Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2015 | Jan. 31, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MRCY | |
Entity Registrant Name | MERCURY SYSTEMS INC | |
Entity Central Index Key | 1,049,521 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,829,997 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 81,554 | $ 77,586 |
Accounts receivable, net of allowance for doubtful accounts of $52 and $56 at December 31, 2015 and June 30, 2015, respectively | 35,468 | 31,765 |
Unbilled receivables and costs in excess of billings | 24,645 | 22,021 |
Inventory | 36,707 | 31,960 |
Deferred income taxes | 12,363 | 12,407 |
Prepaid income taxes | 2,880 | 3,747 |
Prepaid expenses and other current assets | 5,361 | 8,678 |
Total current assets | 198,978 | 188,164 |
Restricted cash | 264 | 264 |
Property and equipment, net | 13,324 | 13,226 |
Estimated fair value of goodwill | 173,749 | 168,146 |
Intangible assets, net | 18,608 | 17,998 |
Other non-current assets | 3,169 | 2,190 |
Total assets | 408,092 | 389,988 |
Current liabilities: | ||
Accounts payable | 11,858 | 6,928 |
Accrued expenses | 8,719 | 9,005 |
Accrued compensation | 11,409 | 9,875 |
Deferred revenues and customer advances | 9,406 | 7,477 |
Total current liabilities | 41,392 | 33,285 |
Deferred gain on sale-leaseback | 350 | 929 |
Deferred income taxes | 2,287 | 3,108 |
Income taxes payable | 1,505 | 1,459 |
Other non-current liabilities | 1,100 | 1,069 |
Total liabilities | $ 46,634 | $ 39,850 |
Commitments and contingencies (Note I) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding | $ 0 | $ 0 |
Common stock, $0.01 par value; 85,000,000 shares authorized; 33,240,461 and 32,570,959 shares issued and outstanding at December 31, 2015 and June 30, 2015, respectively | 332 | 326 |
Additional paid-in capital | 259,140 | 254,568 |
Retained earnings | 101,221 | 94,468 |
Accumulated other comprehensive income | 765 | 776 |
Total shareholders' equity | 361,458 | 350,138 |
Total liabilities and shareholders' equity | $ 408,092 | $ 389,988 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 52 | $ 56 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 85,000,000 | 85,000,000 |
Common stock, shares issued | 33,240,461 | 32,570,959 |
Common stock, shares outstanding | 33,240,461 | 32,570,959 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||||
Net revenues | $ 60,417 | $ 57,089 | $ 118,826 | $ 111,150 |
Cost of revenues | 31,839 | 30,054 | 62,719 | 60,116 |
Gross margin | 28,578 | 27,035 | 56,107 | 51,034 |
Operating expenses: | ||||
Selling, general and administrative | 12,583 | 12,677 | 24,709 | 24,967 |
Research and development | 7,684 | 7,895 | 15,777 | 15,846 |
Amortization of intangible assets | 1,638 | 1,762 | 3,351 | 3,524 |
Restructuring and other charges | 221 | 1,162 | 559 | 2,430 |
Impairment of Intangible Assets, Finite-lived | 231 | 0 | 231 | 0 |
Acquisition costs and other related expenses | (148) | 0 | 1,980 | 0 |
Total operating expenses | 22,209 | 23,496 | 46,607 | 46,767 |
Income from operations | 6,369 | 3,539 | 9,500 | 4,267 |
Interest income | 26 | 4 | 50 | 7 |
Interest expense | (5) | (8) | (7) | (16) |
Other income, net | 83 | 398 | 154 | 392 |
Income from continuing operations before income taxes | 6,473 | 3,933 | 9,697 | 4,650 |
Tax provision | 1,680 | 1,047 | 2,944 | 1,047 |
Income from continuing operations | 4,793 | 2,886 | 6,753 | 3,603 |
Loss from discontinued operations, net of income taxes | 0 | (2,621) | 0 | (2,839) |
Net income | $ 4,793 | $ 265 | $ 6,753 | $ 764 |
Basic net loss per share: (in dollars per share) | $ 0.14 | $ 0.09 | $ 0.20 | $ 0.11 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | (0.08) | 0 | (0.09) |
Earnings Per Share, Basic | 0.14 | 0.01 | 0.20 | 0.02 |
Diluted net loss per share: (in dollars per share) | 0.14 | 0.09 | 0.20 | 0.11 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0 | (0.08) | 0 | (0.09) |
Earnings Per Share, Diluted | $ 0.14 | $ 0.01 | $ 0.20 | $ 0.02 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 33,120 | 32,052 | 33,047 | 31,880 |
Diluted (in shares) | 33,831 | 32,686 | 33,819 | 32,720 |
Comprehensive income: | ||||
Net income | $ 4,793 | $ 265 | $ 6,753 | $ 764 |
Foreign currency translation adjustments | (28) | (111) | (11) | (208) |
Total comprehensive income | $ 4,765 | $ 154 | $ 6,742 | $ 556 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 6,753 | $ 764 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 6,559 | 7,150 |
Stock-based compensation expense | 5,094 | 4,933 |
Benefit for deferred income taxes | (894) | (1,314) |
Goodwill and Intangible Asset Impairment | 231 | 2,283 |
Excess tax benefit from stock-based compensation | (1,359) | (536) |
Other non-cash items | (384) | (568) |
Changes in operating assets and liabilities: | ||
Accounts receivable, unbilled receivable, and cost in excess of billings | (6,254) | (7,103) |
Inventory | (4,677) | 1,584 |
Prepaid income taxes | 867 | (3,587) |
Prepaid expenses and other current assets | 3,315 | (182) |
Other non-current assets | (860) | 291 |
Accounts payable and accrued expenses | 7,045 | 4,126 |
Deferred revenues and customer advances | 2,034 | 2,458 |
Income taxes payable | 47 | 123 |
Other non-current liabilities | (39) | (16) |
Net cash provided by operating activities | 17,478 | 10,406 |
Cash flows from investing activities: | ||
Cash paid at closing | 9,764 | 0 |
Purchases of property and equipment | (3,156) | (2,123) |
Increase in other investing activities | (185) | 1 |
Net cash used in investing activities | (13,105) | (2,122) |
Cash flows from financing activities: | ||
Proceeds from employee stock plans | 2,297 | 1,313 |
Payments for Repurchase of Common Stock | (4,124) | 0 |
Excess tax benefits from stock-based compensation | 1,359 | 536 |
Payments of capital lease obligations | 0 | (320) |
Net cash (used in) provided by financing activities | (468) | 1,529 |
Effect of exchange rate changes on cash and cash equivalents | 63 | (113) |
Net increase in cash and cash equivalents | 3,968 | 9,700 |
Cash and cash equivalents at beginning of period | 77,586 | 47,287 |
Cash and cash equivalents at end of period | 81,554 | 56,987 |
Cash paid (received) during the period for: | ||
Interest | 7 | 16 |
Income taxes | 1,759 | 5,512 |
Supplemental disclosures-non-cash activities: | ||
Issuance of restricted stock awards to employees | $ 8,241 | $ 8,832 |
Description of Business
Description of Business | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Mercury Systems, Inc. (the "Company" or "Mercury") is a leading commercial provider of secure processing subsystems designed and made in the U.S.A. Optimized for customer and mission success, Mercury's solutions power a wide variety of critical defense and intelligence programs. Headquartered in Chelmsford, Massachusetts, Mercury is pioneering a next-generation defense electronics business model specifically designed to meet the industry's current and emerging technology needs. The Company delivers innovative solutions, rapid time-to-value and service and support to its defense prime contractor customers. The Company’s products and solutions have been deployed in more than 300 programs with over 25 different defense prime contractors. Key programs include Aegis, Patriot, Surface Electronic Warfare Improvement Program ("SEWIP"), Gorgon Stare, Predator, F-35 and Reaper. The Company’s organizational structure allows it to deliver capabilities that combine technology building blocks and deep domain expertise in the defense sector. The Company's goal is to grow and build on its position as a critical component of the defense industrial base and become the leading provider of affordable secure processing subsystems. The Mercury Commercial Electronics (“MCE”) operating segment designs, develops and builds open sensor processing products and subsystems that include embedded processing modules and subsystems, radio frequency (“RF”) and microwave multi-function assemblies as well as subsystems, and RF and microwave components. The Mercury Defense Systems (“MDS”) operating segment provides significant capabilities relating to pre-integrated, open, affordable electronic warfare ("EW"), electronic attack ("EA") and electronic counter measure ("ECM") subsystems, significant capabilities in signals intelligence ("SIGINT"), electro-optical/infrared ("EO/IR") and secure processing technologies, and radar environment test and simulation systems. In June 2014, the Company initiated a plan to divest the Mercury Intelligence Systems (“MIS”) operating segment, based on the Company's strategic direction and investment priorities focusing on its core business. On January 23, 2015, the Company completed the sale of the MIS operating segment. See Note M to consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies B ASIS OF P RESENTATION The accompanying consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to the Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures, normally included in annual consolidated financial statements have been condensed or omitted pursuant to those rules and regulations; however, in the opinion of management the financial information reflects all adjustments, consisting of adjustments of a normal recurring nature, necessary for fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the fiscal year ended June 30, 2015 which are contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on August 13, 2015. The results for the three and six months ended December 31, 2015 are not necessarily indicative of the results to be expected for the full fiscal year. The Company is comprised of the following operating segments: MCE and MDS. See Note L of the Notes to consolidated financial statements for further discussion. