Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2017 | Nov. 03, 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 | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EXTR | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 113,420,099 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 153,014 | $ 130,450 |
Accounts receivable, net of allowance for doubtful accounts of $1,685 at September 30, 2017 and $1,190 at June 30, 2017 | 116,500 | 93,115 |
Inventories | 58,100 | 47,410 |
Prepaid expenses and other current assets | 18,237 | 27,867 |
Total current assets | 345,851 | 298,842 |
Property and equipment, net | 38,627 | 30,240 |
Intangible assets, net | 67,328 | 25,337 |
Goodwill | 118,554 | 80,216 |
Other assets | 27,524 | 25,065 |
Total assets | 597,884 | 459,700 |
Current liabilities: | ||
Current portion of long-term debt | 17,863 | 12,280 |
Accounts payable | 50,567 | 31,587 |
Accrued compensation and benefits | 38,810 | 42,662 |
Accrued warranty | 13,499 | 10,584 |
Deferred revenue | 90,705 | 79,048 |
Other accrued liabilities | 52,335 | 37,044 |
Total current liabilities | 263,779 | 213,205 |
Deferred revenue, less current portion | 28,500 | 25,293 |
Long-term debt, less current portion | 149,729 | 80,422 |
Deferred income taxes | 7,204 | 6,576 |
Other long-term liabilities | 13,235 | 8,526 |
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; 113,304,977 shares issued and outstanding at September 30, 2017 and 110,924,508 shares issued and outstanding at June 30, 2017 | 113 | 111 |
Additional paid-in-capital | 913,998 | 909,155 |
Accumulated other comprehensive loss | (1,764) | (2,302) |
Accumulated deficit | (776,910) | (781,286) |
Total stockholders’ equity | 135,437 | 125,678 |
Total liabilities and stockholders’ equity | $ 597,884 | $ 459,700 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Current assets: | ||
Allowance for doubtful accounts | $ 1,685 | $ 1,190 |
Stockholders’ equity: | ||
Convertible preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
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) | $ 1 | $ 1 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 113,304,977 | 110,924,508 |
Common stock, shares outstanding | 113,304,977 | 110,924,508 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Net revenues: | ||
Product | $ 164,774 | $ 90,093 |
Service | 46,941 | 32,511 |
Total net revenues | 211,715 | 122,604 |
Cost of revenues: | ||
Product | 80,045 | 44,249 |
Service | 19,289 | 12,469 |
Total cost of revenues | 99,334 | 56,718 |
Gross profit: | ||
Product | 84,729 | 45,844 |
Service | 27,652 | 20,042 |
Total gross profit | 112,381 | 65,886 |
Operating expenses: | ||
Research and development | 34,285 | 18,299 |
Sales and marketing | 55,561 | 36,859 |
General and administrative | 12,185 | 8,287 |
Acquisition and integration costs | 4,244 | 2,321 |
Amortization of intangibles | 1,614 | 4,142 |
Total operating expenses | 107,889 | 69,908 |
Operating income (loss) | 4,492 | (4,022) |
Interest income | 647 | 57 |
Interest expense | (2,215) | (647) |
Other income (expense), net | 3,127 | (223) |
Income (loss) before income taxes | 6,051 | (4,835) |
Provision for income taxes | 1,675 | 907 |
Net income (loss) | $ 4,376 | $ (5,742) |
Basic and diluted net income (loss) per share: | ||
Net income (loss) per share - basic | $ 0.04 | $ (0.05) |
Net income (loss) per share - diluted | $ 0.04 | $ (0.05) |
Shares used in per share calculation - basic | 112,241 | 105,955 |
Shares used in per share calculation - diluted | 118,431 | 105,955 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss): | $ 4,376 | $ (5,742) |
Available for sale securities: | ||
Change in unrealized gains on available for sale securities, net of taxes | 183 | |
Net change in foreign currency translation adjustments | 355 | 126 |
Other comprehensive income, net of tax: | 538 | 126 |
Total comprehensive income (loss) | $ 4,914 | $ (5,616) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 4,376 | $ (5,742) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 3,125 | 2,437 |
Amortization of intangible assets | 4,309 | 7,640 |
Provision for doubtful accounts | 489 | 223 |
Stock-based compensation | 4,803 | 3,475 |
Realized gain on sale of non-marketable equity investment | (3,757) | |
Other non-cash charges | 1,416 | 695 |
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed | ||
Accounts receivable | (5,762) | 16,606 |
Inventories | 5,915 | (3,312) |
Prepaid expenses and other assets | (1,856) | 1,465 |
Accounts payable | 9,042 | (3,154) |
Accrued compensation and benefits | (5,360) | (7,318) |
Deferred revenue | 4,650 | (2,622) |
Other current and long term liabilities | (2,792) | (819) |
Net cash provided by operating activities | 18,598 | 9,574 |
Cash flows from investing activities: | ||
Capital expenditures | (7,421) | (1,635) |
Acquisitions | (68,047) | |
Proceeds from sale of non-marketable equity investment | 4,922 | |
Net cash used in investing activities | (70,546) | (1,635) |
Cash flows from financing activities: | ||
Borrowings under Term Loan | 80,000 | |
Repayments of debt | (4,093) | (3,250) |
Loan fees on borrowings | (1,494) | |
Proceeds from issuance of common stock, net of tax | 42 | 3,416 |
Net cash provided by financing activities | 74,455 | 166 |
Foreign currency effect on cash | 57 | 38 |
Net increase in cash and cash equivalents | 22,564 | 8,143 |
Cash and cash equivalents at beginning of period | 130,450 | 94,122 |
Cash and cash equivalents at end of period | $ 153,014 | $ 102,265 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 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, 2017. 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 September 30, 2017. The results of operations for the three months ended September 30, 2017 are not necessarily indicative of the results that may be expected for fiscal 2018 or any future periods. Effective July 1, 2017, the Company adopted the requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standards, as indicated by the “as adjusted” footnote. Fiscal Year The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2018” or “2018” represent the fiscal year ending June 30, 2018. All references herein to “fiscal 2017” or “2017” represent the fiscal year ending June 30, 2017. 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 | 3 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | 2. Business Combinations 2018 Acquisition On July 14, 2017, (the “Avaya Closing Date”) the Company completed its acquisition of Avaya Inc.’s. (“Avaya”) fabric-based secure networking solutions and network security solutions business (“Avaya Networking”) that had been announced on March 7, 2017. Upon the terms and subject to the conditions of the asset purchase agreement (the “Avaya Purchase Agreement”), the Company acquired the customers, employees, technology and other assets of Avaya Networking, as well as assume certain contracts and other liabilities of Avaya Networking, for total provisional consideration of $79.8 The transaction 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 preliminary allocation as of September 30, 2017 of the tangible and identifiable intangible assets acquired and liabilities assumed: Preliminary Allocation as of July 14, 2017 Accounts receivables, net $ 18,112 Inventory 16,605 Other current assets 673 Property and equipment 3,768 Other long-term assets 2,568 Accounts payable and accrued expenses (29,716 ) Deferred revenue (10,214 ) Other liabilities (6,608 ) Net tangible assets acquired (4,812 ) Identifiable intangible assets 44,000 In-process research and development 2,300 Goodwill 38,338 Total intangible assets acquired 84,638 Total net assets acquired $ 79,826 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 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. The fair value of the acquired deferred revenue was estimated using the cost build-up approach. The cost build-up approach determines fair value using estimates of the costs required to provide the contracted deliverables plus an assumed profit. The total costs including the assumed profit were adjusted to present value using a discount rate considered appropriate. The resulting fair value approximates the amount that the Company would be required to pay a third party to assume the obligation. Valuations of the intangible assets were valued using income approaches based on projections provided by management, which the Company considers to be Level 3 inputs. The Company also continues to analyze the tax implications of the acquisition of the intangible 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 $ 34,800 Customer relationships 4 5,300 Trademarks 5 2,400 Backlog 1 1,500 Total identifiable intangible assets $ 44,000 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 Avaya Networking. The Company anticipates both the goodwill and intangible assets to be fully deductible for tax purposes. The Company also acquired an indefinite lived asset of $2.3 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 become a finite lived asset and apply the appropriate accounting accordingly. The results of operations of Avaya Networking The associated expenses of the Avaya Networking business have been incorporated with the results of operations of the Company as a product line and, therefore, stand-alone operating results are not available. 2017 Acquisition On October 28, 2016, the Company completed the acquisition of the wireless local area network business (“WLAN Business”) from Zebra Technologies Corporation The acquisition has been accounted for using the acquisition method of accounting. The purchase price allocation as of the acquisition date is set forth in the table below and reflects fair values. The fair values were determined through established and generally accepted valuation techniques, including work performed by third-party valuation specialists. All valuations were considered finalized as of June 30, 2017. The following table below summarizes the final allocation of the tangible and identifiable intangible assets acquired and liabilities assumed: Final Allocation as of October 28, 2016 Accounts receivables, net $ 14,636 Inventory 13,593 Other current assets 808 Property and equipment 3,159 Other long-term assets 7,634 Deferred revenue (14,159 ) Other liabilities (7,201 ) Total tangible assets acquired and liabilities assumed 18,470 Identifiable intangible assets 20,300 In-process research and development 1,400 Goodwill 9,339 Total intangible assets acquired 31,039 Total net assets acquired $ 49,509 The purchase price has been allocated based on the fair value of assets acquired and liabilities assumed as of the acquisition date. The fair value of working capital related items, such as 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. The fair value of the acquired deferred revenue was estimated using the cost build-up approach. The cost build-up approach determines fair value using estimates of the costs required to provide the contracted deliverables plus an assumed profit. The total costs including the assumed profit were adjusted to present value using a discount rate considered appropriate. The resulting fair value approximates the amount that the Company would be required to pay a third party to assume the obligation. Valuations of the intangible assets were valued using income approaches based on projections provided by management, which we consider to be Level 3 inputs. Pro forma financial information The following unaudited pro forma results of operations are presented as though the acquisition of Avaya Networking and 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, acquisition costs, interest income and expense and related tax effects. 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 September 30, 2017, combines the results for Extreme for the three months ended September 30, 2017, which include the results of Avaya Networking subsequent to the acquisition date, and the historical results of Avaya Networking for the month of July 2017 up to the acquisition date of July 14, 2017. Pro forma results of operations from Avaya Networking acquisition for the quarter ended September 30, 2017 prior to the acquisition date have not been adjusted for the adoption of ASC 606 because the Company determined that it was impractical to estimate the impact of the adoption. The unaudited pro forma financial information for the three months ended September 30, 2016, combines the historical results for Extreme for those periods, as adjusted for the adoption of ASC 606, with the historical results of Avaya Networking and WLAN Business for the three months ended September 30, 2016. Pro forma results of operations from Avaya Networking and WLAN Business acquisitions for the quarter ended September 30, 2016 have not been adjusted for the adoption of ASC 606 because the Company determined that it is impractical to estimate the impact of the adoption. The following table summarizes the unaudited pro forma financial information (in thousands, except per share amounts): Three Months Ended September 30, 2017 September 30, 2016 (As adjusted) Net revenues $ 222,382 $ 238,858 Net income (loss) $ 16,776 $ (8,936 ) Net income (loss) per share - basic $ 0.15 $ (0.08 ) Net income (loss) per share - diluted $ 0.14 $ (0.08 ) Shares used in per share calculation - basic 112,241 105,955 Shares used in per share calculation - diluted 118,431 105,955 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017. 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. Revenue Recognition The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which the Company adopted on July 1, 2017, using the retrospective method. The Company derives the majority of its revenue from sales of its networking equipment, with the remaining revenue generated from service fees relating to maintenance contracts, professional services, and training for its products. The Company sells its products and maintenance contracts direct to customers and to partners in two distribution channels, or tiers. The first tier consists of a limited number of independent distributors that stock its products and sell primarily to resellers. The second tier of the distribution channel consists of a non-stocking distributors and value-added resellers that sell directly to end-users. Products and services may be sold separately or in bundled packages. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products and services, each of which are distinct, to be the identified performance obligations. In determining the transaction price the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. For all of the Company’s sales and distribution channels, revenue is recognized when control of the product is transferred to the customer (i.e. when the Company’s performance obligation is satisfied), which typically occurs at shipment for product sales. Revenue from maintenance contracts is recognized over time as the Company’s performance obligations are satisfied. This is typically the contractual service period, which range from one to three years. For product sales to value-added resellers of the Company, non-stocking distributors and end-user customers, the Company generally does not grant return privileges, except for defective products during the warranty period, nor does the Company grant pricing credits. Sales incentives and other programs that the Company may make available to these customers are considered to be a form of variable consideration and the Company maintains estimated accruals and allowances using the expected value method. There were no material changes in the current period to the estimated transaction price for performance obligations which were satisfied or partially satisfied during previous periods. Sales to stocking distributors are made under terms allowing certain price adjustments and limited rights of return (known as “stock rotation”) of the Company’s products held in their inventory. Revenue from sales to distributors is recognized upon the transfer of control to the distributor. Frequently, distributors need to sell at a price lower than the contractual distribution price in order to win business, and submit rebate requests for Company pre-approval prior to selling the product through at the discounted price. At the time the distributor invoices its customer or soon thereafter, the distributor submits a rebate claim to the Company to adjust the distributor’s cost from the contractual price to the pre-approved lower price. After the Company verifies that the claim was pre-approved, a credit memo is issued to the distributor for the rebate claim. In determining the transaction price, the Company considers these rebate adjustments to be variable consideration. Such price adjustments are estimated using the expected value method based on an analysis of actual claims, at the distributor level over a trailing twelve month period of time considered adequate to account for current pricing and business trends. Stock rotation rights grant the distributor the ability to return certain specified amounts of inventory. Stock rotation adjustments are an additional form of variable consideration and are also estimated using the expected value method based on historical return rates. There were no material changes in the current period to the estimated variable consideration for performance obligations which were satisfied or partially satisfied during previous periods. Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using the best estimated selling price approach. The Company’s performance obligations are satisfied at a point in time or over time as work progresses. Substantially all of the Company’s product sales revenues as reflected on the consolidated statements of operations for the three-month periods ended September 30, 2017, and 2016 are recognized at a point in time. Substantially all of the Company’s service revenue is recognized over time. For revenue recognized over time, the Company uses an input measure, days elapsed, to measure progress. On September 30, 2017, the Company had $119.2 million of remaining performance obligations, which is comprised of deferred maintenance revenue and services not yet delivered. The Company expects to recognize approximately 70 percent of its remaining performance obligations as revenue in fiscal 2018, an additional 18 percent by fiscal 2019 and the balance thereafter. Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue on the consolidated balance sheet. Services provided under renewable support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are typically at periodic intervals (e.g., quarterly or annually). The Company sometimes receives payments from its customers in advance of services being provided, resulting in deferred revenues. These liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. Revenue recognized for the three month periods ended September 30, 2017 and 2016, that was included in the deferred revenue balance at the beginning of each year was $42.1 million and $37.2 million respectively. Contract Costs . The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling and marketing expenses. Management expects that commission fees paid to sales representative as a result of obtaining service contracts and contract renewals are recoverable and therefore the Company capitalized them as contract costs in the amount of $2.5 million and $2.3 million at September 30, 2017 and 2016, respectively. Capitalized commission fees are amortized on a straight-line basis over the average period of service contracts of approximately three years, and are included in sales and marketing expenses. Amortization recognized during the three-month period ended September 30, 2017 and September 30, 2016, was $0.4 million and $0.3 million, respectively. There was no impairment loss in relation to the costs capitalized. Revenue by Category: The following table sets forth the Company’s revenue disaggregated by sales channel and geographic region based on the billing addresses of our customers (in thousands, unaudited): Three Months Ended September 30, 2017 September 30, 2016 (As adjusted) Distributor Direct Total Distributor Direct Total Americas: United States $ 42,392 $ 50,990 $ 93,382 $ 26,991 $ 26,829 $ 53,820 Other 14,336 6,395 20,731 1,393 9,628 11,021 Total Americas 56,728 57,385 114,113 28,384 36,457 64,841 EMEA: 51,232 27,903 79,135 31,299 16,529 47,828 APAC: 3,264 15,203 18,467 1,452 8,483 9,935 Total net revenues $ 111,224 $ 100,491 $ 211,715 $ 61,135 $ 61,469 $ 122,604 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 4. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which is intended to allow companies to better align risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance is effective for fiscal years beginning after December 15, 2018. The Company is evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. This guidance is effective for the Company beginning with its fiscal year 2020. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718) - Scope of Modification Accounting (“ASU 2017-09”) which amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The guidance is effective prospectively for fiscal years beginning after December 15, 2017, and interim periods within that reporting period. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of this guidance to have a material effect on our financial statements. This guidance will be effective for the Company beginning with its fiscal year 2019. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The Company adopted Topic 606 on July 1, 2017, using the full retrospective method. This adoption primarily affected the Company’s accounting for distributor and resellers revenues from a primarily “sell-through” model, where revenue is recognized upon the sale from the distribution channel to the end customer, to the “sell-in” method where revenue is recognized upon transfer of control to its customers, including distributors. Under the sell-in method, the Company is required to make estimates at the time of shipment to its distributors of variable consideration as well as estimated returns under stock rotation rights granted to the distributors. Additionally, the Company capitalizes contract acquisition costs such as commissions paid for maintenance services contracts in excess of one year. Following the adoption of ASU 2014-09, the revenue recognition for the Company’s other sales arrangements remained materially consistent with our historical practice. Upon adoption of Topic 606, we applied the standard’s practical expedients that allows a) an entity to use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods, b) that permits the omission of prior-period information about our performance obligations, and c) that allows the Company to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations. See the tables at the end of this note for the effects of the adoption of ASU 2014-09 on our condensed consolidated financial statements as of June 30, 2017, and for the three months ended September 30, 2016. See Note 3. “Summary of Significant Accounting Policies” to our condensed consolidated financial statements for further discussion of the effects of the adoption of ASU 2014-09 on our significant accounting policies. Adjustments to Previously Reported Financial Statements from the Adoption of Accounting Pronouncements The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated balance sheet (unaudited) as of June 30, 2017, (in thousands): As of June 30, 2017 As Reported Adjustment As Adjusted Accounts receivable, net $ 120,770 $ (27,655 ) $ 93,115 Inventories 45,880 1,530 47,410 Total current assets 324,967 (26,125 ) 298,842 Other assets 22,586 2,479 25,065 Total assets 483,346 (23,646 ) 459,700 Accrued warranty 10,007 577 10,584 Other accrued liabilities 36,713 331 37,044 Deferred distributors revenue, net of cost of sales to distributors 43,525 (43,525 ) — Total current liabilities 255,822 (42,617 ) 213,205 Accumulated deficit (800,257 ) 18,971 (781,286 ) Total stockholders’ equity 106,707 18,971 125,678 Total liabilities and stockholders’ equity $ 483,346 $ (23,646 ) $ 459,700 The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated statements of operations (unaudited) for the three months ended September 30, 2016 (in thousands, except per share amounts): Three months ended September 30, 2016 As Reported Adjustment As Adjusted Net revenues Product $ 90,131 $ (38 ) $ 90,093 Service 32,511 — 32,511 Total net revenues 122,642 (38 ) 122,604 Cost of revenues Product 44,927 (678 ) 44,249 Service 12,469 — 12,469 Total cost of revenues 57,396 (678 ) 56,718 Gross profit Product 45,204 640 45,844 Service 20,042 — 20,042 Total Gross profit 65,246 640 65,886 Sales and marketing expenses 36,956 (97 ) 36,859 Operating loss (4,759 ) 737 (4,022 ) Net loss before tax (5,572 ) 737 (4,835 ) Net loss $ (6,479 ) $ 737 $ (5,742 ) Basic and diluted net loss per share Net loss per share - basic $ (0.06 ) $ (0.05 ) Net loss per share - diluted $ (0.06 ) $ (0.05 ) Shares used in per share calculation - basic 105,955 105,955 Shares used in per share calculation - diluted 105,955 105,955 The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated statement of cash flows (unaudited) for the three months ended September 30, 2016 (in thousands): Three months ended September 30, 2016 As Reported Adjustment As Adjusted Cash flows from operating activities Net loss $ (6,479 ) $ 737 $ (5,742 ) Changes in operating assets and liabilities, net Accounts receivable 12,950 3,656 16,606 Inventories (2,405 ) (907 ) (3,312 ) Prepaid and other assets 1,562 (97 ) 1,465 Deferred distributors revenue, net of cost of sales to distributors 3,412 (3,412 ) — Other current and long term liabilities (842 ) 23 (819 ) Net cash provided by operating activities 9,574 — 9,574 Cash flows from investing activities (1,635 ) — (1,635 ) Cash flows from financing activities 166 — 166 Foreign currency effect on cash 38 — 38 Net increase in cash and cash equivalents $ 8,143 $ — $ 8,143 |
Balance Sheet Accounts
Balance Sheet Accounts | 3 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Accounts | 5. Balance Sheet Accounts Cash, Cash Equivalents and Short-term Investments The following is a summary of cash, cash equivalents and short-term investments (in thousands): September 30, 2017 June 30, 2017 Cash $ 148,514 $ 126,159 Cash equivalents (consisting of available-sale-securities) 4,500 4,291 Total cash and cash equivalents 153,014 130,450 Short-term investments 1,050 — Total cash, cash equivalents and short-term investments $ 154,064 $ 130,450 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 greater than three months, but less than one year at the balance sheet date are classified as short-term investments. Short-term investments are recorded in “Prepaid expenses and other current assets” in the accompanying condensed consolidated balance sheets. Inventories 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 demand 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. Inventories consist of the following (in thousands): September 30, 2017 June 30, 2017 (As Adjusted) Finished goods $ 57,515 $ 46,620 Raw materials 585 790 Total Inventories $ 58,100 $ 47,410 Property and Equipment, Net Property and equipment consist of the following (in thousands): September 30, 2017 June 30, 2017 Computer equipment $ 40,209 $ 34,716 Purchased software 12,961 11,785 Office equipment, furniture and fixtures 11,464 10,852 Leasehold improvements 27,167 23,046 Total property and equipment 91,801 80,399 Less: accumulated depreciation and amortization (53,174 ) (50,159 ) Property and equipment, net $ 38,627 $ 30,240 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 September 30, 2017 Developed technology 5.3 years $ 91,600 $ 44,395 $ 47,205 Customer relationships 2.9 years 45,600 38,051 7,549 Maintenance contracts 1.1 years 17,000 13,317 3,683 Trademarks 4.7 years 7,500 3,057 4,443 Backlogs 0.2 years 1,500 892 608 License agreements 6.2 years 2,445 1,187 1,258 Other intangibles 2.4 years 1,382 1,100 282 Total intangibles, net with finite lives 167,027 101,999 65,028 In-process research and development, with indefinite life 2,300 — 2,300 Total intangibles, net $ 169,327 $ 101,999 $ 67,328 Weighted Average Remaining Amortization Gross Accumulated Net Carrying Period Amount Amortization Amount June 30, 2017 Developed technology 5.3 years $ 55,400 $ 42,689 $ 12,711 Customer relationships 3.3 years 40,300 37,567 2,733 Maintenance contracts 1.3 years 17,000 12,467 4,533 Trademarks 4.3 years 5,100 2,846 2,254 License agreements 6.4 years 2,445 1,120 1,325 Other intangibles 2.7 years 1,382 1,001 381 Total intangibles, net with finite lives 121,627 97,690 23,937 In-process research and development, with indefinite life 1,400 — 1,400 Total intangibles, net $ 123,027 $ 97,690 $ 25,337 During the three months ended September 30, 2017, in-process research and development of $1.4 million was reclassified to developed technology upon completion of the project and is being amortized over its estimated useful life. The amortization expense of intangibles for the periods presented is summarized below (in thousands): Three Months Ended September 30, 2017 September 30, 2016 Amortization in “Cost of revenues: Product” $ 2,695 $ 3,498 Amortization of intangibles 1,614 4,142 Total amortization $ 4,309 $ 7,640 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): September 30, 2017 Balance as of June 30, 2017 $ 80,216 Additions due to acquisition 38,338 Balance at end of period $ 118,554 During the three months ended September 30, 2017, the Company completed the acquisition of certain assets and liabilities from Avaya resulting in an additional $38.3 million of goodwill. See Note 2 for additional information related to the acquisition. Deferred Revenue The Company offers for sale to its customers, renewable support arrangements that range from one to five years as well as deferred revenue for professional and training services. Debt The Company’s debt is comprised of the following (in thousands): September 30, 2017 June 30, 2017 Current portion of long-term debt: Term Loan $ 18,418 $ 12,444 Less: unamortized debt issuance costs (555 ) (164 ) Current portion of long-term debt $ 17,863 $ 12,280 Long-term debt, less current portion: Term Loan $ 141,202 $ 71,268 Revolver 10,000 10,000 Less: unamortized debt issuance costs (1,473 ) (846 ) Total long-term debt, less current portion 149,729 80,422 Total debt $ 167,592 $ 92,702 In connection with the closing of Avaya Networking discussed in Note 2, the Company entered into the Second Amendment to the Amended and Restated Credit Agreement (“Second Amendment”), which amended the Amended and Restated Credit Agreement, dated as of October 28, 2016 (the “Credit Facility, as amended”), by and among the Company, as borrower, Silicon Valley Bank, as administrative agent and collateral agent, and lenders. Among other things, the Second Amendment (i) increased the amount of the available borrowing under the Credit Facility from $140.5 million to $243.7 million, composed of (a) the five-year term loan (“Term Loan”) in a principal amount of up to $183.7 million and (b) the five-year revolving credit facility (“Revolver”) in a principal amount of up to $60.0 million, (ii) extends the maturity date under the existing Term Loan and the termination date under the existing Revolver, (iii) provides for an uncommitted additional incremental loan facility in the principal amount of up to $50.0 million (“Incremental Facility”), and (iv) joins certain additional banks, financial institutions and institutional lenders as lenders pursuant to the terms of the Credit Facility, as amended. On July 14, 2017, the Company borrowed an additional $80.0 million under the Term Loan which was used to fund the purchase of Avaya Networking. 