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Employee Benefit Plans (Tables)
12 Months Ended
Jun. 30, 2018
Share Based Compensation [Abstract]  
Shares Reserved for Issuance

The following are shares reserved for issuance (in thousands):

 

 

June 30,

2018

 

 

June 30,

2017

 

Employee stock options and awards outstanding

 

 

9,957

 

 

 

9,726

 

2013 Employee Plan shares available for grant

 

 

12,060

 

 

 

7,629

 

2014 Employee Stock Purchase Plan

 

 

5,365

 

 

 

7,785

 

Total shares reserved for issuance

 

 

27,382

 

 

 

25,140

 

 

Summary of Stock Option Activity

The following table summarizes stock option activity under all plans (shares and intrinsic value in thousands):

 

 

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

 

 

(854

)

 

$

4.52

 

 

 

 

 

 

 

 

 

Cancelled

 

 

(15

)

 

$

4.26

 

 

 

 

 

 

 

 

 

Options outstanding at June 30, 2018

 

 

2,193

 

 

$

3.88

 

 

 

2.90

 

 

$

8,996

 

Vested and expected to vest at June 30, 2018

 

 

2,193

 

 

$

3.88

 

 

 

2.90

 

 

$

8,996

 

Exercisable at June 30, 2018

 

 

1,980

 

 

$

4.03

 

 

 

2.80

 

 

$

7,781

 

 

Summary of Stock Award Activity

The following table summarizes stock award activity (shares and market value in thousands):

 

 

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

 

 

 

 

 

Granted

 

 

4,595

 

 

$

11.15

 

 

 

 

 

Vested

 

 

(2,956

)

 

$

3.79

 

 

 

 

 

Cancelled

 

 

(539

)

 

$

8.05

 

 

 

 

 

Non-vested stock awards outstanding at June 30, 2018

 

 

7,764

 

 

$

8.60

 

 

$

61,804

 

 

Schedule of PSUs Earned and Vested Based on Stock Price Appreciation (Stock Price PSUs)

 The Stock Price PSUs represent the right to receive a number of shares of common stock up to one and one-third of the target number of Stock Price PSUs. They are earned and vest as follows based on the average adjusted closing stock price of the Company’s common stock for the 90 days ending as of May 4, 2020, subject to the grantees’ continued service through the certification of performance:

Average adjusted closing stock price

  

Shares earned

at least $8.96 but less than $11.63

  

One-third

at least $11.63 but less than $13.15

  

Two-thirds

at least $13.15 but less than $16.56

  

100%

$16.56 or more

  

One and one-third

 

Schedule of PSUs Earned and Vested Based on Total Stockholder Return Relative to S&P Small Cap 600 Capped Information Technology Index (TSR PSUs)

The TSR PSUs represent the right to receive a number of shares of common stock up to 130% of the target number of TSR PSUs. They are earned and vest as follows based on the positive percentage point difference between the Company’s total stockholder return and the total stockholder return for the S&P Small Cap 600 Capped Information Technology Index over the performance period from May 4, 2017 to May 4, 2020, subject to the grantees’ continued service through the certification of performance:

Level

  

Percentage point difference
between Company TSR and
index TSR

 

 

Shares earned

 

Threshold

  

 

0

 

 

0

Target

  

 

+ 25

 

 

100

Maximum

  

 

+ 35

 

 

130

 

Summary of PSUs with Market or Performance Based Conditions Granted

The following table summarizes PSU’s with market or performance based conditions granted and the number of awards that have satisfied the relevant market or performance criteria in each period (in thousands):

 

 

Fiscal year 2018

 

 

Fiscal year 2017

 

 

Fiscal year 2016

 

Performance awards granted

 

 

714

 

 

 

2,106

 

 

 

695

 

Performance awards earned

 

 

566

 

 

 

839

 

 

 

582

 

 

Schedule of Recognized Share-based Compensation Expense

Share-based compensation expense recognized in the financial statements by line item caption is as follows (in thousands):

 

 

Year Ended

 

 

 

June 30,

2018

 

 

June 30,

2017

 

 

June 30,

2016

 

Cost of product revenue

 

$

564

 

 

$

333

 

 

$

882

 

Cost of service revenue

 

 

1,131

 

 

 

589

 

 

 

1,041

 

Research and development

 

 

7,642

 

 

 

3,312

 

 

 

4,559

 

Sales and marketing

 

 

9,843

 

 

 

4,253

 

 

 

4,633

 

General and administrative

 

 

8,453

 

 

 

4,146

 

 

 

3,677

 

Total share-based compensation expense

 

$

27,633

 

 

$

12,633

 

 

$

14,792

 

 

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 2014 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. 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 the historical volatility on the Company’s stock.

The weighted-average estimated per share fair value of shares purchased under the 2014 ESPP in fiscal years 2018, 2017 and 2016, was $3.25, $1.24 and $0.92, respectively.

 

 

Stock Option Plan

 

 

Employee Stock Purchase Plan

 

 

 

Year Ended

 

 

Year Ended

 

 

 

June 30,

2017

 

 

June 30,

2016

 

 

June 30,

2018

 

 

June 30,

2017

 

 

June 30,

2016

 

Expected life

 

4.0 years

 

 

4.2 years

 

 

0.5 years

 

 

0.5 years

 

 

1.2 years

 

Risk-free interest rate

 

 

1.78

%

 

 

1.17

%

 

1.64%–1.15%

 

 

 

0.40

%

 

 

0.33

%

Volatility

 

 

52

%

 

 

50

%

 

 

42

%

 

40%–37%

 

 

 

58

%

Dividend yield

 

 

%

 

 

%

 

 

%

 

 

%

 

 

%