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. B USINESS C OMBINATIONS The Company utilizes the acquisition method of accounting under FASB ASC 805, Business Combinations , (“FASB ASC 805”), for all transactions and events which it obtains control over one or more other businesses, to recognize the fair value of all assets and liabilities acquired, even if less than one hundred percent ownership is acquired, and in establishing the acquisition date fair value as the measurement date for all assets and liabilities assumed. The Company also utilizes FASB ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations. U SE OF E STIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. R EVENUE R ECOGNITION The Company relies upon FASB ASC 605, Revenue Recognition to account for its revenue transactions. Revenue is recognized upon shipment provided that title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sales price is fixed or determinable, collection of the related receivable is reasonably assured, and customer acceptance criteria, if any, have been successfully demonstrated. Out-of-pocket expenses that are reimbursable by the customer are included in revenue and cost of revenue. Certain contracts with customers require the Company to perform tests of its products prior to shipment to ensure their performance complies with the Company’s published product specifications and, on occasion, with additional customer-requested specifications. In these cases, the Company conducts such tests and, if they are completed successfully, includes a written confirmation with each order shipped. As a result, at the time of each product shipment, the Company believes that no further customer testing requirements exist and that there is no uncertainty of acceptance by its customer. The Company uses FASB Accounting Standards Update (“ASU”) No. 2009-13 (“FASB ASU 2009-13”), Multiple-Deliverable Revenue Arrangements . FASB ASU 2009-13 establishes a selling price hierarchy for determining the selling price of a deliverable, which includes: (1) vendor-specific objective evidence (“VSOE”) if available; (2) third-party evidence (“TPE”) if VSOE is not available; and (3) best estimated selling price (“BESP”), if neither VSOE nor TPE is available. Additionally, FASB ASU 2009-13 expands the disclosure requirements related to a vendor’s multiple-deliverable revenue arrangements. The Company enters into multiple-deliverable arrangements that may include a combination of hardware components, related integration or other services. These arrangements generally do not include any performance-, cancellation-, termination- or refund-type provisions. Total revenue recognized under multiple-deliverable revenue arrangements was 36% and 42% of total revenues in the three and six months ended December 31, 2015 , respectively. Total revenue recognized under multiple-deliverable revenue arrangements was 26% and 28% of total revenues in the three and six months ended December 31, 2014, respectively. In accordance with the provisions of FASB ASU 2009-13, the Company allocates arrangement consideration to each deliverable in an arrangement based on its relative selling price. The Company generally expects that it will not be able to establish VSOE or TPE due to limited single element transactions and the nature of the markets in which the Company competes, and, as such, the Company typically determines its relative selling price using BESP. The objective of BESP is to determine the price at which the Company would transact if the product or service were sold by the Company on a standalone basis. The Company's determination of BESP involves the consideration of several factors based on the specific facts and circumstances of each arrangement. Specifically, the Company considers the cost to produce the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar parts, the Company’s ongoing pricing strategy and policies (as evident from the price list established and updated by management on a regular basis), the value of any enhancements that have been built into the deliverable and the characteristics of the varying markets in which the deliverable is sold. The Company analyzes the selling prices used in its allocation of arrangement consideration at a minimum on an annual basis. Selling prices will be analyzed on a more frequent basis if a significant change in the Company’s business necessitates a more timely analysis or if the Company experiences significant variances in its selling prices. Each deliverable within the Company’s multiple-deliverable revenue arrangements is accounted for as a separate unit of accounting under the guidance of FASB ASU 2009-13 if both of the following criteria are met: the delivered item or items have value to the customer on a standalone basis; and for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The Company's revenue arrangements generally do not include a general right of return relative to delivered products. The Company considers a deliverable to have standalone value if the item is sold separately by the Company or another vendor or if the item could be resold by the customer. Deliverables not meeting the criteria for being a separate unit of accounting are combined with a deliverable that does meet that criterion. The appropriate allocation of arrangement consideration and recognition of revenue is then determined for the combined unit of accounting. The Company also engages in long-term contracts for development, production and services activities which it accounts for consistent with FASB ASC 605-35, Accounting for Performance of Construction-Type and Certain Production-Type Contracts , and other relevant revenue recognition accounting literature. The Company considers the nature of these contracts and the types of products and services provided when determining the proper accounting for a particular contract. Generally for fixed-price contracts, other than service-type contracts, revenue is recognized primarily under the percentage of completion method or, for certain short-term contracts, by the completed contract method. Revenue from service-type fixed-price contracts is recognized ratably over the contract period or by other appropriate input or output methods to measure service provided, and contract costs are expensed as incurred. The Company establishes billing terms at the time project deliverables and milestones are agreed. The risk to the Company on a fixed-price contract is that if estimates to complete the contract change from one period to the next, profit levels will vary from period to period. For time and materials contracts, revenue reflects the number of direct labor hours expended in the performance of a contract multiplied by the contract billing rate, as well as reimbursement of other billable direct costs. For all types of contracts, the Company recognizes anticipated contract losses as soon as they become known and estimable. The Company also considers whether contracts should be combined or segmented in accordance with the applicable criteria under GAAP. The Company combines closely related contracts when all the applicable criteria under GAAP are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single project, which should be combined to reflect an overall profit rate. Similarly, the Company may separate a project, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria under GAAP are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement was negotiated and the performance criteria. The decision to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. The use of contract accounting requires significant judgment relative to estimating total contract revenues and costs, including assumptions relative to the length of time to complete the contract, the nature and complexity of the work to be performed, anticipated increases in wages and prices for subcontractor services and materials, and the availability of subcontractor services and materials. The Company’s estimates are based upon the professional knowledge and experience of its engineers, program managers and other personnel, who review each long-term contract monthly to assess the contract’s schedule, performance, technical matters and estimated cost at completion. Changes in estimates are applied retrospectively and when adjustments in estimated contract costs are identified, such revisions may result in current period adjustments to earnings applicable to performance in prior periods. Contract costs also may include estimated contract recoveries for matters such as contract changes and claims for unanticipated contract costs. The Company records revenue associated with these matters only when the amount of recovery can be estimated reliably and realization is probable. The Company defines service revenues as revenue from activities that are not associated with the design, development, production, or delivery of tangible assets, software or specific capabilities sold. Examples of the Company's service revenues include: analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. The Company combines its product and service revenues into a single class as service revenues are less than 10 percent of total revenues. The Company does not provide its customers with rights of product return, other than those related to warranty provisions that permit repair or replacement of defective goods. The Company accrues for anticipated warranty costs upon product shipment. Revenues from product royalties are recognized upon invoice by the Company. Additionally, all revenues are reported net of government assessed taxes (e.g. sales taxes or value-added taxes). W EIGHTED -A VERAGE S HARES Weighted-average shares were calculated as follows: Three Months Ended December 31, Six Months Ended December 31, 2015 2014 2015 2014 Basic weighted-average shares outstanding 33,120 32,052 33,047 31,880 Effect of dilutive equity instruments 711 634 772 840 Diluted weighted-average shares outstanding 33,831 32,686 33,819 32,720 Equity instruments to purchase 2 and 25 shares of common stock were not included in the calculation of diluted net earnings per share for the three and six months ended December 31, 2015 because the equity instruments were anti-dilutive. Equity instruments to purchase 654 and 740 shares of common stock were not included in the calculation of diluted net earnings per share for the three and six months ended December 31, 2014 because the equity instruments were anti-dilutive. |
Acquisitions
Acquisitions | 6 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions L EWIS I NNOVATIVE T ECHNOLOGIES A CQUISITION On December 16, 2015, the Company entered into a share purchase agreement (the “Share Purchase Agreement”) with Lewis Innovative Technologies, Inc. (“LIT”) and the holders of the equity interests of LIT. Pursuant to the Share Purchase Agreement, the Company completed its purchase of all of the equity interests in LIT, and LIT became a wholly-owned subsidiary of the Company. Based in Decatur, Alabama, LIT provides advanced security technology and development services necessary for protecting systems critical to national security while meeting strict Department of Defense (“DoD”) program protection requirements. LIT is included in the MDS operating segment. The Company acquired LIT for a cash purchase price of $9,764 . The Company funded the purchase with cash on hand. The purchase price was subject to a post-closing adjustment based on a determination of LIT's closing net working capital. In accordance with the Share Purchase Agreement, $1,000 of the purchase price was placed into escrow to support the post-closing working capital adjustment and the sellers' indemnification obligations. The escrow is available for indemnification claims through June 16, 2017. The Company acquired LIT free of bank debt. The following table presents the net purchase price and the preliminary fair values of the assets and liabilities of LIT: Amounts Consideration transferred Cash paid at closing $ 10,290 Working capital adjustment (236 ) Less cash and cash equivalents acquired (290 ) Net purchase price $ 9,764 Estimated fair value of tangible assets acquired and liabilities assumed Cash and cash equivalents $ 290 Accounts receivable and cost in excess of billings 290 Other current and non-current assets 175 Current liabilities (264 ) Estimated fair value of net tangible assets acquired 491 Estimated fair value of identifiable intangible assets 3,960 Estimated fair value of goodwill 5,603 Estimated fair value of assets acquired 10,054 Less cash and cash equivalents acquired (290 ) Net purchase price $ 9,764 The amounts above represent the preliminary fair value estimates as of December 31, 2015 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates. The preliminary identifiable intangible asset estimates include completed technology of $3,240 , customer relationships of $590 and backlog of $130 . Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill or income, as applicable. The goodwill of $5,603 arising from the LIT acquisition largely reflects the potential synergies and expansion of the Company's service offerings across product segments and markets complementary to the Company’s existing products and markets. The LIT acquisition provides the Company with additional capabilities and expertise related to secure embedded processing applications. The acquisition is directly aligned with the Company's strategy of assembling critical and differentiated capabilities across the entire sensor processing chain. The goodwill from the LIT acquisition is included in the Company's MDS reporting unit. The Company and the shareholders of LIT have agreed to treat the acquisition of LIT as an asset purchase for tax purposes by filing the required election forms under IRC Section 338(h)(10). The Company has estimated the tax value of the intangible assets from this transaction and is amortizing the amount over 15 years for tax purposes. As of December 31, 2015, the Company had $5,603 of goodwill deductible for tax purposes. The Company's consolidated results for the three and six months ended December 31, 2015 include $30 and $(40) of revenue and net loss, respectively, for LIT's operating results between the acquisition date and December 31, 2015. Pursuant to the completion of the LIT acquisition, the Company incurred $231 of impairment expense related to a pre-existing relationship. LIT acquisition costs and other related expenses were immaterial during the three and six months ended December 31, 2015. Additionally, the Company has not furnished pro forma financial information relating to LIT because such information is not material to the Company's financial results. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | During the third quarter of fiscal 2015, the Company completed the sale of the MIS operating segment. The MIS operating results have been reported as a discontinued operation for all periods presented. The Company does not have continuing involvement in the operations of MIS after its divestiture. The amounts reported in loss from discontinued operations, net of income taxes were as follows: Three Months Ended December 31, Six Months Ended December 31, 2014 2014 Net revenues of discontinued operations $ 1,321 $ 3,160 Costs of discontinued operations: Cost of revenues 951 2,176 Selling, general and administrative 600 1,247 Research and development 105 276 Amortization of intangible assets 124 248 Acquisition costs and other related expenses 76 109 Impairment of goodwill 2,283 2,283 Loss from discontinued operations before income taxes (2,818 ) (3,179 ) Tax benefit (197 ) (340 ) Loss from discontinued operations, net of income taxes $ (2,621 ) $ (2,839 ) There were no balances for the assets and liabilities of the discontinued operations for the periods ending December 31, 2015 and June 30, 2015. The depreciation, amortization, and significant operating and investing non-cash items of the discontinued operations were as follows: Three Months Ended December 31, Six Months Ended December 31, 2014 2014 Depreciation $ 45 $ 89 Amortization of intangible assets $ 124 $ 248 Impairment of goodwill $ 2,283 $ 2,283 Stock-based compensation expense $ 62 $ 126 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at December 31, 2015 : Fair Value Measurements December 31, 2015 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 51,529 $ 51,529 $ — $ — Certificates of deposit 30,025 — 30,025 — Restricted cash 264 264 — — Cost-method investment 500 — — 500 Total $ 82,318 $ 51,793 $ 30,025 $ 500 The carrying values of cash and cash equivalents, including all U.S. Treasury bills and money market funds, accounts receivable and payable, and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The value of the certificates of deposit is based on the quoted price for identical or similar instruments in markets that are not active or are directly or indirectly observable. The cost-method investment does not have a readily determinable fair value, as such the Company recorded the investment as a long term asset at cost and will continue to evaluate the asset for impairment. The change of the fair value of the Company's cost-method investment is as follows: Fair Value Balance at June 30, 2015 $ 500 Changes in fair value — Balance at December 31, 2015 $ 500 |
Inventory
Inventory | 6 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory is stated at the lower of cost (first-in, first-out) or market value, and consists of materials, labor and overhead. On a quarterly basis, the Company uses consistent methodologies to evaluate inventory for net realizable value. Once an item is written down, the value becomes the new inventory cost basis. The Company reduces the value of inventory for excess and obsolete inventory, consisting of on-hand inventory in excess of estimated usage. The excess and obsolete inventory evaluation is based upon assumptions about future demand, history, product mix and possible alternative uses. Inventory was comprised of the following: December 31, 2015 June 30, 2015 Raw materials $ 15,994 $ 15,864 Work in process 13,916 11,190 Finished goods 6,797 4,906 Total $ 36,707 $ 31,960 There are no amounts in inventory relating to contracts having production cycles longer than one year. |
Goodwill
Goodwill | 6 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table sets forth the changes in the carrying amount of goodwill by reporting unit for the six months ended December 31, 2015 : MCE MDS Total Balance at June 30, 2015 $ 134,378 $ 33,768 $ 168,146 Goodwill arising from the LIT acquisition — 5,603 5,603 Balance at December 31, 2015 $ 134,378 $ 39,371 $ 173,749 In the six months ended December 31, 2015 , there were no triggering events, as defined by FASB ASC 350, which required an interim goodwill impairment test. The Company performs its annual goodwill impairment test in the fourth quarter of each fiscal year. The Company determines its reporting units in accordance with FASB ASC 350 by assessing whether discrete financial information is available and if management regularly reviews the operating results of that component. Following this assessment, the Company determined that its reporting units are the same as its operating segments, MCE and MDS. |
Restructuring Plan
Restructuring Plan | 6 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan | Restructuring The following table presents the detail of activity for the Company’s restructuring plans: Severance & Facilities Total Restructuring liability at June 30, 2015 $ 657 $ 1,335 $ 1,992 MCE restructuring and other charges 424 207 631 MDS restructuring and other charges — — — Cash paid (724 ) (529 ) (1,253 ) Reversals(*) (72 ) — (72 ) Restructuring liability at December 31, 2015 $ 285 $ 1,013 $ 1,298 ( *) Reversals result from unused outplacement services. During the three and six months ended December 31, 2015 , the Company incurred net restructuring and other charges of $221 and $559 , respectively. In the event that the Company is unable to sublease the unoccupied portion of its headquarters complex in Chelmsford, Massachusetts, it will incur nominal, periodic restructuring charges through fiscal 2017 in its MCE reportable segment. All of the restructuring and other charges are classified as operating expenses in the consolidated statements of operations and comprehensive income and any remaining severance obligations are expected to be paid within the next twelve months. The restructuring liability is classified as accrued expenses in the consolidated balance sheets. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded an income tax provision of $1,680 and $1,047 on income from continuing operations before income taxes of $6,473 and $3,933 for the three months ended December 31, 2015 and 2014 , respectively. The Company recorded an income tax provision of $2,944 and $1,047 on income from continuing operations before income taxes of $9,697 and $4,650 for the six months ended December 31, 2015 and 2014 , respectively. The effective tax rates for the three and six months ended December 31, 2015 differed from the federal statutory rate primarily due to federal research and development credits, domestic manufacturing deduction, stock compensation, and state taxes. The effective tax rates for the three and six months ended December 31, 2014 differed from the federal statutory rate primarily due to the impact of federal research and development credits, domestic manufacturing deduction, stock compensation, and state taxes. On December 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 was enacted, which retroactively reinstated and made permanent the federal research and development tax credit effective January 1, 2015. Based on the indefinite extension, the Company estimates that there was an additional $1,568 credit earned during the period January 1, 2015 through June 30, 2016, of which $568 relating to fiscal year 2015 was recognized as a discrete benefit in the three months ended December 31, 2015. No material changes in the Company’s unrecognized tax positions occurred during the six months ended December 31, 2015 . The Company is currently under audit by the Internal Revenue Service for fiscal year 2013. There have been no significant changes to the status of this examination during the six months ended December 31, 2015 . It is reasonably possible that within the next 12 months the Company’s unrecognized tax benefits, exclusive of interest, may decrease by up to $757 at the conclusion of the audit. The Company expects that the decrease, if recognized, would not affect the effective tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies L EGAL C LAIMS The Company is subject to litigation, claims, investigations and audits arising from time to time in the ordinary course of our business. Although legal proceedings are inherently unpredictable, the Company believes that it has valid defenses with respect to any matters currently pending against the Company and intends to defend itself vigorously. The outcome of these matters, individually and in the aggregate, is not expected to have a material impact on the Company’s cash flows, results of operations, or financial position. I NDEMNIFICATION O BLIGATIONS The Company’s standard product sales and license agreements entered into in the ordinary course of business typically contain an indemnification provision pursuant to which the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with any patent, copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. Such provisions generally survive termination or expiration of the agreements. The potential amount of future payments the Company could be required to make under these indemnification provisions is, in some instances, unlimited. On January 26, 2016, the Company received cash of $175 based on the lapse of the indemnity escrow