EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Jun. 30, 2013

EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION [Abstract]

Total share-based compensation expense, net of tax

The following table summarizes total share-based compensation expense, net of tax, related to restricted stock units during the three months ended June 30, 2013 and 2012, which is included in our condensed consolidated statements of income (in thousands, except per share data):

	Three Months Ended
	June 30,
	2013			2012
Cost of revenues	$	254		$	223
Research and development		367			300
Sales and marketing		706			688
General and administrative		922			591
Share-based compensation expense before income taxes		2,249			1,802
Income tax benefit		(768	)		(644	)
Total share-based compensation expense after income taxes	$	1,481		$	1,158
Net impact of share-based compensation on:
Basic net income per share	$	0.07		$	0.05
Diluted net income per share	$	0.07		$	0.05

Stock option activity

The following table summarizes information regarding options outstanding and options exercisable at June 30, 2013 and the changes during the three-month period then ended:

				Weighted		Weighted
				Average		Average		Aggregate
				Exercise		Remaining		Intrinsic
	Number of			Price		Contractual		Value
	Shares			Per Share		Life (Years)		(In thousands)
Outstanding at March 31, 2013		72,000		$	20.50
Granted		-			-
Exercised		(2,000	)		8.20
Canceled or forfeited		-			-
Outstanding at June 30, 2013		70,000		$	20.87		0.85	$	1,874
Vested and expected to vest at June 30, 2013		70,000		$	20.87		0.85	$	1,874
Exercisable at June 30, 2013		70,000		$	20.87		0.85	$	1,874

Restricted Stock Unit Awards (Performance Vesting)

In April 2013, the Compensation Committee approved the grant of restricted stock unit awards (performance vesting) for 129,000 shares of common stock to our executive officers (the “FY2014 Performance RSUs”). The aggregate estimated grant date fair value of the FY2014 Performance RSUs was $5.5 million, or $42.43 per share, based on the closing market price of our common stock on the date of grant. The FY2014 Performance RSUs vest only if both of the following criteria are satisfied: (1) our consolidated income from operations for the fiscal year ending March 31, 2014, as certified by the Compensation Committee, is in excess of the applicable target amount set forth in the table below; and (2) the recipient remains in the Service of the Company (as defined in our Equity Incentive Plan) until the applicable vesting date set forth below:

Shares Issuable Upon Settlement of FY2014 Performance RSUs	Consolidated Income from Operations for the Year Ending March 31, 2014	Vesting Date
25%	> 90% of target	April 29, 2016
25%	> 90% of target	April 29, 2017
25%	> 100% of target	April 29, 2016
25%	> 100% of target	April 29, 2017

Restricted stock unit activity

The following table summarizes restricted stock unit activity for the three months ended June 30, 2013:

	Time-Based Restricted					Performance-Based Restricted
	Stock Units					Stock Units
				Weighted					Weighted
				Average					Average
	Number of			Grant Date		Number of			Grant Date
	Shares			Fair Value(1)		Shares(2)			Fair Value(1)
Nonvested at March 31, 2013		980,000		$	26.42		21,000		$	35.62
Granted		97,000			42.43		129,000			42.43
Vested(3)		(227,000	)		20.47		(21,000	)		35.62
Canceled or forfeited		(7,000	)		28.74		-			-
Nonvested at June 30, 2013		843,000		$	29.84		129,000		$	42.43

(1) The weighted average grant date fair value of restricted stock units is based on the number of shares and the closing market price of our common stock on the date of grant.

(2) Nonvested shares at March 31, 2013 include only the FY2013 Performance RSUs that were deemed granted in accordance with ASC 718-10-55-95.

(3) The number of restricted stock units vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements.