Stockholders' Equity and Stock-based Compensation Expense

9 Months Ended

Sep. 30, 2013

Stockholders' Equity and Stock-based Compensation Expense [Abstract]

Stockholders' Equity and Stock-based Compensation Expense

Note 7. Stockholders’ Equity and Stock-based Compensation Expense

Share Repurchase Program

On August 5, 2013, the Company’s Board of Directors modified Cutera, Inc.’s stock buyback program, originally adopted in November 2012, to permit an additional $10 million of its issued and outstanding common shares to be repurchased. As modified, the stock buyback program permits the Company to purchase an aggregate of $20 million of its common stock through a 10b5-1 program based on predetermined pricing and volume parameters, as well as open-market purchases that are subject to management discretion and regulatory restrictions.

In the quarter ended September 30, 2013, the Company repurchased 796,919 shares of its common stock for approximately $7.6 million. As of September 30, 2013, there remained an additional $12.4 million of the Company's common stock to be purchased under the modified stock buyback program. The number of shares to be repurchased and the timing of such repurchases will be based on several factors, including the price of the Company's common stock, regulatory restrictions, and general market and business conditions.

Stock-based Compensation Expense

Stock-based compensation expense by department recognized during the three and nine-month periods ended September 30, 2013 and 2012 were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Cost of revenue	$	159	$	169	$	484	$	480
Sales and marketing		182		177		579		476
Research and development		103		126		293		419
General and administrative		304		337		1,014		959
Total stock-based compensation expense	$	748	$	809	$	2,370	$	2,334

Under the 2004 Equity Incentive Plan, the Company issued 556,674 shares of common stock during the nine-month period ended September 30, 2013, in conjunction with stock options exercised.

During the nine-month period ended September 30, 2013, the following number of equity awards of the Company’s common stock was granted (in thousands):

	Shares
Stock options		1,007
Restricted stock units		189
Performance stock units		34
Total		1,230

As of September 30, 2013, there was $5.1 million of unrecognized compensation expense, net of projected forfeitures related to non-vested stock awards. The expense is expected to be recognized over the remaining weighted-average period of 2.8 years.