period associated with the sale of the Company’s former MIS operating segment in January of 2015. The Company provided indemnification to the buyer of the MIS business, generally covering pre-closing tax liabilities of the business and buyer damages resulting from breaches of representations, warranties and covenants contained in the purchase and sale agreement. The Company’s indemnification obligations regarding the MIS operating segment are generally subject to caps. No claims were made against the escrow. P URCHASE C OMMITMENTS As of December 31, 2015 , the Company has entered into non-cancelable purchase commitments for certain inventory components and services used in its normal operations. The purchase commitments covered by these agreements are for less than one year and aggregate to $24,191 . L EASE C OMMITMENTS On September 1, 2015, the Company entered into a lease agreement for a new headquarters location in Andover, Massachusetts. The Company expects to occupy the new office space by May 2017. The Company's total obligation for the base rent is $21,070 based on utilization of not less than 114 square feet over the twelve year term of the lease. The Company has an option to expand its footprint to 145 square feet, or the entire facility, which would increase its corresponding total base rent obligation. This option must be exercised by the Company on or before December 31, 2018. O THER As part of the Company's strategy for growth, the Company continues to explore acquisitions or strategic alliances. The associated acquisition costs incurred in the form of professional fees and services may be material to the future periods in which they occur, regardless of whether the acquisition is ultimately completed. The Company may elect from time to time to purchase and subsequently retire shares of common stock in order to settle an individual employees’ tax liability associated with vesting of a restricted stock award or exercise of stock options. These transactions would be treated as a use of cash in financing activities in the Company's statement of cash flows. |
Debt
Debt | 6 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt S ENIOR U NSECURED C REDIT F ACILITY As of December 31, 2015 , there was $162,697 of borrowing capacity available under the Company's credit agreement with a syndicate of commercial banks, with Key Bank National Association acting as the administrative agent. The Company can borrow up to $200,000 based on the Company's consolidated EBITDA for the trailing four quarters and subject to compliance with the financial covenants in the credit agreement. There were no borrowings outstanding on the credit agreement; however, there were outstanding letters of credit of $5,113 . The Company was in compliance with all covenants and conditions under the credit agreement. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation S TOCK O PTION P LANS The number of shares authorized for issuance under the Company’s 2005 Stock Incentive Plan, as amended and restated (the “2005 Plan”), is 15,252 shares at December 31, 2015 . On October 21, 2015, the Company's number of shares authorized for issuance under the 2005 Plan increased 2 shares as a result of cancellations, forfeitures or terminations under the 1997 Plan. The 2005 Plan provides for the grant of non-qualified and incentive stock options, restricted stock, stock appreciation rights and deferred stock awards to employees and non-employees. All stock options are granted with an exercise price of not less than 100% of the fair value of the Company’s common stock at the date of grant and the options generally have a term of seven years. There were 2,786 shares available for future grant under the 2005 Plan at December 31, 2015 . As part of the Company's ongoing annual equity grant program for employees, the Company grants performance-based restricted stock awards to certain executives pursuant to the 2005 Plan. These performance awards vest over a three or four year requisite service period subject to the achievement of specific financial performance targets related to adjusted EBITDA as a percentage of revenue. Based on the performance targets, these awards require graded vesting that results in more rapid expense recognition compared to traditional time-based vesting over the same vesting period. The Company monitors the probability of achieving the performance targets on a quarterly basis and may adjust periodic stock compensation expense accordingly. E MPLOYEE S TOCK P URCHASE P LAN The number of shares authorized for issuance under the Company’s 1997 Employee Stock Purchase Plan, as amended and restated (“ESPP”), is 1,800 shares. On December 8, 2015, the Company's shareholders approved an increase in the number of shares authorized for issuance under the ESPP to 1,800 , an increase of 400 . Under the ESPP, rights are granted to purchase shares of common stock at 85% of the lesser of the market value of such shares at either the beginning or the end of each six-month offering period. The ESPP permits employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation as defined in the ESPP. There were 46 and 41 shares issued under the ESPP during the six months ended December 31, 2015 and 2014 , respectively. Shares available for future purchase under the ESPP totaled 440 at December 31, 2015 . S TOCK O PTION AND A WARD A CTIVITY The following table summarizes activity of the Company’s stock option plans since June 30, 2015 : Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2015 830 $ 13.43 1.66 Granted — — Exercised (175 ) 9.82 Cancelled (24 ) 17.25 Outstanding at December 31, 2015 631 $ 14.29 1.42 The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2015 : Non-vested Restricted Stock Awards Number of Weighted Average Outstanding at June 30, 2015 1,866 $ 10.72 Granted 518 15.90 Vested (703 ) 10.78 Forfeited (84 ) 10.79 Outstanding at December 31, 2015 1,597 $ 12.37 S TOCK - BASED C OMPENSATION E XPENSE The Company recognized the full expense of its share-based payment plans in the consolidated statements of operations for the three and six months ended December 31, 2015 and 2014 in accordance with FASB ASC 718. During the three and six months ended December 31, 2015, the Company capitalized $153 of stock-based compensation expense on the consolidated balance sheets. In the prior years, the Company did not capitalize any such costs on the consolidated balance sheets, as such costs were not material. Under the fair value recognition provisions of FASB ASC 718, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the service period, net of estimated forfeitures. The following table presents share-based compensation expenses from continuing operations included in the Company’s consolidated statements of operations: Three Months Ended December 31, Six Months Ended December 31, 2015 2014 2015 2014 Cost of revenues $ 6 $ 115 $ 155 $ 266 Selling, general and administrative 2,063 1,778 4,191 3,744 Research and development 323 363 748 797 Share-based compensation expense before tax 2,392 2,256 5,094 4,807 Income tax benefit (992 ) (839 ) (2,033 ) (1,759 ) Share-based compensation expense, net of income taxes $ 1,400 $ 1,417 $ 3,061 $ 3,048 |
Operating Segment, Geographic I
Operating Segment, Geographic Information and Significant Customers | 6 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Operating Segment, Geographic Information and Significant Customers | Operating Segment, Geographic Information and Significant Customers Operating segments are defined as components of an enterprise evaluated regularly by the Company's chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company utilizes the management approach for determining reportable segments in accordance with the authoritative guidance. The following operating segments were determined based upon the nature of the products offered to customers, the market characteristics of each operating segment and the Company's management structure: • Mercury Commercial Electronics (“MCE”): this operating segment designs, develops and builds open sensor processing products and subsystems that include embedded processing modules and subsystems, RF and microwave multi-function assemblies as well as subsystems, and RF and microwave components. MCE also provides technology building blocks to Mercury Defense Systems on key classified and unclassified programs. • Mercury Defense Systems (“MDS”): this operating segment provides significant capabilities relating to pre-integrated, open, affordable EW, EA and ECM subsystems, significant capabilities in signals intelligence, EO/IR processing technologies, and radar environment test and simulation systems, leveraging commercially available technologies and solutions (or “building blocks”) from the MCE business and other commercial suppliers. Recently, MDS has added advanced security technology and development services related to secure embedded processing applications. The Company's operating segments were evaluated in accordance with FASB ASC 280 “ Segment Reporting ” in order to determine which operating segments qualified as reportable segments. The Company determined that both MCE and MDS met the quantitative thresholds for reporting. The accounting policies of the reportable segments are the same as those described in “Note B: Summary of Significant Accounting Policies.” The profitability measure employed by the Company and its CODM as the basis for allocating resources to segments and assessing segment performance is adjusted EBITDA. The Company believes the adjusted EBITDA financial measure assists in providing an enhanced understanding of its underlying operational measures to manage its business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. Adjusted EBITDA is defined as income from continuing operations before interest income and expense, income taxes, depreciation, amortization of intangible assets, restructuring and other charges, impairment of long-lived assets, acquisition and financing costs, fair value adjustments from purchase accounting, litigation and settlement expenses, and stock-based compensation expense. Additionally, asset information by reportable segment is not reported because the Company and its CODM utilize consolidated asset information when making business decisions. The following is a summary of the performance of the Company's operations by reportable segment: MCE MDS Eliminations Total T HREE M ONTHS E NDED DECEMBER 31, 2015 Net revenues to unaffiliated customers $ 53,015 $ 7,947 $ (545 ) $ 60,417 Intersegment revenues 1,344 77 (1,421 ) — Net revenues $ 54,359 $ 8,024 $ (1,966 ) $ 60,417 Adjusted EBITDA $ 12,873 $ (418 ) $ 124 $ 12,579 T HREE M ONTHS E NDED DECEMBER 31, 2014 Net revenues to unaffiliated customers $ 51,806 $ 4,767 $ 516 $ 57,089 Intersegment revenues 923 72 (995 ) — Net revenues $ 52,729 $ 4,839 $ (479 ) $ 57,089 Adjusted EBITDA $ 10,510 $ 284 $ (87 ) $ 10,707 SIX M ONTHS E NDED DECEMBER 31, 2015 Net revenues to unaffiliated customers $ 103,021 $ 15,964 $ (159 ) $ 118,826 Intersegment revenues 4,360 105 (4,465 ) — Net revenues $ 107,381 $ 16,069 $ (4,624 ) $ 118,826 Adjusted EBITDA $ 24,329 $ 64 $ 27 $ 24,420 SIX M ONTHS E NDED DECEMBER 