XML 94 R16.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Stock-based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-based Compensation | 9. Stock-based Compensation The Company’s equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for talented employees, consultants, officers, and directors and to align stockholder and employee interests. The Company may grant options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance shares, performance units, and other stock-based or cash-based awards to employees, officers, directors, and consultants. Under these programs, stock options may be granted at prices not less than the fair market value on the date of grant for stock options. These options generally vest over 4 years and expire from 5 to 10 years from the date of grant. Restricted stock generally vests over one year. RSUs generally vest over 3 years. Awards granted other than an option or stock appreciation right shall reduce the common stock shares available for grant by 1.75 shares for every share issued.
|  | December 31, |
|  | 2014 |
Common stock shares available for grant |  |  | 2,247,565 |
Common stock options outstanding |  |  | 3,536,157 |
Restricted stock awards outstanding |  |  | 35,364 |
Restricted stock units outstanding |  |  | 564,891 |
Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (“ESPP”). Under the ESPP, eligible employees may purchase common stock through payroll deductions at a purchase price of 85% of the lower of the fair market value of the Company’s stock at the beginning of the offering period or the purchase date. Participants may not purchase more than 2,000 shares in a six-month offering period or purchase stock having a value greater than $25,000 in any calendar year as measured at the beginning of the offering period. A total of 1,000,000 shares of common stock have been reserved for issuance under the ESPP. As of December 31, 2014, 557,738 shares had been purchased since the inception of the ESPP in 1999. Under ASC 718-10, the ESPP is considered a compensatory plan and the Company is required to recognize compensation cost related to the fair value of the award purchased under the ESPP. Shares purchased under the ESPP for the year ended December 31, 2014 are listed below. Shares purchased under the ESPP for the year ended December 31, 2013 are 36,921. The intrinsic value listed below is calculated as the difference between the market value on the date of purchase and the purchase price of the shares.
|  | Year Ended December 31, 2014 |
Shares purchased under ESPP |  |  | 38,298 |
Average price of shares purchased under ESPP |  | $ | 9.95 |
Intrinsic value of shares purchased under ESPP |  | $ | 107,000 |
Summary of Standard Stock Options The following table sets forth the summary of option activity under the Company’s stock option plans for the years ended December 31, 2014, 2013, and 2012:
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Fair Value Of Options Granted |  |  | Aggregate Intrinsic Value of Options Exercised (In thousands) |
Outstanding at January 1, 2012 |  |  | 3,267,838 |  |  | $ | 6.61 |  |  |  |  |  |  |  |  |
Granted |  |  | 425,150 |  |  |  | 6.10 |  |  | $ | 3.35 |  |  |  |  |
Exercised |  |  | (231,403 | ) |  |  | 4.52 |  |  |  |  |  |  | $ | 443 |
Forfeited |  |  | (47,959 | ) |  |  | 5.89 |  |  |  |  |  |  |  |  |
Expired |  |  | (257,995 | ) |  |  | 7.32 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2012 |  |  | 3,155,631 |  |  |  | 6.65 |  |  |  |  |  |  |  |  |
Granted |  |  | 1,058,700 |  |  |  | 10.20 |  |  |  | 5.63 |  |  |  |  |
Exercised |  |  | (956,633 | ) |  |  | 6.68 |  |  |  |  |  |  |  | 5,774 |
Forfeited |  |  | (10,531 | ) |  |  | 8.24 |  |  |  |  |  |  |  |  |
Expired |  |  | (20,000 | ) |  |  | 9.01 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2013 |  |  | 3,227,167 |  |  |  | 7.78 |  |  |  |  |  |  |  |  |
Granted |  |  | 604,620 |  |  |  | 10.32 |  |  |  | 4.93 |  |  |  |  |
Exercised |  |  | (205,744 | ) |  |  | 6.34 |  |  |  |  |  |  |  | 1,125 |
Forfeited |  |  | (102,454 | ) |  |  | 7.20 |  |  |  |  |  |  |  |  |
