Shareholders' Equity and Share-based Compensation

Share Repurchase

In September 2017, the Board of Directors terminated the repurchase program that was previously approved in 2015 and approved a new repurchase program (the “Repurchase Program”), which allows the Company to repurchase its common shares from the open market pursuant to a pre-established Rule 10b5-1 trading plan or through privately negotiated transactions up to an aggregate of $30.0 million. The amount and timing of any repurchases under the Repurchase Program depend on a number of factors, including but not limited to, the trading price, volume and availability of the Company's common shares. Shares repurchased under this program are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity.

During the nine months ended March 31, 2018, the Company repurchased an aggregate of 748,936 shares from the open market, for a total cost of $12.0 million, at an average price of $16.01 per share. Since the inception of the prior repurchase program in 2010, the Company repurchased an aggregate of 6,472,029 shares from the open market including shares purchased in a dutch tender offer for a total cost of $62.8 million, at an average price of $9.70 per share, excluding fees and related expenses. No repurchased shares have been retired. Of the 6,472,029 repurchased shares, 132,353 shares with a weighted average repurchase price of $10.50 per share, were reissued at an average price of $5.83 per share pursuant to option exercises and vested restricted share units. As of March 31, 2018, approximately $18.0 million remained available under the Repurchase Program.

Stock Options

The Company did not grant any stock options during the nine months ended March 31, 2018. The number of options expected to vest is the result of applying the pre-vesting forfeiture rate assumption to total outstanding options.

The following table summarizes the Company's stock option activities for the nine months ended March 31, 2018:



					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise Price		Contractual	Aggregate
	Shares		Per Share		Term (in years)	Intrinsic Value
Outstanding at June 30, 2017	1,053,367		$	10.98	4.43	$	6,212,660
Exercised	(133,514	)	$	10.90		$	818,624
Outstanding at March 31, 2018	919,853		$	10.99	4.19	$	4,521,710
Options vested and expected to vest	919,821		$	10.99	4.19	$	4,521,497
Exercisable at March 31, 2018	916,936		$	11.00	4.19	$	4,502,312

Restricted Stock Units ("RSUs")

The following table summarizes the Company's RSU activities for the nine months ended March 31, 2018:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2017	1,144,865		$	14.11	1.76	$	19,084,900
Granted	745,071		$	16.40
Vested	(473,657	)	$	13.58
Forfeited	(63,403	)	$	14.04
Nonvested at March 31, 2018	1,352,876		$	15.56	1.95	$	20,901,934
RSUs vested and expected to vest	1,177,238				1.87	$	18,188,334

The fair value of RSU is based on the market price of the Company's share on the date of grant.

In March 2017 and 2018, the Company granted 170,000 and 298,000 performance-based RSUs (“PRSUs”) to its certain personnel. The number shares to be issued under the PRSU are determined based on the level of attainment of predetermined financial goals. The PRSU vests in four equal annual installments from the first anniversary date after the grant date if certain predetermined financial goals were met. The Company recorded approximately $0.4 million and $1.1 million of expenses for these PRSUs during the three and nine months ended March 31, 2018, and approximately $68,000 of such expenses in the three and nine months ended March 31, 2017.

The Board previously approved the incentive cash bonus plan (the “Plan”) for the calendar year commencing January 1, 2017 pursuant to which each executive officer of the Company who continues in service through the end of the calendar year would be eligible to receive an incentive award, payable solely in cash, based on the level of attainment of certain specified Company performance goals. On November 15, 2017, the Board approved an amendment to the Plan that permits the Company to pay up to 50% of such incentive awards in common shares of the Company. The Company recorded $1.3 million of such RSUs expenses during the nine months ended March 31, 2018.

Employee Share Purchase Plan ("ESPP")

The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:




	Nine Months Ended March 31,
	2018
Volatility rate	45.32%
Risk-free interest rate	1.4% - 1.7%
Expected term	1.3 years
Dividend yield	0%

Share-based Compensation Expense

The total share-based compensation expense related to stock options, RSUs and ESPP described above, recognized in the condensed consolidated statements of operations for the periods presented was as follows:



	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
	(in thousands)				(in thousands)
Cost of goods sold	$	449	$	222	$	1,180	$	622
Research and development	361		395		1,340		1,138
Selling, general and administrative	1,650		1,098		5,957		2,825
	$	2,460	$	1,715	$	8,477	$	4,585

As of March 31, 2018, total unrecognized compensation cost under the Company's equity plans was $15.6 million, which is expected to be recognized over a weighted-average period of 1.8 years.