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Employee Benefits and Share-Based Compensation
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In thousands)
Cost of product and service revenues$1,709 $2,213 $4,884 $6,489 
Research and development1,062 1,917 3,276 5,220 
Selling, general, and administrative8,834 10,852 22,117 31,404 
Total share-based compensation expense$11,605 $14,982 $30,277 $43,113 
The Company capitalized approximately $1.0 million and $1.1 million during the three months ended September 30, 2024 and 2023, respectively, and $2.7 million and $3.3 million during the nine months ended September 30, 2024 and 2023, 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 share-based compensation expense to inventory during the three and nine months ended September 30, 2024 and 2023.
Employee Stock Purchase Plan (“ESPP”)
The following assumptions were used to value shares under the ESPP for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Expected life, years
0.5 - 2.0
0.5 - 2.0
0.5 - 2.0
0.5 - 2.0
Expected volatility, %
33.7% - 58.7%
32.0% - 63.9%
33.7% - 58.7%
31.7% - 63.9%
Risk-free interest rate, %
3.2% - 5.3%
0.2% - 5.5%
1.5% - 5.5%
0.1% - 5.5%
Dividend yield, % — %— %— %— %
For the nine months ended September 30, 2024 and 2023, employees purchased approximately 524,000 and 353,000 shares of common stock, respectively, under the ESPP at a weighted-average price of $24.14 and $46.68, respectively. As of September 30, 2024, the unrecognized compensation cost related to the shares to be purchased under the ESPP was approximately $0.6 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 nine months ended September 30, 2023. There were no stock options granted during the three and nine months ended September 30, 2024 or the three months ended September 30, 2023.
Nine Months Ended September 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 nine months ended September 30, 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(16)30.54 
Expired(209)73.50 
Forfeited(23)63.93 
Outstanding at September 30, 20241,775 $67.38 4.1$2,399 
Exercisable at September 30, 20241,762 $66.97 4.0$2,399 
Vested and expected to vest at September 30, 2024 and thereafter1,774 $67.36 4.1$2,399 
As of September 30, 2024, total unrecognized compensation cost related to unvested stock options was $0.3 million, which is expected to be recognized over a weighted-average vesting period of 0.4 years.
Restricted Stock Units (“RSUs”)
The following table summarizes the RSU activity under the 2009 Plan during the nine months ended September 30, 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)1,023 40.04 
Vested (Released)(297)88.81 
Forfeited(130)78.53 
Outstanding and unvested at September 30, 20241,674 $57.13 1.7$72,966 
As of September 30, 2024, total unrecognized compensation cost related to RSUs was $62.5 million, which is expected to be recognized over the remaining weighted-average vesting period of 3.2 years.
Restricted Stock Awards (“RSAs”)
The following table summarizes the RSA activity under the 2009 Plan during the nine months ended September 30, 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)51 31.94 
Vested (Released)(26)67.32 
Outstanding and unvested at September 30, 202449 $31.91 
As of September 30, 2024, total unrecognized compensation cost related to RSAs was $0.8 million, which is expected to be recognized over the remaining weighted-average vesting period of 0.6 years.
Performance-Based Stock Unit Awards (“PSUs”)
The following table summarizes the PSU activity under the 2009 Plan during the nine months ended September 30, 2024:
Number of
Shares		Weighted-Average
Grant Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 202375 $127.14 
Granted (Awarded)177 28.67 
Vested (Released)(5)157.56 
Forfeited(65)122.29 
Outstanding and unvested at September 30, 2024182 $32.33 
As of September 30, 2024, total unrecognized compensation cost related to PSUs was approximately $3.9 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 September 30, 2024:
Number of Shares
(In thousands)
Stock options outstanding1,775 
Non-vested restricted stock awards1,905 
Shares authorized for future issuance3,396 
ESPP shares available for future issuance2,726 
Total shares reserved for future issuance9,802 
Stock Repurchase Programs
On August 2, 2016, the Company’s Board of Directors (the “Board”) authorized a stock repurchase program, which does not expire, providing for the repurchase of up to $50.0 million of the Company’s common stock (the “2016 Repurchase Program”). As of September 30, 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 and nine months ended September 30, 2024 and 2023, the Company did not repurchase any of its outstanding common stock under the 2016 Repurchase Program.