Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2021 | Jan. 21, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | EXTREME NETWORKS, INC. | |
Entity Central Index Key | 0001078271 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | EXTR | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 129,212,868 | |
Entity File Number | 000-25711 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0430270 | |
Entity Address, Address Line One | 2121 RDU Center Drive, Suite 300 | |
Entity Address, City or Town | Morrisville | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27560 | |
City Area Code | 408 | |
Local Phone Number | 579-2800 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Current assets: | ||
Cash | $ 173,548 | $ 246,894 |
Accounts receivable, net | 133,255 | 156,476 |
Inventories | 37,180 | 32,885 |
Prepaid expenses and other current assets | 86,534 | 51,340 |
Total current assets | 430,517 | 487,595 |
Property and equipment, net | 52,117 | 55,004 |
Operating lease right-of-use assets, net | 31,177 | 36,927 |
Intangible assets, net | 40,945 | 36,038 |
Goodwill | 395,246 | 331,159 |
Other assets | 62,798 | 63,370 |
Total assets | 1,012,800 | 1,010,093 |
Current liabilities: | ||
Current portion of long-term debt, net of unamortized debt issuance costs of $2,333 and $2,404, respectively | 28,542 | 23,721 |
Accounts payable | 58,831 | 60,142 |
Accrued compensation and benefits | 65,543 | 71,610 |
Accrued warranty | 11,137 | 11,623 |
Current portion of operating lease liabilities | 18,140 | 18,743 |
Current portion of deferred revenue | 224,735 | 212,412 |
Other accrued liabilities | 60,752 | 57,449 |
Total current liabilities | 467,680 | 455,700 |
Deferred revenue, less current portion | 148,477 | 133,172 |
Long-term debt, less current portion, net of unamortized debt issuance costs of $3,542 and $4,760, respectively | 288,458 | 315,865 |
Operating lease liabilities, less current portion | 25,437 | 32,515 |
Deferred income taxes | 4,139 | 3,828 |
Other long-term liabilities | 9,010 | 14,545 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 750,000 shares authorized; 137,478 and 133,279 shares issued, respectively; 129,052 and 126,682 shares outstanding, respectively | 137 | 133 |
Additional paid-in-capital | 1,092,646 | 1,078,602 |
Accumulated other comprehensive loss | (2,791) | (2,811) |
Accumulated deficit | (952,306) | (978,343) |
Treasury stock at cost, 8,426 and 6,597 shares, respectively | (68,087) | (43,113) |
Total stockholders’ equity | 69,599 | 54,468 |
Total liabilities and stockholders’ equity | $ 1,012,800 | $ 1,010,093 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Current liabilities: | ||
Net of unamortized debt issuance costs | $ 2,333 | $ 2,404 |
Noncurrent liabilities: | ||
Net of unamortized debt issuance costs | $ 3,542 | $ 4,760 |
Stockholders’ equity: | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 137,478,000 | 133,279,000 |
Common stock, shares outstanding | 129,052,000 | 126,682,000 |
Treasury stock, shares | 8,426,000 | 6,597,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net revenues: | ||||
Total net revenues | $ 280,933 | $ 242,128 | $ 548,617 | $ 477,930 |
Cost of revenues: | ||||
Total cost of revenues | 122,147 | 101,936 | 234,228 | 202,720 |
Gross profit: | ||||
Total gross profit | 158,786 | 140,192 | 314,389 | 275,210 |
Operating expenses: | ||||
Research and development | 48,080 | 49,186 | 95,846 | 98,710 |
Sales and marketing | 71,565 | 66,732 | 141,092 | 131,057 |
General and administrative | 17,877 | 16,360 | 34,880 | 32,821 |
Acquisition and integration costs | 2,113 | 3,623 | 1,975 | |
Restructuring and related charges | 292 | 695 | 571 | 1,696 |
Amortization of intangibles | 804 | 1,506 | 1,958 | 3,298 |
Total operating expenses | 140,731 | 134,479 | 277,970 | 269,557 |
Operating income | 18,055 | 5,713 | 36,419 | 5,653 |
Interest income | 83 | 82 | 193 | 200 |
Interest expense | (3,076) | (6,068) | (6,956) | (12,731) |
Other income (expense), net | 72 | (954) | 243 | (1,841) |
Income (loss) before income taxes | 15,134 | (1,227) | 29,899 | (8,719) |
Provision for income taxes | 1,793 | 1,823 | 3,862 | 3,143 |
Net income (loss) | $ 13,341 | $ (3,050) | $ 26,037 | $ (11,862) |
Basic and diluted income (loss) per share: | ||||
Net income (loss) per share - basic | $ 0.10 | $ (0.02) | $ 0.20 | $ (0.10) |
Net income (loss) per share - diluted | $ 0.10 | $ (0.02) | $ 0.20 | $ (0.10) |
Shares used in per share calculation - basic | 129,403 | 123,264 | 128,863 | 122,485 |
Shares used in per share calculation - diluted | 133,621 | 123,264 | 133,423 | 122,485 |
Product | ||||
Net revenues: | ||||
Total net revenues | $ 191,102 | $ 165,845 | $ 376,263 | $ 327,241 |
Cost of revenues: | ||||
Total cost of revenues | 90,933 | 74,005 | 171,877 | 147,400 |
Gross profit: | ||||
Total gross profit | 100,169 | 91,840 | 204,386 | 179,841 |
Service and Subscription | ||||
Net revenues: | ||||
Total net revenues | 89,831 | 76,283 | 172,354 | 150,689 |
Cost of revenues: | ||||
Total cost of revenues | 31,214 | 27,931 | 62,351 | 55,320 |
Gross profit: | ||||
Total gross profit | $ 58,617 | $ 48,352 | $ 110,003 | $ 95,369 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 13,341 | $ (3,050) | $ 26,037 | $ (11,862) |
Derivatives designated as hedging instruments: | ||||
Change in unrealized gains and losses on interest rate swaps | 346 | (120) | 261 | (293) |
Reclassification adjustment related to interest rate swaps | 285 | 226 | 566 | 386 |
Change in unrealized gains and losses on foreign currency forward contracts | 140 | (61) | ||
Net change from derivatives designated as hedging instruments | 771 | 106 | 766 | 93 |
Net change in foreign currency translation adjustments | 160 | 2,160 | (746) | 3,615 |
Other comprehensive income | 931 | 2,266 | 20 | 3,708 |
Total comprehensive income (loss) | $ 14,272 | $ (784) | $ 26,057 | $ (8,154) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In-Capital | Accumulated Other Comprehensive Loss | Treasury Stock | Accumulated Deficit |
Balance at Jun. 30, 2020 | $ 5,398 | $ 127 | $ 1,035,041 | $ (6,378) | $ (980,279) | |
