Share-based Compensation (Tables)

9 Months Ended

Mar. 31, 2017

Share Based Compensation [Abstract]

Shares Reserved for Issuance

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

	March 31, 2017		June 30, 2016
2014 Employee Stock Purchase Plan		7,785		10,001
Employee stock options and awards outstanding		9,352		10,609
2013 Employee Plan shares available for grant		10,241		5,401
Total shares reserved for issuance		27,378		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				Nine Months Ended
	March 31, 2017		March 31, 2016		March 31, 2017		March 31, 2016
Cost of product revenue	$	73	$	205	$	262	$	777
Cost of service revenue		56		223		475		867
Research and development		625		1,137		2,593		3,857
Sales and marketing		809		996		3,129		3,791
General and administrative		911		942		2,869		2,828
Total share-based compensation expense	$	2,474	$	3,503	$	9,328	$	12,120

Summary of Stock Award Activity

The following table summarizes stock award activity for the nine months ended March 31, 2017  (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		3,527			4.09
Vested		(1,476	)		3.94
Cancelled		(797	)		3.43
Non-vested stock awards outstanding at March 31, 2017		5,478		$	3.66	$	41,094

Summary of Stock Option Activity

The following table summarizes stock option activity for the nine months ended March 31, 2017 (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		(1,467	)		3.75
Cancelled		(1,044	)		4.51
Options outstanding at March 31, 2017		3,874		$	4.12		4.11	$	13,143
Vested and expected to vest at March 31, 2017		3,874		$	4.12		4.11	$	13,143
Exercisable at March 31, 2017		2,919		$	4.48		3.27	$	8,841

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 1,114,707; 2,218,306; 999,758 and 1,999,519 shares issued under the Company’s 2014 Employee Stock Purchase Plan (“ESPP”) during the three and nine months ended March 31, 2017 and 2016, respectively.

	Employee Stock Purchase Plan						Stock Option Plan			Employee Stock Purchase Plan
	Three Months Ended						Nine Months Ended			Nine Months Ended
	March 31, 2017			March 31, 2016			March 31, 2016			March 31, 2017			March 31, 2016
Expected life	0.50 years			1.45 years			4.0 years			0.50 years			1.25
Risk-free interest rate		0.40	%		0.52	%		1.78	%		0.40	%		0.44	%
Volatility		37	%		57	%		52	%		38	%		57	%
Dividend yield		—	%		—	%		—	%		—	%		—	%