Stock Compensation

6 Months Ended

Dec. 31, 2012

4. Stock Compensation

Stock-based compensation expense is computed using the fair value of stock-based awards measured at the grant date, recognized over the relevant service period, and is adjusted each period for anticipated forfeitures. The grant date fair value of stock option awards is estimated using the Black-Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions:


	Three months ended December 31,						Six months ended December 31,
	2012			2011			2012			2011
Expected volatility (based on historical data)		33.9	%		30.5	%		33.7	%		29.7	%

Expected life in years		4.0			4.75			4.0			4.75

Risk-free interest rate		0.70	%		0.83	%		0.70	%		1.00	%

Fair value per award	$	2.47		$	1.69		$	2.43		$	1.76

Stock-based compensation expense reflects non-cash compensation expense associated with restricted stock purchase rights and employee stock options. Stock-based compensation expense is included in costs and expenses as follows:


	Three months ended December 31,				Six months ended December 31,
	2012		2011		2012		2011
Cost of service and other revenues	$	20	$	15	$	39	$	29

Sales and marketing		174		148		363		281

Research and development		101		75		216		149

General and administrative		186		229		366		453

Total	$	481	$	467	$	984	$	912

As of December 31, 2012, $4.1 million of unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.0 years.

Restricted Stock

The vesting period for restricted stock is generally a three year period. Stock will remain restricted until the full vesting period has expired. A summary of changes in restricted stock awards during the year ended June 30, 2012 and the six month period ended December 31, 2012 is as follows:


	Shares			Weighted Average Grant Date Fair Value		Weighted Average Remaining Vesting Period (in years)
Outstanding and unvested at June 30, 2011		1,047,000			4.42		1.29
Granted		539,000			5.96		2.71
Vested		(701,000	)		3.84		—
Forfeited		(66,000	)		5.36		—

Outstanding and unvested at June 30, 2012		819,000			5.73		2.56
Granted		67,000			8.73		3.60
Vested		(50,000	)		3.95		—
Forfeited		(7,000	)		5.66		—

Outstanding and unvested at December 31, 2012		829,000		$	6.00		1.70

Common Stock

The vesting period for stock options is generally a four-year period. Options are generally exercisable by the holder only for the vested portion of each grant. A summary of changes in common stock options during the year ended June 30, 2012 and the six month period ended December 31, 2012 is as follows:


	Shares			Weighted Average Exercise Price
Options outstanding, June 30, 2011		2,303,706		$	4.83
Granted		215,000		$	6.26
Exercised		(365,705	)	$	3.95
Surrendered		(134,525	)	$	5.17

Options outstanding, June 30, 2012		2,018,476		$	5.11
Granted		113,000		$	8.57
Exercised		(454,926	)	$	4.61
Surrendered		(57,500	)	$	6.06

Options outstanding, December 31, 2012		1,619,050		$	5.46

The following is additional information relating to outstanding options:


	Options Outstanding				Options Exercisable
Range of Exercise Price	December 31, 2012		June 30, 2012		December 31, 2012
$ 3.60 to $ 4.00		439,250		669,875		418,625
$ 4.03 to $ 6.00		618,550		831,100		478,550
$ 6.01 to $ 8.95		561,250		517,501		301,500

$ 3.60 to $8.95		1,619,050		2,018,476		1,198,675

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

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-Publisher AICPA

-Name Statement of Position (SOP)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 123R

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 718

-SubTopic 10

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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

+ Details

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