v2.4.0.6
Share-Based Compensation
 9 Months Ended
Jun. 29, 2012
Share-Based Compensation [Abstract]  
SHARE-BASED COMPENSATION

11. SHARE-BASED COMPENSATION

Equity Incentive Plans

The Company has two equity incentive plans: the Amended and Restated 2009 Stock Incentive Plan (2009 Plan) and the 2012 Omnibus Incentive Plan (2012 Plan). Upon the closing of the IPO, all shares that were reserved under the 2009 Plan but not awarded were assumed by the 2012 Plan. No additional awards will be made under the 2009 Plan. Under the 2012 Plan, the Company has the ability to issue incentive stock options (ISOs), nonstatutory stock options (NSOs), stock appreciation rights, restricted stock, restricted stock units (RSUs), performance units, performance shares and other equity-based awards. The ISOs and NSOs must be granted at a price per share not less than the fair value of our common stock on the date of grant. Options granted to date generally vest over a four-year period with 25% vesting at the end of one year and the remaining vest monthly thereafter. Options granted generally are exercisable up to 10 years. In the nine months ended June 29, 2012, the Company began granting RSUs, which generally vest annually over one, four or five years.

 

A summary of stock option activity for the nine months ended June 29, 2012, is as follows (in thousands):

 

                                 
    Number of
Shares		     Weighted-
Average
Exercise Price
Per Share		     Weighted-
Average
Remaining
Contractual
Term
(in years)		     Aggregate
Intrinsic
Value
(in thousands)		  

Outstanding-September 30, 2011

     2,292     $ 1.28       8.2     $ 32,662  
                   

 

 

    

 

 

  

Exercised

     (154 )    $ 1.12                  

Canceled or expired

     (67 )    $ 1.48                  
   

 

 

    

 

 

                  

Outstanding-June 29, 2012

     2,071     $ 1.27       7.4     $ 35,676  
   

 

 

    

 

 

    

 

 

    

 

 

  

Options vested and expected to vest as of June 29, 2012

     1,968     $ 1.27       7.4     $ 33,908  
   

 

 

    

 

 

    

 

 

    

 

 

  

Options vested and exercisable as of June 29, 2012

     896     $ 1.34       7.5     $ 15,382  
   

 

 

    

 

 

    

 

 

    

 

 

  

Aggregate intrinsic value represents the difference between the Company’s closing stock price on June 29, 2012 and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was $2.3 million for the nine months ended June 29, 2012. No options were granted in the nine months ended June 29, 2012. As of June 29, 2012, total unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options was $640,000, which is expected to be recognized over the next 1.3 years.

A summary of restricted stock activity for the nine months ended June 29, 2012, is as follows (in thousands):

 

                         
    Number of
Shares		     Weighted-
Average
Remaining
Contractual
Term
(in years)		     Aggregate
Intrinsic
Value		  

Issued and unvested-September 30, 2011

     225       2.3     $ 3,485  
           

 

 

    

 

 

  

Granted

     14                  

Vested

     (81 )                 

Canceled or expired

     (1 )                 
   

 

 

                  

Issued and unvested-June 29, 2012

     157       2.2     $ 2,913  
   

 

 

    

 

 

    

 

 

  

Shares expected to vest-June 29, 2012

     156       2.1     $ 2,884  
   

 

 

    

 

 

    

 

 

  

As of June 29, 2012, total unrecognized compensation cost, adjusted for estimated forfeitures, related to restricted stock was $1.3 million, which is expected to be recognized over the next 2.1 years.

No restricted stock units were issued prior to March 2012. A summary of restricted stock unit activity for the nine months ended June 29, 2012, is as follows (in thousands):

 

                         
    Number of
Shares		     Weighted-
Average
Remaining
Contractual
Term
(in years)		     Aggregate
Intrinsic
Value		  

Issued and unvested-June 29, 2012

     442       3.4     $ 7,843  
   

 

 

    

 

 

    

 

 

  

Shares expected to vest-June 29, 2012

     404       3.4     $ 7,173  
   

 

 

    

 

 

    

 

 

  

As of June 29, 2012, total unrecognized compensation cost, adjusted for estimated forfeitures, related to RSUs was approximately $7.4 million, which is expected to be recognized over the next 3.4 years.

Employee Stock Purchase Plan

Concurrently with the IPO in March 2012, the Company’s 2012 Employee Stock Purchase Plan (ESPP) became effective. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP provides for an initial offering period of eight months with six-month offering periods thereafter, and at the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last day of the offering period. Compensation expense related to the ESPP in the three and nine months ended June 29, 2012 was immaterial. As of June 29, 2012, total unrecognized compensation cost related to the ESPP was approximately $0.2 million, which is expected to be recognized through the first quarter of fiscal year 2013.

The following table presents the effects of stock-based compensation expense related to stock-based awards to employees and non-employees in the Company’s condensed consolidated statements of operations during the periods presented (in thousands):

 

                                 
    Three Months Ended     Nine Months Ended  
    June 29,
2012		     July 1,
2011		     June 29,
2012		     July 1,
2011		  

Cost of revenue

   $ 304     $ 126     $ 372     $ 270  

Research and development

     391       59       603       127  

Selling, general and administrative

     518       100       1,142       541  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total stock-based compensation expense

   $ 1,213     $ 285     $ 2,117     $ 938  
   

 

 

    

 

 

    

 

 

    

 

 

  

There were no material modifications to stock-based awards during the periods presented.