Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2015 | Jan. 22, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | EXTREME NETWORKS INC | |
Entity Central Index Key | 1,078,271 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | EXTR | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 103,319,359 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 85,865 | $ 76,225 |
Accounts receivable, net of allowances of $6,464 at December 31, 2015 and $2,396 at June 30, 2015 | 73,110 | 92,737 |
Inventories | 56,601 | 58,014 |
Deferred income taxes | 705 | 760 |
Prepaid expenses and other current assets | 9,925 | 10,258 |
Total current assets | 226,206 | 237,994 |
Property and equipment, net | 32,948 | 39,862 |
Intangible assets, net | 35,138 | 52,132 |
Goodwill | 70,877 | 70,877 |
Other assets | 27,618 | 27,795 |
Total assets | 392,787 | 428,660 |
Current liabilities: | ||
Current portion of long-term debt | 14,625 | 11,375 |
Accounts payable | 25,536 | 40,135 |
Accrued compensation and benefits | 28,995 | 25,195 |
Accrued warranty | 10,415 | 8,676 |
Deferred revenue, net | 75,548 | 76,551 |
Deferred distributors revenue, net of cost of sales to distributors | 31,677 | 40,875 |
Other accrued liabilities | 29,968 | 32,623 |
Total current liabilities | 216,764 | 235,430 |
Deferred revenue, less current portion | 21,505 | 23,231 |
Long-term debt, less current portion | 47,375 | 55,500 |
Deferred income taxes | 3,471 | 2,979 |
Other long-term liabilities | $ 8,536 | $ 7,285 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Convertible preferred stock, $.001 par value, issuable in series, 2,000,000 shares authorized; none issued | ||
Common stock, $.001 par value, 750,000,000 shares authorized; 103,229,140 shares issued and outstanding at December 31, 2015 and 100,284,106 shares issued and outstanding at June 30, 2015 | $ 103 | $ 100 |
Additional paid-in-capital | 876,225 | 865,282 |
Accumulated other comprehensive loss | (2,576) | (1,291) |
Accumulated deficit | (778,616) | (759,856) |
Total stockholders’ equity | 95,136 | 104,235 |
Total liabilities and stockholders’ equity | $ 392,787 | $ 428,660 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Current assets: | ||
Allowance for doubtful accounts | $ 6,464 | $ 2,396 |
Stockholders’ equity: | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 103,229,140 | 100,284,106 |
Common stock, shares outstanding | 103,229,140 | 100,284,106 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net revenues: | ||||
Product | $ 105,355 | $ 112,501 | $ 196,736 | $ 215,173 |
Service | 33,950 | 34,707 | 67,150 | 68,309 |
Total net revenues | 139,305 | 147,208 | 263,886 | 283,482 |
Cost of revenues: | ||||
Product | 57,103 | 60,496 | 104,037 | 114,521 |
Service | 11,927 | 11,550 | 24,456 | 23,272 |
Total cost of revenues | 69,030 | 72,046 | 128,493 | 137,793 |
Gross profit: | ||||
Product | 48,252 | 52,005 | 92,699 | 100,652 |
Service | 22,023 | 23,157 | 42,694 | 45,037 |
Total gross profit | 70,275 | 75,162 | 135,393 | 145,689 |
Operating expenses: | ||||
Research and development | 20,716 | 24,000 | 40,984 | 47,347 |
Sales and marketing | 37,058 | 43,971 | 73,120 | 88,750 |
General and administrative | 9,775 | 10,306 | 18,951 | 21,380 |
Acquisition and integration costs | 807 | 3,500 | 1,145 | 7,558 |
Restructuring charge, net of reversals | 3,031 | 8,634 | ||
Amortization of intangibles | 4,251 | 4,467 | 8,718 | 8,934 |
Total operating expenses | 75,638 | 86,244 | 151,552 | 173,969 |
Operating loss | (5,363) | (11,082) | (16,159) | (28,280) |
Interest income | 29 | 196 | 56 | 342 |
Interest expense | (809) | (825) | (1,635) | (1,661) |
Other income (expense), net | 112 | (64) | 1,079 | (498) |
Loss before income taxes | (6,031) | (11,775) | (16,659) | (30,097) |
Provision for income taxes | 1,203 | 1,330 | 2,101 | 2,338 |
Net loss | $ (7,234) | $ (13,105) | $ (18,760) | $ (32,435) |
Basic and diluted net income per share: | ||||
Net loss per share - basic (in dollars per share) | $ (0.07) | $ (0.13) | $ (0.18) | $ (0.33) |
Net loss per share - diluted (in dollars per share) | $ (0.07) | $ (0.13) | $ (0.18) | $ (0.33) |
Shares used in per share calculation - basic (in shares) | 102,369 | 98,677 | 101,677 | 97,996 |
Shares used in per share calculation – diluted (in shares) | 102,369 | 98,677 | 101,677 | 97,996 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (7,234) | $ (13,105) | $ (18,760) | $ (32,435) |
Available for sale securities: | ||||
Change in unrealized gains (losses) on available for sale securities, net of taxes | 32 | (25) | ||
Net change in unrealized gains (losses) on available for sale securities, net of taxes | 32 | (25) | ||
Net change in foreign currency translation adjustments | (421) | (654) | (1,285) | (1,420) |
Other comprehensive loss | (421) | (622) | (1,285) | (1,445) |
Total comprehensive loss | $ (7,655) | $ (13,727) | $ (20,045) | $ (33,880) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (18,760) | $ (32,435) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 5,366 | 6,406 |
Amortization of intangible assets | 16,994 | 17,997 |
Provision for doubtful accounts and allowance for sales returns | 2,122 | 2,520 |
Stock-based compensation | 8,616 | 9,563 |
Non-cash restructuring charges | 3,220 | |
Other non-cash charges | (275) | 512 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | 15,180 | 28,624 |
Inventories | 1,413 | 2,679 |
Prepaid expenses and other assets | 277 | (8) |
Accounts payable | (14,628) | 8,196 |
Accrued compensation and benefits | 3,800 | (4,202) |
Deferred revenue | (2,729) | 608 |
Deferred distributor revenue, net of cost of sales to distributors | (6,874) | (811) |
Other current and long term liabilities | 245 | 1,804 |
Net cash provided by operating activities | 13,967 | 41,453 |
Cash flows from investing activities: | ||
Capital expenditures | (1,409) | (3,962) |
Proceeds from maturities of investments and marketable securities | 3,000 | |
Proceeds from sales of investments and marketable securities | 9,051 | |
Purchases of intangible assets | (419) | |
Net cash (used in) provided by investing activities | (1,409) | 7,670 |
Cash flows from financing activities: | ||
Borrowings under Revolving Facility | 15,000 | 24,000 |
Repayment of debt | (19,875) | (56,438) |
Proceeds from issuance of common stock | 2,330 | 1,722 |
Net cash used in financing activities | (2,545) | (30,716) |
Foreign currency effect on cash | (373) | (2,625) |
Net increase in cash and cash equivalents | 9,640 | 15,782 |
Cash and cash equivalents at beginning of period | 76,225 | 73,190 |
Cash and cash equivalents at end of period | $ 85,865 | $ 88,972 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation Extreme Networks, Inc. (“Extreme Networks” or the “Company”) is a leading provider of network infrastructure equipment and markets its products primarily to business, governmental, health care, service provider, and educational customers with a focus on large corporate enterprises and metropolitan service providers on a global basis. The Company conducts its sales and marketing activities on a worldwide basis through distributors, resellers and the Company’s field sales organization. Extreme Networks was incorporated in California in 1996 and reincorporated in Delaware in 1999. The unaudited condensed consolidated financial statements of Extreme Networks included herein have been prepared under the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted under such rules and regulations. The condensed consolidated balance sheet at June 30, 2015 was derived from audited financial statements as of that date but does not include all disclosures required by generally accepted accounting principles for complete financial statements. These interim financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations and cash flows for the interim periods presented and the financial condition of Extreme Networks at December 31, 2015. The results of operations for the three and six months ended December 31, 2015 are not necessarily indicative of the results that may be expected for fiscal 2016 or any future periods. Fiscal Year The Company uses a fiscal calendar year ending on June 30. All references herein to "fiscal 2016" or "2016" represent the fiscal year ending June 30, 2016. Principles of Consolidation The consolidated financial statements include the accounts of Extreme Networks and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Accounting Estimates The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates are used for, but are not limited to, the accounting for the allowances for doubtful accounts and sales returns, determining the fair value of acquired assets and assumed liabilities, estimated selling prices, inventory valuation and purchase commitments, depreciation and amortization, impairment of long-lived assets including goodwill, warranty accruals, restructuring liabilities, measurement of share-based compensation costs and income taxes. Actual results could differ materially from these estimates. The Company predominantly uses the United States Dollar as its functional currency. The functional currency for certain of its foreign subsidiaries is the local currency. For those subsidiaries that operate in a local currency functional environment, all assets and liabilities are translated to United States Dollars at current month end rates of exchange; and revenue and expenses are translated using the monthly average rate. Certain balances included in the condensed consolidated statements of cash flows related to restructuring liabilities for prior periods have been reclassified to conform to the current period presentation. In the condensed consolidated statement of cash flows, the changes in operating assets and liabilities for Other long-term liabilities includes the changes in restructuring liabilities and other accrued liabilities which were previously disclosed separately. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies For a description of significant accounting policies, see Note 3, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company's Annual report on Form 10-K for the fiscal year ended June 30, 2015. There have been no material changes to the Company's significant accounting policies since the filing of the Annual report on Form 10-K. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | 3. Recently Issued Accounting Pronouncements For a description of recently issued accounting pronouncements, see Note 4, Recently Issued Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. The amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period and the amendments for ASU-2015-17 can be applied retrospectively or prospectively. |
