Stock-Based Compensation

9 Months Ended

Dec. 31, 2011

Share-based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

STOCK-BASED COMPENSATION

The Company has a stock option plan that provides for the granting of stock options, restricted stock and restricted stock units to directors, employees and consultants. The Company also has an employee stock purchase plan allowing employees to purchase the Company’s common stock at a discount.

Total stock-based compensation expense included in the unaudited condensed consolidated statements of operations for the three and nine months ended December 31, 2011 and 2010, was as follows (in thousands):

	Three Months Ended December 31,				Nine Months Ended December 31,
	2011		2010		2011		2010
Cost of revenue	$	38	$	17	$	114	$	51
Operating expense:
Selling and marketing	112		71		290		270
Research and development	101		79		303		231
General and administrative	110		61		283		225
Total stock-based compensation expense	361		228		990		777
Income tax benefit	—		—		—		—
Net stock-based compensation expense	$	361	$	228	$	990	$	777

As of December 31, 2011, there was approximately $1.5 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a weighted-average period of 2.7 years.

In October, 2011, the Board of Directors of the Company adopted, subject to the approval of stockholders at the Annual Meeting of Stockholders to be held on Thursday, February 23, 2012, an amendment to the Company's 2001 Employee Stock Purchase Plan ("2001 Plan"), which otherwise was scheduled to expire by its own terms. The main changes in the Company's 2011 Amended and Restated Employee Stock Purchase Plan (“Stock Purchase Plan”) are: (i) to eliminate the ten-year term limit; (ii) to amend the definition of compensation used under the Stock Purchase Plan to include deferrals made under qualified transportation benefit programs; and (iii) to increase the hours per week that an otherwise eligible employee must work in order to be able to participate in the Stock Purchase Plan from more than ten (10) to more than twenty (20). In addition, the Stock Purchase Plan clarifies certain provisions of the 2001 Plan and amends various technical provisions in order to comply with applicable laws. The total number of shares of the Company's common stock reserved for issuance and available for purchase under the Stock Purchase Plan shall not increase from the 2001 Plan and shall remain at 1,000,000 (less any shares already issued under the 2001 Plan). The amendment does not affect the rights of participating employees under the existing plan's current offering period, and the amended plan will not become effective until and unless it is approved by the Company's shareholders.