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Stock-based Compensation (Tables)
12 Months Ended
Dec. 31, 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 years ended December 31, 2015, 2014 and 2013:

 

 

 

Years ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Cost of services

 

$

525

 

 

$

203

 

 

$

303

 

Cost of product sales

 

 

45

 

 

 

53

 

 

 

114

 

Selling, general and administrative

 

 

3,655

 

 

 

3,135

 

 

 

2,316

 

Product development

 

 

395

 

 

 

219

 

 

 

240

 

Total

 

$

4,620

 

 

$

3,610

 

 

$

2,973

 

 

Time-Based Stock Appreciation Rights [Member]  
Summary of Stock Appreciation Rights

A summary of the Company’s time-based SARs for the year ended December 31, 2015 is as follows:

 

 

 

Number of

Shares

 

 

Weighted-Average

Exercise Price

 

 

Weighted-Average

Remaining

Contractual

Term (years)

 

 

Aggregate

Intrinsic Value

 

Outstanding at January 1, 2015

 

 

3,853,367

 

 

$

4.53

 

 

 

 

 

 

 

 

 

Granted

 

 

483,000

 

 

 

6.07

 

 

 

 

 

 

 

 

 

Exercised

 

 

(150,050

)

 

 

4.03

 

 

 

 

 

 

 

 

 

Forfeited or expired

 

 

(77,133

)

 

 

5.39

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2015

 

 

4,109,184

 

 

$

5.22

 

 

 

5.66

 

 

$

10,610

 

Exercisable at December 31, 2015

 

 

3,456,039

 

 

$

5.16

 

 

 

4.97

 

 

$

10,197

 

Vested and expected to vest at December 31, 2015

 

 

4,109,184

 

 

$

5.22

 

 

 

5.66

 

 

$

10,610

 

 

Performance-Based Stock Appreciation Rights [Member]  
Summary of Stock Appreciation Rights

A summary of the Company’s performance-based SARs for the year ended December 31, 2015 is as follows:

 

 

 

Number of

Shares

 

 

Weighted-Average

Exercise Price

 

 

Weighted-Average

Remaining

Contractual

Term  (years)

 

 

Aggregate

Intrinsic Value

 

Outstanding at January 1, 2015

 

 

786,034

 

 

$

5.51

 

 

 

 

 

 

 

 

 

Granted

 

 

8,000

 

 

 

5.65

 

 

 

 

 

 

 

 

 

Exercised

 

 

(15,100

)

 

 

2.92

 

 

 

 

 

 

 

 

 

Forfeited or expired

 

 

(160

)

 

 

5.65

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2015

 

 

778,774

 

 

$

6.33

 

 

 

4.38

 

 

$

2,177

 

Exercisable at December 31, 2015

 

 

774,774

 

 

$

6.33

 

 

 

4.35

 

 

$

2,170

 

Vested and expected to vest at December 31, 2015

 

 

778,774

 

 

$

6.33

 

 

 

4.38

 

 

$

2,177

 

 

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.

 

 

 

Years ended December 31,

 

 

2015

 

 

2014

 

 

2013

Risk-free interest rate

 

1.35% to 1.82%

 

 

1.77% to 1.94%

 

 

0.91% to 2.11%

Expected life (years)

 

 

6.0

 

 

 

6.0

 

 

5.5 and 6.0

Estimated volatility factor

 

62.7% to 64.6%

 

 

64.8% to 67.3%

 

 

67.6% to 69.9%

Expected dividends

 

None

 

 

None

 

 

None

 

Time-Based Restricted Stock Units [Member]  
Summary of Restricted Stock Units

A summary of the Company’s time-based RSUs for the year ended December 31, 2015 is as follows:

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Balance at January 1, 2015

 

 

90,255

 

 

$

6.66

 

Granted

 

 

366,004

 

 

 

6.63

 

Vested

 

 

(90,255

)

 

 

7.04

 

Forfeited or expired

 

 

 

 

 

 

Balance at December 31, 2015

 

 

366,004

 

 

$

6.63

 

 

Performance-Based Restricted Stock Units [Member]  
Summary of Restricted Stock Units

A summary of the Company’s performance-based RSUs for the year ended December 31, 2015 is as follows:

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Balance at January 1, 2015

 

 

321,525

 

 

$

6.41

 

Granted

 

 

340,094

 

 

 

6.64

 

Vested

 

 

(137,127

)

 

 

6.09

 

Forfeited or expired

 

 

(25,123

)

 

 

6.23

 

Balance at December 31, 2015

 

 

499,369

 

 

$

6.66

 

 

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:

 

 

 

Years Ended December 31,

 

 

2015

 

2014

 

2013

Risk-free interest rate

 

0.65% to 1.31%

 

0.25% to 1.10%

 

0.13% to 0.78%

Estimated volatility factor

 

34.0% to 38.0%

 

39.0% to 41.0%

 

40.0%

Expected dividends

 

None

 

None

 

None