Stock-Based Compensation Plans

9 Months Ended

Mar. 29, 2012

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

Note 8 — Stock-Based Compensation Plans

At our annual meeting of stockholders on October 30, 2008, our stockholders approved a new equity incentive plan (the “2008 Equity Incentive Plan”) pursuant to which awards of options and stock-based awards may be made to members of the Board of Directors, employees and other individuals providing services to our Company. A total of 1,000,000 shares of Common Stock are authorized for grants of awards, which may be in the form of options, restricted stock, restricted stock units, stock appreciation rights (“SARs”), Common Stock or dividends and dividend equivalents. As of March 29, 2012, 718,334 shares of Common Stock remain authorized for future grants of awards. The 2008 Equity Incentive Plan replaced a stock option plan approved at our annual meeting of stockholders on October 28, 1998 (the “1998 Equity Incentive Plan”) pursuant to which awards of options and stock-based awards could be made. All outstanding options issued pursuant to the 1998 Equity Incentive Plan will continue to be governed by the terms of the 1998 Equity Incentive Plan.

The following is a summary of stock option activity for the first thirty-nine weeks of fiscal 2012:

Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at June 30, 2011		287,875		$	11.99
Activity:
Granted		500			8.71
Exercised		(18,500	)		6.83
Forfeited/Expired		(20,750	)		12.57
Outstanding at March 29, 2012		249,125		$	12.32		3.53	$	598
Exercisable at March 29, 2012		246,375		$	12.33		3.48	$	591

The weighted average grant date fair value of stock options granted during the first thirty-nine weeks of fiscal 2012 and fiscal 2011 were $3.39 and $6.71, respectively. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:

	Thirty-nine Weeks Ended March 29, 2012			Thirty-nine Weeks Ended March 24, 2011
Weighted average expected stock-price volatility		38.14	%		43.60	%
Average risk-free rate		1.13	%		2.24	%
Average dividend yield		0.00	%		0.00	%
Weighted average expected option life (in years)		6.25			6.25
Forfeiture percentage		5.00	%		5.00	%

The following is a summary of non-vested stock options for the first thirty-nine weeks of fiscal 2012:

Options	Shares			Weighted Average Grant Date Fair Value
Non-vested at June 30, 2011		21,875		$	4.81
Activity:
Granted		500			3.39
Vested		(18,250	)		4.47
Forfeited		(1,375	)		7.61
Non-vested at March 29, 2012		2,750		$	5.29

The following is a summary of restricted stock unit activity for the first thirty-nine weeks of fiscal 2012:

Restricted Stock Units	Shares			Weighted Average Grant Date Fair Value
Outstanding at June 30, 2011		187,500		$	11.34
Activity:
Granted		77,500			7.92
Exercised		(38,000	)		7.77
Forfeited		—			—
Outstanding at March 29, 2012		227,000		$	10.77

Restricted stock units granted to employees and non-employee outside directors vest over a three year and a one year period, respectively. 34,000 of the restricted stock units outstanding as of March 29, 2012 are vested and the non-vested restricted stock units will vest over a weighted average period of 1.6 years.

Compensation expense attributable to stock-based compensation during the first thirty-nine weeks of fiscal 2012 and fiscal 2011 was $657 and $524, respectively. As of March 29, 2012, there was $1,108 of total unrecognized compensation cost related to non-vested, share-based compensation arrangements granted under our stock-based compensation plans. We expect to recognize that cost over a weighted average period of 1.6 years.

We also have 10,000 SARs outstanding that were granted to a marketing consultant during the first quarter of fiscal 2011 and are being accounted for as a liability award whereby the fair value is measured at the end of each reporting period. These SARs vest over a three year period and have a ten year term. The amount of expense recognized during the first thirty-nine weeks of fiscal 2012 and the first thirty-nine weeks of fiscal 2011 related to the SARs was not material.