Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Jan. 26, 2017 | |
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, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | EXTR | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 108,170,914 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 103,786 | $ 94,122 |
Accounts receivable, net of allowances of $2,451 at December 31, 2016 and $3,257 at June 30, 2016 | 117,819 | 81,419 |
Inventories | 47,394 | 40,989 |
Prepaid expenses and other current assets | 14,806 | 12,438 |
Total current assets | 283,805 | 228,968 |
Property and equipment, net | 30,599 | 29,580 |
Intangible assets, net | 29,854 | 19,762 |
Goodwill | 80,713 | 70,877 |
Other assets | 25,026 | 25,236 |
Total assets | 449,997 | 374,423 |
Current liabilities: | ||
Current portion of long-term debt | 10,020 | 17,628 |
Accounts payable | 26,841 | 30,711 |
Accrued compensation and benefits | 28,188 | 27,145 |
Accrued warranty | 10,228 | 9,600 |
Deferred revenue, net | 81,404 | 72,934 |
Deferred distributors revenue, net of cost of sales to distributors | 41,333 | 26,817 |
Other accrued liabilities | 39,885 | 26,691 |
Total current liabilities | 237,899 | 211,526 |
Deferred revenue, less current portion | 24,519 | 21,926 |
Long-term debt, less current portion | 87,127 | 37,446 |
Deferred income taxes | 5,615 | 4,693 |
Other long-term liabilities | 9,017 | 8,635 |
Commitments and contingencies (Note 9) | ||
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; 108,051,089 shares issued and outstanding at December 31, 2016 and 104,942,665 shares issued and outstanding at June 30, 2016 | 108 | 105 |
Additional paid-in-capital | 896,390 | 884,706 |
Accumulated other comprehensive loss | (3,848) | (2,874) |
Accumulated deficit | (806,830) | (791,740) |
Total stockholders’ equity | 85,820 | 90,197 |
Total liabilities and stockholders’ equity | $ 449,997 | $ 374,423 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Current assets: | ||
Allowance for doubtful accounts | $ 2,451 | $ 3,257 |
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 | 108,051,089 | 104,942,665 |
Common stock, shares outstanding | 108,051,089 | 104,942,665 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenues: | ||||
Product | $ 109,789 | $ 105,355 | $ 199,920 | $ 196,736 |
Service | 38,322 | 33,950 | 70,833 | 67,150 |
Total net revenues | 148,111 | 139,305 | 270,753 | 263,886 |
Cost of revenues: | ||||
Product | 58,659 | 57,103 | 103,586 | 104,037 |
Service | 14,098 | 11,927 | 26,567 | 24,456 |
Total cost of revenues | 72,757 | 69,030 | 130,153 | 128,493 |
Gross profit: | ||||
Product | 51,130 | 48,252 | 96,334 | 92,699 |
Service | 24,224 | 22,023 | 44,266 | 42,694 |
Total gross profit | 75,354 | 70,275 | 140,600 | 135,393 |
Operating expenses: | ||||
Research and development | 24,013 | 20,716 | 42,312 | 40,984 |
Sales and marketing | 41,109 | 37,058 | 78,065 | 73,120 |
General and administrative | 9,397 | 9,775 | 17,684 | 18,951 |
Acquisition and integration costs | 4,169 | 807 | 6,490 | 1,145 |
Restructuring and related charges, net of reversals | 1,853 | 3,031 | 1,853 | 8,634 |
Amortization of intangibles | 2,175 | 4,251 | 6,317 | 8,718 |
Total operating expenses | 82,716 | 75,638 | 152,721 | 151,552 |
Operating loss | (7,362) | (5,363) | (12,121) | (16,159) |
Interest income | 81 | 29 | 138 | 56 |
Interest expense | (1,176) | (809) | (1,823) | (1,635) |
Other income | 1,025 | 112 | 802 | 1,079 |
Loss before income taxes | (7,432) | (6,031) | (13,004) | (16,659) |
Provision for income taxes | 1,179 | 1,203 | 2,086 | 2,101 |
Net loss | $ (8,611) | $ (7,234) | $ (15,090) | $ (18,760) |
Basic and diluted net loss per share: | ||||
Net loss per share - basic | $ (0.08) | $ (0.07) | $ (0.14) | $ (0.18) |
Net loss per share - diluted | $ (0.08) | $ (0.07) | $ (0.14) | $ (0.18) |
Shares used in per share calculation - basic | 107,425 | 102,369 | 106,690 | 101,677 |
Shares used in per share calculation - diluted | 107,425 | 102,369 | 106,690 | 101,677 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss: | $ (8,611) | $ (7,234) | $ (15,090) | $ (18,760) |
Other comprehensive loss, net of tax: | ||||
Net change in foreign currency translation adjustments | (1,100) | (421) | (974) | (1,285) |
Other comprehensive loss | (1,100) | (421) | (974) | (1,285) |
Total comprehensive loss | $ (9,711) | $ (7,655) | $ (16,064) | $ (20,045) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (15,090) | $ (18,760) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 4,832 | 5,366 |
Amortization of intangible assets | 11,593 | 16,994 |
Provision for doubtful accounts and allowance for product returns | 154 | 2,122 |
Stock-based compensation | 6,856 | 8,616 |
Non-cash restructuring and related charges | 1,718 | 3,220 |
Other non-cash charges | 680 | (275) |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (18,737) | 15,180 |
Inventories | 6,004 | 1,413 |
Prepaid expenses and other assets | 7,004 | 277 |
Accounts payable | (4,444) | (14,628) |
Accrued compensation and benefits | (916) | 3,800 |
Deferred revenue | (2,469) | (2,729) |
Deferred distributor revenue, net of cost of sales to distributors | 14,516 | (6,874) |
Other current and long term liabilities | 7,587 | 245 |
Net cash provided by operating activities | 19,288 | 13,967 |
Cash flows from investing activities: | ||
Capital expenditures | (4,662) | (1,409) |
Acquisition | (51,088) | |
Net cash used in investing activities | (55,750) | (1,409) |
Cash flows from financing activities: | ||
Borrowings under Revolving Facility | 15,000 | |
Borrowings under Term Loan | 48,250 | |
Loan fees on borrowings | (1,327) | |
Repayment of debt | (5,513) | (19,875) |
Proceeds from issuance of common stock | 4,831 | 2,330 |
Net cash provided by (used in) financing activities | 46,241 | (2,545) |
Foreign currency effect on cash | (115) | (373) |
Net increase in cash and cash equivalents | 9,664 | 9,640 |
Cash and cash equivalents at beginning of period | 94,122 | 76,225 |
Cash and cash equivalents at end of period | $ 103,786 | $ 85,865 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Dec. 31, 2016 | |
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., together with its subsidiaries (collectively referred to as “Extreme” or “the Company”) is a leader in providing software-driven networking solutions for enterprise customers. The Company conducts its sales and marketing activities on a worldwide basis through distributors, resellers and the Company’s field sales organization. Extreme was incorporated in California in 1996 and reincorporated in Delaware in 1999. The unaudited condensed consolidated financial statements of Extreme 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, 2016 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, 2016. 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 at December 31, 2016 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 2017 or any future periods. Fiscal Year The Company uses a fiscal calendar year ending on June 30. All references herein to "fiscal 2017" or "2017" represent the fiscal year ending June 30, 2017. 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 and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. 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. 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 from these estimates. |
Business Combinations
Business Combinations | 6 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | 2. Business Combinations On October 28, 2016 (the “Acquisition Date”), the Company completed the acquisition of Zebra Technologies Corporation’s (“Zebra”) wireless LAN assets (the “WLAN Business”). Under the terms of the purchase agreement, the Company acquired customers, employees, technology and other assets as well as assumed certain contracts and other liabilities of the WLAN Business, for cash consideration of $51.1 million. The purchase price consideration is provisional as it is still pending finalization of post close adjustments as defined in the purchase agreement. All accounts noted above are “preliminary” to the table below as all accounts are open. The acquisition has been accounted for using the acquisition method of accounting. The provisional purchase price has been allocated on a preliminary basis to tangible and intangible assets acquired and liabilities assumed. The final purchase price allocation is pending the finalization of valuations, which may result in an adjustment to the preliminary purchase price allocation. Also, additional information which existed as of the acquisition date, but was unknown to the Company at that time, may become known to the Company during the remainder of the measurement period (up to one year from the acquisition date), and may result in a change in the purchase price allocation. While management believes that its preliminary estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired and liabilities assumed, and the resulting amount of goodwill. The following table below summarizes the allocation as of December 31, 2016 of the tangible and identifiable intangible assets acquired and liabilities assumed: December 31, 2016 Receivables $ 17,818 Inventory 12,408 Other current assets 808 Property and equipment 1,780 Identifiable intangible assets 20,500 In-process research and development 1,600 Other assets 7,634 Goodwill 9,836 Current liabilities (7,763 ) Deferred revenue (13,533 ) Total purchase price allocation $ 51,088 The estimated purchase price has been allocated based on the preliminary estimates of the fair value of assets acquired and liabilities assumed as of the acquisition date. The fair value of working capital related items, such as accounts receivable, other current assets and accrued liabilities, approximated their book values at the date of acquisition. Inventories were valued at fair value using the net realizable value approach. The fair value of property and equipment was determined using a cost approach. Valuations of the intangible assets were valued using income approaches based on projections provided by management, which we consider to be Level 3 inputs. The Company also continues to analyze the tax implications of the acquisition of these Assets which may ultimately impact the overall level of goodwill associated with the acquisition. The following table presents details of the identifiable intangible assets acquired as part of the acquisition (in thousands): Intangible Assets Estimated Useful Life (in years) Amount Developed technology 6 $ 14,500 Customer relationships 4 3,400 Trademarks 5 2,600 Total identifiable intangible assets $ 20,500 The amortization for the developed technology is recorded in “Cost of revenues” for product and the amortization for the remaining intangibles is recorded in “Amortization of intangibles” on the condensed consolidated statement of operations. