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Common Stock and Stock-Based Compensation Plans
 6 Months Ended
Jun. 30, 2012
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-employee 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 the grant date. A summary of the Company’s stock option activity and related information for the three months ended June 30, 2012, are as follows:

 

                                 
    Number of
options		     Weighted
average
exercise
price		     Weighted
average
remaining
contractual
term		     Aggregate
intrinsic-
value		  

Outstanding as of March 31, 2012

     1,864,858     $ 15.79                  

Granted

     165,000       17.38                  

Exercised

     (7,615 )      8.06                  

Forfeited or expired

     (3,447 )      23.79                  
   

 

 

    

 

 

                  

Outstanding as of June 30, 2012

     2,018,796     $ 15.93       4.9     $ 3,383,254  
   

 

 

    

 

 

    

 

 

    

 

 

  

Exercisable as of June 30, 2012

     1,134,037     $ 11.84       3.7     $ 6,548,109  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

The following table shows the total equity-based compensation expense included in the interim condensed consolidated statements of comprehensive income:

 

                                 
    Six months ended
June 30,		     Three months ended
June 30,		  
    2012     2011     2012     2011  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Cost of revenue

   $ 104     $ 110     $ 53     $ 61  

Research and development, net

     859       862       394       484  

Sales and marketing

     439       456       200       255  

General and administrative

     920       697       430       371  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total equity-based compensation expense

   $ 2,322     $ 2,125     $ 1,077     $ 1,171  
   

 

 

    

 

 

    

 

 

    

 

 

  

The fair value for the Company’s stock options granted to employees and non-employees directors was estimated using the following assumptions:

 

                 
    Three months ended
June 30,		  
    2012     2011  
    (unaudited)     (unaudited)  

Expected dividend yield

     0 %      0 % 

Expected volatility

     47%-58 %      39%-56 % 

Risk-free interest rate

     0.2%-1.2 %      0.2%-2.5 % 

Expected forfeiture (employees)

     10 %      10 % 

Expected forfeiture (executives)

     5 %      5 % 

Contractual term of up to

     10 Years       10 Years  

Suboptimal exercise multiple (employees)

     2.1       2.0  

Suboptimal exercise multiple (executives)

     2.4       2.3  

The Company did not grant new purchase rights under the 2002 employee stock purchase plan during the three months ended June 30, 2012 and 2011.

As of June 30, 2012, there was $4,448 of unrecognized compensation expense related to unvested awards. This amount is expected to be recognized over a weighted-average period of 1.4 years. 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.