31, 2014 Net revenues to unaffiliated customers $ 100,362 $ 10,147 $ 641 $ 111,150 Intersegment revenues 1,425 211 (1,636 ) — Net revenues $ 101,787 $ 10,358 $ (995 ) $ 111,150 Adjusted EBITDA $ 17,799 $ 770 $ 141 $ 18,710 The following table reconciles the Company’s income from continuing operations, the most directly comparable GAAP financial measure, to its adjusted EBITDA: Three Months Ended December 31, Six Months Ended December 31, 2015 2014 2015 2014 Income from continuing operations $ 4,793 $ 2,886 $ 6,753 $ 3,603 Interest (income) expense, net (21 ) 4 (43 ) 9 Income taxes 1,680 1,047 2,944 1,047 Depreciation 1,620 1,590 3,208 3,290 Amortization of intangible assets 1,638 1,762 3,351 3,524 Restructuring and other charges 221 1,162 559 2,430 Impairment of long-lived assets 231 — 231 — Acquisition and financing costs 25 — 2,323 — Fair value adjustments from purchase accounting — — — — Litigation and settlement expenses — — — — Stock-based compensation expense 2,392 2,256 5,094 4,807 Adjusted EBITDA $ 12,579 $ 10,707 $ 24,420 $ 18,710 The geographic distribution of the Company’s revenues is summarized as follows: US Europe Asia Pacific Eliminations Total T HREE M ONTHS E NDED DECEMBER 31, 2015 Net revenues to unaffiliated customers $ 58,211 $ 653 $ 1,553 $ — $ 60,417 Inter-geographic revenues 1,949 371 — (2,320 ) — Net revenues $ 60,160 $ 1,024 $ 1,553 $ (2,320 ) $ 60,417 T HREE M ONTHS E NDED DECEMBER 31, 2014 Net revenues to unaffiliated customers $ 55,625 $ 355 $ 1,109 $ — $ 57,089 Inter-geographic revenues 964 179 — (1,143 ) — Net revenues $ 56,589 $ 534 $ 1,109 $ (1,143 ) $ 57,089 SIX M ONTHS E NDED DECEMBER 31, 2015 Net revenues to unaffiliated customers $ 115,573 $ 1,111 $ 2,142 $ — $ 118,826 Inter-geographic revenues 3,203 402 — (3,605 ) — Net revenues $ 118,776 $ 1,513 $ 2,142 $ (3,605 ) $ 118,826 SIX M ONTHS E NDED DECEMBER 31, 2014 Net revenues to unaffiliated customers $ 108,710 $ 701 $ 1,739 $ — $ 111,150 Inter-geographic revenues 1,547 179 — (1,726 ) — Net revenues $ 110,257 $ 880 $ 1,739 $ (1,726 ) $ 111,150 Foreign revenue is based on the country in which the Company’s legal subsidiary is domiciled. The geographic distribution of the Company’s long-lived assets is summarized as follows: US Europe Asia Pacific Eliminations Total December 31, 2015 $ 13,215 $ 83 $ 26 $ — $ 13,324 June 30, 2015 $ 13,127 $ 68 $ 31 $ — $ 13,226 Identifiable long-lived assets exclude goodwill and intangible assets. Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows: Three Months Ended December 31, Six Months Ended December 31, 2015 2014 2015 2014 Raytheon Company 29 % 36 % 33 % 35 % Lockheed Martin Corporation 26 % 18 % 21 % 24 % 55 % 54 % 54 % 59 % While the Company typically has customers from which it derives 10% or more of its revenue, the sales to each of these customers are spread across multiple programs and platforms. Programs comprising 10% or more of the Company’s revenues for the periods shown below are as follows: Three Months Ended Six Months Ended 2015 2014 2015 2014 SEWIP 16 % * 12 % 13 % F-35 13 % 11 % * 11 % Patriot 11 % 18 % 14 % 18 % Aegis * 10 % * 10 % 40 % 39 % 26 % 52 % * Indicates that the amount is less than 10% of the Company’s revenues for the respective period. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events from the date of the consolidated balance sheet through the date the consolidated financial statements were issued. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | B ASIS OF P RESENTATION The accompanying consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to the Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures, normally included in annual consolidated financial statements have been condensed or omitted pursuant to those rules and regulations; however, in the opinion of management the financial information reflects all adjustments, consisting of adjustments of a normal recurring nature, necessary for fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the fiscal year ended June 30, 2015 which are contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on August 13, 2015. The results for the three and six months ended December 31, 2015 are not necessarily indicative of the results to be expected for the full fiscal year. The Company is comprised of the following operating segments: MCE and MDS. See Note L of the Notes to consolidated financial statements for further discussion. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation |
Business Combinations | B USINESS C OMBINATIONS The Company utilizes the acquisition method of accounting under FASB ASC 805, Business Combinations , (“FASB ASC 805”), for all transactions and events which it obtains control over one or more other businesses, to recognize the fair value of all assets and liabilities acquired, even if less than one hundred percent ownership is acquired, and in establishing the acquisition date fair value as the measurement date for all assets and liabilities assumed. The Company also utilizes FASB ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations. |
Use of Estimates | U SE OF E STIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Revenue Recognition | R EVENUE R ECOGNITION The Company relies upon FASB ASC 605, Revenue Recognition to account for its revenue transactions. Revenue is recognized upon shipment provided that title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sales price is fixed or determinable, collection of the related receivable is reasonably assured, and customer acceptance criteria, if any, have been successfully demonstrated. Out-of-pocket expenses that are reimbursable by the customer are included in revenue and cost of revenue. Certain contracts with customers require the Company to perform tests of its products prior to shipment to ensure their performance complies with the Company’s published product specifications and, on occasion, with additional customer-requested specifications. In these cases, the Company conducts such tests and, if they are completed successfully, includes a written confirmation with each order shipped. As a result, at the time of each product shipment, the Company believes that no further customer testing requirements exist and that there is no uncertainty of acceptance by its customer. The Company uses FASB Accounting Standards Update (“ASU”) No. 2009-13 (“FASB ASU 2009-13”), Multiple-Deliverable Revenue Arrangements . FASB ASU 2009-13 establishes a selling price hierarchy for determining the selling price of a deliverable, which includes: (1) vendor-specific objective evidence (“VSOE”) if available; (2) third-party evidence (“TPE”) if VSOE is not available; and (3) best estimated selling price (“BESP”), if neither VSOE nor TPE is available. Additionally, FASB ASU 2009-13 expands the disclosure requirements related to a vendor’s multiple-deliverable revenue arrangements. The Company enters into multiple-deliverable arrangements that may include a combination of hardware components, related integration or other services. These arrangements generally do not include any performance-, cancellation-, termination- or refund-type provisions. Total revenue recognized under multiple-deliverable revenue arrangements was 36% and 42% of total revenues in the three and six months ended December 31, 2015 , respectively. Total revenue recognized under multiple-deliverable revenue arrangements was 26% and 28% of total revenues in the three and six months ended December 31, 2014, respectively. In accordance with the provisions of FASB ASU 2009-13, the Company allocates arrangement consideration to each deliverable in an arrangement based on its relative selling price. The Company generally expects that it will not be able to establish VSOE or TPE due to limited single element transactions and the nature of the markets in which the Company competes, and, as such, the Company typically determines its relative selling price using BESP. The objective of BESP is to determine the price at which the Company would transact if the product or service were sold by the Company on a standalone basis. The Company's determination of BESP involves the consideration of several factors based on the specific facts and circumstances of each arrangement. Specifically, the Company considers the cost to produce the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar parts, the Company’s ongoing pricing strategy and policies (as evident from the price list established and updated by management on a regular basis), the value of any enhancements that have been built into the deliverable and the characteristics of the varying markets in which the deliverable is sold. The Company analyzes the selling prices used in its allocation of arrangement consideration at a minimum on an annual basis. Selling prices will be analyzed on a more frequent basis if a significant change in the Company’s business necessitates a more timely analysis or if the Company experiences significant variances in its selling prices. Each deliverable within the Company’s multiple-deliverable revenue arrangements is accounted for as a separate unit of accounting under the guidance of FASB ASU 2009-13 if both of the following criteria are met: the delivered item or items have value to the customer on a standalone basis; and for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The Company's revenue arrangements generally do not include a general right of return relative to delivered products. The Company considers a deliverable to have standalone value if the item is sold separately by the Company or another vendor or if the item could be resold by the customer. Deliverables not meeting the criteria for being a separate unit of accounting are combined with a deliverable that does meet that criterion. The appropriate allocation of arrangement consideration and recognition of revenue is then determined for the combined unit of accounting. The Company also engages in long-term contracts for development, production and services activities which it accounts for consistent with FASB ASC 605-35, Accounting for Performance of Construction-Type and Certain Production-Type Contracts , and other relevant revenue recognition accounting literature. The Company considers the nature of these contracts and the types of products and services provided when determining the proper accounting for a particular contract. Generally for fixed-price contracts, other than service-type contracts, revenue is recognized primarily under the percentage of completion method or, for certain short-term contracts, by the completed contract method. Revenue from service-type fixed-price contracts is recognized ratably over the contract period or by other appropriate input or output methods to measure service provided, and contract costs are expensed as incurred. The Company establishes billing terms at the time project deliverables and milestones are agreed. The risk to the Company on a fixed-price contract is that if estimates to complete the contract change from one period to the next, profit levels will vary from period to period. For time and materials contracts, revenue reflects the number of direct labor hours expended in the performance of a contract multiplied