Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2013

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,
	2013			2012
Dividend yield		0	%		0	%
Expected life		4.2 years			3.8 years
Expected volatility		61	%		73	%
Risk-free interest rate		0.9	%		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 years ended December 31, 2013 and 2012 was as follows (in thousands, except per share amounts):


	Year Ended December 31,
	2013		2012
Cost of revenue—service	$	219	$	315
Selling, general and administrative		579		521
Research and development		100		115

Total stock-based compensation expense	$	898	$	951

Per diluted share	$	0.08	$	0.08

Summary of Stock Option Activity under Plans

The following table summarizes stock option activity under the Plans for 2013 and 2012:


Stock Options	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Balance at January 1, 2012		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
Granted at fair value		328,080			3.03
Exercised		(31,925	)		2.49
Forfeited		(130,131	)		3.23
Expired		(190,021	)		4.58

Balance at December 31, 2013		1,515,621		$	3.36		3.93	$	953,186

Vested and expected to vest at December 31, 2013		1,466,306		$	3.36		3.82	$	932,995

Exercisable at December 31, 2013		1,118,271		$	3.34		2.73	$	784,434

Summary of Certain Information about Stock Options

The following table summarizes certain information about stock options for 2013 and 2012:


	Year Ended December 31,
	2013		2012
Weighted average grant-date fair value for options granted during the year	$	1.59	$	2.02

Options in-the-money at December 31		734,130		606,666

Aggregate intrinsic value of options exercised	$	24,429	$	73,000

Summary of Restricted Stock Unit Activity

The following table summarizes restricted stock unit activity under the Stock Plan for 2013 and 2012:


	Number of Shares			Weighted Average Exercise Price
Unvested at December 31, 2012		241,248		$	5.91
Granted		177,592			3.49
Vested		(148,743	)		4.98
Forfeited		(33,584	)		6.07

Unvested at December 31, 2013		236,513		$	4.95
Granted		128,838			2.75
Vested		(171,404	)		3.82
Forfeited		(6,565	)		6.80

Unvested at December 31, 2013		187,382		$	4.40

Expected to vest after December 31, 2013		172,790		$	4.23

Summary of Shares of Common Stock Reserved for Future Issuance under Plans

The following table summarizes our shares of common stock reserved for future issuance under the Plans at December 31, 2013 and 2012:


	December 31,
	2013		2012
Stock options outstanding		1,515,621		1,539,618
Restricted stock units outstanding		187,382		236,513
Stock options available for future grant		1,024,941		1,157,149

Common stock reserved for future issuance		2,727,944		2,933,280