Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

Stock-Based Compensation Expense

The following table summarizes the components of stock-based compensation expense in the condensed consolidated statements of operations for the three months ended March 31, 2014 and 2013:

	Three months ended March 31,
	2014		2013
Cost of services	$	69	$	67
Cost of product sales		30		23
Selling, general and administrative		722		496
Product development		60		40
Total	$	881	$	626

Summary of Stock Options

A summary of the status of the Company’s stock options as of March 31, 2014 is as follows:

						Weighted-Average
						Remaining		Aggregate
	Number of			Weighted-Average		Contractual		Intrinsic Value
	Shares			Exercise Price		Term (years)		(In thousands)
Outstanding at January 1, 2014		88,446		$	4.04
Granted		—			—
Exercised		(20,792	)		2.98
Forfeited or expired		(17,654	)		2.91
Outstanding at March 31, 2014		50,000		$	4.88		1.09	$	99
Exercisable at March 31, 2014		50,000		$	4.88		1.09	$	99
Vested at March 31, 2014		50,000		$	4.88		1.09	$	99

Time-Based Stock Appreciation Rights [Member]

Summary of Stock Appreciation Rights

A summary of the Company’s time-based SARs for the three months ended March 31, 2014 is as follows:

						Weighted-Average
						Remaining		Aggregate
	Number of			Weighted-Average		Contractual		Intrinsic Value
	Shares			Exercise Price		Term (years)		(In thousands)
Outstanding at January 1, 2014		3,611,567		$	4.20
Granted		54,000			7.62
Exercised		(10,700	)		2.31
Forfeited or expired		(39,800	)		5.05
Outstanding at March 31, 2014		3,615,067		$	4.25		6.71	$	9,674
Exercisable at March 31, 2014		2,767,700		$	3.95		5.93	$	8,316
Vested and expected to vest at March 31, 2014		3,615,067		$	4.25		6.71	$	9,674

Summary of Restricted Stock Units

A summary of the Company’s time-based RSUs for the three months ended March 31, 2014 is as follows:

	Shares			Weighted-Average Grant Date Fair Value
Balance at January 1, 2014		85,270		$	3.32
Granted		90,255			7.04
Vested		(65,270	)		3.83
Forfeited or expired		—			—
Balance at March 31, 2014		110,255		$	6.06

Performance Units [Member]

Summary of Stock Appreciation Rights

A summary of the Company’s performance-based SARs for the three months ended March 31, 2014 is as follows:

						Remaining		Aggregate
	Number of			Weighted-Average		Contractual		Intrinsic Value
	Shares			Exercise Price		Term (years)		(In thousands)
Outstanding at January 1, 2014		865,713		$	5.37
Granted		—			—
Exercised		(39,362	)		3.55
Forfeited or expired		(13,600	)		6.33
Outstanding at March 31, 2014		812,751		$	5.44		6.16	$	2,101
Exercisable at March 31, 2014		812,751		$	5.44		6.16	$	2,101
Vested and expected to vest at March 31, 2014		812,751		$	5.44		6.16	$	2,101

Fair Value of Stock Appreciation Rights Estimated

As the MPUs contain both a performance and service condition, the MPUs have been treated as a series of three separate awards or tranches for purposes of recognizing stock-based compensation expense. The Company recognizes stock-based compensation expense on a tranche-by-tranche basis over the requisite service period for that specific tranche. The Company estimated the fair value of the MPUs using a Monte Carlo Simulation Model that used the following assumptions:

	Three months ended March 31,
	2014	2013
Risk-free interest rate	0.09% to 0.79%	0.13% to 0.35%
Estimated volatility factor	40.00% to 45.00%	40.00%
Expected dividends	None	None

Performance-Based Restricted Stock Units [Member]

Fair Value of Stock Appreciation Rights Estimated

The fair value of each time and performance SAR award is estimated on the date of grant using the Black-Scholes option pricing model with the assumptions described below for the periods indicated is based the Company’s historical volatility over the expected terms of SAR awards. Estimated forfeitures were based on voluntary and involuntary termination behavior as well as analysis of actual forfeitures. The risk-free interest rate was based on the U.S. Treasury yield curve at the time of the grant over the expected term of the SAR grants.

	Three months ended March 31,
	2014	2013
Risk-free interest rate	1.81% and 1.94%	1.00% to 1.41%
Expected life (years)	6.0	5.50 and 6.0
Estimated volatility factor	67.05% and 67.34%	73.74% to 74.67%
Expected dividends	None	None

Summary of Restricted Stock Units

A summary of the Company’s performance- based RSUs for the three months ended March 31, 2014 is as follows:

	Shares			Weighted-Average Grant Date Fair Value
Balance at January 1, 2014		313,000		$	4.26
Granted		—			—
Vested		(200,938	)		3.87
Forfeited or expired		(57,062	)		4.04
Balance at March 31, 2014		55,000		$	5.92