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Shareholders' Equity (Tables)
12 Months Ended
Dec. 31, 2012
Shareholders' Equity [Abstract]  
Fair values of stock option grants estimated with weighted average assumptions

The fair values of our equity awards, primarily stock option grants, were estimated with the following weighted average assumptions:

 

                 
    Year Ended
December 31,
 
    2012     2011  

Dividend yield

    0     0

Expected life

    3.8 years       3.9 years  

Expected volatility

    73     74

Risk-free interest rate

    0.6     1.1
Impact on the results of operations of recording stock-based compensation expense

The impact on our results of operations of recording stock-based compensation expense for the years ended December 31, 2012 and 2011 was as follows (in thousands, except per share amounts):

 

                 
    Year Ended
December 31,
 
    2012     2011  

Cost of revenue—service

  $ 315     $ 668  

Selling, general and administrative

    521       1,363  

Research and development

    115       147  
   

 

 

   

 

 

 

Total stock-based compensation expense

  $ 951     $ 2,178  
   

 

 

   

 

 

 

Per diluted share

  $ 0.08     $ 0.21  
   

 

 

   

 

 

 
Summary of stock option activity under the plans

Stock Option Activity

The following table summarizes stock option activity under the Plans for 2012 and 2011:

 

                                 

Stock Options

  Number of
Shares
    Weighted
Average
Exercise
Price
    Weighted
Average
Remaining
Contractual
Life
(in years)
    Aggregate
Intrinsic
Value
 

Balance at January 1, 2011

    1,942,723     $ 3.66       4.91          

Granted at fair value

    423,715       7.93                  

Exercised

    (208,821     2.94                  

Forfeited

    (44,334     3.32                  

Expired

    (173,808     5.74                  
   

 

 

                         

Balance at December 31, 2011

    1,939,475     $ 4.49       4.33          

Granted at fair value

    244,125       3.27                  

Exercised

    (90,786     2.41                  

Forfeited

    (327,422     6.67                  

Expired

    (225,774     7.24                  
   

 

 

                         

Balance at December 31, 2012

    1,539,618     $ 3.55       4.24     $ 363,000  
   

 

 

   

 

 

   

 

 

   

 

 

 

Vested and expected to vest at December 31, 2012

    1,491,531     $ 3.55       4.13     $ 362,000  
   

 

 

   

 

 

   

 

 

   

 

 

 

Exercisable at December 31, 2012

    1,181,590     $ 3.49       3.14     $ 343,000  
   

 

 

   

 

 

   

 

 

   

 

 

 
Summary of certain information about stock options

The following table summarizes certain information about stock options for 2012 and 2011:

 

                 
    Year Ended
December 31,
 
    2012     2011  

Weighted average grant-date fair value for options granted during the year

  $ 2.02     $ 4.52  
   

 

 

   

 

 

 

Options in-the-money at December 31

    606,666       708,441  
   

 

 

   

 

 

 

Aggregate intrinsic value of options exercised

  $ 73,000     $ 909,117  
   

 

 

   

 

 

 
Summary of Restricted Stock Award activity

Restricted Stock Award Activity

The following table summarizes restricted stock award activity under the Stock Plan for 2012 and 2011:

 

                 
    Number of
Shares
    Weighted
Average
Grant-Date
Fair Value
 

Unvested at December 31, 2010

    42,000     $ 3.78  

Granted

    30,000       6.58  

Vested

    (45,000     3.64  

Forfeited

    —         —    
   

 

 

   

 

 

 

Unvested at December 31, 2011

    27,000     $ 6.49  

Granted

    0       0  

Vested

    (27,000     6.49  

Forfeited

    —         —    
   

 

 

   

 

 

 

Unvested at December 31, 2012

    0     $ 0  
   

 

 

   

 

 

 

Expected to vest after December 31, 2012

    0     $ 0  
   

 

 

   

 

 

 
Summary of Restricted Stock Unit activity

Restricted Stock Unit Activity

The following table summarizes restricted stock unit activity under the Stock Plan for 2012 and 2011:

 

                 
    Number of
Shares
    Weighted
Average
Exercise
Price
 

Unvested at December 31, 2010

    221,776     $ 5.27  

Granted

    312,760     $ 5.57  

Vested

    (260,803   $ 3.85  

Forfeited

    (32,485   $ 4.80  
   

 

 

   

 

 

 

Unvested at December 31, 2011

    241,248     $ 5.91  

Granted

    177,592       3.49  

Vested

    (148,743     4.98  

Forfeited

    (33,584     6.07  
   

 

 

   

 

 

 

Unvested at December 31, 2012

    236,513     $ 4.95  
   

 

 

   

 

 

 

Expected to vest after December 31, 2012

    215,912     $ 4.85  
   

 

 

   

 

 

 
Summary of shares of common stock reserved for future issuance under the Plans

The following table summarizes our shares of common stock reserved for future issuance under the Plans at December 31, 2012 and 2011:

 

                 
    December 31,  
    2012     2011  

Stock options outstanding

    1,539,618       1,939,475  

Restricted stock units outstanding

    236,513       241,248  

Stock options available for future grant

    1,157,149       617,086  
   

 

 

   

 

 

 

Common stock reserved for future issuance

    2,933,280       2,797,809