Balance, common stock, shares at Jun. 30, 2020 | 127,114 | |||||
Treasury stock, shares at Jun. 30, 2020 | (6,597) | |||||
Treasury stock, value at Jun. 30, 2020 | $ (43,113) | |||||
Net income (loss) | (11,862) | (11,862) | ||||
Other comprehensive income (loss) | 3,708 | 3,708 | ||||
Issuance of common stock from equity incentive plans, net of tax withholdings | 2,284 | $ 3 | 2,281 | |||
Issuance of common stock from equity incentive plans, net of tax withholdings, shares | 3,066 | |||||
Share-based compensation | 18,397 | 18,397 | ||||
Balance at Dec. 31, 2020 | 17,925 | $ 130 | 1,055,719 | (2,670) | (992,141) | |
Balance, common stock, shares at Dec. 31, 2020 | 130,180 | |||||
Treasury stock, shares at Dec. 31, 2020 | (6,597) | |||||
Treasury stock, value at Dec. 31, 2020 | $ (43,113) | |||||
Balance at Sep. 30, 2020 | 9,911 | $ 130 | 1,046,921 | (4,936) | (989,091) | |
Balance, common stock, shares at Sep. 30, 2020 | 129,532 | |||||
Treasury stock, shares at Sep. 30, 2020 | (6,597) | |||||
Treasury stock, value at Sep. 30, 2020 | $ (43,113) | |||||
Net income (loss) | (3,050) | (3,050) | ||||
Other comprehensive income (loss) | 2,266 | 2,266 | ||||
Issuance of common stock from equity incentive plans, net of tax withholdings | (1,297) | (1,297) | ||||
Issuance of common stock from equity incentive plans, net of tax withholdings, shares | 648 | |||||
Share-based compensation | 10,095 | 10,095 | ||||
Balance at Dec. 31, 2020 | 17,925 | $ 130 | 1,055,719 | (2,670) | (992,141) | |
Balance, common stock, shares at Dec. 31, 2020 | 130,180 | |||||
Treasury stock, shares at Dec. 31, 2020 | (6,597) | |||||
Treasury stock, value at Dec. 31, 2020 | $ (43,113) | |||||
Balance at Jun. 30, 2021 | $ 54,468 | $ 133 | 1,078,602 | (2,811) | (978,343) | |
Balance, common stock, shares at Jun. 30, 2021 | 133,279 | 133,279 | ||||
Treasury stock, shares at Jun. 30, 2021 | (6,597) | (6,597) | ||||
Treasury stock, value at Jun. 30, 2021 | $ (43,113) | $ (43,113) | ||||
Net income (loss) | 26,037 | 26,037 | ||||
Other comprehensive income (loss) | 20 | 20 | ||||
Issuance of common stock from equity incentive plans, net of tax withholdings | (7,729) | $ 4 | (7,733) | |||
Issuance of common stock from equity incentive plans, net of tax withholdings, shares | 4,199 | |||||
Repurchase of stock | (24,974) | $ (24,974) | ||||
Repurchase of stock, shares | (1,829) | |||||
Share-based compensation | 21,777 | 21,777 | ||||
Balance at Dec. 31, 2021 | $ 69,599 | $ 137 | 1,092,646 | (2,791) | (952,306) | |
Balance, common stock, shares at Dec. 31, 2021 | 137,478 | 137,478 | ||||
Treasury stock, shares at Dec. 31, 2021 | (8,426) | (8,426) | ||||
Treasury stock, value at Dec. 31, 2021 | $ (68,087) | $ (68,087) | ||||
Balance at Sep. 30, 2021 | 72,325 | $ 136 | 1,084,671 | (3,722) | (965,647) | |
Balance, common stock, shares at Sep. 30, 2021 | 136,351 | |||||
Treasury stock, shares at Sep. 30, 2021 | (6,597) | |||||
Treasury stock, value at Sep. 30, 2021 | $ (43,113) | |||||
Net income (loss) | 13,341 | 13,341 | ||||
Other comprehensive income (loss) | 931 | 931 | ||||
Issuance of common stock from equity incentive plans, net of tax withholdings | (3,357) | $ 1 | (3,358) | |||
Issuance of common stock from equity incentive plans, net of tax withholdings, shares | 1,127 | |||||
Repurchase of stock | (24,974) | $ (24,974) | ||||
Repurchase of stock, shares | (1,829) | |||||
Share-based compensation | 11,333 | 11,333 | ||||
Balance at Dec. 31, 2021 | $ 69,599 | $ 137 | $ 1,092,646 | $ (2,791) | $ (952,306) | |
Balance, common stock, shares at Dec. 31, 2021 | 137,478 | 137,478 | ||||
Treasury stock, shares at Dec. 31, 2021 | (8,426) | (8,426) | ||||
Treasury stock, value at Dec. 31, 2021 | $ (68,087) | $ (68,087) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 26,037 | $ (11,862) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 10,233 | 12,471 |
Amortization of intangible assets | 11,393 | 16,646 |
Reduction in carrying amount of right-of-use asset | 7,778 | 8,072 |
Provision for doubtful accounts | 14 | 143 |
Share-based compensation | 21,777 | 18,397 |
Deferred income taxes | 890 | 628 |
Non-cash interest expense | 2,517 | 2,171 |
Other | (474) | 3,195 |
Changes in operating assets and liabilities, net of acquisition: | ||
Accounts receivable | 24,626 | (5,658) |
Inventories | (4,239) | 6,340 |
Prepaid expenses and other assets | (34,215) | (3,740) |
Accounts payable | (2,505) | 4,913 |
Accrued compensation and benefits | (8,378) | 10,984 |
Operating lease liabilities | (9,675) | (10,116) |
Deferred revenue | 17,785 | 17,949 |
Other current and long-term liabilities | (1,082) | (7,762) |
Net cash provided by operating activities | 62,482 | 62,771 |
Cash flows from investing activities: | ||
Capital expenditures | (6,653) | (8,039) |
Business acquisition, net of cash acquired | (69,517) | |
Net cash used in investing activities | (76,170) | (8,039) |
Cash flows from financing activities: | ||
Payments on debt obligations | (23,875) | (64,500) |
Repurchase of common stock | (24,974) | |
Payments for tax withholdings, net of proceeds from issuance of common stock | (7,729) | 2,284 |
Payment of contingent consideration obligations | (816) | (1,021) |
Deferred payments on an acquisition | (2,000) | (2,000) |
Net cash used in financing activities | (59,394) | (65,237) |
Foreign currency effect on cash | (264) | 602 |
Net decrease in cash | (73,346) | (9,903) |
Cash at beginning of period | 246,894 | 193,872 |
Cash at end of period | $ 173,548 | $ 183,969 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Dec. 31, 2021 | |
