Stock-based Compensation (Tables)

9 Months Ended

Mar. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of assumptions used to estimate fair value of stock options granted using Black-Scholes option pricing model

The fair value of stock option grants for the three and nine months ended March 31, 2019 and 2018 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:



	Three Months Ended March 31,						Nine Months Ended March 31,
	2019			2018			2019			2018
Risk-free interest rate	2.56		%	2.47		%	2.56% - 2.97%			1.92% - 2.47%
Expected term	6.05 years			5.82 years			6.05 years			5.82 years
Dividend yield	—		%	—		%	—		%	—		%
Volatility	50.25		%	47.39		%	47.34% - 50.25%			45.32% - 48.07%
Weighted-average fair value	$	7.55		$	10.79		$	8.56		$	11.45

Schedule of stock-based compensation expense

The following table shows total stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended March 31, 2019 and 2018 (in thousands):



	Three Months Ended March 31,						Nine Months Ended March 31,
	2019			2018			2019			2018
Cost of sales	$	390		$	449		$	1,256		$	1,362
Research and development	3,107			3,494			9,816			10,412
Sales and marketing	418			482			1,359			1,545
General and administrative	1,045			1,663			3,650			5,330
Stock-based compensation expense before taxes	4,960			6,088			16,081			18,649
Income tax impact	(1,016		)	(1,506		)	(3,339		)	(5,385		)
Stock-based compensation expense, net	$	3,944		$	4,582		$	12,742		$	13,264

Summary of stock option activity

The following table summarizes stock option activity during the nine months ended March 31, 2019 under all plans:



	Options Outstanding		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in Years)
Balance as of June 30, 2018	8,301,138		$	16.50
Granted	321,920		$	17.24
Exercised	—		$	—
Forfeited/Cancelled	(1,110,289	)	$	9.61
Balance as of March 31, 2019	7,512,769		$	17.55	3.84
Options vested and exercisable at March 31, 2019	6,769,528		$	17.13	3.32

Summary of restricted stock unit activity

The following table summarizes RSUs and PRSUs activity during the nine months ended March 31, 2019 under all plans:



	Time-Based RSUs Outstanding		Weighted Average Grant-Date Fair Value per Share		PRSUs Outstanding		Weighted Average Grant-Date Fair Value per Share
Balance as of June 30, 2018	1,480,605		$	23.34	120,000	(1)	$	27.10
Granted	738,880		$	16.46	—
Released (2)	(439,379	)	$	24.83	—
Forfeited	(114,018	)	$	20.76	—
Balance as of March 31, 2019	1,666,088		$	20.08	120,000		$	27.10

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(1)	Reflects the number of PRSUs that have been earned based on the achievement of performance metrics.


(2)	The number of shares released excludes 101,952 RSUs that were vested but not released as of March 31, 2019. The number of shares released excludes 78,000 PRSUs that were vested but not released as of March 31, 2019, of which 60,000 PRSUs were vested as of June 30, 2018. These vested RSUs and PRSUs will be released upon the effectiveness of the Company's Registration Statement on Form S-8.