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of the WLAN Business. The Company anticipates both the goodwill and intangible assets to be fully deductible for tax purposes. The Company also has an indefinite lived asset of $1.6 million which represents the fair value of in-process research and development activities. Once the related research and development efforts are completed, the Company will determine whether the asset will continue to be an indefinite lived asset or is become a finite lived asset and apply the appropriate accounting accordingly. The results of operations of the WLAN Business are included in the consolidated results of operations beginning October 28, 2016. The Company incurred $6.5 million acquisition-related expenses of which $4.2 million was incurred in the three months ended December 31, 2016. Such acquisition-related costs are included in "Acquisition and integration costs" on the condensed consolidated statement of operations. The costs, which the Company expensed as incurred, consist primarily of professional fees to financial and legal advisors and IT consultants and companies. Pro forma financial information The following unaudited pro forma results of operations are presented as though the acquisition of the WLAN Business had occurred as of the beginning of the earliest period presented after giving effect to purchase accounting adjustments relating to inventories, deferred revenue, depreciation and amortization on acquired property and equipment and intangibles, interest income and expense and related tax effects. The pro forma results of operations do not reflect the impact of non-recurring charges that have resulted from or in connection with the acquisition including acquisition and integration expenses incurred in connection with the acquisition. The pro forma results of operations are not necessarily indicative of the combined results that would have occurred had the acquisition been consummated as of the earliest period presented, nor are they necessarily indicative of future operating results. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the unaudited pro forma results. The unaudited pro forma financial information for the three months ended December 31, 2016 combines the results of Extreme for the three months ended December 31, 2016, which include the results of the WLAN Business subsequent to the acquisition date, and the historical results of the WLAN Business for the month ended October 28, 2016. The unaudited pro forma financial information for the six months ended December 31, 2016 combines the results for Extreme for the six months ended December 31, 2016, which include the results of the WLAN Business subsequent to the acquisition date, and the historical results of the WLAN Business for the three months ended September 30, 2016 and the month ended October 28, 2016. The unaudited pro forma financial information for the three and six months ended December 31, 2015 combines the historical results for Extreme for those periods, with the historical results of the WLAN Business for the three and six months ended December 31, 2015. The following table summarizes the unaudited pro forma financial information (in thousands, except per share amounts): Three Months Ended Six Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Net revenues $ 158,929 $ 174,679 $ 314,025 $ 330,665 Net income (loss) $ 3,920 $ (12,006 ) $ (4,786 ) $ (41,509 ) Net earnings (loss) per share - basic $ 0.04 $ (0.12 ) $ (0.04 ) $ (0.41 ) Net earnings (loss) per share - diluted $ 0.04 $ (0.12 ) $ (0.04 ) $ (0.41 ) Shares used in per share calculation - basic 107,425 102,369 106,690 101,677 Shares used in per share calculation - diluted 110,152 102,369 106,690 101,677 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. 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, 2016. Except for the following policy, there have been no material changes to the Company's significant accounting policies since the filing of the Annual Report on Form 10-K. Business Combinations The Company applies the acquisition method of accounting for business combinations. Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the completion of the transaction. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, intangibles and other asset lives, among other items. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. As a result, the Company may have been required to value the acquired assets at fair value measures that do not reflect its intended use of those assets. Use of different estimates and judgments could yield different results. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. Although the Company believes the assumptions and estimates it has made are reasonable and appropriate, they are based in part on historical experience and information that may be obtained from the management of the acquired company and are inherently uncertain. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company's consolidated statements of operations. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 4. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, Compensation – Stock Compensation • In recording share-based compensation expense, the standard allows companies to make a policy election as to whether they will include an estimate of awards expected to be forfeited or whether they will account for forfeitures as they occur. The Company has elected to not include an estimated forfeiture rate in the computation of its share-based compensation expense. This election did not have a material impact on the Company’s condensed consolidated financial statements and accordingly no adjustment was made to beginning accumulated deficit to apply the modified retrospective method. • The standard requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the consolidated statements of cash flows. Previously, the Company included these cash flows in financing activities and therefore the adoption of this provision had no impact. • The new standard requires that the tax effects of share-based compensation be recognized in the income tax provision. Previously, these amounts were recognized in additional paid-in capital. Given the full valuation allowance against the US deferred tax assets, there will be no impact to the effective tax rate until such time as the valuation allowance may be reversed. • The standard also requires previously unrecognized excess tax benefits to be recognized on a modified retrospective basis. Unrecognized tax benefits result when a deduction for stock based compensation does not actually reduce taxes payable. The Company has recorded $13.5 million and $0.9 million of previously unrecorded deferred tax assets for federal and state net operating losses, respectively, with a corresponding increase to the valuation allowance pursuant to the evidence discussed in Note 9. The cumulative net impact to accumulated deficit of early adoption of this provision was therefore zero. • ASU 2016-09 also requires excess tax benefits to be presented as an operating activity on the statement of cash flows rather than as a financing activity on either a retrospective or prospective basis. The Company has elected to apply this provision of the standard on a prospective basis. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs In connection with the Company’s adoption of ASU 2015-03 in fiscal 2017, all debt issuance costs have been presented, with the exception of those related to the revolving credit facility, as a reduction of the carrying amount of the related debt liability. The previously reported balances in the Company’s June 30, 2016 Form 10-K for debt issuance costs listed in “Other assets” have been reclassified to “Current portion of long-term debt” in the amount of $0.2 $0.2 . |
Balance Sheet Accounts
Balance Sheet Accounts | 6 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Accounts | 5. Balance Sheet Accounts Cash and Cash Equivalents The following is a summary of cash and cash equivalents (in thousands): December 31, 2016 June 30, 2016 Cash $ 99,506 $ 89,847 Cash equivalents 4,280 4,275 Total cash and cash equivalents $ 103,786 $ 94,122 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, 2016 and June 30, 2016 were $47.4 million and $41.0 million, respectively. The Company values its inventory at lower of cost or net realizable value. 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. Inventory consists of the following (in thousands): December 31, 2016 June 30, 2016 Finished goods $ 45,679 $ 38,751 Raw materials 1,715 2,238 Total Inventory $ 47,394 $ 40,989 Property and Equipment, Net Property and equipment consist of the following (in thousands): December 31, 2016 June 30, 2016 Computer equipment $ 35,547 $ 34,657 Purchased software 10,013 5,574 Office equipment, furniture and fixtures 10,302 10,385 Leasehold improvements 21,601 19,342 Total property and equipment 77,463 69,958 Less: accumulated depreciation and amortization (46,864 ) (40,378 ) Property and equipment, net $ 30,599 $ 29,580 Intangibles The following tables summarize the components of gross and net intangible asset balances (dollars in thousands): Weighted Average Remaining Amortization Gross Carrying Accumulated Net Carrying Period Amount Amortization Amount December 31, 2016 Developed technology 5.69 years $ 55,500 $ 41,165 $ 14,335 Customer relationships 3.84 years 40,400 37,142 3,258 Maintenance contracts 1.84 years 17,000 10,767 6,233 Trademarks 4.84 years 5,100 2,586 2,514 License agreements 6.80 years 2,445 984 1,461 Other intangibles 3.20 years 1,382 929 453 Total intangibles, net with finite lives 121,827 93,573 28,254 In-process research and development, with indefinite life 1,600 - 1,600 Total intangibles, net $ 123,427 $ 93,573 $ 29,854 Weighted Average Remaining Amortization Gross Accumulated Net Carrying Period Amount Amortization Amount June 30, 2016 Developed technology 0.30 years $ 48,000 $ 43,028 $ 4,972 Customer relationships 0.30 years 37,000 32,889 4,111 Maintenance contracts 2.30 years 17,000 9,067 7,933 Trademarks 0.30 years 2,500 2,222 278 License agreements 9.70 years 3,413 1,473 1,940 Other intangibles 3.70 years 1,428 900 528 Total intangibles, net $ 109,341 $ 89,579 $ 19,762 The amortization expense of intangibles for the periods presented is summarized below (in thousands): Three Months Ended Six Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Amortization in "Cost of revenues: Product" $ 1,720 $ 3,852 $ 5,276 $ 8,276 Amortization of intangibles 2,175 4,251 6,317 8,718 Total amortization $ 3,895 $ 8,103 $ 11,593 $ 16,994 The amortization expense that is recognized in “Cost of revenues: Product” is comprised of amortization for developed technology, license agreements and other intangibles. Goodwill The following table summarizes goodwill for the periods presented (in thousands): December 31, 2016 June 30, 2016 Balance at beginning of period $ 70,877 $ 70,877 Additions during period 9,836 — Balance at end of period $ 80,713 $ 70,877 During the three months ended December 31, 2016, the Company completed the acquisition of certain assets and liabilities from Zebra resulting in an additional $9.8 million of goodwill. See Note 2 for additional information related to the acquisition. 