Note 16. Equity Incentive Plans and Employee Benefits

9 Months Ended

Nov. 02, 2013

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

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

16.           Equity incentive plans and employee benefits

Stock option awards

Activity of our combined stock option plans for the nine months ended November 2, 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
Granted		368,680			4.59
Exercised		(8,878	)		2.21
Cancelled or forfeited		(728,912	)		15.07
As of August 3, 2013		4,216,894		$	11.57
Granted		-			-
Exercised		(1,387	)		0.95
Cancelled or forfeited		(223,542	)		12.21
As of November 2, 2013		3,991,965		$	11.60
Options exercisable as of:
November 2, 2013		3,065,559		$	12.76

Restricted stock awards

Activity of our restricted stock awards, or RSAs, for the nine months ended November 2, 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
Granted		-			-
Vested		(10,980	)		6.83
Cancelled		-			-
As of August 3, 2013		132,568		$	8.75	$	1,159,970
Granted		-			-
Vested		-			-
Cancelled		-			-
As of November 2, 2013		132,568		$	8.75	$	1,159,970

Restricted stock units

Activity of our restricted stock units, or RSUs, for the nine months ended November 2, 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
Granted		143,536			5.12
Vested		(56,952	)		6.23
Cancelled		(49,411	)		6.36
As of August 3, 2013		587,504		$	5.88	$	3,455,878
Granted		4,675			5.14
Vested		(49,527	)		6.38
Cancelled		(14,347	)		5.84
As of November 2, 2013		528,305		$	5.83	$	3,080,018

Employee stock purchase plan

As of November 2, 2013, we had reserved a total of 2,500,000 shares of common stock for issuance under the 2010 Purchase Plan, of which 1,895,613 shares had been issued.

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				Nine Months Ended
	November 2, 2013		October 27, 2012		November 2, 2013		October 27, 2012
Cost of revenue	$	64	$	131	$	214	$	380
Research and development expenses		778		1,375		2,721		4,346
Sales and marketing expenses		365		458		1,029		1,412
General and administrative expenses		461		539		1,423		1,940
Total stock-based compensation	$	1,668	$	2,503	$	5,387	$	8,078

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 for the three and nine months ended November 2, 2013 and $0.2 million and $0.7 million for the three and nine months ended October 27, 2012, respectively.

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 $0.5 million and $1.6 million for the three months and nine months ended November 2, 2013, respectively, and totaled $0.5 million and $0.6 million for the three and nine months ended October 27, 2012.

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				Nine Months Ended
	November 2, 2013		October 27, 2012		November 2, 2013		October 27, 2012
Denmark	$	53	$	47	$	162	$	142
Taiwan		32		38		109		85
(*) The Netherlands		75		92		327		92
(*) Germany		12		-		66		-
Total matching contributions	$	172	$	177	$	664	$	319

(*) As a result of our acquisition of the DTV business, we added operations in The Netherlands and Germany in May 2013.

Severance plan

We maintain a severance plan for several Israeli employees pursuant to Israel’s Severance Pay Law based upon the most recent salary of the employees multiplied by the number of year’s employment. Accrued severance liability as of November 2, 2013 and October 27, 2013 totaled $1.3 million, respectively, offset by $1.2 million of severance employee funds.