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 $0.9 million of outstanding letters of credit and $49.1 million of availability under the Revolver as of September 30, 2017. 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 September 30, 2017 and 2016 (in thousands): Three Months Ended September 30, 2017 September 30, 2016 (as adjusted) Balance beginning of period $ 10,584 $ 9,998 Warranties assumed due to acquisition 3,156 — New warranties issued 2,272 928 Warranty expenditures (2,513 ) (1,909 ) Balance end of period $ 13,499 $ 9,017 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 All advertising costs are expensed as incurred. Advertising expenses for three months ended September 30, 2017 and 2016, 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 September 30, 2017 September 30, 2016 (As adjusted) Westcon Group Inc. 15% 11% Jenne Corporation 14% 16% Tech Data Corporation 11% 17% The following customers account for more than 10% of the Company’s accounts receivable outstanding as of September 30, 2017, Jenne Corporation 17%, Westcon Group 15% and |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2017 | |
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): September 30, 2017 Level 1 Level 2 Level 3 Total Assets Investments: Money market funds $ 4,500 $ — $ — $ 4,500 Marketable securities 1,050 — — 1,050 Total assets measured at fair value $ 5,550 $ — $ — $ 5,550 June 30, 2017 Level 1 Level 2 Level 3 Total Assets Investments: Money market funds $ 4,291 $ — $ — $ 4,291 Investment in non-marketable equity — — 3,000 3,000 Total assets measured at fair value $ 4,291 $ — $ 3,000 $ 7,291 Level 1 investments : During the first quarter of fiscal 2017, pursuant to the sale of an investment in non-marketable equity securities, the Company received 41,685 shares of a company publicly traded on the London Stock Exchange. As of September 30, 2017, the shares received have a fair value of $1.0 million. (See below, Level 3 investments) 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 face amount of the Company’s indebtedness of $169.6 million and $93.7 million as of September 30, 2017 and June 30, 2017, respectively. Such amounts are immaterial for all periods presented. 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. As of June 30, 2017, the Company reflected its non-marketable equity investment as Level 3 in the fair value hierarchy as it is based on unobservable inputs that market participants would use in pricing this asset due to the absence of recent comparable market transactions and inherent lack of liquidity. During fiscal 2015, the Company purchased a $3.0 million equity interest in a company that operates in the enterprise software platform industry. The Company did not enter into any other transactions with the investee during fiscal 2017 or the first quarter of fiscal 2018. During the three months ended September 30, 2017, the investee was acquired by a third party. The Company received $6.8 million as consideration for its equity interest in the investee, including $5.4 million in cash and 65,937 shares with a market value of $1.4 million. During the first quarter of fiscal 2018, the Company received $5.8 million of the consideration, consisting of $4.9 million in cash and 41,685 shares with a market value of $0.9 million. The remainder There were no transfers of assets or liabilities between Level 2 and Level 3 during the first three months of fiscal year 2018 or 2017. There were no impairments recorded for the first three months of fiscal year 2018 or 2017. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Sep. 30, 2017 | |
Share Based Compensation [Abstract] | |
Share-based Compensation | 7. Shares reserved for issuance The Company had reserved for issuance for the periods noted (in thousands): September 30, 2017 June 30, 2017 2014 Employee Stock Purchase Plan 6,517 7,785 Employee stock options and awards outstanding 10,130 9,726 2013 Equity Incentive Plan shares available for grant 5,353 7,629 Total shares reserved for issuance 22,000 25,140 Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands): Three Months Ended September 30, 2017 September 30, 2016 Cost of product revenue $ 92 $ 68 Cost of service revenue 133 232 Research and development 1,051 1,141 Sales and marketing 1,643 1,062 General and administrative 1,884 972 Total share-based compensation expense $ 4,803 $ 3,475 During the three months ended September 30, 2017 and 2016, 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 three months ended September 30, 2017 (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, 2017 6,664 $ 4.66 $ 61,440 Granted 2,094 10.55 Vested (1,223 ) 3.45 Cancelled (118 ) 4.72 Non-vested stock awards outstanding at September 30, 2017 7,417 $ 6.53 $ 88,195 The following table summarizes stock option activity for the three months ended September 30, 2017 (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, 2017 3,062 $ 4.06 4.19 $ 15,868 Exercised (347 ) 4.44 Cancelled (2 ) 5.58 Options outstanding at September 30, 2017 2,713 $ 4.01 4.10 $ 21,478 Vested and expected to vest at September 30, 2017 2,713 $ 4.01 4.10 $ 21,478 Exercisable at September 30, 2017 2,129 $ 4.33 3.40 $ 16,090 The fair value of each stock option grant under the 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 units (“RSUs”) grant with performance-based vesting criteria (“PSUs”) under the 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. During the first quarter of fiscal 2018, the Company approved the grant of 1,154,014 stock awards to the Company’s Executive Officers and 939,925 stock awards to other Company employees. Company. For the PSUs referenced in the preceding paragraph, they are considered earned once the Company s combined earnings per share equals or exceeds $0.32 for two consecutive quarters. ( FY18 Performance Threshold ). Once the FY18 Performance Threshold is satisfied the PSUs shall vest with respect to the number of RSUs that have vested as of the date the FY18 Performance Threshold is satisfied and thereafter shall vest on the same schedule as the RSUs, subject to continued service to the Company. If the FY18 Performance Threshold is not met by the third anniversary of the grant date the award is canceled. In addition, the FY18 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 $16.00 per share. During the quarter ended September 30, 2017, none of the PSU grants referenced above achieved their FY18 Performance Threshold. During the first quarter of fiscal 2017, the Company approved the grant of 680,000 stock awards to the Company’s Executive Officers and 1,878,420 stock awards to other Company employees. Fifty percent (50%) of the stock awards granted were in the form of PSUs, with grant date fair values ranging from $3.02 to $3.09, and fifty percent (50%) of the stock awards granted were in the form of 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, subject to continued service to the Company. The PSUs were considered earned once the Company’s stock price equaled or exceeded $5.00 per share for 30 consecutive trading days after January 1, 2017 ( FY17 Performance Threshold ). Once the FY17 Performance Threshold goal was attainted the PSUs began to vest on the same schedule as the RSUs that were granted at the same time, subject to continued service to the Company. During the quarter ended March 31, 2017, all of the PSU grants referenced above achieved their FY17 Performance Threshold and as such, began vesting and will be released on the schedule as noted, subject to continued service to the Company. The fair value of each share purchase option under the Company ’ The weighted-average fair value of shares granted under the Company’s 2014 ESPP during the three months ended September 30, 2017 and 2016, was $2.41 and $1.00, respectively. There were 1,267,930 and 1,103,599 shares issued under the Company’s 2014 ESPP during the three months ended September 30, 2017 and 2016, respectively. Employee Stock Purchase Plan Three Months Ended September 30, 2017 September 30, 2016 Expected life 0.50 years 0.50 years Risk-free interest rate 1.15 % 0.40 % Volatility 42 % 40 % Dividend yield — % — % |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Sep. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 8. Restructuring Charges No restructuring charges were recorded during the three months ended September 30, 2017 or 2016. Restructuring liabilities consisted of obligations pertaining to the estimated future obligations for non-cancelable lease payments, as well as severance and benefits obligations. The restructuring liabilities are recorded in “Other accrued liabilities” and “Other long-term liabilities” in the accompanying condensed consolidated balance sheets. In fiscal 2017, the Company announced a reduction-in-force. The Company recorded $5.6 million in severance and benefits charges, net during the year ended June 30, 2017. Cash payments of $0.6 million were paid during the first three months of fiscal 2018. The balance of cash payments are expected to be paid by the end of the second quarter of fiscal 2018. The excess facilities payments will continue through fiscal year 2023. During fiscal 2016, the Company realigned its operations by abandoning excess facilities, primarily in San Jose, California; Salem, New Hampshire and Morrisville, North Carolina. The fiscal 2016 restructuring was largely completed as of the end of the first quarter of fiscal 2018. Total restructuring and related liabilities consist of (in thousands): Three months ended September 30, 2017 September 30, 2016 Beginning balance $ 4,122 $ 4,644 Period payments (562 ) (508 ) Ending balance 3,560 4,136 Less: current portion included in other accrued liabilities 1,877 1,754 Restructuring accrual included in other long-term liabilities $ 1,683 $ 2,382 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017, the Company had non-cancelable commitments to purchase $115.1 million of such inventory. As of September 30, 2017 the Company had non-cancelable software and maintenance support commitments to purchase $20.3 million 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 Matter On May 28, 2007, the Public Treasury Department of the State of Sao Paolo, Brazil (the “Tax Authority”) assessed our Brazilian subsidiary, Enterasys Networks do Brasil Ltda. (“Enterasys Brasil”), based on an alleged underpayment of taxes. The Tax Authority also charged interest and penalties with respect to the assessment (collectively, the “ICMS Tax Assessment”). The Tax Authority denied Enterasys Brasil the use of certain presumed tax credits granted by the State of Espirito Santo, Brazil under the terms of the FUNDAP program for the period from February 2003 to December 2004. The value of the disallowed presumed tax credits is BRL 3.4 million (US $1.1 million), excluding interest and penalties. As of September 30, 2017, the total amount claimed by the Tax Authority—including accrued interest, penalties, and attorneys’ fees—is BRL 26.6 million (US $8.4 million). All currency conversions in this Legal Proceedings section are as of September 30, 2017. Unable to resolve the matter at the administrative level, on October 1, 2014, Enterasys Brasil filed a lawsuit in the 11 th Based on the currently available information, the Company believes the ultimate outcome of the ICMS Tax Assessment litigation will not have a material adverse effect on the Company's financial position or overall results of operations. However, due to the complexities and uncertainty surrounding the judicial process in Brazil and the nature of the claims asserted, there can be no assurance of a favorable outcome for Enterasys Brasil, which recorded an accrual of BRL 9.4 million (US $3.0 million) as of the date the Company acquired Enterasys Networks. The Company made a demand on April 11, 2014 for a defense from, and indemnification by, the former equity holder of Enterasys Networks, Inc. (“Seller”) in connection with the ICMS Tax Assessment. Seller agreed to assume the defense of the ICMS Tax Assessment on May 20, 2014. In addition, through the settlement of an indemnification-related lawsuit with the Seller on June 18, 2015, Seller agreed to continue to defend the Company with respect to the ICMS Tax Assessment and to indemnify the Company for losses related thereto subject to certain conditions. These conditions include the offsetting of foreign income tax benefits realized by the Company in connection with the acquisition of Enterasys. Based upon current projections of the foreign income tax benefits to be realized, and the potential liability in the event of an adverse final judgment in the ICMS Tax Assessment litigation, the Company does not presently anticipate that any amounts under the indemnification will be due from the Seller in connection with the ICMS Tax Assessment. In re Extreme Networks, Inc. Securities Litigation On October 23 and 29, 2015, putative class action complaints alleging violations of securities laws were filed 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 ( In re Extreme Networks, Inc. Securities Litigation On February 18, 2016, a shareholder derivative case was filed in the Superior Court of California, Santa Clara County ( Shaffer v. Kispert et al. XR Communications, LLC d/b/a Vivato Technologies, LLC v. Extreme Networks, Inc. On April 19, 2017, XR Communications, LLC (“XR”) (d/b/a Vivato Technologies) sued the Company in the Central District of California ( XR Communications, LLC, dba Vivato Technologies v. Extreme Networks, Inc. In an order entered on October 23, 2017, the court scheduled a claim construction hearing for April 10, 2018, and ordered any trial of this matter to commence no earlier than March 19, 2019. 