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, 2016 June 30, 2016 Deferred maintenance $ 84,595 $ 83,419 Deferred maintenance assumed due to acquisition 13,533 - Deferred product and other revenue 7,795 11,441 Total deferred revenue, net 105,923 94,860 Less: current portion 81,404 72,934 Non-current deferred revenue, net $ 24,519 $ 21,926 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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Balance beginning of period $ 84,334 $ 85,255 $ 83,419 $ 87,441 Deferred maintenance assumed due to acquisition 13,533 - 13,533 - New maintenance arrangements 33,765 29,773 62,510 56,819 Recognition of maintenance revenue (33,504 ) (30,322 ) (61,334 ) (59,554 ) Balance end of period 98,128 84,706 98,128 84,706 Less: current portion 73,609 63,201 73,609 63,201 Non-current deferred revenue $ 24,519 $ 21,505 $ 24,519 $ 21,505 Deferred Distributors Revenue, Net of Cost of Sales to Distributors The Company records revenue from its stocking distributors on a sell-through basis, recording deferred revenue and deferred cost of sales associated with all sales transactions to these distributors in “Deferred distributors revenue, net of cost of sales to distributors” in the liability section of its condensed consolidated balance sheets. 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, 2016 June 30, 2016 Deferred distributors revenue $ 54,471 $ 35,138 Deferred cost of sales to distributors (13,138 ) (8,321 ) Deferred distributors revenue, net of cost of sales to distributors $ 41,333 $ 26,817 Debt The Company’s debt is comprised of the following (in thousands): December 31, 2016 June 30, 2016 Current portion of long-term debt: Term Loan $ 10,020 $ 17,628 Current portion of long-term debt $ 10,020 $ 17,628 Long-term debt, less current portion: Term Loan $ 77,127 $ 27,446 Revolving Facility 10,000 10,000 Total long-term debt, less current portion 87,127 37,446 Total debt $ 97,147 $ 55,074 During the three months ended December 31, 2016, the Company entered into an Amended and Restated Credit Agreement (the “Credit Facility, as amended”) with Silicon Valley Bank, JPMorgan Chase Bank, N.A., Bank of America, N.A., Cadence Bank, N.A., and Comerica Bank (collectively, the “Lenders”). The Credit Facility, as amended provides for a five-year $ 90.5 50.0 5.0 10.0 Borrowings under the Term Loan bear interest, at our option, at a rate equal to either the LIBOR rate (subject to a 0.0 3.25 1.25 0.0 3.25 1.25 0.375 0.50 The Company had $23.7 million of availability under the Revolver as of December 31, 2016. The Company had $0.9 million of outstanding letters of credit under the Revolver as of December 31, 2016. 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. 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 months ended December 31, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Balance beginning of period $ 8,620 $ 9,244 $ 9,600 $ 8,676 Warranties assumed due to acquisition 2,034 - 2,034 - New warranties issued 1,176 2,956 2,104 5,520 Warranty expenditures (1,602 ) (1,785 ) (3,510 ) (3,781 ) Balance end of period $ 10,228 $ 10,415 $ 10,228 $ 10,415 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. 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, 2016 and 2015, 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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Tech Data Corporation 16% 19% 16% 16% Jenne 14% 12% 15% 11% Westcon Group Inc. 13% 14% 12% 15% Avnet * * 11% * * Less than 10% of net revenue The following customers account for more than 10% of our accounts receivable outstanding as of December 31, 2016, Westcon Group Inc. 17% and Tech Data Corporation 11%. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. 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, 2016 Level 1 Level 2 Level 3 Total Assets Investments: Money market funds $ 4,280 $ — $ — $ 4,280 Liabilities Derivative Instruments: Foreign currency contracts (43 ) $ (43 ) Total $ 4,280 $ (43 ) $ - $ 4,237 June 30, 2016 Level 1 Level 2 Level 3 Total Assets Investments: Money market funds $ 4,275 $ — $ — $ 4,275 Total $ 4,275 $ — $ — $ 4,275 Level 2 investments : The Company does not hold any 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 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 indebtedness of $98.2 million and $55.5 million as of December 31, 2016 and June 30, 2016, 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, 2016 or 2015. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Dec. 31, 2016 | |
Share Based Compensation [Abstract] | |
Share-based Compensation | 7. Shares reserved for issuance The Company had reserved for issuance for the periods noted (in thousands): December 31, 2016 June 30, 2016 2014 Employee Stock Purchase Plan 8,897 10,001 Employee stock options and awards outstanding 10,450 10,609 2013 Employee Plan shares available for grant 1,553 5,401 Total shares reserved for issuance 20,900 26,011 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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Cost of product revenue $ 122 $ 277 $ 190 $ 572 Cost of service revenue 186 277 418 644 Research and development 906 1,165 1,968 2,795 Sales and marketing 1,180 1,291 2,321 2,719 General and administrative 987 935 1,959 1,886 Total share-based compensation expense $ 3,381 $ 3,945 $ 6,856 $ 8,616 During the three months ended December 31, 2016 and 2015, 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 of time or based upon the satisfaction of certain performance criteria. The Company uses the straight-line method for expense attribution, and beginning with fiscal 2017, the Company does not estimate forfeitures, but accounts for them as incurred. The following table summarizes stock award activity for the six months ended December 31, 2016 (in thousands, except grant date fair value): Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Market Value Non-vested stock awards outstanding at June 30, 2016 4,224 $ 3.36 Granted 3,148 3.90 Vested (1,164 ) 4.25 Cancelled (326 ) 2.88 Non-vested stock awards outstanding at December 31, 2016 5,882 $ 3.49 $ 29,587 The following table summarizes stock option activity for the six months ended December 31, 2016 (in thousands, except per share and contractual term): Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value Options outstanding at June 30, 2016 6,385 $ 4.10 3.70 $ 1,416 Granted - - Exercised (944 ) 3.43 Cancelled (873 ) 4.56 Options outstanding at December 31, 2016 4,568 $ 4.15 3.79 $ 4,742 Exercisable at December 31, 2016 3,419 $ 4.49 3.36 $ 2,490 Vested and expected to vest at December 31, 2016 4,568 $ 4.15 3.79 $ 4,742 There were 4,800 stock options granted during the three and six months ended December 31, 2015. 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 the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock. The fair value of each restricted stock award grant with performance criteria (“PSU’s”) under the Company's 2013 Plan is estimated on the date of grant using 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. On August 1, 2016, the Compensation Committee of the Company approved the grant of 680,000 awards of restricted stock units to the Company’s Executive Officers, with a grant date of August 15, 2016. Fifty percent (50%) of the restricted stock units granted were in the form of PSUs and fifty percent (50%) of the restricted stock units granted were in the form of service-based restricted stock units (“RSUs”). The RSUs vest from the original grant date as to one-third (1/3) on the one year anniversary and one-twelfth (1/12) each quarter thereafter, Company The PSUs vest once the Company's stock price equals or exceeds $5.00 per share for 30 consecutive trading days after January 1, 2017 ("Performance Threshold"). Once the Performance Threshold is satisfied the PSUs shall vest with respect to the number of RSUs that have vested as of the date the Performance Threshold is satisfied and thereafter shall vest on the same schedule as the RSUs, subject to continued service to the Company. If the Performance Threshold is not met by the third anniversary of the grant date the award is terminated for no consideration. In addition, the Performance Threshold shall be deemed satisfied upon the closing of a Change in Control (within the meaning of the Company’s 2013 Equity Incentive Plan) in the event the per share consideration received by the Company’s stockholders equals or exceeds $5.00 per share. The fair value of each share purchase option under the Company's 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 ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock. There were no shares granted under the Company’s 2014 Employee Stock Purchase Plan (“ESPP”) during the three months ended December 31, 2016 and 2015. Stock Option Plan Employee Stock Purchase Plan Three Months Ended Six Months Ended Six Months Ended December 31, 2015 December 31, 2015 December 31, 2016 December 31, 2015 Expected life 4.0 years 4.0 years 1.21 years 1.25 years Risk-free interest rate 1.78 % 1.78 % 0.33 % 0.29 % Volatility 52 % 52 % 58 % 58 % Dividend yield — % — % — % — % |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Dec. