Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

Total stock-based compensation is reflected in the condensed consolidated statements of operations as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Cost of revenues	$	104	$	99	$	294	$	298
Research and development		182		153		505		442
Sales and marketing		174		141		435		398
General and administrative		437		302		1,384		1,193

Total continuing operations		897		695		2,618		2,331
Discontinued operations		0		0		1		4

Total	$	897	$	695	$	2,619	$	2,335

Information About Stock Options Outstanding Under All Stock Plans

The range of exercise prices for options outstanding and exercisable at September 30, 2013 was $5.50 to $11.84. The following table summarizes information about stock options outstanding under all stock plans at September 30, 2013:


					Options Outstanding						Options Exercisable
Range of Exercise Prices					Number Outstanding		Weighted Average Contractual Life (Years)		Weighted- Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	5.50	—	$	6.86		88,574		4.86	$	6.62		62,278	$	6.72
	6.87	—		7.93		756,648		5.99		7.26		78,511		7.73
	8.07	—		8.63		40,045		2.71		8.48		38,045		8.48
	8.76	—		8.76		43,000		2.36		8.76		43,000		8.76
	8.96	—		9.09		101,500		1.91		9.09		100,000		9.09
	9.11	—		9.12		6,627		2.73		9.11		6,627		9.11
	9.16	—		9.16		132,000		2.84		9.16		132,000		9.16
	9.19	—		10.25		121,780		2.45		9.70		121,780		9.70
	10.46	—		11.00		100,960		1.21		10.72		100,960		10.72
	11.01	—		11.84		140,050		0.31		11.56		140,050		11.56

$	5.50	—	$	11.84		1,531,184		4.07	$	8.40		823,251	$	9.46

Fair Value of Date of Grant Using Black Scholes Option Pricing Model

The Company calculated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model using the following assumptions:


	September 30,
	2013			2012
Dividend yield		1.6	%		1.7	%
Risk-free interest rate		0.2	%		0.2	%
Expected volatility		51	%		52	%
Expected life (in years)		4.6			5.1

Weighted Average Contractual Life and Intrinsic Value of Options Outstanding

The intrinsic value and contractual life of the options outstanding and exercisable at September 30, 2013 were as follows:


	Weighted Average Contractual Life (years)		Intrinsic Value
Options Outstanding		4.07	$	1,419
Options Exercisable		1.97	$	239

Summary of Stock Option Activity

The following table summarizes the stock option activity for the nine months ended September 30, 2013:


	Options Outstanding			Weighted Average Exercise Price
Outstanding at December 31, 2012		1,099,106		$	9.06
Granted		693,050			7.21
Exercised		(116,954	)		7.93
Expired or Cancelled		(109,235	)		8.47
Forfeited		(34,783	)		6.71

Outstanding at September 30, 2013		1,531,184		$	8.40
Exercisable at September 30, 2013		823,251		$	9.46

Summary of Retention Stock Option Activity

The following table summarizes the retention stock option activity for the nine months ended September 30, 2013:


	Retention Options Outstanding		Weighted Average Exercise Price
Outstanding at December 31, 2012		0	$	0.00
Granted		182,500		7.16

Outstanding at September 30, 2013		182,500	$	7.16
Exercisable at September 30, 2013		0	$	0.00

Summary of Performance Share Activity

The following table summarizes the performance share activity during the nine months ended September 30, 2013:


	Shares			Weighted Average Grant Date Fair Value
Unvested Performance Units - December 31, 2012		147,250		$	7.04
Units cancelled		(147,250	)		7.04

Unvested Performance Units - September 30, 2013		0		$	0.00

Calculation of Fair Value of Each Employee Stock Purchase Grant Using Black-Scholes Option Pricing Model

The Company calculated the fair value of each employee stock purchase grant on the date of grant using the Black-Scholes option-pricing model using the following assumptions:


	September 30,
	2013			2012
Dividend yield		1.7	%		1.7	%
Risk-free interest rate		0.3	%		0.2	%
Expected volatility		51	%		52	%
Expected life (in years)		0.5			0.5

Restricted Stock [Member]

Summary of Restricted Stock Activity

The following table summarizes restricted stock activity for the nine months ended September 30, 2013:


	Shares			Weighted Average Grant Date Fair Value
Unvested Restricted Stock Awards - December 31, 2012		940,685		$	6.24
Shares awarded		23,982			8.26
Shares vested		(360,538	)		5.81
Shares cancelled		(19,533	)		6.68

Unvested Restricted Stock Awards - September 30, 2013		584,596		$	6.57

Restricted Stock Units [Member]

Summary of Restricted Stock Activity

The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2013:


	Shares			Weighted Average Grant Date Fair Value
Unvested Restricted Stock Units - December 31, 2012		11,925		$	6.61
Units vested		(3,850	)		6.56
Units cancelled		(1,125	)		6.77

Unvested Restricted Stock Units - September 30, 2013		6,950		$	6.62

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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