Stock Compensation

6 Months Ended

Jun. 30, 2011

Stock Compensation [Abstract]

Stock Compensation

7. Stock Compensation

During the three months ended June 30, 2011, the Company granted 198,000 stock options and had exercises of 16,000 options. During the six months ended June 30, 2011, the Company granted 213,000 stock options and had exercises of 18,000 options. As of June 30, 2011, there were approximately 1.3 million options outstanding.

During the three and six months ended June 30, 2011, the Company granted 80,000 shares of restricted stock and none of those shares have vested. As of June 30, 2011, there were 80,000 shares of restricted stock outstanding.

The following table summarizes stock compensation for the three and six months ended June 30, 2011 and 2010:

	Three months ended June 30,				Six months ended June 30,
	2011		2010		2011		2010
	(in thousands)
Cost of revenue	$	5	$	228	$	226	$	420
General and administrative		109		294		393		499
	$	114	$	522	$	619	$	919

As of June 30, 2011, there was approximately $5.4 million of total unrecognized compensation cost related to unvested stock compensation arrangements. This cost is expected to be fully amortized over the next five years, with approximately $1.0 million, $1.8 million, $1.5 million, $0.9 million, and $0.2 million amortized during the remainder of 2011, 2012, 2013, 2014, and 2015, respectively. The cost of the options is included in the Company’s Consolidated Statement of Income before or in conjunction with the vesting of options.