COMMON STOCK AND STOCK-BASED COMPENSATION PLANS (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016, are as follows:


	Number of options and SAR units (1)			Weighted average exercise price		Weighted average remaining contractual term		Aggregate intrinsic-value
Outstanding as of December 31, 2015		2,406,455		$	18.15
Granted		—			—
Exercised		(31,263	)		10.29
Forfeited or expired		(18,872	)		17.41

Outstanding as of March 31, 2016 (2)		2,356,320		$	18.26		4.2	$	11,897,435

Exercisable as of March 31, 2015 (3)		1,619,955		$	18.84		3.4	$	7,773,094

(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 2,064,112 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 1,450,567 shares of the Company’s common stock issuable upon exercise.

Summary of Restricted Stock Units Activity

A summary of the Company’s RSU activities and related information for the three months ended March 31, 2016, are as follows:


	Number of RSUs			Weighted Average Grant-Date Fair Value
Unvested as of December 31, 2015		234,000		$	19.89
Granted		310,500			20.33
Vested		—			—
Forfeited or expired		(1,000	)		20.33

Unvested as of March 31, 2016		543,500		$	20.14

Expected to vest after March 31, 2016		500,920		$	20.14

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,
	2016		2015
	(unaudited)		(unaudited)

Cost of revenue	$	60	$	35
Research and development, net		646		391
Sales and marketing		247		79
General and administrative		521		344

Total equity-based compensation expense	$	1,474	$	849

Assumptions Used to Estimate Fair Value of Stock Options Granted

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


		Three months ended March 31, 2015
		(unaudited)

Expected dividend yield		0%
Expected volatility		33%-49%
Risk-free interest rate		0.2%-1.6%
Expected forfeiture (employees)		10%
Contractual term of up to		7 Years
Suboptimal exercise multiple (employees)		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,
	2016	2015
	(unaudited)	(unaudited)

Expected dividend yield	0%		0	%
Expected volatility	36%-57%		36	%
Risk-free interest rate	0.3%-0.5%		0.1	%
Expected forfeiture	0%		0	%
Contractual term of up to	24 months		24 months