STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jul. 01, 2012

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

Schedule of Valuation Assumptions to Determine the Fair Value of Stock Options

The Black-Scholes model requires the input of highly subjective assumptions, which are summarized in the table below for the three and six months ended July 1, 2012 and July 3, 2011:

	Three Months Ended		Six Months Ended
	July 1, 2012	July 3, 2011	July 1, 2012	July 3, 2011
Expected dividend yield	—	—	—	—
Expected stock price volatility	81%	77%	81%	77%
Risk-free interest rate	0.7%	1.7%	0.8%	2.1%
Expected life of options in years	5	5	5	5

Schedule of Stock-Based Compensation by Type of Award and Category of Expense

Our stock-based compensation in the three and six months ended July 1, 2012 and July 3, 2011 was as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2012		July 3, 2011		July 1, 2012		July 3, 2011
Stock-based compensation by type of award:
Stock options	$	343	$	640	$	732	$	1,320
Restricted stock units	4		30		15		68
Employee stock purchase plan	5		5		10		15
	$	352	$	675	$	757	$	1,403
Stock-based compensation by category of expense:
Cost of sales	$	17	$	22	$	32	$	56
Research, development and engineering	74		115		147		241
Selling, general and administrative	261		538		578		1,106
	$	352	$	675	$	757	$	1,403