Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

11. Stock-Based Compensation

Stock-based Compensation Expense

     The following table presents stock-based compensation expense included in the condensed consolidated statements of operations (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Cost of revenues	$	494	$	555	$	1,034	$	1,015
Selling and marketing		1,300		1,470		2,630		2,481
Research and development		324		630		666		1,031
General and administrative		1,169		1,328		2,371		2,348
	$	3,287	$	3,983	$	6,701	$	6,875

Stock Options and Restricted Stock Units

     The Company granted options to purchase 398,369 and 204,000 shares of common stock during the three months ended June 30, 2011 and 2010, respectively, and options to purchase 473,395 and 1,300,300 shares of common stock during the six months ended June 30, 2011 and 2010, respectively. The weighted-average fair value of options granted during the six months ended June 30, 2011 and 2010 was $11.22 and $5.52 per option, respectively.

     The Company awarded 102,239 restricted stock units during the three months ended June 30, 2011. The restricted stock units vest based on continued employment over a period of two or four years. The weighted-average fair value of restricted stock units granted during the six months ended June 30, 2011 was $18.94 per unit.

Performance Based Plans

     In May 2011, the Company’s Compensation Committee of the Board of Directors, or the Compensation Committee, approved the Company’s 2011 Performance Share Plan in which it committed to grant up to 285,670 restricted stock units to certain employees and executive officers based on the achievement of certain Company financial performance metrics for the year ending December 31, 2011. The restricted stock units, if awarded, vest over a requisite service period of three years. Further, in March 2011, the Compensation Committee approved the Company’s 2011 Corporate Bonus Plan. Payout under the 2011 Corporate Bonus Plan will be based on individual performance and the achievement of certain Company financial performance metrics for the year ending December 31, 2011 and will be paid in shares of the Company’s common stock, or in cash, at the discretion of the Compensation Committee. The estimated payout under the 2011 Corporate Bonus Plan is being recognized as compensation expense during 2011, with nearly all of this compensation expense classified as stock-based compensation expense, and has been classified as a liability on the Company’s condensed consolidated balance sheet.