SHARE-BASED PAYMENTS (Tables)

12 Months Ended

Jul. 31, 2012

Summary of Share-Based Compensation Expense Related to Employee Stock Options, Employee Stock Purchases and Nonvested Shares

The following table summarizes share-based compensation expense related to employee stock options, employee stock purchases and nonvested shares for the fiscal years ended July 31, 2012, 2011, 2010, and 2009:

	Years Ended July 31,
	2012		2011		2010		2009
	(in thousands)
Cost of revenue	$	344	$	374	$	337	$	392
Selling, general and administrative		2,646		3,107		3,817		4,711
	$	2,990	$	3,481	$	4,154	$	5,103

Weighted-Average Grant Date Fair Value of Employee Stock Options Granted

The Company estimates the fair value of stock option awards on the date of grant using a binomial-lattice model. The weighted-average grant date fair value of employee stock options granted during the fiscal years ended July 31, 2012, 2011, 2010, and 2009 was $1.98, $2.97, $3.73, and $3.22, respectively, using the binomial-lattice model with the following weighted-average assumptions:

	Years Ended July 31,
	2012			2011			2010			2010
Expected volatility		59.56	%		62.64	%		65.77	%		56.64	%
Risk-free interest rate		0.84	%		0.99	%		1.88	%		2.34	%
Expected term (in years)		4.66			4.27			4.08			4.08
Expected dividend yield		0.00	%		0.00	%		0.00	%		0.00	%

Status of the Plans

A summary of option activity for the fiscal year ended July 31, 2012 is as follows:

	Number of shares			Weighted- Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
	(in thousands, except exercise price and years)
Stock options outstanding, July 31, 2011		2,566		$	10.97
Granted		1,252			4.26
Exercised		(2	)		3.78
Forfeited or expired		(1,129	)		10.11
Stock options outstanding, July 31, 2012		2,687		$	8.20		4.30	$	5
Stock options exercisable, July 31, 2012		1,289		$	11.46		2.61	$	5

Summary of the Status of Nonvested Stock

A summary of the status of our nonvested stock for the fiscal year ended July 31, 2012, is as follows:

	Number     of shares			Weighted average grant date fair value
	(in thousands, except fair values)
Nonvested stock outstanding, July 31, 2011		566		$	7.93
Granted		461			2.27
Vested		(266	)		7.77
Forfeited		(357	)		2.29
Nonvested stock outstanding, July 31, 2012		404		$	6.56