Balance Sheet Accounts
Balance Sheet Accounts | 6 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Accounts | 4. Balance Sheet Accounts Cash and Cash Equivalents The following is a summary of cash and available-for-sale securities (in thousands): December 31, 2015 June 30, 2015 Cash $ 81,096 $ 71,455 Cash equivalents $ 4,769 $ 4,770 Total available-for-sale $ 4,769 $ 4,770 Total cash, cash equivalents and available for sale securities $ 85,865 $ 76,225 The Company considers highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Investments with original maturities of greater than three months, but less than one year at the balance sheet date are classified as short-term investments. Inventory Valuation The Company’s inventory balances as of December 31 and June 30, 2015 were $56.6 million and $58.0 million, respectively. The Company values its inventory at lower of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The Company has established inventory allowances primarily determined by the age of inventory or when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Any written down or obsolete inventory subsequently sold has not had a material impact on gross margin for any of the periods disclosed. The following is a summary of our inventory by category (in thousands): December 31, 2015 June 30, 2015 Finished goods $ 52,640 $ 55,301 Raw materials 3,961 2,713 Total Inventory $ 56,601 $ 58,014 Property and Equipment, Net Property and equipment consist of the following (in thousands): December 31, 2015 June 30, 2015 Computer equipment $ 33,943 $ 32,753 Purchased software 5,671 5,425 Office equipment, furniture and fixtures 11,113 10,908 Leasehold improvements 20,682 24,293 Total property and equipment 71,409 73,379 Less: accumulated depreciation and amortization (38,461 ) (33,517 ) Property and equipment, net $ 32,948 $ 39,862 Intangibles The following tables summarize the components of gross and net intangible asset balances (in thousands): Weighted Average Remaining Amortization Gross Accumulated Net Carrying Period Amount Amortization Amount December 31, 2015 Developed technology 0.65 years $ 48,000 $ 36,194 $ 11,806 Customer relationships 0.75 years 37,000 26,722 10,278 Maintenance contracts 2.75 years 17,000 7,367 9,633 Trademarks 0.75 years 2,500 1,805 695 Order backlog 0.00 years 7,400 7,400 — License agreements 9.90 years 3,596 1,494 2,102 Other intangibles 4.20 years 1,426 802 624 Total intangibles, net $ 116,922 $ 81,784 $ 35,138 Weighted Average Remaining Amortization Gross Carrying Accumulated Net Carrying Period Amount Amortization Amount June 30, 2015 Developed technology 1.20 years $ 48,000 $ 28,194 $ 19,806 Customer relationships 1.30 years 37,000 20,556 16,444 Maintenance contracts 3.30 years 17,000 5,667 11,333 Trademarks 1.30 years 2,500 1,389 1,111 Order backlog 0.30 years 7,400 6,967 433 License agreements 10.20 years 10,924 8,620 2,304 Other intangibles 3.80 years 2,684 1,983 701 Total intangibles, net $ 125,508 $ 73,376 $ 52,132 Amortization expense for the three months ended December 31, 2015 and 2014, was $8.1 million and $9.0 million, respectively. For the three months ended December 31, 2015 and 2014 amortization expense of $3.8 million and $4.5 million, respectively, is included in “Cost of revenues for products” on the condensed consolidated statements of operations. Amortization expense for the six months ended December 31, 2015 and 2014, was $17.0 million and $18.0 million, respectively. For the six months ended December 31, 2015 and 2014 amortization expense of $8.3 million and $9.1 million, respectively, is included in “Cost of revenues for products” on the condensed consolidated statements of operations. The remainder of the amortization expense is included in “Amortization of intangibles” on the condensed consolidated statement of operations for all periods. The amortization expense that is recognized in “Cost of revenues for products” is comprised of amortization for developed technology, license agreements and other intangibles. Other Accrued Liabilities The following are the components of other accrued liabilities (in thousands): December 31, 2015 June 30, 2015 Accrued general and administrative costs $ 4,383 $ 1,204 Restructuring 2,588 5,854 Other accrued liabilities 22,997 25,565 Total other accrued liabilities $ 29,968 $ 32,623 Deferred Revenue, Net Deferred revenue, net represents amounts for (i) deferred services revenue (support arrangements, professional services and training), and (ii) deferred product revenue net of the related cost of revenue when the revenue recognition criteria have not been met. The following table summarizes deferred revenue, net (in thousands): December 31, 2015 June 30, 2015 Deferred services $ 84,706 $ 87,441 Deferred product and other revenue 12,347 12,341 Total deferred revenue 97,053 99,782 Less: current portion 75,548 76,551 Non-current deferred revenue, net $ 21,505 $ 23,231 The Company offers for sale to its customers, renewable support arrangements that range from one to five years. Deferred support revenue is included within deferred revenue, net within the services category above. The change in the Company’s deferred support revenue balance in relation to these arrangements was as follows (in thousands): Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Balance beginning of period $ 85,255 $ 87,012 $ 87,441 $ 89,657 New support arrangements 29,773 35,517 56,819 64,056 Recognition of support revenue (30,322 ) (31,156 ) (59,554 ) (62,340 ) Balance end of period 84,706 91,373 84,706 91,373 Less: current portion 63,201 67,433 63,201 67,433 Non-current deferred revenue $ 21,505 $ 23,940 $ 21,505 $ 23,940 Deferred Distributors Revenue, Net of Cost of Sales to Distributors The Company records revenue from its distributors on a sell-through basis, recording deferred revenue and deferred cost of sales associated with all sales transactions to its distributors in “Deferred distributors revenue, net of cost of sales to distributors” in the liability section of its condensed consolidated balance sheet. The amount shown as “Deferred distributors revenue, net of cost of sales to distributors” represents the deferred gross profit on sales to distributors based on contractual pricing. The following table summarizes deferred distributors revenue, net of cost of sales to distributors (in thousands): December 31, 2015 June 30, 2015 Deferred distributors revenue $ 41,653 $ 53,366 Deferred cost of sales to distributors (9,976 ) (12,491 ) Deferred distributors revenue, net of cost of sales to distributors $ 31,677 $ 40,875 Debt The Company’s debt is comprised of the following: December 31, 2015 June 30, 2015 Current portion of long-term debt: Term Loan $ 14,625 $ 11,375 Current portion of long-term debt $ 14,625 $ 11,375 Long-term debt, less current portion: Term Loan $ 37,375 $ 45,500 Revolving Facility 10,000 10,000 Total long-term debt, less current portion 47,375 55,500 Total debt $ 62,000 $ 66,875 During fiscal 2015, the Company amended its credit agreement which provides for a five-year revolving credit facility for up to $50.0 million (the “Revolving Facility”) and a $65.0 million five-year term loan (the “Term Loan”) and together with the Revolving Facility the (“Senior Secured Credit Facilities, as amended”). The Senior Secured Credit Facilities, as amended contains, among others, certain financial covenants that require the Company to maintain defined minimum financial ratios which may limit the Company’s availability to borrowings under the Revolving Facility. As of December 31, 2015, the Company had $32.2 million of availability under the Revolving Facility and is in compliance with its covenants. The Company had $1.0 million of outstanding letters of credit as of December 31, 2015. Guarantees and Product Warranties Networking products may contain undetected hardware or software errors when new products or new versions or updates of existing products are released to the marketplace. In the past, we had experienced such errors in connection with products and product updates. The Company’s standard hardware warranty period is typically 12 months from the date of shipment to end-users and 90 days for software. For certain access products, the Company offers a limited lifetime hardware warranty commencing on the date of shipment from the Company and ending five (5) years following the Company’s announcement of the end of sale of such product. Upon shipment of products to its customers, the Company estimates expenses for the cost to repair or replace products that may be returned under warranty and accrue a liability in cost of product revenue for this amount. The determination of the Company’s warranty requirements is based on actual historical experience with the product or product family, estimates of repair and replacement costs and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors. Upon issuance of a standard product warranty, the Company discloses and recognizes a liability for the obligations it assumes under the product warranty. The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2015 and 2014: Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Balance beginning of period $ 9,244 $ 7,889 $ 8,676 $ 7,551 New warranties issued 2,956 1,683 5,520 3,948 Warranty expenditures (1,785 ) (1,727 ) (3,781 ) (3,654 ) Balance end of period $ 10,415 $ 7,845 $ 10,415 $ 7,845 To facilitate sales of its products in the normal course of business, the Company indemnifies its resellers and end-user customers with respect to certain matters. The Company has agreed to hold the customer harmless against losses arising from a breach of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results or financial position. Advertising Cooperative advertising expenses are recorded as marketing expenses to the extent that an advertising benefit separate from the revenue transaction can be identified and the cash paid does not exceed the fair value of that advertising benefit received. Cooperative advertising obligations with customers are accrued and the costs expensed at the time the related revenue is recognized. If the Company does not meet the criteria for recognizing such cooperative advertising obligations as marketing expense, the costs are recorded as a reduction of revenue. All other advertising costs are expensed as incurred. Advertising expenses for three and six months ended December 31, 2015 and 2014, were immaterial. Concentrations