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Common Stock And Stock-Based Compensation Plans
9 Months Ended
Sep. 30, 2011
Common Stock And Stock-Based Compensation Plans [Abstract] 
Common Stock And Stock-Based Compensation Plans

NOTE 7:    COMMON STOCK AND STOCK-BASED COMPENSATION PLANS

The Company grants stock options to employees and non- employees directors of the Company and its subsidiaries and provides the right to purchase common stock pursuant to the Company's 2002 employee stock purchase plan to employees of the Company and its subsidiaries. The options granted under these plans have been granted at the fair market value of the Company's common stock on grant date. A summary of the Company's stock option activity and related information for the three months ended September 30, 2011, are as follows:

 

     Number of
options		     Weighted
average exercise
price		  

Outstanding as of June 30, 2011

      1,997,114      $ 14.52   

Granted

      44,000        32.34   

Exercised

      (46,663 )      8.00   

Forfeited or expired

      (20,795 )      20.40   
  

 

 

    

 

 

  

Outstanding as of September 30, 2011

      1,973,656      $ 15.01   
  

 

 

    

 

 

  

Exercisable as of September 30, 2011

      750,006      $ 8.45   
  

 

 

    

 

 

  

During the three and nine months ended September 30, 2011, the Company issued 36,054 and 131,306 shares of common stock under its employee and director stock purchase plans for an aggregate consideration of $646 and $1,236, respectively.

The following table shows the total equity-based compensation expense included in the interim condensed consolidated statement of operations:

 

     Nine months ended
September 30,		      Three months ended
September 30,		  
     2011      2010      2011      2010  
     (unaudited)      (unaudited)      (unaudited)      (unaudited)  

Cost of revenue

    $ 171       $ 56       $ 61       $ 23   

Research and development, net

      1,372         489         510         183   

Sales and marketing

      747         300         291         92   

General and administrative

      1,250         816         553         239   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total equity-based compensation expense

    $ 3,540       $ 1,661       $ 1,415       $ 537   
  

 

 

     

 

 

     

 

 

     

 

 

  

The fair value for the Company's stock options granted to employees was estimated using the following assumptions:

 

     Three months ended
September 30,		  
     2011     2010  
     (unaudited)     (unaudited)  

Expected dividend yield

      0 %      0 % 

Expected volatility

      41%-55 %      38%-60 % 

Risk-free interest rate

      0.2%-2.3 %      0.3%-2.5 % 

Expected forfeiture

      10 %      10 % 

Contractual term of up to

      7 Years        7 Years   

Suboptimal exercise multiple

      2.0        1.5   

No stock options were granted to non-employee directors during the three months ended September 30, 2011 and 2010.

The fair value for rights to purchase shares of common stock under the Company's employee share purchase plan was estimated on the date of grant using the same assumptions set forth above for the three months ended September 30, 2011 and 2010, except the expected life, which was assumed to be six to 24 months, and except the expected volatility, which was assumed to be in a range of 43%-50% for the three months ended September 30, 2011, and in a range of 37%-59% for the three months ended September 30, 2010.

As of September 30, 2011 and 2010, there were balances of $5,991 and $1,518, respectively, of unrecognized compensation expense related to unvested awards. The impact of equity-based compensation expense on basic net income per share was $0.06 and $0.15 for the three and nine months ended September 30, 2011, respectively, and $0.03 and $0.08 for the corresponding periods of 2010. The impact of equity-based compensation expense on diluted net income per share was $0.06 and $0.15 for the three and nine months ended September 30, 2011, respectively, and $0.02 and $0.08 for the corresponding periods of 2010. To the extent the actual forfeiture rate is different from what the Company has estimated, equity-based compensation related to these awards will be different from the Company's expectations.