On March 2, 2021, our board of directors authorized the repurchase of up to $100.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions. During fiscal 2021, we repurchased 3,380,447 shares of our common stock for $60.0 million under this authorization. During the three months ended July 31, 2021, we completed this stock repurchase program by repurchasing 1,967,420 shares of our common stock for $40.0 million, utilizing cash on hand. On June 15, 2021, our board of directors authorized the repurchase of an additional $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions, valid through August 2022. As of July 31, 2021, there were no purchases under this authorization.

The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended July 31, 2021 and 2020 (in thousands, except per share data):


	For the Three Months Ended July 31,
	2021		2020
Net income
Income from continuing operations	$	76,882	$	43,301
Income from discontinued operations		—		5,084
Net income	$	76,882	$	48,385
Weighted average shares outstanding — Basic		48,394		55,494
Effect of dilutive stock awards		656	783
Weighted average shares outstanding — Diluted		49,050		56,277
Earnings per share — Basic
Income from continuing operations	$	1.59	$	0.78
Income from discontinued operations	—		$	0.09
Net income	$	1.59	$	0.87
Earnings per share — Diluted
Income from continuing operations	$	1.57	$	0.77
Income from discontinued operations	—		$	0.09
Net income	$	1.57	$	0.86

All of our outstanding restricted stock units, or RSUs, were included in the computation of diluted earnings per share for the three months ended July 31, 2021 and 2020.

In September 2013, our board of directors approved the 2013 Incentive Stock Plan under which employees and non-employees may be granted stock options, restricted stock awards, restricted stock units, stock appreciation rights, bonus stock and awards in lieu of obligations, performance awards, and dividend equivalents.

We have an Employee Stock Purchase Plan, or the ESPP, in which each participant is granted an option to purchase our common stock on each subsequent exercise date during the offering period (as such terms are defined in the ESPP) in accordance with the terms of the ESPP.

The total stock-based compensation expense, including stock options, purchases under our ESPP, service-based restricted stock units, or RSUs, and performance-based RSUs, or PSUs, was $1.5 million and $884,000 for the three months ended July 31, 2021 and 2020, respectively. Stock-based compensation expense is included in cost of sales, sales and marketing, research and development, and general and administrative expenses.

We grant RSUs to employees and members of our Board of Directors. The awards are made at no cost to the recipient. An RSU represents the right to receive one share of our common stock and does not carry voting or dividend rights. Except in specific circumstances, RSU grants to employees vest over a period of four years with one-fourth of the units vesting on each anniversary of the grant date. We amortize the aggregate fair value of our RSU grants to compensation expense over the vesting period.

We grant PSUs to our executive officers and certain management employees who are not executive officers. The PSUs vest, and the fair value of such PSUs will be recognized, over the corresponding three-year performance period.

During the three months ended July 31, 2021, we granted an aggregate of 126,430 RSUs, including 49,277 RSUs to certain of our executive officers, 10,712 RSUs to our directors, and 66,441 RSUs to non-executive officer employees. During the three months ended July 31, 2021, we granted 73,913 PSUs to certain of our executive officers. Compensation expense related to grants of RSUs and PSUs was $1.3 million for the three months ended July 31, 2021. During the three months ended July 31, 2021, we cancelled 1,502 RSUs as a result of the service condition not being met. In connection with the vesting of RSUs, during the three months ended July 31, 2021, we delivered common stock to our employees and directors, including our executive officers, with a total market value of $2.2 million. In addition, in connection with a 2018 grant, we vested 86,400 market-condition PSUs to certain of our executive officers and a former executive officer, which resulted from achieving the maximum performance of 200.0% of target for the original 43,200 PSUs granted.

During the three months ended July 31, 2020, we granted an aggregate of 27,130 RSUs to non-executive officer employees. Compensation expense related to grants of RSUs and PSUs was $766,000 for the three months ended July 31, 2020. During the three months ended July 31, 2020, we canceled 63,700 PSUs as a result of the failure to satisfy the performance metric and 8,062 RSUs as a result of the service condition not being met. In connection with the vesting of RSUs, during the three months ended July 31, 2020, we delivered common stock to our employee and directors, including our executive officers, with a total market value of $2.9 million.

A summary of activity for unvested RSUs and PSUs for the three months ended July 31, 2021 and 2020 is as follows:


	For the Three Months Ended July 31,
	2021						2020
					Weighted					Weighted
	Total # of				Average		Total # of			Average
	Restricted				Grant Date		Restricted			Grant Date
	Stock Units				Fair Value		Stock Units			Fair Value
RSUs and PSUs outstanding, beginning of period		995,879			$	10.65		1,313,974		$	11.54
Awarded		243,543		(a)		16.45		27,130			21.02
Vested		(115,763	)			13.42		(212,232	)		15.76
Forfeited		(1,502	)			12.07		(71,762	)		21.64
RSUs and PSUs outstanding, end of period		1,122,157			$	11.62		1,057,110		$	10.25

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(a)

Includes 43,200 PSUs vested in connection with achieving maximum performance targets for the 2018 grant.

As of July 31, 2021, there was $4.7 million of unrecognized compensation expense related to unvested RSUs and PSUs. This expense is expected to be recognized over a weighted average remaining contractual term of 1.6 years.