Stock-Based Compensation (Tables)

3 Months Ended

Jul. 01, 2012

Stock-Based Compensation [Abstract]

Summary of ESPP Transactions

The following table summarizes our ESPP transactions during the fiscal periods presented (in thousands, except per share amounts):

	As of July 1, 2012		Three Months Ended July 1, 2012
	Shares of Common Stock		Shares of Common Stock		Weighted Average Price
Authorized to issue		4,500
Reserved for future issuance		1,412
Issued				6	$	7.67

Stock Option Transactions

Our stock option transactions during the three months ended July 1, 2012 are summarized as follows:

	Outstanding			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (1) (in thousands)		In-the-money Options Vested and Exercisable (in thousands)
Balance at April 1, 2012		6,345,307		$	7.23		4.67	$	9,474		1,193
Granted		716,200			8.02
Exercised		(312,007	)		6.67
Cancelled		(24,151	)		7.17
Forfeited		(628,898	)		6.29
Balance at July 1, 2012		6,096,451		$	7.45		4.53	$	6,658		2,490
Vested and expected to vest, July 1, 2012		5,411,621		$	7.53		4.29	$	5,763
Vested and exercisable, July 1, 2012		2,490,125		$	8.48		2.21	$	1,558

(1) The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value, which is based on the closing price of our common stock of $8.13 and $8.40 as of July 1, 2012 and April 1, 2012, respectively. These are the values which would have been received by option holders if all option holders exercised their options on that date.

Options exercised

Options exercised for the periods indicated below were as follows (in thousands):

	July 1, 2012		July 3, 2011
Intrinsic value of options exercised	$	398	$	5

RSU Transactions

Our RSU transactions during the three months ended July 1, 2012 are summarized as follows:

	Shares			Weighted Average Grant- Date Fair Value		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value  (1) (in thousands)		Unrecognized Stock-based Compensation Cost (2) (in thousands)
Unvested at April 1, 2012		604,655		$	7.13		2.38	$	5,079	$	3,537
Granted		161,254			8.29
Issued and released		(39,005	)		7.54
Cancelled		(79,250	)		6.96
Unvested at July 1, 2012		647,654		$	7.41		2.10	$	5,265	$	3,506
Vested and expected to vest, July 1, 2012		491,898					1.98	$	3,999

(1) The aggregate intrinsic value of RSUs represents the closing price per share of our stock at the end of the periods presented, multiplied by the number of unvested RSUs or the number of vested and expected to vest RSUs, as applicable, at the end of each period.

(2) For RSUs, stock-based compensation expense was calculated based on our stock price on the date of grant, multiplied by the number of RSUs granted. The grant date fair value of RSUs less estimated forfeitures was recognized on a straight-line basis, over the vesting period.

Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense related to stock options and RSUs during the fiscal periods presented (in thousands):

	Three Months Ended
	July 1, 2012			July 3, 2011
Cost of sales	$	(15	)	$	59
Research and development		(126	)		302
Selling, general and administrative		315			523
Total Stock-based compensation expense	$	174		$	884

Unrecognized Stock-Based Compensation Expense

The following table summarizes unrecognized stock-based compensation expense related to stock options and RSUs for the three months ended July 1, 2012:

	July 1, 2012
	Amount (in thousands)		Weighted Average Expected Remaining Period (in years)
Options	$	7,522		2.97
RSUs (1)		3,506		2.95
Total Stock-based compensation expense	$	11,028

(1) For RSUs, stock-based compensation expense was calculated based on our stock price on the date of grant, multiplied by the number of RSUs granted. The grant date fair value of RSUs, less estimated forfeitures, is recognized on a straight-line basis over the vesting period.

Weighted average assumptions to calculate fair values of options granted

We used the following weighted average assumptions to calculate the fair values of options granted during the fiscal periods presented:

	Three Months Ended
	July 1, 2012			July 3, 2011
Expected term of options (years)		4.2			4.3
Risk-free interest rate		0.6	%		1.5	%
Expected volatility		42	%		41	%
Expected dividend yield		—			—
Weighted average estimated fair value	$	2.75		$	2.15