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 8. Restructuring Charges As of December 31, 2016, restructuring liabilities were $3.8 million and consisted of obligations for estimated future obligations for non-cancelable lease payments for excess facilities. With the acquisition of certain assets and liabilities from Zebra, the Company assumed a facility lease located at 6480 Via del Oro, San Jose CA. The Company will consolidate its existing workforce with employees assumed from Zebra in the Via del Oro site. The Company expects to cease use of the remaining 34,905 sf of the Rio Robles site by January 31, 2017. Because the Company expects to cease use of the Rio Robles facility by January 31, 2017, and will abandon all leasehold improvements, it will accelerate the amortization of the remaining leasehold improvements balance for this site over the shortened service period such that the net book value of the lease hold improvements on the cease-use date will be zero. The Company recorded accelerated amortization expense in the three month period ended December 31, 2016 of $1.7 million and it is reflected in "Restructuring and related charges, net of reversals" in the condensed consolidated statements of operations. Previous restructuring charges included obligations for estimated future obligations for non-cancelable lease payments, offset for future sub-leasing income. The Company has estimated future 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 evaluates estimated sub-lease income on a regular basis and adjust the accrual as necessary if and when facts should change. In the three months ended December 31, 2016 the Company recorded a charge of $0.1 million to adjust its estimated future sub-lease income for its exited facilities. This charge is reflected in "Restructuring and related charges, net of reversals" in the condensed consolidated statements of operations. Fiscal 2016 Restructuring During the first quarter fiscal of 2016, 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 and related charges, net of reversals" in the condensed consolidated statements of operations. During the second quarter fiscal of 2016, 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 and related charges, net of reversals" in the condensed consolidated statements of operations Restructuring and related liabilities consist of (in thousands): Excess Facilities Other Total Balance as of June 30, 2016 4,644 — 4,644 Period charges 135 1,718 1,853 Non cash charges — (1,718 ) (1,718 ) Period payments (956 ) — (956 ) Balance as of December 31, 2016 $ 3,823 $ — $ 3,823 Less: current portion included in Other accrued liabilities 1,481 Restructuring accrual included in Other long-term liabilities $ 2,342 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Purchase Commitments The Company currently has arrangements with contract manufacturers and suppliers for the manufacture of its products. Those arrangements allow the contract manufactures 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, 2016, the Company had non-cancelable commitments to purchase $93.6 million of such inventory. As of December 31, 2016 the Company had non-cancelable software and maintenance support commitments to purchase $24.2 of software and support services. 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”). The State of Sao Paolo, Brazil denied Enterasys Networks do Brazil Ltda. the use of certain tax credits granted by the State of Espirito Santo, Brazil under the terms of the FUNDAP program for the tax years of 2002 through 2009. The Company’s application to resolve the ICMS Tax Assessments at the administrative level of the Sao Paolo Tax Department under the amnesty relief program (Reference No 3.056.963-1) was denied in March, 2014, by the Sao Paolo Tax Administration. All currency conversions in this Legal Proceedings section are as of December 31, 2016. The value of the ICMS tax credits that were disallowed by the Sao Paolo Tax Administration is BRL 3.4 million (US $1.0 million), plus interest and penalties BRL 17.7 million (US $5.4 million). Possible court fees are estimated to be BRL 4.2 million (US $1.3 million). On January 10, 2014, the Company filed a lawsuit to overturn or reduce the ICMS Assessments, which lawsuit remains on-going. As part of this lawsuit, the Company made a request for a stay of execution, so that no tax foreclosure can be filed until a final ruling is made and no guarantee needs to be presented. On or about October 6, 2014, the preliminary injunction was granted with regard to the stay of execution, and in response to an appeal on the guarantee requirement, the appellate court further ruled on or about January 28, 2015 that no cash deposit (or guarantee) need be made by the Company. 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 its 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 the Company is 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, it is 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 BRL 25.3 million (US $7.8 million). The Company does not expect a final judicial determination for several years. The Company believes BRL 9.4 million (US $2.9 million) is the best estimate within the range and has recorded an accrual as of the Acquisition Date of Enterasys Networks 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. These conditions include the offsetting of foreign income tax benefits realized by the Company in the connection with the acquisition of Enterasys. Based upon current projections of the foreign income tax benefits to be realized, the Company does not anticipate that any amounts under the indemnification will be due from the Seller in connection with either the ICMS Tax Assessments or any potential tax assessments for tax years 2012 and 2013. 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 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 class of investors who purchased the Company's common stock from September 12, 2013 through April 9, 2015. On June 28, 2016, the court appointed a lead plaintiff. On September 26, 2016, lead plaintiff filed a consolidated complaint. On November 10, 2016 defendants filed a motion to dismiss. The motion is scheduled to be heard, after completion of the briefing, on February 9, 2017. The Company believes the claims are without merit and intends to vigorously defend the claims. On February 18, 2016, a shareholder derivative case was filed in the Superior Court of California, Santa Clara County, Shaffer v. Kispert et al., No. 16 CV 291726. The complaint names current and former officers and members of the Board of Directors as defendants and seeks recovery on behalf of the Company based on substantially the same allegations as the securities class action litigation described above. The parties have agreed to stay the case pending further activities in the securities class action litigation, and the court signed a stipulation to that effect. Dunti Network Technologies, LLC v Extreme Networks, Inc. Patent Infringement Suit On September 22, 2016, the Company was served with a patent infringement complaint by Dunti Network Technologies, LLC in the U.S. District Court for the Eastern District of Texas. The case is Dunti Network Technologies, LLC v. Extreme Networks, Inc., No. 2:16-cv-01034. The complaint asserts infringement of U.S. Patent Nos. 6,587,462, 6,788,701, 6,804,235, 6,643,286, and 7,778,259. The complaint asserts that the Company infringes based on its manufacture, use, sale, and/or offer for sale of the Company’s BlackDiamond-X, Summit X670, and Summit X770 series switches. Dunti sought damages of an unspecified amount. Dunti moved to dismiss the case and the case against the Company was dismissed by the court as of December 27, 2016. 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 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, 2016, the Company had no outstanding indemnification claims. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes For the three months ended December 31, 2016 and 2015, the Company recorded an income tax provision of $1.2 million and $1.2 million, respectively. For the six months ended December 31, 2016 and 2015, the Company recorded an income tax provision of $2.1 million and $2.1 million, respectively. The income tax provisions for the three months ended December 31, 2016 and 2015, consisted primarily of taxes on the income of the Company’s 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. and the WLAN Business of Zebra. The income tax provisions for both fiscal years were calculated based on the actual results of operations for the three months ended December 31, 2016 and 2015, 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 and Japan. 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. The acquisition of Enterasys included a U.S. parent company as well as its wholly-owned domestic and foreign subsidiaries. The Company 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 months ended December 31, 2016 and 2015, the Company deducted $1.1 million of tax amortization expense for each period related to capitalized goodwill. As of December 31, 2016, the Company recorded a deferred tax liability of $5.3 million related to this amortization which is not considered a future source of taxable income in evaluating the need for a valuation allowance against its deferred tax assets. The Company had $19.0 million of unrecognized tax benefits as of December 31, 2016. The future impact of the unrecognized tax benefit of $18.9 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 2000 forward due to net operating losses. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 11. 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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Net loss $ (8,611 ) $ (7,234 ) $ (15,090 ) $ (18,760 ) Weighted-average shares used in per share calculation - basic and diluted 107,425 102,369 106,690 101,677 Net loss per share - basic and diluted $ (0.08 ) $ (0.07 ) $ (0.14 ) $ (0.18 ) 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): Three Months Ended Six Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Options to purchase common stock 2,301 5,280 2,762 5,608 Restricted stock units 28 138 79 77 Employee Stock Purchase Plan shares 330 449 330 449 Total shares excluded 2,659 5,867 3,171 6,134 |
Foreign Exchange Forward Contra
Foreign Exchange Forward Contracts | 6 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Foreign Exchange Forward Contracts | 12. Foreign Exchange Forward Contracts The Company uses derivative financial instruments to manage exposures to foreign currency. The Company’s objective for holding derivatives is to use the most effective methods to minimize the impact of these exposures. The Company does not enter into derivatives for speculative or trading purposes. The Company records all derivatives on the balance sheet as "Other accrued liabilities" at fair value. Changes in the fair value of derivatives are recognized in earnings as "Other Income". The Company enters into foreign exchange forward contracts to mitigate the effect of gains and losses generated by foreign currency 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. At December 31, 2016, forward foreign currency contracts had a notional principal amount of $4.8 million and an immaterial unrealized loss. These contracts have maturities of less than 60 days. 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, 2015, the Company did not have any derivative instruments outstanding. Foreign currency transactions gains and losses from operations was gain of $1.1 million and $0.2 million for the three months ended December 31, 2016 and 2015, respectively. Foreign currency transactions gains and losses from operations was gain of $0.8 million and $1.3 million for the six months ended December 31, 2016 and 2015, respectively. |
Disclosure about Segments of an
