STOCK-BASED COMPENSATION

6 Months Ended

Aug. 31, 2014

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

NOTE 8 – STOCK-BASED COMPENSATION 

Stock-based compensation expense is included in the following captions of the unaudited consolidated income statements (in thousands):

	Three Months Ended				Six Months Ended
	August 31,				August 31,
	2014		2013		2014		2013
Cost of revenues	$	58	$	42	$	110	$	81
Research and development		148		122		283		232
Selling		126		87		239		158
General and administrative		604		439		1,124		850
	$	936	$	690	$	1,756	$	1,321

Changes in the Company's outstanding stock options during the six months ended August 31, 2014 were as follows (options in thousands):

				Weighted
	Number of			Average
	Options			Exercise Price
Outstanding at February 28, 2014		1,093		$	5.04
Granted		61			17.47
Exercised		(111	)		4.89
Forfeited or expired		(2	)		7.53
Outstanding at August 31, 2014		1,041		$	5.78
Exercisable at August 31, 2014		867		$	4.55

Changes in the Company's outstanding restricted stock shares and restricted stock units (“RSUs”) during the six months ended August 31, 2014 were as follows (shares and RSUs in thousands):

				Weighted
	Number of			Average Grant
	Shares and			Date Fair
	RSUs			Value
Outstanding at February 28, 2014		1,024		$	8.02
Granted		329			17.86
Vested		(459	)		5.98
Forfeited		(17	)		10.30
Outstanding at August 31, 2014		877		$	12.74

During the six months ended August 31, 2014, the Company retained 171,256 shares of the vested restricted stock and RSUs to satisfy the minimum required statutory amount of employee withholding taxes.

As of August 31, 2014, there was $11.9 million of total unrecognized stock-based compensation cost related to nonvested stock options, restricted stock and RSUs that is expected to be recognized as an expense over a weighted-average remaining vesting period of 3.1 years.