Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2013

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 September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Dividend yield		0	%		0	%		0	%		0	%
Expected life		4 years			4 years			4 years			4 years
Expected volatility		58	%		73	%		62	%		73	%
Risk-free interest rate		1.1	%		0.5	%		0.8	%		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 nine months ended September 30, 2013 and 2012 was as follows (in thousands, except per share amounts):  

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Cost of revenue — service	$	48	$	34		$	184	$	242
Selling, general and administrative		145		(267	)		456		355
Research and development		27		26			86		89
Total stock-based compensation expense	$	220	$	(207	)	$	726	$	686
Per diluted share	$	0.02	$	(0.02	)	$	0.07	$	0.06

Summary of Stock Option Activity under the Plans

The following table summarizes stock option activity under the Plans for the nine months ended September 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		270,080			2.98
Exercised		(3,000	)		2.67
Forfeited		(39,808	)		3.50
Expired		(150,127	)		4.24
Balance at September 30, 2013		1,616,763		$	3.40		4.00	$	257,000
Vested and expected to vest at September 30, 2013		1,557,509		$	3.40		3.91	$	257,000
Exercisable at September 30, 2013		1,156,660		$	3.41		2.89	$	254,000

Summary of Certain Information about Stock Options

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Weighted-average grant-date fair value of option grants for the period	$	—	$	—	$	1.07		2.23
Options in-the-money at period end		541,000		616,350		541,000		616,350
Aggregate intrinsic value of options exercised	$	0	$	34,000	$	1,000	$	67,000

Summary of Restricted Stock Unit Activity

The following table summarizes RSU activity for the nine months ended September 30, 2013:

	Number of Shares			Weighted Average Grant Date Fair Value
Unvested at January 1, 2013		236,513		$	4.95
Granted		128,838			2.75
Vested		(131,777	)		3.97
Forfeited		(5,275	)		6.75
Unvested at September 30, 2013		228,299		$	4.23
Expected to vest after September 30, 2013		216,377		$	4.05

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 September 30, 2013:

	September 30, 2013
Stock options outstanding		1,616,763
Restricted stock units outstanding		228,299
Stock options available for future grant		952,724
Common stock reserved for future issuance		2,797,786