2010
Expected volatility	88	%	80% — 88%
Expected term (in years)	6 years		6 years
Risk-free interest rate	2.9	%	1.9% — 3.3%

A summary of the status of the Company’s stock option activity as of April 30, 2011 and changes during the three months then ended is as follows:

	2004 Incentive Stock Option Plan		Weighted Average Exercise Price		2001 Incentive Stock Option Plan		Weighted Average Exercise Price		Other Non- Qualified Stock Options	Weighted Average Exercise Price
Balance outstanding, January 29, 2011	2,374,000		$	5.72	1,746,000		$	5.97	525,000	$	3.58
Granted	—		—		9,000		6.72		—	—
Exercised	(17,000	)	1.48		(73,000	)	3.27		—	—
Forfeited or canceled	(20,000	)	12.64		(175,000	)	10.40		—	—
Balance outstanding, April 30, 2011	2,337,000		$	5.70	1,507,000		$	5.59	525,000	$	3.58
Options exercisable at April 30, 2011	1,771,000		$	6.45	1,018,000		$	6.45	—	$	—

The following table summarizes information regarding stock options outstanding at April 30, 2011:

Option Type	Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value		Vested or Expected to Vest	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
2004 Incentive:	2,337,000	$	5.70	7.0	$	4,435,000	2,281,000	$	5.76	7.0	$	4,260,000
2001 Incentive:	1,507,000	$	5.59	7.2	$	2,966,000	1,455,000	$	5.66	7.0	$	2,822,000
Non-Qualified:	525,000	$	3.58	9.0	$	1,471,000	473,000	$	3.58	9.0	$	1,323,000

The weighted average grant-date fair value of options granted in the first three months of fiscal 2011 and 2010 was $4.99 and $2.81, respectively. The total intrinsic value of options exercised during the first three months of fiscal 2011 and 2010 was $377,000 and $38,000, respectively. As of April 30, 2011, total unrecognized compensation cost related to stock options was $1,928,000 and is expected to be recognized over a weighted average period of approximately 0.8 years.