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Shareholders' Equity (Tables)
9 Months Ended
Sep. 30, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [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,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Dividend yield

 

0

%

 

 

0

%

 

 

0

%

 

 

0

%

Expected life

3.3 years

 

 

4 years

 

 

3.3 years

 

 

4 years

 

Expected volatility

 

57

%

 

 

58

%

 

 

59

%

 

 

62

%

Risk-free interest rate

 

1.4

%

 

 

1.1

%

 

 

1.3

%

 

 

0.8

%

 

Stock-Based Compensation Expense

The impact on our results of operations of stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 was as follows (in thousands, except per share amounts):

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Cost of revenue — service

$

69

 

 

$

48

 

 

$

146

 

 

$

184

 

Selling, general and administrative

 

144

 

 

 

145

 

 

 

510

 

 

 

456

 

Research and development

 

15

 

 

 

27

 

 

 

35

 

 

 

86

 

Total stock-based compensation expense

$

228

 

 

$

220

 

 

$

691

 

 

$

726

 

Per diluted share

$

0.02

 

 

$

0.02

 

 

$

0.06

 

 

$

0.07

 

 

Summary of Stock Option Activity

The following table summarizes stock option activity under the Plans for the nine months ended September 30, 2014:

 

Stock Options

 

Number of

Shares

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Life

(in years)

 

 

Aggregate

Intrinsic

Value

 

Balance at January 1, 2014

 

 

1,515,621

 

 

$

3.36

 

 

 

 

 

 

 

 

 

Granted

 

 

740,458

 

 

 

3.48

 

 

 

 

 

 

 

 

 

Exercised

 

 

(374,565

)

 

 

2.49

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(96,531

)

 

 

3.27

 

 

 

 

 

 

 

 

 

Expired

 

 

(258,671

)

 

 

4.34

 

 

 

 

 

 

 

 

 

Balance at September 30, 2014

 

 

1,526,312

 

 

$

3.48

 

 

 

6.91

 

 

$

954,646

 

Vested and expected to vest at September 30, 2014

 

 

1,407,188

 

 

$

3.48

 

 

 

6.73

 

 

$

900,866

 

Exercisable at September 30, 2014

 

 

593,423

 

 

$

3.50

 

 

 

3.90

 

 

$

498,217

 

 

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, 2014 and 2013:

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Weighted-average grant-date fair value of option

   grants for the period

$

1.74

 

 

$

 

 

$

1.71

 

 

 

1.07

 

Options in-the-money at period end

 

425,877

 

 

 

541,000

 

 

 

425,877

 

 

 

541,000

 

Aggregate intrinsic value of options exercised

$

171,558

 

 

$

 

 

$

412,781

 

 

$

1,000

 

 

Summary of Restricted Stock Unit Activity

The following table summarizes RSU activity for the nine months ended September 30, 2014:

 

 

Number of

Shares

 

 

Weighted

Average

Grant Date Fair

Value

 

Unvested at December 31, 2013

 

187,382

 

 

$

4.40

 

Granted

 

102,735

 

 

 

3.16

 

Vested

 

(132,421

)

 

 

3.70

 

Forfeited

 

(56,732

)

 

 

5.54

 

Unvested at September 30, 2014

 

100,964

 

 

$

3.43

 

Expected to vest after September 30, 2014

 

96,371

 

 

$

3.37

 

 

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:

 

 

September 30,

2014

 

Stock options outstanding

 

1,526,312

 

Restricted stock units outstanding

 

100,964

 

Stock awards available for future grant

 

706,053

 

Common stock reserved for future issuance

 

2,333,329