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 U.S. generally accepted accounting principles have been condensed or omitted under such rules and regulations. The condensed consolidated balance sheets at June 30, 2021 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, 2021. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations and cash flows for the interim periods presented and the financial condition of Extreme at December 31, 2021. The results of operations for the three and six months ended December 31, 2021 are not necessarily indicative of the results that may be expected for fiscal 2022 or any future periods. Fiscal Year The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2022” or “2022” represent the fiscal year ending June 30, 2022. All references herein to “fiscal 2021” or “2021” represent the fiscal year ended June 30, 2021. Principles of Consolidation The unaudited condensed 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 functional currency environment, all assets and liabilities are translated to United States Dollars at current month end rates of exchange and revenues 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. Actual results could differ from these estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies For a description of significant accounting policies, see Note 2, 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, 2021. There have been no material changes to the Company’s significant accounting policies since the filing of the Annual Report on Form 10-K. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“the FASB”) issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes (Topic 740 Income Taxes a material impact on the Company’s financial statements upon adoption Recently Issued and Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with Customers |
Revenues
Revenues | 6 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 3. Revenues The Company accounts for revenues in accordance with ASU 2014-09, Revenue from Contracts from Customers (Topic 606) Revenue Recognition 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 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 other observable inputs. The Company’s performance obligations are satisfied at a point in time or over time as the customer receives and consumes the benefits provided. Substantially all of the Company’s product sales revenues are recognized at a point in time. Substantially all of the Company’s service, subscription, and SaaS revenues are recognized over time. For revenues recognized over time, the Company uses an input measure, days elapsed, to measure progress. On December 31, 2021, the Company had $373.2 million of remaining performance obligations, which are primarily comprised of deferred maintenance and SaaS revenues. The Company expects to recognize approximately 38% of its deferred revenue as revenue in fiscal 2022, an additional 34% in fiscal 2023 and 28% of the balance thereafter. Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue in the condensed consolidated balance sheets. Services provided under renewable support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are either billed fully at the inception of contract or 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 condensed consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. Revenue recognized for the three months ended December 31, 2021 and 2020 that was included in the deferred revenue balance at the beginning of each period was $ 81.9 million and $ 68.8 million, respectively . Revenue recognized for the six months ended December 31, 2021 and 2020 that was included in the deferred revenue balance at the beginning of each period was $ 132.5 million and $ 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. Management expects that commission fees paid to sales representatives as a result of obtaining service contracts and contract renewals are recoverable and therefore the Company’s condensed consolidated balance sheets included capitalized balances in the amount of $ 14.2 million and $13.1 million at December 31, 2021 and June 30, 2021, 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” in the accompanying condensed consolidated statements of operations. Amortization recognized during the three months ended December 31, 2021 and 2020, was $1.8 million and $1.2 million, respectively. Amortization recognized during the six months ended December 31, 2021 and 2020, was $3.6 million and $2.5 million, respectively. Estimated Variable Consideration. 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. Revenues by Category The Company operates in three geographic regions: 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, China, South Asia and Japan. The following table sets forth the Company’s revenues disaggregated by sales channel and geographic region based on the billing addresses of its customers (in thousands): Three Months Ended December 31, 2021 December 31, 2020 Distributor Direct Total Distributor Direct Total Americas: United States $ 68,565 $ 68,585 $ 137,150 $ 46,506 $ 58,744 $ 105,250 Other 3,865 4,955 8,820 8,950 3,648 12,598 Total Americas 72,430 73,540 145,970 55,456 62,392 117,848 EMEA 68,934 42,128 111,062 69,602 34,220 103,822 APAC 5,034 18,867 23,901 2,793 17,665 20,458 Total net revenues $ 146,398 $ 134,535 $ 280,933 $ 127,851 $ 114,277 $ 242,128 Six Months Ended December 31, 2021 December 31, 2020 Distributor Direct Total Distributor Direct Total Americas: United States $ 124,633 $ 135,916 $ 260,549 $ 107,176 $ 116,091 $ 223,267 Other 11,664 8,322 19,986 17,191 7,738 24,929 Total Americas 136,297 144,238 280,535 124,367 123,829 248,196 EMEA 146,832 77,859 224,691 117,131 67,796 184,927 APAC 9,369 34,022 43,391 7,844 36,963 44,807 Total net revenues $ 292,498 $ 256,119 $ 548,617 $ 249,342 $ 228,588 $ 477,930 For the six months ended December 31, 2021, the Company generated 10% of its revenues from the Netherlands. For the three months ended December 31, 2020, the Company generated 11% of its revenues from the Netherlands and 11% of its revenues from Germany. For the six months ended December 31, 2020, the Company generated 10% of its revenues from the Netherlands and 10% of its revenues from Germany. No other foreign country accounted for 10% Customer Concentrations The Company performs ongoing credit evaluations of its customers and generally does not require collateral in exchange for credit. The following table sets forth customers accounting for 10% or more of the Company’s net revenues for the periods indicated below: Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 TD Synnex Corporation 21% 21% 22% 24% Jenne Corporation 18% 11% 16% 13% Westcon Group Inc. 11% 19% 15% 16% The following table sets forth customers accounting for 10% or more of the Company’s accounts receivable balance: December 31, 2021 June 30, 2021 TD Synnex Corporation 10% 19% Jenne Corporation * 24% * Less than 10% of accounts receivable. |
