Note 12 Stock-Based Compensation

3 Months Ended

Dec. 31, 2011

Share-based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Stock-Based Compensation

Stock compensation expense was as follows:

	Three Months Ended
	December 31, 2011		January 1, 2011
	(In thousands)
Cost of sales	$	907	$	1,039
Selling, general and administrative	3,130		2,606
Research and development	27		42
Total	$	4,064	$	3,687

	Three Months Ended
	December 31, 2011		January 1, 2011
	(In thousands)
Stock options	$	2,455	$	2,750
Restricted stock units	1,609		937
Total	$	4,064	$	3,687

As of December 31, 2011, an aggregate of 15.2 million shares were authorized for future issuance and 1.4 million shares of common stock were available for grant under the Company's stock plans, which include stock options and restricted stock awards and units.

Stock Options

Assumptions used to estimate the fair value of stock options granted were as follows:

	Three Months Ended
	December 31, 2011		January 1, 2011
Volatility	85.4	%	81.9	%
Risk-free interest rate	0.96	%	1.3	%
Dividend yield	—	%	—	%
Expected life of options (years)	5.0		5.0

Stock option activity was as follows:

	Number of Shares		Weighted- Average Exercise Price ($)	Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value of In-The-Money Options ($)
	(In thousands)				(In thousands)
Outstanding, October 1, 2011	10,922		13.85	6.89	14,195
Granted	892		8.64
Exercised/Cancelled/Forfeited/Expired	(208	)	12.88
Outstanding, December 31, 2011	11,606		13.46	6.91	16,839
Vested and expected to vest, December 31, 2011	10,681		13.84	6.76	12,235
Exercisable, December 31, 2011	7,282		16.04	5.87	10,721

The weighted-average grant date fair value of stock options granted during the three months ended December 31, 2011 and January 1, 2011 was $5.78 per share and $7.33 per share, respectively. The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value of in-the-money options that would have been received by the option holders had all option holders exercised their options at the Company's closing stock price on the date indicated.

As of December 31, 2011, unrecognized compensation expense related to stock options was $28.0 million, and is expected to be recognized over a weighted average period of 3.7 years.

Restricted Stock Units

The Company grants restricted stock units to executive officers, directors and certain management employees. These units vest over periods ranging from one to four years and are automatically exchanged for shares of common stock at the vesting date. Compensation expense associated with these units is recognized ratably over the vesting period.

As of December 31, 2011, unrecognized compensation expense related to restricted stock units was $14.0 million, and is expected to be recognized over a weighted average period of 2.2 years.

Activity with respect to the Company's restricted stock units was as follows:

	Number of Shares		Weighted- Average Grant Date Fair Value ($)	Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ($)
	(In thousands)				(In thousands)
Outstanding, October 1, 2011	1,838		11.42	1.63	14,249
Granted	610		8.69
Vested/Cancelled	(235	)	11.39
Outstanding, December 31, 2011	2,213		10.67	1.79	19,119
Expected to vest, December 31, 2011	1,542		10.80	1.80	13,326