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STOCK BASED COMPENSATION | 12 Months Ended
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Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION Stock-Based Compensation Plans 2010 Equity Incentive Plan In March 2010, the Company’s board of directors and stockholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan replaced the 2005 Equity Incentive Plan (the “2005 Plan”), and no further awards will be granted pursuant to the 2005 Plan. Under the terms of the 2010 Plan, nonstatutory stock options, stock appreciation rights, restricted stock, and restricted stock units (“RSUs”) may be granted to employees or non-employee service providers. Incentive stock options may be granted only to employees. The maximum aggregate number of shares that may be awarded under the 2010 Plan as of June 30, 2014 was 8,000,000 shares, plus any shares subject to stock options or similar awards granted under the 2005 Plan that expire or otherwise terminate without having been exercised in full and shares issued pursuant to awards granted under the 2005 Plan that are forfeited to (but not repurchased by) the Company. The 2010 Plan is administered by the board of directors or a committee of the Company’s board of directors. Subject to the terms and conditions of the 2010 Plan, the administrator has the authority to select the persons to whom awards are to be made, to determine the number of shares to be subject to awards and the terms and conditions of awards, and to make all other determinations and to take all other actions necessary or advisable for the administration of the 2010 Plan. The administrator is also authorized to adopt, amend or rescind rules relating to administration of the 2010 Plan. Options and RSUs generally vest over a four year period from the date of grant and generally expire five to ten years from the date of grant. The terms of the 2010 Plan provide that an option price shall not be less than 100% of fair market value on the date of grant. 2005 Equity Incentive Plan With the adoption of the 2010 Plan, no additional awards may be granted under the 2005 Plan. In February 2005, the Company’s board of directors and the stockholders approved the 2005 Plan, which was amended and restated in March 2006. The 2005 Plan provided for the issuance of stock options, restricted stock and stock bonuses to employees, consultants, advisors, directors and officers of the Company. The terms of the options granted under the 2005 Plan were determined at the time of grant. The Company made use of different vesting schedules through fiscal 2009, but subsequent new grants generally vested as to 25% on the first anniversary of the date of grant and monthly thereafter over the next three years and generally have a term of 10 years from the date of grant. As of June 30, 2014, the Company had 9,918,184 authorized shares available for future issuance under all of its stock incentive plans. Stock-based Compensation The following table shows total stock-based compensation expense included in the Consolidated Statements of Operations and Comprehensive Income for fiscal 2014, 2013 and 2012 (in thousands):
| Years Ended Years Ended June 30,
| 2014 |  | 2013 |  | 2012
Cost of sales | $ | 590 |  |  | $ | 446 |  |  | $ | 117 |
Research and development | 2,423 |  |  | 1,433 |  |  | 542 |
Sales, general and administrative | 1,893 |  |  | 1,497 |  |  | 834 |
| $ | 4,906 |  |  | $ | 3,376 |  |  | $ | 1,493 |
Stock Options The following is a summary of option activity for the Company’s stock incentive plans for fiscal 2014, 2013 and 2012:
| Common Stock Options Outstanding
| Number of Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (Years) |  | Aggregate Intrinsic Value
|  |  |  |  |  |  | (In thousands)
Balance, June 30, 2011 | 6,171,707 |  |  | $ | 0.72 |  |  | 6.44 |  | $ | 43,135 |
Granted | 161,000 |  |  | 10.44 |  |  |  |  |
Exercised | (2,885,470 | ) |  | 0.28 |  |  |  |  |
Forfeitures and cancellations | (99,792 | ) |  | 4.71 |  |  |  |  |
Balance, June 30, 2012 | 3,347,445 |  |  | $ | 1.45 |  |  | 6.62 |  | $ | 42,920 |
Granted | 683,500 |  |  | 11.29 |  |  |  |  |
Exercised | (266,558 | ) |  | 2.39 |  |  |  |  |
Forfeitures and cancellations | (150,125 | ) |  | 5.68 |  |  |  |  |
Balance, June 30, 2013 | 3,614,262 |  |  | $ | 3.07 |  |  | 6.17 |  | $ | 52,330 |
Exercised | (849,635 | ) |  | 2.46 |  |  |  |  |
Forfeitures and cancellations | (107,485 | ) |  | 10.55 |  |  |  |  |
Balance, June 30, 2014 | 2,657,142 |  |  | $ | 2.96 |  |  | 5.11 |  | $ | 112,215 |
Vested and expected to vest as of June 30, 2014 | 2,635,599 |  |  | $ | 2.89 |  |  | 5.09 |  | $ | 111,482 |
Vested and exercisable as of June 30, 2014 | 2,233,533 |  |  | $ | 1.60 |  |  | 4.56 |  | $ | 97,363 |
Additional information regarding options outstanding as of June 30, 2014 is as follows (in thousands, except weighted average exercise price amounts and contractual life):
|  | Options Outstanding |  |  |  | Options Exercisable
Range of Exercise Prices |  | Number of Options |  | Weighted Average Remaining Contractual Life (Years) |  | Weighted Average Exercise Price |  | Number of Options |  | Weighted Average Exercise Price
$0.01 - $0.04 |  | 75,270 |  |  | 3.17 |  | $ | 0.01 |  |  | 75,270 |  |  | $ | 0.01 |
$0.05 - $0.39 |  | 1,594,890 |  |  | 3.78 |  | 0.05 |  |  | 1,594,890 |  |  | 0.05 |
$0.40 - $5.11 |  | 370,220 |  |  | 6.28 |  | 3.07 |  |  | 319,027 |  |  | 2.99 |