Business Combination
Business Combination | 6 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination | 4. Business Combination Fiscal 2022 Acquisition Ipanema Acquisition On September 14, 2021 (the “Acquisition Date”), the Company completed its acquisition (the “Acquisition”) of Ipanematech SAS (“Ipanema”), the cloud-native enterprise Software-Defined Wide Area Network (“SD-WAN”) business unit of Infovista pursuant to a Sale and Purchase Agreement. Under the terms of the Acquisition, the net consideration paid by Extreme to Ipanema stockholders was $70.9 million, which was funded from existing cash on hand. The primary reason for the acquisition was to acquire the talent and the technology to allow us to expand our portfolio with new cloud-managed SD-WAN and security offerings to support our enterprise customers. The Acquisition has been accounted for using the acquisition method of accounting whereby the acquired assets and liabilities of Ipanema have been recorded at their respective fair values and added to those of the Company including an amount for goodwill calculated as the difference between the acquisition consideration and the fair value of the identifiable net assets. The purchase price has been preliminarily allocated to tangible and identifiable intangible assets acquired and liabilities assumed. The final purchase price allocation is pending the finalization of valuations primarily intangible assets, goodwill and income tax assets and liabilities, which may result in an adjustment to the preliminary purchase price allocation The estimated fair values were determined through established and generally accepted valuation techniques, including work performed by third-party valuation specialists. The fair value of working capital related items, such as accounts receivable, other current assets and accrued liabilities, approximated their book values at the date of acquisition. 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 to a third party to assume the obligation. The fair value of the acquired deferred revenue was subsequently remeasured in accordance with ASC Topic 606 based on the recently issued and adopted guidance ASU 2021-08. Valuations of the intangible assets were valued using income approaches based on management projections, 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. Results of operations of Ipanema have been included in the operations of the Company beginning with the Acquisition Date. The preliminary purchase price allocation is set forth in the table below and reflects estimated fair values (in thousands): Preliminary Allocation as of September 14, 2021 Adjustments Allocation as of December 31, 2021 Cash and cash equivalents $ 1,364 $ — $ 1,364 Accounts receivable, net 1,440 (6 ) a 1,434 Inventories 337 (63 ) a 274 Prepaid expenses and other current assets 1,841 (1,082 ) a 759 Property and equipment 46 — 46 Other assets 21 — 21 Accounts payable (1,220 ) 244 a (976 ) Accrued compensation and benefits (2,304 ) 638 a (1,666 ) Accrued warranty (41 ) — (41 ) Other accrued liabilities (71 ) (51 ) b (122 ) Deferred revenue (2,758 ) (7,118 ) b (9,876 ) Other liabilities (723 ) (723 ) Net tangible liabilities (2,068 ) (7,438 ) (9,506 ) Identifiable intangible assets 16,300 — 16,300 Goodwill 56,649 7,438 a,b 64,087 Total intangible assets acquired 72,949 7,438 80,387 Total net assets acquired $ 70,881 $ — $ 70,881 The changes made during the period in the table above include: a) measurement period adjustments attributable to the Company’s review of the additional information being obtained on preacquisition assets and liabilities, b) the increase in deferred revenue (and the corresponding increase to Goodwill by the same amount) is the result of the adoption of ASU 2021-08 in the period ended December 31, 2021. The following table presents details of the identifiable intangible assets acquired as part of the acquisition (in thousands): Intangible Assets Weighted Average Estimated Useful Life (in years) Amount Developed technologies 6 $ 14,500 Customer relationships 4 1,800 Total identifiable intangible assets $ 16,300 The amortization for the developed technologies is recorded in “Cost of revenues” for product and the amortization for the remaining intangibles is recorded in “Amortization of intangibles” in the accompanying condensed consolidated statements of operations. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Ipanema. The Company will not be entitled to amortization of the goodwill and intangible assets for tax purposes as this acquisition is a nontaxable stock acquisition. The results of operations of Ipanema are included in the accompanying condensed consolidated results of operations beginning September 15, 2021. The overall results of Operations of Ipanema were not material to the condensed consolidated financial statements of Extreme. For the three and six months ended December 31, 2021, the Company incurred acquisition and integration related expenses of $2.1 million and $3.6 million, respectively, associated with the acquisition of Ipanema . A Pro forma financial information The following unaudited pro forma results of operations are presented as though the Acquisition had occurred as of the beginning of the earliest period presented, July 1, 2020, the beginning of fiscal 2021, after giving effect to purchase accounting adjustments relating to deferred revenue, depreciation and amortization of intangibles and acquisition and integration costs. 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 beginning of fiscal 2021, 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 and six months ended December 31, 2020 combines the historical results for Extreme for such periods assuming the transaction closed on July 1, 2020, which include the results of Ipanema subsequent to the Acquisition Date, and Ipanema’s historical results up to the Acquisition Date. The following table summarizes the unaudited pro forma financial information (in thousands, except per share amounts): Three months ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net revenues $ 280,438 $ 248,474 $ 551,743 $ 488,828 Net income (loss) $ 15,562 $ (5,439 ) $ 29,631 $ (16,877 ) Net income (loss) per share - basic $ 0.12 $ (0.04 ) $ 0.23 $ (0.14 ) Net income (loss) per share - diluted $ 0.12 $ (0.04 ) $ 0.22 $ (0.14 ) Shares used in per share calculation - basic 129,403 123,264 128,863 122,485 Shares used in per share calculation - diluted 133,621 123,264 133,423 122,485 |
