Note 3 - Stock-based Compensation

6 Months Ended

Dec. 28, 2014

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

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

Note 3 – Stock-Based Compensation

The Company has a Long Term Incentive and Share Award Plan, which is more fully described in Note 12 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2014, that provides for the grant to eligible employees, consultants and directors of stock options, restricted shares, and other stock-based awards.

The amounts of stock-based compensation expense recognized in the periods presented are as follows:

	Three Months Ended				Six Months Ended
	December 30, 2014		December 29, 2013		December 28, 2014		December 29, 2013
			(in thousands)
Stock options	$	114	$	113	$	224	$	211
Restricted stock		1,401		1,032		2,558		2,000
Total		1,515		1,145		2,782		2,211
Deferred income tax benefit		543		431		1,024		831
Stock-based compensation expense, net	$	972	$	714	$	1,758	$	1,380

Stock-based compensation is recorded within the following line items of operating expenses:

	Three Months Ended				Six Months Ended
	December 28, 2014		December 29, 2013		December 28, 2014		December 29, 2013
			(in thousands)
Marketing and sales	$	500	$	275	$	817	$	648
Technology and development		106		68		169		175
General and administrative		909		802		1,796		1,388
Total	$	1,515	$	1,145	$	2,782	$	2,211

The following table summarizes stock option activity during the six months ended December 28, 2014:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (000s)
Outstanding at June 29, 2014		4,339,790		$	3.80
Granted		30,000		$	7.41
Exercised		(263,779	)	$	6.69
Forfeited		(216,474	)	$	8.44
Outstanding at December 28, 2014		3,889,537		$	3.37		4.14	$	19,280
Options vested or expected to vest at December 28, 2014		3,798,678		$	3.39		4.08	$	18,754
Exercisable at December 28, 2014		2,673,237		$	3.76		3.04	$	12,219

As of December 28, 2014, the total future compensation cost related to non-vested options, not yet recognized in the statement of income, was $1.8 million and the weighted average period over which these awards are expected to be recognized was 4.3 years.

The Company grants shares of Common Stock to its employees that are subject to restrictions on transfer and risk of forfeiture until fulfillment of applicable service conditions and, in certain cases, holding periods (Restricted Stock). The following table summarizes the activity of non-vested restricted stock awards during the six months ended December 28, 2014:

	Shares			Weighted Average Grant Date Fair Value
Non-vested at June 29, 2014		2,686,685		$	3.90
Granted		945,882		$	8.02
Vested		(1,145,649	)	$	3.48
Forfeited		(103,527	)	$	6.95
Non-vested at December 28, 2014		2,383,391		$	5.61

The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of December 28, 2014, there was $11.1 million of total unrecognized compensation cost related to non-vested restricted stock-based compensation to be recognized over the weighted-average remaining period of 2.6 years.