Stockholders' Equity

9 Months Ended

Apr. 01, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

Note 7. Stockholders' Equity

Stock Options and Awards Activity

Stock award activity for the nine months ended April 1, 2012 is as follows:

				Non Performance-based Options Outstanding					Restricted Stock Outstanding
	Shares Available For Grant			Number  of Shares			Weighted Average Exercise Price Per Share		Number  of Shares			Weighted Average Grant-Date Fair Value
	(In thousands, except per share amounts)
Balances at July 3, 2011		4,463			6,534		$	5.78		228		$	6.39
Granted - options		(2,053	)		2,053			5.15		—			—
Granted - restricted shares		(312	)		—			—		156			5.32
Exercised		—			(331	)		4.51		—			—
Vested		—			—			—		(123	)		6.53
Cancelled and Expired		623			(623	)		7.21		—			—
Balances at April 1, 2012		2,721			7,633		$	5.55		261		$	5.69

Stock options outstanding, vested and expected to vest, and exercisable as of April 1, 2012 were as follows:

Options	Number of Shares		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value
	(In thousands)		(In years)				(In thousands)
Outstanding		7,633		4.74	$	5.55	$	4,242
Vested and expected to vest		7,278		4.66	$	5.56	$	4,072
Exercisable		3,581		3.45	$	5.71	$	2,285

The aggregate intrinsic value in the preceding table represents the total pre-tax value of stock options outstanding as of April 1, 2012, based on our common stock closing price of $5.77 on March 30, 2012, which would have been received by the option holders had all option holders exercised their options as of that date.

The total intrinsic value of options exercised during the third quarter of fiscal 2012 and 2011 was approximately $0.4 million and $0.2 million, respectively. The total intrinsic value of options exercised during the first nine months of fiscal 2012 and 2011 was approximately $0.5 million and $0.6 million, respectively.

For the third quarter of fiscal 2012 and 2011, the weighted-average estimated fair value of options granted was $2.57 and $3.09 per share, respectively. For the nine months ended April 1, 2012 and March 27, 2011, the weighted-average estimated fair value of options granted was $2.45 and $3.08 per share, respectively. Our calculations were made using the Black-Scholes option-pricing model. The fair value of Symmetricom stock-based awards to employees was estimated assuming no expected dividends and the weighted-average assumptions for the three and nine months ended April 1, 2012 and March 27, 2011 as follows:

	Three months ended						Nine months ended
	April  1, 2012			March  27, 2011			April  1, 2012			March  27, 2011
Expected life (in years)		4.4			4.6			4.9			5.1
Risk-free interest rate		0.7	%		1.3	%		0.7	%		1.2	%
Volatility		56.9	%		56.4	%		56.4	%		56.7	%

We calculated the stock-based compensation expense in the third quarter of fiscal 2012 and 2011, using an estimated annual forfeiture rate of 6.6% and 8.0%, respectively. At April 1, 2012, the total cumulative compensation cost related to unvested stock-based awards granted to employees, directors and consultants under the Company's stock option plans, but not yet recognized, was approximately $6.2 million, net of estimated forfeitures of $0.8 million. This cost will be amortized on an accelerated method basis over a period of approximately 1.4 years and will be adjusted for subsequent changes in estimated forfeitures.

The following table shows total stock-based compensation costs included in the condensed consolidated statements of operations:

	Three Months Ended				Nine Months Ended
	April 1, 2012		March 27, 2011		April 1, 2012		March 27, 2011
	(In thousands)				(In thousands)
Cost of sales	$	272	$	253	$	606	$	506
Research and development		312		240		896		562
Selling, general and administrative		1,154		1,055		3,079		2,050
Stock compensation expense from continuing operations		1,738		1,548		4,581		3,118
Stock compensation expense from discontinued operations		—		—		—		(114	)
Total	$	1,738	$	1,548	$	4,581	$	3,004

The above table includes expense of $0.1 million and $0.4 million, relating to the employee stock purchase plan (ESPP) for the third quarter and first nine months of fiscal 2012, respectively. ESPP expense in the third quarter and first nine months of fiscal 2011 was $0.1 million and $0.1 million, respectively.

Performance Awards

In the second quarter of fiscal 2012, the Company communicated its intention to grant 110,000 shares of performance based restricted stock to its executive management employees subject to the achievement of certain financial performance targets. The number of stock awards that will ultimately be granted depends on actual business performance measured for fiscal 2012 against certain targets for revenue and profitability for the Company's business as well as continued employment with the Company.

Stock Repurchases

During the third quarter of fiscal 2012, the Company repurchased 665,300 shares of common stock pursuant to our repurchase program for an aggregate price of approximately $4.0 million.

On November 17, 2011, the Company's Board of Directors authorized management to repurchase an additional 4.1 million shares of Symmetricom common stock in addition to the remaining shares available for repurchase under previously approved programs. As of April 1, 2012, the total number of shares available for repurchase under the repurchase program authorized by the Board of Directors was approximately 3.8 million.