Quantum Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION (Tables)

STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Mar. 31, 2014

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Assumptions Used In Valuing Stock Options

The weighted-average estimated fair values and the assumptions used in calculating fair values for stock options granted during each fiscal period are as follows:

	For the year ended March 31,
	2014	2013	2012
Stock option life (in years)	n/a	n/a		4.0
Risk-free interest rate	n/a	n/a		1.57	%
Stock price volatility	n/a	n/a		112.33	%
Weighted-average grant date fair value	n/a	n/a	$	1.91

Schedule of Assumptions Used to Valuing Stock Purchase Plan

The weighted-average fair values and the assumptions used in calculating fair values during each fiscal period are as follows:

	For the year ended March 31,
	2014			2013			2012
Option life (in years)		0.50			0.50			0.50
Risk-free interest rate		0.07	%		0.13	%		0.06	%
Stock price volatility		43.71	%		69.73	%		70.29	%
Weighted-average grant date fair value	$	0.40		$	0.48		$	0.82

Schedule of Share-based Compensation Expense

	For the year ended March 31,
	2014		2013		2012
Share-based compensation expense:
Cost of revenue	$	1,963	$	2,389	$	2,203
Research and development		3,430		3,665		3,250
Sales and marketing		4,097		4,699		4,048
General and administrative		3,969		4,386		4,236
Total share-based compensation expense	$	13,459	$	15,139	$	13,737

Schedule of Share-based Compensation by Type of Award

	For the year ended March 31,
	2014		2013		2012
Share-based compensation by type of award:
Stock options	$	826	$	1,681	$	2,622
Restricted stock		11,356		11,630		9,053
Stock purchase plan		1,277		1,828		2,062
Total share-based compensation expense	$	13,459	$	15,139	$	13,737

Schedule of Stock Option Activity

A summary of activity relating to all of our stock option plans is as follows (stock options and intrinsic value in thousands):

	Stock Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding as of March 31, 2011	22,080		$	2.43
Granted and assumed	1,619			2.33
Exercised	(2,982	)		1.79
Forfeited	(619	)		1.90
Expired	(704	)		8.25
Outstanding as of March 31, 2012	19,394			2.32
Exercised	(379	)		0.96
Forfeited	(406	)		2.43
Expired	(2,559	)		3.65
Outstanding as of March 31, 2013	16,050			2.14
Exercised	(989	)		0.98
Forfeited	(3,199	)		3.44
Expired	(3,865	)		2.11
Outstanding as of March 31, 2014	7,997		$	1.78	2.04	$	1,007
Vested and expected to vest at March 31, 2014	7,980		$	1.77	2.03	$	1,007
Exercisable as of March 31, 2014	7,641		$	1.74	1.95	$	1,006

Schedule of Options Outstanding and Exercisable, by Exercise Price Range

The following table summarizes information about stock options outstanding and exercisable as of March 31, 2014 (stock options in thousands):

Range of Exercise Prices					Stock Options Outstanding	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)	Stock Options Exercisable	Weighted- Average Exercise Price
$	0.11	-	$	0.63	159	$	0.56	5.14	157	$	0.56
$	0.77	-	$	0.98	3,615		0.98	2.18	3,615		0.98
$	1.00	-	$	1.39	589		1.21	1.69	589		1.21
$	1.52	-	$	2.17	579		1.63	0.75	579		1.63
$	2.30	-	$	3.40	2,830		2.83	2.14	2,476		2.88
$	4.00	-	$	4.00	225		4.00	0.59	225		4.00
					7,997	$	1.78	2.04	7,641	$	1.74

Schedule of Restricted Stock Activity

A summary of activity relating to our restricted stock follows (shares in thousands):

	Shares		Weighted-Average Grant Date Fair Value
Nonvested at March 31, 2011	6,640		$	1.95
Granted and assumed	6,669			3.14
Vested	(3,058	)		1.88
Forfeited	(1,390	)		2.73
Nonvested at March 31, 2012	8,861			2.75
Granted	5,514			1.98
Vested	(3,566	)		2.55
Forfeited	(922	)		2.30
Nonvested at March 31, 2013	9,887			2.43
Granted	8,280			1.39
Vested	(4,486	)		2.39
Forfeited	(1,573	)		1.93
Nonvested at March 31, 2014	12,108		$	1.80

Pancetera [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Assumptions Used In Valuing Stock Options

The weighted-average fair value of stock options assumed from Pancetera, as well as the weighted-average assumptions used in calculating these values were based on estimates at the acquisition date as follows:

Option life (in years)		5.2
Risk-free interest rate		1.65	%
Stock price volatility		100.93	%
Weighted-average fair value	$	2.67

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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