$5.12 - $10.76 |  | 124,817 |  |  | 6.98 |  | 6.95 |  |  | 74,886 |  |  | 7.00 |
$10.77 - $11.74 |  | 321,500 |  |  | 8.37 |  | 10.77 |  |  | 107,537 |  |  | 10.77 |
$11.75 - $18.48 |  | 163,267 |  |  | 8.41 |  | 13.30 |  |  | 58,105 |  |  | 13.36 |
$18.49 - $18.70 |  | 2,907 |  |  | 7.51 |  | 18.49 |  |  | 1,406 |  |  | 18.49 |
$18.71 - $19.98 |  | 1,000 |  |  | 7.36 |  | 18.71 |  |  | 645 |  |  | 18.71 |
$19.99 - $26.28 |  | 3,271 |  |  | 7.48 |  | 21.43 |  |  | 1,767 |  |  | 21.17 |
$0.01 – $26.28 |  | 2,657,142 |  |  | 5.11 |  | $ | 2.96 |  |  | 2,233,533 |  |  | $ | 1.60 |
During fiscal 2014 and 2013 and 2012, the aggregate intrinsic value of options exercised under the Company’s stock incentive plans was $30.5 million, $3.4 million, and $48.6 million, respectively, as determined as of the date of option exercise. As of June 30, 2014, the Company had unrecognized compensation cost of $2.0 million related to stock options which the Company expects to recognize over a weighted-average period of 2.2 years. Future option grants will increase the amount of compensation expense to be recorded in these periods. The Company estimates the fair value of employee stock options using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The Company did not grant any stock options during fiscal 2014. For fiscal 2013 and 2012 the fair value of employee stock options was estimated using the following weighted average assumptions:
| Years Ended Years Ended June 30,
| 2013 |  | 2012
Expected term | 6.1 years |  |  | 6.1 years |
Expected volatility | 52 | % |  | 49 | %
Risk-free interest rate | 0.9 | % |  | 1.6 | %
Expected dividend yield | — |  |  | — |
Weighted average grant date fair value | $ | 5.57 |  |  | $ | 5.05 |
Expected term. Expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As the Company has limited historical option exercise data, the expected term of the stock options granted to employees was calculated based on the simplified method. Under the simplified method, the expected term is equal to the average of an option’s weighted-average vesting period and its contractual term. The Company is permitted to continue using the simplified method until sufficient information regarding exercise behavior, such as historical exercise data or exercise information from external sources, becomes available. Expected volatility. The expected volatility was based on the historical stock volatilities of a group of publicly listed comparable companies over a period equal to the expected terms of the options, as the Company does not have any trading history to use the volatility of its common stock. Expected dividend yield. Although the Company paid a special cash dividend during fiscal 2013, the Company does not currently plan to pay dividends on its common stock. Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term. Fair value of common stock. The Company’s common stock began trading on the NASDAQ Global Select Market on October 14, 2011, upon its initial public offering. The fair value of the Company’s common stock is determined using the market price of the Company’s common stock as of the date of grant. Prior to October 14, 2011, the fair value of the shares of common stock underlying the stock options has historically been the responsibility of and determined by the Company’s board of directors. Because there had been no public market for the Company’s common stock, its board of directors has determined fair value of the common stock at the time of grant of the option by considering a number of objective and subjective factors including independent third-party valuations of its common stock, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, amongst other factors. Forfeiture rate. The Company estimates its forfeiture rate based on an analysis of its actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior and other factors. The impact from a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual number of future forfeitures differs from that estimated, the Company may be required to record adjustments to stock-based compensation expense in future periods. Cash received from stock option exercises during the fiscal 2014, 2013 and 2012 was $2.1 million, $635,000 and $811,000, respectively. Restricted Stock Units (“RSUs”) The following table summarizes the activity of the RSUs made by the Company:
| Number of Shares |  | Weighted Average Grant Date Fair Value
Non-vested RSUs, June 30, 2011 | 488,385 |  |  | $ | 2.66 |
RSUs granted | 169,710 |  |  | 22.33 |
RSUs vested | (146,475 | ) |  | 2.37 |
RSUs canceled | (58,000 | ) |  | 8.04 |
Non-vested RSUs, June 30, 2012 | 453,620 |  |  | $ | 9.42 |
RSUs granted | 656,500 |  |  | 14.11 |
RSUs vested | (70,512 | ) |  | 14.14 |
RSUs canceled | (294,702 | ) |  | 5.29 |
Non-vested RSUs, June 30, 2013 | 744,906 |  |  | $ | 14.74 |
RSUs granted | 209,032 |  |  | 37.87 |
RSUs vested | (170,197 | ) |  | 15.59 |
RSUs canceled | (234,039 | ) |  | 16.18 |
Non-vested RSUs, June 30, 2014 | 549,702 |  |  | $ | 22.65 |
The intrinsic value of RSUs vested in fiscal 2014, 2013 and 2012 was $6.1 million, $1.0 million and $3.5 million, respectively. The total intrinsic value of all outstanding RSUs was $24.8 million as of June 30, 2014. As of June 30, 2014, there was unrecognized compensation costs related to RSUs of $9.6 million which the Company expects to recognize over a weighted average period of 3.2 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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