Stock-Based Compensation (Tables)

12 Months Ended

Jul. 31, 2013

Stock-Based Compensation

Schedule of the income statement components of stock-based compensation expense recognized in the Consolidated Statements of Income

	Year Ended July 31,
	2013			2012			2011
Cost of sales	$	174,000		$	195,000		$	126,000
Operating expenses:
Selling	329,000			397,000			391,000
General and administrative	3,198,000			3,203,000			2,805,000
Research and development	32,000			45,000			28,000
Total operating expenses	3,559,000			3,645,000			3,224,000
Stock-based compensation before income taxes	3,733,000			3,840,000			3,350,000
Income tax benefits	(1,343,000		)	(1,363,000		)	(1,215,000		)
Total stock-based compensation expense, net of tax	$	2,390,000		$	2,477,000		$	2,135,000
Decrease in earnings per common share due to stock-based compensation:
Basic	$	0.06		$	0.06		$	0.06
Diluted	$	0.06		$	0.06		$	0.05

Summary of nonvested stock award activity

			Weighted
	Number of		Average
	Shares		Fair Value
Nonvested stock awards at July 31, 2010	356,967		$	6.17
Granted	398,362		8.47
Vested	(209,491	)	5.74
Nonvested stock awards at July 31, 2011	545,838		8.01
Granted	536,859		9.48
Canceled	(83,002	)	8.63
Vested	(291,687	)	7.77
Nonvested stock awards at July 31, 2012	708,008		9.15
Granted	210,484		17.55
Canceled	(14,244	)	11.31
Vested	(298,481	)	9.26
Nonvested stock awards at July 31, 2013	605,767		$	11.96

Weighted-average assumptions used to estimate fair value of stock options granted using the Black-Scholes option valuation model

Weighted-Average
Black-Scholes Option	Year Ended
Valuation Assumptions	July 31, 2013
Dividend yield	0.37	%
Expected volatility (1)	0.509
Risk-free interest rate (2)	0.67	%
Expected lives (in years) (3)	5.00

(1) Volatility was based on historical closing prices of our common stock.

(2) The U.S. Treasury rate based on the expected life at the date of grant.

(3) Based on historical exercise behavior.

Summary of stock option activity

			Weighted
	Number of		Average
	Shares		Exercise Price
Outstanding at July 31, 2010	3,212,691		$	7.09
Exercised	(1,593,911	)	7.57
Expired	(74,812	)	9.46
Outstanding at July 31, 2011	1,543,968		6.47
Canceled	(24,748	)	6.98
Exercised	(695,985	)	6.32
Outstanding at July 31, 2012	823,235		6.57
Granted	52,500		17.04
Canceled	(9,000	)	8.40
Exercised	(462,904	)	6.26
Outstanding at July 31, 2013	403,831		$	8.25
Exercisable at July 31, 2011	859,011		$	5.99
Exercisable at July 31, 2012	546,165		$	6.29
Exercisable at July 31, 2013	351,331		$	6.94

Summary of additional information related to stock options outstanding

	Options Outstanding					Options Exercisable
			Weighted					Weighted
			Average					Average
			Remaining	Weighted				Remaining	Weighted
	Number		Contractual	Average		Number		Contractual	Average
Range of Exercise	Outstanding		Life	Exercise		Exercisable		Life	Exercise
Prices	at July 31, 2013		(Months)	Price		At July 31, 2013		(Months)	Price
$4.14 - $5.14	10,128		3	$	4.26	10,128		3	$	4.26
$6.28 - $7.06	316,337		16	$	6.99	316,337		16	$	6.99
$7.13 - $17.04	77,366		40	$	13.93	24,866		16	$	7.38
$4.14 - $17.04	403,831		20	$	8.25	351,331		16	$	6.94
Total Intrinsic Value	$	7,386,000				$	6,887,000