The Company may be subject to concentration of credit risk as a result of certain financial instruments consisting of accounts receivable and short-term investments. The Company does not invest an amount exceeding 10% of its combined cash or cash equivalents in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies and money market accounts. The Company performs ongoing credit evaluations of its customers and generally does not require collateral in exchange for credit. The following table sets forth major customers accounting for 10% or more of our net revenue: Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Tech Data Corporation 19% 15% 16% 15% Westcon Group Inc. 14% 13% 15% 13% Jenne 12% * 11% * * Less than 10% of net revenue |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements A three-tier fair value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows: · Level 1 Inputs - unadjusted quoted prices in active markets for identical assets or liabilities; · Level 2 Inputs - quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and · Level 3 Inputs - unobservable inputs reflecting the Company's own assumptions in measuring the asset or liability at fair value. The Company did not hold any financial liabilities that required measurement at fair value on a recurring basis. The following table presents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets Investments: Money market funds $ 4,769 $ — $ — $ 4,769 Total $ 4,769 $ — $ — $ 4,769 June 30, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets Investments: Money market funds $ 4,770 $ — $ — $ 4,770 Total $ 4,770 $ — $ — $ 4,770 Level 2 investments : the Company includes U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, and state, municipal and provincial obligations for which quoted prices are available as Level 2. There were no transfers of assets or liabilities between Level 1 and Level 2 for the periods presented. The fair value of the borrowings under the Senior Secured Credit Facility, as amended is estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2. Due to the short duration until maturity of the credit facility, the fair value approximates the carrying amount of the Company’s total long-term indebtedness, including current portion of $62.0 million and $66.9 million as of December 31 and June 30, 2015, respectively. Level 3 investments: The Company does not hold any level 3 investments. Certain of the Company's assets, including intangible assets and goodwill are measured at fair value on a non-recurring basis if impairment is indicated. There were no impairments recorded for the three and six months ended December 31, 2015 or 2014. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation [Abstract] | |
Share-based Compensation | 6. Share-based Compensation Shares reserved for issuance As of December 31, 2015, the Company had reserved for issuance (in thousands): December 31, 2015 June 30, 2015 2014 Employee Stock Purchase Plan 11,000 12,000 Employee stock options and awards outstanding 12,485 15,273 Employee stock options and awards available for grant 4,768 5,450 Total shares reserved for issuance 28,253 32,723 Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands): Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Cost of product revenue $ 277 $ 275 $ 572 $ 558 Cost of service revenue 277 272 644 563 Research and development 1,165 1,544 2,795 3,188 Sales and marketing 1,291 1,566 2,719 3,123 General and administrative 935 1,092 1,886 2,131 Total share-based compensation expense $ 3,945 $ 4,749 $ 8,616 $ 9,563 During the three and six months ended December 31, 2015 and 2014, the Company did not capitalize any share-based compensation expense in inventory, as the amounts were immaterial. Stock Awards Stock awards may be granted under the 2013 Equity Incentive Plan (the “2013 Plan”) on terms approved by the Compensation Committee of the Board of Directors. Stock awards generally provide for the issuance of restricted stock units (including performance or market-based restricted stock units) which vest over a fixed period. The following table summarizes stock award activity for the six months ended December 31, 2015 (in thousands, except grant date fair value): Number of Weighted- Shares Average Aggregate Fair (000’s) Date Fair Value Market Value ($000’s) Non-vested stock awards outstanding at June 30, 2015 4,597 $ 3.82 Granted 2,889 $ 3.14 Vested (1,729 ) $ 4.68 Cancelled (582 ) $ 3.77 Non-vested stock awards outstanding at December 31, 2015 5,175 $ 3.16 $ 21,113 The following table summarizes stock option activity under all plans for the six months ended December 31, 2015 (in thousands, except per share and contractual term): Weighted- Weighted- Average Average Aggregate Number of Exercise Remaining Intrinsic Shares Price Contractual Value (000’s) Per Share Term (years) (000’s) Options outstanding at June 30, 2015 10,604 $ 4.03 3.79 410 Granted 5 $ 3.79 Exercised (240 ) $ 3.23 Cancelled (3,059 ) $ 3.83 Options outstanding at December 31, 2015 7,310 $ 4.13 4.32 $ 3,632 Exercisable at December 31, 2015 4,908 $ 4.14 3.39 $ 2,174 Vested and expected to vest at December 31, 2015 6,984 $ 4.12 4.25 $ 3,476 The weighted-average grant-date fair value of options granted during the three and six months ended December 31, 2015 was $1.59. The weighted-average grant-date fair value of options granted during the three and six months ended December 31, 2014 was $1.66 and $1.96, respectively. The weighted-average fair value of shares granted under the Company’s 2014 ESPP during the six months ended December 31, 2015, was $1.97. The weighted-average fair value of shares granted under the Company’s 1999 ESPP during the three and six months ended December 31, 2014, was $1.17 and $1.33, respectively. The Company uses the straight-line method for expense attribution, and the Company estimates forfeitures and only recognizes expense for those shares expected to vest. The Company’s estimated forfeiture rate for fiscal 2016 is based on the Company’s historical forfeiture experience and is 13% for non-executives and 19% for executives. The fair value of each stock option grant under the Company's 2013 Plan and 2005 Equity Incentive Plan is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The Company uses the Monte-Carlo simulation model to determine the fair value and the derived service period of stock awards with market conditions, on the date of the grant. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk-free rate is based upon the estimated life of the option and is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on a blended rate of the implied volatilities from traded options on the Company’s stock and historical volatility on the Company’s stock. The fair value of each share purchase option under the Company's 2014 ESPP and 1999 ESPP is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The expected term of the 2014 ESPP and the 1999 ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on a blended rate of the implied volatilities from traded options and historical volatility on the Company’s stock. Stock Option Plan Employee Stock Purchase Plan Stock Option Plan Employee Stock Purchase Plan Three Months Ended Three Months Ended Six Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Expected life 4.0 years 4.8 years — 0.25 years 4.0 years 4.7 years 1.25 years 0.25 years Risk-free interest rate 1.78 % 1.67 % — % 0.03 % 1.78 % 1.61 % 0.29 % 0.02 % Volatility 52 % 54 % — % 63 % 52 % 54 % 58 % 57 % Dividend yield — % — % — % — % — % — % — % — % |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 7. Restructuring Charges As of December 31, 2015, restructuring liabilities were $4.7 million and consisted of obligations for severance benefits, contract termination and other expenses. The short-term restructuring liability is recorded in "Other accrued liabilities" and the long-term restructuring liability is recorded in "Other long-term liabilities" in the condensed consolidated balance sheets. During the three and six months ended December 31, 2015, the Company recorded restructuring charges of $3.0 million and $8.6 million, respectively. Included in the restructuring charges were offsets for future sub-leasing income. The Company has estimated the sub-lease income based on its existing leases agreement, as well the real estate market conditions at the respective locations. The Company also factored into its estimate the time for a sub-lease tenant to enter into an agreement and complete any improvements. The Company will reevaluate any sub-lease income on a regular basis and adjust the accrual as necessary if and when facts should change. Fiscal 2015 Restructuring During the fourth quarter of fiscal 2015, we reduced costs through targeted restructuring activities intended to reduce operating costs and realign our organization in the current competitive environment. We initiated a plan to reduce our worldwide headcount by more than 225 employees, primarily in sales and marketing, as well as research and development, consolidate specific global administrative functions, and shift certain operating costs to lower cost regions, among other actions. Phase Two During the first half of fiscal 2016, we continued our initiative to realign our operations with a second phase by abandoning excess facilities, primarily in San Jose, California; Salem, New Hampshire; Research Triangle Park, North Carolina and Shannon, Ireland. The abandoned facilities represented approximately 29% of the floor space at these locations and included general office and warehouse space. There may be additional abandonments of excess facilities in future periods as we further align our organization to our business and operational needs. During the first quarter fiscal of 2016, in conjunction with the exiting of facilities noted above, the Company recorded restructuring charges of $5.6 million including $5.4 million for excess facility charges and adjustments to service benefits of $0.2 million. Excess facilities charges included $4.1 million of accrued lease costs pertaining to the estimated future obligations for non-cancelable lease payments for excess facilities and accelerated depreciation of leasehold improvements in the amount of $1.3 million. This charge is reflected in "Restructuring charge, net of reversals" in the condensed consolidated statements of operations. During the second quarter fiscal of 2016, in conjunction with the exiting of the facilities noted above, the Company incurred restructuring charges of $3.0 million including $2.9 million in excess