Disclosure about Segments of an Enterprise and Geographic Areas | 6 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Disclosure about Segments of an Enterprise and Geographic Areas | 13. 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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Americas: United States $ 69,193 $ 58,749 $ 123,051 $ 115,093 Other 9,985 7,743 18,170 13,585 Total Americas 79,178 66,492 141,221 128,678 EMEA: Germany 19,277 17,818 43,864 32,356 Other 37,406 42,284 63,468 78,772 Total EMEA 56,683 60,102 107,332 111,128 APAC: 12,250 12,711 22,200 24,080 Total net revenues $ 148,111 $ 139,305 $ 270,753 $ 263,886 Long Lived Assets: December 31, 2016 June 30, 2016 Americas $ 75,156 $ 58,277 EMEA 7,833 14,234 APAC 2,490 2,493 Total long lived assets $ 85,479 $ 75,004 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On January 5, 2017, Extreme Networks, Inc. (the "Company") approved and on January 6, 2017 began executing a reduction-in-force plan (the ”Plan”) to re-align the Company’s resources as a result of the Company’s purchase of the wireless LAN business of Zebra Technologies Corporation. The Company expects to incur charges of approximately $6.5 million and affected employees worldwide and all functional areas. Upon completion of the Plan, the potential savings is expected to yield annualized savings of approximately $8.0 million. The costs associated with this Plan are primarily employee severance and benefits expenses. The amount and timing of the actual charges may vary due to required consultation activities with certain employees as well as compliance with statutory severance requirements in local jurisdictions. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company uses a fiscal calendar year ending on June 30. All references herein to "fiscal 2017" or "2017" represent the fiscal year ending June 30, 2017. 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 and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. 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. |
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 from these estimates. |
Business Combinations | Business Combinations The Company applies the acquisition method of accounting for business combinations. Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the completion of the transaction. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, intangibles and other asset lives, among other items. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. As a result, the Company may have been required to value the acquired assets at fair value measures that do not reflect its intended use of those assets. Use of different estimates and judgments could yield different results. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. Although the Company believes the assumptions and estimates it has made are reasonable and appropriate, they are based in part on historical experience and information that may be obtained from the management of the acquired company and are inherently uncertain. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company's consolidated statements of operations. |
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. |
Inventory Valuation | Inventory Valuation The Company’s inventory balances as of December 31, 2016 and June 30, 2016 were $47.4 million and $41.0 million, respectively. The Company values its inventory at lower of cost or net realizable value. 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. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consist of the following (in thousands): December 31, 2016 June 30, 2016 Computer equipment $ 35,547 $ 34,657 Purchased software 10,013 5,574 Office equipment, furniture and fixtures 10,302 10,385 Leasehold improvements 21,601 19,342 Total property and equipment 77,463 69,958 Less: accumulated depreciation and amortization (46,864 ) (40,378 ) Property and equipment, net $ 30,599 $ 29,580 |
Deferred Revenue, Net | 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 stocking distributors on a sell-through basis, recording deferred revenue and deferred cost of sales associated with all sales transactions to these distributors in “Deferred distributors revenue, net of cost of sales to distributors” in the liability section of its condensed consolidated balance sheets. 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. 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. 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. |
Concentrations | 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. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed | The following table below summarizes the allocation as of December 31, 2016 of the tangible and identifiable intangible assets acquired and liabilities assumed: December 31, 2016 Receivables $ 17,818 Inventory 12,408 Other current assets 808 Property and equipment 1,780 Identifiable intangible assets 20,500 In-process research and development 1,600 Other assets 7,634 Goodwill 9,836 Current liabilities (7,763 ) Deferred revenue (13,533 ) Total purchase price allocation $ 51,088 |
Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition | The following table presents details of the identifiable intangible assets acquired as part of the acquisition (in thousands): Intangible Assets Estimated Useful Life (in years) Amount Developed technology 6 $ 14,500 Customer relationships 4 3,400 Trademarks 5 2,600 Total identifiable intangible assets $ 20,500 |
Summary of Unaudited Pro Forma Financial Information | The following table summarizes the unaudited pro forma financial information (in thousands, except per share amounts): Three Months Ended Six Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Net revenues $ 158,929 $ 174,679 $ 314,025 $ 330,665 Net income (loss) $ 3,920 $ (12,006 ) $ (4,786 ) $ (41,509 ) Net earnings (loss) per share - basic $ 0.04 $ (0.12 ) $ (0.04 ) $ (0.41 ) Net earnings (loss) per share - diluted $ 0.04 $ (0.12 ) $ (0.04 ) $ (0.41 ) Shares used in per share calculation - basic 107,425 102,369 106,690 101,677 Shares used in per share calculation - diluted 110,152 102,369 106,690 101,677 |
Balance Sheet Accounts (Tables)
Balance Sheet Accounts (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Cash and Cash Equivalents | The following is a summary of cash and cash equivalents (in thousands): December 31, 2016 June 30, 2016 Cash $ 99,506 $ 89,847 Cash equivalents 4,280 4,275 Total cash and cash equivalents $ 103,786 $ 94,122 |
Components of Inventory | Inventory consists of the following (in thousands): December 31, 2016 June 30, 2016 Finished goods $ 45,679 $ 38,751 Raw materials 1,715 2,238 Total Inventory $ 47,394 $ 40,989 |
Components of Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2016 June 30, 2016 Computer equipment $ 35,547 $ 34,657 Purchased software 10,013 5,574 Office equipment, furniture and fixtures 10,302 10,385 Leasehold improvements 21,601 19,342 Total property and equipment 77,463 69,958 Less: accumulated depreciation and amortization (46,864 ) (40,378 ) Property and equipment, net $ 30,599 $ 29,580 |
Components of Gross and Net Intangible Asset Balances | The following tables summarize the components of gross and net intangible asset balances (dollars in thousands): Weighted Average Remaining Amortization Gross Carrying Accumulated Net Carrying Period Amount Amortization Amount December 31, 2016 Developed technology 5.69 years $ 55,500 $ 41,165 $ 14,335 Customer relationships 3.84 years 40,400 37,142 3,258 Maintenance contracts 1.84 years 17,000 10,767 6,233 Trademarks 4.84 years 5,100 2,586 2,514 License agreements 6.80 years 2,445 984 1,461 Other intangibles 3.20 years 1,382 929 453 Total intangibles, net with finite lives 121,827 93,573 28,254 In-process research and development, with indefinite life 1,600 - 1,600 Total intangibles, net $ 123,427 $ 93,573 $ 29,854 Weighted Average Remaining Amortization Gross Accumulated Net Carrying Period Amount Amortization Amount June 30, 2016 Developed technology 0.30 years $ 48,000 $ 43,028 $ 4,972 Customer relationships 0.30 years 37,000 32,889 4,111 Maintenance contracts 2.30 years 17,000 9,067 7,933 Trademarks 0.30 years 2,500 2,222 278 License agreements 9.70 years 3,413 1,473 1,940 Other intangibles 3.70 years 1,428 900 528 Total intangibles, net $ 109,341 $ 89,579 $ 19,762 |
Summary of Amortization Expense of Intangibles | The amortization expense of intangibles for the periods presented is summarized below (in thousands): Three Months Ended Six Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Amortization in "Cost of revenues: Product" $ 1,720 $ 3,852 $ 5,276 $ 8,276 Amortization of intangibles 2,175 4,251 6,317 8,718 Total amortization $ 3,895 $ 8,103 $ 11,593 $ 16,994 |
Summary of Goodwill | The following table summarizes goodwill for the periods presented (in thousands): December 31, 2016 June 30, 2016 Balance at beginning of period $ 70,877 $ 70,877 Additions during period 9,836 — Balance at end of period $ 80,713 $ 70,877 |
Summary of Deferred Revenue, Net | The following table summarizes deferred revenue, net (in thousands): December 31, 2016 June 30, 2016 Deferred maintenance $ 84,595 $ 83,419 Deferred maintenance assumed due to acquisition 13,533 - Deferred product and other revenue 7,795 11,441 Total deferred revenue, net 105,923 94,860 Less: current portion 81,404 72,934 Non-current deferred revenue, net $ 24,519 $ 21,926 |
Schedule of Change in Deferred Support Revenue Balance | 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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Balance beginning of period $ 84,334 $ 85,255 $ 83,419 $ 87,441 Deferred maintenance assumed due to acquisition 13,533 - 13,533 - New maintenance arrangements 33,765 29,773 62,510 56,819 Recognition of maintenance revenue (33,504 ) (30,322 ) (61,334 ) (59,554 ) Balance end of period 98,128 84,706 98,128 84,706 Less: current portion 73,609 63,201 73,609 63,201 Non-current deferred revenue $ 24,519 $ 21,505 $ 24,519 $ 21,505 |
Summary of Deferred Distributors Revenue | The following table summarizes deferred distributors revenue, net of cost of sales to distributors (in thousands): December 31, 2016 June 30, 2016 Deferred distributors revenue $ 54,471 $ 35,138 Deferred cost of sales to distributors (13,138 ) (8,321 ) Deferred distributors revenue, net of cost of sales to distributors $ 41,333 $ 26,817 |
Components of Debt | The Company’s debt is comprised of the following (in thousands): December 31, 2016 June 30, 2016 Current portion of long-term debt: Term Loan $ 10,020 $ 17,628 Current portion of long-term debt $ 10,020 $ 17,628 Long-term debt, less current portion: Term Loan $ 77,127 $ 27,446 Revolving Facility 10,000 10,000 Total long-term debt, less current portion 87,127 37,446 Total debt $ 97,147 $ 55,074 |
Summary of Product Warranty Liability Activity | The following table summarizes the activity related to the Company’s product warranty liability during the three months ended December 31, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Balance beginning of period $ 8,620 $ 9,244 $ 9,600 $ 8,676 Warranties assumed due to acquisition 2,034 - 2,034 - New warranties issued 1,176 2,956 2,104 5,520 Warranty expenditures (1,602 ) (1,785 ) (3,510 ) (3,781 ) Balance end of period $ 10,228 $ 10,415 $ 10,228 $ 10,415 |
