Preferred Stock and Stockholders' Equity | Preferred Stock and Stockholders’ Equity Preferred Stock The Company has authorized 20,000,000 shares of undesignated preferred stock, $0.0001 par value per share. As of June 27, 2015 and December 27, 2014 , the Company had no shares of preferred stock issued or outstanding. Common Stock The Company has authorized 1,000,000,000 shares of common stock, $0.0001 par value per share. Each holder of common stock is entitled to one vote for each share of common stock held. Cumulative voting for the election of directors is not provided in the Company’s amended and restated certificate of incorporation. The Company’s common stock is not entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of common stock are entitled to receive dividends out of funds legally available if the Company's board of directors (the "Board"), in its discretion, determines to issue dividends and then only at the times and in the amounts that the Board may determine. As of June 27, 2015 and December 27, 2014 , the Company had 33,489,470 and 32,641,500 shares of common stock issued and outstanding, respectively. Treasury Stock As of June 27, 2015 and December 27, 2014 , the Company had 8,109,848 shares of treasury stock outstanding, with a carrying value of $12.5 million , or $1.53 per share, within stockholders’ equity on its condensed consolidated balance sheet. The treasury stock was purchased in fiscal 2010 pursuant to a purchase and redemption agreement. Equity Award Plans 2013 Equity Incentive Plan In May 2013, the Company adopted the 2013 Equity Incentive Plan (the “2013 Equity Plan”). All authorized but unissued shares of the Company’s 2012 Unit Option Plan (the "2012 Plan") were added to the 2013 Equity Plan’s authorized pool in June 2013. A maximum of 2,929,481 shares of common stock were initially authorized for future issuance, plus up to an additional 4,967,172 shares upon termination of awards under the 2012 Plan. In addition, the 2013 Equity Plan is subject to an annual increase on the first day of each of the Company’s fiscal years, by an amount equal to the least of (i) 1,464,740 shares, (ii) 5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year, or (iii) such other amount as determined by the Board. In the twelve months ended December 27, 2014, an additional 1,464,740 shares of common stock were authorized for future issuance under the 2013 Equity Plan and an additional 1,464,740 shares were authorized during the six months ended June 27, 2015 . Vested but unexercised options, under the 2013 Equity Plan, expire three months after termination of service with the Company. As of June 27, 2015 , outstanding awards under the 2013 Equity Plan and the 2012 Plan covered 3,206,027 shares and 1,351,190 shares of the Company's common stock, respectively. The 2013 Equity Plan permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance units and performance shares to employees, directors and consultants of the Company. Employee Stock Purchase Plan In conjunction with the completion of its initial public offering (the "IPO") in June 2013, the Company adopted the 2013 Employee Stock Purchase Plan (the “ESPP”). A maximum of 439,422 shares were initially authorized for future issuance. In addition, the ESPP is subject to an annual increase on the first day of each of the Company's fiscal years, by an amount equal to the least of (i) 439,422 shares, (ii) 1.5% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year, or (iii) such other amount as determined by the Board. In the twelve months ended December 27, 2014, an additional 439,422 shares of common stock were authorized for future issuance under the ESPP and an additional 439,422 shares were authorized during the six months ended June 27, 2015 . Eligible employees can purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to plan limitations. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock (i) at the date of commencement of the offering period or (ii) at the last day of the purchase period. The ESPP provides for a 24 -month offering period comprised of four purchase periods of approximately six months . The offering periods are scheduled to start on the first trading day on or after February 15 and August 15 of each year, except for the first offering period, which commenced on the first trading day upon the completion of the Company’s IPO, or June 12, 2013, and ends on August 17, 2015. The Company recorded stock-based compensation expense for its ESPP of $0.7 million and $1.4 million for the three and six months ended June 27, 2015 , respectively, and $1.1 million and $2.8 million for the three and six months ended June 28, 2014 , respectively. For the six months ended June 27, 2015 there was one purchase period that resulted in the issuance of 273,301 shares of common stock