Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Awards and Per Share Information (Tables)

v2.4.0.6
Stock-Based Awards and Per Share Information (Tables)
 6 Months Ended
Jun. 30, 2012
Stock-Based Awards and Per Share Information [Abstract]  
Classification of compensation expense associated with share-based payments

The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands):

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2012     2011     2012     2011  

Cost of revenue

   $ 58     $ 36     $ 116     $ 66  

Sales and marketing

     120       99       241       184  

General and administrative

     125       274       483       359  

Engineering and development

     37       47       83       67  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 340     $ 456     $ 923     $ 676  
   

 

 

    

 

 

    

 

 

    

 

 

  
Assumptions used in estimating the fair value of stock options granted

The stock option fair values were estimated using the Black-Scholes option-pricing model with the following assumptions:

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2012     2011     2012     2011  

Expected term

     3.70 years       3.90 years       3.80 years       3.98 years  

Volatility

     103 %      107 %      103 %      106 % 

Annual dividend per share

   $ 0.00     $ 0.00     $ 0.00     $ 0.00  

Risk-free interest rate

     0.87 %      1.81 %      0.88 %      1.91 % 
Summary of option activity under stock option plans

A summary of option activity under the Company’s stock option plan for the six months ended June 30, 2012 is as follows:

 

                                 
    Shares     Weighted
average
exercise price		     Weighted average
remaining
contractual term
(years)		     Aggregate
intrinsic value(1)		  

Options outstanding at December 31, 2011

     3,858,000     $ 3.75                  

Plus: Options granted

     590,000     $ 2.65                  

Less: Options exercised

     (214,000 )    $ 2.12                  

Options forfeited, canceled, or expired

     (425,000 )    $ 3.78                  
   

 

 

                          

Options outstanding at June 30, 2012

     3,809,000     $ 3.67       4.2     $ 229,000  
   

 

 

                          

Options exercisable at June 30, 2012

     2,171,000     $ 4.32       4.1     $ 229,000  
   

 

 

                          

Vested options expired during the six months ended June 30, 2012

     190,000     $ 5.08                  

 

(1) The intrinsic value calculation does not include negative values. This can occur when the fair market value on the reporting date is less than the exercise price of the grant.
Cash proceeds along with fair value disclosures related to grants, exercises and vesting options

Cash proceeds along with fair value disclosures related to grants, exercises and vesting options are provided in the following table (in thousands, except per share amounts):

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2012     2011     2012     2011  

Proceeds from stock options exercised

   $ 145     $ 370     $ 422     $ 964  

Tax benefit related to stock options exercised (1)

     N/A       N/A       N/A       N/A  

Intrinsic value of stock options exercised (2)

   $ 80     $ 532     $ 91     $ 1,141  

Weighted-average fair value of options granted during period

   $ 1.78     $ 3.80     $ 1.82     $ 3.43  

Total fair value of shares vested during the period

   $ 473     $ 364     $ 1,029     $ 563  

 

(1) Excess tax benefits received related to stock option exercises are presented as financing cash inflows. The Company currently does not receive a tax benefit related to the exercise of stock options due to net operating losses.
(2) The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the market price of the stock on the date of grant.