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, 2014		September 30, 2013
Cost of product revenue	$	283	$	102
Cost of service revenue	291		40
Research and development	1,644		243
Sales and marketing	1,557		570
General and administrative	1,038		620
Total share-based compensation expense	$	4,813	$	1,575

The following table summarizes stock option activity under all plans for the three months ended September 30, 2014:



	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, 2014	11,732		$	4.26
Granted	432		$	5.21
Exercised	(149	)	$	3.36		$	245
Cancelled	(785	)	$	4.95
Options outstanding at September 30, 2014	11,230		$	4.25	5.00	$	8,795
Exercisable at September 30, 2014	5,135		$	3.85	3.87	$	5,487
Vested and expected to vest at September 30, 2014	10,232		$	4.21	4.89	$	8,329

The following table summarizes stock award activity for the three months ended September 30, 2014:



	Number of Shares (000’s)		Weighted- Average Grant- Date Fair Value		Aggregate Fair Market Value ($000's)
Non-vested stock outstanding at June 30, 2014	6,000		$	4.98
Granted	124		$	5.21
Vested	(88	)	$	3.71	$	422
Cancelled	(279	)	$	4.28
Non-vested stock outstanding at September 30, 2014	5,757		$	5.04



	Stock Option Plan				Employee Stock Purchase Plan
	Three Months Ended				Three Months Ended
	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
Expected life	5 years		5 years		0.25 years		0.25 years
Risk-free interest rate	1.52	%	1.53	%	0.02	%	0.09	%
Volatility	54	%	64	%	53	%	32	%
Dividend yield	—	%	—	%	—	%	—	%