Quarterly report pursuant to Section 13 or 15(d)

STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION

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STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION
 3 Months Ended
Jun. 30, 2012
Disclosure Of Compensation Related Costs Sharebased Payments Abstract  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 8: STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION

Overview

Our stock incentive plans (“Plans”) are broad-based, long-term retention programs that are intended to attract and retain talented employees and align stockholder and employee interests. The Plans provide for the issuance of stock options, stock appreciation rights, stock purchase rights and long-term performance awards to our employees, officers and affiliates. We also have an employee stock purchase plan (“Purchase Plan”) that allows for the purchase of stock at 85% of fair market value at the date of grant or the exercise date, whichever value is less.

The Black-Scholes option pricing model is used to estimate the fair value of options granted under our Plans and rights to acquire stock granted under our Purchase Plan.

Share-Based Compensation

The following table summarizes share-based compensation (in thousands):

Three Months Ended
June 30, 2012 June 30, 2011
Share-based compensation:      
       Cost of revenue $     571 $     455
       Research and development 900   640
       Sales and marketing 1,084 719
       General and administrative 1,732 1,203
  $ 4,287 $ 3,017
Share-based compensation by type of award:
       Stock options $ 959 $ 953
       Restricted stock 2,753 1,697
       Stock purchase plan 575 367
$ 4,287 $ 3,017
 

Stock Options

No options were granted during the first quarter of fiscal 2013. The weighted-average grant date fair values of employee stock option grants, as well as the weighted-average assumptions used in calculating these values for the first quarter of fiscal 2012 were based on estimates at the date of grant as follows:

Three Months Ended
June 30, 2012       June 30, 2011
Option life (in years) N/A 4.0
Risk-free interest rate N/A 1.57%
Stock price volatility N/A   112.33%
Weighted-average grant date fair value N/A $     1.91
 

Restricted Stock

The fair value of the restricted stock units granted is the intrinsic value as of the respective grant date since the restricted stock units are granted at no cost to the employee. The weighted-average grant date fair values of restricted stock units granted during the first quarter of fiscal 2013 and 2012 were $2.20 and $2.79, respectively.

Stock Purchase Plan

Under the Purchase Plan, rights to purchase shares are typically granted during the second and fourth quarter of each fiscal year. No rights to purchase shares were granted during the first quarter of fiscal 2013 or 2012.

Stock 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, 2012 19,394 $     2.32
       Exercised (176 ) 0.99
       Forfeited (71 ) 1.17
       Expired (840 ) 5.28
Outstanding as of June 30, 2012       18,307   $ 2.20   2.56   $     6,412
Vested and expected to vest at June 30, 2012 18,204   $ 2.20 2.54 $ 6,405
Exercisable as of June 30, 2012 15,401 $ 2.32 2.14 $ 4,476
 

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, 2012       8,861 $     2.75
       Granted 353 2.20
       Vested (501 )   2.58
       Forfeited (138 ) 2.22
Nonvested at June 30, 2012 8,575 $ 2.75