Share-based Compensation (Tables)

6 Months Ended

Dec. 31, 2015

As of December 31, 2015, the Company had reserved for issuance (in thousands):

	December 31, 2015		June 30, 2015
2014 Employee Stock Purchase Plan		11,000		12,000
Employee stock options and awards outstanding		12,485		15,273
Employee stock options and awards available for grant		4,768		5,450
Total shares reserved for issuance		28,253		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				Six Months Ended
	December 31, 2015		December 31, 2014		December 31, 2015		December 31, 2014
Cost of product revenue	$	277	$	275	$	572	$	558
Cost of service revenue		277		272		644		563
Research and development		1,165		1,544		2,795		3,188
Sales and marketing		1,291		1,566		2,719		3,123
General and administrative		935		1,092		1,886		2,131
Total share-based compensation expense	$	3,945	$	4,749	$	8,616	$	9,563

Schedule of Share-based Compensation, Restricted Stock Units Activity

The following table summarizes stock award activity for the six months ended December 31, 2015 (in thousands, except grant date fair value):

	Number of			Weighted-
	Shares			Average Grant-		Aggregate Fair
	(000’s)			Date Fair Value		Market Value ($000’s)
Non-vested stock awards outstanding at June 30, 2015		4,597		$	3.82
Granted		2,889		$	3.14
Vested		(1,729	)	$	4.68
Cancelled		(582	)	$	3.77
Non-vested stock awards outstanding at December 31, 2015		5,175		$	3.16	$	21,113

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes stock option activity under all plans for the six months ended December 31, 2015 (in thousands, except per share and contractual term):

				Weighted-		Weighted-
				Average		Average		Aggregate
	Number of			Exercise		Remaining		Intrinsic
	Shares			Price		Contractual		Value
	(000’s)			Per Share		Term (years)		(000’s)
Options outstanding at June 30, 2015		10,604		$	4.03		3.79		410
Granted		5		$	3.79
Exercised		(240	)	$	3.23
Cancelled		(3,059	)	$	3.83
Options outstanding at December 31, 2015		7,310		$	4.13		4.32	$	3,632
Exercisable at December 31, 2015		4,908		$	4.14		3.39	$	2,174
Vested and expected to vest at December 31, 2015		6,984		$	4.12		4.25	$	3,476

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 Plan						Employee Stock Purchase Plan						Stock Option Plan						Employee Stock Purchase Plan
	Three Months Ended						Three Months Ended						Six Months Ended						Six Months Ended
	December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014
Expected life	4.0 years			4.8 years			—			0.25 years			4.0 years			4.7 years			1.25 years			0.25 years
Risk-free interest rate		1.78	%		1.67	%		—	%		0.03	%		1.78	%		1.61	%		0.29	%		0.02	%
Volatility		52	%		54	%		—	%		63	%		52	%		54	%		58	%		57	%
Dividend yield		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%