STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2013

Employee Stock-based Compensation Expense

The following table summarizes employee stock-based compensation expense, net of income tax, as it relates to the Company's statement of operations for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013		2012
Cost of sales	$	112	$	34
Research and development		500		97
Sales and marketing		587		322
General and administrative		399		258
Total stock-based compensation expense	$	1,598	$	711

Stock-based Compensation, Valuation Assumptions

The following assumptions were used in determining the fair value of stock options granted during the three months ended March 31, 2013 and 2012:

	Three Months Ended March 31,
	2013			2012
Expected term (years)		4.75			4.80
Expected volatility		78.1	%		72.0	%
Risk-free interest rate		0.85	%		1.02	%
Expected dividend yield		—	%		—	%