Stock-based Compensation

9 Months Ended

Sep. 30, 2012

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

Disclosure of Compensation Related Costs, Share-based Payments

Stock-based Compensation

The following table summarizes the awards granted under the Radisys Corporation 2007 Stock Plan (in thousands):

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2012	2011	2012	2011
Stock options	391	242	464	303
Restricted stock	265	169	342	245
Performance based restricted stock	1,050	328	1,050	448
Continuous Computing options assumed	—	322	—	322
Total	1,706	1,061	1,856	1,318

On September 4, 2012, the Company's Compensation and Development Committee (“the Committee”) approved 249,750 performance based restricted stock awards under the Overlay Plan based on planned attainment of 100% of the performance goals being met.  The Overlay provides for the grants of awards payable in shares of common stock upon the achievement of performance goals set by the Committee.  The awards have four separate quarterly performance achievement dates in 2013 and vest one year after they are earned.

Effective September 10, 2012, the Committee canceled all outstanding awards under the Long-Term Incentive Plan ("LTIP"), resulting in the shares underlying such awards becoming eligible for grants of additional awards under the LTIP. Following such cancellation of awards, on September 10, 2012, the Committee approved 799,975 performance based restricted stock awards under the LTIP based on planned attainment of 100% of the performance goals being met.  The LTIP provides for the grants of awards payable in shares of common stock upon the achievement of performance goals set by the Committee.  The awards have four separate semi-annual performance achievement dates in 2013 and 2014 and vest upon attainment of the performance conditions. 

Stock-based compensation was recognized and allocated as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012			2011
Cost of sales	$	107	$	217	$	(98	)	$	572
Research and development	284		464		315			1,070
Selling, general and administrative	587		1,220		177			2,396
Total	$	978	$	1,901	$	394		$	4,038

In the second quarter of 2012, the Company determined that it was improbable that the LTIP performance goal established in May 2008 would be attained prior to the end of the measurement period and, as a result, reversed life-to-date LTIP expense of $2.4 million.