Share-Based Compensation Plans

3 Months Ended

Jan. 31, 2013

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 January 31,
	2013		2012
Cost of revenues	$	132	$	161
General and administrative expense	315		297
Research and development expense	60		83
Total share-based compensation	$	507	$	541

The following table summarizes stock option activity for the three months ended January 31, 2013:

	Number of options		Weighted average option  price ($)
Outstanding at October 31, 2012	3,120,456		6.96
Canceled	(32,325	)	9.07
Outstanding at January 31, 2013	3,088,131		6.94

As of January 31, 2013, there were 3,118,429 RSAs outstanding with a weighted average per share fair value of $1.59. There were 18,349 RSA's granted during the three months ended January 31, 2013 and forfeitures totaled 8,780 during this period.

For the three months ended January 31, 2013, 108,008 shares were issued under the ESPP at a per share cost of $0.79. There were 666,365 shares of common stock reserved for issuance under the ESPP as of January 31, 2013.