Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

9.Stockholders’ Equity

Stock-based Compensation

The following table summarizes the stock-based compensation expenses included in the Condensed Consolidated Statements of Operations  (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
		2012		2011		2012		2011
Sales and marketing	$	353	$	273	$	969	$	520
Research and development		71		97		249		252
General and administrative		739		511		1,981		1,358
	$	1,163	$	881	$	3,199	$	2,130

Stock Options

During the nine months ended September 30, 2012, the Company granted options to purchase a total of 1,887,000 shares of common stock and options to purchase1,170,419 shares of common stock were exercised. As of September 30, 2012, there was approximately $8.5 million of unrecognized compensation expense cost, net of forfeitures, related to non-vested stock options, which is expected to be recognized over a weighted average remaining period of approximately 2.63 years.

The Company has granted certain performance-based options to purchase shares of the Company’s common stock at an exercise price equal to the closing price of a share of the Company’s common stock as of the grant date. The options will fully vest upon meeting a performance goal within an established time frame. If the performance goal is met for the option within the established time frame, the option generally has a ten-year term measured from the date of grant. If the performance goal is not met within the established time frame, the option expires in its entirety. The grant date fair value per share of the performance-based awards has been calculated using the Black-Scholes option pricing model using the following assumptions: expected term of 5.22-5.28 years, volatility factor of 63.66-65.14%, and risk free interest rate of 0.96-1.96%. The Company recognizes expense related to a performance-based option over the period of time the Company determines that it is probable that the performance goal will be achieved. If it is subsequently determined that the performance goal is not probable of achievement, the expense related to the performance-based option is reversed. For the three-month period ended September 30, 2012 and 2011, the Company recognized ($69,000) and $0, respectively, of (benefit) expense related to performance-based options. For the nine-month periods ended September 30, 2012 and 2011, the Company recognized ($7,000) and $0.1 million of (benefit) expense, respectively, related to performance-based options.

RSUs

During the nine months ended September 30, 2012, the Company granted 190,000 RSUs at a weighted average fair value at grant date of $6.49, and 43,863 RSUs vested. As of September 30, 2012, there was approximately $1.3 million of unrecognized compensation cost, net of forfeitures, related to non-vested RSUs, which is expected to be recognized over a weighted average remaining period of approximately 1.78 years.

Repurchase of Common Stock

In May 2012, the Company’s Board of Directors approved an increase of approximately $10.5 million to the existing $20 million share repurchase program initiated in October 2011, bringing the total authorized under the program since inception to approximately $30.5 million. The Company repurchased and retired 1,838,202 and 3,419,431 shares at a cost of $9.5 million and $18.4 million during the three- and nine-month periods ended September 30, 2012, respectively. As of September 30, 2012, $8.7 million of the $30.5 million share repurchase program authorized by the Board was available for future share repurchases. Repurchased shares have been retired and constitute authorized but unissued shares.