Note 7 - Stockholders' Equity and Stock-based Compensation Expense

3 Months Ended

Mar. 31, 2015

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

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

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

Share Repurchase Program

On February 18, 2015, the Company’s Board of Directors modified Cutera, Inc.’s stock buyback program (“Modified Stock Buyback Program”), from $10 million to $40 million, under which the Company’s issued and outstanding common shares can be repurchased through a 10b5-1 program based on predetermined pricing and volume parameters, as well as open-market purchase that are subject to management discretion and regulatory restrictions.

In the quarter ended March 31, 2015, the Company repurchased 386,155 shares of its common stock for approximately $5.21 million. As of March 31, 2015, there remained an additional $34.8 million 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. All shares repurchased are retired and returned to authorized but unissued status.

Stock-based Compensation Expense

Stock-based compensation expense by department recognized during the three months ended March 31, 2015 and 2014 were as follows (in thousands):

	Three Months Ended
	March 31,
	2015		2014
Cost of revenue	$	103	$	132
Sales and marketing		185		71
Research and development		182		124
General and administrative		491		298
Total stock-based compensation expense	$	961	$	625

Under the 2004 Equity Incentive Plan, as amended, the Company issued 648,653 shares of common stock during the three months ended March 31, 2015, in conjunction with stock options exercised.

During the three months ended March 31, 2015, the following number of equity awards of the Company’s common stock was granted (in thousands):

	Shares
Stock options		70
Restricted stock units		13
Performance stock units		—

As of March 31, 2015, there was $3.9 million of unrecognized compensation expense, net of projected forfeitures, related to non-vested equity awards. The expense is expected to be recognized over the remaining weighted-average period of 2.4 years.