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Share-Based Compensation Plans
 9 Months Ended
Jul. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation Plans
Share-Based Compensation Plans
We have shareholder approved equity incentive plans and a shareholder approved Section 423 Stock Purchase Plan (the “ESPP”). We account for stock awards to employees and non-employee directors under the fair value method. We determine the fair value of stock options at the grant date using the Black-Scholes valuation model. The model requires us to make estimates and assumptions regarding the expected life of the award, the risk-free interest rate, the expected volatility of our common stock price and the expected dividend yield. The fair value of restricted stock units ("RSU") and restricted stock awards (“RSA”) is based on the common stock price on the date of grant. The fair value of stock awards is amortized to expense over the vesting period, which is generally four years.

Share-based compensation reflected in the consolidated statements of operations was as follows:
 
 
Three Months Ended July 31,
 
Nine Months Ended July 31,
 
2013
 
2012
 
2013
 
2012
Costs of revenues
$
156

 
$
182

 
$
437

 
$
435

General and administrative expenses
359

 
416

 
956

 
873

Research and development expenses
81

 
76

 
220

 
208

Total share-based compensation
$
596

 
$
674

 
$
1,613

 
$
1,516



The following table summarizes stock option activity for the nine months ended July 31, 2013:
 
 
Number of
options
 
Weighted
average
option  price ($)
Outstanding at October 31, 2012
3,120,456

 
6.96

Granted
279,746

 
0.94

Canceled
(182,413
)
 
6.36

Outstanding at July 31, 2013
3,217,789

 
6.47



As of July 31, 2013, there were 5,113,077 RSA's and RSU's outstanding with a weighted average per share fair value of $1.19. There were 918,919 RSA's and RSU's granted during the nine months ended July 31, 2013 and forfeitures totaled 1,932 during this period. During the second quarter of fiscal year 2013, the Company established an international award program to provide RSU's for the benefit of certain employees outside the United States.

For the nine months ended July 31, 2013, 224,789 shares were issued under the ESPP at a per share cost of $0.79. There were 549,584 shares of common stock reserved for issuance under the ESPP as of July 31, 2013.