Stock-Based Compensation

3 Months Ended

Dec. 28, 2012

Stock-Based Compensation

5. Stock-Based Compensation

The Company has stock-based incentive plans in effect that provide for the grant of stock options, unrestricted stock, restricted stock units and other stock-awards to employees and non-employee directors. These stock-based incentive plans include inducement grants that are occasionally made to new employees of the Company. The Company also provides an employee stock purchase plan for all eligible employees. The fair value of stock-based awards are estimated on the date of grant and recognized as an expense ratably over the requisite service period.

The following table presents stock-based compensation by functional line item presented on the unaudited consolidated condensed statements of operations:

	Three Months Ended
	December 28,		December 30,
	2012		2011
	(in thousands)
Cost of goods sold	$	45	$	(43	)
Research and development		913		652
Selling, general and administrative		1,713		1,541
Total stock-based compensation	$	2,671	$	2,150

A management bonus accrual of $380,000 was recorded during the three months ended December 28, 2012. The Company expects to pay 75% of the bonus in cash and 25% in equity awards. The equity award portion of the bonus is included in the selling, general and administrative line item in the above table.

Stock option grant date fair value was estimated using the Black-Scholes pricing model with the following weighted-average assumptions:

	Three Months Ended
	December 28,		December 30,
	2012		2011
Weighted-average assumptions:
Expected option life		*		3.5 years
Risk-free interest rate		*		0.6	%
Expected volatility		*		91	%
Dividend yield		*		—
Weighted-average grant date fair value per share		*	$	3.26

* No stock options were granted during the period.

Stock Option Awards

The following tables summarize stock option activity:

						Weighted-Average		Aggregate
	Number			Weighted-Average		Remaining		Intrinsic
	of Shares			Exercise Price		Contractual Term		Value
	(in thousands)							(in thousands)
Outstanding at September 28, 2012		2,375		$	6.71		5.1 years	$	648
Granted		—			—
Exercised		(73	)		2.10
Forfeited or expired		(143	)		9.27
Outstanding at December 28, 2012		2,159		$	6.69		5.2 years	$	998
Vested and expected to vest		2,085		$	6.69		5.2 years	$	991
Exercisable at December 28, 2012		1,330		$	6.61		4.3 years	$	920

	Remaining
	Unrecognized		Remaining
	Compensation		Years
Vesting Condition	Cost		to Vest
	(in thousands)
Service-based	$	2,245		0.9

Stock Awards

The following tables summarize stock award activity:

				Weighted-
				Average
	Number			Grant Date		Fair Value of
	of Shares			Fair Value		Shares Vested
	(in thousands)					(in thousands)
Outstanding at September 28, 2012		2,620		$	6.29
Granted		344			3.63
Vested		(225	)		6.99	$	774
Forfeited		(167	)		8.22
Outstanding at December 28, 2012		2,572		$	6.09
				Remaining
				Unrecognized		Remaining
				Compensation		Years
Vesting Condition				Cost		to Vest
				(in thousands)
Service-based					11,447		0.9
Market-based					5		0.1
Stock awards					11,452