Quarterly report pursuant to Section 13 or 15(d)

STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION

v2.4.1.9
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION
 9 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION
Share-Based Compensation
The following table summarizes share-based compensation (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
December 31, 2014
 
December 31, 2013
 
December 31, 2014
 
December 31, 2013
Share-based compensation:
 
 
 
 
 
 
 
Cost of revenue
$
362

 
$
509

 
$
1,109

 
$
1,560

Research and development
600

 
862

 
1,983

 
2,638

Sales and marketing
830

 
994

 
2,627

 
3,148

General and administrative
1,126

 
1,056

 
2,936

 
2,922

 
$
2,918

 
$
3,421

 
$
8,655

 
$
10,268

Share-based compensation by type of award:
 
 
 
 
 
 
 
Stock options
$
153

 
$
207

 
$
464

 
$
647

Restricted stock
2,584

 
2,923

 
7,597

 
8,629

Stock purchase plan
181

 
291

 
594

 
992

 
$
2,918

 
$
3,421

 
$
8,655

 
$
10,268


Stock Incentive Plans - Grants and Fair Value
Stock Options
No stock options were granted during the third quarter or first nine months of fiscal 2015 or 2014. The Black-Scholes option pricing model is used to estimate the fair value of stock options.
Restricted Stock
The fair value of restricted stock units (“RSUs”) granted is the intrinsic value as of the respective grant date since the RSUs are granted at no cost to the employee. The weighted-average grant date fair values of RSUs granted during the third quarter and first nine months of fiscal 2015 were $1.13 and $1.24, respectively. The weighted-average grant date fair values of RSUs granted during the third quarter and first nine months of fiscal 2014 were $1.25 and $1.40, respectively.

During the second quarter of fiscal 2015, we granted 2.4 million RSUs with performance conditions (“performance RSUs”), and the total fair value of these RSUs at the grant date was $3.0 million. Performance RSUs will become eligible for vesting based on Quantum achieving certain revenue and operating income targets through the end of fiscal 2015. Share-based compensation expense for performance RSUs is recognized when it is probable that the performance conditions will be achieved. As of December 31, 2014, we have recorded $0.2 million of share-based compensation expense for the performance RSUs.
Stock Purchase Plan
Under the Stock Purchase Plan, rights to purchase shares are typically granted during the second and fourth quarter of each fiscal year. The value of rights to purchase shares granted in the first nine months of fiscal 2015 and fiscal 2014, respectively, was estimated at the date of the grant using the Black-Scholes option pricing model. The weighted-average grant date fair values and the assumptions used in calculating fair values for the nine month periods ended December 31, 2014 and 2013 were as follows:
 
Nine Months Ended
 
December 31, 2014
 
December 31, 2013
Option life (in years)
0.5

 
0.5

Risk-free interest rate
0.06
%
 
0.07
%
Stock price volatility
32.19
%
 
47.65
%
Weighted-average grant date fair value
$
0.30

 
$
0.47


Stock Incentive Plans - Activity
Stock Options
A summary of activity relating to our stock options follows (options and aggregate intrinsic value in thousands):
Options
 
Weighted-
Average
Exercise Price
 
Weighted-
Average
Remaining
Contractual Term
 
Aggregate
Intrinsic Value
Outstanding as of March 31, 2014
7,997

 
$
1.78

 
 
 
 
Exercised
(684
)
 
0.97

 
 
 
 
Forfeited
(109
)
 
2.19

 
 
 
 
Expired
(2,018
)
 
2.84

 
 
 
 
Outstanding as of December 31, 2014
5,186

 
$
1.46

 
1.92
 
$
2,709

Vested and expected to vest at December 31, 2014
5,185

 
$
1.46

 
1.92
 
$
2,709

Exercisable as of December 31, 2014
5,078

 
$
1.44

 
1.89
 
$
2,709



Restricted Stock
A summary of activity relating to our restricted stock follows (shares in thousands):
 
Shares
 
Weighted-Average
Grant Date
Fair Value
Nonvested at March 31, 2014
12,108

 
$
1.80

Granted
10,282

 
1.24

Vested
(5,540
)
 
2.17

Forfeited
(767
)
 
1.53

Nonvested at December 31, 2014
16,083

 
$
1.33