Stockholders' Equity

12 Months Ended

Jun. 30, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity

8. Stockholders’ Equity

Preferred Stock

The Board of Directors has the authority to issue, without further action by the stockholders, up to 1.0 million shares of preferred stock in one or more series and to fix the price, rights, preferences, privileges and restrictions thereof, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting a series or the designation of such series, without any further vote or action by the Company’s stockholders. The issuance of preferred stock, while providing desirable flexibility in connection with possible financings, acquisitions and other corporate purposes, could have the effect of delaying, deferring or preventing a change in control of the Company without further action by the stockholders and may adversely affect the market price of, and the voting and other rights of, the holders of common stock. No shares of preferred stock were outstanding at June 30, 2012.

On September 18, 2012, the Company issued 8,000 shares of Preferred Stock, at a price of $1,000 per share to Hale Capital Partners, LP (“Hale Capital”) for gross proceeds of $8 million. The Company received net proceeds of approximately $7.6 million from the issuance of the Preferred Stock, after deducting estimated expenses payable by the Company. The total number of shares of Common Stock issuable upon conversion of the Preferred Stock and as dividends is not to exceed 19.9% of the Company's currently outstanding shares of Common Stock. Each share of the Preferred Stock is convertible, at the option of the holder, at a conversion rate of $4.60.

Common Stock

During the fourth quarter of fiscal 2012, the Company offered and sold 920,000 shares of its common stock, which includes full exercise of the over-allotment option of 120,000 shares, at a price of $4.00 per share, pursuant to an underwriting agreement with Roth Capital Partners, LLC, dated June 8, 2012. The shares were offered and sold under a prospectus supplement and related prospectus filed with the SEC pursuant to the Company's shelf registration statement on Form S-3.

The Company has reserved shares of common stock for future issuance at June 30, 2012 as follows (in thousands):

Stock options outstanding	1,473
Stock options and restricted stock available for grant	888
Employee stock purchase plan shares available for purchase	422
	2,783

Equity Incentive Plans

The following table summarizes employee incentive plan activities under the Company’s stock option and equity incentive plans (in thousands, except per share data):

							Options
	Available for Grant		No. of Options Outstanding		No. of Restricted Stock Outstanding		Aggregate Price			Weighted Average Exercise Price Per Share
Balance at June 30, 2010	854		1,236		9		$	8,915		$	7.22
Granted	(445	)	285		160		1,413			4.95
Canceled	153		(153	)	—		(2,642		)	17.28
Exercised	—		(36	)	—		(97		)	2.70
Vested	—		—		(50	)	—			—
Expired	(25	)	—		—		—			—
Forfeited due to cancellation or for taxes	32		—		(32	)	—			—
Balance at June 30, 2011	569		1,332		87		$	7,589		$	5.70
Shares added	750		—		—		—			—
Granted	(285	)	281		5		1,048			3.73
Canceled	110		(110	)	—		(1,018		)	9.25
Exercised	—		(30	)	—		(89		)	2.99
Vested	—		—		(56	)	—			—
Expired	(292	)	—		—		—			—
Forfeited due to cancellation or for taxes	36		—		(36	)	—			—
Balance at June 30, 2012	888		1,473		—		$	7,530		$	5.11

The following table summarizes information concerning outstanding and exercisable options at June 30, 2012:

	Options Outstanding				Options Exercisable
Range of Exercise Prices Per Share	Options Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price
	(in thousands)	(years)	(per share)		(in thousands)	(per share)
$  1.50 - $  2.85	72	5.98	$	2.40	43	$	2.16
$  3.07 - $  3.07	408	6.46	3.07		300	3.07
$ 3.35 - $ 3.73	59	8.89	3.41		15	3.55
$ 3.78 - $ 3.78	168	9.16	3.78		38	3.78
$ 3.88 - $ 4.70	52	8.69	4.33		14	4.18
$ 4.86 - $ 4.86	183	8.17	4.86		84	4.86
$  5.00 - $  5.74	157	5.25	5.64		152	5.64
$  6.25 - $  8.07	159	4.04	7.54		159	7.54
$ 8.75 - $ 8.75	9	4.38	8.75		9	8.75
$ 9.48 - $ 13.94	206	5.91	9.65		195	9.66
$  1.50 - $ 13.94	1,473	6.65	$	5.11	1,009	$	5.64

Employee Stock Purchase Plan

The 2008 ESPP has overlapping 24-month offering periods that begin every six months, starting on the first trading day on or after November 1 and May 1 of each year. Each 24-month offering period is divided into foursix-month purchase periods. For every six-month purchase period, the plan allows eligible employees, through payroll deductions of a maximum of 15% of individual salary, to purchase up to a maximum of 1,200 shares of the Company’s common stock at 85% of fair market value on either the first day of the offering period or the last day of the purchase period, whichever is lower. As of June 30, 2012, there were 422,328 shares available for issuance under the 2008 Employee Stock Purchase Plan.