Schedule of Major Customers Accounting for 10% or More of Net Revenue | The following table sets forth major customers accounting for 10% or more of our net revenue: Three Months Ended Six Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Tech Data Corporation 16% 19% 16% 16% Jenne 14% 12% 15% 11% Westcon Group Inc. 13% 14% 12% 15% Avnet * * 11% * * Less than 10% of net revenue |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value for Financial Assets Measured on 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, 2016 Level 1 Level 2 Level 3 Total Assets Investments: Money market funds $ 4,280 $ — $ — $ 4,280 Liabilities Derivative Instruments: Foreign currency contracts (43 ) $ (43 ) Total $ 4,280 $ (43 ) $ - $ 4,237 June 30, 2016 Level 1 Level 2 Level 3 Total Assets Investments: Money market funds $ 4,275 $ — $ — $ 4,275 Total $ 4,275 $ — $ — $ 4,275 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Share Based Compensation [Abstract] | |
Shares Reserved for Issuance | The Company had reserved for issuance for the periods noted (in thousands): December 31, 2016 June 30, 2016 2014 Employee Stock Purchase Plan 8,897 10,001 Employee stock options and awards outstanding 10,450 10,609 2013 Employee Plan shares available for grant 1,553 5,401 Total shares reserved for issuance 20,900 26,011 |
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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Cost of product revenue $ 122 $ 277 $ 190 $ 572 Cost of service revenue 186 277 418 644 Research and development 906 1,165 1,968 2,795 Sales and marketing 1,180 1,291 2,321 2,719 General and administrative 987 935 1,959 1,886 Total share-based compensation expense $ 3,381 $ 3,945 $ 6,856 $ 8,616 |
Summary of Stock Award Activity | The following table summarizes stock award activity for the six months ended December 31, 2016 (in thousands, except grant date fair value): Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Market Value Non-vested stock awards outstanding at June 30, 2016 4,224 $ 3.36 Granted 3,148 3.90 Vested (1,164 ) 4.25 Cancelled (326 ) 2.88 Non-vested stock awards outstanding at December 31, 2016 5,882 $ 3.49 $ 29,587 |
Summary of Stock Option Activity | The following table summarizes stock option activity for the six months ended December 31, 2016 (in thousands, except per share and contractual term): Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value Options outstanding at June 30, 2016 6,385 $ 4.10 3.70 $ 1,416 Granted - - Exercised (944 ) 3.43 Cancelled (873 ) 4.56 Options outstanding at December 31, 2016 4,568 $ 4.15 3.79 $ 4,742 Exercisable at December 31, 2016 3,419 $ 4.49 3.36 $ 2,490 Vested and expected to vest at December 31, 2016 4,568 $ 4.15 3.79 $ 4,742 |
Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards | The fair value of each share purchase option under the Company's 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 ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock. There were no shares granted under the Company’s 2014 Employee Stock Purchase Plan (“ESPP”) during the three months ended December 31, 2016 and 2015. Stock Option Plan Employee Stock Purchase Plan Three Months Ended Six Months Ended Six Months Ended December 31, 2015 December 31, 2015 December 31, 2016 December 31, 2015 Expected life 4.0 years 4.0 years 1.21 years 1.25 years Risk-free interest rate 1.78 % 1.78 % 0.33 % 0.29 % Volatility 52 % 52 % 58 % 58 % Dividend yield — % — % — % — % |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Liabilities | Restructuring and related liabilities consist of (in thousands): Excess Facilities Other Total Balance as of June 30, 2016 4,644 — 4,644 Period charges 135 1,718 1,853 Non cash charges — (1,718 ) (1,718 ) Period payments (956 ) — (956 ) Balance as of December 31, 2016 $ 3,823 $ — $ 3,823 Less: current portion included in Other accrued liabilities 1,481 Restructuring accrual included in Other long-term liabilities $ 2,342 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Net loss $ (8,611 ) $ (7,234 ) $ (15,090 ) $ (18,760 ) Weighted-average shares used in per share calculation - basic and diluted 107,425 102,369 106,690 101,677 Net loss per share - basic and diluted $ (0.08 ) $ (0.07 ) $ (0.14 ) $ (0.18 ) |
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): Three Months Ended Six Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Options to purchase common stock 2,301 5,280 2,762 5,608 Restricted stock units 28 138 79 77 Employee Stock Purchase Plan shares 330 449 330 449 Total shares excluded 2,659 5,867 3,171 6,134 |
Disclosure about Segments of 28
Disclosure about Segments of an Enterprise and Geographic Areas (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Americas: United States $ 69,193 $ 58,749 $ 123,051 $ 115,093 Other 9,985 7,743 18,170 13,585 Total Americas 79,178 66,492 141,221 128,678 EMEA: Germany 19,277 17,818 43,864 32,356 Other 37,406 42,284 63,468 78,772 Total EMEA 56,683 60,102 107,332 111,128 APAC: 12,250 12,711 22,200 24,080 Total net revenues $ 148,111 $ 139,305 $ 270,753 $ 263,886 |
Schedule of Long Lived Assets by Segment | Long Lived Assets: December 31, 2016 June 30, 2016 Americas $ 75,156 $ 58,277 EMEA 7,833 14,234 APAC 2,490 2,493 Total long lived assets $ 85,479 $ 75,004 |
Business Combinations (Narrativ
Business Combinations (Narratives) (Details) - USD ($) $ in Thousands | Oct. 28, 2016 | Dec. 31, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Business acquisition, consideration paid in cash | $ 51,088 | ||
In-Process Research and Development | |||
Business Acquisition [Line Items] | |||
Fair value of indefinite lived intangibles | $ 1,600 | $ 1,600 | |
Maximum | |||
Business Acquisition [Line Items] | |||
Business acquisition measurement period | 1 year | ||
Zebra Technologies Corporation | |||
Business Acquisition [Line Items] | |||
Business acquisition, consideration paid in cash | $ 51,100 | ||
Zebra Technologies Corporation | Acquisition and Integration Costs | |||
Business Acquisition [Line Items] | |||
Acquisition-related expenses | 4,200 | $ 6,500 | |
Zebra Technologies Corporation | In-Process Research and Development | |||
Business Acquisition [Line Items] | |||
Fair value of indefinite lived intangibles | $ 1,600 | $ 1,600 | |
Zebra Technologies Corporation | Maximum | |||
Business Acquisition [Line Items] | |||
Business acquisition measurement period | 1 year |
Business Combinations (Summary
Business Combinations (Summary of Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed) (Details) - Zebra Technologies Corporation $ in Thousands | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |
Receivables | $ 17,818 |
Inventory | 12,408 |
Other current assets | 808 |
Property and equipment | 1,780 |
Identifiable intangible assets | 20,500 |
In-process research and development | 1,600 |
Other assets | 7,634 |
Goodwill | 9,836 |
Current liabilities | (7,763) |
Deferred revenue | (13,533) |
Total purchase price allocation | $ 51,088 |
Business Combinations (Schedule
Business Combinations (Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition) (Details) - Zebra Technologies Corporation $ in Thousands | Oct. 28, 2016USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 20,500 |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 6 years |
Amount | $ 14,500 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 4 years |
Amount | $ 3,400 |
Trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 5 years |
Amount | $ 2,600 |
Business Combinations (Summar32
Business Combinations (Summary of Unaudited Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition Pro Forma Information [Abstract] | ||||
Net revenues | $ 158,929 | $ 174,679 | $ 314,025 | $ 330,665 |
Net income (loss) | $ 3,920 | $ (12,006) | $ (4,786) | $ (41,509) |
Net earnings (loss) per share - basic | $ 0.04 | $ (0.12) | $ (0.04) | $ (0.41) |
Net earnings (loss) per share - diluted | $ 0.04 | $ (0.12) | $ (0.04) | $ (0.41) |
Shares used in per share calculation - basic | 107,425 | 102,369 | 106,690 | 101,677 |
Shares used in per share calculation - diluted | 110,152 | 102,369 | 106,690 | 101,677 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Narratives) (Details) | 6 Months Ended |
Dec. 31, 2016 | |
Maximum | |
Significant Accounting Policies [Line Items] | |
Business acquisition measurement period | 1 year |
Recent Accounting Pronounceme34
Recent Accounting Pronouncements (Narratives) (Details) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Current portion of long-term debt | $ 10,020,000 | $ 17,628,000 |
Long-term debt, less current portion | 87,127,000 | $ 37,446,000 |
Accounting Standards Update 2015-03 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Current portion of long-term debt | 200,000 | |
Long-term debt, less current portion | 200,000 | |
New Accounting Pronouncement, Early Adoption, Effect | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cumulative net impact to accumulated deficit | 0 | |
Federal | New Accounting Pronouncement, Early Adoption, Effect | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Deferred tax assets for operating losses | 13,500,000 | |
State | New Accounting Pronouncement, Early Adoption, Effect | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Deferred tax assets for operating losses | $ 900,000 |
Balance Sheet Accounts (Summary
Balance Sheet Accounts (Summary of Cash and Cash Equivalents) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Cash | $ 99,506 | $ 89,847 | ||
Cash equivalents | 4,280 | 4,275 | ||
Total cash and cash equivalents | $ 103,786 | $ 94,122 | $ 85,865 | $ 76,225 |
Balance Sheet Accounts (Narrati
Balance Sheet Accounts (Narratives) (Details) - USD ($) | Oct. 28, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 |
Balance Sheet Accounts [Line Items] | ||||
Inventory, net | $ 47,394,000 | $ 47,394,000 | $ 40,989,000 | |
Additional goodwill related to acquisition | $ 9,836,000 | |||
Standard hardware warranty period (in months) | 12 months | |||
Standard software warranty period (in days) | 90 days | |||
Limited lifetime hardware warranty maximum period after end of sale of product (in years) | 5 years | |||
Maximum investment in one obligor or maker (percent) | 10.00% | |||
Accounts Receivable | Westcon Group Inc. | ||||
Balance Sheet Accounts [Line Items] | ||||
Concentration risk (percent) | 17.00% | |||
Accounts Receivable | Tech Data Corporation | ||||
Balance Sheet Accounts [Line Items] | ||||
Concentration risk (percent) | 11.00% | |||
Revolving Facility | ||||
Balance Sheet Accounts [Line Items] | ||||
Borrowing capacity from Credit Facility, as amended | 23,700,000 | $ 23,700,000 | ||
Outstanding letters of credit | 900,000 | $ 900,000 | ||
Zebra Technologies Corporation | ||||
Balance Sheet Accounts [Line Items] | ||||
Additional goodwill related to acquisition | $ 9,800,000 | |||
Zebra Technologies Corporation | Swing line loan sub facility | ||||
