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Share-based Compensation | 9 Months Ended
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Mar. 31, 2015
Share-based Compensation [Abstract] |
Share-based Compensation | Share-based Compensation As of March 31, 2015, the Company had 15,578,378 shares available for issuance, of which 12,000,000 shares are available under the 2014 Employee Stock Purchase Plan ("ESPP"), which was approved by the shareholders on November 12, 2014. There are 66,382 shares available under the 1999 ESPP and 3,511,996 shares available under the 2013 Stock Plan. 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, 2015 |  | March 31, 2014 |  | March 31, 2015 |  | March 31, 2014
Cost of product revenue | $ | 265 |  |  | $ | 268 |  |  | $ | 823 |  |  | $ | 568 |
Cost of service revenue | 254 |  |  | 420 |  |  | 816 |  |  | 623 |
Research and development | 1,423 |  |  | 1,419 |  |  | 4,611 |  |  | 2,559 |
Sales and marketing | 1,291 |  |  | 1,765 |  |  | 4,414 |  |  | 3,614 |
General and administrative | 1,139 |  |  | 970 |  |  | 3,271 |  |  | 2,510 |
Total share-based compensation expense | $ | 4,372 |  |  | $ | 4,842 |  |  | $ | 13,935 |  |  | $ | 9,874 |
The Company did not capitalize any stock-based compensation expense in inventory, as the amounts were immaterial during the three and nine months ended March 31, 2015 and 2014, respectively. Stock Awards Stock awards may be granted under the 2013 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. During the three months ended March 31, 2015, the Company began expensing market-performance based restricted stock units to senior executive officers that had been granted during the second quarter of fiscal 2015. The following table summarizes stock award activity for the nine months ended March 31, 2015:
| Number of Shares (000’s) |  | Weighted- Average Grant- Date Fair Value |  | Aggregate Fair Market Value ($000's)
Non-vested stock outstanding at June 30, 2014 | 6,000 |  |  | $ | 4.98 |  |  |
Granted | 1,305 |  |  | $ | 3.45 |  |  |
Vested | (2,216 | ) |  | $ | 5.09 |  |  | $ | 7,985 |
Cancelled | (409 | ) |  | $ | 4.42 |  |  |
Non-vested stock outstanding at March 31, 2015 | 4,680 |  |  | $ | 4.55 |  |  |
Stock Options The following table summarizes stock option activity under all plans for the nine months ended March 31, 2015.
| 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, 2014 | 11,732 |  |  | $ | 4.26 |  |  | 5.13 |  | $ | 6,846 |
Granted | 1,153 |  |  | $ | 4.11 |  |  |  |  |
Exercised | (425 | ) |  | $ | 3.17 |  |  |  |  | $ | 381 |
Cancelled | (1,245 | ) |  | $ | 5.12 |  |  |  |  |
Options outstanding at March 31, 2015 | 11,215 |  |  | $ | 4.19 |  |  | 4.73 |  | $ | 493 |
Exercisable at March 31, 2015 | 6,047 |  |  | $ | 3.95 |  |  | 3.94 |  | $ | 473 |
Vested and expected to vest at March 31, 2015 | 10,441 |  |  | $ | 4.17 |  |  | 4.66 |  | $ | 489 |
The weighted-average grant-date per share fair value of options granted was $1.34 and $2.71 during the three months ended March 31, 2015 and 2014, respectively. The weighted-average grant-date per share fair value of options granted was $1.91 and $2.39 during the nine months ended March 31, 2015 and 2014, respectively. The Company uses the Monte-Carlo simulation model to determine the fair value and the derived service period o performance-based option awards, with market conditions, on the date of the grant. ESPP The weighted-average estimated per share fair value of shares purchased under the Company’s ESPP was $0.59 and $1.62 during the three months ended March 31, 2015 and 2014, respectively. The weighted-average estimated per share fair value of shares purchased under the Company’s ESPP was $1.02 and $1.44 during the nine months ended March 31, 2015 and 2014, respectively. Excluding the options assumed as part of the Enterasys acquisition, 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.
| 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, 2015 |  | March 31, 2014 |  | March 31, 2015 |  | March 31, 2014 |  | March 31, 2015 |  | March 31, 2014 |  | March 31, 2015 |  | March 31, 2014
Expected life | 4.6 years |  |  | 5.0 years |  |  | 0.50 years |  |  | 0.25 years |  |  | 4.7 years |  |  | 4.0 years |  |  | 0.33 years |  |  | 0.25 years |
Risk-free interest rate | 1.49 | % |  | 1.41 | % |  | 0.07 | % |  | 0.09 | % |  | 1.60 | % |  | 1.23 | % |  | 0.04 | % |  | 0.10 | %
Volatility | 54 | % |  | 57 | % |  | 58 | % |  | 57 | % |  | 54 | % |  | 56 | % |  | 58 | % |  | 51 | %
Dividend yield | — | % |  | — | % |  | — | % |  | — | % |  | — | % |  | — | % |  | — | % |  | — | %

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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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