Stockholders' Equity

3 Months Ended

Oct. 31, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

8. STOCKHOLDERS' EQUITY

Stock Repurchases

On September 15, 2011, the Company announced that its Board of Directors authorized a stock repurchase program for up to $25 million. Under this program, the Company is authorized to repurchase shares of its common stock from time to time in open market transactions. The Company will determine the timing and amount of the transactions based on its evaluation of market conditions and other factors. The repurchase program may be suspended or discontinued at any time and has no expiration date. Through October 31, 2011, the Company had repurchased 894,890 shares for approximately $4.8 million.

2010 Plan

On November 5, 2010, the Company's Board of Directors adopted, subject to shareholder approval, the Company's 2010 Stock Plan, and subsequently amended it on November 26, 2010 ("2010 Plan"). Under the terms of the 2010 Plan, the Company may issue up to 4,800,000 shares of the Company's common stock (subject to adjustment in the event of stock splits and other similar events) pursuant to awards granted under the 2010 Plan. In addition, any unissued shares of the Company's common stock, and any unused shares of the Company's common stock as a result of termination, surrender, cancellation or forfeiture of outstanding awards under the Credence 2005 Plan, as amended and restated, and the LTX Corporation 2004 Plan, (together the "Prior Plans"), will be available for grant under the 2010 Plan. The 2010 Plan was approved by the Company's shareholders at the annual meeting on December 7, 2010. All future grants of equity awards will be made out of the 2010 Plan, and no additional grants will be made under the Prior Plans.

Reverse Stock Split

On September 15, 2010, the Company's Board of Directors approved a one-for-three reverse stock split of the Company's common stock, pursuant to a previously obtained stockholders authorization. The Company filed Restated Articles of Organization on September 30, 2010 in order to effect the reverse stock split, and on a post-split basis, to set the number of authorized shares of its common stock at 150,000,000. The Restated Articles of Organization were approved by the Company's stockholders at the Special Meeting of Stockholders held on July 8, 2010.

Upon the effective time of the Restated Articles of Organization, each outstanding share of the Company's common stock was automatically converted into one-third of a share of common stock. No fractional shares were issued in connection with the reverse stock split. Holders of common stock who would otherwise have received a fractional share of common stock pursuant to the reverse stock split received cash in lieu of the fractional share. The reverse stock split became effective for trading purposes at the opening of the Nasdaq Global Market on October 1, 2010. The effect of the reverse stock split has been retroactively applied to all periods presented.