v2.3.0.11
Stockholders' Equity
 6 Months Ended
Jun. 30, 2011
Stockholders' Equity [Abstract]  
Stockholders' Equity
9. Stockholders’ Equity
1999 Stock Option Plan and 2007 Equity Incentive Plan
     Prior to the effective date of the registration statement for the Company’s initial public offering (“IPO”) on June 26, 2007, eligible employees and non-employees were awarded options to purchase shares of the Company’s common stock, restricted stock or restricted stock units pursuant to the Company’s 1999 Stock Plan (the “1999 Plan”). Upon the effective date of the registration statement of the Company’s IPO, the Company ceased using the 1999 Plan for the issuance of new equity awards. Upon the closing of the Company’s IPO on July 2, 2007, the Company established its 2007 Equity Incentive Plan (the “2007 Plan” and together with the 1999 Plan, the “Plans”). The 1999 Plan will continue to govern the terms and conditions of outstanding awards granted thereunder, but no further shares are authorized for new awards under the 1999 Plan. As of June 30, 2011 and December 31, 2010, the Plans provided for the issuance of a maximum of approximately 7.2 million shares and 5.9 million shares, respectively, of common stock. In addition, the 2007 Plan provides for annual increases in the number of shares available for issuance thereunder on the first day of each fiscal year beginning with the 2008 fiscal year, equal to the lesser of: (i) 4% of the outstanding shares of the Company’s common stock on the last day of the immediately preceding fiscal year; (ii) 1,800,000 shares; or (iii) such other amount as the Company’s board of directors may determine. The vesting period of options granted under the Plans is determined by the Board of Directors, although the vesting has historically been generally ratable over a four-year period. Options generally expire 10 years from the date of the grant. Effective January 1, 2011, the shares available for grant increased 1,260,942 pursuant to the automatic share reserve increase provision under the Plan. Accordingly, as of June 30, 2011, 2,122,909 shares were available for future grant under the Plans.
     The Company estimates the fair value of stock option awards using the Black-Scholes option-pricing formula and a single option award approach. The Company then amortizes the fair value of awards expected to vest on a ratable straight-line basis over the requisite service periods of the awards, which is generally the period from the grant date to the end of the vesting period. During the three and six months ended June 30, 2011, no stock options were granted.
     On March 15, 2011, the Compensation Committee (the “Compensation Committee”) of the Company’s Board of Directors approved the 2011 Executive Compensation Bonus Policy (the “Policy”) authorizing annual performance-based stock bonus target and maximum levels for certain employees of the Company, including certain members of the Company’s senior management, for the 2011 fiscal year. Awards under the Policy will be settled in shares of the Company’s common stock. The amount of the award for each participant will be determined in the first quarter of 2012 based on a combination of qualitative and quantitative performance metrics applicable to each participant. Bonus awards will include two components: short-term and long-term. The award associated with the short-term performance bonus is expected to vest immediately on the grant date. With respect to the long-term performance bonus award, 25% of the award is expected to vest immediately on the grant date, with the remaining 75% vesting ratably over the next 3 years. Also on March 15, 2011, the Committee approved the payment of stock to certain members of the Company’s senior management in lieu of cash salary for the period from March 1, 2011 through December 31, 2011. The stock, to the extent earned, would be issued as soon as practicable following the end of the Company’s 2011 fiscal year and will fully vest at the time issued. The amount of stock to be issued will have a value at time of issuance equal to the amount of salary foregone by such employees from March 1, 2011 through December 31, 2011, based on the closing price of Company’s common stock as reported on the NASDAQ Global Market at the time of issuance. The amount of salary foregone by such employees for such period is expected to be approximately $0.8 million. Stock compensation expense for the three and six months ended June 30, 2011 included $0.7 million and $0.2 million, respectively, related to these estimated awards.
A summary of the Company’s equity Plans is presented below:
                                 