Balance Sheet Accounts
Balance Sheet Accounts | 6 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Accounts | 5. Balance Sheet Accounts Inventories The Company values its inventory at the 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 adjusts the carrying value of its inventory 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 previously written down or obsolete inventory subsequently sold has not had a material impact on gross margin for any of the periods presented. Inventories consist of the following (in thousands): December 31, 2021 June 30, 2021 Finished goods $ 30,342 $ 27,901 Raw materials 6,838 4,984 Total inventories $ 37,180 $ 32,885 Property and Equipment, Net Property and equipment, net consist of the following (in thousands): December 31, 2021 June 30, 2021 Computers and equipment $ 76,308 $ 75,866 Purchased software 44,305 40,037 Office equipment, furniture and fixtures 10,242 10,201 Leasehold improvements 52,984 53,329 Total property and equipment 183,839 179,433 Less: accumulated depreciation and amortization (131,722 ) (124,429 ) Property and equipment, net $ 52,117 $ 55,004 Deferred Revenue Deferred revenue represents amounts for deferred maintenance, support, SaaS, and other deferred revenue including professional services and training when the revenue recognition criteria have not been met. Guarantees and Product Warranties The majority of the Company’s hardware products are shipped with either a one-year The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Balance beginning of period $ 10,780 $ 13,484 $ 11,623 $ 14,035 Warranties assumed due to acquisition — — 41 — New warranties issued 3,822 3,056 6,532 6,135 Warranty expenditures (3,465 ) (3,467 ) (7,059 ) (7,097 ) Balance end of period $ 11,137 $ 13,073 $ 11,137 $ 13,073 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 for intellectual property infringement and certain other losses. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results or financial position. Concentrations The Company may be subject to concentration of credit risk as a result of certain financial instruments consisting of accounts receivable. The Company does not invest an amount exceeding 10% of its combined cash 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2021 | |
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 following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and June 30, 2021 (in thousands). December 31, 2021 Level 1 Level 2 Level 3 Total Assets Foreign currency derivatives $ — $ 168 $ — $ 168 Total assets measured at fair value $ — $ 168 $ — $ 168 Liabilities Foreign currency derivatives $ — $ 274 $ — $ 274 Interest rate swaps — 306 — 306 Acquisition-related contingent consideration obligations — — 208 208 Total liabilities measured at fair value $ — $ 580 $ 208 $ 788 June 30, 2021 Level 1 Level 2 Level 3 Total Liabilities Foreign currency derivatives $ — $ 560 $ — $ 560 Interest rate swaps — 1,133 — 1,133 Acquisition-related contingent consideration obligations — — 913 913 Total liabilities measured at fair value $ — $ 1,693 $ 913 $ 2,606 Level 1 Assets and Liabilities The Company’s financial instruments consist of cash, accounts receivable, accounts payable, and accrued liabilities. The Company states accounts receivable, accounts payable and accrued liabilities at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. Level 2 Assets and Liabilities The fair value of derivative instruments under the Company’s foreign exchange forward contracts and interest rate swaps are estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2. As of December 31, 2021 and June 30, 2021, the Company had foreign exchange forward contracts that were not designated as hedging instruments with notional principal amount of $20.4 million and $23.0 million, respectively. These contracts have maturities of 40 days The fair values of the interest rate swaps are based upon inputs corroborated by observable market data which is considered Level 2. As of December 31, 2021 June 30, 2021 , the Company had interest rate swap contracts, designated as cash flow hedges, with the total notional amount of $200.0 million. Changes in fair value of these contracts are recorded as a component of accumulated other comprehensive loss. As of December 31, 2021 and as of June 30, 2021 these contracts had an unrealized loss of $0.3 million and $1.1 million, respectively. See Note 13, Derivatives and Hedging, for additional information. The fair value of the borrowings under the 2019 Credit Agreement (as d efined in Note 8 ) is estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2. Since the interest rate is variable for the 2019 Credit Agreement , the fair value approximates the face amount of the Company’s indebtedness of $322.9 million and $ million as of December 31, 2021 , and June 30, 2021 , respectively. Level 3 Assets and Liabilities: 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. At December 31, 2021 and June 30, 2021, the Company reflected one liability measured at fair value of $0.2 million and $0.9 million, respectively, for contingent consideration related to a certain acquisition completed in fiscal 2018. The fair value measurement of the contingent consideration obligation is determined using Level 3 inputs. