Shareholders' Equity

12 Months Ended

Jan. 28, 2012

Shareholder's Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Shareholder's Equity

Common Stock

The Company currently has authorized 100,000,000 shares of undesignated capital stock, of which approximately 48,560,000 shares were issued and outstanding as common stock as of January 28, 2012. The board of directors may establish new classes and series of capital stock by resolution without shareholder approval; however, approval of GE Equity is required in certain circumstances.

Dividends

The Company has never declared or paid any dividends with respect to its capital stock. Under the terms of the amended and restated shareholder agreement between the Company and GE Equity, the Company is prohibited from paying dividends on its common stock without GE Equity’s prior consent. The Company is further restricted from paying dividends on its stock by its bank credit agreement.

Warrants

As of January 28, 2012, the Company had outstanding warrants to purchase 6,000,000 shares of the Company’s common stock at an exercise price of $0.75 per share issued to GE Equity. The warrants are fully vested and expire ten years from date of grant. The warrants were issued in connection with the issuance of the Company’s Series B Redeemable Preferred Stock in February 2009. In addition, the Company also has outstanding warrants to purchase 7,372 shares of the Company’s stock at an exercise price of $15.74 per share issued to NBCU. These warrants are fully vested and expire in November 2012.

Stock-Based Compensation

Compensation is recognized for all stock-based compensation arrangements by the Company. Stock-based compensation expense for fiscal 2011, fiscal 2010 and fiscal 2009 related to stock option awards was $2,647,000, $3,274,000 and $2,752,000, 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 January 28, 2012, the Company had two active omnibus stock plans for which stock awards can be currently granted: the 2011 Omnibus Incentive Plan that provides for the issuance of up to 3,000,000 shares of the Company's stock and 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. The 2001 Omnibus Stock Plan expired on June 21, 2011. 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 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 recent 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 Company uses the simplified method in estimating its expected option term because it believes that historical exercise data cannot be accurately relied upon at this time to provide a reasonable basis for estimating an expected term due to the extreme volatility of its stock price and the resulting unpredictability of its stock option exercises. 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	Fiscal 2009
Expected volatility	88%-96%	80%-88%	66%-78%
Expected term (in years)	6 years	6 years	6 years
Risk-free interest rate	1.3%-2.7%	1.9%-3.3%	2.3%-3.4%

A summary of the status of the Company’s stock option activity as of January 28, 2012 and changes during the year then ended is as follows:

	2011 Incentive Stock Option Plan	Weighted Average Exercise Price		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	160,000	$	2.25	285,000		$	7.52	—		$	—	150,000		$	6.44
Exercised	—	$	—	(268,000	)	$	4.31	(283,000	)	$	2.25	(8,000	)	$	2.02
Forfeited or canceled	—	$	—	(46,000	)	$	9.48	(237,000	)	$	9.52	(17,000	)	$	2.02
Balance outstanding,
January 28, 2012	160,000	$	2.25	2,345,000		$	6.03	1,226,000		$	6.15	650,000		$	4.30
Options exercisable at:
January 28, 2012	—	$	—	2,015,000		$	6.18	1,029,000		$	6.35	143,000		$	3.60
January 29, 2011	—	$	—	1,735,000		$	6.65	1,192,000		$	7.03	—		$	—
January 30, 2010	—	$	—	1,342,000		$	8.79	969,000		$	8.32	—		$	—

The following table summarizes information regarding stock options at January 28, 2012:

	Options	Weighted Average Exercise		Weighted Average Remaining Contractual	Aggregate Intrinsic		Vested or Expected to	Weighted Average Exercise		Weighted Average Remaining Contractual	Aggregate Intrinsic
Option Type	Outstanding	Price		Life (Years)	Value		Vest	Price		Life (Years)	Value
2011 Incentive:	160,000	$	2.25	9.9	$	—	144,000	$	2.25	9.9	$	—
2004 Incentive:	2,345,000	$	6.03	6.7	$	188,000	2,280,000	$	6.06	6.7	$	182,000
2001 Incentive:	1,226,000	$	6.15	6.4	$	—	1,204,000	$	6.19	6.3	$	—
Other Non-Qualified Incentive:	650,000	$	4.30	8.5	$	—	599,000	$	4.28	8.5	$	—

