v2.4.0.6
Share-Based Compensation
 3 Months Ended
Dec. 28, 2012
Share-Based Compensation

11. SHARE-BASED COMPENSATION

The following table presents the effects of share-based compensation expense related to share-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  
     December 28,
2012		      December 30,
2011		  

Cost of revenue

    $ 317       $ 30   

Research and development

      372         98   

Selling, general and administrative

      934         345   
  

 

 

     

 

 

  

Total stock-based compensation expense

    $ 1,623       $ 473   
  

 

 

     

 

 

  

A summary of stock option activity for the three months ended December 28, 2012, is as follows (in thousands, except per share amounts):

 

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

Outstanding-September 28, 2012

      1,861      $ 1.23         7.1       $ 21,352   
       

 

 

     

 

 

  

Exercised

      (138 )      1.13         

Forfeited, canceled or expired

      (271 )      0.64         
  

 

 

    

 

 

        

Outstanding-December 28, 2012

      1,452      $ 1.34         6.8       $ 19,734   
  

 

 

    

 

 

     

 

 

     

 

 

  

Options vested and expected to vest as of December 28, 2012

      1,347      $ 1.40         6.8       $ 18,234   
  

 

 

    

 

 

     

 

 

     

 

 

  

Options vested and exercisable as of December 28, 2012

      814      $ 1.26         6.8       $ 11,124   
  

 

 

    

 

 

     

 

 

     

 

 

  

Included in the table above as of December 28, 2012 were stock options for the purchase of 125,000 shares of common stock whereby vesting was contingent upon the achievement of specific performance targets. On December 31, 2012, these stock options expired unvested due to the performance targets not being achieved.

Aggregate intrinsic value represents the difference between the Company’s closing stock price on December 28, 2012 and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was $1.5 million for the three months ended December 28, 2012. No options were granted in the three months ended December 28, 2012. As of December 28, 2012, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was $398,000, which is expected to be recognized over the next 1.0 years.

A summary of restricted stock and units activity for the three months ended December 28, 2012, is as follows (in thousands):

 

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

Unvested-September 28, 2012

      582        2.9       $ 7,391   
    

 

 

     

 

 

  

Granted

      191     

Vested

      (20 )   

Forfeited, canceled or expired

      (5 )   
  

 

 

       

Issued and unvested-December 28, 2012

      748        2.8       $ 11,171   
  

 

 

    

 

 

     

 

 

  

Shares expected to vest-December 28, 2012

      698        2.8       $ 10,426   
  

 

 

    

 

 

     

 

 

  

The total intrinsic value of awards vesting was $250,000 for the three months ended December 28, 2012. As of December 28, 2012, total unrecognized compensation cost, adjusted for estimated forfeitures, related to restricted stock and units was $8.7 million, which is expected to be recognized over the next 2.8 years.

As of December 28, 2012, total unrecognized compensation cost related to the 2012 Employee Stock Purchase Plan (ESPP) was approximately $0.2 million, which is expected to be recognized through the third quarter of fiscal year 2013.

Certain of the share-based awards granted and outstanding as of September 28, 2012 are subject to accelerated vesting upon a sale of the Company or similar changes in control.

Effective September 29, 2012, pursuant to an “evergreen” provision, the number of shares of common stock available for issuance under the 2012 Omnibus Incentive Plan and the ESPP were increased by 1.9 million shares and 0.6 million shares, respectively.

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