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Changes in the value of the contingent consideration obligations are recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations. The activities related to acquisition-related contingent consideration obligations during the period were not significant. There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 during the three and six months ended December 31, 2021 and 2020 . The Company determines the basis of the cost of a security sold or the amount reclassified out of accumulated other comprehensive loss into earnings using the specific identification method. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets The following tables summarize the components of gross and net intangible asset balances (dollars in thousands): Weighted Average Remaining Amortization Gross Carrying Accumulated Net Carrying Period Amount Amortization Amount December 31, 2021 Developed technology 3.3 years $ 170,600 $ 139,284 $ 31,316 Customer relationships 4.4 years 64,839 55,706 9,133 Backlog — years 400 400 — Trade names 0.6 years 10,700 10,560 140 License agreements 4.9 years 2,445 2,089 356 Total intangibles, net $ 248,984 $ 208,039 $ 40,945 Weighted Average Remaining Amortization Gross Accumulated Net Carrying Period Amount Amortization Amount June 30, 2021 Developed technology 1.8 years $ 156,100 $ 129,861 $ 26,239 Customer relationships 4.8 years 63,039 54,204 8,835 Backlog — years 400 400 — Trade names 0.7 years 10,700 10,128 572 License agreements 5.4 years 2,445 2,053 392 Total intangibles, net $ 232,684 $ 196,646 $ 36,038 The amortization expense of intangibles for the periods presented is summarized below (in thousands): Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Amortization of intangibles in “Total cost of revenues” $ 4,149 $ 6,649 $ 9,435 $ 13,348 Amortization of intangibles in “Operations” 804 1,506 1,958 3,298 Total amortization expense $ 4,953 $ 8,155 $ 11,393 $ 16,646 The amortization expense that is recognized in “Total cost of revenues” is comprised of amortization for developed technology, license agreements and other intangibles. |
Debt
Debt | 6 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt The Company’s debt is comprised of the following (in thousands): December 31, 2021 June 30, 2021 Current portion of long-term debt: Term Loan $ 30,875 $ 26,125 Less: unamortized debt issuance costs (2,333 ) (2,404 ) Current portion of long-term debt $ 28,542 $ 23,721 Long-term debt, less current portion: Term Loan $ 292,000 $ 320,625 Less: unamortized debt issuance costs (3,542 ) (4,760 ) Total long-term debt, less current portion 288,458 315,865 Total debt $ 317,000 $ 339,586 In connection with the acquisition of Aerohive Networks, Inc., on August 9, 2019, the Company entered into an Amended and Restated Credit Agreement (the “2019 Credit Agreement”), by and among the Company, as borrower, several banks and other financial institutions as Lenders, BMO Harris Bank N.A., as an issuing lender and swingline lender, Silicon Valley Bank, as an Issuing Lender, and Bank of Montreal, as administrative agent and collateral agent for the Lenders. The 2019 Credit Agreement provides for a five-year five-year partially fund the Acquisition and for working capital and general corporate purposes At the Company’s election, the initial term loan under the 2019 Credit Agreement may be made as either base rate loans or Eurodollar loans. The applicable margin for base rate loans ranges from 0.25% to 2.50% per annum and the applicable margin for Eurodollar loans ranges from 1.25% to 3.50%, in each case based on Extreme’s consolidated leverage ratio. All Eurodollar loans are subject to a Base Rate of 0.00%. In addition, the Company is required to pay a commitment fee of between 0.25% and 0.40% quarterly (currently 0.25%) on the unused portion of the 2019 Revolving Facility, also based on the Company’s consolidated leverage ratio. Principal installments are payable on the new term loan in varying percentages quarterly starting December 31, 2019 and to the extent not previously paid, all outstanding balances are to be paid at maturity. The 2019 Credit Agreement is secured by substantially all of the Company’s assets. The 2019 Credit Agreement requires the Company to maintain certain minimum financial ratios at the end of each fiscal quarter. The 2019 Credit Agreement also includes covenants and restrictions that limit, among other things, the Company’s ability to incur additional indebtedness, create liens upon any of its property, merge, consolidate or sell all or substantially all of its assets. The 2019 Credit Agreement also includes customary events of default which may result in acceleration of the payment of the outstanding balance. On April 8, 2020, the Company entered into the first amendment to the 2019 Credit Agreement (the “First Amendment”) to waive certain terms and financial covenants of the 2019 Credit Agreement through July 31, 2020. On May 8, 2020, the Company entered into the second amendment to the 2019 Credit Agreement (the “Second Amendment”), which superseded the First Amendment and provided certain revised terms and financial covenants through March 31, 2021. Subsequent to March 31, 2021, the original terms and financial covenants under the 2019 Credit Agreement resumed in effect. The Second Amendment required the Company to maintain certain minimum cash requirement and certain financial metrics at the end of each fiscal quarter through March 31, 2021. Under the terms of the Second Amendment, the Company was not permitted to exceed $55.0 million in its outstanding balance under the 2019 Revolving Facility, the applicable margin for Eurodollar rate was 4.5%, and the Company was restricted from pursuing certain activities such as incurring additional debt, stock repurchases, making acquisitions or declaring a dividend, until the Company was in compliance with the original covenants of the 2019 Credit Agreement. On November 3, 2020, the Company and its lenders entered into the Third Amendment to the 2019 Credit Agreement (the “Third Amendment”), to increase the sublimit for letters of credit to $20.0 million. On December 8, 2020, the Company and its lenders entered into the fourth amendment to the 2019 Credit Agreement (the “Fourth Amendment”), to waive and amend certain terms and financial covenants within the 2019 Credit Agreement through March 31, 2021. The Second Amendment provided for the Company to end the covenant Suspension Period early and revert to the covenants and interest rates per the original terms of the 2019 Credit Agreement dated August 9, 2019 by filing a Suspension Period Early Termination Notice and Covenant Certificate demonstrating compliance. For the twelve-month period ended March 31, 2021, the Company’s financial performance wa s in compliance with the original covenants defined in the 2019 Credit Agreement and , as such , the Company file d a Suspension Early Termination Notice and Covenant Certificate with the administration agent subsequent to fil ing the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2021. Returning to compliance with the covenants per the original terms of the 2019 Credit Agreement dated August 9, 2019 result ed in the Company’s Eurodollar loan spread decreas ing from 4.5 % during the suspension period to 2.75 % and unused facility commitment fee decreas ing from 0.4 % to 0.35 %, and the limitation on revolver borrowings being removed effective May 1, 2021 after filing of the certificate with the administrative agent. Financing costs incurred in connection with obtaining long-term financing are deferred and amortized over the term of the related indebtedness or credit agreement. During the year ended June 30, 2020, the Company incurred $10.5 million of deferred financing costs in conjunction with the 2019 Credit Agreement and $1.5 million of deferred financing costs from the amendments, a nd continues to amortize $1.6 million of debt issuance costs as of August 9, 2019 that were associated with the previous facility Amortization of deferred financing costs included in “Interest expense” in the accompanying condensed consolidated statements of operati ons totaled $0.7 million and $0.8 million for the three months ended December 31, 2021 and 2020 $1.5 During the fiscal year ended June 30, 2021, the Company repaid $55.0 million against its 2019 Revolving Facility’s outstanding balance of $55.0 million and had no remaining outstanding balance at December 31, 2021. The Company had $60.2 million of availability under the 2019 Revolving Facility as of December 31, 2021. During the six months ended December 31, 2021, the Company made an additional payment of $12.0 million against its term loan facility. The Company had $14.8 million of outstanding letters of credit as of December 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2021 | |
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 forecast, unless the Company gives notice of order cancellation outside of applicable component lead-times 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 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 reasonably possible and material and a reasonable estimate can be made, then the Company would make an accrual. 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. Litigation is unpredictable, and 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. 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. XR Communications, LLC d/b/a Vivato Technologies v. Extreme Networks, Inc. On April 19, 2017, XR Communications, LLC (“XR”) (d/b/a Vivato Technologies) filed a patent infringement lawsuit against the Company in the Central District of California. The operative Second Amended Complaint asserts infringement of certain U.S. Patent based on the Company’s manufacture, use, sale, offer for sale, and/or importation into the United States of certain access points and routers supporting multi-user, multiple-input, multiple-output technology. XR seeks unspecified damages, on-going royalties, pre- and post-judgment interest, and attorneys’ fees. T he Court has dismissed the case with prejudice. The deadline for XR to appeal the dismissal is February 3, 2022 . Orckit IP, LLC v. Extreme Networks, Inc., Extreme Networks Ireland Ltd., and Extreme Networks GmbH On February 1, 2018, Orckit IP, LLC (“Orckit”) filed a patent infringement lawsuit against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. The lawsuit alleges direct and indirect infringement of the German portion of a patent (“EP ‘364”) based on the offer, distribution, use, possession and/or importation into Germany of certain network switches that equipped with the ExtremeXOS operating system. Orckit is seeking injunctive relief, accounting, and an unspecified declaration of liability for damages and costs of the lawsuit. On January 28, 2020, the Court rendered a decision in the infringement case in favor of the Company. The matter is proceeding through the appellate process, and an oral hearing was held on October 21, 2021. The Court has appointed an expert to provide an opinion and a decision is pending. On April 23, 2019, Orckit filed an extension of the patent infringement complaint against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. With this extension, Orckit alleges infringement of the German portion of a second patent (“EP ‘077”) based on the offer, distribution, use, possession and/or importation into Germany of certain network switches that the Company no longer sells in Germany. Orckit is seeking injunctive relief, accounting and sales information, and a declaration of liability for damages as well as costs of the lawsuit. On October 13, 2020, the Court issued an infringement decision against the Company and granted to Orckit the right to enforce t he judgment against the Company, which Orckit has provided notification to the Company that it will enforce the judgment he matter is proceeding through the appellate process The Company filed a nullity action related to the EP ‘364 patent on May 3, 2018, and one related to the EP ‘077 patent on October 31, 2019, both in the Federal Patent Court in Munich. The court found the EP ‘364 patent to be valid and the Company has filed an appeal. The case filed to seek to invalidate the EP ‘077 patent is proceeding. SNMP Research, Inc. and SNMP Research International, Inc. v. Broadcom Inc., Brocade Communications Systems LLC, and Extreme Networks, Inc. On October 26, 