Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Summary Components of Stock-Based Compensation Expense

The following table summarizes the components of stock-based compensation expense in the Company’s condensed consolidated statements of operations for the quarters and six months ended June 30, 2018 and 2017:

	Quarters Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Cost of services	$	144	$	114	$	308	$	273
Cost of product sales		24		19		63		42
Selling, general and administrative		1,354		1,230		2,646		2,502
Product development		206		82		418		152
Total	$	1,728	$	1,445	$	3,435	$	2,969

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, 2018 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, 2018		2,564,394		$	5.38
Granted		—			—
Exercised		(105,200	)		5.15
Forfeited or expired		(20,000	)		8.58
Outstanding at June 30, 2018		2,439,194		$	5.32		4.29	$	10,678
Exercisable at June 30, 2018		2,379,194		$	5.35		4.18	$	11,128
Vested and expected to vest at June 30, 2018		2,439,194		$	5.32		4.29	$	10,678

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, 2018 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, 2018		504,473		$	5.80
Granted		—			—
Exercised		(10,500	)		3.02
Forfeited or expired		—			—
Outstanding at June 30, 2018		493,973		$	5.75		3.17	$	3,257
Exercisable at June 30, 2018		493,973		$	5.75		3.17	$	3,257
Vested and expected to vest at June 30, 2018		493,973		$	5.75		3.17	$	3,257

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 period 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 an 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 six months ended June 30, 2018.

	Six Months Ended June 30,
	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 restricted stock units (“RSUs”) for the six months ended June 30, 2018 is as follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Balance at January 1, 2018		818,480		$	9.95
Granted		61,176			10.15
Vested		(322,474	)		8.95
Forfeited or expired		(41,999	)		10.39
Balance at June 30, 2018		515,183		$	10.13

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, 2018 is as follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Balance at January 1, 2018		444,734		$	9.48
Granted		—			—
Vested		(168,068	)		9.16
Forfeited or expired		(43,798	)		7.38
Balance at June 30, 2018		232,868		$	9.98

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 based on the following assumptions:

	Six Months Ended June 30,
	2018		2017
Risk-free interest rate		2.11% to 2.58%	1.14% to 1.46%
Estimated volatility factor	27.0% to 30.0%		24.0% to 32.0%
Expected dividends	None		None