Quarterly report pursuant to Section 13 or 15(d)

STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION

v3.5.0.2
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION
 6 Months Ended
Sep. 30, 2016
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, 2016
 
September 30, 2015
 
September 30, 2016
 
September 30, 2015
Share-based compensation:
 
 
 
 
 
 
 
Cost of revenue
$
234

 
$
331

 
$
514

 
$
693

Research and development
333

 
492

 
736

 
1,041

Sales and marketing
606

 
839

 
1,218

 
1,709

General and administrative
477

 
785

 
1,180

 
1,657

 
$
1,650

 
$
2,447

 
$
3,648

 
$
5,100

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

 
$
—

 
$
—

 
$
2

Restricted stock units
1,511

 
2,167

 
3,347

 
4,597

Stock purchase plan
139

 
280

 
301

 
501

 
$
1,650

 
$
2,447

 
$
3,648

 
$
5,100


Stock Incentive Plans - Grants and Fair Value
Stock Options
No stock options were granted during the second quarter or first six months of fiscal 2017 or fiscal 2016.
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 fiscal 2017 were $0.42 and $0.43, respectively. The weighted-average grant date fair values of RSUs granted during the second quarter and first six months of fiscal 2016 were $1.63 and $1.64 per share, respectively.

During the second quarter of fiscal 2017, we granted 3.3 million RSUs with performance conditions (“2017 performance RSUs”), and the total fair value of 2017 performance RSUs at the grant date was $1.4 million. These RSUs will become eligible for vesting based on Quantum achieving a certain revenue target through the end of fiscal 2017. Share-based compensation expense for 2017 performance RSUs is recognized when it is probable that the performance conditions will be achieved. As of September 30, 2016, $0.2 million of 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 2017 and fiscal 2016, 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, 2016 and September 30, 2015 were as follows:
 
Three and Six Months Ended
 
September 30, 2016
 
September 30, 2015
Option life (in years)
0.5

 
0.5

Risk-free interest rate
0.40
%
 
0.09
%
Stock price volatility
81.88
%
 
64.61
%
Weighted-average grant date fair value per share
$
0.23

 
$
0.38


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, 2016
4,131

 
$
1.52

 
 
 
 
Forfeited
(301
)
 
1.02

 
 
 
 
Expired
(2,355
)
 
0.99

 
 
 
 
Outstanding as of September 30, 2016
1,475

 
$
2.49

 
1.43
 
$
2,107

Vested and expected to vest at September 30, 2016
1,475

 
$
2.49

 
1.43
 
$
2,107

Exercisable as of September 30, 2016
1,475

 
$
2.49

 
1.43
 
$
2,107


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, 2016
11,109

 
$
1.39

Granted
8,042

 
0.43

Vested
(4,825
)
 
1.38

Forfeited
(767
)
 
1.44

Nonvested at September 30, 2016
13,559

 
$
0.82