facilities charges related to amending its lease in North Carolina, thereby reducing it floor space by 36%, and adjustments to severance benefits of $0.2 million. Excess facilities charges included accelerated depreciation of leasehold improvements in the amount of $1.9 million and contract termination charges and professional fees of $1.0 million. This charge is reflected in "Restructuring charge, net of reversals" in the condensed consolidated statements of operations. As of December 31, 2015, the Company had restructuring liabilities of $4.7 million. The severance benefits accrual is expected to be paid by the end of the third quarter of fiscal 2016. The excess facilities accrual payments will continue through fiscal year 2023, due to the length of the agreements. Restructuring liabilities consist of (in thousands): Excess Facilities Severance Benefits Other Total Balance as of June 30, 2015 $ — $ 5,737 $ 117 $ 5,854 Period charges 5,409 321 178 5,908 Period reversals — (235 ) (70 ) (305 ) Non cash adjustments (1,344 ) — — (1,344 ) Period payments (42 ) (4,207 ) (125 ) (4,374 ) Balance as of September 30, 2015 4,023 1,616 100 5,739 Period charges 2,874 347 53 3,274 Period reversals (14 ) (209 ) (20 ) (243 ) Non cash adjustments (1,876 ) — — (1,876 ) Period payments (653 ) (1,365 ) (133 ) (2,151 ) Balance as of December 31, 2015 $ 4,354 $ 389 $ — $ 4,743 Less: current portion recorded in Other accrued liabilities (2,588 ) Restructuring accrual included in Other long-term liabilities $ 2,155 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Purchase Commitments The Company currently has arrangements with contract manufacturers and suppliers for the manufacture of its products. The arrangements allow them to procure long lead-time component inventory based upon a rolling production forecast provided by the Company. The Company is obligated to purchase long lead-time component inventory that its contract manufacturer procures in accordance with the Company’s forecast, unless the Company gives notice of order cancellation outside of applicable component lead-times. As of December 31, 2015, the Company had non-cancelable commitments to purchase $64.3 million of such inventory. Legal Proceedings The Company may from time to time be party to litigation arising in the course of its business, including, without limitation, allegations relating to commercial transactions, business relationships or intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and managerial resources. Litigation in general and intellectual property and securities litigation in particular, can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings are difficult to predict. In accordance with applicable accounting guidance, the Company records accruals for certain of its outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. The Company evaluates, at least on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. When a loss contingency is not both probable and reasonably estimable, the Company does not record a loss accrual. However, if the loss (or an additional loss in excess of any prior accrual) is at least a reasonable possibility and material, then the Company would disclose an estimate of the possible loss or range of loss, if such estimate can be made, or disclose that an estimate cannot be made. The assessment whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, involves a series of complex judgments about future events. Even if a loss is reasonably possible, the Company may not be able to estimate a range of possible loss, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel or unsettled legal theories or a large number of parties. In such cases, there is considerable uncertainty regarding the ultimate resolution of such matters, including the amount of any possible loss, fine or penalty. Accordingly, for current proceedings, except as noted below, the Company is currently unable to estimate any reasonably possible loss or range of possible loss. However, an adverse resolution of one or more of such matters could have a material adverse effect on the Company's results of operations in a particular quarter or fiscal year. Brazilian Tax Assessment Matters Certain Brazilian tax authorities have made tax assessments against our Brazilian subsidiary, Enterasys Networks do Brazil Ltda., based on an alleged underpayment of taxes. The tax authorities are also seeking interest and penalties with respect to such claims (collectively, the “ICMS Tax Assessments”). On or about June 18, 2014, the State of San Paolo notified Enterasys Networks do Brazil Ltda. that it intends to audit the records of such entity for tax years 2012 and 2013. In addition, the Company received a similar notice in December 2015 with respect to an audit by the State of San Paolo of tax years 2011-2014. The audits are expected to cover the same or very similar issues as the ICMS Tax Assessments for tax years 2002-2009, however, the Company changed their ICMS procedures effective May 2009 and a similar tax assessment is not anticipated. The Company has provided the requested information for these tax years to the Brazilian tax authorities, but has received no further response from the Brazilian tax authorities. Based on the currently available information, the Company believes the ultimate outcome of the above audits and assessments will not have a material adverse effect on the Company's financial position or overall results of operations. The Company believes that the ICMS Tax Assessments against our Brazilian subsidiary are without merit and we are defending the claims vigorously. While the Company believes there is no legal basis for the alleged liability, due to the complexities and uncertainty surrounding the judicial process in Brazil and the nature of the claims asserted, we are unable to determine the likelihood of an unfavorable outcome against our Brazilian subsidiary and estimate the potential tax liability related to the ICMS Tax Assessments, if any, may be up to BR23.4 million (US $6.0 million). We do not expect a final judicial determination for several years. The Company believes BR 9.4 million (US $2.4 million) is the best estimate within the range and has recorded an accrual as of the Acquisition Date of Enterasys as such matter relates to the period before the acquisition. The Company made a demand on April 11, 2014 for a defense from, and indemnification by, the former equity holder of Enterasys Networks (“Seller”) of the ICMS Tax Assessments. Seller agreed to assume the defense of the ICMS Tax Assessments on May 20, 2014. In addition, through the settlement of the Unify Indemnification Suit on June 18, 2015, Seller has agreed to continue to defend the Company with respect to the ICMS Tax Assessments and to indemnify the Company for losses related thereto subject to certain conditions. In addition, the Seller has agreed to indemnify the Company in connection with tax assessments up to a specified cap related to the 2012 and 2013 tax years subject to certain conditions. In re Extreme Networks, Inc. Securities Litigation On October 23 and 29, 2015, complaints were filed for violations of securities laws in the U.S. District Court for the Northern District of California against the Company and three of its current or former officers (Charles W. Berger, Kenneth B. Arola, and John T. Kurtzweil). Subsequently, the cases were consolidated. Plaintiffs allege that defendants violated the securities laws by disseminating materially false and misleading statements and concealing material adverse facts regarding Extreme Networks' current financial condition and growth prospects. Plaintiffs seek damages of an unspecified amount on behalf of a purported class of investors who purchased the Company's common stock from November 4, 2013 through April 9, 2015. Motions for appointment of lead plaintiff have been filed, and are scheduled to be heard on May 5, 2016. The Company believes the claims are without merit and intends to vigorously defend the claims. Indemnification Obligations Subject to certain limitations, the Company may be obligated to indemnify its current and former directors, officers and employees. These obligations arise under the terms of its certificate of incorporation, its bylaws, applicable contracts, and Delaware and California law. The obligation to indemnify, where applicable, generally means that the Company is required to pay or reimburse, and in certain circumstances the Company has paid or reimbursed, the individuals' reasonable legal expenses and possibly damages and other liabilities incurred in connection with these matters. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of these claims. The cost to defend the Company and the named individuals could have a material adverse effect on its consolidated financial position, results of operations and cash flows in the future. Recovery of such costs under its director and officers’ insurance coverage is uncertain. As of December 31, 2015, the Company had no outstanding indemnification claims. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes For the three and six months ended December 31, 2015, the Company recorded an income tax provision of $1.2 million and $2.1 million, respectively. For the three and six months ended December 31, 2014, the Company recorded an income tax provision of $1.3 million and $2.3 million, respectively. The income tax provisions for the three and six months ended December 31, 2015 and 2014, consisted primarily of taxes on the income of our foreign subsidiaries as well as tax expense associated with the establishment of a U.S. deferred tax liability for amortizable goodwill resulting from the acquisition of Enterasys Networks, Inc. The income tax provisions for both fiscal years were calculated based on the actual results of operations for the three and six months ended December 31, 2015 and 2014, and therefore may not reflect the annual effective tax rate. The Company has provided a full valuation allowance against all of its U.S. federal and state deferred tax assets as well as the deferred tax assets in Australia, Brazil, Japan and Singapore. A valuation allowance is determined by assessing both negative and positive evidence to determine whether it is “more likely than not” that the deferred tax assets are recoverable; such assessment is required on a jurisdiction by jurisdiction basis. The Company's inconsistent earnings in recent periods, including a cumulative loss over the last three years, coupled with its difficulty in forecasting future revenue trends as well as the cyclical nature of its business represent sufficient negative evidence to require a full valuation allowance against its U.S. federal and state net deferred tax assets as well as the above mentioned foreign jurisdictions. This valuation allowance will be evaluated periodically and can be reversed partially or in whole if business results and the economic environment have sufficiently improved to support realization of some or all of the Company's deferred tax assets. During 2015, Congress passed legislation that would make the R&D Tax Credit permanent and on December 18, 2015, President Obama signed the Protecting Americans from Tax Hikes (“PATH”) Act of 2015 The acquisition of Enterasys included a U.S. parent company as well as its wholly-owned domestic and foreign subsidiaries. The Company has elected to treat this stock acquisition as an asset purchase by filing the required election forms under IRC Sec 338(h)(10). The Company has estimated the value of the intangible assets from this transaction and is amortizing the amount over 15 years for tax purposes. During the three and six months ended December 31, 2015, the Company deducted $1.1 million and $2.2 million of tax amortization expense, respectively related to capitalized goodwill. As of December 31, 2015, the Company recorded a deferred tax liability of $3.6 million related to this amortization which is not considered a future source of taxable income in evaluating the need for a valuation allowance against our deferred tax assets. The Company had $11.5 million of unrecognized tax benefits as of December 31, 2015. The future impact of the unrecognized tax benefit of $11.5 million, if recognized, would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance. The Company does not anticipate any events to occur during the next twelve months that would reduce the unrealized tax benefit as currently stated in the Company’s balance sheet. The Company’s policy is to accrue interest and penalties related to the underpayment of income taxes as a component of tax expense in the condensed consolidated statements of operations. In general, the Company's U.S. federal income tax returns are subject to examination by tax authorities for fiscal years 2001 forward due to net operating losses and the Company's state income tax returns are subject to examination for fiscal years 2003 forward due to net operating losses. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 10. Net Loss Per Share Basic earnings per share is calculated by dividing net earnings by the weighted average number of common shares outstanding during the period. Dilutive earnings per share is calculated by dividing net earnings by the weighted average number of common shares used in the basic earnings per share calculation plus the dilutive effect of shares subject to repurchase, options, warrants and unvested restricted stock units. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Net loss $ (7,234 ) $ (13,105 ) $ (18,760 ) $ (32,435 ) Weighted-average shares used in per share calculation - basic and diluted 102,369 98,677 101,677 97,996 Net loss per share - basic and diluted $ (0.07 ) $ (0.13 ) $ (0.18 ) $ (0.33 ) The following securities were excluded from the computation of diluted net loss per share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands): December 31, 2015 December 31, 2014 Options to purchase common stock 5,280 9,203 Restricted stock units 1,895 1,369 Employee Stock Purchase Plan shares 449 563 |
Foreign Exchange Forward Contra
Foreign Exchange Forward Contracts | 6 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Foreign Exchange Forward Contracts | 11. Foreign Exchange Forward Contracts The Company from time to time enters into foreign exchange forward contracts to mitigate the effect of gains and losses generated by the foreign currency forecasted transactions related to certain operating expenses and re-measurement of certain assets and liabilities denominated in foreign currencies. These derivatives do not qualify as hedges. Changes in the fair value of these foreign exchange forward contracts are offset largely by re-measurement of the underlying assets and liabilities. At December 31, Foreign currency transaction gains and losses from operations was a gain of $0.2 million and $1.3 million for the three and six months ended December 31, 2015, respectively. Foreign currency transaction gains and losses from operations was a gain of less than $0.1 million and a loss of $0.3 million for the three and six months ended December 31, 2014, respectively. |
Disclosure about Segments of an
Disclosure about Segments of an Enterprise and Geographic Areas | 6 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Disclosure about Segments of an Enterprise and Geographic Areas | 12. Disclosure about Segments of an Enterprise and Geographic Areas The Company operates in one segment, the development and marketing of network infrastructure equipment. The Company conducts business globally and is managed geographically. Revenue is attributed to a geographical area based on the location of its customers. The Company operates in three geographical areas: Americas, which includes the United States, Canada, Mexico, Central America and South America; EMEA, which includes Europe, Russia, Middle East and Africa; and APAC which includes Asia Pacific, South Asia, India, Australia and Japan. The Company attributes revenues to geographic regions primarily based on the customer's ship-to location. Information regarding geographic areas is as follows (in thousands): Three Months Ended Six Months Ended Net Revenues: December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Americas: United States $ 58,749 $ 58,160 $ 115,093 $ 116,648 Other 7,743 12,576 13,585 19,917 Total Americas 66,492 70,736 128,678 136,565 EMEA 60,102 62,574 111,128 116,509 APAC 12,711 13,898 24,080 30,408 Total net revenues $ 139,305 $ 147,208 $ 263,886 $ 283,482 Long Lived Assets: December 31, 2015 June 30, 2015 Americas $ 72,674 $ 87,071 EMEA 20,498 29,610 APAC 2,532 3,108 Total long lived assets $ 95,704 $ 119,789 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company uses a fiscal calendar year ending on June 30. All references herein to "fiscal 2016" or "2016" represent the fiscal year ending June 30, 2016. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Extreme Networks and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. |
Accounting Estimates | Accounting Estimates The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates are used for, but are not limited to, the accounting for the allowances for doubtful accounts and sales returns, determining the fair value of acquired assets and assumed liabilities, estimated selling prices, inventory valuation and purchase commitments, depreciation and amortization, impairment of long-lived assets including goodwill, warranty accruals, restructuring liabilities, measurement of share-based compensation costs and income taxes. Actual results could differ materially from these estimates. The Company predominantly uses the United States Dollar as its functional currency. The functional currency for certain of its foreign subsidiaries is the local currency. For those subsidiaries that operate in a local currency functional environment, all assets and liabilities are translated to United States Dollars at current month end rates of exchange; and revenue and expenses are translated using the monthly average rate. Certain balances included in the condensed consolidated statements of cash flows related to restructuring liabilities for prior periods have been reclassified to conform to the current period presentation. In the condensed consolidated statement of cash flows, the changes in operating assets and liabilities for Other long-term liabilities includes the changes in restructuring liabilities and other accrued liabilities which were previously disclosed separately. |
Earnings Per Share | Dilutive earnings per share is calculated by dividing net earnings by the weighted average number of common shares used in the basic earnings per share calculation plus the dilutive effect of shares subject to repurchase, options, warrants and unvested restricted stock units. |
Investments | The Company considers highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Investments with original maturities of greater than three months, but less than one year at the balance sheet date are classified as short-term investments. |
Deferred Revenue | Deferred Revenue, Net Deferred revenue, net represents amounts for (i) deferred services revenue (support arrangements, professional services and training), and (ii) deferred product revenue net of the related cost of revenue when the revenue recognition criteria have not been met. The Company offers for sale to its customers, renewable support arrangements that range from one to five years. Deferred support revenue is included within deferred revenue, net within the services category above. Deferred Distributors Revenue, Net of Cost of Sales to Distributors The Company records revenue from its distributors on a sell-through basis, recording deferred revenue and deferred cost of sales associated with all sales transactions to its distributors in “Deferred distributors revenue, net of cost of sales to distributors” in the liability section of its condensed consolidated balance sheet. The amount shown as “Deferred distributors revenue, net of cost of sales to distributors” represents the deferred gross profit on sales to distributors based on contractual pricing. |
Guarantees and Product Warranties | Guarantees and Product Warranties Networking products may contain undetected hardware or software errors when new products or new versions or updates of existing products are released to the marketplace. In the past, we had experienced such errors in connection with products and product updates. The Company’s standard hardware warranty period is typically 12 months from the date of shipment to end-users and 90 days for software. For certain access products, the Company offers a limited lifetime hardware warranty commencing on the date of shipment from the Company and ending five (5) years following the Company’s announcement of the end of sale of such product. Upon shipment of products to its customers, the Company estimates expenses for the cost to repair or replace products that may be returned under warranty and accrue a liability in cost of product revenue for this amount. The determination of the Company’s warranty requirements is based on actual historical experience with the product or product family, estimates of repair and replacement costs and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors. Upon issuance of a standard product warranty, the Company discloses and recognizes a liability for the obligations it assumes under the product warranty. To facilitate sales of its products in the normal course of business, the Company indemnifies its resellers and end-user customers with respect to certain matters. The Company has agreed to hold the customer harmless against losses arising from a breach of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results or financial position. |
