Share-based Compensation (Tables)

3 Months Ended

Sep. 30, 2015

As of September 30, 2015, the Company had reserved for issuance (in thousands):



	September 30, 2015	June 30, 2015
2014 Employee Stock Purchase Plan	11,000	12,000
Employee stock options and awards outstanding	14,617	15,273
Employee stock options and awards available for grant	4,767	5,450
Total shares reserved for issuance	30,384	32,723

Schedule of Recognized Share-based Compensation Expense

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, 2015		September 30, 2014
Cost of product revenue	$	296	$	283
Cost of service revenue	367		291
Research and development	1,629		1,644
Sales and marketing	1,428		1,557
General and administrative	951		1,038
Total share-based compensation expense	$	4,671	$	4,813

Schedule of Share-based Compensation, Restricted Stock Units Activity

The following table summarizes stock award activity for the three months ended September 30, 2015 (in thousands, except grant date fair value):



	Number of Shares (000’s)		Weighted- Average Grant- Date Fair Value		Aggregate Fair Market Value ($000's)
Non-vested stock awards outstanding at June 30, 2015	4,597		$	3.82
Granted	2,291		$	2.94
Vested	(44	)	$	2.67	$	118
Cancelled	(187	)	$	4.55
Non-vested stock awards outstanding at September 30, 2015	6,657		$	3.51

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes stock option activity under all plans for the three months ended September 30, 2015 (in thousands, except per share and contractual term):



	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, 2015	10,604		$	4.03	3.79	$	410
Granted	—		$	—
Exercised	(24	)	$	2.36
Cancelled	(2,620	)	$	3.70
Options outstanding at September 30, 2015	7,960		$	4.14	4.62	$	1,484
Exercisable at September 30, 2015	4,713		$	4.17	3.31	$	582
Vested and expected to vest at September 30, 2015	7,516		$	4.14	4.49	$	1,381

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each share purchase option under the Company's 2014 ESPP and 1999 ESPP is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The expected term of the 2014 ESPP and the 1999 ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on a blended rate of the implied volatilities from traded options and historical volatility on the Company’s stock.



	Stock Option Plans				Employee Stock Purchase Plans
	Three Months Ended				Three Months Ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Expected life	0.0 years		5.0 years		1.25 years		0.25 years
Risk-free interest rate	—	%	1.52	%	0.29	%	0.02	%
Volatility	—	%	54	%	58	%	53	%
Dividend yield	—	%	—	%	—	%	—	%