Balance Sheet Accounts [Line Items] | ||||
Borrowing capacity from Credit Facility, as amended | $ 5,000,000 | |||
Zebra Technologies Corporation | Revolving Facility | ||||
Balance Sheet Accounts [Line Items] | ||||
Credit Facility, as amended term | 5 years | |||
Borrowing capacity from Credit Facility, as amended | $ 50,000,000 | |||
Interest rate, floor | 0.00% | |||
Zebra Technologies Corporation | Revolving Facility | London Interbank Offered Rate (LIBOR) | ||||
Balance Sheet Accounts [Line Items] | ||||
Interest rate, applicable margin | 3.25% | |||
Zebra Technologies Corporation | Revolving Facility | Prime Rate | ||||
Balance Sheet Accounts [Line Items] | ||||
Interest rate, applicable margin | 1.25% | |||
Zebra Technologies Corporation | Term Loan | ||||
Balance Sheet Accounts [Line Items] | ||||
Credit Facility, as amended term | 5 years | |||
Borrowing capacity from Credit Facility, as amended | $ 90,500,000 | |||
Interest rate, floor | 0.00% | |||
Zebra Technologies Corporation | Term Loan | London Interbank Offered Rate (LIBOR) | ||||
Balance Sheet Accounts [Line Items] | ||||
Interest rate, applicable margin | 3.25% | |||
Zebra Technologies Corporation | Term Loan | Adjusted Base Rate | ||||
Balance Sheet Accounts [Line Items] | ||||
Interest rate, applicable margin | 1.25% | |||
Zebra Technologies Corporation | Letter of Credit | ||||
Balance Sheet Accounts [Line Items] | ||||
Borrowing capacity from Credit Facility, as amended | $ 10,000,000 | |||
Maximum | ||||
Balance Sheet Accounts [Line Items] | ||||
Extended warranty period | 5 years | |||
Maximum | Zebra Technologies Corporation | Revolving Facility | ||||
Balance Sheet Accounts [Line Items] | ||||
Commitment fee | 0.50% | |||
Minimum | ||||
Balance Sheet Accounts [Line Items] | ||||
Extended warranty period | 1 year | |||
Minimum | Zebra Technologies Corporation | Revolving Facility | ||||
Balance Sheet Accounts [Line Items] | ||||
Commitment fee | 0.375% | |||
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 |
Balance Sheet Accounts (Compone
Balance Sheet Accounts (Components of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Finished goods | $ 45,679 | $ 38,751 |
Raw materials | 1,715 | 2,238 |
Total Inventory | $ 47,394 | $ 40,989 |
Balance Sheet Accounts (Compo38
Balance Sheet Accounts (Components of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 77,463 | $ 69,958 |
Less: accumulated depreciation and amortization | (46,864) | (40,378) |
Property and equipment, net | 30,599 | 29,580 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 35,547 | 34,657 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,013 | 5,574 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,302 | 10,385 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 21,601 | $ 19,342 |
Balance Sheet Accounts (Compo39
Balance Sheet Accounts (Components of Gross and Net Intangible Asset Balances) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Jun. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 121,827 | $ 109,341 |
Accumulated Amortization | 93,573 | 89,579 |
Net Carrying Amount | 28,254 | 19,762 |
Gross Carrying Amount, Intangibles | 123,427 | |
Accumulated Amortization, Intangibles | 93,573 | |
Intangible assets, net | $ 29,854 | $ 19,762 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 5 years 8 months 9 days | 3 months 18 days |
Gross Carrying Amount | $ 55,500 | $ 48,000 |
Accumulated Amortization | 41,165 | 43,028 |
Net Carrying Amount | $ 14,335 | $ 4,972 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 3 years 10 months 2 days | 3 months 18 days |
Gross Carrying Amount | $ 40,400 | $ 37,000 |
Accumulated Amortization | 37,142 | 32,889 |
Net Carrying Amount | $ 3,258 | $ 4,111 |
Maintenance contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 1 year 10 months 2 days | 2 years 3 months 18 days |
Gross Carrying Amount | $ 17,000 | $ 17,000 |
Accumulated Amortization | 10,767 | 9,067 |
Net Carrying Amount | $ 6,233 | $ 7,933 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 4 years 10 months 2 days | 3 months 18 days |
Gross Carrying Amount | $ 5,100 | $ 2,500 |
Accumulated Amortization | 2,586 | 2,222 |
Net Carrying Amount | $ 2,514 | $ 278 |
License agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 6 years 9 months 18 days | 9 years 8 months 12 days |
Gross Carrying Amount | $ 2,445 | $ 3,413 |
Accumulated Amortization | 984 | 1,473 |
Net Carrying Amount | $ 1,461 | $ 1,940 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 3 years 2 months 12 days | 3 years 8 months 12 days |
Gross Carrying Amount | $ 1,382 | $ 1,428 |
Accumulated Amortization | 929 | 900 |
Net Carrying Amount | 453 | $ 528 |
In-Process Research and Development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Fair value of indefinite lived intangibles | $ 1,600 |
Balance Sheet Accounts (Summa40
Balance Sheet Accounts (Summary of Amortization Expense of Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Amortization in "Cost of revenues: Product" | $ 1,720 | $ 3,852 | $ 5,276 | $ 8,276 |
Amortization of intangibles | 2,175 | 4,251 | 6,317 | 8,718 |
Total amortization | $ 3,895 | $ 8,103 | $ 11,593 | $ 16,994 |
Balance Sheet Accounts (Summa41
Balance Sheet Accounts (Summary of Goodwill) (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 70,877 |
Additions during period | 9,836 |
Balance at end of period | $ 80,713 |
Balance Sheet Accounts (Summa42
Balance Sheet Accounts (Summary of Deferred Revenue, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, net | $ 105,923 | $ 94,860 |
Less: current portion | 81,404 | 72,934 |
Non-current deferred revenue, net | 24,519 | 21,926 |
Deferred Maintenance | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, net | 84,595 | 83,419 |
Deferred Maintenance Assumed Due to Acquisition | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, net | 13,533 | |
Deferred Product and Other Revenue | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, net | $ 7,795 | $ 11,441 |
Balance Sheet Accounts (Schedul
Balance Sheet Accounts (Schedule of Change in Deferred Support Revenue Balance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Movement in Deferred Revenue [Roll Forward] | |||||
Balance beginning of period | $ 94,860 | ||||
Balance end of period | $ 105,923 | 105,923 | |||
Less: current portion | 81,404 | 81,404 | $ 72,934 | ||
Non-current deferred revenue, net | 24,519 | 24,519 | $ 21,926 | ||
Deferred Support Revenue | |||||
Movement in Deferred Revenue [Roll Forward] | |||||
Balance beginning of period | 84,334 | $ 85,255 | 83,419 | $ 87,441 | |
Deferred maintenance assumed due to acquisition | 13,533 | 13,533 | |||
New maintenance arrangements | 33,765 | 29,773 | 62,510 | 56,819 | |
Recognition of maintenance revenue | (33,504) | (30,322) | (61,334) | (59,554) | |
Balance end of period | 98,128 | 84,706 | 98,128 | 84,706 | |
Less: current portion | 73,609 | 63,201 | 73,609 | 63,201 | |
Non-current deferred revenue, net | $ 24,519 | $ 21,505 | $ 24,519 | $ 21,505 |
Balance Sheet Accounts (Summa44
Balance Sheet Accounts (Summary of Deferred Distributors Revenue) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred distributors revenue | $ 105,923 | $ 94,860 |
Deferred distributors revenue, net of cost of sales to distributors | 41,333 | 26,817 |
Distributors | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred distributors revenue | 54,471 | 35,138 |
Deferred cost of sales to distributors | (13,138) | (8,321) |
Deferred distributors revenue, net of cost of sales to distributors | $ 41,333 | $ 26,817 |
Balance Sheet Accounts (Compo45
Balance Sheet Accounts (Components of Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Line Of Credit Facility [Line Items] | ||
Current portion of long-term debt | $ 10,020 | $ 17,628 |
Long-term debt, less current portion | 87,127 | 37,446 |
Total debt | 97,147 | 55,074 |
Term Loan | ||
Line Of Credit Facility [Line Items] | ||
Current portion of long-term debt | 10,020 | 17,628 |
Long-term debt, less current portion | 77,127 | 27,446 |
Revolving Facility | ||
Line Of Credit Facility [Line Items] | ||
Long-term debt, less current portion | $ 10,000 | $ 10,000 |
Balance Sheet Accounts (Summa46
Balance Sheet Accounts (Summary of Product Warranty Liability Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance beginning of period | $ 8,620 | $ 9,244 | $ 9,600 | $ 8,676 |
Warranties assumed due to acquisition | 2,034 | 2,034 | ||
New warranties issued | 1,176 | 2,956 | 2,104 | 5,520 |
Warranty expenditures | (1,602) | (1,785) | (3,510) | (3,781) |
Balance end of period | $ 10,228 | $ 10,415 | $ 10,228 | $ 10,415 |
Balance Sheet Accounts (Sched47
Balance Sheet Accounts (Schedule of Major Customers Accounting for 10% or More of Net Revenue) (Details) - Net Revenue | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Westcon Group Inc. | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (percent) | 13.00% | 14.00% | 12.00% | 15.00% |
Tech Data Corporation | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (percent) | 16.00% | 19.00% | 16.00% | 16.00% |
Jenne | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (percent) | 14.00% | 12.00% | 15.00% | 11.00% |
Avnet | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (percent) | 11.00% |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value for Financial Assets Measured on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Assets | ||
Total | $ 4,275 | |
Liabilities | ||
Foreign currency contracts | $ (43) | |
Total | 4,237 | |
Money market funds | ||
Assets | ||
Investments | 4,280 | 4,275 |
Level 1 | ||
Assets | ||
Total | 4,275 | |
Liabilities | ||
Total | 4,280 | |
Level 1 | Money market funds | ||
Assets | ||
Investments | 4,280 | $ 4,275 |
Level 2 | ||
Liabilities | ||
Foreign currency contracts | (43) | |
Total | $ (43) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narratives) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Assets | |||||
Transfers of assets between Level 1 and Level 2 | $ 0 | $ 0 | |||
Transfers of Liabilities between Level 1 and Level 2 | 0 | 0 | |||
Long-term debt, fair value | 98,200,000 | 98,200,000 | $ 55,500,000 | ||
Intangible asset and goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Share-based Compensation (Share
Share-based Compensation (Shares Reserved for Issuance) (Details) - shares shares in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 20,900 | 26,011 |
2014 Employee Stock Purchase Plan | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 8,897 | 10,001 |
Employee Stock Options and Awards Outstanding | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 10,450 | 10,609 |
2013 Employee Plan Shares Available for Grant | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 1,553 | 5,401 |
Share-based Compensation (Sched
Share-based Compensation (Schedule of Recognized Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 3,381 | $ 3,945 | $ 6,856 | $ 8,616 |
