Nature of Business and Significant Accounting Policies (Tables)

12 Months Ended

Jul. 31, 2012

Nature of Business and Significant Accounting Policies [Abstract]

Estimated useful lives of property and equipment

Property and equipment: Property and equipment are depreciated using the straight-line method over their estimated useful lives as follows:

	Useful lives (in years)
Building and improvements	7-39
Machinery and equipment	5-7
Furniture and fixtures	5-7
Software	3-10

Deferred revenue

On April 23, 2010, the Company entered into a Settlement and License Agreement with Alcon, Inc. ("Alcon")  pursuant to which Alcon paid to the Company $32.0 million. The net proceeds to the Company were $21.4 million after contingency payments to attorneys. The Company recognized a gain from this agreement of $2.4 million in the third quarter of fiscal 2010. The remaining $19.0 million has been accounted for as an up-front license fee under the Confidential Settlement and License Agreement and was deferred and recognized as earned over a period estimated to be 15 years based upon estimated shipments to Alcon under a related Supply Agreement.  On February 13, 2012, Alcon informed the Company that it had decided to cancel the project, orders and forecasts covering the two products to have been supplied under the Supply Agreement. However, the Supply Agreement remains in effect and the Company has continuing performance obligations associated with the Supply Agreement. Therefore, the Company plans on recognizing the remaining deferred revenue associated with the Supply Agreement ratably over the next 14 years which is the remaining life of the patents and associated Supply Agreement.The Company recognized $1.2 million and $696,000 of this deferred revenue for the fiscal years ended July 31, 2012 and 2011, respectively.

	July 31, 2012		July 31, 2011
Deferred revenue – Alcon settlement	$	17,106	$	18,334
Deferred revenue – Codman exclusivity		--		266
Total	$	17,106	$	18,600
Less: Short-term		1,288		540
Long-term portion	$	15,818	$	18,060

Calculation of numerator and denominator in earnings per share

Earnings per share: Basic earnings per share ("EPS") data has been computed on the basis of the weighted average number of common shares outstanding during each period presented.  Diluted EPS data has been computed on the basis of the assumed conversion, exercise or issuance of all potential common stock instruments, unless the effect is to reduce the loss or increase the net income per common share (dollars in thousands, except share and per share data):

	Year Ended July 31,
	2012			2011		2010
Numerator:
Income from continuing operations	$	5,968		$	5,669	$	5,767
Loss from discontinued operations net of income tax		382			36		34
Net income		5,586			5,633		5,733
Denominator:
Weighted average common shares and denominator for basic calculation		25,100,064			24,901,832		24,618,403
Stock options and restricted stock		153,516			133,263		54,202
Denominator for diluted calculation		25,256,584			25,035,095		24,672,605
Earnings per share – basic
Income from continuing operations	$	0.24		$	0.23	$	0.23
Loss from discontinued operations		(0.02	)		0.00		0.00
Net income	$	0.22		$	0.23	$	0.23
Earnings per share – diluted
Income from continuing operations	$	0.24		$	0.23	$	0.23
Loss from discontinued operations		(0.02	)		0.00		0.00
Net income	$	0.22		$	0.23	$	0.23