|
STOCK-BASED AWARDS AND PER SHARE INFORMATION (Tables)
|
9 Months Ended |
|
Sep. 30, 2012
|
| 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 September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Cost of revenue
|
|
$ |
67 |
|
|
$ |
45 |
|
|
$ |
183 |
|
|
$ |
111 |
|
|
Sales and
marketing
|
|
|
134 |
|
|
|
75 |
|
|
|
375 |
|
|
|
259 |
|
|
General and
administrative
|
|
|
103 |
|
|
|
177 |
|
|
|
586 |
|
|
|
536 |
|
|
Engineering and
development
|
|
|
53 |
|
|
|
27 |
|
|
|
136 |
|
|
|
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
357 |
|
|
$ |
324 |
|
|
$ |
1,280 |
|
|
$ |
1,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assumptions Used in Estimating 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 September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Expected term
|
|
|
3.70 years |
|
|
|
4.30 years |
|
|
|
3.80 years |
|
|
|
4.08 years |
|
|
Volatility
|
|
|
97 |
% |
|
|
105 |
% |
|
|
101 |
% |
|
|
106 |
% |
|
Annual dividend per
share
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
Risk-free interest
rate
|
|
|
0.68 |
% |
|
|
1.23 |
% |
|
|
0.81 |
% |
|
|
1.70 |
% |
|
| Summary of Option Activity under Stock Option Plans |
A summary of option activity under the Company’s stock
option plan for the nine months ended September 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
|
|
|
887,000 |
|
|
$ |
2.55 |
|
|
|
|
|
|
|
|
|
|
Less: Options
exercised
|
|
|
(214,000 |
) |
|
$ |
2.12 |
|
|
|
|
|
|
|
|
|
|
Options forfeited,
canceled, or expired
|
|
|
(830,000 |
) |
|
$ |
3.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options outstanding at
September 30, 2012
|
|
|
3,701,000 |
|
|
$ |
3.58 |
|
|
|
4.1 |
|
|
$ |
158,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options exercisable at
September 30, 2012
|
|
|
2,214,000 |
|
|
$ |
4.17 |
|
|
|
4.1 |
|
|
$ |
157,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vested options expired
during the nine months ended September 30, 2012
|
|
|
355,000 |
|
|
$ |
4.78 |
|
|
|
|
|
|
|
|
|
| (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 September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Proceeds from stock options
exercised
|
|
$ |
33 |
|
|
$ |
254 |
|
|
$ |
455 |
|
|
$ |
1,218 |
|
|
Tax benefit related to
stock options exercised (1)
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
Intrinsic value of stock
options exercised (2)
|
|
$ |
0 |
|
|
$ |
167 |
|
|
$ |
91 |
|
|
$ |
1,308 |
|
|
Weighted-average fair value
of options granted during period
|
|
$ |
1.02 |
|
|
$ |
2.84 |
|
|
$ |
1.55 |
|
|
$ |
3.25 |
|
|
Total fair value of shares
vested during the period
|
|
$ |
398 |
|
|
$ |
311 |
|
|
$ |
1,410 |
|
|
$ |
874 |
|
| (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. |
|
| Stock Repurchase Activities |
Stock repurchase activities during the three and nine months
ended September 30, 2012 are provided in the following
table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total number
of shares
purchased |
|
|
Average price
paid per
share |
|
|
Total number
of shares
purchased as
part of
publicly
announced
plans
or programs |
|
|
Maximum
number of
shares that
may yet be
purchased
under the
plans
or programs
(1) |
|
|
7/1/2012 –
7/31/2012
|
|
|
102,306 |
|
|
$ |
1.74 |
|
|
|
102,306 |
|
|
|
1,797,194 |
|
|
8/1/2012 –
8/31/2012
|
|
|
31,059 |
|
|
|
1.69 |
|
|
|
31,059 |
|
|
|
1,766,135 |
|
|
9/1/2012 –
9/30/2012
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,766,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
133,365 |
|
|
$ |
1.73 |
|
|
|
133,365 |
|
|
|
1,766,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
All share repurchases were
completed pursuant to the share repurchase plan approved by the
Board on August 10, 2011, which such plan permits management
to repurchase, subject to the terms of the plan, up to an aggregate
of 2,000,000 shares of the Company’s outstanding common stock
prior to the plan’s expiration on August 12,
2013. |
|