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Employee Benefit Plans and Stock-based Compensation (Tables)
12 Months Ended
Dec. 31, 2012
Employee Benefit Plans and Stock-based Compensation [Abstract]  
Summary of stock option activity
The following summarizes our stock option activity under the 2007 Plan, and the related weighted average exercise price within each category for each of the years ended December 31, 2010, 2011, and 2012 (in thousands, except per share data):
 
Stock Options
Number of
Options
Outstanding
 
Weighted-
average
Exercise
Price
 
Weighted-
average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
 
(in years)
Balance as of January 1, 2010
2,880
2.46
5.70
$  3,850
Granted
399
5.93
Exercised
(876)
1.71
Canceled and expired
(123)
 
7.26
Balance as of December 31, 2010
2,280
3.10
6.40
$17,030
Granted
367
4.79
Exercised
(251)
2.54
Canceled and expired
(16)
 
27.98
Balance as of December 31, 2011
2,380
3.25
6.25
$  3,456
Granted
592
3.32
Exercised
(136)
2.17
Canceled and expired
(109)
 
4.25
Balance as of December 31, 2012
2,727
 
$3.28
6.71
$  1,353
Options vested and expected to vest as of December 31, 2012
2,717
$3.28
6.70
$  1,352
Options exercisable as of December 31, 2012
1,595
$2.88
5.16
$  1,235
Options outstanding and exercisable
The options outstanding and exercisable as of December 31, 2012 were in the following exercise price ranges (in thousands, except per share data):
 
Options Outstanding as of
December 31, 2012
Options Vested and
Exercisable as of
December 31, 2012
Range of
Exercise Price
Shares
Weighted-average
Exercise Price
Weighted-average
Remaining
Contractual Life
Shares
Weighted-Average
Exercise Price
$1.18 - $1.38
403
$1.31
1.49
403
$1.31
$1.40 - $1.40
1
$1.40
2.20
1
$1.40
$1.59 - $1.59
328
$1.59
6.29
294
$1.59
$1.88 - $1.91
8
$1.90
1.74
8
$1.90
$2.04 - $2.04
442
$2.04
6.82
343
$2.04
$2.91 - $2.91
488
$2.91
9.85
0
$0.00
$3.11 - $4.09
91
$3.37
3.48
67
$3.17
$4.79 - $4.79
366
$4.79
8.82
107
$4.79
$4.81 - $5.61
145
$5.26
6.85
65
$4.84
$5.83 - $7.82
455
 
$6.00
7.16
307
 
$6.01
2,727
 
$3.28
6.71
1,595
 
$2.88
Restricted stock awards
A summary of activity related to restricted stock awards for the years ended December 31, 2010, 2011 and 2012 is presented below:
 
Stock Awards
Shares
 
Weighted-Average
Grant Date
Fair Value
 
Non-vested as of January 1, 2010
170,660
$ 1.21
Granted                                                                                       
121,237
5.29
Vested                                                                                       
(69,092)
1.48
Forfeited                                                                                       
(4,400)
 
5.83
Non-vested as of December 31, 2010
218,405
3.30
Granted                                                                                       
97,986
5.21
Vested                                                                                       
(93,264)
 
2.51
Non-vested as of December 31, 2011
223,127
4.47
Granted                                                                                       
113,768
3.18
Vested                                                                                       
(98,172)
 
3.42
Non-vested as of December 31, 2012
238,723
 
$ 4.27
Compensation costs related to stock-based awards
We recorded $1.2 million, $896,000 and $655,000 of stock-based compensation in our consolidated statements of operations for the years ended December 31, 2012, 2011 and 2010, respectively. The following table summarizes compensation costs related to our stock-based compensation awards (in thousands, except per share data):
 
Years Ended December 31,
 
2012
 
2011
 
2010
 
Stock-based compensation in the form of employee stock options and restricted stock, included in:
Cost of revenue
$       78
$       84
$        36
Selling, general and administrative
1,000
766
562
Research and development
137
 
46
 
57
 
Total stock-based compensation
1,215
896
655
Tax effect on stock-based compensation
 
 
 
Net effect on net income
$  1,215
 
$     896
 
$655
 
Shares used in computing basic net income per share
32,144
 
31,872
 
31,008
 
Shares used in computing diluted net income per share
32,865
 
33,061
 
32,512
 
Effect on basic net income per share
$ (0.04)
$ (0.03)
$  (0.02)
Effect on diluted net income per share
$ (0.04)
$ (0.03)
$  (0.02)
Weighted-average assumptions
We estimate the fair value of stock options using a Black-Scholes valuation model. There were 592,000, 367,000 and 399,000 stock options granted with weighted-average grant date fair value of $1.79, $2.65 and $3.11 per share during 2012, 2011 and 2010, respectively. The fair value of options granted was estimated at the date of grant using the following weighted-average assumptions:
 
Years Ended
December 31,
 
2012
 
2011
 
2010
 
Expected term (in years)
4.0
4.0
4.0
Volatility
72.87%
69.84%
69.0%
Expected dividend
0%
0%
0%
Risk-free interest rate
0.57%
1.00%
2.04%