Stockholders' Equity | 9 Months Ended |
Sep. 30, 2013 |
Stock-Based Compensation | ' |
Stockholders' Equity [Text Block] | ' |
Stockholders’ Equity |
Equity Plans |
A summary of the Company’s activity under its equity award plans and related information is as follows (in thousands, except per share data): |
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| | | Options Outstanding |
| Shares Available for Grant | | Number of Shares | | Weighted-Average Exercise Price | | Weighted-Average Remaining Contractual Life in Years | | Aggregate Intrinsic Value |
Balance - December 31, 2012 | 3,023 | | | 5,710 | | | $ | 8.85 | | | | | |
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Shares authorized | 1,000 | | | — | | | — | | | | | |
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Options granted | (100 | ) | | 100 | | | 13.26 | | | | | |
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Options exercised | — | | | (1,060 | ) | | 3.92 | | | | | |
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Options forfeited | 416 | | | (416 | ) | | 11.13 | | | | | |
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Restricted stock units granted | (2,256 | ) | | — | | | — | | | | | |
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Restricted stock units forfeited | 350 | | | — | | | — | | | | | |
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Balance - September 30, 2013 | 2,433 | | | 4,334 | | | $ | 9.94 | | | 7.2 | | $ | 35,624 | |
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Vested and exercisable - September 30, 2013 | | | 2,065 | | | $ | 10.28 | | | 7 | | $ | 17,080 | |
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Vested and expected to vest - September 30, 2013 | | | 4,087 | | | $ | 9.95 | | | 7.2 | | $ | 33,674 | |
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The total intrinsic value for options exercised during the three months ended September 30, 2013 and 2012 was $2.6 million and $3.2 million, respectively, and $11.3 million and $21.9 million for options exercised during the nine months ended September 30, 2013 and 2012, respectively. |
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Restricted Stock Units |
The summary of restricted stock unit activity is as follows: |
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| Number of Shares | | Weighted-Average Grant Date Fair Value | | Aggregate Intrinsic Value | | | | | |
Non-vested units - December 31, 2012 | 471 | | | $ | 17.27 | | | | | | | | |
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Granted | 2,256 | | | 11.26 | | | | | | | | |
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Vested | (301 | ) | | 13.77 | | | | | | | | |
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Forfeited | (350 | ) | | 12.13 | | | | | | | | |
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Non-vested units - September 30, 2013 | 2,076 | | | 12.11 | | | $ | 36,423 | | | | | | |
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Stock-Based Compensation Related to Employees and Non-Employee Directors |
Stock-based compensation expense for employees and non-employee directors is based on the fair value of the award on the date of grant and is recognized on a straight-line basis over the requisite service period of the award. The Company estimates the fair value of stock options using the Black-Scholes option pricing model. Option valuation models, including the Black-Scholes option pricing model, require the input of various assumptions such as expected term, expected volatility and risk-free interest rates. Changes in the assumptions can materially affect the fair value and ultimately how much stock-based compensation expense is recognized. These inputs are subjective and generally require significant analysis and judgment to develop. For all stock options granted to date, the Company calculated the expected term using the SEC simplified method. The Company has limited information on its past volatility and has a limited operating history. Therefore, it has estimated volatility by evaluating the historical volatility of publicly traded industry peer companies. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size and financial leverage of potential comparable companies. The estimated forfeiture rate is derived from the Company’s historical data, and the risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the Company’s stock options. |
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There were no stock options granted to employees or non-employee directors during the three months ended September 30, 2013 or 2012. The weighted-average assumptions used to estimate the fair value of stock options granted to employees and non-employee directors during the nine months ended September 30, 2013 and 2012 and the resulting fair values are as follows: |
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| | Nine Months Ended September 30, | | | | | | | | | | | |
| | 2013 | | 2012 | | | | | | | | | | | |
Dividend yield | | —% | | —% | | | | | | | | | | | |
Risk-free rate | | 0.93% | | 1.11% | | | | | | | | | | | |
Expected volatility | | 61% | | 61% | | | | | | | | | | | |
Expected term (in years) | | 6.1 | | 6 | | | | | | | | | | | |
Grant date fair value | | $7.39 | | $9.02 | | | | | | | | | | | |
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The fair value of restricted stock units granted to employees and non-employee directors is measured by reference to the fair value of the underlying shares on the date of grant. |
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Stock-based compensation expense related to stock options granted to employees and non-employee directors was $1.8 million for both the three months ended September 30, 2013 and 2012, and $6.7 million and $5.7 million for the nine months ended September 30, 2013 and 2012, respectively. Stock-based compensation expense related to restricted stock units granted to employees and non-employee directors was $2.1 million and $0.6 million for the three months ended September 30, 2013 and 2012, respectively, and $5.1 million and $1.5 million for the nine months ended September 30, 2013 and 2012, respectively. |
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As of September 30, 2013, there was $12.4 million and $23.3 million of unrecognized compensation cost related to stock options and restricted stock units, respectively, which was expected to be recognized over a weighted-average period of 2.2 years and 3.1 years, respectively. |
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Stock-Based Compensation Related to Non-Employees |
The Company periodically grants equity awards to non-employees in exchange for goods and services. No awards were granted to non-employees in exchange for goods and services during the three or nine months ended September 30, 2013 and 2012, respectively. |
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Stock-based compensation expense for non-employees is based on the fair value of the award on the measurement date, which is the earlier of the date by which the commitment for performance by the non-employee to earn the award is reached and the date on which the non-employee’s performance is complete. Each reporting period, the fair value of the unvested non-employee options or restricted stock units is revalued until the awards vest on the measurement date. |
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Non-employee stock-based compensation expense related to stock options was $0.1 million for both the three months ended September 30, 2013 and 2012, and $0.2 million and $0.3 million for the nine months ended September 30, 2013 and 2012, respectively. Non-employee stock-based compensation expense related to restricted stock units was nil and $0.1 million for the three months ended September 30, 2013 and 2012, respectively, and $0.2 million and $0.3 million for the nine months ended September 30, 2013 and 2012, respectively. |