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 applicable 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 certain legal matters. For example, the Company currently is paying or reimbursing legal expenses being incurred by certain current and former officers and directors in connection with the shareholder litigation described above. The Company also procures Directors and Officers insurance to help cover its defense and/or indemnification costs, although its ability to recover such costs through insurance is uncertain. While it is not possible to estimate the maximum potential amount that could be owed under these indemnification agreements due to the Company’s limited history with prior indemnification claims, indemnification (including defense) costs could, in the future, have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes For the three months ended September 30, 2017 and 2016, the Company recorded an income tax provision of $1.7 million and $0.9 million, respectively. The income tax provisions for the three months ended September 30, 2017 and 2016, 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., the WLAN Business and Avaya Networking. The income tax provisions for both fiscal years were calculated based on the actual results of operations for the three months ended September 30, 2017 and 2016, 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 in October 2013 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). Additionally, the Company completed asset purchases of the WLAN Business as well as the Avaya Networking in October 2016 and July 2017, respectively. The Company has estimated the value of the intangible assets from these transactions and is amortizing the amounts over 15 years for tax purposes. During the three months ended September 30, 2017 and 2016, the Company deducted $1.6 million and $1.1 million of tax amortization expense respectively, for each period related to capitalized goodwill resulting from these acquisitions. As of September 30, 2017, the Company recorded a deferred tax liability of $6.9 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 $19.2 million of unrecognized tax benefits as of September 30, 2017. The future impact of the unrecognized tax benefit of $19.2 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. The Company is currently under examination by the state of North Carolina for the fiscal years ended 2014, 2015 and 2016. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 11. Net Income (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 net income (loss) per share of basic and diluted (in thousands, except per share data): Three Months Ended September 30, 2017 September 30, 2016 (As adjusted) Net income (loss) $ 4,376 $ (5,742 ) Weighted-average shares used in per share - basic calculation 112,241 105,955 Effect of potentially dilutive shares: Options to purchase common stock 1,760 — Restricted stock units 4,007 — Employee Stock Purchase Plan shares 423 — Weighted-average shares used in per share - diluted calculation 118,431 105,955 Net income (loss) per share: Basic $ 0.04 $ (0.05 ) Diluted $ 0.04 $ (0.05 ) The following securities were excluded from the computation of net income (loss) per diluted share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands): Three Months Ended September 30, 2017 September 30, 2016 Options to purchase common stock — 3,715 Restricted stock units 496 1,635 Employee Stock Purchase Plan shares 204 201 Total shares excluded 700 5,551 |
Foreign Exchange Forward Contra
Foreign Exchange Forward Contracts | 3 Months Ended |
Sep. 30, 2017 | |
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 fair value of the Company’s derivatives in a gain position are recorded in “Prepaid expenses and other current assets” and derivatives in a loss position are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets. Changes in the fair value of derivatives are recorded in “Other income (expense), net” in the accompanying condensed consolidated statements of operations. 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. As of September 30, 2017, forward foreign currency contracts had a notional principal amount of $9.6 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. As of September 30, 2016, the Company did not have any derivative instruments outstanding. Foreign currency transactions gains and losses from operations was loss of $0.6 million and $0.2 million for the three months ended September 30, 2017 and 2016, respectively. |
Disclosure about Segments of an
Disclosure about Segments of an Enterprise and Geographic Areas | 3 Months Ended |
Sep. 30, 2017 | |
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 and channels based on the customer's ship-to location as follows (in thousands): Three Months Ended September 30, 2017 September 30, 2016 (As adjusted) Distributor Direct Total Distributor Direct Total Americas: United States $ 42,392 $ 50,990 $ 93,382 $ 26,991 $ 26,829 $ 53,820 Other 14,336 6,395 20,731 1,393 9,628 11,021 Total Americas 56,728 57,385 114,113 28,384 36,457 64,841 EMEA: 51,232 27,903 79,135 31,299 16,529 47,828 APAC: 3,264 15,203 18,467 1,452 8,483 9,935 Total net revenues $ 111,224 $ 100,491 $ 211,715 $ 61,135 $ 61,469 $ 122,604 The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands): Long Lived Assets September 30, 2017 June 30, 2017 (As adjusted) Americas $ 113,901 $ 67,369 EMEA 11,412 8,998 APAC 8,166 4,275 Total long lived assets $ 133,479 $ 80,642 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | 14. Subsequent Event On October 27, 2017 (the “Brocade Closing Date”), the Company completed its acquisition of Brocade Communication Systems, Inc.’s (“Brocade”) switching, routing and analytics business (“Brocade SRA”), that had been announced on October 3, 2017. Under the terms and subject to the conditions of the Brocade Asset Purchase Agreement (“Brocade Purchase Agreement”), the Company acquired customers, employees, technology and other assets of Brocade SRA, as well as assumed certain contracts and other liabilities of Brocade SRA, for an upfront cash closing payment equal to $23.0 million, plus a deferred payment equal to $20.0 million to be paid $1 million per quarter for 20 quarters following the Brocade Closing Date, plus quarterly earn out payments equal to 50% of profits of Brocade SRA, with certain deductions per the terms of the Brocade Purchase Agreement for the five-year period commencing at the end of our first full fiscal quarter following the Brocade Closing Date. The Company is still evaluating the estimated consideration from the earn out provision. In conjunction with the acquisition, Extreme paid a fee of $25.0 million to Broadcom, Inc. in October 2017, for the right to acquire the Brocade SRA business. The acquisition will be accounted for using the acquisition method of accounting whereby the acquired assets and liabilities of Brocade SRA will be recorded at their respective fair values and added to those of the Company including an amount for goodwill representing the difference between the acquisition consideration and the fair value of the identifiable net assets. Results of operations of Brocade SRA will be included in the Company’s operations beginning with the Brocade Closing Date, As of the date of filing this Form 10-Q, the initial purchase price allocation has not been prepared as there has not been sufficient time to complete the related activities. On October 26, 2017, the Company entered into the Third Amendment to the Credit Facility (the “Third Amendment”). Among other things, the Third Amendment (i) amends the negative covenant governing dispositions to increase the general dispositions basket for the fiscal year of the Company ending June 30, 2018, and (ii) amends certain definitions and provisions to update certain references to the Brocade Purchase Agreement (as defined above). On the Brocade Closing Date to partially fund the acquisition of the Brocade SRA acquisition, the Company drew $20.0 million on the Term Loan. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2018” or “2018” represent the fiscal year ending June 30, 2018. All references herein to “fiscal 2017” or “2017” represent the fiscal year ending June 30, 2017. |
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. |
Revenue Recognition | Revenue Recognition The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which the Company adopted on July 1, 2017, using the retrospective method. The Company derives the majority of its revenue from sales of its networking equipment, with the remaining revenue generated from service fees relating to maintenance contracts, professional services, and training for its products. The Company sells its products and maintenance contracts direct to customers and to partners in two distribution channels, or tiers. The first tier consists of a limited number of independent distributors that stock its products and sell primarily to resellers. The second tier of the distribution channel consists of a non-stocking distributors and value-added resellers that sell directly to end-users. Products and services may be sold separately or in bundled packages. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products and services, each of which are distinct, to be the identified performance obligations. In determining the transaction price the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. For all of the Company’s sales and distribution channels, revenue is recognized when control of the product is transferred to the customer (i.e. when the Company’s performance obligation is satisfied), which typically occurs at shipment for product sales. Revenue from maintenance contracts is recognized over time as the Company’s performance obligations are satisfied. This is typically the contractual service period, which range from one to three years. For product sales to value-added resellers of the Company, non-stocking distributors and end-user customers, the Company generally does not grant return privileges, except for defective products during the warranty period, nor does the Company grant pricing credits. Sales incentives and other programs that the Company may make available to these customers are considered to be a form of variable consideration and the Company maintains estimated accruals and allowances using the expected value method. There were no material changes in the current period to the estimated transaction price for performance obligations which were satisfied or partially satisfied during previous periods. Sales to stocking distributors are made under terms allowing certain price adjustments and limited rights of return (known as “stock rotation”) of the Company’s products held in their inventory. Revenue from sales to distributors is recognized upon the transfer of control to the distributor. Frequently, distributors need to sell at a price lower than the contractual distribution price in order to win business, and submit rebate requests for Company pre-approval prior to selling the product through at the discounted price. At the time the distributor invoices its customer or soon thereafter, the distributor submits a rebate claim to the Company to adjust the distributor’s cost from the contractual price to the pre-approved lower price. After the Company verifies that the claim was pre-approved, a credit memo is issued to the distributor for the rebate claim. In determining the transaction price, the Company considers these rebate adjustments to be variable consideration. Such price adjustments are estimated using the expected value method based on an analysis of actual claims, at the distributor level over a trailing twelve month period of time considered adequate to account for current pricing and business trends. Stock rotation rights grant the distributor the ability to return certain specified amounts of inventory. Stock rotation adjustments are an additional form of variable consideration and are also estimated using the expected value method based on historical return rates. There were no material changes in the current period to the estimated variable consideration for performance obligations which were satisfied or partially satisfied during previous periods. Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using the best estimated selling price approach. The Company’s performance obligations are satisfied at a point in time or over time as work progresses. Substantially all of the Company’s product sales revenues as reflected on the consolidated statements of operations for the three-month periods ended September 30, 2017, and 2016 are recognized at a point in time. Substantially all of the Company’s service revenue is recognized over time. For revenue recognized over time, the Company uses an input measure, days elapsed, to measure progress. On September 30, 2017, the Company had $119.2 million of remaining performance obligations, which is comprised of deferred maintenance revenue and services not yet delivered. The Company expects to recognize approximately 70 percent of its remaining performance obligations as revenue in fiscal 2018, an additional 18 percent by fiscal 2019 and the balance thereafter. Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue on the consolidated balance sheet. Services provided under renewable support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are typically at periodic intervals (e.g., quarterly or annually). The Company sometimes receives payments from its customers in advance of services being provided, resulting in deferred revenues. These liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. Revenue recognized for the three month periods ended September 30, 2017 and 2016, that was included in the deferred revenue balance at the beginning of each year was $42.1 million and $37.2 million respectively. Contract Costs . The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling and marketing expenses. Management expects that commission fees paid to sales representative as a result of obtaining service contracts and contract renewals are recoverable and therefore the Company capitalized them as contract costs in the amount of $2.5 million and $2.3 million at September 30, 2017 and 2016, respectively. Capitalized commission fees are amortized on a straight-line basis over the average period of service contracts of approximately three years, and are included in sales and marketing expenses. Amortization recognized during the three-month period ended September 30, 2017 and September 30, 2016, was $0.4 million and $0.3 million, respectively. There was no impairment loss in relation to the costs capitalized. Revenue by Category: The following table sets forth the Company’s revenue disaggregated by sales channel and geographic region based on the billing addresses of our customers (in thousands, unaudited): Three Months Ended September 30, 2017 September 30, 2016 (As adjusted) Distributor Direct Total Distributor Direct Total Americas: United States $ 42,392 $ 50,990 $ 93,382 $ 26,991 $ 26,829 $ 53,820 Other 14,336 6,395 20,731 1,393 9,628 11,021 Total Americas 56,728 57,385 114,113 28,384 36,457 64,841 EMEA: 51,232 27,903 79,135 31,299 16,529 47,828 APAC: 3,264 15,203 18,467 1,452 8,483 9,935 Total net revenues $ 111,224 $ 100,491 $ 211,715 $ 61,135 $ 61,469 $ 122,604 |
