STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 28, 2012

Summary of Stock-Based Compensation Costs

The following table summarizes stock-based compensation costs in our Statements of Operations for the three and nine months ended September 28, 2012 and September 30, 2011:

	Three months ended				Nine months ended
	September 28, 2012		September 30, 2011		September 28, 2012		September 30, 2011
	(In thousands)
Stock-based compensation in:
Cost of revenue	$	702	$	843	$	2,301	$	2,352
Research and development expense		1,512		1,658		4,947		5,265
Selling, general and administrative expense		2,406		2,504		6,874		8,482
Total stock-based compensation in operating expense		3,918		4,162		11,821		13,747
Total stock-based compensation	$	4,620	$	5,005	$	14,122	$	16,099

Valuation Assumptions for Stock 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						Nine months ended
	September 28, 2012			September 30, 2011			September 28, 2012			September 30, 2011
Expected term (years)		4.70			4.75			4.70			4.75
Volatility		54	%		53	%		56	%		54	%
Risk-free interest rate		0.7	%		1.2	%		0.9	%		2.0	%
Expected dividends		0.0	%		0.0	%		0.0	%		0.0	%

Employee Stock Purchase Plan

The call option and put option were valued using the Black-Scholes option pricing model with the following assumptions:

	Purchase Period Ending						Purchase Period Ending
	June 30, 2012			December 31, 2012			June 30, 2011			December 31, 2011
Expected term (years)		0.5			0.5			0.5			0.5
Volatility		53	%		46	%		43	%		46	%
Risk-free interest rate		0.2	%		0.2	%		0.2	%		0.1	%
Expected dividends		0.0	%		0.0	%		0.0	%		0.0	%