Stock Compensation

6 Months Ended

Dec. 31, 2011

Stock Compensation [Abstract]

Stock Compensation

5. Stock Compensation

Stock-based compensation expense is computed using the fair value of stock-based awards measured at the grant date, recognized over the relevant service period, and is adjusted each period for anticipated forfeitures. The grant date fair value of stock option awards is estimated using the Black-Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions:

	Three months ended December 31,						Six months ended December 31,
	2011			2010			2011			2010
Expected volatility (based on historical data)		30.5	%		24.2	%		29.7	%		25.6	%
Expected life in years		4.75			4.75			4.75			4.75
Risk-free interest rate		0.83	%		2.20	%		1.00	%		1.89	%
Fair value per award	$	1.69		$	1.30		$	1.76		$	1.29

Share-based compensation expense reflects non-cash compensation expense associated with restricted stock purchase rights and employee stock options. Share-based compensation expense is included in costs and expenses as follows:

	Three months ended December 31,				Six months ended December 31,
	2011		2010		2011		2010
Cost of service and other revenues	$	15	$	11	$	29	$	22
Sales and marketing		148		132		281		266
Research and development		75		61		149		127
General and administrative		229		227		453		451
Total	$	467	$	431	$	912	$	866

As of December 31, 2011, $3.7 million of unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 1.7 years.

Restricted Stock

The vesting period for restricted stock is generally a three year period. Stock will remain restricted until the full vesting period has expired. A summary of changes in restricted stock awards during the year ended June 30, 2011 and the six month period ended December 31, 2011 is as follows:

	Shares			Weighted Average Grant Date Fair Value		Weighted Average Remaining Vesting Period (in years)		Grant Date Intrinsic Value
Outstanding and unvested at June 30, 2010		1,040,000		$	4.04		2.36	$	4,206,044
Granted		200,000			5.58		2.48		1,115,600
Vested		(128,000	)		4.04		—		(517,680	)
Forfeited		(65,000	)		4.99		—		(324,580	)
Outstanding and unvested at June 30, 2011		1,047,000			4.42		1.29		4,479,384
Granted		346,000			5.94		2.88		2,054,800
Vested		(50,000	)		4.62		—		(230,875	)
Forfeited		(48,000	)		5.14		—		(246,820	)
Outstanding and unvested at December 31, 2011		1,295,000		$	4.71		1.27	$	6,056,489

Common Stock

The vesting period for stock options is generally a four-year period. Options are generally exercisable by the holder only for the vested portion of each grant. A summary of changes in common stock options during the year ended June 30, 2011 and the six month period ended December 31, 2011 is as follows:

	Shares			Range of Exercise Prices		Weighted Average Exercise Price
Options outstanding, June 30, 2010		2,369,516		$	1.06 – 8.37	$	4.58
Granted		259,000		$	4.78 – 6.42	$	5.54
Exercised		(227,935	)	$	1.06 – 5.83	$	3.03
Surrendered		(96,875	)	$	3.09 – 8.15	$	4.90
Options outstanding, June 30, 2011		2,303,706		$	1.71 – 8.37	$	4.83
Granted		92,000		$	6.15 – 6.79	$	6.49
Exercised		(126,205	)	$	1.71 – 5.83	$	3.87
Surrendered		(53,650	)	$	3.60 – 8.37	$	4.84
Options outstanding, December 31, 2011		2,215,851		$	3.01 – 8.15	$	4.85

The following is additional information relating to outstanding options:

	Options Outstanding				Options Exercisable
Range of Exercise Price	December 31, 2011		June 30, 2011		December 31, 2011
$ 3.01 to $ 4.00		824,876		918,500		743,281
$ 4.03 to $ 6.00		973,975		1,053,206		661,650
$ 6.15 to $ 8.15		417,000		332,000		310,500
$ 3.00 to $8.15		2,215,851		2,303,706		1,715,431