COMMON STOCK AND STOCK-BASED COMPENSATION PLANS (Tables)

9 Months Ended

Sep. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

A summary of the Company’s stock option and SARs activities and related information for the nine months ended September 30, 2013, are as follows:


	Number of options and SAR units			Weighted average exercise price		Weighted average remaining contractual term		Aggregate intrinsic- value
Outstanding as of December 31, 2012		2,546,117		$	15.88
Granted (1)		810,250			16.72
Options/SAR units exercised		(139,192	)		8.15
Options/SAR units forfeited or expired		(65,538	)		22.63

Outstanding as of September 30, 2013 (2)		3,151,637		$	16.30		5.0	$	9,438,131

Exercisable as of September 30, 2013 (3)		1,535,800		$	14.51		3.4	$	7,871,821

(1)

Included 678,250 SAR units which are convertible for a maximum number of shares of the Company’s common stock equal to 75% of the SAR units subject to the grant.

(2)

Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 2,848,877 shares of the Company’s common stock issuable upon exercise.

(3)

Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 1,499,082 shares of the Company’s common stock issuable upon exercise.

Equity-Based Compensation Expense Included in Interim Condensed Consolidated Statements of Operations

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


	Nine months ended September 30,				Three months ended September 30,
	2013		2012		2013		2012
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Cost of revenue	$	223	$	177	$	73	$	73
Research and development, net		1,489		1,327		634		468
Sales and marketing		1,021		723		393		284
General and administrative		1,691		1,461		660		541

Total equity-based compensation expense	$	4,424	$	3,688	$	1,760	$	1,366

Assumptions Used to Estimate Fair Value of Stock Options Granted and SARs Granted to Employees

The fair value for the Company’s stock options and SARs (other than share issuances in connection with the employee stock purchase plan, as detailed below) granted to employees and non-employees directors was estimated using the following assumptions:


	Nine months ended September 30,						Three months ended September 30,
	2013			2012			2013			2012
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Expected dividend yield		0	%		0	%		0	%		0	%
Expected volatility		38%-54	%		47%-58	%		39%-53	%		47%-55	%
Risk-free interest rate		0.1%-2.5	%		0.1%-1.2	%		0.1%-2.0	%		0.2%-1.0	%
Expected forfeiture (employees)		10	%		10	%		10	%		10	%
Expected forfeiture (executives)		5	%		5	%		—			5	%
Contractual term of up to		10 Years			10 Years			7 Years			7 Years
Suboptimal exercise multiple (employees)		2.1			2.1			2.1			2.1
Suboptimal exercise multiple (executives)		2.4			2.4			—			2.4

Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan

The fair value for rights to purchase shares of common stock under the Company’s employee stock purchase plan was estimated on the date of grant using the following assumptions:


	Nine months ended September 30,						Three months ended September 30,
	2013			2012			2013			2012
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Expected dividend yield		0	%		0	%		0	%		0	%
Expected volatility		34%-53	%		41%-61	%		34%-52	%		47%-55	%
Risk-free interest rate		0.1%-0.2	%		0.1%-0.6	%		0.1%-0.2	%		0.2%-1.0	%
Expected forfeiture		0	%		0	%		0	%		0	%
Contractual term of up to		24 months			24 months			24 months			24 months