Share-based Compensation (Tables)

6 Months Ended

Dec. 31, 2016

Share Based Compensation [Abstract]

Shares Reserved for Issuance

The Company had reserved for issuance for the periods noted (in thousands):

	December 31, 2016		June 30, 2016
2014 Employee Stock Purchase Plan		8,897		10,001
Employee stock options and awards outstanding		10,450		10,609
2013 Employee Plan shares available for grant		1,553		5,401
Total shares reserved for issuance		20,900		26,011

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, 2016		December 31, 2015		December 31, 2016		December 31, 2015
Cost of product revenue	$	122	$	277	$	190	$	572
Cost of service revenue		186		277		418		644
Research and development		906		1,165		1,968		2,795
Sales and marketing		1,180		1,291		2,321		2,719
General and administrative		987		935		1,959		1,886
Total share-based compensation expense	$	3,381	$	3,945	$	6,856	$	8,616

Summary of Stock Award Activity

The following table summarizes stock award activity for the six months ended December 31, 2016  (in thousands, except grant date fair value):

	Number of Shares			Weighted- Average Grant Date Fair Value		Aggregate Fair Market Value
Non-vested stock awards outstanding at June 30, 2016		4,224		$	3.36
Granted		3,148			3.90
Vested		(1,164	)		4.25
Cancelled		(326	)		2.88
Non-vested stock awards outstanding at December 31, 2016		5,882		$	3.49	$	29,587

Summary of Stock Option Activity

The following table summarizes stock option activity for the six months ended December 31, 2016 (in thousands, except per share and contractual term):

	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Options outstanding at June 30, 2016		6,385		$	4.10		3.70	$	1,416
Granted		-			-
Exercised		(944	)		3.43
Cancelled		(873	)		4.56
Options outstanding at December 31, 2016		4,568		$	4.15		3.79	$	4,742
Exercisable at December 31, 2016		3,419		$	4.49		3.36	$	2,490
Vested and expected to vest at December 31, 2016		4,568		$	4.15		3.79	$	4,742

Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards

The fair value of each share purchase option under the Company's 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 ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock.

There were no shares granted under the Company’s 2014 Employee Stock Purchase Plan (“ESPP”) during the three months ended December 31, 2016 and 2015.

	Stock Option Plan						Employee Stock Purchase Plan
	Three Months Ended			Six Months Ended			Six Months Ended
	December 31, 2015			December 31, 2015			December 31, 2016			December 31, 2015
Expected life	4.0 years			4.0 years			1.21 years			1.25 years
Risk-free interest rate		1.78	%		1.78	%		0.33	%		0.29	%
Volatility		52	%		52	%		58	%		58	%
Dividend yield		—	%		—	%		—	%		—	%