Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v2.4.1.9
Stock-Based Compensation
 9 Months Ended
Dec. 31, 2014
Share-based Compensation [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
The following table is a summary of total stock-based compensation resulting from stock options, restricted stock, restricted stock units (RSUs) and performance stock units (PSUs), during the three and nine months ended December 31, 2014, and 2013: 
 
Three months ended December 31,
 
Nine months ended December 31,
(in thousands)
2014
 
2013
 
2014
 
2013
Stock-based compensation expense
$
514

 
$
553

 
$
1,628

 
$
1,293

Income tax expense
—

 
—

 
—

 
—

Total stock-based compensation expense after taxes
$
514

 
$
553

 
$
1,628

 
$
1,293


The stock options, restricted stock awards, and RSUs awarded in the nine months ended December 31, 2014, vest in equal annual installments over four years. PSUs earned vest over the performance period, as described below. On September 16, 2014, the Board of Directors modified the vesting provisions on all outstanding non-employee director restricted stock awards to include an accelerated vesting provision triggered upon a termination of service as a director following a failure to be nominated by the Board of Directors for re-election as a director. As a result of that modification, the requisite service period on all unvested restricted stock was shortened to the next expected nomination date in July 2015. As a result of this modification, the Company recorded incremental stock-based compensation expense of $70,000 and $158,000 during the three and nine months ended December 31, 2014.
Stock Options
Stock option activity for the nine months ended December 31, 2014, is as follows:
 
Shares
 
Weighted-Average
Exercise Price Per
Share
 
Weighted-Average
Remaining
Contractual Term
(in years)
 
Aggregate
Intrinsic Value (a) (in
thousands)
Outstanding on March 31, 2014
1,835,445

 
$
2.02

 
3.7
 
$
3,110

Granted
40,000

 
3.47

 

 

Exercised
(69,200
)
 
2.24

 

 

Forfeited
(212,500
)
 
2.56

 

 

Expired
(252,430
)
 
2.68

 

 

Outstanding on December 31, 2014
1,341,315

 
$
1.84

 
3.2
 
$
417

 
(a)
The intrinsic value for the stock options is calculated based on the difference between the exercise price of the underlying awards and the average of the high and low Westell Technologies’ stock price as of the reporting date.
The weighted-average fair value of stock options granted during the nine months ended December 31, 2014, was $1.27 per share.
Restricted Stock
The following table sets forth restricted stock activity for the nine months ended December 31, 2014: 
 
Shares
 
Weighted-Average
Grant Date Fair
Value
Non-vested as of March 31, 2014
407,500

 
$
1.94

Granted
100,000

 
3.53

Vested
(337,500
)
 
1.89

Forfeited
—

 
—

Non-vested as of December 31, 2014
170,000

 
$
2.98

RSUs
The following table sets forth the RSU activity for the nine months ended December 31, 2014: 
 
Shares
 
Weighted-Average
Grant Date Fair
Value
Non-vested as of March 31, 2014
1,679,000

 
$
3.09

Granted
524,500

 
2.70

Vested
(387,500
)
 
2.67

Forfeited
(364,750
)
 
2.72

Non-vested as of December 31, 2014
1,451,250

 
$
3.15

PSUs
The PSUs vest in annual increments based on the achievement of pre-established Company performance goals and continued employment. The number of PSUs earned, if any, can range from 0% to 200% of the target amount, depending on actual performance for four fiscal years following the grant date. Upon vesting, the PSUs convert into shares of Class A Common Stock on a one-for-one basis.
The following table sets forth the PSU activity for the nine months ended December 31, 2014: 
 
Shares
 
Weighted-Average Grant Date Fair Value
Non-vested as of March 31, 2014
285,000

 
$
2.45

Granted, at target
217,500

 
3.83

Vested
(66,764
)
 
2.45

Forfeited
(102,431
)
 
3.04

Non-vested as of December 31, 2014
333,305

 
$
3.16