Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2013

Shareholders' Equity [Abstract]

Fair values of stock option grants estimated with weighted average assumptions

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Dividend yield		0	%		0	%		0	%		0	%
Expected life		4 years			4 years			4 years			4 years
Expected volatility		61	%		73	%		64	%		73	%
Risk-free interest rate		0.7	%		0.6	%		0.7	%		0.6	%

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 three and six months ended June 30, 2013 and 2012 was as follows (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Cost of revenue — service	$	63	$	100	$	136	$	207
Selling, general and administrative		162		278		311		622
Research and development		29		30		59		63
Total stock-based compensation expense	$	254	$	408	$	506	$	892
Per diluted share	$	0.02	$	0.04	$	0.05	$	0.08

Summary of stock option activity under the plans

The following table summarizes stock option activity under the Plans for the six months ended June 30, 2013:

Stock Options	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Balance at January 1, 2013		1,539,618		$	3.55
Granted at fair value		172,530			3.11
Exercised		(3,000	)		2.67
Forfeited		(30,622	)		3.58
Expired		(68,339	)		4.53
Balance at June 30, 2013		1,610,187		$	3.47		3.89	$	251,000
Vested and expected to vest at June 30, 2013		1,551,976		$	3.47		3.81	$	251,000
Exercisable at June 30, 2013		1,200,936		$	3.46		3.09	$	247,000

Summary of certain information about stock options

The following table summarizes certain information about stock options for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Weighted-average grant-date fair value of option grants for the period	$	0	$	1.88	$	1.65		2.23
Options in-the-money at period end		626,000		616,000		626,000		616,000
Aggregate intrinsic value of options exercised	$	1,000	$	1,000	$	1,000	$	33,000

Summary of Restricted Stock Unit activity

The following table summarizes RSU activity for the six months ended June 30, 2013:

	Number of Shares			Weighted Average Grant Date Fair Value
Unvested at December 31, 2012		236,513		$	4.95
Granted		83,383			2.75
Vested		(85,725	)		4.39
Forfeited		(4,558	)		6.72
Unvested at June 30, 2013		229,613		$	4.75
Expected to vest after June 30, 2013		201,161		$	4.33

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 June 30, 2013:

	June 30, 2013
Stock options outstanding		1,610,187
Restricted stock units outstanding		229,613
Stock options available for future grant		1,004,755
Common stock reserved for future issuance		2,844,555