Note 11 Stock-Based Compensation

3 Months Ended

Dec. 29, 2012

Share-based Compensation [Abstract]

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

Stock-Based Compensation

Stock compensation expense was attributable to:

	Three Months Ended
	December 29, 2012		December 31, 2011
	(In thousands)
Stock options	$	2,617	$	2,455
Restricted stock units	2,049		1,609
Total	$	4,666	$	4,064

Stock compensation expense was recognized as follows:

	Three Months Ended
	December 29, 2012		December 31, 2011
	(In thousands)
Cost of sales	$	1,340	$	907
Selling, general and administrative	3,295		3,130
Research and development	31		27
Total	$	4,666	$	4,064

As of December 29, 2012, an aggregate of 15.4 million shares were authorized for future issuance, of which 13.4 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 2.0 million shares of common stock were available for future grant under the Company's stock plans.

Stock Options

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

	Three Months Ended
	December 29, 2012		December 31, 2011
Volatility	86.2	%	85.4	%
Risk-free interest rate	0.7	%	1.0	%
Dividend yield	—	%	—	%
Expected life of options (years)	5.0		5.0

Stock option activity was as follows:

	Number of Shares		Weighted- Average Exercise Price ($)	Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value of In-The-Money Options ($)
	(In thousands)				(In thousands)
Outstanding, September 29, 2012	11,275		13.15	6.54	18,548
Granted	900		8.54
Exercised/Cancelled/Forfeited/Expired	(366	)	8.97
Outstanding, December 29, 2012	11,809		12.93	6.57	23,083
Vested and expected to vest, December 29, 2012	11,286		13.07	6.46	22,477
Exercisable, December 29, 2012	7,958		14.56	5.57	17,045

The weighted-average grant date fair value of stock options granted during the first quarter of 2013 and 2012 was $5.72 per share and $5.78 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 29, 2012, unrecognized compensation expense related to stock options was $23.2 million, and is expected to be recognized over a weighted average period of 2.6 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 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 29, 2012, unrecognized compensation expense related to restricted stock units was $11.1 million, and is expected to be recognized over a weighted average period of 2.1 years. Additionally, as of December 29, 2012, unrecognized compensation expense related to performance based restricted stock units was $2.7 million. No expense has been recorded for these performance based restricted stock units to date as achievement of performance criteria is not considered probable.

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

	Number of Shares		Weighted- Average Grant Date Fair Value ($)	Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value ($)
	(In thousands)				(In thousands)
Outstanding, September 29, 2012	2,230		9.51	1.08	21,272
Granted	760		8.53
Vested/Cancelled	(1,384	)	7.30
Outstanding, December 29, 2012	1,606		10.94	2.56	16,561
Expected to vest, December 29, 2012	963		11.85	1.84	9,931