STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2013

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

8. STOCKHOLDERS' EQUITY

Common Stock Transactions

On January 9, 2013, the Company issued 825,060 unregistered shares with a value of approximately $14.7 million (gross value), pursuant to the Company's acquisition of Vineyard related to purchase consideration in exchange for one hundred percent of the outstanding securities of Vineyard, and deferred compensation to the founders of Vineyard.  On February 13, 2013, the Company filed with the SEC a Registration Statement on Form S-3 covering the resale of these shares. The Registration Statement on Form S-3 was declared effective by the SEC on March 7, 2013. Pursuant to the agreement, approximately 518,000 shares were transferred to the former Vineyard shareholders at closing, with the remainder being held in escrow for a period of 18 or 36 months from the closing of the acquisition.

On April 25, 2012, the Company completed a registered offering of 4.5 million shares of common stock.  The shares were sold to the public at $21.00 per share for an aggregate gross sales price of $94.5 million.  The Company received net proceeds of approximately $88.0 million after deducting underwriting commissions and other offering expenses.

Equity Incentive Plan and Stock Option Activity

The Company's 2007 Equity Incentive Plan, as amended (the "Plan"), provides for the grant of stock options and restricted stock awards ("RSAs") to eligible employees, consultants, and non-employee directors of the Company.  As of March 31, 2013, 359,210 shares of the Company's common stock were available for future grant under the Plan.  On January 9, 2013, the Company granted to certain former Vineyard employees who became employees of the Company upon closing options to purchase an aggregate of 412,000 shares of the Company's common stock.  These options were granted outside of the Plan as inducements material to such employees joining the Company.

The following table summarizes the Company's stock option activity for the three months ended March 31, 2013 and 2012 (in thousands, except per share data):

	Three Months Ended March 31,
	2013					2012
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at the beginning of the period		1,332		$	14.65		1,198		$	10.35
Granted		467			17.22		65			19.16
Exercised		(13	)		7.85		(78	)		10.36
Cancelled		(52	)		19.33		(24	)		11.39
Outstanding at the end of the period		1,734		$	15.55		1,161		$	10.87
Vested and expected to vest at the end of the period		1,590		$	15.30		1,114		$	10.79
Exercisable at the end of the period		631		$	11.76		689		$	10.42

As of March 31, 2013, the aggregate intrinsic value of options outstanding, options vested and expected to vest and options exercisable was $2.2 million, $2.2 million and $1.7 million, respectively. As of March 31, 2013, the weighted average remaining contractual life of options outstanding, options vested and expected to vest and options exercisable was 8.43 years, 8.33 years and 6.67 years, respectively. The total intrinsic value of options exercised during the three months ended March 31, 2013 and 2012 was $0.1 million and $0.7 million, respectively.

The weighted average remaining contractual life and weighted average per share exercise price of options outstanding and of options exercisable as of March 31, 2013 were as follows (in thousands, except exercise prices and years):

		Options Outstanding							Options Exercisable
Range of Exercise Prices			Number of Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price			Number of Shares		Weighted Average Exercise Price
$	4.30 –  $ 5.80			223		6.73	$	5.07			169	$	5.06
	6.00 –   9.72			152		5.68		7.62			133		7.46
	9.93  –   14.49			245		10.24		13.39			165		13.90
	14.50  –   33.50			1,114		8.77		19.21			164		20.01
$	4.30 – $ 33.50			1,734		8.40	$	15.55			631	$	11.76

The following table summarizes the Company's RSA activity for the three months ended March 31, 2013 and 2012 (in thousands, except per share data):

	Three Months Ended March 31,
	2013					2012
	Awards			Weighted Average Grant Date Fair Value		Awards			Weighted Average Grant Date Fair Value
Unvested outstanding at the beginning of the period		253		$	15.79		136		$	9.24
Granted		7			13.27		3			15.64
Vested		(6	)		19.40		(10	)		6.40
Unvested outstanding at the end of the period		254		$	15.64		129		$	9.61

The weighted average remaining contractual term for the RSAs outstanding as of March 31, 2013 was 2.99 years. As of March 31, 2013, the aggregate pre-tax intrinsic value of RSAs outstanding was $2.8 million.