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Stock Based Compensation (Tables)
6 Months Ended
Jun. 29, 2013
Activity in Stock Option Plan

The following table summarizes information regarding activity in our stock option plan during the six months ended June 29, 2013:

 

 

 

Number of Shares

 

  

Weighted

Average

Exercise Price

Per Share

 

  

Aggregate Intrinsic Value (thousands)

 

Outstanding at December 29, 2012             

 

  1,570,543

  

  

$

  3.64

  

  

 

 

 

Granted             

 

  48,200

 

  

$

  4.74

  

  

 

 

 

Exercised             

 

(292,016

)

  

$

  2.79

  

  

 

 

 

Canceled or forfeited             

 

(83,868

)

  

$

  4.41

  

  

 

 

 

Outstanding at June 29, 2013             

 

  1,242,859

 

  

$

  3.83

  

  

$

  2,736

  

 

Weighted Average Assumptions for Fair Value Estimate of Stock-Based Awards (Options)

The Company uses the Black-Scholes option-pricing model to estimate fair value of stock-based awards (options) with the following weighted average assumptions:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 29,

2013

 

 

June 30,

2012

 

 

June 29,

2013

 

 

June 30,

2012

 

Average risk free interest rate             

 

  1.31

%

 

 

  0.68

%

 

 

  0.83

%

 

 

  0.70

%

Expected life (in years)             

 

4.50 years

 

 

 

4.55 years

  

 

 

4.50 years

 

 

 

4.55 years

  

Dividend yield             

 

  0

%

 

 

  0

%

 

 

  0

%

 

 

  0

%

Average volatility             

 

  79

%

 

 

  91

%

 

 

  84

%

 

 

  91

%

 

Stock-Based Compensation Expense

The following table shows stock-based compensation expense included in the condensed consolidated statements of operations for the three months and six months ended June 29, 2013 and June 30, 2012:

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands) 

June 29,

2013

 

 

June 30,

2012

 

 

June 29,

2013

 

 

June 30,

2012

 

Cost of revenues             

$

  29

 

 

$

  16

 

 

$

  51

 

 

$

  34

  

Research and development             

 

  16

 

 

 

  20

 

 

 

  36

 

 

 

  39

  

Sales and marketing             

 

  28

 

 

 

  26

 

 

 

  50

 

 

 

  55

  

General and administrative             

 

  100

 

 

 

  88

 

 

 

  197

 

 

 

  169

  

 

$

  173

 

 

$

  150

 

 

$

  334

 

 

$

  297

  

 

Stock Options Outstanding, Exercisable and Expected to Vest

Information regarding stock options outstanding, exercisable and expected to vest at June 29, 2013 is summarized below:

 

 

Number of

Shares

 

 

Weighted Average

Exercise Price

 

 

Weighted Average

Remaining Contractual

Life (Years)

 

 

Aggregate

Intrinsic Value

(thousands)

 

Options outstanding             

 

  1,242,859

 

  

$

  3.83

 

 

 

  3.44

 

 

$

  2,736

  

Options vested and expected to vest             

 

  1,183,162

 

  

$

  3.83

 

 

 

  3.31

 

 

$

  2,619

  

Options exercisable             

 

  870,170

 

  

$

  3.79

 

 

 

  2.33

 

 

$

  1,999

  

 

Restricted Stock Units Activity

Information regarding the restricted stock units activity for the six months ended June 29, 2013 is summarized below:

 

 

Number
of Shares

 

Outstanding at December 29, 2012             

 

  55,999

  

Restricted stock units granted             

 

  220,000

  

Restricted stock units released             

 

(1,250

)  

Restricted stock units forfeited             

 

  0

  

Outstanding at June 29, 2013             

 

  274,749