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Employee Benefits and Share-Based Compensation
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Employee Benefits and Share-Based Compensation Employee Benefits and Share-Based Compensation
Share-Based Compensation Expense
The following table sets forth the total share-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(In thousands)
Cost of product and service revenues$2,268 $2,160 $4,276 $4,404 
Research and development1,697 2,594 3,303 4,858 
Selling, general, and administrative10,124 12,459 20,552 24,159 
Total share-based compensation expense$14,089 $17,213 $28,131 $33,421 
During the three and six months ended June 30, 2023, the Company capitalized approximately $1.1 million and $2.2 million, respectively, of non-cash share-based compensation expense to internal-use and external-use software development costs related to internal labor. The Company did not capitalize any material non-cash share-based compensation expense to inventory during the three and six months ended June 30, 2023 and 2022, or any material non-cash share-based compensation expense to internal-use and external-use software development costs during the three and six months ended June 30, 2022.
Employee Stock Purchase Plan (“ESPP”)
The following assumptions were used to value shares under the ESPP for the three and six months ended June 30, 2023 and 2022:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Expected life, years
0.5 - 2.0
0.5 - 2.0
0.5 - 2.0
0.5 - 2.0
Expected volatility, %
31.7% - 63.9%
28.8% - 45.6%
31.7% - 63.9%
28.8% - 45.6%
Risk-free interest rate, %
0.1% - 5.1%
0.1% - 1.5%
0.1% - 5.1%
0.1% - 1.5%
Dividend yield, % — %— %— %— %
For the six months ended June 30, 2023 and 2022, employees purchased approximately 209,000 and 175,000 shares of common stock, respectively, under the ESPP at a weighted-average price of $46.96 and $66.81, respectively. As of June 30, 2023, the unrecognized compensation cost related to the shares to be purchased under the ESPP was approximately $2.6 million and is expected to be recognized over a weighted-average period of 1.4 years.
Stock Options
The following assumptions were used to value stock options granted pursuant to the Company’s 2009 Equity Incentive Plan, as amended, (the “2009 Plan”) for the six months ended June 30, 2023. There were no stock options granted during the three months ended June 30, 2023, and the three and six months ended June 30, 2022.
Six Months Ended June 30,
2023
Expected life, years 3.2
Expected volatility, % 44.8 %
Risk-free interest rate, % 3.7 %
Estimated forfeiture rate, %10.0 %
Dividend yield, % — %
The following table summarizes the stock option activity under the 2009 Plan during the six months ended June 30, 2023:
Number of
Shares		Weighted-Average
Exercise Price		Weighted-Average
Remaining Years		Aggregate
Intrinsic Value
(In thousands, except per share data)
Outstanding at December 31, 20222,434 $68.65 6.1$7,887 
Granted200 55.60 
Exercised(130)41.54 
Expired(72)77.54 
Forfeited(119)80.50 
Outstanding at June 30, 20232,313 $68.16 5.3$26,912 
Exercisable at June 30, 20231,863 $66.78 5.1$23,098 
Vested and expected to vest at June 30, 2023 and thereafter2,282 $68.10 5.3$26,591 
The weighted-average fair value per share of options granted during the six months ended June 30, 2023 was $19.48. The intrinsic value of options exercised during the three months ended June 30, 2023 and 2022 was $1.3 million and $2.8 million, respectively, and during the six months ended June 30, 2023 and 2022 was $2.6 million and $15.5 million, respectively.
As of June 30, 2023, total unrecognized compensation cost related to unvested stock options was $12.6 million, which is expected to be recognized over a weighted-average vesting period of 1.1 years.
Restricted Stock Units (“RSUs”)
The following table summarizes the RSU activity under the 2009 Plan during the six months ended June 30, 2023:
Number of
Shares		Weighted-Average
Grant Date Fair Value		Weighted-Average
Remaining Years		Aggregate
Intrinsic Value
(In thousands, except per share data)
Outstanding at December 31, 20221,117 $115.75 1.6$56,297 
Granted (Awarded)244 67.10 
Vested (Released)(129)124.31 
Forfeited(237)114.73 
Outstanding and unvested at June 30, 2023995 $103.00 1.5$73,319 
As of June 30, 2023, total unrecognized compensation cost related to RSUs was $95.4 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.9 years.
Restricted Stock Awards (“RSAs”)
The following table summarizes the RSA activity under the 2009 Plan during the six months ended June 30, 2023:
Number of
Shares		Weighted-Average
Grant Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 202213 $109.39 
Granted (Awarded)21 72.02 
Vested (Released)(13)109.39 
Outstanding and unvested at June 30, 202321 $72.02 
As of June 30, 2023, total unrecognized compensation cost related to RSAs was $1.2 million, which is expected to be recognized over the remaining weighted-average vesting period of 0.9 years.
Performance-Based Stock Unit Awards (“PSUs”)
The following table summarizes the PSU activity under the 2009 Plan during the six months ended June 30, 2023:
Number of
Shares		Weighted-Average
Grant Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 2022135 $147.42 
Granted65 122.29 
Vested(30)139.58 
Forfeited(63)153.89 
Outstanding and unvested at June 30, 2023107 $130.59 
As of June 30, 2023, total unrecognized compensation cost related to PSUs was approximately $8.7 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.6 years.
Summary of Shares Reserved for Future Issuance under Equity Incentive Plans
The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of June 30, 2023:
Number of Shares
(In thousands)
Stock options outstanding2,313 
Non-vested restricted stock awards1,123 
Shares authorized for future issuance2,932 
ESPP shares available for future issuance3,394 
Total shares reserved for future issuance9,762 
Stock Repurchase Programs
On August 2, 2016, the Company’s Board of Directors (the “Board”) authorized a stock repurchase program providing for the repurchase of up to $50.0 million of the Company’s common stock (the “2016 Repurchase Program”). The 2016 Repurchase Program is in addition to the stock repurchase program approved by the Board on November 4, 2014 providing for the repurchase of up to $50.0 million of the Company’s common stock (the “2014 Repurchase Program”). During the first quarter of 2022, the 2014 Repurchase Program was completed, and as of June 30, 2023, the maximum dollar value of shares that may yet be purchased under the 2016 Repurchase Program was $2.7 million. The 2016 Repurchase Program does not obligate the Company to repurchase any specific number of shares, and the Company may terminate or suspend the 2016 Repurchase Program at any time.
During the six months ended June 30, 2022, the Company repurchased approximately 389,300 shares of its common stock under the repurchase programs at an average price of $134.11 per share for an aggregate purchase price of approximately $52.2 million. During the three and six months ended June 30, 2023 and the three months ended June 30, 2022, the Company did not repurchase any of its outstanding common stock under the 2016 Repurchase Program.