Quarterly report pursuant to Section 13 or 15(d)

STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION

v2.4.0.8
STOCK INCENTIVE PLANS AND SHARE-BASED COMPENSATION
 6 Months Ended
Sep. 30, 2014
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, 2014
 
September 30, 2013
 
September 30, 2014
 
September 30, 2013
Share-based compensation:
 
 
 
 
 
 
 
Cost of revenue
$
333

 
$
523

 
$
747

 
$
1,051

Research and development
603

 
908

 
1,383

 
1,776

Sales and marketing
887

 
1,080

 
1,797

 
2,154

General and administrative
846

 
980

 
1,810

 
1,866

 
$
2,669

 
$
3,491

 
$
5,737

 
$
6,847

Share-based compensation by type of award:
 
 
 
 
 
 
 
Stock options
$
154

 
$
208

 
$
311

 
$
440

Restricted stock
2,315

 
2,968

 
5,013

 
5,706

Stock purchase plan
200

 
315

 
413

 
701

 
$
2,669

 
$
3,491

 
$
5,737

 
$
6,847


Stock Incentive Plans - Grants and Fair Value
Stock Options
No stock options were granted during the second quarter or first six months of fiscal 2015 or 2014. The Black-Scholes option pricing model is used to estimate the fair value of stock options.
Restricted Stock
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 value of RSUs granted during the second quarter and first six months of fiscal 2015 was $1.25. The weighted-average grant date fair values of RSUs granted during the second quarter and first six months of fiscal 2014 were $1.41 and $1.40, respectively.

During the second quarter of fiscal 2015, we granted 2.3 million RSUs with performance conditions (“performance RSUs”), and the total fair value of these RSUs at the grant date was $2.9 million. Performance RSUs will become eligible for vesting based on Quantum achieving certain revenue and operating income targets through the end of fiscal 2015. Share-based compensation expense for performance RSUs is recognized when it is probable that the performance conditions will be achieved. As of September 30, 2014, the amount of share-based compensation expense recognized for the performance RSUs was immaterial.
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 2015 and fiscal 2014, respectively, was estimated at the date of the 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, 2014 and 2013 were as follows:
 
Three and Six Months Ended
 
September 30, 2014
 
September 30, 2013
Option life (in years)
0.5

 
0.5

Risk-free interest rate
0.06
%
 
0.07
%
Stock price volatility
32.19
%
 
47.65
%
Weighted-average grant date fair value
$
0.30

 
$
0.47


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, 2014
7,997

 
$
1.78

 
 
 
 
Exercised
(155
)
 
0.86

 
 
 
 
Forfeited
(99
)
 
2.13

 
 
 
 
Expired
(1,761
)
 
2.69

 
 
 
 
Outstanding as of September 30, 2014
5,982

 
$
1.52

 
2.07
 
$
704

Vested and expected to vest at September 30, 2014
5,977

 
$
1.52

 
2.06
 
$
704

Exercisable as of September 30, 2014
5,792

 
$
1.49

 
2.02
 
$
704



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, 2014
12,108

 
$
1.80

Granted
9,519

 
1.25

Vested
(5,284
)
 
2.21

Forfeited
(462
)
 
1.52

Nonvested at September 30, 2014
15,881

 
$
1.34