Balance Sheet Accounts (Tables)
Balance Sheet Accounts (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Cash, Cash Equivalents, Short-Term Investments and Marketable Securities | The following is a summary of cash and available-for-sale securities (in thousands): December 31, 2015 June 30, 2015 Cash $ 81,096 $ 71,455 Cash equivalents $ 4,769 $ 4,770 Total available-for-sale $ 4,769 $ 4,770 Total cash, cash equivalents and available for sale securities $ 85,865 $ 76,225 |
Schedule of Inventory | The following is a summary of our inventory by category (in thousands): December 31, 2015 June 30, 2015 Finished goods $ 52,640 $ 55,301 Raw materials 3,961 2,713 Total Inventory $ 56,601 $ 58,014 |
Property, Plant and Equipment | Property and equipment consist of the following (in thousands): December 31, 2015 June 30, 2015 Computer equipment $ 33,943 $ 32,753 Purchased software 5,671 5,425 Office equipment, furniture and fixtures 11,113 10,908 Leasehold improvements 20,682 24,293 Total property and equipment 71,409 73,379 Less: accumulated depreciation and amortization (38,461 ) (33,517 ) Property and equipment, net $ 32,948 $ 39,862 |
Schedule of Finite-Lived Intangible Assets | The following tables summarize the components of gross and net intangible asset balances (in thousands): Weighted Average Remaining Amortization Gross Accumulated Net Carrying Period Amount Amortization Amount December 31, 2015 Developed technology 0.65 years $ 48,000 $ 36,194 $ 11,806 Customer relationships 0.75 years 37,000 26,722 10,278 Maintenance contracts 2.75 years 17,000 7,367 9,633 Trademarks 0.75 years 2,500 1,805 695 Order backlog 0.00 years 7,400 7,400 — License agreements 9.90 years 3,596 1,494 2,102 Other intangibles 4.20 years 1,426 802 624 Total intangibles, net $ 116,922 $ 81,784 $ 35,138 Weighted Average Remaining Amortization Gross Carrying Accumulated Net Carrying Period Amount Amortization Amount June 30, 2015 Developed technology 1.20 years $ 48,000 $ 28,194 $ 19,806 Customer relationships 1.30 years 37,000 20,556 16,444 Maintenance contracts 3.30 years 17,000 5,667 11,333 Trademarks 1.30 years 2,500 1,389 1,111 Order backlog 0.30 years 7,400 6,967 433 License agreements 10.20 years 10,924 8,620 2,304 Other intangibles 3.80 years 2,684 1,983 701 Total intangibles, net $ 125,508 $ 73,376 $ 52,132 |
Schedule of Accrued Liabilities | The following are the components of other accrued liabilities (in thousands): December 31, 2015 June 30, 2015 Accrued general and administrative costs $ 4,383 $ 1,204 Restructuring 2,588 5,854 Other accrued liabilities 22,997 25,565 Total other accrued liabilities $ 29,968 $ 32,623 |
Schedule of Deferred Revenue, Net | The following table summarizes deferred revenue, net (in thousands): December 31, 2015 June 30, 2015 Deferred services $ 84,706 $ 87,441 Deferred product and other revenue 12,347 12,341 Total deferred revenue 97,053 99,782 Less: current portion 75,548 76,551 Non-current deferred revenue, net $ 21,505 $ 23,231 |
Change in Deferred Support Revenue | The change in the Company’s deferred support revenue balance in relation to these arrangements was as follows (in thousands): Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Balance beginning of period $ 85,255 $ 87,012 $ 87,441 $ 89,657 New support arrangements 29,773 35,517 56,819 64,056 Recognition of support revenue (30,322 ) (31,156 ) (59,554 ) (62,340 ) Balance end of period 84,706 91,373 84,706 91,373 Less: current portion 63,201 67,433 63,201 67,433 Non-current deferred revenue $ 21,505 $ 23,940 $ 21,505 $ 23,940 |
Schedule of Deferred Distributors Revenue | The following table summarizes deferred distributors revenue, net of cost of sales to distributors (in thousands): December 31, 2015 June 30, 2015 Deferred distributors revenue $ 41,653 $ 53,366 Deferred cost of sales to distributors (9,976 ) (12,491 ) Deferred distributors revenue, net of cost of sales to distributors $ 31,677 $ 40,875 |
Schedule of Debt | The Company’s debt is comprised of the following: December 31, 2015 June 30, 2015 Current portion of long-term debt: Term Loan $ 14,625 $ 11,375 Current portion of long-term debt $ 14,625 $ 11,375 Long-term debt, less current portion: Term Loan $ 37,375 $ 45,500 Revolving Facility 10,000 10,000 Total long-term debt, less current portion 47,375 55,500 Total debt $ 62,000 $ 66,875 |
Schedule of Product Warranty Liability | The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2015 and 2014: Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Balance beginning of period $ 9,244 $ 7,889 $ 8,676 $ 7,551 New warranties issued 2,956 1,683 5,520 3,948 Warranty expenditures (1,785 ) (1,727 ) (3,781 ) (3,654 ) Balance end of period $ 10,415 $ 7,845 $ 10,415 $ 7,845 |
Schedule of Major Customers | The following table sets forth major customers accounting for 10% or more of our net revenue: Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Tech Data Corporation 19% 15% 16% 15% Westcon Group Inc. 14% 13% 15% 13% Jenne 12% * 11% * |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company did not hold any financial liabilities that required measurement at fair value on a recurring basis. The following table presents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets Investments: Money market funds $ 4,769 $ — $ — $ 4,769 Total $ 4,769 $ — $ — $ 4,769 June 30, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets Investments: Money market funds $ 4,770 $ — $ — $ 4,770 Total $ 4,770 $ — $ — $ 4,770 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation [Abstract] | |
Schedule of Stock by Class | As of December 31, 2015, the Company had reserved for issuance (in thousands): December 31, 2015 June 30, 2015 2014 Employee Stock Purchase Plan 11,000 12,000 Employee stock options and awards outstanding 12,485 15,273 Employee stock options and awards available for grant 4,768 5,450 Total shares reserved for issuance 28,253 32,723 |
Schedule of Recognized Share-based Compensation Expense | Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands): Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Cost of product revenue $ 277 $ 275 $ 572 $ 558 Cost of service revenue 277 272 644 563 Research and development 1,165 1,544 2,795 3,188 Sales and marketing 1,291 1,566 2,719 3,123 General and administrative 935 1,092 1,886 2,131 Total share-based compensation expense $ 3,945 $ 4,749 $ 8,616 $ 9,563 |
Schedule of Share-based Compensation, Restricted Stock Units Activity | The following table summarizes stock award activity for the six months ended December 31, 2015 (in thousands, except grant date fair value): Number of Weighted- Shares Average Aggregate Fair (000’s) Date Fair Value Market Value ($000’s) Non-vested stock awards outstanding at June 30, 2015 4,597 $ 3.82 Granted 2,889 $ 3.14 Vested (1,729 ) $ 4.68 Cancelled (582 ) $ 3.77 Non-vested stock awards outstanding at December 31, 2015 5,175 $ 3.16 $ 21,113 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity under all plans for the six months ended December 31, 2015 (in thousands, except per share and contractual term): Weighted- Weighted- Average Average Aggregate Number of Exercise Remaining Intrinsic Shares Price Contractual Value (000’s) Per Share Term (years) (000’s) Options outstanding at June 30, 2015 10,604 $ 4.03 3.79 410 Granted 5 $ 3.79 Exercised (240 ) $ 3.23 Cancelled (3,059 ) $ 3.83 Options outstanding at December 31, 2015 7,310 $ 4.13 4.32 $ 3,632 Exercisable at December 31, 2015 4,908 $ 4.14 3.39 $ 2,174 Vested and expected to vest at December 31, 2015 6,984 $ 4.12 4.25 $ 3,476 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each share purchase option under the Company's 2014 ESPP and 1999 ESPP is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The expected term of the 2014 ESPP and the 1999 ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on a blended rate of the implied volatilities from traded options and historical volatility on the Company’s stock. Stock Option Plan Employee Stock Purchase Plan Stock Option Plan Employee Stock Purchase Plan Three Months Ended Three Months Ended Six Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Expected life 4.0 years 4.8 years — 0.25 years 4.0 years 4.7 years 1.25 years 0.25 years Risk-free interest rate 1.78 % 1.67 % — % 0.03 % 1.78 % 1.61 % 0.29 % 0.02 % Volatility 52 % 54 % — % 63 % 52 % 54 % 58 % 57 % Dividend yield — % — % — % — % — % — % — % — % |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring liabilities consist of (in thousands): Excess Facilities Severance Benefits Other Total Balance as of June 30, 2015 $ — $ 5,737 $ 117 $ 5,854 Period charges 5,409 321 178 5,908 Period reversals — (235 ) (70 ) (305 ) Non cash adjustments (1,344 ) — — (1,344 ) Period payments (42 ) (4,207 ) (125 ) (4,374 ) Balance as of September 30, 2015 4,023 1,616 100 5,739 Period charges 2,874 347 53 3,274 Period reversals (14 ) (209 ) (20 ) (243 ) Non cash adjustments (1,876 ) — — (1,876 ) Period payments (653 ) (1,365 ) (133 ) (2,151 ) Balance as of December 31, 2015 $ 4,354 $ 389 $ — $ 4,743 Less: current portion recorded in Other accrued liabilities (2,588 ) Restructuring accrual included in Other long-term liabilities $ 2,155 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended Six Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Net loss $ (7,234 ) $ (13,105 ) $ (18,760 ) $ (32,435 ) Weighted-average shares used in per share calculation - basic and diluted 102,369 98,677 101,677 97,996 Net loss per share - basic and diluted $ (0.07 ) $ (0.13 ) $ (0.18 ) $ (0.33 ) |
Schedule of Antidilutive Securities Excluded from Earnings Per Share Calculation | The following securities were excluded from the computation of diluted net loss per share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands): December 31, 2015 December 31, 2014 Options to purchase common stock 5,280 9,203 Restricted stock units 1,895 1,369 Employee Stock Purchase Plan shares 449 563 |