Cash, Cash Equivalents and Short-term Investments | Cash, Cash Equivalents and Short-term Investments The following is a summary of cash, cash equivalents and short-term investments (in thousands): September 30, 2017 June 30, 2017 Cash $ 148,514 $ 126,159 Cash equivalents (consisting of available-sale-securities) 4,500 4,291 Total cash and cash equivalents 153,014 130,450 Short-term investments 1,050 — Total cash, cash equivalents and short-term investments $ 154,064 $ 130,450 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 greater than three months, but less than one year at the balance sheet date are classified as short-term investments. Short-term investments are recorded in “Prepaid expenses and other current assets” in the accompanying condensed consolidated balance sheets. |
Inventories | Inventories 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 demand 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. Inventories consist of the following (in thousands): September 30, 2017 June 30, 2017 (As Adjusted) Finished goods $ 57,515 $ 46,620 Raw materials 585 790 Total Inventories $ 58,100 $ 47,410 |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consist of the following (in thousands): September 30, 2017 June 30, 2017 Computer equipment $ 40,209 $ 34,716 Purchased software 12,961 11,785 Office equipment, furniture and fixtures 11,464 10,852 Leasehold improvements 27,167 23,046 Total property and equipment 91,801 80,399 Less: accumulated depreciation and amortization (53,174 ) (50,159 ) Property and equipment, net $ 38,627 $ 30,240 |
Intangibles | 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 September 30, 2017 Developed technology 5.3 years $ 91,600 $ 44,395 $ 47,205 Customer relationships 2.9 years 45,600 38,051 7,549 Maintenance contracts 1.1 years 17,000 13,317 3,683 Trademarks 4.7 years 7,500 3,057 4,443 Backlogs 0.2 years 1,500 892 608 License agreements 6.2 years 2,445 1,187 1,258 Other intangibles 2.4 years 1,382 1,100 282 Total intangibles, net with finite lives 167,027 101,999 65,028 In-process research and development, with indefinite life 2,300 — 2,300 Total intangibles, net $ 169,327 $ 101,999 $ 67,328 Weighted Average Remaining Amortization Gross Accumulated Net Carrying Period Amount Amortization Amount June 30, 2017 Developed technology 5.3 years $ 55,400 $ 42,689 $ 12,711 Customer relationships 3.3 years 40,300 37,567 2,733 Maintenance contracts 1.3 years 17,000 12,467 4,533 Trademarks 4.3 years 5,100 2,846 2,254 License agreements 6.4 years 2,445 1,120 1,325 Other intangibles 2.7 years 1,382 1,001 381 Total intangibles, net with finite lives 121,627 97,690 23,937 In-process research and development, with indefinite life 1,400 — 1,400 Total intangibles, net $ 123,027 $ 97,690 $ 25,337 During the three months ended September 30, 2017, in-process research and development of $1.4 million was reclassified to developed technology upon completion of the project and is being amortized over its estimated useful life. The amortization expense of intangibles for the periods presented is summarized below (in thousands): Three Months Ended September 30, 2017 September 30, 2016 Amortization in “Cost of revenues: Product” $ 2,695 $ 3,498 Amortization of intangibles 1,614 4,142 Total amortization $ 4,309 $ 7,640 The amortization expense that is recognized in “Cost of revenues: Product” is comprised of amortization for developed technology, license agreements and other intangibles. |
Goodwill | Goodwill The following table summarizes goodwill for the periods presented (in thousands): September 30, 2017 Balance as of June 30, 2017 $ 80,216 Additions due to acquisition 38,338 Balance at end of period $ 118,554 During the three months ended September 30, 2017, the Company completed the acquisition of certain assets and liabilities from Avaya resulting in an additional $38.3 million of goodwill. See Note 2 for additional information related to the acquisition. |
Deferred Revenue | Deferred Revenue The Company offers for sale to its customers, renewable support arrangements that range from one to five years as well as deferred revenue for professional and training services. |
Debt | Debt The Company’s debt is comprised of the following (in thousands): September 30, 2017 June 30, 2017 Current portion of long-term debt: Term Loan $ 18,418 $ 12,444 Less: unamortized debt issuance costs (555 ) (164 ) Current portion of long-term debt $ 17,863 $ 12,280 Long-term debt, less current portion: Term Loan $ 141,202 $ 71,268 Revolver 10,000 10,000 Less: unamortized debt issuance costs (1,473 ) (846 ) Total long-term debt, less current portion 149,729 80,422 Total debt $ 167,592 $ 92,702 In connection with the closing of Avaya Networking discussed in Note 2, the Company entered into the Second Amendment to the Amended and Restated Credit Agreement (“Second Amendment”), which amended the Amended and Restated Credit Agreement, dated as of October 28, 2016 (the “Credit Facility, as amended”), by and among the Company, as borrower, Silicon Valley Bank, as administrative agent and collateral agent, and lenders. Among other things, the Second Amendment (i) increased the amount of the available borrowing under the Credit Facility from $140.5 million to $243.7 million, composed of (a) the five-year term loan (“Term Loan”) in a principal amount of up to $183.7 million and (b) the five-year revolving credit facility (“Revolver”) in a principal amount of up to $60.0 million, (ii) extends the maturity date under the existing Term Loan and the termination date under the existing Revolver, (iii) provides for an uncommitted additional incremental loan facility in the principal amount of up to $50.0 million (“Incremental Facility”), and (iv) joins certain additional banks, financial institutions and institutional lenders as lenders pursuant to the terms of the Credit Facility, as amended. On July 14, 2017, the Company borrowed an additional $80.0 million under the Term Loan which was used to fund the purchase of Avaya Networking. 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 $0.9 million of outstanding letters of credit and $49.1 million of availability under the Revolver as of September 30, 2017. |
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. The following table summarizes the activity related to the Company’s product warranty liability during the three months ended September 30, 2017 and 2016 (in thousands): Three Months Ended September 30, 2017 September 30, 2016 (as adjusted) Balance beginning of period $ 10,584 $ 9,998 Warranties assumed due to acquisition 3,156 — New warranties issued 2,272 928 Warranty expenditures (2,513 ) (1,909 ) Balance end of period $ 13,499 $ 9,017 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 | Advertising All advertising costs are expensed as incurred. Advertising expenses for three months ended September 30, 2017 and 2016, were immaterial. |
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. 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 September 30, 2017 September 30, 2016 (As adjusted) Westcon Group Inc. 15% 11% Jenne Corporation 14% 16% Tech Data Corporation 11% 17% The following customers account for more than 10% of the Company’s accounts receivable outstanding as of September 30, 2017, Jenne Corporation 17%, Westcon Group 15% and |
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. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
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 $ 34,800 Customer relationships 4 5,300 Trademarks 5 2,400 Backlog 1 1,500 Total identifiable intangible assets $ 44,000 |
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 September 30, 2017 September 30, 2016 (As adjusted) Net revenues $ 222,382 $ 238,858 Net income (loss) $ 16,776 $ (8,936 ) Net income (loss) per share - basic $ 0.15 $ (0.08 ) Net income (loss) per share - diluted $ 0.14 $ (0.08 ) Shares used in per share calculation - basic 112,241 105,955 Shares used in per share calculation - diluted 118,431 105,955 |
Avaya Networking | |
Summary of Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed | The following table below summarizes the preliminary allocation as of September 30, 2017 of the tangible and identifiable intangible assets acquired and liabilities assumed: Preliminary Allocation as of July 14, 2017 Accounts receivables, net $ 18,112 Inventory 16,605 Other current assets 673 Property and equipment 3,768 Other long-term assets 2,568 Accounts payable and accrued expenses (29,716 ) Deferred revenue (10,214 ) Other liabilities (6,608 ) Net tangible assets acquired (4,812 ) Identifiable intangible assets 44,000 In-process research and development 2,300 Goodwill 38,338 Total intangible assets acquired 84,638 Total net assets acquired $ 79,826 |
Zebra Technologies Corporation | |
Summary of Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed | The following table below summarizes the final allocation of the tangible and identifiable intangible assets acquired and liabilities assumed: Final Allocation as of October 28, 2016 Accounts receivables, net $ 14,636 Inventory 13,593 Other current assets 808 Property and equipment 3,159 Other long-term assets 7,634 Deferred revenue (14,159 ) Other liabilities (7,201 ) Total tangible assets acquired and liabilities assumed 18,470 Identifiable intangible assets 20,300 In-process research and development 1,400 Goodwill 9,339 Total intangible assets acquired 31,039 Total net assets acquired $ 49,509 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Sales Channel and Geographic Region | The following table sets forth the Company’s revenue disaggregated by sales channel and geographic region based on the billing addresses of our customers (in thousands, unaudited): Three Months Ended September 30, 2017 September 30, 2016 (As adjusted) Distributor Direct Total Distributor Direct Total Americas: United States $ 42,392 $ 50,990 $ 93,382 $ 26,991 $ 26,829 $ 53,820 Other 14,336 6,395 20,731 1,393 9,628 11,021 Total Americas 56,728 57,385 114,113 28,384 36,457 64,841 EMEA: 51,232 27,903 79,135 31,299 16,529 47,828 APAC: 3,264 15,203 18,467 1,452 8,483 9,935 Total net revenues $ 111,224 $ 100,491 $ 211,715 $ 61,135 $ 61,469 $ 122,604 |
Recent Accounting Pronounceme24
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Schedule of Adjustments to Previously Reported Financial Statements from Adoption of Accounting Pronouncements | The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated balance sheet (unaudited) as of June 30, 2017, (in thousands): As of June 30, 2017 As Reported Adjustment As Adjusted Accounts receivable, net $ 120,770 $ (27,655 ) $ 93,115 Inventories 45,880 1,530 47,410 Total current assets 324,967 (26,125 ) 298,842 Other assets 22,586 2,479 25,065 Total assets 483,346 (23,646 ) 459,700 Accrued warranty 10,007 577 10,584 Other accrued liabilities 36,713 331 37,044 Deferred distributors revenue, net of cost of sales to distributors 43,525 (43,525 ) — Total current liabilities 255,822 (42,617 ) 213,205 Accumulated deficit (800,257 ) 18,971 (781,286 ) Total stockholders’ equity 106,707 18,971 125,678 Total liabilities and stockholders’ equity $ 483,346 $ (23,646 ) $ 459,700 The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated statements of operations (unaudited) for the three months ended September 30, 2016 (in thousands, except per share amounts): Three months ended September 30, 2016 As Reported Adjustment As Adjusted Net revenues Product $ 90,131 $ (38 ) $ 90,093 Service 32,511 — 32,511 Total net revenues 122,642 (38 ) 122,604 Cost of revenues Product 44,927 (678 ) 44,249 Service 12,469 — 12,469 Total cost of revenues 57,396 (678 ) 56,718 Gross profit Product 45,204 640 45,844 Service 20,042 — 20,042 Total Gross profit 65,246 640 65,886 Sales and marketing expenses 36,956 (97 ) 36,859 Operating loss (4,759 ) 737 (4,022 ) Net loss before tax (5,572 ) 737 (4,835 ) Net loss $ (6,479 ) $ 737 $ (5,742 ) Basic and diluted net loss per share Net loss per share - basic $ (0.06 ) $ (0.05 ) Net loss per share - diluted $ (0.06 ) $ (0.05 ) Shares used in per share calculation - basic 105,955 105,955 Shares used in per share calculation - diluted 105,955 105,955 The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated statement of cash flows (unaudited) for the three months ended September 30, 2016 (in thousands): Three months ended September 30, 2016 As Reported Adjustment As Adjusted Cash flows from operating activities Net loss $ (6,479 ) $ 737 $ (5,742 ) Changes in operating assets and liabilities, net Accounts receivable 12,950 3,656 16,606 Inventories (2,405 ) (907 ) (3,312 ) Prepaid and other assets 1,562 (97 ) 1,465 Deferred distributors revenue, net of cost of sales to distributors 3,412 (3,412 ) — Other current and long term liabilities (842 ) 23 (819 ) Net cash provided by operating activities 9,574 — 9,574 Cash flows from investing activities (1,635 ) — (1,635 ) Cash flows from financing activities 166 — 166 Foreign currency effect on cash 38 — 38 Net increase in cash and cash equivalents $ 8,143 $ — $ 8,143 |
Balance Sheet Accounts (Tables)
Balance Sheet Accounts (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Cash, Cash Equivalents and Short-term Investments | The following is a summary of cash, cash equivalents and short-term investments (in thousands): September 30, 2017 June 30, 2017 Cash $ 148,514 $ 126,159 Cash equivalents (consisting of available-sale-securities) 4,500 4,291 Total cash and cash equivalents 153,014 130,450 Short-term investments 1,050 — Total cash, cash equivalents and short-term investments $ 154,064 $ 130,450 |
Components of Inventories | Inventories consist of the following (in thousands): September 30, 2017 June 30, 2017 (As Adjusted) Finished goods $ 57,515 $ 46,620 Raw materials 585 790 Total Inventories $ 58,100 $ 47,410 |
Components of Property and Equipment | Property and equipment consist of the following (in thousands): September 30, 2017 June 30, 2017 Computer equipment $ 40,209 $ 34,716 Purchased software 12,961 11,785 Office equipment, furniture and fixtures 11,464 10,852 Leasehold improvements 27,167 23,046 Total property and equipment 91,801 80,399 Less: accumulated depreciation and amortization (53,174 ) (50,159 ) Property and equipment, net $ 38,627 $ 30,240 |
