Stock-Based Compensation

6 Months Ended

Jun. 28, 2014

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

Stock Options Awards. During the three and six months ended June 28, 2014, the Company granted 167 and 916 non-qualified stock options to employees and directors, respectively. The Company uses the Black-Scholes valuation model to calculate the fair value of stock options. The fair value of stock options was estimated at the grant date using the following weighted-average assumptions:



	Three Months Ended						Six Months Ended
	June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
Expected term (years)	5.00			5.00			5.00			5.00
Risk-free interest rate	1.65		%	0.65		%	1.58		%	0.68		%
Dividend rate	—			—			—			—
Volatility	44		%	61		%	46		%	61		%
Forfeiture rate	4		%	3		%	4		%	3		%
Estimated fair value per stock option	$	2.37		$	4.97		$	2.42		$	5.13

The risk-free interest rate assumption was based on the U.S. Treasury’s rates for U.S. Treasury constant maturities similar to those of the expected term of the award being valued. The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. The Company utilizes data of peer companies to determine the weighted average expected term, as peer companies are representative of the Company's expected term. In addition, due to the Company’s limited historical data, the estimated volatility incorporates the historical volatility of comparable companies whose share prices are publicly available.

Restricted Stock Unit Awards. During the three and six months ended June 28, 2014, the Company granted 0 and 523 restricted stock units (RSUs) to employees, respectively. The Company uses the grant date fair value, which is calculated by multiplying the number of shares subject to the stock award by the closing price of one share of Common Stock on the date of grant.

The following summarizes stock plan activity for the six months ended June 28, 2014:



			Stock Options				Restricted Stock Units
	Available for Grant		Number of Shares		Weighted Average Exercise Price		Number of Shares		Weighted Average Grant Date Fair Value
Balance at December 28, 2013	2,787		8,227		$	6.71	—		$	—
Shares added	1,308		—		—		—		—
Granted	(1,438	)	915		5.83		523		5.81
Exercised	—		(676	)	1.19		—		—
Released	—		—		—		(57	)	—
Canceled	457		(435	)	10.83		(22	)	5.81
Shares withheld under net shares settlement of equity awards	23		—		—		—		—
Balance at June 28, 2014	3,137		8,031		$	6.85	444		$	5.81

Total stock-based compensation expense recognized during the three and six months ended June 28, 2014 and June 29, 2013 was comprised of the following:



	Three Months Ended				Six Months Ended
	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
Cost of net revenue	$	272	$	218	$	530	$	414
Research and development	559		480		1,295		997
Selling, general and administrative	1,031		962		2,141		1,715
	$	1,862	$	1,660	$	3,966	$	3,126

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details