Shareholders' Equity and Share-based Compensation

Share Repurchase

In April 2015, the Board of Directors approved an increase in the remaining available amount under the Company’s then effective share repurchase program from approximately $17.8 million to $50.0 million. The repurchases may be made from the open market pursuant to a pre-established Rule 10b5-1 trading plan (as amended, the "Repurchase Trading Plan") or through privately negotiated transactions.

In July 2015, the Company completed a Dutch tender offer (the "Tender Offer") in which it purchased 3,296,703 shares of its common shares, at a purchase price of $9.10 per share, for an aggregate purchase price of $30.0 million, excluding fees and expenses relating to the Tender Offer. The Tender Offer was part of the $50.0 million share repurchase program approved by the Board on April 15, 2015. Shares repurchased are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity.

During the nine months ended March 31, 2017, the Company did not repurchase any shares pursuant to the repurchase program. Since the inception of the program in 2010, the Company repurchased an aggregate of 5,723,093 shares from the open market including shares purchased in the Tender Offer for a total cost of $50.8 million, at an average price of $8.87 per share, excluding fees and related expenses. No repurchased shares have been retired. Of the 5,723,093 repurchased shares, 110,153 shares with a weighted average repurchase price of $10.98 per share, were reissued at an average price of $5.79 per share pursuant to option exercises and vested restricted share units. As of March 31, 2017, $6.4 million remained available under the share repurchase program.

Stock Options

The Company did not grant any stock options during the nine months ended March 31, 2017. Options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options.

The following table summarizes the Company's stock option activities for the nine months ended March 31, 2017:



					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise Price		Contractual	Aggregate
	Shares		Per Share		Term (in years)	Intrinsic Value
Outstanding at June 30, 2016	1,859,260		$	11.37	4.71	$	5,959,720
Granted	—		$	—
Exercised	(657,469	)	$	11.85		$	5,382,647
Canceled or forfeited	(112,500	)	$	12.72
Outstanding at March 31, 2017	1,089,291		$	10.95	4.63	$	6,932,190
Options vested and expected to vest	1,082,604		$	10.97	4.62	$	6,868,038
Exercisable at March 31, 2017	948,874		$	11.45	4.33	$	5,580,467

Restricted Stock Units ("RSU")

The following table summarizes the Company's RSU activities for the nine months ended March 31, 2017:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2016	933,063		$	9.18	1.73	$	12,997,568
Granted	605,043		$	18.10
Vested	(328,226	)	$	7.84
Forfeited	(21,725	)	$	12.38
Nonvested at March 31, 2017	1,188,155		$	14.04	1.95	$	20,424,384
RSUs vested and expected to vest	988,787				1.84	$	16,997,248

The fair value of RSU is estimated based on the market price of the Company's share on the date of grant.

In March 2017, the Company granted certain performance-based RSUs (“PRSUs”) to its key personnel. The number shares of PRSU were determined based on the level of attainment of predetermined financial goals. The PRSU will vest in four equal annual installments from March 15, 2018 if certain predetermined financial goals were met. The Company recorded approximately $68,000 of expenses for these PRSUs in the three and nine months ended March 31, 2017 based on 170,000 PRSU grants.

Employee Share Purchase Plan ("ESPP")

The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:




	Nine Months Ended March 31,
	2017
Volatility rate	39.09%
Risk-free interest rate	0.6% - 1.0%
Expected term	1.3 years
Dividend yield	0%

Share-based Compensation Expense

The total share-based compensation expense related to stock options, RSUs and ESPP described above, recognized in the condensed consolidated statements of operations for the periods presented was as follows:



	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2016		2017		2016
	(in thousands)				(in thousands)
Cost of goods sold	$	222	$	187	$	622	$	475
Research and development	395		309		1,138		766
Selling, general and administrative	1,098		677		2,825		1,806
	$	1,715	$	1,173	$	4,585	$	3,047

As of March 31, 2017, total unrecognized compensation cost under the Company's equity plans was $10.8 million, which is expected to be recognized over a weighted-average period of 1.9 years.