Stock-Based Compensation

6 Months Ended

Sep. 30, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

2. Stock-Based Compensation

The Company accounts for its stock-based compensation at fair value. The following table summarizes stock-based compensation expense by financial statement line item for the three and six months ended September 30, 2015 and 2014 (in thousands):

	Three months ended September 30,				Six months ended September 30,
	2015		2014		2015		2014
Cost of revenues	$	61	$	194	$	158	$	346
Research and development		87		521		283		1,000
Selling, general and administrative		558		803		1,393		1,753
Total	$	706	$	1,518	$	1,834	$	3,099

During the six months ended September 30, 2015, the Company granted 392,689 restricted stock awards. These awards generally vest over 3 years. During the six months ended September 30, 2014, the Company granted 100,000 stock options and 319,250 restricted stock awards. The stock options vest over 5 years, and the restricted stock awards generally vest over three years. Awards for restricted stock include both time-based and performance-based awards. For options and awards that vest upon the passage of time, expense is being recorded over the vesting period. Performance-based awards are expensed over the requisite service period based on probability of achievement.

The estimated fair value of the Company’s stock-based awards, less expected annual forfeitures, is amortized over the awards’ service period. The total unrecognized compensation cost for unvested outstanding stock options was $0.9 million at September 30, 2015. This expense will be recognized over a weighted average expense period of approximately 2.9 years. The total unrecognized compensation cost for unvested outstanding restricted stock was $3.5 million at September 30, 2015. This expense will be recognized over a weighted-average expense period of approximately 2.2 years.

The weighted average assumptions used in the Black-Scholes valuation model for stock options granted during the three and six months ended September 30, 2015 and 2014 are as follows:

	Three months ended September 30,		Six months ended September 30,
	2015	2014	2015	2014
Expected volatility	N/A	N/A	N/A		85.5	%
Risk-free interest rate	N/A	N/A	N/A		1.9	%
Expected life (years)	N/A	N/A	N/A		5.8
Dividend yield	None	None	None	None