Shareholders' Equity and Share-based Compensation

3 Months Ended

Sep. 30, 2011

Share-based Compensation [Abstract]

Shareholders' Equity and Share-based Compensation

Shareholders' Equity and Share-based Compensation

Shares Repurchase

On October 22, 2010, the Company's board of directors authorized a $25.0 million share repurchase program. Under this repurchase program the Company may, from time to time, repurchase shares from the open market or in privately negotiated transactions, subject to supervision and oversight by the board. During the three months ended September 30, 2011, the Company repurchased 191,170 shares from the open market for a total cost of $1,574,000, at an average price of $8.23 per share. As of September 30, 2011, the Company repurchased an aggregate of 241,170 shares for a total cost of $2,267,000, at an average price of $9.40 per share. Shares repurchased are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction to shareholders' equity.

Share Options

A summary of the status of share options granted under the Company's 2000 Share Plan and 2009 Share Options/Share Issuance Plan and changes during the three months ended September 30, 2011 and 2010 is presented as follows:

			Weighted		Weighted		Aggregate
	Number of		Average		Average Grant		Intrinsic Value
	Options		Exercise Price		Date Fair Value		at Date of
	Outstanding		Per Share		Per Share		Each Exercise
As of June 30, 2010	4,733,133		$	8.7
Options granted	6,000		10.22		$	5.54
Options exercised	(26,062	)	2.18				$	255,097
Options cancelled or forfeited	(5,965	)	10.86
As of September 30, 2010	4,707,106		8.74
As of June 30, 2011	4,461,875		9.56
Options granted	—
Options exercised	(36,427	)	3.46				$	241,827
Options cancelled or forfeited	(42,477	)	11.49
As of September 30, 2011	4,382,971		9.59

Information with respect to share options outstanding and share options exercisable at the end of the three months ended September 30, 2011 is presented as follows:

	Options Outstanding					Options Vested and Exercisable
	Number Outstanding		Weighted-Average Remaining Life (years)	Weighted-Average Exercise Price		Number Outstanding	Weighted-Average Exercise Price
Total options outstanding	4,382,971		5.82	$	9.59	3,071,602	$	7.95
Options vested and expected to vest	4,258,912		5.74	$	9.47
Aggregate intrinsic value of options outstanding	$	7,137,139
Aggregate intrinsic value of options vested and expected to vest	$	7,134,796
Aggregate intrinsic value of options exercisable	$	7,092,352

Options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options.

Share option exercises were settled with newly issued common shares. The weighted average fair values of the options granted on the date of grant were determined using the Black-Scholes option pricing model. There were no options granted during the three months ended September 30, 2011. The significant inputs into the model for the three months ended September 30, 2010 were as follows:

	Three Months Ended
	September 30,
	2010
Volatility rate		49%
Risk-free interest rate		1.3% - 1.9%
Expected option life		5.5 years
Dividend yield		0%

Restricted Stock Units (the "RSU")

A summary of the RSU activity under the 2009 Share Options/Share Issuance Plan and changes during the three months ended September 30, 2011 and 2010 is presented as follows:

	Restricted Stock Units			Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (Years)		Aggregate Intrinsic Value
Outstanding at July 1, 2010		—
Awards granted		14,200		$	10.92
Awards released		—
Awards forfeited		—
Outstanding at September 30, 2010		14,200
Outstanding at July 1, 2011		213,300
Awards granted		48,700		$	10.46
Awards released		(1,640	)
Awards forfeited		(11,000	)
Outstanding at September 30, 2011		249,360					2.35	$	2,047,246
Ending RSU vested and expected to vest		210,914					2.21	$	1,731,607

The estimated fair value of RSU is based on the market price of the Company's stock on the grant date.

Employee Stock Purchase Plan (the “ESPP”)

The Employee Shock Purchase Plan was established in May 2010 upon the completion of the Company's initial public offering. The fair values of common shares to be issued under the ESPP were determined using the Black-Scholes pricing model. The significant inputs into the model were as follows:

	Three Months Ended
	September 30,
	2011	2010
Volatility rate	50%	50%
Risk-free interest rate	0.2% - 1.0%	0.2% - 1.0%
Expected term	1.3 years	1.3 years
Dividend yield	0%	0%

The total share-based compensation expenses, including the share options, the ESPP and the RSU described above, recognized in the condensed consolidated statement of income are as follows:

	Three Months Ended
	September 30,
	2011		2010
	(in thousands)
Cost of goods sold	$	81	$	137
Research and development expenses	259		387
Selling, general and administrative expenses	882		1,024
	$	1,222	$	1,548

Total unrecognized compensation expense from the share options , the RSU and the ESPP as of September 30, 2011 was $6,196,000 including estimated forfeitures, which is expected to be recognized over a weighted-average period of 1.94 years.