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Share-Based Compensation
 6 Months Ended
Jan. 26, 2013
Share-Based Compensation
3. Share-Based Compensation

The following table presents share-based compensation expense included in the Company’s consolidated statements of operations (in thousands):

 

     Three Months Ended      Six Months Ended  
     January 26,
2013		      January 28,
2012		      January 26,
2013		      January 28,
2012		  

Cost of product revenue

    $ 17       $ 44       $ 49       $ 78   

Cost of service revenue

      96         116         192         233   

Research and development

      124         381         454         764   

Sales and marketing

      150         182         315         392   

General and administrative

      160         224         377         454   
  

 

 

     

 

 

     

 

 

     

 

 

  

Share-based compensation expense

    $ 547       $ 947       $ 1,387       $ 1,921   
  

 

 

     

 

 

     

 

 

     

 

 

  

Stock option activity under all of the Company’s stock plans since July 31, 2012 is summarized as follows:

 

     Number of
Shares		     Weighted
Average
Exercise
Price		      Weighted
Average
Contractual
Term
(Years)		  

Outstanding at July 31, 2012

      10,756,844      $ 3.97         6.03   

Options granted

      —          

Options exercised

      (2,800 )      13.22      

Options cancelled

      (821,664 )      6.20      
  

 

 

       

Outstanding at January 26, 2013

      9,932,380      $ 3.79         3.08   
  

 

 

       

Options vested and expected to vest

      9,889,472      $ 3.79         3.07   

Options exercisable as of January 26, 2013

      8,078,425      $ 3.77         2.90   

The intrinsic value of options exercised during the six months ended January 26, 2013 was $5 thousand.

 

In accordance with the provisions of the Company’s stock plans, an equitable adjustment was made to all outstanding option awards to give effect to the October 11, 2012, November 12, 2012 and December 20, 2012 cash distributions to the Company’s common stockholders. The equitable adjustment made by the Company maintained the same fair value of the awards after the cash distributions as before the distributions. Accordingly, no stock compensation charge was recorded in connection with the adjustment. The above stock option table has been adjusted to reflect the equitable adjustments.

As of January 26, 2013, there was $2.8 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s stock plans. That cost is expected to be recognized over a weighted-average period of 1.2 years.