XML 45 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Share-based Compensation | 9 Months Ended
--- | ---
Mar. 31, 2013
Share-based Compensation [Abstract] |
Share-based Compensation | Share-based Compensation Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands):
| Three Months Ended |  | Nine Months Ended
| March 31, 2013 |  | April 1, 2012 |  | March 31, 2013 |  | April 1, 2012
Cost of product revenue | $ | 118 |  |  | $ | 81 |  |  | $ | 413 |  |  | $ | 372 |
Cost of service revenue | 61 |  |  | 59 |  |  | 304 |  |  | 203 |
Research and development | 268 |  |  | 289 |  |  | 988 |  |  | 1,041 |
Sales and marketing | 756 |  |  | 487 |  |  | 2,051 |  |  | 1,306 |
General and administrative | 638 |  |  | 560 |  |  | 1,869 |  |  | 1,730 |
Total share-based compensation expense | $ | 1,841 |  |  | $ | 1,476 |  |  | $ | 5,625 |  |  | $ | 4,652 |
During the three and nine months ended March 31, 2013 and April 1, 2012, the Company did not capitalize any stock-based compensation expense in inventory, as the amounts were immaterial. The income tax benefit for share-based compensation expense was immaterial in the three and nine months ended March 31, 2013 and April 1, 2012. The weighted-average grant-date per share fair value of options granted during the three months ended March 31, 2013 and April 1, 2012 were $1.72 and $1.58, respectively. The weighted-average estimated per share fair value of shares purchased under the Company’s 1999 Employee Stock Purchase Plan (“ESPP”) during the three months ended March 31, 2013 and April 1, 2012 were $0.86 and $1.05, respectively. The weighted-average grant-date per share fair value of options granted during the nine months ended March 31, 2013 and April 1, 2012 were $2.71 and $1.65, respectively. The weighted-average estimated per share fair value of shares purchased under the ESPP during the nine months ended March 31, 2013 and April 1, 2012 were $0.88 and $1.01, respectively. The following table summarizes stock option activity under all plans for the nine months ended March 31, 2013:
| Number of Shares (000’s) |  | Weighted- Average Exercise Price Per Share |  | Weighted- Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value (000’s)
Options outstanding at June 30, 2012 | 9,006 |  |  | $ | 3.68 |  |  |  |  |
Granted | 2,214 |  |  | $ | 3.50 |  |  |  |  |
Exercised | (689 | ) |  | $ | 2.83 |  |  |  |  | $ | 499 |
Cancelled | (1,113 | ) |  | $ | 3.78 |  |  |  |  |
Options outstanding at March 31, 2013 | 9,418 |  |  | $ | 3.69 |  |  | 4.69 |  | $ | 1,497 |
Exercisable at March 31, 2013 | 5,622 |  |  | $ | 3.88 |  |  | 3.87 |  | $ | 1,260 |
Vested and expected to vest at March 31, 2013 | 8,986 |  |  | $ | 3.70 |  |  | 4.62 |  | $ | 1,478 |
Stock Awards Stock awards may be granted under the 2005 Plan on terms approved by the Board of Directors. Stock awards generally provide for the issuance of restricted stock which vests over a fixed period. The following table summarizes stock award activity for the nine months ended March 31, 2013:
| Number of Shares (000’s) |  | Weighted- Average Grant- Date Fair Value |  | Aggregate Fair Market Value ($000's)
Non-vested stock outstanding at June 30, 2012 | 1,078 |  |  | $ | 2.35 |  |  |
Granted | 3,199 |  |  | $ | 3.49 |  |  |
Vested | (774 | ) |  | $ | 3.40 |  |  | $ | 2,625 |
Cancelled | (273 | ) |  | $ | 3.43 |  |  |
Non-vested stock outstanding at March 31, 2013 | 3,230 |  |  | $ | 3.14 |  |  |
The fair value of each option award and share purchase option under the Company's ESPP is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The expected term of ESPP represents the contractual life of the ESPP purchase period. The risk-free rate based upon the estimated life of the option and ESPP is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on both the implied volatilities from traded options on the Company’s stock and historical volatility on the Company’s stock.
| Stock Option Plan |  | Employee Stock Purchase Plan |  | Stock Option Plan |  | Employee Stock Purchase Plan
| Three Months Ended |  | Three Months Ended |  | Nine Months Ended |  | Nine Months Ended
| March 31, 2013 |  | April 1, 2012 |  | March 31, 2013 |  | April 1, 2012 |  | March 31, 2013 |  | April 1, 2012 |  | March 31, 2013 |  | April 1, 2012
Expected life | 4.2 years |  |  | 5 years |  |  | 0.25 years |  |  | 0.25 years |  |  | 4.5 years |  |  | 5 years |  |  | 0.25 years |  |  | 0.25 years |
Risk-free interest rate | 0.72 | % |  | 0.88 | % |  | 0.10 | % |  | 0.13 | % |  | 0.71 | % |  | 1.07 | % |  | 0.07 | % |  | 0.07 | %
Volatility | 62 | % |  | 64 | % |  | 42 | % |  | 54 | % |  | 60 | % |  | 60 | % |  | 53 | % |  | 65 | %
Dividend yield | — | % |  | — | % |  | — | % |  | — | % |  | — | % |  | — | % |  | — | % |  | — | %
The Company is required to estimate the expected forfeiture rate and only recognize expense on a straight-line method for those shares expected to vest.

X
- 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 SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 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 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: 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 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration