Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Summary Components of Stock-Based Compensation Expense

The following table summarizes the components of stock-based compensation expense in the condensed consolidated statements of operations for the quarters and six months ended June 30, 2015 and 2014:

	Quarters ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
Cost of services	$	85	$	11	$	199	$	80
Cost of product sales		10		20		24		50
Selling, general and administrative		952		793		1,881		1,515
Product development		57		70		131		130
Total	$	1,104	$	894	$	2,235	$	1,775

Time-Based Stock Appreciation Rights [Member]

Summary of Stock Appreciation Rights

A summary of the Company’s time-based Stock Appreciation Rights (“SARs”) for the six months ended June 30, 2015 is as follows:

	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (In thousands)
Outstanding at January 1, 2015		3,853,367		$	4.53
Granted		270,000			6.23
Exercised		(106,950	)		4.15
Forfeited or expired		(50,000	)		4.83
Outstanding at June 30, 2015		3,966,417		$	4.65		6.00	$	8,608
Exercisable at June 30, 2015		3,318,417		$	4.24		5.27	$	8,633
Vested and expected to vest at June 30, 2015		3,966,417		$	4.65		6.00	$	8,608

Performance-Based Stock Appreciation Rights [Member]

Summary of Stock Appreciation Rights

A summary of the Company’s performance-based SARs for the six months ended June 30, 2015 is as follows:

	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (In thousands)
Outstanding at January 1, 2015		786,034		$	5.51
Granted		8,000			5.65
Exercised		(10,300	)		2.78
Forfeited or expired		(160	)		5.65
Outstanding at June 30, 2015		783,574		$	5.55		4.90	$	1,925
Exercisable at June 30, 2015		779,574		$	5.55		4.87	$	1,921
Vested and expected to vest at June 30, 2015		783,574		$	5.55		4.90	$	1,925

Fair Value of Stock Appreciation Rights Estimated

The fair value of each time-based and performance-based 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 the expected volatility was based on 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.

	Six months ended June 30,
	2015	2014
Risk-free interest rate	1.35% and 1.82%	1.81% and 1.94%
Expected life (years)	6.0	6.0
Estimated volatility factor	64.04% and 64.63%	66.59% to 67.34%
Expected dividends	None	None

Time-Based Restricted Stock Units [Member]

Summary of Restricted Stock Units

A summary of the Company’s time-based Restricted Stock Units (“RSUs”) for the six months ended June 30, 2015 is as follows:

	Shares			Weighted-Average Grant Date Fair Value
Balance at January 1, 2015		90,255		$	6.66
Granted		61,070			6.55
Vested		(90,255	)		7.04
Forfeited or expired		—			—
Balance at June 30, 2015		61,070		$	5.99

Performance-Based Restricted Stock Units [Member]

Summary of Restricted Stock Units

A summary of the Company’s performance-based RSUs for the six months ended June 30, 2015 is as follows:

	Shares			Weighted-Average Grant Date Fair Value
Balance at January 1, 2015		321,525		$	6.41
Granted		76,375			6.14
Vested		(137,129	)		6.09
Forfeited or expired		(15,673	)		6.21
Balance at June 30, 2015		245,098		$	6.51

Performance Units [Member]

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:

	Six months ended June 30,
	2015	2014
Risk-free interest rate	0.11% to 0.83%	0.07% to 0.68%
Estimated volatility factor	31.00% to 38.00%	40.00% to 46.00%
Expected dividends	None	None