Share-Based Compensation

6 Months Ended

Dec. 31, 2012

Share-Based Compensation [Abstract]

Share-Based Compensation

4. Share-Based Compensation

     As of December 31, 2012, we had share-based employee compensation plans which are described in Note 11 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2012. Stock awards are granted with an exercise price equal to the market price of our stock at the date of grant. We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of December 31, 2012, we had 245,356 stock options outstanding and 509,252 restricted shares outstanding. No stock options were granted during the six months ended December 31, 2012.

     During the three and six months ended December 31, 2012, we issued 34,000 and 243,000 shares of restricted stock, respectively. These restricted stock issuances consisted of 34,000 and 109,667 restricted shares granted to employee participants that vest ratably over a four year service period as long as the participant remains employed with Concurrent, respectively. The issuance of restricted shares also consisted of 0 and 133,333 performance-based restricted shares granted to executive management during the three and six months ended December 31, 2012, respectively, that vest based upon meeting specified company performance criteria over the next three years. A summary of the activity of our time-based, service condition restricted shares during the six months ended December 31, 2012, is presented below:

				Weighted Average
				Grant Date
Restricted Stock Awards	Shares			Fair Value
Non-vested at July 1, 2012	246,066		$	4.94
Granted	109,667			4.63
Vested	(91,102	)		4.61
Forfeited	(20,185	)		5.03
Non-vested at December 31, 2012	244,446		$	4.91

     During the three and six months ended December 31, 2012, we did not release restrictions on any previously granted performance based restricted shares, as we did not meet the specified performance criteria related to our fiscal 2012 results that would allow for release of such shares. We cancelled 3,708 and 87,381 performance-based restricted shares during the three and six months ended December 31, 2012, respectively, that had been granted to executive management and were either forfeited or expired during the period primarily because neither the performance criteria for our fiscal 2010, 2011 and 2012 financial results, nor the market condition (achievement of a certain share price) were met. A summary of the activity of our performance based restricted shares during the six months ended December 31, 2012, is presented below:

				Weighted Average
				Grant Date
Performance Stock Awards	Shares			Fair Value
Non-vested at July 1, 2012	218,854		$	2.25
Granted	133,333			4.40
Vested	-			-
Forfeited	(87,381	)		1.23
Non-vested at December 31, 2012	264,806		$	3.66

     We recorded share-based compensation related to the issuance of stock options and restricted stock to employees, board members, and non-employees, as follows (in thousands):

		Three Months Ended				Six Months Ended
		December 31,				December 31,
		2012		2011		2012		2011
Share-based compensation expense
included in the Statements of Operations:
Cost of sales	$	14	$	16	$	27	$	34
Sales and marketing		41		38		68		75
Research and development		27		30		54		74
General and administrative		119		102		220		273
Total		201		186		369		456
Tax benefit		-		-		-		-
Share-based compensation expense, net of taxes	$	201	$	186	$	369	$	456