Stock Compensation

9 Months Ended

Mar. 31, 2012

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 March  31,						Nine months ended March  31,
	2012			2011			2012			2011
Expected volatility (based on historical data)		30.5	%		27.0	%		30.1	%		26.5	%
Expected life in years		4.75			4.75			4.75			4.75
Risk-free interest rate		1.04	%		2.35	%		1.02	%		2.19	%
Fair value per award	$	1.68		$	1.56		$	1.72		$	1.47

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 March  31,				Nine months ended March  31,
	2012		2011		2012		2011
Cost of service and other revenues	$	16	$	15	$	45	$	37
Sales and marketing		167		132		448		398
Research and development		102		56		251		183
General and administrative		204		226		657		677
Total	$	489	$	429	$	1,401	$	1,295

As of March 31, 2012, $4.4 million of unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.0 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 nine month period ended March 31, 2012 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		536,000			5.96		2.71		3,193,700
Vested		(701,000	)		3.84		—		(2,689,475	)
Forfeited		(57,000	)		5.29		—		(301,330	)
Outstanding and unvested at March 31, 2012		825,000		$	5.73		2.56	$	4,682,279

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 nine month period ended March 31, 2012 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		184,500		$	6.01 – 6.79	$	6.25
Exercised		(259,577	)	$	1.71 – 5.83	$	3.85
Surrendered		(83,150	)	$	3.60 – 8.37	$	5.04
Options outstanding, March 31, 2012		2,145,479		$	3.01 – 8.15	$	4.91

The following is additional information relating to outstanding options:

	Options Outstanding				Options Exercisable
Range of Exercise Price	March 31, 2012		June 30, 2011		March 31, 2012
$ 3.01 to $ 4.00		749,754		918,500		720,753
$ 4.03 to $ 6.00		889,225		1,053,206		670,100
$ 6.01 to $ 8.15		506,500		332,000		309,500
$ 3.01 to $8.15		2,145,479		2,303,706		1,700,353