STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2013

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 June 30, 2013 and July 1, 2012:

	Three Months Ended		Six Months Ended
	June 30, 2013	July 1, 2012	June 30, 2013	July 1, 2012
Expected dividend yield	—	—	—	—
Expected stock price volatility	83%	81%	83%	81%
Risk-free interest rate	0.9%	0.7%	0.8%	0.8%
Expected life of options in years	4.4	5.0	4.4	5.0

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

Our stock-based compensation for the three and six months ended June 30, 2013 and July 1, 2012 was as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2013		July 1, 2012		June 30, 2013		July 1, 2012
Stock-based compensation by type of award:
Stock options	$	309	$	343	$	666	$	732
Restricted stock units	32		4		47		15
Employee stock purchase plan	5		5		10		10
	$	346	$	352	$	723	$	757
Stock-based compensation by category of expense:
Cost of sales	$	9	$	17	$	26	$	32
Research, development and engineering	70		74		145		147
Selling, general and administrative	267		261		552		578
	$	346	$	352	$	723	$	757