Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 9. Stock-Based Compensation

     The compensation expense related to the Company’s stock-based compensation plans included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2011 and 2010 was as follows (in millions):

	Three months				Six months
	ended				ended
	June 30,				June 30,
	2011		2010		2011		2010
Cost of sales	$	0.2	$	0.2	$	0.3	$	0.3
Research and development		0.2		0.1		0.4		0.3
Sales and marketing		0.1		0.1		0.1		0.2
General and administrative		1.4		1.0		2.9		1.8
	$	1.9	$	1.4	$	3.7	$	2.6

     Total compensation expense recognized for the three months ended June 30, 2011 and 2010 includes $1.2 million and $1.1 million related to stock options and $0.7 million and $0.3 million related to restricted stock, respectively. Total compensation expense recognized for the six months ended June 30, 2011 and 2010 includes $2.6 million and $2.0 million related to stock options and $1.1 million and $0.6 million related to restricted stock, respectively. As of June 30, 2011, total unrecognized compensation expense related to non-vested stock options was $5.5 million, which is expected to be recognized over a weighted-average period of approximately 2.4 years. As of June 30, 2011, total unrecognized compensation expense related to non-vested restricted stock was $2.7 million, which is expected to be recognized over a weighted-average period of approximately 2.3 years. Compensation expense capitalized to inventory and compensation expense related to the Company’s ESPP were not material for the three and six months ended June 30, 2011 and 2010.

     The estimated fair value of each stock option award was determined on the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions for the option grants.

	Six months
	ended
	June 30,
	2011			2010
Expected option life (in years)		5.22			4.89
Volatility rate		0.47			0.52
Risk-free interest rate		2.10	%		2.40	%
Forfeiture rate		14.0	%		15.5	%
Dividend rate		0	%		0	%

     The weighted-average grant date fair value of stock options granted during the six months ended June 30, 2011 and 2010 was $5.72 and $6.86, respectively. The grant date fair value of restricted stock is determined based on the closing market price of the Company’s common stock on the grant date.