Stock Based Compensation (Tables)

9 Months Ended

Sep. 29, 2012

Stock Based Compensation [Abstract]

Activity in stock option plan

The following table summarizes information regarding activity in our stock option plan during the nine months ended September 29, 2012:

	Number of Shares			Weighted Average Exercise Price Per Share		Aggregate Intrinsic Value (thousands)
Outstanding at December 31, 2011		1,766,401		$	3.63
Granted		137,150		$	4.00
Exercised		(154,657	)	$	2.62
Canceled or forfeited		(322,737	)	$	4.32
Outstanding at September 29, 2012		1,426,157		$	3.61	$	1,000

Weighted average assumptions for fair value estimate of stock-based awards

The Company uses the Black-Scholes option-pricing model to estimate fair value of stock-based awards with the following weighted average assumptions:

	Three Months Ended						Nine Months Ended
	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Average risk free interest rate		0.59	%		0.94	%		0.68	%		1.23	%
Expected life (in years)		4.55 years			4.69 years			4.55 years			4.71 years
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
Average volatility		90	%		91	%		91	%		91	%

Stock-based compensation expense

The following table shows stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine month periods ended September 29, 2012 and October 1, 2011 (in thousands):

	Three Months Ended					Nine Months Ended
	September 29, 2012			October 1, 2011		September 29, 2012		October 1, 2011
Cost of revenues	$	17		$	15	$	51	$	43
Research and development		19			15		58		52
Sales and marketing		29			26		84		81
General and administrative		(85	)		50		84		149
	$	(20	)	$	106	$	277	$	325

Stock options outstanding, exercisable and expected to vest

Information regarding stock options outstanding, exercisable and expected to vest at September 29, 2012 is summarized below:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining  Contractual Life (Years)		Aggregate Intrinsic  Value (thousands)
Options outstanding		1,426,157	$	3.61		3.17	$	1,000
Options vested and expected to vest		1,351,086	$	3.61		3.05	$	979
Options exercisable		1,127,084	$	3.59		2.56	$	935

Restricted stock units outstanding, vested and expected to vest

Information regarding the restricted stock units outstanding, vested and expected to vest as of September 29, 2012 is summarized below:

	Number of Shares		Weighted Average  Remaining Contractual Life (years)		Aggregate Intrinsic  Value (thousands)
Restricted stock units outstanding		120,999		1.17	$	448
Restricted stock units vested and expected to vest		39,665		1.14	$	147

Restricted stock awards

The following table summarizes information regarding activity in restricted stock awards during the nine months ended September 29, 2012:

	Number of Shares			Weighted Average  Grant Date Fair Value
Outstanding at December 31, 2011		10,126		$	3.95
Awarded		10,666		$	3.75
Released		(10,126	)	$	3.95
Outstanding at September 29, 2012		10,666		$	3.75