Stock-based Compensation (Tables)

9 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of assumptions used to estimate fair value of stock options granted using Black-Scholes option pricing model

The fair value of stock option grants for the three and nine months ended March 31, 2020 and 2019 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

	Three Months Ended March 31,						Nine Months Ended March 31,
	2020			2019			2020			2019
Risk-free interest rate	0.53% - 1.49%			2.56		%	0.53% - 1.72%			2.56% - 2.97%
Expected term	6.27 years			6.05 years			6.27 years			6.05 years
Dividend yield	—		%	—		%	—		%	—		%
Volatility	49.61% - 50.46%			50.25		%	49.61% - 50.46%			47.34% - 50.25%
Weighted-average fair value	$	10.15		$	7.55		$	9.50		$	8.56

Schedule of stock-based compensation expense

The following table shows total stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended March 31, 2020 and 2019 (in thousands):

	Three Months Ended March 31,						Nine Months Ended March 31,
	2020			2019			2020			2019
Cost of sales	$	370		$	390		$	1,149		$	1,256
Research and development	3,043			3,107			9,299			9,816
Sales and marketing	417			418			1,276			1,359
General and administrative	975			1,045			3,099			3,650
Stock-based compensation expense before taxes	4,805			4,960			14,823			16,081
Income tax impact	(2,978		)	(1,016		)	(5,142		)	(3,339		)
Stock-based compensation expense, net	$	1,827		$	3,944		$	9,681		$	12,742

Summary of stock option activity

The following table summarizes stock option activity during the nine months ended March 31, 2020 under all plans:

 

	Options Outstanding		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in Years)
Balance as of June 30, 2019	7,374,635		$	18.02
Granted	251,930		$	19.39
Exercised	(1,454,507	)	$	15.98
Forfeited/Cancelled	(440,807	)	$	11.62
Balance as of March 31, 2020	5,731,251		$	19.09	4.11
Options vested and exercisable at March 31, 2020	4,988,991		$	18.88	3.54

Summary of restricted stock unit activity

The following table summarizes RSU and PRSU activity during the nine months ended March 31, 2020 under all plans: 

	Time-Based RSUs Outstanding		Weighted Average Grant-Date Fair Value per Share		PRSUs Outstanding			Weighted Average Grant-Date Fair Value per Share
Balance as of June 30, 2019	1,873,102		$	20.25	120,000		(1)	$	27.10
Granted	841,880		$	20.24	30,000			$	20.37
Released	(669,721	)	$	20.79	(102,000	)		$	27.10
Forfeited	(126,039	)	$	18.88	—
Balance as of March 31, 2020	1,919,222		$	20.14	48,000			$	22.89

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(1)

Reflects the number of PRSUs that have been earned based on the achievement of performance metrics.