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 September 30, 2017 Developed technology 5.3 years $ 91,600 $ 44,395 $ 47,205 Customer relationships 2.9 years 45,600 38,051 7,549 Maintenance contracts 1.1 years 17,000 13,317 3,683 Trademarks 4.7 years 7,500 3,057 4,443 Backlogs 0.2 years 1,500 892 608 License agreements 6.2 years 2,445 1,187 1,258 Other intangibles 2.4 years 1,382 1,100 282 Total intangibles, net with finite lives 167,027 101,999 65,028 In-process research and development, with indefinite life 2,300 — 2,300 Total intangibles, net $ 169,327 $ 101,999 $ 67,328 Weighted Average Remaining Amortization Gross Accumulated Net Carrying Period Amount Amortization Amount June 30, 2017 Developed technology 5.3 years $ 55,400 $ 42,689 $ 12,711 Customer relationships 3.3 years 40,300 37,567 2,733 Maintenance contracts 1.3 years 17,000 12,467 4,533 Trademarks 4.3 years 5,100 2,846 2,254 License agreements 6.4 years 2,445 1,120 1,325 Other intangibles 2.7 years 1,382 1,001 381 Total intangibles, net with finite lives 121,627 97,690 23,937 In-process research and development, with indefinite life 1,400 — 1,400 Total intangibles, net $ 123,027 $ 97,690 $ 25,337 |
Summary of Amortization Expense of Intangibles | The amortization expense of intangibles for the periods presented is summarized below (in thousands): Three Months Ended September 30, 2017 September 30, 2016 Amortization in “Cost of revenues: Product” $ 2,695 $ 3,498 Amortization of intangibles 1,614 4,142 Total amortization $ 4,309 $ 7,640 |
Summary of Goodwill | The following table summarizes goodwill for the periods presented (in thousands): September 30, 2017 Balance as of June 30, 2017 $ 80,216 Additions due to acquisition 38,338 Balance at end of period $ 118,554 |
Components of Debt | The Company’s debt is comprised of the following (in thousands): September 30, 2017 June 30, 2017 Current portion of long-term debt: Term Loan $ 18,418 $ 12,444 Less: unamortized debt issuance costs (555 ) (164 ) Current portion of long-term debt $ 17,863 $ 12,280 Long-term debt, less current portion: Term Loan $ 141,202 $ 71,268 Revolver 10,000 10,000 Less: unamortized debt issuance costs (1,473 ) (846 ) Total long-term debt, less current portion 149,729 80,422 Total debt $ 167,592 $ 92,702 |
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 September 30, 2017 and 2016 (in thousands): Three Months Ended September 30, 2017 September 30, 2016 (as adjusted) Balance beginning of period $ 10,584 $ 9,998 Warranties assumed due to acquisition 3,156 — New warranties issued 2,272 928 Warranty expenditures (2,513 ) (1,909 ) Balance end of period $ 13,499 $ 9,017 |
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 September 30, 2017 September 30, 2016 (As adjusted) Westcon Group Inc. 15% 11% Jenne Corporation 14% 16% Tech Data Corporation 11% 17% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value for Financial Assets Measured on Recurring Basis | The Company did not hold any financial liabilities that required measurement at fair value on a recurring basis. The following table presents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis (in thousands): September 30, 2017 Level 1 Level 2 Level 3 Total Assets Investments: Money market funds $ 4,500 $ — $ — $ 4,500 Marketable securities 1,050 — — 1,050 Total assets measured at fair value $ 5,550 $ — $ — $ 5,550 June 30, 2017 Level 1 Level 2 Level 3 Total Assets Investments: Money market funds $ 4,291 $ — $ — $ 4,291 Investment in non-marketable equity — — 3,000 3,000 Total assets measured at fair value $ 4,291 $ — $ 3,000 $ 7,291 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Share Based Compensation [Abstract] | |
Shares Reserved for Issuance | The Company had reserved for issuance for the periods noted (in thousands): September 30, 2017 June 30, 2017 2014 Employee Stock Purchase Plan 6,517 7,785 Employee stock options and awards outstanding 10,130 9,726 2013 Equity Incentive Plan shares available for grant 5,353 7,629 Total shares reserved for issuance 22,000 25,140 |
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 September 30, 2017 September 30, 2016 Cost of product revenue $ 92 $ 68 Cost of service revenue 133 232 Research and development 1,051 1,141 Sales and marketing 1,643 1,062 General and administrative 1,884 972 Total share-based compensation expense $ 4,803 $ 3,475 |
Summary of Stock Award Activity | The following table summarizes stock award activity for the three months ended September 30, 2017 (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, 2017 6,664 $ 4.66 $ 61,440 Granted 2,094 10.55 Vested (1,223 ) 3.45 Cancelled (118 ) 4.72 Non-vested stock awards outstanding at September 30, 2017 7,417 $ 6.53 $ 88,195 |
Summary of Stock Option Activity | The following table summarizes stock option activity for the three months ended September 30, 2017 (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, 2017 3,062 $ 4.06 4.19 $ 15,868 Exercised (347 ) 4.44 Cancelled (2 ) 5.58 Options outstanding at September 30, 2017 2,713 $ 4.01 4.10 $ 21,478 Vested and expected to vest at September 30, 2017 2,713 $ 4.01 4.10 $ 21,478 Exercisable at September 30, 2017 2,129 $ 4.33 3.40 $ 16,090 |
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 ’ The weighted-average fair value of shares granted under the Company’s 2014 ESPP during the three months ended September 30, 2017 and 2016, was $2.41 and $1.00, respectively. There were 1,267,930 and 1,103,599 shares issued under the Company’s 2014 ESPP during the three months ended September 30, 2017 and 2016, respectively. Employee Stock Purchase Plan Three Months Ended September 30, 2017 September 30, 2016 Expected life 0.50 years 0.50 years Risk-free interest rate 1.15 % 0.40 % Volatility 42 % 40 % Dividend yield — % — % |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Liabilities | Total restructuring and related liabilities consist of (in thousands): Three months ended September 30, 2017 September 30, 2016 Beginning balance $ 4,122 $ 4,644 Period payments (562 ) (508 ) Ending balance 3,560 4,136 Less: current portion included in other accrued liabilities 1,877 1,754 Restructuring accrual included in other long-term liabilities $ 1,683 $ 2,382 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of net income (loss) per share of basic and diluted (in thousands, except per share data): Three Months Ended September 30, 2017 September 30, 2016 (As adjusted) Net income (loss) $ 4,376 $ (5,742 ) Weighted-average shares used in per share - basic calculation 112,241 105,955 Effect of potentially dilutive shares: Options to purchase common stock 1,760 — Restricted stock units 4,007 — Employee Stock Purchase Plan shares 423 — Weighted-average shares used in per share - diluted calculation 118,431 105,955 Net income (loss) per share: Basic $ 0.04 $ (0.05 ) Diluted $ 0.04 $ (0.05 ) |
Schedule of Antidilutive Securities Excluded from Earnings Per Share Calculation | The following securities were excluded from the computation of net income (loss) per diluted share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands): Three Months Ended September 30, 2017 September 30, 2016 Options to purchase common stock — 3,715 Restricted stock units 496 1,635 Employee Stock Purchase Plan shares 204 201 Total shares excluded 700 5,551 |
Disclosure about Segments of 30
Disclosure about Segments of an Enterprise and Geographic Areas (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Long Lived Assets by Geographic Regions and Channels | The Company attributes revenues to geographic regions and channels based on the customer's ship-to location as follows (in thousands): Three Months Ended September 30, 2017 September 30, 2016 (As adjusted) Distributor Direct Total Distributor Direct Total Americas: United States $ 42,392 $ 50,990 $ 93,382 $ 26,991 $ 26,829 $ 53,820 Other 14,336 6,395 20,731 1,393 9,628 11,021 Total Americas 56,728 57,385 114,113 28,384 36,457 64,841 EMEA: 51,232 27,903 79,135 31,299 16,529 47,828 APAC: 3,264 15,203 18,467 1,452 8,483 9,935 Total net revenues $ 111,224 $ 100,491 $ 211,715 $ 61,135 $ 61,469 $ 122,604 The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands): Long Lived Assets September 30, 2017 June 30, 2017 (As adjusted) Americas $ 113,901 $ 67,369 EMEA 11,412 8,998 APAC 8,166 4,275 Total long lived assets $ 133,479 $ 80,642 |
Business Combinations (Narrativ
Business Combinations (Narratives) (Details) - USD ($) $ in Thousands | Jul. 14, 2017 | Mar. 07, 2017 | Oct. 28, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||||||
Acquisition-related expenses | $ 4,244 | $ 2,321 | |||||
Avaya Networking | |||||||
Business Acquisition [Line Items] | |||||||
Asset purchase agreement closing date | Jul. 14, 2017 | ||||||
Business acquisition, purchase price | $ 100,000 | ||||||
Business acquisition, deposits amount | $ 10,200 | ||||||
Business acquisition, provisional consideration | $ 79,800 | ||||||
Avaya Networking | Acquisition and Integration Costs | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related expenses | $ 5,100 | 2,900 | |||||
Avaya Networking | In-Process Research and Development | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of indefinite lived intangibles | $ 2,300 | $ 2,300 | |||||
Zebra Technologies Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Net cash consideration | $ 49,500 |
Business Combinations (Summary
Business Combinations (Summary of Preliminary Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 14, 2017 | Jun. 30, 2017 |
Preliminary Allocation | |||
Goodwill | $ 118,554 | $ 80,216 | |
Avaya Networking | |||
Preliminary Allocation | |||
Accounts receivables, net | $ 18,112 | ||
Inventory | 16,605 | ||
Other current assets | 673 | ||
Property and equipment | 3,768 | ||
Other long-term assets | 2,568 | ||
Accounts payable and accrued expenses | (29,716) | ||
Deferred revenue | (10,214) | ||
Other liabilities | (6,608) | ||
Total tangible assets acquired and liabilities assumed | (4,812) | ||
Identifiable intangible assets | 44,000 | ||
In-process research and development | 2,300 | ||
Goodwill | 38,338 | ||
Total intangible assets acquired | 84,638 | ||
Total net assets acquired | $ 79,826 |
Business Combinations (Schedule
Business Combinations (Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition) (Details) - Avaya Networking $ in Thousands | Jul. 14, 2017USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 44,000 |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 6 years |
Amount | $ 34,800 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 4 years |
Amount | $ 5,300 |
Trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 5 years |
Amount | $ 2,400 |
Backlog | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 1 year |
Amount | $ 1,500 |
Business Combinations (Summar34
Business Combinations (Summary of Final Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Oct. 28, 2016 |
Final Allocation | |||
Goodwill | $ 118,554 | $ 80,216 | |
Zebra Technologies Corporation | |||
Final Allocation | |||
Accounts receivables, net | $ 14,636 | ||
Inventory | 13,593 | ||
Other current assets | 808 | ||
Property and equipment | 3,159 | ||
Other long-term assets | 7,634 | ||
Deferred revenue | (14,159) | ||
Other liabilities | (7,201) | ||
Total tangible assets acquired and liabilities assumed | 18,470 | ||
Identifiable intangible assets | 20,300 | ||
In-process research and development | 1,400 | ||
Goodwill | 9,339 | ||
Total intangible assets acquired | 31,039 | ||
Total net assets acquired | $ 49,509 |
Business Combinations (Summar35
Business Combinations (Summary of Unaudited Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition Pro Forma Information [Abstract] | ||
Net revenues | $ 222,382 | $ 238,858 |
Net income (loss) | $ 16,776 | $ (8,936) |
Net income (loss) per share - basic | $ 0.15 | $ (0.08) |
Net income (loss) per share - diluted | $ 0.14 | $ (0.08) |
Shares used in per share calculation - basic | 112,241 | 105,955 |
Shares used in per share calculation - diluted | 118,431 | 105,955 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Narratives) (Details) | 3 Months Ended | |
Sep. 30, 2017USD ($)Distribution_Channels | Sep. 30, 2016USD ($) | |
Significant Accounting Policies [Line Items] | ||
Number of distribution channels | Distribution_Channels | 2 | |
Estimated selling price determination approach | Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using the best estimated selling price approach. | |
Remaining revenue performance obligations | $ 119,200,000 | |
Remaining revenue performance obligation, percentage of revenue expected to be recognized in 2018 | 70.00% | |
Remaining revenue performance obligation, percentage of revenue expected to be recognized in 2019 | 18.00% | |
Revenue recognized for deferred revenue balance | $ 42,100,000 | $ 37,200,000 |
Commission Fees | ||
Significant Accounting Policies [Line Items] | ||
Contract costs capitalized, amount | $ 2,500,000 | 2,300,000 |
Contract costs capitalized, amortization period | 3 years | |
Contract costs capitalized, amortization method | straight-line basis | |
Contract costs capitalized, amortization expense | $ 400,000 | $ 300,000 |
Contract costs capitalized, impairment loss | $ 0 | |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Contractual service period | 1 year | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Contractual service period | 3 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Schedule of Revenues by Sales Channel and Geographic Regions) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Significant Accounting Policies [Line Items] | ||
Net Revenues | $ 211,715 | $ 122,604 |
Distributor | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 111,224 | 61,135 |
Direct | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 100,491 | 61,469 |
United States | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 93,382 | 53,820 |
United States | Distributor | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 42,392 | 26,991 |
United States | Direct | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 50,990 | 26,829 |
Other Americas | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 20,731 | 11,021 |
Other Americas | Distributor | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 14,336 | 1,393 |
Other Americas | Direct | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 6,395 | 9,628 |
Total Americas | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 114,113 | 64,841 |
Total Americas | Distributor | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 56,728 | 28,384 |
Total Americas | Direct | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 57,385 | 36,457 |
EMEA | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 79,135 | 47,828 |
EMEA | Distributor | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 51,232 | 31,299 |
