Stock-Based Compensation

6 Months Ended

Dec. 31, 2016

9. Stock-Based Compensation

The following table shows total non-cash stock-based compensation expense included in the accompanying condensed consolidated statements of operation for the three and six months ended December 31, 2016 and 2015 (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
	2016		2015		2016		2015
Cost of product revenue	$	9	$	12	$	34	$	41
Cost of hosted and related services revenue		52		283		137		667
Cost of support and services revenue		88		135		214		347
Research and development		512		433		1,188		920
Sales and marketing		663		569		1,622		1,431
General and administrative		962		728		2,298		1,526
Total	$	2,286	$	2,160	$	5,493	$	4,932

The Company estimated the grant date fair value of stock option awards and purchase rights under the 2007 Employee Stock Purchase Plan (“2007 ESPP”) rights using the Black-Scholes option valuation model with the following assumptions:

	Three Months Ended December 31,				Six Months Ended December 31,
	2016		2015		2016		2015
Expected life from grant date of option (in years)		5.16		5.09		5.15 - 5.16		5.09 - 5.13
Expected life from grant date of ESPP (in years)		0.50		0.50		0.50		0.50
Risk free interest rate for options		1.61%		1.59%		1.13% - 1.61%		1.55% - 1.59%
Risk free interest rate for ESPP		0.40%		0.41%		0.40%		0.14% - 0.41%
Expected volatility for options		42%		47%		42% - 45%		47% - 48%
Expected volatility for ESPP		37%		29%		37%		29% - 35%
Expected dividend yield		0%		0%		0%		0%

Compensation expense is recognized only for the portion of stock options that are expected to vest, assuming an expected forfeiture rate in determining stock-based compensation expense, which could affect the stock-based compensation expense recorded if there is a significant difference between actual and estimated forfeiture rates. As of December 31, 2016, total unrecognized compensation cost related to stock-based options and awards granted to employees and non-employee directors was $11.4 million. This cost will be amortized on a ratable basis over a weighted-average vesting period of approximately 2.9 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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