STOCK-BASED COMPENSATION PLANS (Tables)

9 Months Ended

Sep. 28, 2012

STOCK-BASED COMPENSATION PLANS

Schedule of activity related to outstanding stock options

	Number of shares			Weighted average exercise price		Weighted average remaining contractual life (years)		Aggregate intrinsic value (in thousands)
Outstanding at January 1, 2012		22,627,885		$	3.82
Granted		6,034,883		$	2.67
NET outstanding options converted to Sonus options		994,800		$	1.11
Exercised		(113,164	)	$	1.39
Forfeited		(2,063,146	)	$	2.85
Expired		(1,275,244	)	$	4.90
Outstanding at September 28, 2012		26,206,014		$	3.49		6.31	$	816
Vested or expected to vest at September 28, 2012		24,524,258		$	3.55		6.14	$	805
Exercisable at September 28, 2012		13,362,153		$	4.36		3.95	$	539

Schedule of assumptions used to estimate the fair value of options at the date of grant using the Black-Scholes option pricing model

	Three months ended September 28, 2012	Nine months ended September 28, 2012
Risk-free interest rate	0.67%	0.67%–0.89%
Expected dividend yield	—	—
Weighted average volatility	66.51%	67.58%
Expected life (years)	4.5	4.5

Schedule of additional information regarding stock options

	Three months ended September 28, 2012		Nine months ended September 28, 2012
Weighted average grant date fair value of stock options granted	$	1.10	$	1.43
Total intrinsic value of stock options exercised (in thousands)	$	64	$	96
Cash received from the exercise of stock options (in thousands)	$	83	$	151

Schedule of activity related to restricted stock grants

	Shares			Weighted average grant-date fair value
Unvested balance at January 1, 2012		602,403		$	2.38
Granted		845,344		$	2.67
Unvested NET RSUs converted to Sonus RSUs		82,110		$	1.86
Vested		(335,000	)	$	2.75
Forfeited		(195,131	)	$	2.90
Unvested balance at September 28, 2012		999,726		$	2.36

Schedule of activity related to performance stock awards

	Shares			Weighted average grant-date fair value
Unvested balance at January 1, 2012		1,715,056		$	3.08
Granted		421,348		$	1.78
Vested		—			—
Forfeited		(1,715,056	)	$	3.08
Unvested balance at September 28, 2012		421,348		$	1.78

Schedule of stock-based compensation expenses which are included in condensed consolidated statement of operations

	Three months ended				Nine months ended
	September 28, 2012		September 30, 2011		September 28, 2012		September 30, 2011
Product cost of revenue	$	41	$	100	$	130	$	317
Service cost of revenue		211		258		595		1,032
Research and development		524		505		1,773		1,565
Sales and marketing		500		408		1,458		1,468
General and administrative		1,124		796		2,584		1,926
	$	2,400	$	2,067	$	6,540	$	6,308