Share-based Compensation (Tables)

9 Months Ended

Mar. 31, 2016

As of March 31, 2016, the Company had reserved for issuance (in thousands):

	March 31, 2016		June 30, 2015
2014 Employee Stock Purchase Plan		10,001		12,000
Employee stock options and awards outstanding		11,174		15,273
Employee stock options and awards available for grant		5,140		5,450
Total shares reserved for issuance		26,315		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				Nine Months Ended
	March 31, 2016		March 31, 2015		March 31, 2016		March 31, 2015
Cost of product revenue	$	205	$	265	$	777	$	823
Cost of service revenue		223		254		867		816
Research and development		1,137		1,423		3,857		4,611
Sales and marketing		996		1,291		3,791		4,414
General and administrative		942		1,139		2,828		3,271
Total share-based compensation expense	$	3,503	$	4,372	$	12,120	$	13,935

Schedule of Share-based Compensation, Restricted Stock Units Activity

The following table summarizes stock award activity for the nine months ended March 31, 2016 (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		3,010		$	3.12
Vested		(2,198	)	$	4.30
Cancelled		(992	)	$	2.84
Non-vested stock awards outstanding at March 31, 2016		4,417		$	3.33	$	21,113

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes stock option activity for the nine months ended March 31, 2016 (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		(276	)	$	3.12
Cancelled		(3,576	)	$	3.91
Options outstanding at March 31, 2016		6,757		$	4.13		4.25	$	936
Exercisable at March 31, 2016		4,560		$	4.25		3.16	$	361
Vested and expected to vest at March 31, 2016		6,393		$	4.17		4.09	$	807

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						Nine Months Ended						Nine Months Ended
	March 31, 2016			March 31, 2015			March 31, 2016			March 31, 2015			March 31, 2016			March 31, 2015			March 31, 2016			March 31, 2015
Expected life		-		4.6 years			1.45 years			0.50 years			4.0 years			4.7 years			1.25			0.33 years
Risk-free interest rate		—	%		1.49	%		0.52	%		0.07	%		1.78	%		1.60	%		0.44	%		0.04	%
Volatility		—	%		54	%		57	%		58	%		52	%		54	%		57	%		58	%
Dividend yield		—	%		—	%		—	%		—	%		—	%		—	%		—	%		—	%