Share-Based Compensation

3 Months Ended

Sep. 30, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

4.             Share-Based Compensation

As of September 30, 2011, we had share-based employee compensation plans which are described in Note 11 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2011.Option awards are granted with an exercise price equal to the market price of our stock at the date of grant.We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of September 30, 2011, we had approximately 289,000 stock options outstanding and approximately 639,000 restricted shares outstanding. No stock options were granted during the three months ended September 30, 2011.

We issued 39,000 shares of restricted stock that vest over a four year service period, during the three months ended September 30, 2011. A summary of the activity of our service condition restricted shares during the three months ended September 30, 2011, is presented below:

		Weighted-Average
		Grant-Date
Restricted Stock Awards	Shares	Fair-Value
Non-vested at July 1, 2011	330,644		$ 5.05
Granted	39,000		6.34
Vested	(36,091)		5.40
Forfeited	(16,028)		5.69
Non-vested at September 30, 2011	317,525		$ 5.14

A summary of the activity of our performance based restricted shares during the three months ended September 30, 2011, is presented below:

		Weighted-Average
		Grant-Date
Performance Stock Awards	Shares	Fair-Value
Non-vested at July 1, 2011	452,055		$ 2.09
Granted			-
Vested	(87,454)		2.12
Forfeited	(42,999)		2.30
Non-vested at September 30, 2011	321,602		$ 2.06

We recorded share-based compensation related to issuance of stock options and restricted stock to employees, board members, and non-employees, as follows (amounts in thousands of dollars):

			Three Months Ended
			September 30,
			2011	2010
Share-based compensation expense included in the
	Statement of Operations:
		Cost of sales	$   18	$     7
		Sales and marketing	37	42
		Research and development	44	32
		General and administrative	171	118
	Total		270	199
	Tax benefit		-	-
	Share-based compensation expense, net of taxes		$ 270	$ 199