Quarterly report pursuant to sections 13 or 15(d)

Shareholders' Equity

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Shareholders' Equity
 9 Months Ended
Sep. 30, 2012
Shareholders' Equity
10. Shareholders’ Equity

 

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 September 30, 2012, 2,780,837 shares have been repurchased for $4,391 under the program, including 139,626 shares for $196 and 711,537 shares for $1,146 repurchased in the three and nine months ended September 30, 2012, respectively.

 

Stock Compensation Plans

 

Options granted during the nine months ended September 30, 2012 were as follows:

 

Grant Date   Expire Date   Shares     Exercise Price     Fair Value(1)  
January 31, 2012(2)   January 31, 2022     3,630,000     $ 2.80     $ 4,346  
May 29, 2012(2)   May 29, 2022     25,000     $ 1.47     $ 26  
July 12, 2012(3)   July 12, 2022     20,000     $ 1.55     $ 19  
September 28, 2012(3)   September 28, 2022     450,000     $ 1.32     $ 329  

 

(1) Fair value is calculated using the Black-Scholes option pricing model.
(2) Options vest in four equal annual installments beginning on the first anniversary of the respective grant dates.
(3) Options fully vest on the first anniversary of the respective grant dates.

 

Options forfeited during the nine months ended September 30, 2012 were 60,922 shares.

 

As of September 30, 2012, there was $11,802 of unrecognized compensation cost for stock-based compensation, of which $3,796 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 2.7 years for all grants and approximately 3.1 years for the 2012 grants.

 

Options were exercised to purchase 811,500 shares of the Company’s common stock during the nine months ended September 30, 2012, for which the intrinsic value on date of exercise was $1,216.