STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2013

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

STOCK-BASED COMPENSATION

NOTE 9 — STOCK-BASED COMPENSATION

The Company’s stock option activity for the six months ended June 30, 2013 was as follows:

Stock Options (shares in thousands)	Shares		Weighted Average Exercise Price
Outstanding at December 31, 2012	1,676		$	12.13
Granted	159		17.24
Exercised	(232	)	5.94
Cancelled or expired	—		—
Outstanding at June 30, 2013	1,603		$	13.53

The Company had $2.6 million of total unrecognized compensation costs related to stock options at June 30, 2013 that are expected to be recognized over a weighted average period of 2.1 years.

The Company’s restricted share activity for the six months ended June 30, 2013 was as follows:

Restricted Stock Awards (shares in thousands)	Shares		Weighted Average Grant Price
Non-vested at December 31, 2012	818		$	19.32
Granted	354		17.28
Vested	(245	)	18.84
Cancelled or expired	(14	)	19.70
Non-vested at June 30, 2013	913		$	18.65
Restricted Stock Units (in thousands)	Shares
Non-vested at December 31, 2012	875
Granted	193
Vested	(74	)
Cancelled or expired	(145	)
Non-vested at June 30, 2013	849

As of June 30, 2013, there was $16.8 million and $6.2 million of unrecognized compensation cost related to RSAs and RSUs, respectively. That cost is expected to be recognized over a weighted average period of 3.4 years for the RSAs and 2.4 years for the RSUs. The Company issues a small number of cash settled restricted stock units pursuant to the Company's equity incentive plan in certain foreign countries. These grants do not result in the issuance of common stock and are considered immaterial by the Company.

The following are the stock-based compensation costs recognized in the Company’s condensed consolidated statements of comprehensive income (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Cost of revenue	$	199	$	246	$	402	$	475
Research and development	570		472		1,217		988
Selling, general and administrative	1,643		1,853		3,225		3,751
Stock-based compensation costs reflected in net income	$	2,412	$	2,571	$	4,844	$	5,214