Disclosure about Segments of 25
Disclosure about Segments of an Enterprise and Geographic Areas (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Regions | The Company attributes revenues to geographic regions primarily based on the customer's ship-to location. Information regarding geographic areas is as follows (in thousands): Three Months Ended Six Months Ended Net Revenues: December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Americas: United States $ 58,749 $ 58,160 $ 115,093 $ 116,648 Other 7,743 12,576 13,585 19,917 Total Americas 66,492 70,736 128,678 136,565 EMEA 60,102 62,574 111,128 116,509 APAC 12,711 13,898 24,080 30,408 Total net revenues $ 139,305 $ 147,208 $ 263,886 $ 283,482 |
Schedule of Long Lived Assets by Segment | Long Lived Assets: December 31, 2015 June 30, 2015 Americas $ 72,674 $ 87,071 EMEA 20,498 29,610 APAC 2,532 3,108 Total long lived assets $ 95,704 $ 119,789 |
Balance Sheet Accounts (Schedul
Balance Sheet Accounts (Schedule of Cash and Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Cash | $ 81,096 | $ 71,455 |
Cash equivalents | 4,769 | 4,770 |
Total available-for-sale | 4,769 | 4,770 |
Total cash, cash equivalents and available for sale securities | $ 85,865 | $ 76,225 |
Balance Sheet Accounts (Narrati
Balance Sheet Accounts (Narratives) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Balance Sheet Accounts [Line Items] | |||||
Inventories | $ 56,601,000 | $ 56,601,000 | $ 58,014,000 | ||
Amortization | 8,100,000 | $ 9,000,000 | 17,000,000 | $ 18,000,000 | |
Letters for credit outstanding | 1,000,000 | $ 1,000,000 | |||
Standard hardware warranty period | 12 months | ||||
Standard software warranty period | 90 days | ||||
Limited lifetime hardware warranty maximum period after end of sale of product | 5 years | ||||
Revolving Facility | |||||
Balance Sheet Accounts [Line Items] | |||||
Term of agreement | 5 years | ||||
Borrowing capacity | $ 50,000,000 | ||||
Remaining borrowing capacity | 32,200,000 | $ 32,200,000 | |||
Term Loan | |||||
Balance Sheet Accounts [Line Items] | |||||
Term of agreement | 5 years | ||||
Borrowing capacity | $ 65,000,000 | ||||
Cost Of Product Revenue | |||||
Balance Sheet Accounts [Line Items] | |||||
Amortization | $ 3,800,000 | $ 4,500,000 | $ 8,300,000 | $ 9,100,000 | |
Maximum | |||||
Balance Sheet Accounts [Line Items] | |||||
Extended warranty period | 5 years | ||||
Minimum | |||||
Balance Sheet Accounts [Line Items] | |||||
Extended warranty period | 1 year | ||||
Minimum | Net Revenue | Customer Concentration Risk | |||||
Balance Sheet Accounts [Line Items] | |||||
Concentration risk | 10.00% | ||||
Cash equivalents | Maximum | |||||
Balance Sheet Accounts [Line Items] | |||||
Maturity period for investments | 3 months | ||||
Short-term investments | Maximum | |||||
Balance Sheet Accounts [Line Items] | |||||
Maturity period for investments | 1 year | ||||
Short-term investments | Minimum | |||||
Balance Sheet Accounts [Line Items] | |||||
Maturity period for investments | 3 months | ||||
Marketable securities | Minimum | |||||
Balance Sheet Accounts [Line Items] | |||||
Maturity period for investments | 1 year |
Balance Sheet Accounts (Sched28
Balance Sheet Accounts (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Finished goods | $ 52,640 | $ 55,301 |
Raw materials | 3,961 | 2,713 |
Total Inventory | $ 56,601 | $ 58,014 |
Balance Sheet Accounts (Sched29
Balance Sheet Accounts (Schedule of PP&E) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 71,409 | $ 73,379 |
Less: accumulated depreciation and amortization | (38,461) | (33,517) |
Property and equipment, net | 32,948 | 39,862 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 33,943 | 32,753 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,671 | 5,425 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,113 | 10,908 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 20,682 | $ 24,293 |
Balance Sheet Accounts (Sched30
Balance Sheet Accounts (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 116,922 | $ 125,508 |
Accumulated Amortization | 81,784 | 73,376 |
Net Carrying Amount | $ 35,138 | $ 52,132 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 7 months 24 days | 1 year 2 months 12 days |
Gross Carrying Amount | $ 48,000 | $ 48,000 |
Accumulated Amortization | 36,194 | 28,194 |
Net Carrying Amount | $ 11,806 | $ 19,806 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 9 months | 1 year 3 months 18 days |
Gross Carrying Amount | $ 37,000 | $ 37,000 |
Accumulated Amortization | 26,722 | 20,556 |
Net Carrying Amount | $ 10,278 | $ 16,444 |
Maintenance contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 2 years 9 months | 3 years 3 months 18 days |
Gross Carrying Amount | $ 17,000 | $ 17,000 |
Accumulated Amortization | 7,367 | 5,667 |
Net Carrying Amount | $ 9,633 | $ 11,333 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 9 months | 1 year 3 months 18 days |
Gross Carrying Amount | $ 2,500 | $ 2,500 |
Accumulated Amortization | 1,805 | 1,389 |
Net Carrying Amount | $ 695 | $ 1,111 |
Order backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 0 years | 3 months 18 days |
Gross Carrying Amount | $ 7,400 | $ 7,400 |
Accumulated Amortization | $ 7,400 | 6,967 |
Net Carrying Amount | $ 433 | |
License agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 9 years 10 months 24 days | 10 years 2 months 12 days |
Gross Carrying Amount | $ 3,596 | $ 10,924 |
Accumulated Amortization | 1,494 | 8,620 |
Net Carrying Amount | $ 2,102 | $ 2,304 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 4 years 2 months 12 days | 3 years 9 months 18 days |
Gross Carrying Amount | $ 1,426 | $ 2,684 |
Accumulated Amortization | 802 | 1,983 |
Net Carrying Amount | $ 624 | $ 701 |
Balance Sheet Accounts (Sched31
Balance Sheet Accounts (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Accrued general and administrative costs | $ 4,383 | $ 1,204 |
Restructuring | 2,588 | 5,854 |
Other accrued liabilities | 22,997 | 25,565 |
Total other accrued liabilities | $ 29,968 | $ 32,623 |
Balance Sheet Accounts (Sched32
Balance Sheet Accounts (Schedule of Deferred Revenue, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 |
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue, current and noncurrent | $ 97,053 | $ 99,782 | ||||
Less: current portion | 75,548 | 76,551 | ||||
Non-current deferred revenue, net | 21,505 | 23,231 | ||||
Services | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue, current and noncurrent | 84,706 | $ 85,255 | 87,441 | $ 91,373 | $ 87,012 | $ 89,657 |
Less: current portion | 63,201 | 67,433 | ||||
Non-current deferred revenue, net | 21,505 | $ 23,940 | ||||
Product | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue, current and noncurrent | $ 12,347 | $ 12,341 |
Balance Sheet Accounts (Change
Balance Sheet Accounts (Change in Deferred Support Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Movement in Deferred Revenue [Roll Forward] | |||||
Balance beginning of period | $ 99,782 | ||||
Balance end of period | $ 97,053 | 97,053 | |||
Less: current portion | 75,548 | 75,548 | $ 76,551 | ||
Non-current deferred revenue | 21,505 | 21,505 | |||
Renewable Support Arrangements | |||||
Movement in Deferred Revenue [Roll Forward] | |||||
Balance beginning of period | 85,255 | $ 87,012 | 87,441 | $ 89,657 | |
New support arrangements | 29,773 | 35,517 | 56,819 | 64,056 | |
Recognition of support revenue | (30,322) | (31,156) | (59,554) | (62,340) | |
Balance end of period | 84,706 | 91,373 | 84,706 | 91,373 | |
Less: current portion | 63,201 | 67,433 | 63,201 | 67,433 | |
Non-current deferred revenue | $ 21,505 | $ 23,940 | $ 21,505 | $ 23,940 |
Balance Sheet Accounts (Sched34
Balance Sheet Accounts (Schedule of Deferred Distributors Revenue) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred distributors revenue | $ 97,053 | $ 99,782 |
Total deferred distributors revenue, net of cost of sales to distributors | 31,677 | 40,875 |
Distributors | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred distributors revenue | 41,653 | 53,366 |
Deferred cost of sales to distributors | (9,976) | (12,491) |
Total deferred distributors revenue, net of cost of sales to distributors | $ 31,677 | $ 40,875 |
Balance Sheet Accounts (Sched35
Balance Sheet Accounts (Schedule of Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Line of Credit Facility [Line Items] | ||
Current portion of long-term debt | $ 14,625 | $ 11,375 |
Long-term debt, less current portion | 47,375 | 55,500 |
Total debt | 62,000 | 66,875 |
Term Loan | ||
Line of Credit Facility [Line Items] | ||
Current portion of long-term debt | 14,625 | 11,375 |
Long-term debt, less current portion | 37,375 | 45,500 |
Revolving Facility | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, less current portion | $ 10,000 | $ 10,000 |
Balance Sheet Accounts (Sched36
Balance Sheet Accounts (Schedule of Product Warranty Liability Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance beginning of period | $ 9,244 | $ 7,889 | $ 8,676 | $ 7,551 |
New warranties issued | 2,956 | 1,683 | 5,520 | 3,948 |
Warranty expenditures | (1,785) | (1,727) | (3,781) | (3,654) |
Balance end of period | $ 10,415 | $ 7,845 | $ 10,415 | $ 7,845 |
Balance Sheet Accounts (Sched37
Balance Sheet Accounts (Schedule of Concentration of Risk) (Details) - Customer Concentration Risk - Net Revenue | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Tech Data Corporation | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 19.00% | 15.00% | 16.00% | 15.00% |
Westcon Group Inc. | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 14.00% | 13.00% | 15.00% | 13.00% |
Jenne | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 12.00% | 11.00% |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value for Financial Assets and Liabilities Measure on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Assets | ||
Total | $ 4,769 | $ 4,770 |
Level 1 | ||
Assets | ||
Total | 4,769 | 4,770 |
Money market funds | ||
Assets | ||
Investments | 4,769 | 4,770 |
Money market funds | Level 1 | ||
Assets | ||
Investments | $ 4,769 | $ 4,770 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narratives) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 |
Assets | ||
Long-term debt, fair value | $ 62 | $ 66.9 |
Share-based Compensation (Sched
Share-based Compensation (Schedule of Shares Reserved For Future Issuance) (Details) - shares shares in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Class of Stock [Line Items] | ||
Shares reserved for future issuance | 28,253 | 32,723 |