EMEA | Direct | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 27,903 | 16,529 |
APAC | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 18,467 | 9,935 |
APAC | Distributor | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | 3,264 | 1,452 |
APAC | Direct | ||
Significant Accounting Policies [Line Items] | ||
Net Revenues | $ 15,203 | $ 8,483 |
Recent Accounting Pronounceme38
Recent Accounting Pronouncements - (Narratives) (Details) - ASU 2014-09 | 3 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Contract acquisition costs capitalization, description | Company capitalizes contract acquisition costs such as commissions paid for maintenance services contracts in excess of one year |
Minimum | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Contract acquisition costs capitalization period | 1 year |
Recent Accounting Pronounceme39
Recent Accounting Pronouncements - Schedule of Effect of Adoption of ASU 2014-09 On Condensed Consolidated Balance Sheet (Unaudited) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Accounts receivable, net | $ 116,500 | $ 93,115 | ||
Inventories | 58,100 | 47,410 | ||
Total current assets | 345,851 | 298,842 | ||
Other assets | 27,524 | 25,065 | ||
Total assets | 597,884 | 459,700 | ||
Accrued warranty | 13,499 | 10,584 | $ 9,017 | $ 9,998 |
Other accrued liabilities | 52,335 | 37,044 | ||
Total current liabilities | 263,779 | 213,205 | ||
Accumulated deficit | (776,910) | (781,286) | ||
Total stockholders’ equity | 135,437 | 125,678 | ||
Total liabilities and stockholders’ equity | $ 597,884 | 459,700 | ||
As Reported | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Accounts receivable, net | 120,770 | |||
Inventories | 45,880 | |||
Total current assets | 324,967 | |||
Other assets | 22,586 | |||
Total assets | 483,346 | |||
Accrued warranty | 10,007 | |||
Other accrued liabilities | 36,713 | |||
Deferred distributors revenue, net of cost of sales to distributors | 43,525 | |||
Total current liabilities | 255,822 | |||
Accumulated deficit | (800,257) | |||
Total stockholders’ equity | 106,707 | |||
Total liabilities and stockholders’ equity | 483,346 | |||
Adjustment | ASU 2014-09 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Accounts receivable, net | (27,655) | |||
Inventories | 1,530 | |||
Total current assets | (26,125) | |||
Other assets | 2,479 | |||
Total assets | (23,646) | |||
Accrued warranty | 577 | |||
Other accrued liabilities | 331 | |||
Deferred distributors revenue, net of cost of sales to distributors | (43,525) | |||
Total current liabilities | (42,617) | |||
Accumulated deficit | 18,971 | |||
Total stockholders’ equity | 18,971 | |||
Total liabilities and stockholders’ equity | $ (23,646) |
Recent Accounting Pronounceme40
Recent Accounting Pronouncements - Schedule of Effect of Adoption of ASU 2014-09 On Condensed Consolidated Statement of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Net revenues: | ||
Product | $ 164,774 | $ 90,093 |
Service | 46,941 | 32,511 |
Total net revenues | 211,715 | 122,604 |
Cost of revenues: | ||
Product | 80,045 | 44,249 |
Service | 19,289 | 12,469 |
Total cost of revenues | 99,334 | 56,718 |
Gross profit: | ||
Product | 84,729 | 45,844 |
Service | 27,652 | 20,042 |
Total gross profit | 112,381 | 65,886 |
Sales and marketing | 55,561 | 36,859 |
Operating loss | 4,492 | (4,022) |
Net loss before tax | 6,051 | (4,835) |
Net income (loss) | $ 4,376 | $ (5,742) |
Basic and diluted net income (loss) per share: | ||
Net loss per share - basic | $ 0.04 | $ (0.05) |
Net loss per share - diluted | $ 0.04 | $ (0.05) |
Shares used in per share calculation - basic | 112,241 | 105,955 |
Shares used in per share calculation - diluted | 118,431 | 105,955 |
As Reported | ||
Net revenues: | ||
Product | $ 90,131 | |
Service | 32,511 | |
Total net revenues | 122,642 | |
Cost of revenues: | ||
Product | 44,927 | |
Service | 12,469 | |
Total cost of revenues | 57,396 | |
Gross profit: | ||
Product | 45,204 | |
Service | 20,042 | |
Total gross profit | 65,246 | |
Sales and marketing | 36,956 | |
Operating loss | (4,759) | |
Net loss before tax | (5,572) | |
Net income (loss) | $ (6,479) | |
Basic and diluted net income (loss) per share: | ||
Net loss per share - basic | $ (0.06) | |
Net loss per share - diluted | $ (0.06) | |
Shares used in per share calculation - basic | 105,955 | |
Shares used in per share calculation - diluted | 105,955 | |
Adjustment | ASU 2014-09 | ||
Net revenues: | ||
Product | $ (38) | |
Total net revenues | (38) | |
Cost of revenues: | ||
Product | (678) | |
Total cost of revenues | (678) | |
Gross profit: | ||
Product | 640 | |
Total gross profit | 640 | |
Sales and marketing | (97) | |
Operating loss | 737 | |
Net loss before tax | 737 | |
Net income (loss) | $ 737 |
Recent Accounting Pronounceme41
Recent Accounting Pronouncements - Schedule of Effect of Adoption of ASU 2014-09 On Condensed Consolidated Statement of Cash Flows (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ 4,376 | $ (5,742) |
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed | ||
Accounts receivable | (5,762) | 16,606 |
Inventories | 5,915 | (3,312) |
Prepaid expenses and other assets | (1,856) | 1,465 |
Other current and long term liabilities | (2,792) | (819) |
Net cash provided by operating activities | 18,598 | 9,574 |
Cash flows from investing activities | (70,546) | (1,635) |
Cash flows from financing activities | 74,455 | 166 |
Foreign currency effect on cash | 57 | 38 |
Net increase in cash and cash equivalents | $ 22,564 | 8,143 |
As Reported | ||
Cash flows from operating activities: | ||
Net loss | (6,479) | |
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed | ||
Accounts receivable | 12,950 | |
Inventories | (2,405) | |
Prepaid expenses and other assets | 1,562 | |
Deferred distributors revenue, net of cost of sales to distributors | 3,412 | |
Other current and long term liabilities | (842) | |
Net cash provided by operating activities | 9,574 | |
Cash flows from investing activities | (1,635) | |
Cash flows from financing activities | 166 | |
Foreign currency effect on cash | 38 | |
Net increase in cash and cash equivalents | 8,143 | |
Adjustment | ASU 2014-09 | ||
Cash flows from operating activities: | ||
Net loss | 737 | |
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed | ||
Accounts receivable | 3,656 | |
Inventories | (907) | |
Prepaid expenses and other assets | (97) | |
Deferred distributors revenue, net of cost of sales to distributors | (3,412) | |
Other current and long term liabilities | $ 23 |
Balance Sheet Accounts (Summary
Balance Sheet Accounts (Summary of Cash, Cash Equivalents and Short-term Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Cash | $ 148,514 | $ 126,159 | ||
Cash equivalents (consisting of available-sale-securities) | 4,500 | 4,291 | ||
Total cash and cash equivalents | 153,014 | 130,450 | $ 102,265 | $ 94,122 |
Short-term investments | 1,050 | |||
Total cash, cash equivalents and short-term investments | $ 154,064 | $ 130,450 |
Balance Sheet Accounts (Narrati
Balance Sheet Accounts (Narratives) (Details) - USD ($) | Jul. 14, 2017 | Sep. 30, 2017 | Oct. 26, 2016 |
Balance Sheet Accounts [Line Items] | |||
Additional goodwill related to acquisition | $ 38,338,000 | ||
Borrowings under Term Loan | $ 80,000,000 | ||
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 | Jenne Corporation | |||
Balance Sheet Accounts [Line Items] | |||
Concentration risk (percent) | 17.00% | ||
Accounts Receivable | Westcon Group Inc. | |||
Balance Sheet Accounts [Line Items] | |||
Concentration risk (percent) | 15.00% | ||
Accounts Receivable | Tech Data Corporation | |||
Balance Sheet Accounts [Line Items] | |||
Concentration risk (percent) | 13.00% | ||
Term Loan | |||
Balance Sheet Accounts [Line Items] | |||
Interest rate, floor | 0.00% | ||
Term Loan | London Interbank Offered Rate (LIBOR) | |||
Balance Sheet Accounts [Line Items] | |||
Interest rate, applicable margin | 3.25% | ||
Term Loan | Adjusted Base Rate | |||
Balance Sheet Accounts [Line Items] | |||
Interest rate, applicable margin | 1.25% | ||
Revolving Facility | |||
Balance Sheet Accounts [Line Items] | |||
Interest rate, floor | 0.00% | ||
Borrowings available under facility | $ 49,100,000 | ||
Outstanding letters of credit | $ 900,000 | ||
Revolving Facility | London Interbank Offered Rate (LIBOR) | |||
Balance Sheet Accounts [Line Items] | |||
Interest rate, applicable margin | 3.25% | ||
Revolving Facility | Adjusted Base Rate | |||
Balance Sheet Accounts [Line Items] | |||
Interest rate, applicable margin | 1.25% | ||
Avaya Networking | |||
Balance Sheet Accounts [Line Items] | |||
Additional goodwill related to acquisition | $ 38,300,000 | ||
Borrowings under Term Loan | $ 80,000,000 | ||
Avaya Networking | Credit Facility | |||
Balance Sheet Accounts [Line Items] | |||
Borrowing capacity from Credit Agreement | $ 140,500,000 | ||
Avaya Networking | Second Amendment | Credit Facility | |||
Balance Sheet Accounts [Line Items] | |||
Borrowing capacity from Credit Agreement | 243,700,000 | ||
Avaya Networking | Second Amendment | Term Loan | |||
Balance Sheet Accounts [Line Items] | |||
Borrowing capacity from Credit Agreement | $ 183,700,000 | ||
Credit Facility, as amended term | 5 years | ||
Avaya Networking | Second Amendment | Revolving Facility | |||
Balance Sheet Accounts [Line Items] | |||
Borrowing capacity from Credit Agreement | $ 60,000,000 | ||
Credit Facility, as amended term | 5 years | ||
Developed technology | In-process research and development, with indefinite life | |||
Balance Sheet Accounts [Line Items] | |||
In-process research and development reclassified to developed technology | $ 1,400,000 | ||
Maximum | |||
Balance Sheet Accounts [Line Items] | |||
Extended warranty period | 5 years | ||
Maximum | Revolving Facility | |||
Balance Sheet Accounts [Line Items] | |||
Commitment fee | 0.50% | ||
Maximum | Avaya Networking | Second Amendment | |||
Balance Sheet Accounts [Line Items] | |||
Additional incremental loan facility | $ 50,000,000 | ||
Minimum | |||
Balance Sheet Accounts [Line Items] | |||
Extended warranty period | 1 year | ||
Minimum | 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 Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Finished goods | $ 57,515 | $ 46,620 |
Raw materials | 585 | 790 |
Total Inventories | $ 58,100 | $ 47,410 |
Balance Sheet Accounts (Compo45
Balance Sheet Accounts (Components of Property and Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 91,801 | $ 80,399 |
Less: accumulated depreciation and amortization | (53,174) | (50,159) |
Property and equipment, net | 38,627 | 30,240 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 40,209 | 34,716 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,961 | 11,785 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,464 | 10,852 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 27,167 | $ 23,046 |
Balance Sheet Accounts (Compo46
Balance Sheet Accounts (Components of Gross and Net Intangible Asset Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Jun. 30, 2017 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 167,027 | $ 121,627 |
Accumulated Amortization | 101,999 | 97,690 |
Net Carrying Amount | 65,028 | 23,937 |
Gross Carrying Amount, Intangibles | 169,327 | 123,027 |
Net Carrying Amount, Intangibles | 67,328 | 25,337 |
In-process research and development, with indefinite life | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Fair value of indefinite lived intangibles | $ 2,300 | $ 1,400 |
Developed technology | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 5 years 3 months 19 days | 5 years 3 months 19 days |
Gross Carrying Amount | $ 91,600 | $ 55,400 |
Accumulated Amortization | 44,395 | 42,689 |
Net Carrying Amount | $ 47,205 | $ 12,711 |
Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 2 years 10 months 25 days | 3 years 3 months 19 days |
Gross Carrying Amount | $ 45,600 | $ 40,300 |
Accumulated Amortization | 38,051 | 37,567 |
Net Carrying Amount | $ 7,549 | $ 2,733 |
Maintenance contracts | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 1 year 1 month 7 days | 1 year 3 months 19 days |
Gross Carrying Amount | $ 17,000 | $ 17,000 |
Accumulated Amortization | 13,317 | 12,467 |
Net Carrying Amount | $ 3,683 | $ 4,533 |
Trademarks | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 4 years 8 months 13 days | 4 years 3 months 19 days |
Gross Carrying Amount | $ 7,500 | $ 5,100 |
Accumulated Amortization | 3,057 | 2,846 |
Net Carrying Amount | $ 4,443 | $ 2,254 |
Backlogs | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 2 months 13 days | |
Gross Carrying Amount | $ 1,500 | |
Accumulated Amortization | 892 | |
Net Carrying Amount | $ 608 | |
License agreements | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 6 years 2 months 13 days | 6 years 4 months 25 days |
Gross Carrying Amount | $ 2,445 | $ 2,445 |
Accumulated Amortization | 1,187 | 1,120 |
Net Carrying Amount | $ 1,258 | $ 1,325 |
Other intangibles | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 2 years 4 months 25 days | 2 years 8 months 13 days |
Gross Carrying Amount | $ 1,382 | $ 1,382 |
Accumulated Amortization | 1,100 | 1,001 |
Net Carrying Amount | $ 282 | $ 381 |
Balance Sheet Accounts (Summa47
Balance Sheet Accounts (Summary of Amortization Expense of Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Amortization in “Cost of revenues: Product” | $ 2,695 | $ 3,498 |
Amortization of intangibles | 1,614 | 4,142 |
Total amortization | $ 4,309 | $ 7,640 |
Balance Sheet Accounts (Summa48
Balance Sheet Accounts (Summary of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance as of June 30, 2017 | $ 80,216 |
Additions due to acquisition | 38,338 |
Balance at end of period | $ 118,554 |
Balance Sheet Accounts (Compo49
Balance Sheet Accounts (Components of Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Line Of Credit Facility [Line Items] | ||
Current portion of long-term debt | $ 17,863 | $ 12,280 |
Less: unamortized debt issuance costs | (555) | (164) |
Long-term debt, less current portion | 149,729 | 80,422 |
Less: unamortized debt issuance costs | (1,473) | (846) |
Total debt | 167,592 | 92,702 |
Term Loan | ||
Line Of Credit Facility [Line Items] | ||
Current portion of long-term debt | 18,418 | 12,444 |
Long-term debt, less current portion | 141,202 | 71,268 |
Revolver | ||
Line Of Credit Facility [Line Items] | ||
Long-term debt, less current portion | $ 10,000 | $ 10,000 |
Balance Sheet Accounts (Summa50
Balance Sheet Accounts (Summary of Product Warranty Liability Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance beginning of period | $ 10,584 | $ 9,998 |
Warranties assumed due to acquisition | 3,156 | |
New warranties issued | 2,272 | 928 |
Warranty expenditures | (2,513) | (1,909) |
Balance end of period | $ 13,499 | $ 9,017 |
Balance Sheet Accounts (Schedul
Balance Sheet Accounts (Schedule of Major Customers Accounting for 10% or More of Net Revenue) (Details) - Net Revenue | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Tech Data Corporation | ||
