Shareholders' Equity and Share-based Compensation | 9 Months Ended |
Mar. 31, 2014 |
Share-based Compensation [Abstract] | ' |
Shareholders' Equity and Share-based Compensation | ' |
Shareholders' Equity and Share-based Compensation |
Share Repurchase |
On October 22, 2010, the Company's Board of Directors authorized a $25.0 million share repurchase program. Under this repurchase program the Company may, from time to time, repurchase shares from the open market or in privately negotiated transactions, subject to supervision and oversight by the Board. The Company accounts for treasury stock under the cost method. Shares repurchased are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. From time to time, treasury shares may be reissued as part of the Company's stock-based compensation programs. Gains on re-issuance of treasury stock are credited to additional paid-in capital; losses are charged to additional paid-in capital to offset the net gains, if any, from previous sales or re-issuance of treasury stock. Any remaining balance of the losses are charged to retained earnings. |
During the three and nine months ended March 31, 2014, the Company did not repurchased any shares under the program. During the three and nine months ended March 31, 2014, the Company reissued 2,900 and 5,850 shares, respectively, with weighted average repurchase cost of $13.82 per share for both periods, upon vesting of certain restricted stock units ("RSU"). |
On or about May 5, 2014, the Company's Board of Directors approved to reactivate the share repurchase program with a remaining balance of $22.7 million. |
Stock Options |
The following table summarizes the Company's stock option activities for the nine months ended March 31, 2014: |
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| | | Weighted | | | | | | | |
| | | Average | | | | | | | |
| Number of | | Exercise Price | | Aggregate | | | | | |
| Shares | | Per Share | | Intrinsic Value | | | | | |
Outstanding at June 30, 2013 | 3,593,854 | | | $ | 10.24 | | | $ | 3,144,506 | | | | | | |
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Granted | 734,375 | | | $ | 7.45 | | | | | | | | |
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Exercised | (255,471 | ) | | $ | 1.82 | | | $ | 1,435,044 | | | | | | |
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Canceled or forfeited | (633,421 | ) | | $ | 11.92 | | | | | | | | |
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Outstanding at March 31, 2014 | 3,439,337 | | | $ | 9.96 | | | $ | 1,542,180 | | | | | | |
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Information with respect to stock options outstanding and exercisable at March 31, 2014 is as follows: |
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| Options Outstanding | | Options Vested and Exercisable |
| Number Outstanding | | Weighted-Average | | Weighted-Average | | Number Exercisable | | Weighted-Average |
Remaining Contractual Life (years) | Exercise Price | Exercise Price |
Total options outstanding | 3,439,337 | | | 5.88 | | $ | 9.96 | | | 2,335,327 | | | $ | 10.43 | |
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Options vested and expected to vest | 3,333,914 | | | 5.77 | | $ | 10.02 | | | | | |
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Options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options. |
The fair value of stock options granted were estimated at the date of grant using the Black-Scholes option valuation model for the nine months ended March 31, 2014 with the following weighted average assumptions: |
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| Nine Months Ended March 31, | | | | | | | | | | | | | | |
| 2014 | | | | | | | | | | | | | | |
Volatility rate | 47% | | | | | | | | | | | | | | |
Risk-free interest rate | 1.6% - 1.7% | | | | | | | | | | | | | | |
Expected term | 5.5 years | | | | | | | | | | | | | | |
Dividend yield | 0% | | | | | | | | | | | | | | |
Restricted Stock Units ("RSU") |
The following table summarizes the Company's RSU activities for the nine months ended March 31, 2014: |
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| Number of Restricted Stock | | Weighted Average | | Weighted Average | | Aggregate Intrinsic Value | | | |
Units | Grant Date Fair | Remaining | | | |
| Value Per Share | Recognition | | | |
| | Period (Years) | | | |
Nonvested at June 30, 2013 | 549,553 | | | $ | 9.5 | | | 1.87 | | $ | 4,198,585 | | | | |
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Granted | 338,554 | | | $ | 7.48 | | | | | | | | |
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Vested | (122,963 | ) | | $ | 9.5 | | | | | | | | |
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Forfeited | (98,102 | ) | | $ | 9.71 | | | | | | | | |
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Nonvested at March 31, 2014 | 667,042 | | | $ | 8.44 | | | 1.95 | | $ | 4,909,429 | | | | |
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RSUs vested and expected to vest | 593,184 | | | | | 1.88 | | $ | 4,365,832 | | | | |
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The fair value of RSU is estimated based on the market price of the Company's share on the date of grant. |
Employee Share Purchase Plan |
The Employee Share Purchase Plan (the "ESPP") was established in May 2010 upon the completion of the Company's initial public offering. The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows: |
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| Nine Months Ended March 31, | | | | | | | | | | | | | | |
| 2014 | | | | | | | | | | | | | | |
Volatility rate | 50% | | | | | | | | | | | | | | |
Risk-free interest rate | 0.1% - 0.3% | | | | | | | | | | | | | | |
Expected term | 1.3 years | | | | | | | | | | | | | | |
Dividend yield | 0% | | | | | | | | | | | | | | |
Share-based Compensation Expense |
The total share-based compensation expense related to stock options, ESPP and RSUs described above, recognized in the condensed consolidated statements of operations for the periods presented was as follows: |
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| Three Months Ended March 31, | | Nine Months Ended March 31, |
| 2014 | | 2013 | | 2014 | | 2013 |
| (in thousands) | | (in thousands) |
Cost of goods sold | $ | 119 | | | $ | 191 | | | $ | 457 | | | $ | 530 | |
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Research and development | 221 | | | 353 | | | 484 | | | 1,024 | |
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Selling, general and administrative | 521 | | | 678 | | | 1,234 | | | 2,022 | |
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| $ | 861 | | | $ | 1,222 | | | $ | 2,175 | | | $ | 3,576 | |
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Total unrecognized stock-based compensation expense as of March 31, 2014 was $6.8 million, which includes estimated forfeitures and is expected to be recognized over a weighted-average period of 1.7 years. |