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Shareholders' Equity (Tables)
9 Months Ended
Sep. 30, 2016
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,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Dividend yield

 

0

%

 

 

0

%

 

 

0

%

 

 

0

%

Expected life

3.3 years

 

 

3.3 years

 

 

3.4 years

 

 

3.3 years

 

Expected volatility

 

55

%

 

 

53

%

 

 

55

%

 

 

52

%

Risk-free interest rate

 

1.0

%

 

 

1.3

%

 

 

1.1

%

 

 

1.2

%

 

Stock-Based Compensation Expense

The impact on our results of operations from stock-based compensation expense was as follows (in thousands, except per share amounts):

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Cost of revenue — service

$

(4

)

 

$

133

 

 

$

169

 

 

$

351

 

Selling, general and administrative

 

262

 

 

 

298

 

 

 

618

 

 

 

616

 

Research and development

 

22

 

 

 

23

 

 

 

121

 

 

 

55

 

Total stock-based compensation expense

$

280

 

 

$

454

 

 

$

908

 

 

$

1,022

 

Per diluted share

$

0.02

 

 

$

0.04

 

 

$

0.07

 

 

$

0.08

 

 

Summary of Stock Option Activity

The following table summarizes stock option activity under the Plans for the nine-month period ended September 30, 2016:

 

Stock Options

 

Number of

Shares

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Life

(in years)

 

 

Aggregate

Intrinsic

Value

 

Balance at January 1, 2016

 

 

1,778,697

 

 

$

4.43

 

 

 

 

 

 

 

 

 

Granted

 

 

307,700

 

 

 

5.48

 

 

 

 

 

 

 

 

 

Exercised

 

 

(273,320

)

 

 

3.19

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(380,472

)

 

 

5.31

 

 

 

 

 

 

 

 

 

Expired

 

 

(51,367

)

 

 

6.13

 

 

 

 

 

 

 

 

 

Balance at September 30, 2016

 

 

1,381,238

 

 

$

4.61

 

 

 

7.31

 

 

$

1,176,876

 

Vested and expected to vest at September 30, 2016

 

 

1,305,619

 

 

$

4.55

 

 

 

7.21

 

 

$

1,165,259

 

Exercisable at September 30, 2016

 

 

773,084

 

 

$

4.02

 

 

 

6.24

 

 

$

948,542

 

 

Summary of Certain Information about Stock Options

The following table summarizes certain information about stock options:

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Weighted-average grant-date fair value of option

   grants for the period

$

2.53

 

 

$

3.16

 

 

$

2.83

 

 

$

3.10

 

Options in-the-money at period end

 

766,101

 

 

 

1,762,893

 

 

 

766,101

 

 

 

1,762,893

 

Aggregate intrinsic value of options exercised

$

226,430

 

 

$

265,641

 

 

$

568,516

 

 

$

616,417

 

 

Summary of Restricted Stock Unit Activity

The following table summarizes RSU activity for the nine-month period ended September 30, 2016:

 

  

Number of

Shares

 

 

Weighted

Average

Grant Date Fair

Value

 

Unvested at January 1, 2016

 

104,463

 

 

$

5.97

 

Granted

 

54,870

 

 

 

5.65

 

Vested

 

(56,081

)

 

 

5.94

 

Forfeited

 

(15,969

)

 

 

5.77

 

Unvested at September 30, 2016

 

87,283

 

 

$

5.83

 

Expected to vest after September 30, 2016

 

78,781

 

 

$

5.81

 

 

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 as of September 30, 2016:

 

Stock options outstanding

 

1,381,238

 

RSUs outstanding

 

87,283

 

Stock awards available for future grant

 

1,105,715

 

Common stock reserved for future issuance

 

2,574,236