Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Options and Awards

Awards granted other than an option or stock appreciation right reduce the common stock shares available for grant under the program by 1.75 shares for each share issued.

	September 30,
	2014
Common stock shares available for grant		2,599,060
Common stock options outstanding		3,278,096
Restricted stock awards outstanding		35,364
Restricted stock units outstanding		543,391

Schedule of Employee Stock Purchase Plan

The intrinsic value listed below is calculated as the difference between the market value on the date of purchase and the purchase price of the shares.

	Nine Months
	Ended
	September 30,
	2014
Shares purchased under ESPP		38,298
Average price of shares purchased under ESPP	$	9.95
Intrinsic value of shares purchased under ESPP	$	107,000

Schedule of Standard and Market-based Stock Options Activity

The following table sets forth the summary of standard option activity under the Company’s stock option plans for the nine months ended September 30, 2014 and year ended December 31, 2013:

	Nine Months Ended September 30, 2014			Year Ended December 31, 2013
Beginning outstanding balance		3,227,167			3,155,631
Granted		331,380			1,058,700
Exercised		(194,269	)		(956,633	)
Forfeited and cancelled		(136,182	)		(30,531	)
Ending outstanding balance		3,228,096			3,227,167
Aggregate intrinsic value of options exercised	$	1,099,000		$	5,774,000
Weighted average fair value of options granted		5.53			5.63

 The following table sets forth the summary of the market-based option activity under the Company’s stock option plans for the nine months ended September 30, 2014:

	Nine Months
	Ended
	September 30,
	2014
Beginning outstanding balance		0
Granted		50,000
Exercised		0
Forfeited and cancelled		0
Ending outstanding balance		50,000
Aggregate intrinsic value of options exercised	$	0
Weighted average fair value of options granted		5.71

Schedule of Information Regarding Standard and Market Condition Based Stock Options Outstanding

Information regarding these standard stock options outstanding at September 30, 2014 and December 31, 2013 is summarized below:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (In millions)
December 31, 2013
Options outstanding		3,227,167	$	7.78		5.46	$	9.9
Options vested and expected to vest using estimated forfeiture rates		2,994,044		7.61		5.41		9.6
Options exercisable		1,774,546		6.67		4.95		7.5
September 30, 2014
Options outstanding		3,228,096	$	8.25		4.92	$	5.0
Options vested and expected to vest using estimated forfeiture rates		3,083,395		8.14		4.88		5.0
Options exercisable		1,973,156		7.14		4.46		4.6

Information regarding these market condition based stock options outstanding at September 30, 2014 is summarized below:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (In millions)
September 30, 2014
Options outstanding		50,000	$	11.94		6.40	$	0.0
Options vested and expected to vest using estimated forfeiture rates		44,490		11.94		6.40		0.0
Options exercisable		0		0.00		0.00		0.0

Schedule of Restricted Stock Units Activity

RSU activity for the nine months ended September 30, 2014 and year ended December 31, 2013 was as follows:

	Nine Months Ended September 30, 2014			Year Ended December 31, 2013
Beginning outstanding balance		668,056			708,651
Awarded		215,630			294,150
Released		(292,636	)		(303,882	)
Forfeited		(47,659	)		(30,863	)
Ending outstanding balance		543,391			668,056
Weighted average grant date fair value of RSUs granted	$	11.85		$	7.12
Total fair value of RSUs released		3,261,000			2,806,000
Total fair value of RSUs remaining unvested		4,662,000			6,934,000

Schedule of Information Regarding Restricted Stock Units Outstanding

Information regarding RSUs outstanding at September 30, 2014 and December 31, 2013 is summarized below:

	Number of Shares		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (In millions)		Fair Value (In millions)
December 31, 2013
RSUs outstanding		668,056		0.91	$	6.9	$	6.9
RSUs vested and expected to vest using estimated forfeiture rates		583,711		0.89		6.1
September 30, 2014
RSUs outstanding		543,391		0.95	$	4.7	$	4.7
RSUs vested and expected to vest using estimated forfeiture rates		471,343		0.91		4.0

Schedule of Restricted Stock Awards Activity

Restricted stock award activity for the nine months ended September 30, 2014 and year ended December 31, 2013 was as follows:

	Nine Months Ended September 30, 2014			Year Ended December 31, 2013
Beginning outstanding balance		44,000			44,000
Awarded		35,364			44,000
Released		(44,000	)		(44,000	)
Forfeited		0			0
Ending outstanding balance		35,364			44,000
Weighted average grant date fair value of restricted stock awarded	$	10.97		$	14.09
Total fair value of restricted stock awards released		483,000			676,000

Schedule of Stock Options, Market Condition Based Stock Options and Employee Stock Purchase Plan, Valuation Assumptions

The assumptions used to value option grants under the Company’s stock plans were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Standard Stock Options
Expected life (in years)		4.7			4.7			4.7			4.9
Volatility		57	%		64	%		57	%		68	%
Interest rate		1.5	%		1.3	%		1.4	%		0.8	%
Dividend yield		N/A			N/A			N/A			N/A

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2014		2014
Market Condition Based Stock Options
Expected life (in years)		N/A		7.0
Volatility		N/A		66	%
Interest rate		N/A		2.2	%
Dividend yield		N/A		N/A

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Employee Stock Purchase Plan
Expected life (in years)		0.5			0.5			0.5			0.5
Volatility		46	%		69	%		43	%		67	%
Interest rate		0.1	%		0.8	%		0.1	%		0.1	%
Dividend yield		N/A			N/A			N/A			N/A

Schedule of Stock-Based Compensation

Total stock-based compensation recognized in the condensed consolidated statements of income and comprehensive income is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)
Statement of Income Classifications
Sales and marketing	$	230	$	223	$	784	$	496
Research and development		265		231		1,008		807
General and administrative		636		795		2,266		2,135
Total	$	1,131	$	1,249	$	4,058	$	3,438