The weighted average grant date fair value of options granted in fiscal 2011, fiscal 2010 and fiscal 2009 was $4.31, $2.26 and $1.17, respectively. The total intrinsic value of options exercised during fiscal 2011, fiscal 2010 and fiscal 2009 was $1,856,000, $355,000 and $898,000, respectively. As of January 28, 2012, total unrecognized compensation cost related to stock options was $2,093,000 and is expected to be recognized over a weighted average period of approximately 1.1 years.

Stock Option Tax Benefit

The exercise of certain stock options granted under the Company’s stock option plans give rise to compensation, which is includible in the taxable income of the applicable employees and deductible by the Company for federal and state income tax purposes. Such compensation results from increases in the fair market value of the Company’s common stock subsequent to the date of grant of the applicable exercised stock options and these increases are not recognized as an expense for financial accounting purposes, as the options were originally granted at the fair market value of the Company’s common stock on the date of grant. The related tax benefits will be recorded as additional paid-in capital if and when realized, and totaled $691,000, $121,000 and $332,000 in fiscal 2011, fiscal 2010 and fiscal 2009, respectively. The Company has not recorded any income tax benefit from the exercise of stock options through paid in capital in these fiscal years, due to the uncertainty of realizing income tax benefits in the future. These benefits are expected to be recorded in the applicable future periods.

Restricted Stock

Compensation expense recorded in fiscal 2011, fiscal 2010 and fiscal 2009 relating to restricted stock grants was $2,360,000, $76,000 and $453,000, respectively. As of January 28, 2012, there was $2,001,000 of total unrecognized compensation cost related to non-vested restricted stock granted. That cost is expected to be recognized over a weighted average period of 1.0 years. The total fair value of restricted stock vested during fiscal 2011, fiscal 2010 and fiscal 2009 was $316,000, $68,000 and $306,000, respectively. On March 31, 2011, the Company granted a total of 522,000 shares of restricted stock to employees in lieu of an annual cash bonus for fiscal 2010. The restricted stock vests in two equal annual installments beginning March 31, 2012 and ending March 31, 2013. The aggregate market value of the restricted stock at the date of the award was $3,323,000 and is being amortized as compensation expense over the one and two-year vesting periods. On June 15, 2011, the Company granted a total of 50,000 shares of restricted stock to seven non-management board members as part of the Company's annual director compensation program. The restricted stock vests on the day immediately preceding the next annual meeting of shareholders following the date of grant. The aggregate market value of the restricted stock at the date of the award was $377,000 and is being amortized as director compensation expense over the twelve-month vesting period. On November 18, 2011, the Company granted a total of 453,000 shares of restricted stock to employees. The restricted stock vests in two equal annual installments beginning November 18, 2012 and ending November 18, 2013. The aggregate market value of the restricted stock at the date of the award was $816,000 and is being amortized as compensation expense over the one and two-year vesting periods.

A summary of the status of the Company’s non-vested restricted stock activity as of January 28, 2012 and changes during the twelve-month period then ended is as follows:

	Shares		Weighted Average Grant Date Fair Value
Non-vested outstanding, January 29, 2011	40,000		$1.90
Granted	1,026,000		$4.40
Vested	(42,000	)	$2.17
Forfeited	(42,000	)	$4.49
Non-vested outstanding, January 28, 2012	982,000		$4.39

Common Stock Repurchase Program

The Company’s board of directors had, in previous fiscal years, authorized common stock repurchase programs. During 2009, the Company repurchased a total of 1,622,000 shares of common stock for a total investment of $937,000 at an average price of $0.58 per share. The authorizations for repurchase programs have expired.

Equity Offering

On March 30, 2011, the Company completed a public equity offering of 9,487,000 common shares at a price to the public of $6.25 per share. Net proceeds from the offering were approximately $55.5 million after deducting the underwriting discount and offering expenses.