Stock-Based Compensation (Tables)

9 Months Ended

Apr. 30, 2011

Stock-Based Compensation

Stock-based compensation for awards detailing where recorded in Statement of Operations

	Three months ended April 30,		Nine months ended April 30,
	2011	2010	2011	2010
Cost of sales	$        88,000	159,000	361,000	466,000
Selling, general and administrative expenses	824,000	1,827,000	2,875,000	4,301,000
Research and development expenses	206,000	346,000	741,000	991,000
Stock-based compensation expense before income tax benefit	1,118,000	2,332,000	3,977,000	5,758,000
Income tax benefit	(399,000)	(839,000)	(1,430,000)	(2,134,000)
Net stock-based compensation expense	$      719,000	1,493,000	2,547,000	3,624,000

Certain weighted average assumptions used to estimate initial fair value of stock-based awards

	Three months ended April 30,		Nine months ended April 30,
	2011	2010	2011	2010
Expected dividend yield	3.59%	-	3.59%	0%
Expected volatility	38.00%	-	38.00%	38.00%
Risk-free interest rate	2.30%	-	2.24%	1.33%
Expected life (years)	5.28	-	5.27	3.50

Actual income tax benefit recognized for tax deductions relating to the exercise of stock-based awards

	Nine months ended April 30,
	2011	2010
Actual income tax benefit recorded for the tax deductions relating to the exercise of stock-based awards	$       291,000	$       472,000
Less: Tax benefit initially recognized on exercised stock-based awards vesting subsequent to the adoption of accounting standards that require us to expense stock-based awards	(137,000)	(213,000)
Excess income tax benefit recorded as an increase to additional paid-in capital	154,000	259,000
Less: Tax benefit initially disclosed but not previously recognized on exercised equity-classified stock-based awards vesting prior to the adoption of accounting standards that require us to expense stock-based awards	-	(7,000)
Excess income tax benefit from exercised equity-classified stock-based awards reported as a cash flow from financing activities in our Condensed Consolidated Statements of Cash Flows	$        154,000	$        252,000