Stock-based Compensation (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2015 and 2014:

	Quarters ended					Nine months ended
	September 30,					September 30,
	2015		2014			2015		2014
Cost of services	$	57	$	49		$	256	$	127
Cost of product sales		11		(7	)		35		42
Selling, general and administrative		852		763			2,733		2,283
Product development		59		47			190		175
Total	$	979	$	852		$	3,214	$	2,627

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 nine months ended September 30, 2015 is as follows:

						Weighted-
						Average		Aggregate
				Weighted-		Remaining		Intrinsic
	Number of			Average		Contractual		Value
	Shares			Exercise Price		Term (years)		(In thousands)
Outstanding at  January 1, 2015		3,853,367		$	4.53
Granted		483,000			6.07
Exercised		(128,050	)		4.05
Forfeited or expired		(75,100	)		6.50
Outstanding at September 30, 2015		4,133,217		$	4.69		5.91	$	4,753
Exercisable at September 30, 2015		3,300,317		$	4.25		5.01	$	4,934
Vested and expected to vest at September 30, 2015		4,133,217		$	4.69		5.91	$	4,753

Performance-Based Stock Appreciation Rights [Member]

Summary of Stock Appreciation Rights

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

						Weighted-
						Average		Aggregate
				Weighted-		Remaining		Intrinsic
	Number of			Average		Contractual		Value
	Shares			Exercise Price		Term (years)		(In thousands)
Outstanding at  January 1, 2015		786,034		$	5.51
Granted		8,000			5.65
Exercised		(11,200	)		2.83
Forfeited or expired		(160	)		5.65
Outstanding at September 30, 2015		782,674		$	5.55		4.64	$	1,278
Exercisable at September 30, 2015		778,674		$	5.55		4.62	$	1,278
Vested and expected to vest at September 30, 2015		782,674		$	5.55		4.64	$	1,278

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.

	Nine months ended September 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	62.74%to 64.63%	66.07% 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 nine months ended September 30, 2015 is as follows:

	Shares			Weighted- Average Grant Date Fair Value
Balance at January 1, 2015		90,255		$	7.04
Granted		104,270			6.25
Vested		(90,255	)		7.04
Forfeited or expired		—			—
Balance at September 30, 2015		104,270		$	6.25

Performance-Based Restricted Stock Units [Member]

Summary of Restricted Stock Units

A summary of the Company’s performance-based RSUs for the nine months ended September 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		(137,127	)		6.09
Forfeited or expired		(25,123	)		6.23
Balance at September 30, 2015		235,650		$	6.52

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:

	Nine months ended September 30,
	2015	2014
Risk-free interest rate	0.00%to 0.71%	0.02% to 0.70%
Estimated volatility factor	29.00% to 36.00%	34.00% to 40.00%
Expected dividends	None	None