by the contract billing rate, as well as reimbursement of other billable direct costs. For all types of contracts, the Company recognizes anticipated contract losses as soon as they become known and estimable. The Company also considers whether contracts should be combined or segmented in accordance with the applicable criteria under GAAP. The Company combines closely related contracts when all the applicable criteria under GAAP are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single project, which should be combined to reflect an overall profit rate. Similarly, the Company may separate a project, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria under GAAP are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement was negotiated and the performance criteria. The decision to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. The use of contract accounting requires significant judgment relative to estimating total contract revenues and costs, including assumptions relative to the length of time to complete the contract, the nature and complexity of the work to be performed, anticipated increases in wages and prices for subcontractor services and materials, and the availability of subcontractor services and materials. The Company’s estimates are based upon the professional knowledge and experience of its engineers, program managers and other personnel, who review each long-term contract monthly to assess the contract’s schedule, performance, technical matters and estimated cost at completion. Changes in estimates are applied retrospectively and when adjustments in estimated contract costs are identified, such revisions may result in current period adjustments to earnings applicable to performance in prior periods. Contract costs also may include estimated contract recoveries for matters such as contract changes and claims for unanticipated contract costs. The Company records revenue associated with these matters only when the amount of recovery can be estimated reliably and realization is probable. The Company defines service revenues as revenue from activities that are not associated with the design, development, production, or delivery of tangible assets, software or specific capabilities sold. Examples of the Company's service revenues include: analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. The Company combines its product and service revenues into a single class as service revenues are less than 10 percent of total revenues. The Company does not provide its customers with rights of product return, other than those related to warranty provisions that permit repair or replacement of defective goods. The Company accrues for anticipated warranty costs upon product shipment. Revenues from product royalties are recognized upon invoice by the Company. Additionally, all revenues are reported net of government assessed taxes (e.g. sales taxes or value-added taxes). |
Weighted-Average Shares | W EIGHTED -A VERAGE S HARES Weighted-average shares were calculated as follows: Three Months Ended December 31, Six Months Ended December 31, 2015 2014 2015 2014 Basic weighted-average shares outstanding 33,120 32,052 33,047 31,880 Effect of dilutive equity instruments 711 634 772 840 Diluted weighted-average shares outstanding 33,831 32,686 33,819 32,720 Equity instruments to purchase 2 and 25 shares of common stock were not included in the calculation of diluted net earnings per share for the three and six months ended December 31, 2015 because the equity instruments were anti-dilutive. Equity instruments to purchase 654 and 740 shares of common stock were not included in the calculation of diluted net earnings per share for the three and six months ended December 31, 2014 because the equity instruments were anti-dilutive. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basic and Diluted Weighted Average Shares Outstanding | W EIGHTED -A VERAGE S HARES Weighted-average shares were calculated as follows: Three Months Ended December 31, Six Months Ended December 31, 2015 2014 2015 2014 Basic weighted-average shares outstanding 33,120 32,052 33,047 31,880 Effect of dilutive equity instruments 711 634 772 840 Diluted weighted-average shares outstanding 33,831 32,686 33,819 32,720 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of the Net Purchase Price and Fair Values of Assets and Liabilities Acquired | The following table presents the net purchase price and the preliminary fair values of the assets and liabilities of LIT: Amounts Consideration transferred Cash paid at closing $ 10,290 Working capital adjustment (236 ) Less cash and cash equivalents acquired (290 ) Net purchase price $ 9,764 Estimated fair value of tangible assets acquired and liabilities assumed Cash and cash equivalents $ 290 Accounts receivable and cost in excess of billings 290 Other current and non-current assets 175 Current liabilities (264 ) Estimated fair value of net tangible assets acquired 491 Estimated fair value of identifiable intangible assets 3,960 Estimated fair value of goodwill 5,603 Estimated fair value of assets acquired 10,054 Less cash and cash equivalents acquired (290 ) Net purchase price $ 9,764 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | The amounts reported in loss from discontinued operations, net of income taxes were as follows: Three Months Ended December 31, Six Months Ended December 31, 2014 2014 Net revenues of discontinued operations $ 1,321 $ 3,160 Costs of discontinued operations: Cost of revenues 951 2,176 Selling, general and administrative 600 1,247 Research and development 105 276 Amortization of intangible assets 124 248 Acquisition costs and other related expenses 76 109 Impairment of goodwill 2,283 2,283 Loss from discontinued operations before income taxes (2,818 ) (3,179 ) Tax benefit (197 ) (340 ) Loss from discontinued operations, net of income taxes $ (2,621 ) $ (2,839 ) There were no balances for the assets and liabilities of the discontinued operations for the periods ending December 31, 2015 and June 30, 2015. The depreciation, amortization, and significant operating and investing non-cash items of the discontinued operations were as follows: Three Months Ended December 31, Six Months Ended December 31, 2014 2014 Depreciation $ 45 $ 89 Amortization of intangible assets $ 124 $ 248 Impairment of goodwill $ 2,283 $ 2,283 Stock-based compensation expense $ 62 $ 126 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value | The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at December 31, 2015 : Fair Value Measurements December 31, 2015 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 51,529 $ 51,529 $ — $ — Certificates of deposit 30,025 — 30,025 — Restricted cash 264 264 — — Cost-method investment 500 — — 500 Total $ 82,318 $ 51,793 $ 30,025 $ 500 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The change of the fair value of the Company's cost-method investment is as follows: Fair Value Balance at June 30, 2015 $ 500 Changes in fair value — Balance at December 31, 2015 $ 500 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory was comprised of the following: December 31, 2015 June 30, 2015 Raw materials $ 15,994 $ 15,864 Work in process 13,916 11,190 Finished goods 6,797 4,906 Total $ 36,707 $ 31,960 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table sets forth the changes in the carrying amount of goodwill by reporting unit for the six months ended December 31, 2015 : MCE MDS Total Balance at June 30, 2015 $ 134,378 $ 33,768 $ 168,146 Goodwill arising from the LIT acquisition — 5,603 5,603 Balance at December 31, 2015 $ 134,378 $ 39,371 $ 173,749 |
Restructuring Plan (Tables)
Restructuring Plan (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Expenses by Reportable Segment for Restructuring Plans | The following table presents the detail of activity for the Company’s restructuring plans: Severance & Facilities Total Restructuring liability at June 30, 2015 $ 657 $ 1,335 $ 1,992 MCE restructuring and other charges 424 207 631 MDS restructuring and other charges — — — Cash paid (724 ) (529 ) (1,253 ) Reversals(*) (72 ) — (72 ) Restructuring liability at December 31, 2015 $ 285 $ 1,013 $ 1,298 ( *) Reversals result from unused outplacement services. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Plans | The following table summarizes activity of the Company’s stock option plans since June 30, 2015 : Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2015 830 $ 13.43 1.66 Granted — — Exercised (175 ) 9.82 Cancelled (24 ) 17.25 Outstanding at December 31, 2015 631 $ 14.29 1.42 |
Summary of Nonvested Restricted Stock | The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2015 : Non-vested Restricted Stock Awards Number of Weighted Average Outstanding at June 30, 2015 1,866 $ 10.72 Granted 518 15.90 Vested (703 ) 10.78 Forfeited (84 ) 10.79 Outstanding at December 31, 2015 1,597 $ 12.37 |
Stock Based Compensation Expenses | The following table presents share-based compensation expenses from continuing operations included in the Company’s consolidated statements of operations: Three Months Ended December 31, Six Months Ended December 31, 2015 2014 2015 2014 Cost of revenues $ 6 $ 115 $ 155 $ 266 Selling, general and administrative 2,063 1,778 4,191 3,744 Research and development 323 363 748 797 Share-based compensation expense before tax 2,392 2,256 5,094 4,807 Income tax benefit (992 ) (839 ) (2,033 ) (1,759 ) Share-based compensation expense, net of income taxes $ 1,400 $ 1,417 $ 3,061 $ 3,048 |
Operating Segment, Geographic29
Operating Segment, Geographic Information and Significant Customers (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of Performance of Operations by Reportable Segment | The following is a summary of the performance of the Company's operations by reportable segment: MCE MDS Eliminations Total T HREE M ONTHS E NDED DECEMBER 31, 2015 Net revenues to unaffiliated customers $ 53,015 $ 7,947 $ (545 ) $ 60,417 Intersegment revenues 1,344 77 (1,421 ) — Net revenues $ 54,359 $ 8,024 $ (1,966 ) $ 60,417 Adjusted EBITDA $ 12,873 $ (418 ) $ 124 $ 12,579 T HREE M ONTHS E NDED DECEMBER 31, 2014 Net revenues to unaffiliated customers $ 51,806 $ 4,767 $ 516 $ 57,089 Intersegment revenues 923 72 (995 ) — Net revenues $ 52,729 $ 4,839 $ (479 ) $ 57,089 Adjusted EBITDA $ 10,510 $ 284 $ (87 ) $ 10,707 SIX M ONTHS E NDED DECEMBER 31, 2015 Net revenues to unaffiliated customers $ 103,021 $ 15,964 $ (159 ) $ 118,826 Intersegment revenues 4,360 105 (4,465 ) — Net revenues $ 107,381 $ 16,069 $ (4,624 ) $ 118,826 Adjusted EBITDA $ 24,329 $ 64 $ 27 $ 24,420 SIX M ONTHS E NDED DECEMBER 31, 2014 Net revenues to unaffiliated customers $ 100,362 $ 10,147 $ 641 $ 111,150 Intersegment revenues 1,425 211 (1,636 ) — Net revenues $ 101,787 $ 10,358 $ (995 ) $ 111,150 Adjusted EBITDA $ 17,799 $ 770 $ 141 $ 18,710 |
