Common Stock And Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2012

Common Stock And Stock-Based Compensation Plans [Abstract]

Common Stock And Stock-Based Compensation Plans

NOTE 7:    COMMON STOCK AND STOCK-BASED COMPENSATION PLANS

The Company grants stock options to employees and non-employee directors of the Company and its subsidiaries and provides the right to purchase common stock pursuant to the Company's 2002 employee stock purchase plan to employees of the Company and its subsidiaries. The options granted under these plans have been granted at the fair market value of the Company's common stock on the grant date. A summary of the Company's stock option activity and related information for the three months ended March 31, 2012, are as follows:

	Number of options			Weighted average exercise price		Weighted average  remaining contractual term		Aggregate intrinsic-value
Outstanding as of December 31, 2011		1,879,496		$	15.66
Granted		13,000			27.01
Exercised		(20,352	)		9.12
Forfeited or expired		(7,286	)		19.91
Outstanding as of March 31, 2012		1,864,858		$	15.79		4.7	$	12,904,277
Exercisable as of March 31, 2012		929,352		$	11.12		3.6	$	10,774,957

The following table shows the total equity-based compensation expense included in the interim condensed consolidated statements of comprehensive income:

	Three months ended March 31,
	2012		2011
	(unaudited)		(unaudited)
Cost of revenue	$	51	$	49
Research and development, net		465		378
Sales and marketing		239		201
General and administrative		490		326
Total equity-based compensation expense	$	1,245	$	954

The fair value for the Company's stock options (other than share issuances in connection with the employee stock purchase plan, as detailed below) granted to employees was estimated using the following assumptions:

	Three months ended March 31,
	2012		2011
	(unaudited)		(unaudited)
Expected dividend yield		0%		0%
Expected volatility		47%-56%		43%-56%
Risk-free interest rate		0.1%-1.2%		0.2%-2.7%
Expected forfeiture		10%		10%
Contractual term of up to		7 Years		7 Years
Suboptimal exercise multiple		2.1		2.0

No stock options were granted to non-employee directors during the three months ended March 31, 2012 and 2011.

The fair value for rights to purchase shares of common stock under the Company's employee share purchase plan was estimated on the date of grant using the same assumptions set forth above for the three months ended March 31, 2012 and 2011, except for the expected life, which was assumed to be six to 24 months, and except for the expected volatility, which was assumed to be in a range of 41%-61% for the three months ended March 31, 2012 and in a range of 41%-44% for the three months ended March 31, 2011.

As of March 31, 2012, there was $4,152 of unrecognized compensation expense related to unvested awards. This amount is expected to be recognized over a weighted-average period of 1.4 years. To the extent the actual forfeiture rate is different from what the Company has estimated, equity-based compensation related to these awards will be different from the Company's expectations.