Stock-Based Compensation

9 Months Ended

Dec. 31, 2015

8.Stock-Based Compensation

We currently maintain two separate stock incentive plans. Of these plans, we may only grant future awards from the 2007 Omnibus Incentive Plan (the “2007 Plan”). The 2007 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and other stock-based awards. At December 31, 2015, there were approximately 902,000 shares of common stock available for grant or issuance under the 2007 Plan. In September 2015, we granted 1,350,000 stock options to our new CEO under the 2007 Plan, using the following Black-Scholes input assumptions on the date of the grant: (i) expected life of approximately 7.3 years, (ii) risk-free interest rate of 1.9%, (iii) expected volatility of approximately 0.48, and (iv) dividend yield of 0%. Total stock options vested and expected to vest were approximately 2.9 million and 2.2 million as of December 31, 2015 and 2014, respectively.

Stock Options

A summary of activity with respect to our stock options for the nine months ended December 31, 2015 is as follows:

	Number of Shares		Weighted- Average Exercise Price Per Share
	(In thousands)

Options outstanding at March 31, 2015	2,199		$	1.83
Granted	1,808		2.35
Exercised	(235	)	1.57
Forfeited	(79	)	1.82
Expired	(376	)	2.36

Options outstanding at December 31, 2015	3,317		$	2.07

Restricted Stock Units

A summary of activity with respect to our RSUs, which entitle the holder to receive one share of our common stock for each RSU upon vesting, for the nine months ended December 31, 2015 is as follows:

	Number of
	Shares
	(In thousands)
Restricted stock units ouststanding at March 31, 2015	194
Restricted stock units granted	63
Restricted stock units vested	(66	)
Restricted stock units forfeited	(18	)

Restricted stock units outstanding at December 31, 2015	173

Stock-Based Compensation Expense

The following table presents stock-based compensation expense that is included in each functional line item on our unaudited consolidated statements of operations:

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
	(In thousands)
Cost of revenues	$	13	$	5	$	31	$	14
Selling, general and administrative expense	205		64		363		219
Research and development expense	15		20		35		41

	$	233	$	89	$	429	$	274

At December 31, 2015, there was approximately $2.3 million and $295,000 of unrecognized compensation expense related to unvested stock options and RSUs, respectively. This expense is currently expected to be recognized over a weighted average period of approximately 3.3 years for stock options and 2.8 years for RSUs.