Share-based Compensation (Tables)

Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands):



	Three Months Ended
	September 30, 2013		September 30, 2012
Cost of product revenue	$	102	$	174
Cost of service revenue	40		159
Research and development	243		727
Sales and marketing	570		432
General and administrative	620		676
Total share-based compensation expense	$	1,575	$	2,168

The following table summarizes stock option activity under all plans for the three months ended September 30, 2013:



	Number of Shares (000’s)		Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (000’s)
Options outstanding at June 30, 2013	9,145		$	3.66
Granted	854		$	4.18
Exercised	(524	)	$	3.44		$	410
Cancelled	(390	)	$	3.72
Options outstanding at September 30, 2013	9,085		$	3.72	4.77	$	14,665
Exercisable at September 30, 2013	4,464		$	3.21	3.21	$	6,550
Vested and expected to vest at September 30, 2013	8,181		$	4.58	4.58	$	13,010

The following table summarizes stock award activity for the three months ended September 30, 2013:



	Number of Shares (000’s)		Weighted- Average Grant- Date Fair Value		Aggregate Fair Market Value ($000's)
Non-vested stock outstanding at June 30, 2013	2,686		$	3.09
Granted	130		$	4.18
Vested	(249	)	$	4.12	$	1,047
Cancelled	(137	)	$	3.53
Non-vested stock outstanding at September 30, 2013	2,430		$	3.01



	Stock Option Plan				Employee Stock Purchase Plan
	Three Months Ended				Three Months Ended
	September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
Expected life	5 years		5 years		0.25 years		0.25 years
Risk-free interest rate	1.53	%	0.90	%	0.09	%	0.06	%
Volatility	64	%	66	%	32	%	69	%
Dividend yield	—	%	—	%	—	%	—	%