Share-Based Compensation Plans

9 Months Ended

Jul. 31, 2012

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

Share-Based Compensation Plans

Share-Based Compensation Plans

We have shareholder approved equity incentive plans and a shareholder approved Section 423 Stock Purchase Plan (the “ESPP”). We account for stock awards to employees and non-employee directors under the fair value method. We determine the fair value of stock options at the grant date using the Black-Scholes valuation model. The model requires us to make estimates and assumptions regarding the expected life of the award, the risk-free interest rate, the expected volatility of our common stock price and the expected dividend yield. The fair value of restricted stock awards (“RSA”) is based on the common stock price on the date of grant. The fair value of stock awards is amortized to expense over the vesting period, generally four years.

Share-based compensation reflected in the consolidated statements of operations were as follows:

	Three Months Ended July 31,				Nine Months Ended July 31,
	2012		2011		2012		2011
Cost of product sales and revenues	$	153	$	201	$	369	$	604
Cost of research and development contracts	29		34		66		105
General and administrative expense	416		98		873		989
Research and development expense	76		108		208		349
Total share-based compensation	$	674	$	441	$	1,516	$	2,047

The following table summarizes stock option activity for the nine months ended July 31, 2012:

	Number of options		Weighted average option  price ($)
Outstanding at October 31, 2011	3,320,558		8.25
Granted	342,293		1.28
Cancelled	(506,045	)	11.42
Outstanding at July 31, 2012	3,156,806		7.05

As of July 31, 2012, there were 3,151,022 RSAs outstanding with a weighted average per share fair value of $1.60. There were 1,939,940 RSA's granted during the nine months ended July 31, 2012 and forfeitures totaled 83,929 during this period.

For the nine months ended July 31, 2012, 223,687 shares were issued under the ESPP at a per share cost of $0.90. There were 774,373 shares of common stock reserved for issuance under the ESPP as of July 31, 2012.