Employee stock options and awards outstanding | 7,310 | 10,604 |
Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Shares reserved for future issuance | 11,000 | 12,000 |
Stock Option Plan | ||
Class of Stock [Line Items] | ||
Employee stock options and awards outstanding | 12,485 | 15,273 |
Employee stock options and awards available for grant | 4,768 | 5,450 |
Share-based Compensation (Sch41
Share-based Compensation (Schedule of Recognized Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | $ 3,945 | $ 4,749 | $ 8,616 | $ 9,563 |
Cost Of Product Revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 277 | 275 | 572 | 558 |
Cost of Service Revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 277 | 272 | 644 | 563 |
Research and Development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 1,165 | 1,544 | 2,795 | 3,188 |
Sales and Marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 1,291 | 1,566 | 2,719 | 3,123 |
General and Administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | $ 935 | $ 1,092 | $ 1,886 | $ 2,131 |
Share-based Compensation (Sch42
Share-based Compensation (Schedule of Stock Award Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Shares | |
Non-vested stock awards outstanding, beginning balance (in shares) | shares | 4,597 |
Granted (in shares) | shares | 2,889 |
Vested (in shares) | shares | (1,729) |
Cancelled (in shares) | shares | (582) |
Non-vested stock awards outstanding, ending balance (in shares) | shares | 5,175 |
Weighted-Average Grant Date Fair Value | |
Non-vested stock awards outstanding, beginning of period (in dollars per share) | $ / shares | $ 3.82 |
Granted (in dollars per share) | $ / shares | 3.14 |
Vested (in dollars per share) | $ / shares | 4.68 |
Cancelled (in dollars per share) | $ / shares | 3.77 |
Non-vested stock awards outstanding, end of period (in dollars per share) | $ / shares | $ 3.16 |
Aggregate Fair Market Value | |
Non-vested stock awards outstanding, end of period (in dollars) | $ | $ 21,113 |
Share-based Compensation (Sch43
Share-based Compensation (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Number of Shares | ||
Options outstanding, beginning balance (in shares) | 10,604 | |
Granted (in shares) | 5 | |
Exercised (in shares) | (240) | |
Canceled (in shares) | (3,059) | |
Options outstanding, ending balance (in shares) | 7,310 | 10,604 |
Exercisable at period end (in shares) | 4,908 | |
Vested and expected to vest at period end (in shares) | 6,984 | |
Weighted-Average Exercise Price Per Share | ||
Options outstanding, beginning balance (in dollars per share) | $ 4.03 | |
Granted (in dollars per share) | 3.79 | |
Exercised (in dollars per share) | 3.23 | |
Canceled (in dollars per share) | 3.83 | |
Options outstanding, ending balance (in dollars per share) | 4.13 | $ 4.03 |
Exercisable (in dollars per share) | 4.14 | |
Vested and expected to vest (in dollars per share) | $ 4.12 | |
Weighted-Average Remaining Contractual Term | ||
Options outstanding | 4 years 3 months 26 days | 3 years 9 months 15 days |
Exercisable | 3 years 4 months 21 days | |
Vested and expected to vest | 4 years 3 months | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 410 | |
Options outstanding | 3,632 | $ 410 |
Exercisable | 2,174 | |
Vested and expected to vest | $ 3,476 |
Share-based Compensation (Narra
Share-based Compensation (Narratives) (Details) - $ / shares | 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] | ||||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 1.59 | $ 1.66 | $ 1.59 | $ 1.96 |
Non-Executives | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated forfeiture rate | 13.00% | |||
Executives | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated forfeiture rate | 19.00% | |||
2014 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 1.97 | |||
1999 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 1.17 | $ 1.33 |
Share-based Compensation (Sch45
Share-based Compensation (Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards) (Details) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life | 4 years | 4 years 9 months 18 days | 4 years | 4 years 8 months 12 days |
Risk-free interest rate (percent) | 1.78% | 1.67% | 1.78% | 1.61% |
Volatility (percent) | 52.00% | 54.00% | 52.00% | 54.00% |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life | 0 years | 3 months | 1 year 3 months | 3 months |
Risk-free interest rate (percent) | 0.03% | 0.29% | 0.02% | |
Volatility (percent) | 63.00% | 58.00% | 57.00% |
Restructuring Charges (Details)
Restructuring Charges (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($)Employee | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities | $ 4,743 | $ 5,739 | $ 5,854 | $ 4,743 |
Restructuring charge, net of reversals | 3,031 | 5,600 | $ 8,634 | |
Expected number of positions eliminated, more than | Employee | 225 | |||
Abandoned facilities, percent of original space | 29.00% | |||
Period charges | $ 3,274 | 5,908 | ||
Percentage of reduction in floor space | 36.00% | |||
Excess Facilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities | $ 4,354 | 4,023 | $ 4,354 | |
Restructuring charge, net of reversals | 2,900 | 5,400 | ||
Period charges | 2,874 | 5,409 | ||
Severance Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liabilities | 389 | 1,616 | $ 5,737 | $ 389 |
Restructuring charge, net of reversals | 200 | 200 | ||
Period charges | 347 | 321 | ||
Lease abandonment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Period charges | 1,900 | $ 1,300 | ||
Contract Termination and Professional Fees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge, net of reversals | $ 1,000 |
Restructuring Charges Restructu
Restructuring Charges Restructuring Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | $ 5,739 | $ 5,854 | |
Period charges | 3,274 | 5,908 | |
Period reversals | (243) | (305) | |
Non cash adjustments | (1,876) | (1,344) | |
Period payments | (2,151) | (4,374) | |
Ending Balance | 4,743 | 5,739 | |
Restructuring accrual recorded as current in other accrued liabilities | (2,588) | $ (5,854) | |
Restructuring accrual recorded as non-current in other long-term liabilities | 2,155 | ||
Excess Facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 4,023 | ||
Period charges | 2,874 | 5,409 | |
Period reversals | (14) | ||
Non cash adjustments | (1,876) | (1,344) | |
Period payments | (653) | (42) | |
Ending Balance | 4,354 | 4,023 | |
Severance Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 1,616 | 5,737 | |
Period charges | 347 | 321 | |
Period reversals | (209) | (235) | |
Period payments | (1,365) | (4,207) | |
Ending Balance | 389 | 1,616 | |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 100 | 117 | |
Period charges | 53 | 178 | |
Period reversals | (20) | (70) | |
Period payments | $ (133) | (125) | |
Ending Balance | $ 100 |
Commitments and Contingencies (
Commitments and Contingencies (Details) BRL in Millions | 6 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015BRL | Dec. 31, 2015BRL | Mar. 31, 2014USD ($) | Mar. 31, 2014BRL | |
Loss Contingencies [Line Items] | |||||
Non-cancelable purchase commitments | $ 64,300,000 | ||||
Accrual acquisition liability related to matter before acquisition of Enterasys | 2,400,000 | BRL 9.4 | |||
Foreign | |||||
Loss Contingencies [Line Items] | |||||
Value of tax credits disallowed | $ 900,000 | BRL 3.4 | |||
Estimated interest in penalties | 4,300,000 | BRL 16.6 | |||
Foreign | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Potential total tax liability | BRL | 23.4 | ||||
Foreign | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Potential total tax liability | 6,000,000 | ||||
Foreign | The State of Sao Paolo v. Enterasys Networks do Brazil Ltda | |||||
Loss Contingencies [Line Items] | |||||
Estimated court fees | $ 1,000,000 | BRL 4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Provision for income taxes | $ 1,203 | $ 1,330 | $ 2,101 | $ 2,338 |
Unrecognized tax benefits | 11,500 | 11,500 | ||
Enterasys Networks, Inc. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax amortization deduction for capitalized goodwill | 1,100 | 2,200 | ||
Deferred tax liability, goodwill | $ 3,600 | $ 3,600 | ||
Amortization period for tax purposes | 15 years |
Net Loss Per Share (Schedule of
Net Loss Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (7,234) | $ (13,105) | $ (18,760) | $ (32,435) |
Weighted-average shares used in per share calculation - basic and diluted | 102,369 | 98,677 | 101,677 | 97,996 |
Net loss per share - basic and diluted | $ (0.07) | $ (0.13) | $ (0.18) | $ (0.33) |
Net Loss Per Share (Schedule 51
Net Loss Per Share (Schedule of Anti-Dilutive Shares Excluded from Earnings Per Share Calculation (Details) - shares shares in Thousands | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 5,280 | 9,203 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 1,895 | 1,369 |
Employee Stock Purchase Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 449 | 563 |
Foreign Exchange Forward Cont52
Foreign Exchange Forward Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||
Foreign currency transaction realized (loss) gain, less than for the three months ended December 31, 2014 | $ 0.2 | $ 0.1 | $ 1.3 | $ (0.3) |
Disclosure about Segments of 53
Disclosure about Segments of an Enterprise and Geographic Areas (Narratives) (Details) | 6 Months Ended |
Dec. 31, 2015SegmentGeographic_Area | |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 1 |
Number of geographic regions | Geographic_Area | 3 |
Disclosure about Segments of 54
Disclosure about Segments of an Enterprise and Geographic Areas (Schedule of Revenues by Geographic Regions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 139,305 | $ 147,208 | $ 263,886 | $ 283,482 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 58,749 | 58,160 | 115,093 | 116,648 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 7,743 | 12,576 | 13,585 | 19,917 |
Total Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 66,492 | 70,736 | 128,678 | 136,565 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 60,102 | 62,574 | 111,128 | 116,509 |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 12,711 | $ 13,898 | $ 24,080 | $ 30,408 |
Disclosure about Segments of 55
Disclosure about Segments of an Enterprise and Geographic Areas (Schedule of Long Lived Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 95,704 | $ 119,789 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 72,674 | 87,071 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 20,498 | 29,610 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 2,532 | $ 3,108 |