COMMON STOCK AND STOCK-BASED COMPENSATION PLANS (Tables)

3 Months Ended

Mar. 31, 2015

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

A summary of the Company’s stock option and SARs activities and related information for the three months ended March 31, 2015, are as follows:


	Number of options and SAR units			Weighted average exercise price		Weighted average remaining contractual term		Aggregate intrinsic- value
Outstanding as of December 31, 2014		3,316,380		$	16.50
SAR units granted (1)		37,500			19.59
Options/SAR units exercised		(436,806	)		10.20
Options/SAR units forfeited or expired		(36,594	)		18.62

Outstanding as of March 31, 2015 (2)		2,880,480		$	17.47		4.7	$	14,188,392

Exercisable as of March 31, 2015 (3)		1,690,821		$	18.17		3.5	$	8,100,340

(1)	The SAR units are convertible for a maximum number of shares of the Company’s common stock equal to 75% of the SAR units subject to the grant.

(2)	Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 2,524,973 shares of the Company’s common stock issuable upon exercise.

(3)	Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 1,548,456 shares of the Company’s common stock issuable upon exercise.

Equity-Based Compensation Expense Included in Interim Condensed Consolidated Statements of Income

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


	Three months ended March 31,
	2015		2014
	(unaudited)		(unaudited)
Cost of revenue	$	35	$	58
Research and development, net		391		601
Sales and marketing		79		302
General and administrative		344		552

Total equity-based compensation expense	$	849	$	1,513

Assumptions Used to Estimate Fair Value of SARs Granted to Employees

The fair value for the Company’s SARs (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,
	2015		2014
	(unaudited)		(unaudited)
Expected dividend yield		0%		0%
Expected volatility		33%-49%		37%-52%
Risk-free interest rate		0.2%-1.6%		0.1%-2.2%
Expected forfeiture		10%		10%
Contractual term of up to		7 Years		7 Years
Suboptimal exercise multiple (employees)		2.1		2.1

Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan

The fair value for rights to purchase shares of common stock under the Company’s employee stock purchase plan was estimated on the date of grant using the following assumptions:


	Three months ended March 31,
	2015		2014
	(unaudited)		(unaudited)
Expected dividend yield		0%		0%
Expected volatility		36%		43%-52%
Risk-free interest rate		0.1%		0.1%-0.2%
Expected forfeiture		0%		0%
Contractual term of up to		24 months		24 months