SHARE-BASED COMPENSATION

6 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

The following is a summary of share-based compensation expense including restricted stock units granted pursuant to the Company's 2007 Equity Incentive Plan, as amended (Amended 2007 Plan), and 2019 Equity Incentive Plan (2019 Plan) and employee stock purchases made under the Company's 2011 Employee Stock Purchase Plan, as amended, (ESPP), based on estimated fair values within the applicable cost and expense lines identified below (in thousands):


	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Cost of product revenue	$	344	$	345	$	589	$	612
Cost of service revenue	1,810		1,842		3,160		3,309
Research and development	4,935		4,820		8,716		8,639
Sales and marketing	5,357		5,288		9,349		9,423
General and administrative	3,290		3,562		6,018		6,617
	$	15,736	$	15,857	$	27,832	$	28,600

On September 12, 2019, the Company’s stockholders approved the 2019 Plan, which replaced the Company’s Amended 2007 Plan. The 2019 Plan permits the granting of incentive and nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other stock awards, collectively referred to as "share-based awards." On September 10, 2020, the Company's stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan (the Amended 2019 Plan) to increase the number of shares of shares authorized for issuance under the Amended 2019 Plan by 4,700,000. A total of 11,494,651 shares are reserved for issuance under the Amended 2019 Plan. Periodically, the Company grants share-based awards to employees, officers, and directors of the Company and its subsidiaries. The Company accounts for these share-based awards in accordance with GAAP, which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to its employees and directors. Share-based award grants are generally measured at fair value on the date of grant based on the number of shares granted and the quoted price of the Company’s common stock. Such value is recognized as a cost of revenue or an operating expense over the corresponding vesting period.

Employee Stock Purchase Plan – The Company maintains the ESPP for all eligible employees as described in the Company's Annual Report on Form 10-K for the year ended March 31, 2020. 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 1st through August 31st and from September 1st through the last day of February each year. During the six months ended September 30, 2020, employees purchased 279,812 shares under the ESPP and the value per share was $23.14.