Note 3 - Stock-based Compensation

9 Months Ended

Apr. 02, 2017

Notes to Financial Statements

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

Note

3

– Stock-Based Compensation

The Company has a Long Term Incentive and Share Award Plan, which is more fully described in Note

12

and Note

13

 to the consolidated financial statements included in the Company

’s Annual Report on Form

10

-K for the fiscal year ended

July

3,

2016,

that provides for the grant to eligible employees, consultants and directors of stock options, restricted shares, and other stock-based awards.

The amounts of stock-based compensation expense recognized in the periods presented are as follows:

	Three Months Ended				Nine Months Ended
	April 2,  2017		March 27,  2016		April 2,  2017		March 27,  2016
			(in thousands, unaudited)
Stock options	$	110	$	112	$	337	$	314
Restricted stock		1,176		1,538		4,447		4,517
Total		1,286		1,650		4,784		4,831
Deferred income tax benefit		387		491		1,528		1,533
Stock-based compensation expense, net	$	899	$	1,159	$	3,256	$	3,298

Stock-based compensation is recorded within the following line items of operating expenses:

	Three Months Ended				Nine Months Ended
	April 2,  2017		March 27,  2016		April 2,  2017		March 27,  2016
			(in thousands,  unaudited)
Marketing and sales	$	342	$	586	$	1,384	$	1,781
Technology and development		71		91		267		411
General and administrative		873		973		3,133		2,639
Total	$	1,286	$	1,650	$	4,784	$	4,831

The following table summarizes stock option activity during the 

nine

months ended

April

2,

2017

(unaudited)

:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (000s)
Outstanding at July 3, 2016		2,182,234		$	2.49
Granted		-		$	-
Exercised		(51,500	)	$	5.20
Forfeited		-		$	-
Outstanding at April 2, 2017		2,130,734		$	2.43		$	16,566
Options vested or expected to vest at April 2, 2017		2,130,734		$	2.43		$	16,566
Exercisable at April 2, 2017		1,471,734		$	2.37		$	11,530

As of

April

2,

2017,

the total future compensation cost related to non-vested options, not yet recognized in the statement of income, was

$1.0

million and the weighted average period over which these awards are expected to be recognized was

2.2

 years.

The Company grants shares of Common Stock to its employees that are subject to r

estrictions on transfer and risk of forfeiture until fulfillment of applicable service and performance conditions and, in certain cases, holding periods (Restricted Stock). The following table summarizes the activity of non-vested restricted stock awards during the 

nine

months ended

April

2,

2017

(unaudited)

:

	Shares			Weighted Average Grant Date Fair Value
Non-vested at July 3, 2016		2,017,069		$	6.78
Granted		814,406		$	9.88
Vested		(885,502	)	$	6.83
Forfeited		(473,494	)	$	9.77
Non-vested at April 2, 2017		1,472,479		$	7.50

The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of

April

2,

2017,

there was

$6.9

 million of total unrecognized compensation cost related to non-vested restricted stock-based compensation to be recognized over the weighted-average remaining period of

2.2

years.