Stockholders’ Equity

Share Repurchase Program

The Company is authorized to repurchase issued and outstanding shares of its common stock under a share repurchase program approved by the Company's Board of Directors. Share repurchases may be made through open market purchases, privately negotiated transactions or otherwise, at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements and other market conditions. The repurchase program may be discontinued or suspended at any time, and will be funded using available cash. The Company's Board of Directors reviews the share repurchase program periodically, the last such review having occurred in May 2016. The Company did not repurchase shares under this program during the nine months ended June 30, 2017 or 2016. As of June 30, 2017, the Company may repurchase an additional $10.1 million in shares under this program.

2006 Omnibus Long-Term Incentive Plan (the 2006 Plan)

Under the 2006 Omnibus Long-Term Incentive Plan, or the 2006 Plan, as amended, 13,000,000 shares of common stock were available for issuance as of September 30, 2016. On February 23, 2017, at the Company's annual meeting of stockholders, the stockholders approved amendments to the 2006 Plan to increase the number of shares available for issuance under the 2006 Plan by 3,300,000, to a total of 16,300,000 shares. The 2006 Plan has a fungible share pool so that awards other than options or stock appreciation rights granted would be counted as 1.5 shares from the shares reserved for issuance.

During the nine months ended June 30, 2017, the Company canceled options to purchase 40,718 shares and 112,380 restricted shares subject to performance vesting conditions because the Compensation Committee, which administers the 2006 Plan, determined the performance goals had become unachievable. At June 30, 2017, there were 3,175,586 shares remaining reserved for issuance in connection with awards under the 2006 Plan.

During the nine months ended June 30, 2017, the Company issued 218,550 cash-settled stock appreciation rights at the price of $10.30, and 178,022 cash-settled stock appreciation rights were forfeited. During fiscal year 2016, the Company issued 1,062,668 cash-settled stock appreciation rights at the price of $4.57, and 153,338 cash-settled stock appreciation rights were forfeited. The cash settled stock appreciation rights are recorded as liability awards. The maximum number of shares subject to options or stock appreciation rights that can be awarded under the 2006 Plan to any person is 1,000,000 per year. The maximum number of shares that can be awarded under the 2006 Plan to any person, other than pursuant to an option or stock appreciation right, is 700,000 per year. The Company issues stock appreciation rights where conditions lapse upon either the passage of time (service vesting), achievement of performance targets, or some combination of these conditions. The Company recognizes compensation cost with respect to stock appreciation rights only subject to service vesting conditions on a straight-line basis over the explicit service period. For awards subject to both performance and service vesting conditions, the Company starts recognizing compensation cost over the remaining service period, when it is probable the performance vesting condition will be met. The stock appreciation rights that are only subject to service vesting conditions generally vest over a period of one to four years conditioned on continued employment for the incentive period.

Stock Option Activity

A summary of the Company’s stock option activity for the nine months ended June 30, 2017 and year ended September 30, 2016 is as follows:



	Options		Weighted- Average Exercise Price
Options outstanding at September 30, 2015	1,472,643		$	17.46
Options granted	583,228		6.68
Options exercised	(1,251	)	7.48
Options canceled	(346,133	)	16.99
Options outstanding at September 30, 2016	1,708,487		13.91
Options granted	232,845		9.18
Options exercised	(12,421	)	7.41
Options canceled	(174,395	)	12.25
Options outstanding at June 30, 2017	1,754,516		13.49
Options exercisable at June 30, 2017	1,281,593		15.05

The intrinsic value and weighted average remaining contractual life in years of outstanding and exercisable options at June 30, 2017 is approximately $14,468 and 5.87 and $14,468 and 5.11 years, respectively, based on a stock price per share of $6.35 on June 30, 2017. Over the last three years, volatility rates have ranged from 51.49% to 77.92%, the dividend rate has been 0%, risk free interest rates have ranged from 0.26% to 2.17% and expected forfeiture rates have ranged from 21.38% to 23.54%.

Restricted Share Activity

A summary of the Company’s restricted share activity for the nine months ended June 30, 2017 and year ended September 30, 2016 is as follows:



	Restricted Shares		Weighted- Average Fair Value
Unvested restricted shares at September 30, 2015	2,367,187		$	16.08
Restricted shares granted	1,504,655		5.54
Restricted shares vested	(715,188	)	16.09
Restricted shares canceled	(495,409	)	20.25
Unvested restricted shares at September 30, 2016	2,661,245		9.34
Restricted shares granted	783,352		9.01
Restricted shares vested	(730,774	)	10.98
Restricted shares canceled	(459,300	)	9.65
Unvested restricted shares at June 30, 2017	2,254,523		8.64

The intrinsic value and weighted average remaining contractual life in years of unvested restricted shares at June 30, 2017 was approximately 14.32 million and 8.5 years, respectively, based on a stock price per share of $6.35 on June 30, 2017.