at a weighted average purchase price of $9.54 per share. Stock Option Stock options granted under the 2013 Equity Plan and formerly under the 2012 Plan (together, the “Option Plans”), are generally subject to a four -year vesting period whereby stock options become 25% vested on the first anniversary of the grant date and then ratably monthly thereafter through the end of the vesting period. Vested stock options may be exercised up to ten years from the vesting commencement date, with certain options granted in fiscal 2015 expiring seven years from the date of grant. Under the 2012 Plan, vested but unexercised stock options expire 30 days after termination of service with the Company. Under the 2013 Equity Plan, vested but unexercised stock options expire three months after termination of service with the Company. The following table summarizes the stock option activity under the Company’s Option Plans: Number of Weighted- Weighted- Aggregate (in thousands) Balance — December 27, 2014 2,386,412 $ 12.91 8.21 $ 14,403 Options granted 408,000 $ 21.44 Options exercised (340,889 ) $ 8.08 Options canceled (78,210 ) $ 10.08 Balance — June 27, 2015 2,375,313 $ 15.16 7.50 $ 44,291 Vested and expected to vest — June 27, 2015 2,212,151 $ 14.90 7.50 $ 41,846 Exercisable — June 27, 2015 985,259 $ 12.40 7.28 $ 21,104 Aggregate intrinsic value represents the difference between the exercise price of the awards and the Company’s fair value per share of $33.82 and $17.47 as of June 27, 2015 and December 27, 2014 , respectively, for the total number of underlying options. Weighted-average fair value per share for option awards vested in the six months ended June 27, 2015 and June 28, 2014 was $10.18 and $ 9.18 , respectively. As of June 27, 2015 and December 27, 2014, there were 31,766 and 36,495 shares of common stock subject to stock options with performance-based vesting criteria, respectively. Restricted Stock Unit Activity RSUs generally vest over a period of one to four years. RSU vesting dates are determined by the Company. The vesting is subject to the employee’s continuing service with the Company over that period. Until vested, RSUs do not have the voting or dividend participation rights of the Company’s common stock and the shares of the Company’s common stock underlying the awards are not considered issued and outstanding. The cost of RSUs is determined using the fair value of the Company’s common stock on the date of the grant. The following table summarizes the RSU activity under the Company’s Option Plans: Number of Weighted- Weighted- Aggregate (in thousands) Balance - December 27, 2014 1,733,225 $ 18.78 1.27 $ 30,279 RSUs granted 1,019,205 $ 22.73 RSUs vested (381,419 ) $ 19.09 RSUs canceled (187,552 ) $ 22.31 Balance - June 27, 2015 2,183,459 $ 20.27 1.40 $ 73,845 Vested and expected to vest — June 27, 2015 1,896,384 $ 20.09 1.28 $ 64,136 Aggregate intrinsic value for RSUs represents the Company’s fair market value per share of $33.82 and $17.47 , as of June 27, 2015 and December 27, 2014, respectively, for the total number of underlying RSUs. Stock-Based Compensation Expense The fair value of stock options and ESPP purchase rights is estimated on the date of grant using the Black-Scholes option-pricing model. The fair values of the option awards and ESPP purchase rights granted and the assumptions used in the Black-Scholes option pricing model are summarized as follows: Three Months Ended Six Months Ended June 27, June 28, June 27, June 28, Stock option awards: Expected term (in years) — 5.3-6.1 4.6 5.3-6.1 Risk-free interest rate — 1.7%-1.8% 1.6% 1.7%-1.9% Expected volatility — 59.4% 56.04% 59.4%-61.9% Expected dividend rate —% —% —% —% Grant date fair value per award — $9.20 - $9.86 $10.11 $9.20 - $17.67 ESPP purchase right: Expected term (in years) 0.50 - 2.0 0.50 - 2.0 0.50 - 2.0 0.50 - 2.0 Risk-free interest rate 0.07% - 0.70% 0.1% - 0.3% 0.07% - 0.70% 0.1% - 0.3% Expected volatility 37.6% - 50.3% 44.8% - 52.7% 37.6% - 50.3% 44.8% - 52.7% Expected dividend rate —% —% —% —% Grant date fair value per share $5.48 - $9.18 $8.23 - $13.06 $5.48 - $9.18 $8.23 - $13.06 The following table summarizes the stock-based compensation expense recorded in the Company’s condensed consolidated statement of operations (in thousands): Three Months Ended Six Months Ended June 27, June 28, June 27, June 28, Cost of revenue $ 510 $ 471 $ 1,059 $ 919 Research and development $ 2,609 2,054 4,705 4,653 Sales and marketing $ 2,812 2,424 5,260 5,198 General and administrative $ 2,655 1,090 4,905 3,127 Total stock-based compensation expense $ 8,586 $ 6,039 $ 15,929 $ 13,897 As of June 27, 2015 , unrecognized compensation expense related to stock options, RSUs and ESPP purchase rights, net of estimated forfeitures, was $5.6 million , $21.8 million and $1.7 million , respectively. |