SHARE-BASED COMPENSATION

9 Months Ended

Dec. 31, 2012

SHARE-BASED COMPENSATION

NOTE 3 – SHARE-BASED COMPENSATION

The following is a summary of share-based compensation expense including restricted stock units and employee stock purchases made under our employee stock purchase plan (ESPP) based on estimated fair values within the applicable cost and expense lines identified below (in thousands):

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2012		2011		2012		2011
Cost of product revenue	$	61	$	49	$	176	$	137
Cost of service revenue		96		49		249		161
Research and development		778		600		2,164		1,702
Sales and marketing		775		775		2,301		2,152
General and administrative		754		697		2,353		1,965
	$	2,464	$	2,170	$	7,243	$	6,117

Employee Stock Purchase Plan – The Company maintains an ESPP for all eligible employees as described in the Company’s Annual Report on Form 10-K for the year ended March 31, 2012. Under the ESPP, shares of the Company’s common stock may be purchased on the last day of each bi-annual offering period at 85% of the fair value on the last day of such offering period. The offering periods run from March 1 through August 30 and from September 1 through February 28 of each year. During the nine months ended December 31, 2012, employees purchased 93,661 shares under the ESPP and the fair value per share was $23.75.