Concentration Risk [Line Items] | ||
Concentration risk (percent) | 11.00% | 17.00% |
Jenne Corporation | ||
Concentration Risk [Line Items] | ||
Concentration risk (percent) | 14.00% | 16.00% |
Westcon Group Inc. | ||
Concentration Risk [Line Items] | ||
Concentration risk (percent) | 15.00% | 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 | Sep. 30, 2017 | Jun. 30, 2017 |
Assets | ||
Total assets measured at fair value | $ 5,550 | $ 7,291 |
Money market funds | ||
Assets | ||
Investments | 4,500 | 4,291 |
Marketable securities | ||
Assets | ||
Investments | 1,050 | |
Investment in non-marketable equity | ||
Assets | ||
Investments | 3,000 | |
Level 1 | ||
Assets | ||
Total assets measured at fair value | 5,550 | 4,291 |
Level 1 | Money market funds | ||
Assets | ||
Investments | 4,500 | 4,291 |
Level 1 | Marketable securities | ||
Assets | ||
Investments | $ 1,050 | |
Level 3 | ||
Assets | ||
Total assets measured at fair value | 3,000 | |
Level 3 | Investment in non-marketable equity | ||
Assets | ||
Investments | $ 3,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narratives) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2017 | |
Level 1 Investments | ||||
Assets | ||||
Sale of non-marketable equity investment in shares market value | $ 1,000,000 | |||
Level 1 Investments | UK Stock Exchange | ||||
Assets | ||||
Shares received for sale of non-marketable equity investment | 41,685 | |||
Level 2 Investments | ||||
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 | $ 169,600,000 | $ 93,700,000 | ||
Level 3 Investments | ||||
Assets | ||||
Shares received for sale of non-marketable equity investment | 41,685 | |||
Sale of non-marketable equity investment in shares market value | $ 900,000 | |||
Purchases of non-marketable equity investment | $ 3,000,000 | |||
Consideration from sale of non-marketable equity investment | 6,800,000 | |||
Consideration from sale of non-marketable equity investment in cash | $ 5,400,000 | |||
Consideration in shares for sale of non-marketable investment | 65,937 | |||
Consideration from sale of non-marketable equity investment in shares market value | $ 1,400,000 | |||
Consideration from sale of non-marketable equity investment | 5,800,000 | |||
Sale of non-marketable equity investment in cash | 4,900,000 | |||
Remaining consideration from non-marketable securities in cash | 500,000 | |||
Remaining consideration from non-marketable securities in shares | $ 500,000 | |||
Escrow period | 18 months | |||
Transfers of assets between Level 2 and Level 3 | $ 0 | $ 0 | ||
Transfers of liabilities between Level 2 and Level 3 | 0 | 0 | ||
Intangible asset and goodwill impairment | 0 | $ 0 | ||
Level 3 Investments | Other Income (Expense), Net | ||||
Assets | ||||
Gain on investments | $ 3,800,000 |
Share-based Compensation (Share
Share-based Compensation (Shares Reserved for Issuance) (Details) - shares shares in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 22,000 | 25,140 |
2014 Employee Stock Purchase Plan | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 6,517 | 7,785 |
Employee Stock Options and Awards Outstanding | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 10,130 | 9,726 |
2013 Equity Incentive Plan Shares Available for Grant | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 5,353 | 7,629 |
Share-based Compensation (Sched
Share-based Compensation (Schedule of Recognized Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 4,803 | $ 3,475 |
Cost of Product Revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 92 | 68 |
Cost of Service Revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 133 | 232 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 1,051 | 1,141 |
Sales and Marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 1,643 | 1,062 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 1,884 | $ 972 |
Share-based Compensation (Summa
Share-based Compensation (Summary of Stock Award Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Jun. 30, 2017 | |
Number of Shares | ||
Non-vested stock awards outstanding at June 30, 2017 | 6,664 | |
Granted | 2,094 | |
Vested | (1,223) | |
Cancelled | (118) | |
Non-vested stock awards outstanding at September 30, 2017 | 7,417 | |
Weighted-Average Grant Date Fair Value | ||
Non-vested stock awards outstanding at June 30, 2017 | $ 4.66 | |
Granted | 10.55 | |
Vested | 3.45 | |
Cancelled | 4.72 | |
Non-vested stock awards outstanding at September 30, 2017 | $ 6.53 | |
Aggregate Fair Market Value | ||
Non-vested stock awards outstanding at June 30, 2017 | $ 88,195 | $ 61,440 |
Share-based Compensation (Sum57
Share-based Compensation (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Jun. 30, 2017 | |
Number of Shares | ||
Options outstanding at June 30, 2017 | 3,062 | |
Exercised | (347) | |
Cancelled | (2) | |
Options outstanding at September 30, 2017 | 2,713 | 3,062 |
Vested and expected to vest at September 30, 2017 | 2,713 | |
Exercisable at September 30, 2017 | 2,129 | |
Weighted-Average Exercise Price Per Share | ||
Options outstanding at June 30, 2017 | $ 4.06 | |
Exercised | 4.44 | |
Cancelled | 5.58 | |
Options outstanding at September 30, 2017 | 4.01 | $ 4.06 |
Vested and expected to vest at September 30, 2017 | 4.01 | |
Exercisable at September 30, 2017 | $ 4.33 | |
Weighted-Average Remaining Contractual Term | ||
Options outstanding | 4 years 1 month 6 days | 4 years 2 months 8 days |
Vested and expected to vest at September 30, 2017 | 4 years 1 month 6 days | |
Exercisable at September 30, 2017 | 3 years 4 months 24 days | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 21,478 | $ 15,868 |
Vested and expected to vest at September 30, 2017 | 21,478 | |
Exercisable at September 30, 2017 | $ 16,090 |
Share-based Compensation (Narra
Share-based Compensation (Narratives) (Details) | 3 Months Ended | |
Sep. 30, 2017Quarter$ / sharesshares | Sep. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted | shares | 2,094,000 | |
Restricted stock units granted, grant date fair value | $ 10.55 | |
2014 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 2.41 | $ 1 |
Stock options granted | shares | 1,267,930 | 1,103,599 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted, percentage | 40.00% | |
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. | 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. |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted | shares | 0 | |
Restricted stock units granted, percentage | 50.00% | |
Restricted stock units granted, grant date fair value | $ 10.90 | |
Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted, grant date fair value | $ 3.02 | |
Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted, grant date fair value | $ 3.09 | |
Service-based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted, percentage | 50.00% | 50.00% |
Executive Officers | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted | shares | 1,154,014 | 680,000 |
Executive Officers | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted, percentage | 50.00% | |
Other Employees | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted | shares | 939,925 | 1,878,420 |
Chief Executive Officers | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted, percentage | 60.00% | |
Employees | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock unit vesting, earnings per share | $ 0.32 | |
Performance stock unit vesting, consecutive quarters | Quarter | 2 | |
Restricted stock units vesting, stock trigger price | $ 16 | $ 5 |
Restricted stock units vesting, Threshold consecutive trading days after January 1, 2017 | 30 days |
Share-based Compensation (Sch59
Share-based Compensation (Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards) (Details) - Employee Stock Purchase Plan | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected life | 6 months | 6 months |
Risk-free interest rate | 1.15% | 0.40% |
Volatility | 42.00% | 40.00% |
Restructuring Charges (Narrativ
Restructuring Charges (Narratives) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | $ 0 | |
Cash payments | 562,000 | $ 508,000 | |
Reduction-in-force | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and benefits charges | $ 5,600,000 | ||
Cash payments | $ 600,000 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | ||
Beginning balance | $ 4,122 | $ 4,644 |
Period payments | (562) | (508) |
Ending balance | 3,560 | 4,136 |
Less: current portion included in other accrued liabilities | 1,877 | 1,754 |
Restructuring accrual included in other long-term liabilities | $ 1,683 | $ 2,382 |
Commitments and Contingencies (
Commitments and Contingencies (Narratives) (Details) - Sep. 30, 2017 BRL in Millions | USD ($) | BRL |
Foreign | Secretariat of the Federal Revenue Bureau of Brazil | ||
Loss Contingencies [Line Items] | ||
Value of tax credits disallowed | $ 1,100,000 | BRL 3.4 |
Total amount of claim including accrued interest, penalties and attorneys' fees | 8,400,000 | 26.6 |
Penalties, court costs, attorneys’ fees, and accrued interest | 5,200,000 | 16.6 |
Tax liability related to the ICMS Tax Assessments, accrued | 3,000,000 | BRL 9.4 |
Inventory Purchase Commitments | ||
Loss Contingencies [Line Items] | ||
Non-cancelable purchase commitments | 115,100,000 | |
Software and Support Services Commitments | ||
Loss Contingencies [Line Items] | ||
Non-cancelable purchase commitments | $ 20,300,000 |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Provision for income taxes | $ 1,675 | $ 907 |
Unrecognized tax benefits | 19,200 | |
Unrecognized tax benefit future impact if recognized | 19,200 | |
Enterasys, Zebra WLAN Business and Avaya Networking | ||
Operating Loss Carryforwards [Line Items] | ||
Tax amortization deduction for capitalized goodwill | 1,600 | $ 1,100 |
Deferred tax liability, goodwill | $ 6,900 | |
Amortization period for tax purposes | 15 years |
Net Income (Loss) Per Share (Sc
Net Income (Loss) Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share Diluted [Line Items] | ||
Net income (loss) | $ 4,376 | $ (5,742) |
Weighted-average shares used in per share - basic calculation | 112,241 | 105,955 |
Weighted-average shares used in per share - diluted calculation | 118,431 | 105,955 |
Net income (loss) per share: | ||
Basic | $ 0.04 | $ (0.05) |
Diluted | $ 0.04 | $ (0.05) |
Options to purchase common stock | ||
Earnings Per Share Diluted [Line Items] | ||
Effect of potentially dilutive shares | 1,760 | |
Restricted Stock Units | ||
Earnings Per Share Diluted [Line Items] | ||
Effect of potentially dilutive shares | 4,007 | |
Employee Stock Purchase Plan shares | ||
Earnings Per Share Diluted [Line Items] | ||
Effect of potentially dilutive shares | 423 |
Net Income (Loss) Per Share (65
Net Income (Loss) Per Share (Schedule of Anti-Dilutive Shares Excluded from Earnings Per Share Calculation) (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 700 | 5,551 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 3,715 | |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 496 | 1,635 |
Employee Stock Purchase Plan shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS | 204 | 201 |
Foreign Exchange Forward Cont66
Foreign Exchange Forward Contracts (Narratives) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||
Foreign currency transactions realized loss | $ 600,000 | $ 200,000 |
Not Designated as Hedging Instrument | Forward Foreign Currency Contracts | ||
Derivative [Line Items] | ||
Notional principal amount of forward foreign currency contracts | $ 9,600,000 | |
Maximum maturities for contracts | 60 days | |
Derivative instruments outstanding | $ 0 |
Disclosure about Segments of 67
Disclosure about Segments of an Enterprise and Geographic Areas (Narratives) (Details) | 3 Months Ended |
Sep. 30, 2017SegmentGeographic_Area | |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 1 |
Number of geographic regions | Geographic_Area | 3 |
Disclosure about Segments of 68
Disclosure about Segments of an Enterprise and Geographic Areas (Schedule of Revenues by Geographic Regions and Channels) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||
Net Revenues | $ 211,715 | $ 122,604 |
Distributor | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 111,224 | 61,135 |
Direct | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 100,491 | 61,469 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 93,382 | 53,820 |
United States | Distributor | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 42,392 | 26,991 |
United States | Direct | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 50,990 | 26,829 |
Other Americas | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 20,731 | 11,021 |
Other Americas | Distributor | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 14,336 | 1,393 |
Other Americas | Direct | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 6,395 | 9,628 |
Total Americas | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 114,113 | 64,841 |
Total Americas | Distributor | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 56,728 | 28,384 |
Total Americas | Direct | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 57,385 | 36,457 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 79,135 | 47,828 |
EMEA | Distributor | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 51,232 | 31,299 |
EMEA | Direct | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 27,903 | 16,529 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 18,467 | 9,935 |
APAC | Distributor | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 3,264 | 1,452 |
APAC | Direct | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | $ 15,203 | $ 8,483 |
Disclosure about Segments of 69
Disclosure about Segments of an Enterprise and Geographic Areas (Schedule of Long Lived Assets by Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 133,479 | $ 80,642 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 113,901 | 67,369 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 11,412 | 8,998 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 8,166 | $ 4,275 |
Subsequent Event (Narratives) (
Subsequent Event (Narratives) (Details) $ in Thousands | Oct. 27, 2017USD ($)Quarter | Oct. 31, 2017USD ($) | Sep. 30, 2017USD ($) |
Subsequent Event [Line Items] | |||
Upfront cash closing payment | $ 68,047 | ||
Borrowings under Term Loan | $ 80,000 | ||
Brocade SRA | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Business acquisition date | Oct. 27, 2017 | ||
Upfront cash closing payment | $ 23,000 | ||
Deferred payment | 20,000 | ||
Deferred payment to be paid per quarter | $ 1,000 | ||
Number of quarters deferred payment to be paid | Quarter | 20 | ||
Quarterly earn out payments in percentage of profits of Brocade SRA | 50.00% | ||
Quarterly earn out payments period | 5 years | ||
Broadcom, Inc. | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Acquisition fee paid | $ 25,000 | ||
Term Loan | Brocade SRA | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Borrowings under Term Loan | $ 20,000 |