Share-Based Compensation Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2017

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

The following key weighted average assumptions were employed in the calculation for the three month periods ended March 31, 2017 and March 31, 2016:



	Three Months Ended March 31,
	2017	2016
Risk-free interest rate	1.64%	1.06%
Expected dividend yield	—%	—%
Volatility	54.39%	51.62%
Expected life	4.0 years	4.0 years
Weighted average Black-Scholes value of options granted	$7.51	$16.90

Stock Option Activity

A summary of the Company’s year-to-date stock option activity and related information follows:



	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Outstanding at December 31, 2016	1,989,137		$	16.99
Grants	10,000		$	17.35
Exercises	(10,147	)	$	7.16
Canceled and forfeited	(4,129	)	$	29.81
Outstanding at March 31, 2017	1,984,861		$	17.01	5.5
Exercisable at March 31, 2017	1,527,184		$	13.46	4.7
Available for grant at March 31, 2017	4,038,811

Restricted Stock Activity

A summary of the Company’s unvested restricted stock unit grants and changes during the three months ended March 31, 2017 is as follows:



	Service Vesting Restricted Stock Units				Performance Vesting Restricted Stock Units			Total Restricted Stock Units
	Units		Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2016	425,721		$	30.89	656,285	$	30.49	1,082,006		$	30.65
Granted	47,000		$	19.69	26,000	$	20.25	73,000		$	19.89
Forfeited	(3,175	)	$	28.50	—	$	—	(3,175	)	$	28.50
Vested	(4,625	)	$	39.96	—	$	—	(4,625	)	$	39.96
Outstanding at March 31, 2017	464,921		$	29.69	682,285	$	30.10	1,147,206		$	29.93

A summary of the Company’s unvested restricted stock grants and changes during the three months ended March 31, 2017 is as follows:



	Service Vesting Restricted Shares				Performance Vesting Restricted Shares				Total Restricted Shares
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2016	256,802		$	26.43	513,500		$	15.00	770,302		$	18.81
Granted	—		$	—	—		$	—	—		$	—
Forfeited	(2,040	)	$	31.47	(476,000	)	$	14.88	(478,040	)	$	14.95
Vested	(3,073	)	$	30.39	—		$	—	(3,073	)	$	30.39
Outstanding at March 31, 2017	251,689		$	26.34	37,500		$	16.52	289,189		$	25.06

Allocation of Share-Based Compensation

The following table sets forth the gross share-based compensation cost resulting from stock options, unvested restricted stock and unvested restricted stock units that were recorded in the Company’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (in thousands):



	Three Months Ended March 31,
	2017		2016
Cost of product revenue	$	40	$	82
Cost of service revenue	66		68
Research and development, net	891		949
Sales and marketing	885		835
General and administrative	869		918
Total	$	2,751	$	2,852