                    Weighted        
                    Average        
            Weighted-     Remaining     Aggregate  
            Average     Contractual     Intrinsic  
    Number of     Exercise     Term     Value  
    Shares     Price     (in years)     (in thousands)  
Options outstanding at December 31, 2010
    1,713,165     $ 11.68                  
 
                               
Options granted
    —       —                  
Options exercised
    (81,141 )     3.34             $ 1,927  
Options forfeited
    (82 )     9.29                  
Options expired
    (562 )     9.90                  
 
                             
 
                               
Options outstanding at June 30, 2011
    1,631,380     $ 12.10       3.52     $ 22,335  
 
                             
 
                               
Options exercisable at June 30, 2011
    588,335     $ 1.27       2.93     $ 14,314  
 
                             
     The intrinsic value of exercised stock options is calculated based on the difference between the exercise price and the quoted market price of the Company’s common stock as of the close of the exercise date. The aggregate intrinsic value for options outstanding and exercisable is calculated as the difference between the exercise price of the underlying stock option awards and the quoted market price of the Company’s common stock at June 30, 2011. As of June 30, 2011, total unrecognized compensation expense related to non-vested stock options granted prior to that date is estimated at $1.2 million, which the Company expects to recognize over a weighted-average period of approximately 0.66 years. Total unrecognized compensation expense is estimated and may be increased or decreased in future periods for subsequent grants or forfeitures.
     The Company’s nonvested stock awards are comprised of restricted stock and restricted stock units. The Company has a right of repurchase on such shares that lapse at a rate of twenty-five percent (25%) of the total shares awarded at each successive anniversary of the initial award date, provided that the employee continues to provide services to the Company. In the event that an employee terminates their employment with the Company, any shares that remain unvested and consequently subject to the right of repurchase shall be automatically reacquired by the Company at the original purchase price paid by the employee. During the three months ended June 30, 2011, 47,015 forfeited shares of restricted stock have been repurchased by the Company at no cost.
     A summary of the status for nonvested stock awards as of June 30, 2011 is presented as follows:
                                 
                            Weighted  
                    Number     Average  
            Restricted     of Shares     Grant-Date  
    Restricted     Stock     Underlying     Fair  
Nonvested Stock Awards   Stock     Units     Awards     Value  
Nonvested at December 31, 2010
    1,591,522       405,071       1,996,593     $ 15.43  
Granted
    456,779       241,983       698,762       28.12  
Vested
    (555,047 )     (56,700 )     (611,747 )     15.30  
Forfeited
    (59,329 )     (10,240 )     (69,569 )     17.30  
 
                       
 
                               
Nonvested at March 31, 2011
    1,433,925       580,114       2,014,039     $ 19.80  
 
                       
The aggregate intrinsic value for all non-vested shares of restricted common stock outstanding as of June 30, 2011 was $37.1 million.
     The Company granted nonvested stock awards at no cost to recipients during the three months ended June 30, 2011. As of June 30, 2011, total unrecognized compensation expense related to non-vested restricted stock and restricted stock units was $26.8 million, which the Company expects to recognize over a weighted-average period of approximately 1.25 years. Total unrecognized compensation expense may be increased or decreased in future periods for subsequent grants or forfeitures.
     Of the 74,722 shares of the Company’s restricted stock and restricted stock units vesting during the three months ended June 30, 2011, the Company repurchased 25,195 shares at an aggregate purchase price of approximately $0.7 million pursuant to the stockholder’s right under the Plans to elect to use common stock to satisfy tax withholding obligations.
Shares Reserved for Issuance
     At June 30, 2011, the Company had reserved for future issuance the following shares of common stock upon the exercise of options and warrants:
         
Common stock available for future issuances under the Plans
    2,122,909  
Common stock reserved for outstanding options and restricted stock units
    2,211,494  
Common stock reserved for outstanding warrants
    24,375  
 
     
 
       
 
    4,358,778