EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Mar. 31, 2013

EQUITY COMPENSATION PLANS AND SHARE-BASED COMPENSATION [Abstract]

Total Share-based Compensation Expense, Net of Tax

The following table summarizes total share-based compensation expense, net of tax, related to stock options and restricted stock units for fiscal 2013, 2012 and 2011, which is included in our consolidated statements of income (in thousands, except per share data):

	Year Ended March 31,
	2013			2012			2011
Cost of revenues	$	921		$	918		$	656
Research and development		1,150			866			880
Sales and marketing		2,506			1,877			1,499
General and administrative		2,509			2,022			1,809
Share-based compensation expense before income taxes		7,086			5,683			4,844
Income tax benefit		(2,557	)		(2,001	)		(1,815	)
Total share-based compensation expense after income taxes	$	4,529		$	3,682		$	3,029
Net impact of share-based compensation on:
Basic net income per share	$	0.21		$	0.17		$	0.14
Diluted net income per share	$	0.20		$	0.16		$	0.13

Stock Option Activity

Stock option activity under all stock plans is summarized as follows:

				Weighted		Weighted
				Average		Average	Aggregate
				Exercise		Remaining	Intrinsic
	Number of			Price		Contractual	Value
	Shares			Per Share		Life (Years)	(In thousands)
Outstanding at March 31, 2010
(720,000 shares exercisable at a weighted average exercise price of $9.15 per share)		720,000		$	9.15
Granted		-			-
Exercised		(314,000	)		5.35
Canceled or forfeited		-			-
Outstanding at March 31, 2011
(406,000 shares exercisable at a weighted average exercise price of $12.10 per share)		406,000			12.10
Granted		-			-
Exercised		(122,000	)		5.04
Canceled or forfeited		(2,000	)		5.31
Outstanding at March 31, 2012
(282,000 shares exercisable at a weighted average exercise price of $15.21 per share)		282,000			15.21
Granted		-			-
Exercised		(210,000	)		13.38
Canceled or forfeited		-			-
Outstanding at March 31, 2013		72,000		$	20.50	1.07	$                  1,943
Vested and expected to vest at March 31, 2013		72,000		$	20.50	1.07	$                  1,943
Exercisable at March 31, 2013		72,000		$	20.50	1.07	$                  1,943

Summary of Stock Options Outstanding and Exercisable by Price Range

The following table summarizes information regarding stock options outstanding and stock options exercisable at March 31, 2013:

							Weighted		Weighted				Weighted
							Average		Average				Average
					Number		Remaining		Exercise		Number		Exercise
					of Shares		Contractual		Price		of Shares		Price
Range of Exercise Prices					Outstanding		Life (Years)		Per Share		Exercisable		Per Share
$	3.77	-	$	13.17		3,000		1.13	$	9.16		3,000	$	9.16
$	14.74	-	$	14.74		4,000		1.45		14.74		4,000		14.74
$	17.23	-	$	17.23		1,000		0.59		17.23		1,000		17.23
$	17.93	-	$	17.93		1,000		0.81		17.93		1,000		17.93
$	19.45	-	$	19.45		1,000		1.22		19.45		1,000		19.45
$	21.65	-	$	21.65		62,000		1.05		21.65		62,000		21.65
$	3.77	-	$	21.65		72,000		1.07		20.50		72,000		20.50

Restricted Stock Unit Awards (Performance Vesting)

During the first quarter of fiscal 2014, our Compensation Committee granted restricted stock unit awards (performance vesting) to acquire shares of the Company's common stock to our executive officers (the "FY2014 Performance RSUs").  The FY2014 Performance RSUs vest only if both of the following criteria are satisfied:  (1) our consolidated income from operations for the fiscal year ending March 31, 2014, as certified by the Compensation Committee, is in excess of the applicable target amount set forth in the table below; and (2) the recipient remains in the Service of the Company (as defined in our 2005 Equity Incentive Plan) until the applicable vesting date set forth below:

Shares Issuable Upon Settlement of FY2014 Performance RSUs	Consolidated Income from Operations for the Year Ending March 31, 2014	Vesting Date
25%	> 90% of target	April 29, 2016
25%	> 90% of target	April 29, 2017
25%	>100% of target	April 29, 2016
25%	> 100% of target	April 29, 2017

Restricted Stock Unit Activity

The following table summarizes restricted stock unit activity during fiscal 2013, 2012 and 2011:

	Time-Based Restricted					Performance-Based Restricted
	Stock Units					Stock Units
				Weighted				Weighted
				Average				Average
	Number of			Grant Date		Number of		Grant Date
	Shares			Fair Value(1)		Shares		Fair Value(1)
Unvested at March 31, 2010		864,000		$	21.57		-	$	-
Granted		333,000			24.45		-		-
Vested(2)		(244,000	)		23.43		-		-
Canceled or forfeited		(13,000	)		23.14		-		-
Unvested at March 31, 2011		940,000		$	22.09		-	$	-
Granted		436,000			27.25		-		-
Vested(2)		(237,000	)		22.12		-		-
Canceled or forfeited		(19,000	)		24.03		-		-
Unvested at March 31, 2012		1,120,000		$	24.06		-	$	-
Granted(3)		192,000			36.30		21,000		35.62
Vested(2)		(257,000	)		23.40		-		-
Canceled or forfeited		(75,000	)		26.78		-		-
Unvested at March 31, 2013		980,000		$	26.42		21,000	$	35.62

______________________________

(1) The weighted average grant date fair value of restricted stock units is based on the number of shares and the closing market price of our common stock on the date of grant.

(2) The number of restricted stock units vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements.

(3) The shares granted for restricted stock unit awards (performance vesting) do not include the awards approved by the Board of Directors during the fiscal year that are deemed not to have been granted in accordance with ASC 718-10-55-95.