Stock-Based Compensation (Tables)

3 Months Ended

Mar. 30, 2012

Stock-Based Compensation [Abstract]

Stock-based compensation costs

The following table summarizes stock-based compensation costs in our Statements of Operations for the three months ended March 30, 2012 and April 1, 2011 (in thousands):

	Three months ended
	March 30, 2012		April 1, 2011
	(In thousands)
Cost of revenue	$	794	$	747
Research and development expense		1,724		1,836
Selling, general and administrative expense		2,282		3,419
Total employee stock-based compensation recognized in statement of operations		4,800		6,002
Amount capitalized in inventory		—		14
Total stock-based compensation	$	4,800	$	6,016

Weighted average assumptions of fair value options

The Company estimated the fair value of all employee stock options using a Black-Scholes valuation model with the following weighted average assumptions:

	Three months ended
	March 30, 2012			April 1, 2011
Expected term		4.70			4.75
Volatility		58	%		54	%
Risk-free interest rate		1.0	%		2.1	%
Expected dividends		0.0	%		0.0	%

The value of the stock purchase rights under the Company’s Employee Stock Purchase Plan (“ESPP”) consists of: (1) the 15% discount on the purchase of the stock; (2) 85% of the fair value of the call option; and (3) 15% of the fair value of the put option. The call option and put option were valued using the Black-Scholes option pricing model with the following assumptions:

	Three months ended
	March 30, 2012			April 1, 2011
Expected term		0.5			0.5
Volatility		53	%		54	%
Risk-free interest rate		0.2	%		0.3	%
Expected dividends		0.0	%		0.0	%