Cost of Product Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 122 | 277 | 190 | 572 |
Cost of Service Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 186 | 277 | 418 | 644 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 906 | 1,165 | 1,968 | 2,795 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 1,180 | 1,291 | 2,321 | 2,719 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 987 | $ 935 | $ 1,959 | $ 1,886 |
Share-based Compensation (Summa
Share-based Compensation (Summary of Stock Award Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Number of Shares | |
Non-vested stock awards outstanding at June 30, 2016 | shares | 4,224 |
Granted | shares | 3,148 |
Vested | shares | (1,164) |
Cancelled | shares | (326) |
Non-vested stock awards outstanding at December 31, 2016 | shares | 5,882 |
Weighted-Average Grant Date Fair Value | |
Non-vested stock awards outstanding at June 30, 2016 | $ / shares | $ 3.36 |
Granted | $ / shares | 3.90 |
Vested | $ / shares | 4.25 |
Cancelled | $ / shares | 2.88 |
Non-vested stock awards outstanding at December 31, 2016 | $ / shares | $ 3.49 |
Aggregate Fair Market Value | |
Non-vested stock awards outstanding at December 31, 2016 | $ | $ 29,587 |
Share-based Compensation (Sum53
Share-based Compensation (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Number of Shares | ||||
Options outstanding at June 30, 2016 | 6,385,000 | |||
Granted | 4,800 | 4,800 | ||
Exercised | (944,000) | |||
Cancelled | (873,000) | |||
Options outstanding at December 31, 2016 | 4,568,000 | 6,385,000 | ||
Exercisable at December 31, 2016 | 3,419,000 | |||
Vested and expected to vest at December 31, 2016 | 4,568,000 | |||
Weighted-Average Exercise Price Per Share | ||||
Options outstanding at June 30, 2016 | $ 4.10 | |||
Exercised | 3.43 | |||
Cancelled | 4.56 | |||
Options outstanding at December 31, 2016 | 4.15 | $ 4.10 | ||
Exercisable at December 31, 2016 | 4.49 | |||
Vested and expected to vest at December 31, 2016 | $ 4.15 | |||
Weighted-Average Remaining Contractual Term | ||||
Options outstanding | 3 years 9 months 15 days | 3 years 8 months 12 days | ||
Exercisable at December 31, 2016 | 3 years 4 months 10 days | |||
Vested and expected to vest at December 31, 2016 | 3 years 9 months 15 days | |||
Aggregate Intrinsic Value | ||||
Options outstanding | $ 4,742 | $ 1,416 | ||
Exercisable at December 31, 2016 | 2,490 | |||
Vested and expected to vest at December 31, 2016 | $ 4,742 |
Share-based Compensation (Narra
Share-based Compensation (Narratives) (Details) - $ / shares | Aug. 15, 2016 | Aug. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted | 4,800 | 4,800 | ||||
Restricted stock units granted | 3,148,000 | |||||
2014 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted | 0 | 0 | ||||
Executive Officers | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units granted | 680,000 | |||||
Executive Officers | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units granted, percentage | 50.00% | |||||
Share-based compensation arrangement by share-based payment award, award vesting percentage | The RSUs vest from the original grant date as to one-third (1/3) on the one year anniversary and one-twelfth (1/12) each quarter thereafter, subject to continued service to the Company | |||||
Restricted stock units vesting, stock trigger price | $ 5 | |||||
Restricted stock units vesting, Threshold consecutive trading days after January 1, 2017 | 30 days | |||||
Executive Officers | Service-based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units granted, percentage | 50.00% |
Share-based Compensation (Sch55
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, 2016 | Dec. 31, 2015 | |
Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected life | 4 years | 4 years | |
Risk-free interest rate | 1.78% | 1.78% | |
Volatility | 52.00% | 52.00% | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected life | 1 year 2 months 16 days | 1 year 3 months | |
Risk-free interest rate | 0.33% | 0.29% | |
Volatility | 58.00% | 58.00% |
Restructuring Charges (Narrativ
Restructuring Charges (Narratives) (Details) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)ft² | Jun. 30, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liabilities | $ 3,823,000 | $ 3,823,000 | $ 4,644,000 | ||
Accelerated depreciation of leasehold improvements | $ 1,700,000 | ||||
Area of prior headquarters site remaining under lease | ft² | 34,905 | 34,905 | |||
Leasehold improvements related to prior headquarters at cease-use date | $ 0 | $ 0 | |||
Restructuring charges | 1,853,000 | ||||
Restructuring charge, net of reversals | $ 3,000,000 | $ 5,600,000 | |||
Percentage of reduction in floor space | 36.00% | ||||
Sub-Lease Income for Exited Facilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 100,000 | ||||
Excess Facilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liabilities | $ 3,823,000 | 3,823,000 | $ 4,644,000 | ||
Restructuring charges | $ 135,000 | ||||
Restructuring charge, net of reversals | $ 2,900,000 | 5,400,000 | |||
Severance Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charge, net of reversals | 200,000 | 200,000 | |||
Non-Cancelable Lease Payments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charge, net of reversals | 4,100,000 | ||||
Lease abandonment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1,900,000 | $ 1,300,000 | |||
Contract Termination Charges and Professional Fees | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charge, net of reversals | $ 1,000,000 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Liabilities) (Details) - USD ($) $ in Thousands | 6 Months Ended |
Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $ 4,644 |
Period charges | 1,853 |
Non cash charges | (1,718) |
Period payments | (956) |
Ending Balance | 3,823 |
Less: current portion included in Other accrued liabilities | 1,481 |
Restructuring accrual included in Other long-term liabilities | 2,342 |
Excess Facilities | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | 4,644 |
Period charges | 135 |
Period payments | (956) |
Ending Balance | 3,823 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Period charges | 1,718 |
Non cash charges | $ (1,718) |
Commitments and Contingencies (
Commitments and Contingencies (Narratives) (Details) - 6 months ended Dec. 31, 2016 BRL in Millions | USD ($) | BRL | BRL |
Foreign | Secretariat of the Federal Revenue Bureau of Brazil | |||
Loss Contingencies [Line Items] | |||
Value of tax credits disallowed | $ 1,000,000 | BRL 3.4 | |
Income tax examination, penalties and interest accrued | 5,400,000 | 17.7 | |
Estimated court fees | 1,300,000 | BRL 4.2 | |
Tax liability related to the ICMS Tax Assessments, accrued | 2,900,000 | 9.4 | |
Foreign | Secretariat of the Federal Revenue Bureau of Brazil | Maximum | |||
Loss Contingencies [Line Items] | |||
Potential tax liability related to the ICMS Tax Assessments | 7,800,000 | BRL 25.3 | |
Inventory Purchase Commitments | |||
Loss Contingencies [Line Items] | |||
Non-cancelable purchase commitments | 93,600,000 | ||
Software and Support Services Commitments | |||
Loss Contingencies [Line Items] | |||
Non-cancelable purchase commitments | $ 24,200,000 |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
Provision for income taxes | $ 1,179 | $ 1,203 | $ 2,086 | $ 2,101 |
Unrecognized tax benefits | 19,000 | 19,000 | ||
Enterasys Networks, Inc. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax amortization deduction for capitalized goodwill | 1,100 | $ 1,100 | ||
Deferred tax liability, goodwill | $ 5,300 | $ 5,300 | ||
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, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (8,611) | $ (7,234) | $ (15,090) | $ (18,760) |
Weighted-average shares used in per share calculation - basic and diluted | 107,425 | 102,369 | 106,690 | 101,677 |
Net loss per share - basic and diluted | $ (0.08) | $ (0.07) | $ (0.14) | $ (0.18) |
Net Loss Per Share (Schedule 61
Net Loss Per Share (Schedule of Anti-Dilutive Shares Excluded from Earnings Per Share Calculation) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of EPS | 2,659 | 5,867 | 3,171 | 6,134 |
Options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of EPS | 2,301 | 5,280 | 2,762 | 5,608 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of EPS | 28 | 138 | 79 | 77 |
Employee Stock Purchase Plan shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of EPS | 330 | 449 | 330 | 449 |
Foreign Exchange Forward Cont62
Foreign Exchange Forward Contracts (Narratives) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||||
Foreign currency transactions realized gain | $ 1,100,000 | $ 200,000 | $ 800,000 | $ 1,300,000 |
Not Designated as Hedging Instrument | Forward Foreign Currency Contracts | ||||
Derivative [Line Items] | ||||
Notional principal amount of forward foreign currency contracts | $ 4,800,000 | $ 4,800,000 | ||
Maximum maturities for contracts | 60 days | |||
Derivative instruments outstanding | $ 0 | $ 0 |
Disclosure about Segments of 63
Disclosure about Segments of an Enterprise and Geographic Areas (Narratives) (Details) | 6 Months Ended |
Dec. 31, 2016SegmentGeographic_Area | |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 1 |
Number of geographic regions | Geographic_Area | 3 |
Disclosure about Segments of 64
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, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 148,111 | $ 139,305 | $ 270,753 | $ 263,886 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 69,193 | 58,749 | 123,051 | 115,093 |
Other Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 9,985 | 7,743 | 18,170 | 13,585 |
Total Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 79,178 | 66,492 | 141,221 | 128,678 |
Germany | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 19,277 | 17,818 | 43,864 | 32,356 |
Other EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 37,406 | 42,284 | 63,468 | 78,772 |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 12,250 | 12,711 | 22,200 | 24,080 |
Total EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 56,683 | $ 60,102 | $ 107,332 | $ 111,128 |
Disclosure about Segments of 65
Disclosure about Segments of an Enterprise and Geographic Areas (Schedule of Long Lived Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 85,479 | $ 75,004 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 75,156 | 58,277 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 7,833 | 14,234 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 2,490 | $ 2,493 |
Subsequent Events - (Narratives
Subsequent Events - (Narratives) (Details) - Subsequent Event - Reduction-in-force Plan $ in Millions | Jan. 05, 2017USD ($) |
Subsequent Event [Line Items] | |
Execution date of plan | Jan. 6, 2017 |
Severance Benefits | |
Subsequent Event [Line Items] | |
Expected charges | $ 6.5 |
Expected annualized savings | $ 8 |