Quarterly report pursuant to Section 13 or 15(d)

STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION

v3.3.0.814
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION
 6 Months Ended
Sep. 30, 2015
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
 
Six Months Ended
 
September 30, 2015
 
September 30, 2014
 
September 30, 2015
 
September 30, 2014
Share-based compensation:
 
 
 
 
 
 
 
Cost of revenue
$
331

 
$
333

 
$
693

 
$
747

Research and development
492

 
603

 
1,041

 
1,383

Sales and marketing
839

 
887

 
1,709

 
1,797

General and administrative
785

 
846

 
1,657

 
1,810

 
$
2,447

 
$
2,669

 
$
5,100

 
$
5,737

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

 
$
154

 
$
2

 
$
311

Restricted stock
2,167

 
2,315

 
4,597

 
5,013

Stock purchase plan
280

 
200

 
501

 
413

 
$
2,447

 
$
2,669

 
$
5,100

 
$
5,737


Stock Incentive Plans - Grants and Fair Value
Stock Options
No stock options were granted during the second quarter or first six months of fiscal 2016 or 2015. The Black-Scholes option pricing model is used to estimate the fair value of stock options.
Restricted Stock Units
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 second quarter and first six months of 2016 were $1.63 and $1.64 per share, respectively. The weighted-average grant date fair value of RSUs granted during the second quarter and first six months of fiscal 2015 was $1.25 per share.

During the second quarter of fiscal 2015, we granted 2.4 million RSUs with performance conditions (“2015 performance RSUs”), and the total fair value of 2015 performance RSUs at the grant date was $3.0 million. These RSUs became eligible for vesting based on Quantum achieving certain revenue and operating income targets through the end of fiscal 2015. During the second quarter and first six months of fiscal 2016, shared-based compensation expense of $0.1 million and $0.2 million, respectively, was recognized for 2015 performance RSUs. During the second quarter and first six months of fiscal 2015, share-based compensation expense for these RSUs was immaterial.

During the second quarter of fiscal 2016, we granted 1.5 million RSUs with performance conditions (“2016 performance RSUs”), and the total fair value of 2016 performance RSUs at the grant date was $2.6 million. These RSUs will become eligible for vesting based on Quantum achieving certain revenue and operating income targets through the end of fiscal 2016. Share-based compensation expense for 2016 performance RSUs is recognized when it is probable that the performance conditions will be achieved. As of September 30, 2015, no share-based compensation expense was recognized for these 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 second quarter and first six months of fiscal 2016 and fiscal 2015, respectively, was estimated at the date of 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 three and six month periods ended September 30, 2015 and 2014 were as follows:
 
 
 
 
 
Three and Six Months Ended
 
September 30, 2015
 
September 30, 2014
Option life (in years)
0.5

 
0.5

Risk-free interest rate
0.09
%
 
0.06
%
Stock price volatility
64.61
%
 
32.19
%
Weighted-average grant date fair value per share
$
0.38

 
$
0.30


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, 2015
4,944

 
$
1.47

 
 
 
 
Exercised
(252
)
 
1.05

 
 
 
 
Forfeited
(5
)
 
0.58

 
 
 
 
Expired
(176
)
 
1.80

 
 
 
 
Outstanding as of September 30, 2015
4,511

 
$
1.48

 
1.30
 
$
10

Vested and expected to vest at September 30, 2015
4,511

 
$
1.48

 
1.30
 
$
10

Exercisable as of September 30, 2015
4,511

 
$
1.48

 
1.30
 
$
10



Restricted Stock Units
A summary of activity relating to our restricted stock units follows (shares in thousands):
 
Shares
 
Weighted-Average
Grant Date
Fair Value Per Share
Nonvested at March 31, 2015
13,791

 
$
1.34

Granted
6,542

 
1.64

Vested
(5,814
)
 
1.46

Forfeited
(424
)
 
1.39

Nonvested at September 30, 2015
14,095

 
$
1.43