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Employee Benefits and Share-Based Compensation
 3 Months Ended
Mar. 31, 2024
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 months ended March 31, 2024 and 2023:
Three Months Ended March 31,
20242023
(In thousands)
Cost of product and service revenues$1,555 $2,008 
Research and development1,075 1,606 
Selling, general, and administrative6,011 10,428 
Total share-based compensation expense$8,641 $14,042 
During the three months ended March 31, 2024 and 2023, the Company capitalized approximately $0.7 million and $1.1 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 months ended March 31, 2024 and 2023.
Employee Stock Purchase Plan (“ESPP”)
The following assumptions were used to value shares under the ESPP for the three months ended March 31, 2024 and 2023:
Three Months Ended March 31,
20242023
Expected life, years
0.5 - 2.0
0.5 - 2.0
Expected volatility, %
33.7% - 57.0%
31.7% - 63.9%
Risk-free interest rate, %
1.5% - 5.5%
0.1% - 5.1%
Dividend yield, % — %— %
For the three months ended March 31, 2024 and 2023, employees purchased approximately 334,000 and 209,000 shares of common stock, respectively, under the ESPP at a weighted-average price of $24.06 and $46.96, respectively. As of March 31, 2024, the unrecognized compensation cost related to the shares to be purchased under the ESPP was approximately $1.5 million and is expected to be recognized over a weighted-average period of 1.6 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 three months ended March 31, 2023. There were no stock options granted during the three months ended March 31, 2024.
Three Months Ended March 31,
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 three months ended March 31, 2024:
Number of
Shares		Weighted-Average
Exercise Price		Weighted-Average
Remaining Years		Aggregate
Intrinsic Value
(In thousands, except per share data)
Outstanding at December 31, 20232,023 $67.68 4.6$1,013 
Granted— — 
Exercised— — 
Expired(117)73.88 
Forfeited(17)62.81 
Outstanding at March 31, 20241,889 $67.35 4.4$88 
Exercisable at March 31, 20241,766 $66.74 4.4$88 
Vested and expected to vest at March 31, 2024 and thereafter1,882 $67.30 4.4$88 
As of March 31, 2024, total unrecognized compensation cost related to unvested stock options was $1.8 million, which is expected to be recognized over a weighted-average vesting period of 0.5 years.
Restricted Stock Units (“RSUs”)
The following table summarizes the RSU activity under the 2009 Plan during the three months ended March 31, 2024:
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, 20231,078 $84.66 1.5$40,551 
Granted (Awarded)178 27.37 
Vested (Released)(73)94.23 
Forfeited(56)82.70 
Outstanding and unvested at March 31, 20241,127 $75.08 1.5$32,952 
As of March 31, 2024, total unrecognized compensation cost related to RSUs was $52.0 million, which is expected to be recognized over the remaining weighted-average vesting period of 3.0 years.
Restricted Stock Awards (“RSAs”)
The following table summarizes the RSA activity under the 2009 Plan during the three months ended March 31, 2024:
Number of
Shares		Weighted-Average
Grant Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 202324 $70.96 
Granted (Awarded)3 32.45 
Vested (Released)(3)72.02 
Outstanding and unvested at March 31, 202424 $66.81 
As of March 31, 2024, total unrecognized compensation cost related to RSAs was $0.2 million, which is expected to be recognized over the remaining weighted-average vesting period of 0.1 years.
Performance-Based Stock Unit Awards (“PSUs”)
The following table summarizes the PSU activity under the 2009 Plan during the three months ended March 31, 2024:
Number of
Shares		Weighted-Average
Grant Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 202375 $127.14 
Granted177 28.67 
Vested— — 
Forfeited(65)122.29 
Outstanding and unvested at March 31, 2024187 $35.79 
As of March 31, 2024, total unrecognized compensation cost related to PSUs was approximately $6.8 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.0 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 March 31, 2024:
Number of Shares
(In thousands)
Stock options outstanding1,889 
Non-vested restricted stock awards1,338 
Shares authorized for future issuance2,354 
ESPP shares available for future issuance2,916 
Total shares reserved for future issuance8,497 
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 March 31, 2024, the maximum dollar value of shares that may yet be purchased under the 2016 Repurchase Program was $2.7 million.
The timing, price, and volume of repurchases are to be based on market conditions, relevant securities laws, and other factors. The stock repurchases may be made from time to time on the open market, in privately negotiated transactions, or pursuant to a Rule 10b-18 plan, subject to the terms and conditions of the Second A&R Credit Agreement, as amended. 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 three months ended March 31, 2024 and 2023, the Company did not repurchase any of its outstanding common stock under the 2016 Repurchase Program.