COMMON STOCK AND STOCK-BASED COMPENSATION PLANS (Tables)
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9 Months Ended |
Sep. 30, 2016 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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Summary of Stock Option Activity |
A summary of the Company’s stock option and SARs activities
and related information for the nine months ended September 30,
2016, are as follows:
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Number of
options and
SAR units (1) |
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Weighted
average
exercise
price |
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Weighted
average
remaining
contractual
term |
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Aggregate
intrinsic-value |
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Outstanding as of December 31, 2015
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2,406,455 |
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$ |
18.15 |
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Granted
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66,000 |
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27.17 |
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Exercised
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(940,526 |
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16.76 |
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Forfeited or expired
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(37,633 |
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17.89 |
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Outstanding as of September 30, 2016 (2)
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1,494,296 |
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$ |
19.42 |
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4.8 |
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$ |
23,378,563 |
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Exercisable as of September 30, 2016 (3)
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981,117 |
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$ |
19.97 |
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4.0 |
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$ |
14,809,518 |
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(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 1,331,360 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 895,288 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 nine months ended September 30, 2016, are as
follows:
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Number of
RSUs |
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Weighted Average
Grant-Date
Fair Value |
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Unvested as of December 31, 2015
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234,000 |
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$ |
19.89 |
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Granted
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372,617 |
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21.51 |
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Vested
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(97,640 |
) |
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19.61 |
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Forfeited or expired
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(15,969 |
) |
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20.12 |
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Unvested as of September 30, 2016
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493,008 |
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$ |
21.16 |
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Expected to vest after September 30, 2016
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452,937 |
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$ |
21.16 |
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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:
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Nine months ended
September 30, |
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Three months ended
September 30, |
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2016 |
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2015 |
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2016 |
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2015 |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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Cost of revenue
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$ |
179 |
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$ |
111 |
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$ |
65 |
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$ |
34 |
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Research and development, net
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2,162 |
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1,323 |
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741 |
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438 |
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Sales and marketing
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681 |
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395 |
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179 |
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151 |
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General and administrative
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1,626 |
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966 |
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580 |
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496 |
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Total equity-based compensation expense
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$ |
4,648 |
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$ |
2,795 |
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$ |
1,565 |
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$ |
1,119 |
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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:
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Nine months ended
September 30, |
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Three months ended
September 30, |
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2016 |
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2015 |
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2016 |
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2015 |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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Expected dividend yield
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0% |
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0% |
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0% |
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0% |
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Expected volatility
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40%-49% |
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33%-49% |
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40%-49% |
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35%-49% |
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Risk-free interest rate
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0.5%-1.5% |
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0.2%-2.4% |
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0.5%-1.5% |
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0.3%-2.4% |
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Expected forfeiture (employees)
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— |
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10% |
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— |
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10% |
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Expected forfeiture (executives)
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5% |
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5% |
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5% |
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5% |
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Contractual term of up to
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10 Years |
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10 Years |
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10 Years |
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10 Years |
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Suboptimal exercise multiple (employees)
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— |
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2.1 |
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— |
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2.1 |
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Suboptimal exercise multiple (executives)
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2.4 |
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2.4 |
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2.4 |
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2.4 |
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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:
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Nine months ended
September 30, |
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Three months ended
September 30, |
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2016 |
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2015 |
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2016 |
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2015 |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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Expected dividend yield
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0% |
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0% |
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0% |
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0% |
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Expected volatility
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29%-57% |
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35%-36% |
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29%-48% |
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35%-36% |
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Risk-free interest rate
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0.3%-0.5% |
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0.1%-0.3% |
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0.4%-0.5% |
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0.2%-0.3% |
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Expected forfeiture
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0% |
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0% |
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0% |
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0% |
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Contractual term of up to
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24 months |
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24 months |
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24 months |
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24 months |
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