Share-Based Compensation

3 Months Ended

Sep. 30, 2013

Share-Based Compensation [Abstract]

Share-Based Compensation

4. Share-Based Compensation

As of September 30, 2013, we had share-based compensation plans which are described in Note 11 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2013.  We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period.  As of September 30, 2013, we had 197,239 stock options outstanding and 333,421 restricted shares outstanding.

During the three months ended September 30, 2013, we awarded 90,000 shares of restricted stock.   These restricted stock awards consisted of 50,000 restricted shares granted to employee participants that vest ratably over a four year service period, as long as the participant remains employed with Concurrent.  The award of restricted shares also included 40,000 performance-based restricted shares granted to senior management during the three months ended September 30, 2013 that vest based upon meeting specified company financial performance criteria over the next three years.  A summary of the activity of our time-based, service condition restricted shares during the three months ended September 30, 2013, is presented below:

				Weighted Average
				Grant Date
Restricted Stock Awards	Shares			Fair Value
Unvested at July 1, 2013		225,064		$	4.91
Awarded		50,000			7.86
Released		(54,305	)		5.07
Forfeited		(3,250	)		4.57
Unvested at September 30, 2013		217,509		$	5.55

During the three months ended September 30, 2013, we released restrictions on 92,166 previously granted performance based restricted shares, based upon achievement of performance goals attributable to our fiscal year 2013.  We cancelled 62,934 performance-based restricted shares during the three months ended September 30, 2013 that had been granted to senior management and were forfeited during the period because neither the full performance criteria for our fiscal year 2011, 2012, and 2013 financial results, nor the market condition (achievement of a certain share price) were met.  A summary of the activity of our performance based restricted shares during the three months ended September 30, 2013, is presented below:

				Weighted Average
				Grant Date
Performance Stock Awards	Shares			Fair Value
Unvested at July 1, 2013		231,012		$	3.66
Awarded		40,000			7.86
Released		(92,166	)		3.52
Forfeited		(62,934	)		2.90
Unvested at September 30, 2013		115,912		$	5.59

We recorded share-based compensation related to the issuance of stock options and restricted stock to employees and board members as follows (in thousands):

	Three Months Ended
	September 30,
	2013			2012
Share-based compensation expense included in the Statements of Operations:
Cost of sales		$	14		$	13
Sales and marketing			47			27
Research and development			35			26
General and administrative			295			102
Total			391			168
Tax benefit			-			-
Share-based compensation expense, net of taxes		$	391		$	168