Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2017

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 three months ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Cost of services	$	159	$	175
Cost of product sales		23		12
Selling, general and administrative		1,272		1,078
Product development		70		121
Total	$	1,524	$	1,386

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, 2017 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, 2017		3,789,394		$	5.23
Granted		90,000			8.58
Exercised		(46,500	)		4.18
Forfeited or expired		—			—
Outstanding at March 31, 2017		3,832,894		$	5.25		4.36	$	18,389
Exercisable at March 31, 2017		3,706,527		$	5.17		4.12	$	18,448
Vested and expected to vest at March 31, 2017		3,832,894		$	5.25		4.36	$	18,389

Performance-Based Stock Appreciation Rights [Member]

Summary of Stock Appreciation Rights

A summary of the Company’s performance-based SARs for the three months ended March 31, 2017 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, 2017		589,424		$	6.06
Granted		—			—
Exercised		(6,800	)		3.06
Forfeited or expired		(44,611	)		11.00
Outstanding at March 31, 2017		538,013		$	5.85		4.46	$	3,262
Exercisable at March 31, 2017		538,013		$	5.85		4.46	$	3,262
Vested and expected to vest at March 31, 2017		538,013		$	5.85		4.46	$	3,262

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 the 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. The Company did not grant time-based or performance-based SARs during the three months ended March 31, 2016.

	Three Months Ended March 31,
	2017
Risk-free interest rate	2.10%
Expected life (years)	6.0
Estimated volatility factor	59.85%
Expected dividends	None

Time-Based Restricted Stock Units [Member]

Summary of Restricted Stock Units

A summary of the Company’s time-based RSUs for the three months ended March 31, 2017 is as follows:

	Shares			Weighted- Average Grant Date Fair Value
Balance at January 1, 2017		691,952		$	8.28
Granted		47,370			8.59
Vested		(342,084	)		6.90
Forfeited or expired		(1,556	)		8.03
Balance at March 31, 2017		395,682		$	9.52

Performance-Based Restricted Stock Units [Member]

Summary of Restricted Stock Units

A summary of the Company’s performance-based RSUs for the three months ended March 31, 2017 is as follows:

	Shares			Weighted- Average Grant Date Fair Value
Balance at January 1, 2017		473,608		$	7.80
Granted		—			—
Vested		(214,190	)		6.78
Forfeited or expired		(37,080	)		6.83
Balance at March 31, 2017		222,338		$	8.94

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:

	Three Months Ended March 31,
	2017	2016
Risk-free interest rate	0.99% to 1.44%	0.51% to 0.83%
Estimated volatility factor	30.0%to 33.0%	35.0% to 37.0%
Expected dividends	None	None