Expired |  |  | (37,432 | ) |  |  | 10.19 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2014 |  |  | 3,486,157 |  |  |  | 8.30 |  |  |  |  |  |  |  |  |
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money. Information regarding standard stock options outstanding at December 31, 2014, 2013, and 2012 is summarized below:
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (years) |  |  | Aggregate Intrinsic Value (In millions) |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options outstanding |  |  | 3,155,631 |  |  | $ | 6.65 |  |  |  | 5.24 |  |  | $ | 3.5 |
Options vested and expected to vest using estimated forfeiture rates |  |  | 3,019,979 |  |  |  | 6.67 |  |  |  | 5.17 |  |  |  | 3.4 |
Options exercisable |  |  | 2,329,987 |  |  |  | 6.91 |  |  |  | 4.69 |  |  |  | 2.5 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options outstanding |  |  | 3,227,167 |  |  | $ | 7.78 |  |  |  | 5.46 |  |  | $ | 9.9 |
Options vested and expected to vest using estimated forfeiture rates |  |  | 2,994,044 |  |  |  | 7.61 |  |  |  | 5.41 |  |  |  | 9.6 |
Options exercisable |  |  | 1,774,546 |  |  |  | 6.67 |  |  |  | 4.95 |  |  |  | 7.5 |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options outstanding |  |  | 3,486,157 |  |  | $ | 8.30 |  |  |  | 4.85 |  |  | $ | 6.6 |
Options vested and expected to vest using estimated forfeiture rates |  |  | 3,319,308 |  |  |  | 8.21 |  |  |  | 4.80 |  |  |  | 6.6 |
Options exercisable |  |  | 2,023,024 |  |  |  | 7.18 |  |  |  | 4.26 |  |  |  | 6.0 |
Additional information regarding standard options outstanding as of December 31, 2014 is as follows:
|  | Options Outstanding |  |  | Options Exercisable |
Range of Exercise Prices |  | Number Outstanding |  |  | Weighted Average Remaining Contractual Life (Years) |  |  | Weighted Average Exercise Price |  |  | Number Exercisable |  |  | Weighted Average Exercise Price |
$ 2.70 - $3.81 |  |  | 20,297 |  |  |  | 4.21 |  |  | $ | 2.88 |  |  |  | 20,297 |  |  | $ | 2.88 |
3.85 - 3.85 |  |  | 600,000 |  |  |  | 4.87 |  |  |  | 3.85 |  |  |  | 600,000 |  |  |  | 3.85 |
4.24 - 6.12 |  |  | 578,769 |  |  |  | 4.09 |  |  |  | 5.86 |  |  |  | 467,289 |  |  |  | 5.83 |
6.23 - 8.61 |  |  | 453,931 |  |  |  | 4.39 |  |  |  | 7.44 |  |  |  | 366,187 |  |  |  | 7.43 |
8.71 - 9.20 |  |  | 315,030 |  |  |  | 5.47 |  |  |  | 9.16 |  |  |  | 101,572 |  |  |  | 9.10 |
9.53 - 9.53 |  |  | 850,000 |  |  |  | 5.18 |  |  |  | 9.53 |  |  |  | 229,374 |  |  |  | 9.53 |
9.65 - 13.61 |  |  | 355,130 |  |  |  | 6.07 |  |  |  | 11.64 |  |  |  | 18,218 |  |  |  | 12.58 |
13.65 - 14.80 |  |  | 203,000 |  |  |  | 4.80 |  |  |  | 14.15 |  |  |  | 110,087 |  |  |  | 14.31 |
15.12 - 15.12 |  |  | 10,000 |  |  |  | 2.62 |  |  |  | 15.12 |  |  |  | 10,000 |  |  |  | 15.12 |
16.57 - 16.57 |  |  | 100,000 |  |  |  | 2.74 |  |  |  | 16.57 |  |  |  | 100,000 |  |  |  | 16.57 |
$2.70 - $16.57 |  |  | 3,486,157 |  |  |  | 4.85 |  |  | $ | 8.30 |  |  |  | 2,023,024 |  |  | $ | 7.18 |
Summary of Market Condition Based Stock Options In 2014 the Company began granting options that are subject to both time-based vesting and a market condition. For these options, the closing price of the Company stock must exceed a certain level for a number of trading days within a specified timeframe or the options will be cancelled before the seven year life of the options. The following table sets forth the summary of the market-based option activity under the Company’s stock option plans for the year ended December 31, 2014:
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Fair Value Of Options Granted |  |  | Aggregate Intrinsic Value of Options Exercised (In thousands) |
Outstanding at January 1, 2014 |  |  | 0 |  |  | $ | 0.00 |  |  |  |  |  |  |  |  |
Granted |  |  | 50,000 |  |  |  | 11.94 |  |  |  | 5.71 |  |  |  |  |
Exercised |  |  | 0 |  |  |  | 0.00 |  |  |  |  |  |  |  | 0 |
Forfeited |  |  | 0 |  |  |  | 0.00 |  |  |  |  |  |  |  |  |
Expired |  |  | 0 |  |  |  | 0.00 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2014 |  |  | 50,000 |  |  |  | 11.94 |  |  |  |  |  |  |  |  |
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money. Information regarding these market condition based stock options outstanding at December 31, 2014 is summarized below:
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (years) |  |  | Aggregate Intrinsic Value (In millions) |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options outstanding |  |  | 50,000 |  |  | $ | 11.94 |  |  |  | 6.15 |  |  | $ | 0.0 |
Options vested and expected to vest using estimated forfeiture rates |  |  | 45,430 |  |  |  | 11.94 |  |  |  | 6.15 |  |  |  | 0.0 |
Options exercisable |  |  | 0 |  |  |  | 0.00 |  |  |  | 0.00 |  |  |  | 0.0 |
Additional information regarding market condition based stock options outstanding as of December 31, 2014 is as follows:
|  | Options Outstanding |  |  | Options Exercisable |
Range of Exercise Prices |  | Number Outstanding |  |  | Weighted Average Remaining Contractual Life (Years) |  |  | Weighted Average Exercise Price |  |  | Number Exercisable |  |  | Weighted Average Exercise Price |
$ 11.94 - $11.94 |  |  | 50,000 |  |  |  | 6.15 |  |  | $ | 11.94 |  |  |  | 0 |  |  | $ | 0.00 |
Summary of Restricted Stock Units RSU activity for the years ended December 31, 2014, 2013, and 2012 was as follows:
|  | Number of Shares |  |  | Weighted Average Grant Date Fair Value |  |  | Fair Value of Released RSU’s (In thousands) |
Outstanding at January 1, 2012 |  |  | 407,765 |  |  |  |  |  |  |  |  |
Awarded |  |  | 555,911 |  |  | $ | 6.64 |  |  |  |  |
Released |  |  | (203,519 | ) |  |  |  |  |  | $ | 1,128 |
Forfeited |  |  | (51,506 | ) |  |  |  |  |  |  |  |
Outstanding at December 31, 2012 |  |  | 708,651 |  |  |  |  |  |  |  |  |
Awarded |  |  | 294,150 |  |  |  | 7.12 |  |  |  |  |
Released |  |  | (303,882 | ) |  |  |  |  |  |  | 2,806 |
Forfeited |  |  | (30,863 | ) |  |  |  |  |  |  |  |
Outstanding at December 31, 2013 |  |  | 668,056 |  |  |  |  |  |  |  |  |
Awarded |  |  | 265,630 |  |  |  | 11.35 |  |  |  |  |
Released |  |  | (317,970 | ) |  |  |  |  |  |  | 3,491 |
Forfeited |  |  | (50,825 | ) |  |  |  |  |  |  |  |
Outstanding at December 31, 2014 |  |  | 564,891 |  |  |  |  |  |  |  |  |
Information regarding RSU’s at December 31, 2014, 2013, and 2012 is summarized below:
|  | Number of Shares |  |  | Weighted Average Remaining Contractual Life (years) |  |  | Aggregate Intrinsic Value (In millions) |  |  | Fair Value (In millions) |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RSUs outstanding |  |  | 708,651 |  |  |  | 1.09 |  |  | $ | 4.9 |  |  | $ | 4.9 |
RSUs vested and expected to vest using estimated forfeiture rates |  |  | 588,170 |  |  |  | 1.05 |  |  | $ | 4.0 |  |  |  |  |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RSUs outstanding |  |  | 668,056 |  |  |  | 0.91 |  |  | $ | 6.9 |  |  | $ | 6.9 |
RSUs vested and expected to vest using estimated forfeiture rates |  |  | 583,711 |  |  |  | 0.89 |  |  | $ | 6.1 |  |  |  |  |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RSUs outstanding |  |  | 564,891 |  |  |  | 0.84 |  |  | $ | 5.3 |  |  | $ | 5.3 |
RSUs vested and expected to vest using estimated forfeiture rates |  |  | 502,411 |  |  |  | 0.80 |  |  | $ | 4.8 |  |  |  |  |
The aggregate intrinsic value is calculated as the market value as of the end of the reporting period. Summary of Restricted Stock Awards Restricted stock award activity for the years ended December 31, 2014, 2013, and 2012 was as follows:
|  | Number of Shares |  |  | Weighted Average Grant Date Fair Value |  |  | Total Fair Value of Awards Released (In thousands) |
Outstanding at January 1, 2012 |  |  | 18,000 |  |  | $ | 6.61 |  |  |  |  |
Awarded |  |  | 57,750 |  |  |  | 5.70 |  |  |  |  |
Released |  |  | (31,750 | ) |  |  | 6.72 |  |  | $ | 171 |
Forfeited |  |  | 0 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2012 |  |  | 44,000 |  |  |  | 5.34 |  |  |  |  |
Awarded |  |  | 44,000 |  |  |  | 14.09 |  |  |  |  |
Released |  |  | (44,000 | ) |  |  | 5.34 |  |  |  | 676 |
Forfeited |  |  | 0 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2013 |  |  | 44,000 |  |  |  | 14.09 |  |  |  |  |
Awarded |  |  | 35,364 |  |  |  | 10.97 |  |  |  |  |
Released |  |  | (44,000 | ) |  |  | 14.09 |  |  |  | 483 |
