Share-based Compensation (Tables)

3 Months Ended

Sep. 30, 2017

Share Based Compensation [Abstract]

Shares Reserved for Issuance

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

	September 30, 2017		June 30, 2017
2014 Employee Stock Purchase Plan		6,517		7,785
Employee stock options and awards outstanding		10,130		9,726
2013 Equity Incentive Plan shares available for grant		5,353		7,629
Total shares reserved for issuance		22,000		25,140

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, 2017		September 30, 2016
Cost of product revenue	$	92	$	68
Cost of service revenue		133		232
Research and development		1,051		1,141
Sales and marketing		1,643		1,062
General and administrative		1,884		972
Total share-based compensation expense	$	4,803	$	3,475

Summary of Stock Award Activity

The following table summarizes stock award activity for the three months ended September 30, 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, 2017		6,664		$	4.66	$	61,440
Granted		2,094			10.55
Vested		(1,223	)		3.45
Cancelled		(118	)		4.72
Non-vested stock awards outstanding at September 30, 2017		7,417		$	6.53	$	88,195

Summary of Stock Option Activity

The following table summarizes stock option activity for the three months ended September 30, 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, 2017		3,062		$	4.06		4.19	$	15,868
Exercised		(347	)		4.44
Cancelled		(2	)		5.58
Options outstanding at September 30, 2017		2,713		$	4.01		4.10	$	21,478
Vested and expected to vest at September 30, 2017		2,713		$	4.01		4.10	$	21,478
Exercisable at September 30, 2017		2,129		$	4.33		3.40	$	16,090

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 Employee Stock Purchase Plan (“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.

The weighted-average fair value of shares granted under the Company’s 2014 ESPP during the three months ended September 30, 2017 and 2016, was $2.41 and $1.00, respectively.  There were 1,267,930 and 1,103,599 shares issued under the Company’s 2014 ESPP during the three months ended September 30, 2017 and 2016, respectively.

	Employee Stock Purchase Plan
	Three Months Ended
	September 30, 2017			September 30, 2016
Expected life	0.50 years			0.50 years
Risk-free interest rate		1.15	%		0.40	%
Volatility		42	%		40	%
Dividend yield		—	%		—	%