Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v2.4.0.6
Stock-Based Compensation (Tables)
 12 Months Ended
Mar. 31, 2013
Share-based Compensation [Abstract]  
Stock-based compensation expense
Stock-Based Compensation Expense
Total stock-based compensation, excluding the impact of discontinued operations, is reflected in the Consolidated Statements of Operations as follows:
 
Fiscal Year Ended March 31,
(in thousands)
2013
 
2012
 
2011
Cost of goods sold
$
27

 
$
55

 
$
50

Sales and marketing
190

 
173

 
273

Research and development
115

 
58

 
95

General and administrative
1,075

 
915

 
463

Stock-based compensation expense
1,407

 
1,201

 
881

Income tax benefit
—

 
(61
)
 
—

Total stock-based compensation expense after taxes
$
1,407

 
$
1,140

 
$
881

Stock option activity
Option activity for the twelve months ended March 31, 2013 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, 2012
2,254,103

 
$
2.04

 
3.3
 
$
1,483

Granted
340,000

 
$
2.15

 
 
 
 
Exercised
(157,807
)
 
$
0.55

 
 
 
 
Forfeited
(80,440
)
 
$
2.06

 
 
 
 
Expired
(241,410
)
 
$
2.90

 
 
 
 
Outstanding on March 31, 2013
2,114,446

 
$
2.07

 
2.8
 
$
868

Vested or expected to vest as of March 31, 2013
2,089,420

 
$
2.07

 
2.8
 
$
867

Exercisable on March 31, 2013
1,650,683

 
$
2.15

 
2.2
 
$
726

(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.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
The fair value of each option was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:
 
Fiscal Year Ended March 31
 
2013
 
2012
 
2011
Input assumptions:
 
 
 
 
 
Expected volatility
49
%
 
70
%
 
71
%
Risk-free interest rate
0.7
%
 
1.4
%
 
1.6
%
Expected life
5 years

 
5 years

 
5 years

Expected dividend yield
—
%
 
—
%
 
—
%
Output weighted-average grant-date fair value
$
0.89

 
$
1.93

 
$
1.12

Restricted stock activity
The following table sets forth restricted stock activity for the twelve months ended March 31, 2013:
 
Shares
 
Weighted-Average
Grant Date Fair
Value
Non-vested as of March 31, 2012
1,045,000

 
$
1.54

Granted
70,000

 
$
2.36

Vested
(352,500
)
 
$
1.49

Forfeited
(24,000
)
 
$
1.43

Non-vested as of March 31, 2013
738,500

 
$
1.65

The Company recorded $0.6 million, $0.5 million, and $0.1 million of expense in the twelve months ended March 31, 2013, 2012 and 2011, respectively, related to restricted stock. As of March 31, 2013, there was $0.7 million of pre-tax unrecognized compensation expense, including estimated forfeitures, related to non-vested restricted stock, which is expected to be recognized over a weighted-average period of 1.6 years.
Restricted Stock Units (“RSUs”) and Performance-based RSUs ("PSUs")
In fiscal years 2013 and 2012, 530,000 and 500,000 shares, respectively, of RSUs were awarded to certain key employees. These awards convert into shares of Class A Common Stock on a one-for-one basis upon vesting and vest in equal annual installments over 4 years from the grant dates.
In fiscal year 2011, certain executives were granted 620,000 RSUs with time-based vesting conditions, which converted into shares of Class A Common Stock during the first quarter of fiscal year 2012. Of these units, 25% vested on April 1, 2011, and the remaining shares vest 25% annually each April 1 thereafter. In addition, executives received 620,000 PSUs which converted to shares of restricted Class A Common Stock at the maximum rate of 140% during the first quarter of fiscal year 2012. The conversion rate was based upon fiscal year 2011 achievement against a return on assets ("ROA") metric. The actual conversion rate was 140%. On May 18, 2011, the first 25% of the PSUs vested and the remaining awards are scheduled to vest 25% annually on each subsequent April 1.
The Company recorded stock-based compensation expense of $0.6 million, $0.3 million and $0.4 million for RSUs and PSUs in fiscal years 2013, 2012 and 2011, respectively. As of March 31, 2013, there was approximately $1.8 million of pre-tax unrecognized compensation expense, including estimated forfeitures, related to the RSUs, which is expected to be recognized over a weighted-average period of 2.6 years.
The following table sets forth the RSUs activity for the twelve months ended March 31, 2013:
 
Shares
 
Weighted-Average
Grant Date Fair
Value
Non-vested as of March 31, 2012
500,000

 
$
3.25

Granted
530,000

 
$
2.25

Vested
(125,000
)
 
$
3.25

Forfeited
(30,000
)
 
$
2.36

Non-vested as of March 31, 2013
875,000

 
$
2.68