Forfeited |  |  | 0 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2014 |  |  | 35,364 |  |  |  | 10.97 |  |  |  |  |
Stock-based Compensation Valuation and amortization methods — The Company uses the Black-Scholes-Merton option pricing model (“Black-Scholes model”), single-option approach to determine the fair value of standard stock options and ESPP shares. All share-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates if necessary, in subsequent periods if actual forfeitures differ from these estimates. The determination of the fair value of share-based payment awards on the date of grant using an option pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include actual and projected employee stock option exercise behaviors that impact the expected term, the Company’s expected stock price volatility over the term of the awards, risk-free interest rate, and expected dividends. Expected term — The Company estimates the expected term of options granted by calculating the average term from the Company’s historical stock option exercise experience. The expected term of ESPP shares is the length of the offering period. The Company used the simplified method approved by the SEC to determine the expected term for options granted prior to December 31, 2007. Expected volatility — The Company estimates the volatility of its common stock taking into consideration its historical stock price movement and its expected future stock price trends based on known or anticipated events. Risk-free interest rate — The Company bases the risk-free interest rate that it uses in the option pricing model on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. Expected dividend — The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option-pricing model. Forfeitures — The Company is required to estimate future forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. The Company uses the Monte-Carlo Simulation model to value the stock options with a market condition. Valuation techniques such as a Monte-Carlo Simulation model have been developed to value path-dependent awards. The Monte-Carlo Simulation model is a generally accepted statistical technique used, in this instance, to simulate a range of future stock prices for the Company. The assumptions used to value option grants under the Company’s stock plans are as follows:
|  | Standard Stock Options |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Expected life (in years) |  |  | 4.7 |  |  |  | 4.9 |  |  |  | 4.5 |
Interest rate |  |  | 1.4 | % |  |  | 0.8 | % |  |  | 0.7 | %
Volatility |  |  | 57 | % |  |  | 70 | % |  |  | 70 | %
Dividend yield |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | %
|  | Market Condition Based Stock Options |
|  | 2014 |
Expected life (in years) |  |  | 7.0 |
Interest rate |  |  | 2.2 | %
Volatility |  |  | 66 | %
Dividend yield |  |  | 0.0 | %
|  | Employee Stock Purchase Plan |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Expected life (in years) |  |  | 0.5 |  |  |  | 0.5 |  |  |  | 0.5 |
Interest rate |  |  | 0.1 | % |  |  | 0.1 | % |  |  | 0.1 | %
Volatility |  |  | 43 | % |  |  | 67 | % |  |  | 62 | %
Dividend yield |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | %
Total stock-based compensation recognized in the consolidated statements of operations is as follows:
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Income Statement Classifications |  | (In thousands) |
Sales and marketing |  | $ | 1,117 |  |  | $ | 747 |  |  | $ | 547 |
Research and development |  |  | 1,267 |  |  |  | 1,040 |  |  |  | 756 |
General and administrative |  |  | 2,911 |  |  |  | 2,857 |  |  |  | 1,843 |
Total |  | $ | 5,295 |  |  | $ | 4,644 |  |  | $ | 3,146 |
As of December 31, 2014, there was $7.4 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options, restricted stock awards and RSU’s granted to the Company’s employees and directors. This cost will be recognized over an estimated weighted-average period of approximately 2.95 years for standard options, 3.17 years for market condition based options, 0.43 years for restricted stock awards and 1.41 years for RSU’s. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration