Repurchase Program

In March 2007, the Company’s board of directors authorized the repurchase of up to 2,500,000 shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions, depending on market conditions. In October 2011, the board approved an amendment to the repurchase program to permit the purchase of up to an additional 5,000,000 shares. Since inception through June 30, 2012, 2,641,211 shares have been repurchased for $4,196 under the program, including 391,919 shares for $592 and 571,911 shares for $950 repurchased in the three and six months ended June 30, 2012, respectively.

Stock Compensation Plans

On January 31, 2012, the Company granted to employees and directors options to purchase an aggregate of 3,630,000 shares of the Company’s common stock at an exercise price of $2.80 per share. The options, which expire on January 31, 2022, vest in four equal annual installments beginning on the first anniversary of the grant date. The Company valued the options at $4,345 using the Black-Scholes option pricing model. 

On May 29, 2012, the Company granted options to purchase 25,000 shares of the Company’s common stock at an exercise price of $1.47 per share. The options, which expire on May 29, 2022, vest in four equal annual installments beginning on the first anniversary of the grant date. The Company valued the options at $26 using the Black-Scholes option pricing model.

As of June 30, 2012, there was $14,001 of unrecognized compensation cost for stock-based compensation, of which $3,775 related to the 2012 grants described above. This cost is expected to be recognized over the vesting periods of the options, which on a weighted-average basis are approximately 1.70 years for all grants and approximately 3.5 years for the 2012 grants.

Options were exercised to purchase 771,500 shares of the Company’s common stock during the six months ended June 30, 2012, for which the intrinsic value on date of exercise was $1,625.