Stockholders' Equity

3 Months Ended

Mar. 31, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

NOTE 6 — Stockholders’ Equity

Stock-based Compensation

The following table presents the stock-based compensation, as included in the Unaudited Condensed Consolidated Statements of Income, by functional area:

	Three Months Ended March 31,
	2018		2017
	(In thousands)
Stock-based compensation:
Cost of revenue	$	2,542	$	2,398
Research and development		959		1,567
Sales and marketing		1,647		1,491
General and administrative		3,127		2,842
Amortization of internal use software, included in amortization of intangible assets		168		128
Total stock-based compensation	$	8,443	$	8,426

Cash Dividends

On May 1, 2018, the Board of Directors declared a quarterly dividend of $0.08 per share to be paid on July 6, 2018 to record-holders as of June 22, 2018. While the Company currently expects to pay comparable cash dividends on a quarterly basis in the future, any future determination with respect to the declaration and payment of dividends will be at the discretion of the Board of Directors. As of March 31, 2018, the Company had a dividend payable balance of $5.1 million, which was paid to stockholders in April 2018.

Stock Repurchase Program

On October 24, 2017, the Board of Directors approved a stock repurchase program of up to $60.0 million of the Company’s common stock over a twelve-month period. As of December 31, 2017, $10.8 million had been utilized and there were no repurchases during the three months ended March 31, 2018. The approximate dollar value of shares that may yet be purchased under the repurchase program is $49.2 million. Any share repurchases may be made through open market and privately negotiated transactions, at times and in such amounts as management deems appropriate, and may or may not be made pursuant to one or more Rule 10b5-1 trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. The timing and amount of any shares repurchased will depend on a variety of factors, including stock price, market conditions, corporate and regulatory requirements (including applicable securities laws and regulations and the rules of The NASDAQ Stock Market), any additional constraints related to material inside information the Company may possess, and capital availability. The Company has no commitment to make any repurchases. The stock repurchase program may be modified, extended or terminated by the Board of Directors at any time and there is no guarantee as to the exact number of shares, if any, that will be repurchased under the program. The stock repurchase program is expected to be funded by available working capital.

Employee Stock Purchase Plan

In March 2018, the Compensation Committee approved an employee stock purchase plan, contingent upon receiving stockholder approval of a request at the annual meeting of stockholders in May 2018 for additional shares to be made available under the Company’s Employee Stock Purchase Plan (ESPP). Under the Company’s ESPP, employees would be granted the right to purchase shares of common stock at a price per share that is 85% of the lesser of the fair market value of the shares at (1) the beginning of a six-month purchase period or (2) the end of the purchase period, subject to a plan limit on the number of shares that may be purchased in a purchase period.

Financial Engines, Inc. 10-Q