Quarterly report pursuant to Section 13 or 15(d)

STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION

v3.6.0.2
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION
 9 Months Ended
Dec. 31, 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
 
Nine Months Ended
 
December 31, 2016
 
December 31, 2015
 
December 31, 2016
 
December 31, 2015
Share-based compensation:
 
 
 
 
 
 
 
Cost of revenue
$
183

 
$
313

 
$
697

 
$
1,006

Research and development
284

 
488

 
1,020

 
1,529

Sales and marketing
542

 
658

 
1,760

 
2,367

General and administrative
467

 
780

 
1,647

 
2,437

 
$
1,476

 
$
2,239

 
$
5,124

 
$
7,339

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

 
$
—

 
$
—

 
$
2

Restricted stock units
1,437

 
1,955

 
4,784

 
6,552

Stock purchase plan
39

 
284

 
340

 
785

 
$
1,476

 
$
2,239

 
$
5,124

 
$
7,339


Stock Incentive Plans - Grants and Fair Value
Stock Options
No stock options were granted during the third quarter or first nine 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 third quarter and first nine months of fiscal 2017 were $0.74 and $0.44, respectively. The weighted-average grant date fair values of RSUs granted during the third quarter and first nine months of fiscal 2016 were $0.82 and $1.64 per share, respectively.

During the first nine months of fiscal 2017, we granted 3.4 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 at a weighted average grant date fair value per share of $0.43. The 2017 performance 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 the 2017 performance RSUs is recognized when it is probable that the performance conditions will be achieved. During the third quarter and first nine months of fiscal 2017, $0.1 million and $0.3 million of share-based compensation expense was recognized for the 2017 performance RSUs.
Employee Stock Purchase Plan
Under the Employee Stock Purchase Plan (“ESPP”), 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 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 nine month periods ended December 31, 2016 and December 31, 2015 were as follows:
 
Nine Months Ended
 
December 31, 2016
 
December 31, 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
(303
)
 
1.03

 
 
 
 
Expired
(2,383
)
 
0.99

 
 
 
 
Outstanding as of December 31, 2016
1,445

 
$
2.50

 
1.20
 
$
2,107

Vested and expected to vest at December 31, 2016
1,445

 
$
2.50

 
1.20
 
$
2,107

Exercisable as of December 31, 2016
1,445

 
$
2.50

 
1.20
 
$
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
8,312

 
0.44

Vested
(4,850
)
 
1.38

Forfeited
(875
)
 
1.40

Nonvested at December 31, 2016
13,696

 
$
0.81