Note 15. Equity Incentive Plans and Employee Benefits

3 Months Ended

May 04, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

15.           Equity incentive plans and employee benefits

Stock option awards

Activity of our combined stock option plans for the three months ended May 4, 2013 is summarized as follows:

	Number of Options			Weighted Average Exercise Price (Per Option)
As of February 2, 2013		5,055,787		$	12.50
Granted		-			-
Exercised		(9,949	)		3.26
Cancelled or forfeited		(459,834	)		11.18
As of May 4, 2013		4,586,004		$	12.65
Options exercisable as of:
February 2, 2013		3,790,842		$	13.31
May 4, 2013		3,621,537		$	13.42

Restricted stock awards

Activity of our restricted stock awards, or RSAs, for the three months ended May 4, 2013 is summarized as follows:

	Number of RSAs			Weighted Average Grant-Date Fair Value (Per RSA)		Aggregate Value
As of February 2, 2013		163,311		$	8.71	$	1,422,439
Granted		-			-
Vested		(6,588	)		9.50
Cancelled		(13,175	)		9.50
As of May 4, 2013		143,548		$	8.60	$	1,234,513

 Restricted stock units

Activity of our restricted stock units, or RSUs, for the three months ended May 4, 2013 is summarized as follows:

	Number of RSUs			Weighted Average Grant-Date Fair Value (Per RSU)		Aggregate Value
As of February 2, 2013		632,262		$	6.28	$	3,970,605
Granted		37,675			4.65
Vested		(44,024	)		6.14
Cancelled		(75,582	)		6.39
As of May 4, 2013		550,331		$	6.16	$	3,390,039

Employee stock purchase plan

During the three months ended May 4, 2013, we had no activity under the 2010 Stock Purchase Plan.

Stock-based compensation expense

The following table sets forth the total stock-based compensation expense that is included in each functional line item in the condensed consolidated statements of operations (in thousands):

	Three Months Ended
	May 4, 2013		April 28, 2012
Cost of revenue	$	83	$	117
Research and development		1,090		1,463
Sales and marketing		349		472
General and administrative		511		774
Total stock-based compensation	$	2,033	$	2,826

401(k) tax deferred savings plan

We maintain a 401(k) tax deferred savings plan for the benefit of qualified employees who are U.S. based. The matching program was suspended effective December 1, 2012. The matching contributions we made to the 401(k) tax deferred savings plan totaled zero and $0.3 million for the three months ended May 4, 2013 and April 28, 2012, respectively.

Group registered retirement savings plan

We maintain a Group Registered Retirement Savings Plan, or GRRSP, for the benefit of qualified employees who are based in Canada. We made matching contributions to the GRRSP of approximately $0.1 million for the three months ended May 4, 2013 and April 28, 2012. In connection with the Company’s restructuring, as further described in Note 11, we terminated the GRRSP in April 2013.

Endowment insurance pension plan

Related to our acquisition of our DTV business in May 2013, we added operations in Shanghai, China, where we are required to provide pension insurance to our Shanghai employees. The matching contributions to the pension insurance totaled $0.7 million and zero for the three months ended May 4, 2013 and April 28, 2012, respectively.

Retirement pension plans

The following table summarizes our contributions to retirement pension plans for the benefits of qualified employees based in the following countries (in thousands):

		Three Months Ended
		May 4, 2013		April 28, 2012
	Denmark	$	48	$	47
	Taiwan		39		14
(*)	The Netherlands		159		-
(*)	Germany		94		-
	Total matching contributions	$	340	$	61

(*) Related to our acquisition of our DTV business in May 2013, we added operations in The Netherlands and Germany.

Severance plan

We maintain a severance plan for several Israeli employees pursuant to Israel's Severance Pay Law. Accrued severance liability at May 4, 2013 and February 2, 2013 totaled $1.2 million, partially offset by $1.1 million of severance employee funds.