Reconciliation of Net Income (loss), Most Directly Comparable GAAP Financial Measure to Adjusted EBITDA | The following table reconciles the Company’s income from continuing operations, the most directly comparable GAAP financial measure, to its adjusted EBITDA: Three Months Ended December 31, Six Months Ended December 31, 2015 2014 2015 2014 Income from continuing operations $ 4,793 $ 2,886 $ 6,753 $ 3,603 Interest (income) expense, net (21 ) 4 (43 ) 9 Income taxes 1,680 1,047 2,944 1,047 Depreciation 1,620 1,590 3,208 3,290 Amortization of intangible assets 1,638 1,762 3,351 3,524 Restructuring and other charges 221 1,162 559 2,430 Impairment of long-lived assets 231 — 231 — Acquisition and financing costs 25 — 2,323 — Fair value adjustments from purchase accounting — — — — Litigation and settlement expenses — — — — Stock-based compensation expense 2,392 2,256 5,094 4,807 Adjusted EBITDA $ 12,579 $ 10,707 $ 24,420 $ 18,710 |
Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations | The geographic distribution of the Company’s revenues is summarized as follows: US Europe Asia Pacific Eliminations Total T HREE M ONTHS E NDED DECEMBER 31, 2015 Net revenues to unaffiliated customers $ 58,211 $ 653 $ 1,553 $ — $ 60,417 Inter-geographic revenues 1,949 371 — (2,320 ) — Net revenues $ 60,160 $ 1,024 $ 1,553 $ (2,320 ) $ 60,417 T HREE M ONTHS E NDED DECEMBER 31, 2014 Net revenues to unaffiliated customers $ 55,625 $ 355 $ 1,109 $ — $ 57,089 Inter-geographic revenues 964 179 — (1,143 ) — Net revenues $ 56,589 $ 534 $ 1,109 $ (1,143 ) $ 57,089 SIX M ONTHS E NDED DECEMBER 31, 2015 Net revenues to unaffiliated customers $ 115,573 $ 1,111 $ 2,142 $ — $ 118,826 Inter-geographic revenues 3,203 402 — (3,605 ) — Net revenues $ 118,776 $ 1,513 $ 2,142 $ (3,605 ) $ 118,826 SIX M ONTHS E NDED DECEMBER 31, 2014 Net revenues to unaffiliated customers $ 108,710 $ 701 $ 1,739 $ — $ 111,150 Inter-geographic revenues 1,547 179 — (1,726 ) — Net revenues $ 110,257 $ 880 $ 1,739 $ (1,726 ) $ 111,150 Foreign revenue is based on the country in which the Company’s legal subsidiary is domiciled. The geographic distribution of the Company’s long-lived assets is summarized as follows: US Europe Asia Pacific Eliminations Total December 31, 2015 $ 13,215 $ 83 $ 26 $ — $ 13,324 June 30, 2015 $ 13,127 $ 68 $ 31 $ — $ 13,226 |
Customers Comprising Ten Percent or More Revenues | Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows: Three Months Ended December 31, Six Months Ended December 31, 2015 2014 2015 2014 Raytheon Company 29 % 36 % 33 % 35 % Lockheed Martin Corporation 26 % 18 % 21 % 24 % 55 % 54 % 54 % 59 % |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Programs comprising 10% or more of the Company’s revenues for the periods shown below are as follows: Three Months Ended Six Months Ended 2015 2014 2015 2014 SEWIP 16 % * 12 % 13 % F-35 13 % 11 % * 11 % Patriot 11 % 18 % 14 % 18 % Aegis * 10 % * 10 % 40 % 39 % 26 % 52 % * Indicates that the amount is less than 10% of the Company’s revenues for the respective period. |
Description of Business (Detail
Description of Business (Details) | 6 Months Ended |
Dec. 31, 2015programcontractor | |
Accounting Policies [Abstract] | |
Number of programs using products and services | program | 300 |
Number of contractors using products and services | contractor | 25 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Accounting Policies [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2 | 654 | 25 | 740 |
Multiple Delivery Revenue [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage Of Revenue Recognized | 36.00% | 26.00% | 42.00% | 28.00% |
Basic and Diluted Weighted Aver
Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2 | 654 | 25 | 740 |
Basic weighted-average shares outstanding | 33,120 | 32,052 | 33,047 | 31,880 |
Effect of dilutive equity instruments | 711 | 634 | 772 | 840 |
Diluted weighted-average shares outstanding | 33,831 | 32,686 | 33,819 | 32,720 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Dec. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 |
Business Acquisition [Line Items] | |||||
Cash paid at closing | $ 9,764 | $ 0 | |||
Estimated fair value of goodwill | $ 173,749 | 173,749 | $ 168,146 | ||
Lewis Innovative Technologies, Inc. (LIT) [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash paid at closing | $ 9,764 | ||||
Escrow deposit | 1,000 | ||||
Estimated fair value of identifiable intangible assets | 3,960 | ||||
Estimated fair value of goodwill | 5,603 | ||||
Revenue of acquiree since acquisition date | 30 | 30 | |||
Net loss of acquiree since acquisition date | $ (40) | $ (40) | |||
Impairment expense related to pre-existing relationship | 231 | ||||
Developed Technology Rights [Member] | Lewis Innovative Technologies, Inc. (LIT) [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated fair value of identifiable intangible assets | 3,240 | ||||
Customer Relationships [Member] | Lewis Innovative Technologies, Inc. (LIT) [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated fair value of identifiable intangible assets | 590 | ||||
Backlog [Member] | Lewis Innovative Technologies, Inc. (LIT) [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated fair value of identifiable intangible assets | $ 130 |
Acquisitions - Net Purchase Pri
Acquisitions - Net Purchase Price and Fair Values of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Dec. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 |
Consideration transferred | ||||
Net purchase price | $ 9,764 | $ 0 | ||
Estimated fair value of tangible assets acquired and liabilities assumed | ||||
Estimated fair value of goodwill | $ 173,749 | $ 168,146 | ||
Lewis Innovative Technologies, Inc. (LIT) [Member] | ||||
Consideration transferred | ||||
Cash paid at closing | $ 10,290 | |||
Working capital adjustment | (236) | |||
Less cash and cash equivalents acquired | (290) | |||
Net purchase price | 9,764 | |||
Estimated fair value of tangible assets acquired and liabilities assumed | ||||
Cash and cash equivalents | 290 | |||
Accounts receivable and cost in excess of billings | 290 | |||
Other current and non-current assets | 175 | |||
Current liabilities | (264) | |||
Estimated fair value of net tangible assets acquired | 491 | |||
Estimated fair value of identifiable intangible assets | 3,960 | |||
Estimated fair value of goodwill | 5,603 | |||
Estimated fair value of assets acquired | $ 10,054 |
Discontinued Operations - (Loss
Discontinued Operations - (Loss) Income from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Costs of discontinued operations: | ||||
Impairment of goodwill | $ 2,283 | $ 2,283 | ||
(Loss) income from discontinued operations | $ 0 | (2,621) | $ 0 | (2,839) |
MIS [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues of discontinued operations | 1,321 | 3,160 | ||
Costs of discontinued operations: | ||||
Cost of revenues | 951 | 2,176 | ||
Selling, general and administrative | 600 | 1,247 | ||
Research and development | 105 | 276 | ||
Amortization of intangible assets | 124 | 248 | ||
Disposal Group, Including Discontinued Operation, Acquisition Costs and Other Related Charges | 76 | 109 | ||
(Loss) income from discontinued operations before income taxes | (2,818) | (3,179) | ||
Tax (benefit) provision | (197) | (340) | ||
(Loss) income from discontinued operations | $ (2,621) | $ (2,839) |
Discontinued Operations - Depre
Discontinued Operations - Depreciation, Amortization, Capital Expenditures, and Significant Noncash Items (Details) - MIS [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2014 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation | $ 45 | $ 89 |
Amortization of intangible assets | 124 | 248 |
Impairment of goodwill | 2,283 | 2,283 |
Stock-based compensation expense | $ 62 | $ 126 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 500 | $ 500 |
Assets: | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Assets: | ||
Fair value measurement disclosure | 51,793 | |
Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Assets: | ||
Fair value measurement disclosure | 30,025 | |
Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Assets: | ||
Fair value measurement disclosure | 500 | |
Cash and cash equivalents | Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Assets: | ||
Fair value measurement disclosure | 51,529 | |
Cash and cash equivalents | Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Cash and cash equivalents | Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Assets: | ||
Fair value measurement disclosure | 30,025 | |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Restricted cash | Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Assets: | ||
Fair value measurement disclosure | 264 | |
Restricted cash | Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Restricted cash | Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Cost-method Investments [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Cost-method Investments [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Cost-method Investments [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Assets: | ||
Fair value measurement disclosure | 500 | |
Fair Value | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Fair value measurement disclosure | 82,318 | |
Fair Value | Cash and cash equivalents | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Fair value measurement disclosure | 51,529 | |
Fair Value | Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Fair value measurement disclosure | 30,025 | |
Fair Value | Restricted cash | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Fair value measurement disclosure | 264 | |
Fair Value | Cost-method Investments [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Fair value measurement disclosure | $ 500 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 15,994 | $ 15,864 |
Work in process | 13,916 | 11,190 |
Finished goods | 6,797 | 4,906 |
Total | $ 36,707 | $ 31,960 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Inventory [Line Items] | ||
Increase in Inventory | $ 4,677,000 | $ (1,584,000) |
Production Cycle Term | Longer than one year | |
Product | ||
Schedule of Inventory [Line Items] | ||
Inventory relating to contracts having production cycles longer than one year | $ 0 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 168,146 |
Goodwill, Other Changes | 5,603 |
Ending Balance | 173,749 |
MCE | |
Goodwill [Roll Forward] | |
Beginning Balance | 134,378 |
Goodwill, Other Changes | 0 |
Ending Balance | 134,378 |
MDS | |
Goodwill [Roll Forward] | |
Beginning Balance | 33,768 |
Goodwill, Other Changes | 5,603 |
Ending Balance | $ 39,371 |
Restructuring Plan - Additional
Restructuring Plan - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Current | $ 1,298 | $ 1,298 | $ 1,992 | ||
Restructuring expenses | $ 221 | $ 1,162 | $ 559 | $ 2,430 |
Expenses by Reportable Segment
Expenses by Reportable Segment for Restructuring Plans (Detail) $ in Thousands | 6 Months Ended | |
Dec. 31, 2015USD ($) | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability at beginning of period | $ 1,992 | |
Cash paid | (1,253) | |
Reversals | (72) | [1] |
Restructuring liability at end of period | 1,298 | |
Severance & Related [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability at beginning of period | 657 | |
Cash paid | (724) | |
Reversals | (72) | [1] |
Restructuring liability at end of period | 285 | |
Facility & Other [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability at beginning of period | 1,335 | |
Cash paid | (529) | |
Reversals | 0 | |
