8x8 2009 Annual Report Download - page 71

The total intrinsic value of options exercised in the years ended March 31, 2009, 2008 and 2007 were $49,000, $9,000 and
$146,000, respectively. As of March 31, 2009, there was $57,000 of unamortized stock-based compensation expense related to
unvested stock awards which is expected to be recognized over a weighted average period of 4.00 years.
Cash received from option exercises and purchases of shares under the Purchase Plan for the years ended March 31, 2009,
2008 and 2007 were $0.3 million, $0.3 million and $0.5 million. The total tax benefit attributable to stock options exercised in
the year ended March 31, 2009 was $0.
The Company did not recognize and does not expect to recognize in the near future any tax benefit related to employee stock-
based compensation cost as a result of the full valuation allowance on its net deferred tax assets and because of its net operating
loss carryforwards.
1996 Employee Stock Purchase Plan
The Company's 1996 Stock Purchase Plan (the Purchase Plan) was adopted in June 1996 and became effective upon the
closing of the Company's initial public offering in July 1997. The Company suspended the Purchase Plan in 2003 and
reactivated the Plan in fiscal 2005. Under the Purchase Plan, 500,000 shares of common stock were initially reserved for
issuance. At the start of each fiscal year, the number of shares of common stock subject to the Purchase Plan increases so that
500,000 shares remain available for issuance. During fiscal 2009, 2008 and 2007 424,470, 273,229 and 249,806 shares,
respectively, were issued under the Purchase Plan. In May 2006, the Board approved a ten-year extension of the Purchase Plan
so that it would be effective until 2017. Stockholders approved a ten-year extension of the Purchase Plan at the 2006 Annual
Meeting of Stockholders held September 18, 2006. The Purchase Plan is effective until 2017.
The Purchase Plan permits eligible employees to purchase common stock through payroll deductions at a price equal to 85% of
the fair market value of the common stock at the beginning of each two year offering period or the end of a six month purchase
period, whichever is lower. When the Purchase Plan was reinstated in fiscal 2005, the offering period was reduced from two
years to one year. The contribution amount may not exceed ten percent of an employee's base compensation, including
commissions, but not including bonuses and overtime. In the event of a merger of the Company with or into another
corporation or the sale of all or substantially all of the assets of the Company, the Purchase Plan provides that a new exercise
date will be set for each option under the plan which exercise date will occur before the date of the merger or asset sale.
Assumptions Used to Calculate Stock-Based Compensation Expense
The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing
model with the following assumptions:
2009 2008 2007
Expected volatility 79% 79% 90%
Expected dividend yiel
d
- - -
Risk-free interest rate 1.4% to 3.2% 2.2% to 4.8% 4.6% to 5.0%
Weighted average expected option term 4.6 years 3.4 years 3.4 years
Weighted average fair value of options granted $ 0.52 $ 0.71 $ 0.88
Years Ended March 31,
The estimated fair value of stock purchase rights granted under the Purchase Plan were estimated using the Black-Scholes
pricing model with the following weighted-average assumptions:
2009 2008 2007
Expected volatility 68% 54% 84%
Expected dividend yiel
d
- - -
Risk-free interest rate 0.87% 3.83% 5.13%
Weighted average expected rights ter
m
0.81 years 0.75 years 0.75 years
Weighted average fair value of rights granted $ 0.28 $ 0.44 $ 0.36
Years Ended March 31,
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