Share-Based Compensation

3 Months Ended

Sep. 30, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

(3) Share-Based Compensation

The Company maintains a share-based compensation plan, the 2010 Employee, Director and Consultant Equity Incentive Plan (the "2010 Plan"), that has been approved by the Company's shareholders. The 2010 Plan allows the Company, under the direction of the Compensation Committee of the Board of Directors, to make grants of stock options, restricted and unrestricted stock awards and other stock-based awards to employees, consultants and directors. As of September 30, 2011, a total of 16,875,526 shares of common stock are reserved for issuance under the 2010 Plan. This number consists of 3,500,000 shares approved by the Company's stockholders in 2010 and 678,654 shares transferred into the 2010 Plan which were cancelled or expired under the Company's 2003 Employee, Director and Consultant Option Plan (the "2003 Plan") and 2002 Amended and Restated Employee, Director and Consultant Stock Option Plan (the "2002 Plan"). In addition, as of September 30, 2011, the Company may grant up to 12,696,202 additional shares under the 2010 Plan if options previously granted under the 2002 Plan or 2003 Plan are cancelled or expire in the future without the issuance of shares of common stock by the Company.

The number of shares, terms, and vesting period of awards under the 2010 Plan are determined by the Compensation Committee of the Board of Directors for each equity award. Options under the plans generally vest ratably over four years and expire ten years from the date of grant. The exercise price of options granted is equivalent to the fair market value of the stock on the date of grant. The Company also has an Employee Stock Purchase Plan ( the "Purchase Plan") under which 2,000,000 shares of common stock have been authorized and, as of September 30, 2011, a total of 1,746,000 shares of common stock had been purchased under the Purchase Plan. Shares purchased under the Purchase Plan are issued twice yearly at the end of each six month offering period. During the three months ended September 30, 2011, the Company issued no shares of common stock under the Purchase Plan.

A summary of the stock option activity under the plans for the three months ended September 30, 2011 is as follows:

	Number of shares			Weighted average exercise price
Options outstanding at June 30, 2011		14,443,733		$	18.22
Options granted		2,351,290			19.47
Less:
Options exercised		(70,067	)		12.05
Options canceled or expired		(156,384	)		20.16
Options outstanding at September 30, 2011		16,568,572			18.40

As of September 30, 2011, options to purchase 8,879,000 shares were vested and exercisable at a weighted average price of $16.35. As of September 30, 2011, there was $45,995,000 of total unrecognized share-based compensation cost related to share-based awards granted under the Company's plans that will be recognized over a weighted-average period of 2.8 years.

Share-based compensation expense recognized and included in the consolidated income statements was allocated as follows (in thousands):

	Three months ended Sep. 30,
	2011		2010
Molecular diagnostic cost of revenue	$	301	$	298
Research and development expense		1,034		1,050
Selling, general, and administrative expense		5,329		5,025
Total share-based compensation expense	$	6,664	$	6,373