Restructuring liability at end of period | 1,013 | |
MCE | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring, Settlement and Impairment Provisions | 631 | |
MCE | Severance & Related [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring, Settlement and Impairment Provisions | 424 | |
MCE | Facility & Other [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring, Settlement and Impairment Provisions | 207 | |
MDS | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring, Settlement and Impairment Provisions | 0 | |
MDS | Severance & Related [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring, Settlement and Impairment Provisions | 0 | |
MDS | Facility & Other [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring, Settlement and Impairment Provisions | $ 0 | |
[1] | Reversals result from unused outplacement services. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2016 | |
Tax Credit Carryforward [Line Items] | ||||||
Income tax (benefit) expense | $ 1,680 | $ 1,047 | $ 2,944 | $ 1,047 | ||
(Loss) income from operations before income taxes | 6,473 | $ 3,933 | 9,697 | $ 4,650 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 757 | $ 757 | ||||
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | $ 568 | |||||
Scenario, Forecast [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | $ 1,568 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) ft² in Thousands, $ in Thousands | Jan. 26, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 01, 2015ft² |
Non-cancelable purchase commitments | |||
Long-term Purchase Commitment [Line Items] | |||
Purchase commitments for less than one year | $ 24,191 | ||
Andover, Massachusetts Lease [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Operating Leases, Future Minimum Payments Due | $ 21,070 | ||
Area of Leased Property (in sq feet) | ft² | 114 | ||
Andover, Massachusetts Lease [Member] | Pro Forma [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Area of Leased Property (in sq feet) | ft² | 145 | ||
Subsequent Event [Member] | Indemnification Agreement [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Proceeds from Other Deposits | $ 175 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Senior Unsecured Credit Facilities - USD ($) | Dec. 31, 2015 | Oct. 12, 2012 |
Debt Instrument [Line Items] | ||
Remaining borrowing capacity | $ 162,697,000 | |
Borrowings outstanding | 0 | |
Amount of outstanding letter of credit | $ 5,113,000 | |
Key Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 153 | $ 153 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 46 | 41 | |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance under stock incentive plan | 1,800 | 1,800 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 400 | ||
Shares available for future grant | 440 | 440 | |
Purchase price as a percentage of the lesser of the market value of such shares at either the beginning or the end of each nine-month offering period | 85.00% | ||
Percentage of employee compensation that may be uses to purchase common stock through payroll deductions, maximum | 10.00% | ||
2005 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance under stock incentive plan | 15,252 | 15,252 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2 | ||
Exercise price of stock option, percentage | 100.00% | 100.00% | |
Shares available for future grant | 2,786 | 2,786 | |
2005 Stock Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of stock option | 7 years | ||
Executive Officer [Member] | 2005 Stock Incentive Plan | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Vice President [Member] | 2005 Stock Incentive Plan | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years |
Summary of Stock Option Plans (
Summary of Stock Option Plans (Detail) - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Number of Shares | |||
Granted | 46 | 41 | |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 400 | ||
Stock Options | |||
Number of Shares | |||
Outstanding at beginning of period | 830 | ||
Granted | 0 | ||
Exercised | (175) | ||
Cancelled | (24) | ||
Outstanding at end of period | 631 | 830 | |
Weighted Average Exercise Price | |||
Outstanding at beginning of period | $ 13.43 | ||
Granted | 0 | ||
Exercised | 9.82 | ||
Cancelled | 17.25 | ||
Outstanding at end of period | $ 14.29 | $ 13.43 | |
Weighted Average Remaining Contractual Term (Years) | |||
Outstanding at end of period | 1 year 5 months 2 days | 1 year 7 months 28 days | |
2005 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2 |
Summary of Nonvested Restricted
Summary of Nonvested Restricted Stock (Detail) - Restricted Stock shares in Thousands | 6 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Number of Shares | |
Beginning Balance | shares | 1,866 |
Granted | shares | 518 |
Vested | shares | (703) |
Forfeited | shares | (84) |
Ending Balance | shares | 1,597 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 10.72 |
Granted | $ / shares | 15.90 |
Vested | $ / shares | 10.78 |
Forfeited | $ / shares | 10.79 |
Ending Balance | $ / shares | $ 12.37 |
Stock Based Compensation Expens
Stock Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense before tax | $ 2,392 | $ 2,256 | $ 5,094 | $ 4,807 |
Income taxes | (992) | (839) | (2,033) | (1,759) |
Net compensation expense | 1,400 | 1,417 | 3,061 | 3,048 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense before tax | 6 | 115 | 155 | 266 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense before tax | 2,063 | 1,778 | 4,191 | 3,744 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense before tax | $ 323 | $ 363 | $ 748 | $ 797 |
Operating Segment, Geographic50
Operating Segment, Geographic Information and Significant Customers - Summary of Performance of Operations by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ (60,417) | $ (57,089) | $ (118,826) | $ (111,150) |
Adjusted EBITDA | 12,579 | 10,707 | 24,420 | 18,710 |
MCE | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | (53,015) | (51,806) | (103,021) | (100,362) |
MDS | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | (7,947) | (4,767) | (15,964) | (10,147) |
Segment Reconciling Items [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 545 | (516) | 159 | (641) |
Intersegment Eliminations [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1,421 | 995 | 4,465 | 1,636 |
Intersegment Eliminations [Member] | MCE | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1,344 | 923 | 4,360 | 1,425 |
Intersegment Eliminations [Member] | MDS | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 77 | 72 | 105 | 211 |
Operating Segments [Member] | MCE | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | (54,359) | (52,729) | (107,381) | (101,787) |
Adjusted EBITDA | 12,873 | 10,510 | 24,329 | 17,799 |
Operating Segments [Member] | MDS | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | (8,024) | (4,839) | (16,069) | (10,358) |
Adjusted EBITDA | (418) | 284 | 64 | 770 |
Segment Reconciling Items and Intersegment Eliminations [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1,966 | 479 | 4,624 | 995 |
Adjusted EBITDA | $ 124 | $ (87) | $ 27 | $ 141 |
Operating Segment, Geographic51
Operating Segment, Geographic Information and Significant Customers - Reconciles Net Income (loss), Most Directly Comparable GAAP Financial Measure to Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | ||||
Income from continuing operations | $ 4,793 | $ 2,886 | $ 6,753 | $ 3,603 |
Interest expense, net | (21) | 4 | (43) | 9 |
Tax provision | 1,680 | 1,047 | 2,944 | 1,047 |
Depreciation | 1,620 | 1,590 | 3,208 | 3,290 |
Amortization of intangible assets | 1,638 | 1,762 | 3,351 | 3,524 |
Restructuring and other charges | 221 | 1,162 | 559 | 2,430 |
Impairment of Intangible Assets, Finite-lived | 231 | 0 | 231 | 0 |
Stock-based compensation expense | 2,392 | 2,256 | 5,094 | 4,807 |
Adjusted EBITDA | 12,579 | 10,707 | 24,420 | 18,710 |
Acquisition and Financing Costs | 25 | 0 | 2,323 | 0 |
Fair Value Adjustments From Purchase Accounting | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Segment, Geographic52
Operating Segment, Geographic Information and Significant Customers - Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | $ (60,417) | $ (57,089) | $ (118,826) | $ (111,150) | |
Identifiable long-lived assets | 13,324 | 13,324 | $ 13,226 | ||
US | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | (58,211) | (55,625) | (115,573) | (108,710) | |
Europe | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | (653) | (355) | (1,111) | (701) | |
Asia Pacific | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | (1,553) | (1,109) | (2,142) | (1,739) | |
Reportable Geographical Components [Member] | US | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | (60,160) | (56,589) | (118,776) | (110,257) | |
Identifiable long-lived assets | 13,215 | 13,215 | 13,127 | ||
Reportable Geographical Components [Member] | Europe | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | (1,024) | (534) | (1,513) | (880) | |
Identifiable long-lived assets | 83 | 83 | 68 | ||
Reportable Geographical Components [Member] | Asia Pacific | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | (1,553) | (1,109) | (2,142) | (1,739) | |
Identifiable long-lived assets | 26 | 26 | 31 | ||
Geography Eliminations [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | 2,320 | 1,143 | 3,605 | 1,726 | |
Identifiable long-lived assets | 0 | 0 | $ 0 | ||
Geography Eliminations [Member] | US | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | 1,949 | 964 | 3,203 | 1,547 | |
Geography Eliminations [Member] | Europe | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | 371 | 179 | 402 | 179 | |
Geography Eliminations [Member] | Asia Pacific | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Segment, Geographic53
Operating Segment, Geographic Information and Significant Customers - Customers Comprising Ten Percent or more Revenues (Detail) - Sales Revenue, Net [Member] | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 40.00% | 39.00% | 26.00% | 52.00% |
Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 55.00% | 54.00% | 54.00% | 59.00% |
Customer Concentration Risk [Member] | Raytheon Company [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 29.00% | 36.00% | 33.00% | 35.00% |
Customer Concentration Risk [Member] | Lockheed Martin Corporation [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 26.00% | 18.00% | 21.00% | 24.00% |
Operating Segment, Geographic54
Operating Segment, Geographic Information and Significant Customers - Programs Comprising Ten Percent or more of Company's Revenue (Detail) - Sales Revenue, Net [Member] | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014Rate | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 40.00% | 39.00% | 26.00% | 52.00% |
SEWIP Program [Member] | Program Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 16.00% | 12.00% | 13.00% | |
F-35 Program [Member] | Program Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 13.00% | 11.00% | 11.00% | |
Patriot Program [Member] | Program Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 11.00% | 18.00% | 14.00% | 18.00% |
Aegis Program [Member] | Program Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% |