2020, SNMP Research, Inc. and SNMP Research International, Inc. (collectively, “SNMP”) filed a lawsuit against the Company in the Eastern District of Tennessee for copyright infringement, alleging that the Company was not properly licensed to use its software. SNMP is seeking actual damages and profits attributed to the infringement, as well as equitable relief. The Company has filed a motion to dismiss and a motion to transfer the case to the Northern District of California. Both motions are pending. A trial date has been set for February 2023. Mala Technologies Ltd. v. Extreme Networks GmbH, Extreme Networks Ireland Ops Ltd., and Extreme Networks, Inc. On April 15, 2021, Mala Technologies Ltd. (“Mala”) filed a patent infringement lawsuit against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. The lawsuit alleges indirect infringement of the German portion of a patent (“EP ‘498”) based on the offer and sale in Germany of certain network switches equipped with the ExtremeXOS operating system. Mala is seeking injunctive relief, accounting, and an unspecified declaration of liability for damages and costs of the lawsuit 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 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Stockholders’ Rights Agreement On May 17, 2021, the Company entered into the Amended and Restated Tax Benefit Preservation Plan (the “2021 Tax Benefit Preservation Plan”), which amended and restated the Amended and Restated Rights Agreement between the Company and Computershare Shareholder Services LLC, as the rights agent. The 2021 Tax Benefit Preservation Plan was approved by stockholders of the Company at the annual meeting of stockholders on November 4, 2021. The 2021 Tax Benefit Preservation Plan governs the terms of each right (“Right”) that has been issued with respect to each share of common stock of Extreme Networks. Each Right initially represents the right to purchase one one-thousandth of a share of the Company’s Preferred Stock. The Company’s Board of Directors (the “Board”) adopted the 2021 Tax Benefit Preservation Plan to preserve the value of deferred tax assets, including net operating loss carry forwards of the Company, with respect to its ability to fully use its tax benefits to offset future income which may be limited if the Company experiences an “ownership change” for purposes of Section 382 of the Internal Revenue Code of 1986 as a result of ordinary buying and selling of shares of its common stock. Following its review of the terms of the plan, the Board decided it was necessary and in the best interests of the Company and its stockholders to enter into the 2021 Tax Benefit Preservation Plan. Equity Incentive Plan The Compensation Committee of the Board unanimously approved an amendment to the Extreme Networks, Inc. Amended and Restated 2013 Equity Incentive Plan (the “2013 Plan”) on August 11, 2021 to update tax withholding obligations. The Compensation Committee of the Board unanimously approved an amendment to the 2013 Plan on September 10, 2021 to increase the maximum number of available shares by 7.9 million shares, which amendment was approved by the stockholders at the Company’s annual meeting of stockholders held on November 4, 2021. Employee Stock Purchase Plan The Compensation Committee of the Board unanimously approved an amendment to the 2014 Employee Stock Purchase Plan (the “ESPP”) on September 9, 2021 to increase the maximum number of shares that will be available for sale thereunder by 7.5 million shares. The amendment was approved by the stockholders of the Company at the annual meeting of stockholders held on November 4, 2021. Common Stock Repurchases On November 2, 2018, the Company announced the Board had authorized management to repurchase up to $60.0 million of the Company’s common stock over a two-year During the three and six months ended December 31, 2021, the Company repurchased a total of 1,829,333 shares of its common stock on the open market at a total cost of $25.0 million with an average price of $13.65 per share. There were no shares repurchased during the three and six months ended December 31, 2020. As of December 31, 2021, approximately $30.0 million remains available for share repurchases under the program. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Dec. 31, 2021 | |
Share Based Compensation [Abstract] | |
Employee Benefit Plans | 11. Shares Reserved for Issuance The Company had the following reserved shares of common stock for future issuance as of the dates noted (in thousands): December 31, 2021 June 30, 2021 2013 Equity Incentive Plan shares available for grant 10,920 6,753 Employee stock options and awards outstanding 9,262 10,359 2014 Employee Stock Purchase Plan 10,924 4,414 Total shares reserved for issuance 31,106 21,526 Share-based Compensation Expense Share-based compensation expense recognized in the condensed consolidated financial statements by line-item caption is as follows (in thousands): Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Cost of product revenues $ 303 $ 314 $ 613 $ 572 Cost of service and subscription revenues 351 439 713 811 Research and development 2,664 2,694 5,122 4,966 Sales and marketing 3,860 3,239 7,435 5,886 General and administrative 4,155 3,409 7,894 6,162 Total share-based compensation expense $ 11,333 $ 10,095 $ 21,777 $ 18,397 Stock Options The following table summarizes stock option activity for the six months ended December 31, 2021 (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, 2021 1,645 $ 5.44 3.62 $ 9,404 Granted — — Exercised (356 ) 2.55 Cancelled — — Options outstanding at December 31, 2021 1,289 $ 6.24 3.89 $ 12,188 Vested and expected to vest at December 31, 2021 1,289 $ 6.24 3.89 $ 12,188 Exercisable at December 31, 2021 1,010 $ 6.12 3.68 $ 9,681 The fair value of each stock option grant under the 2013 Plan is estimated on the date of grant using the Black-Scholes-Merton option valuation model. 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. There were no stock options granted during the six months ended December 31, 2021 Stock Awards Stock awards may be granted under the 2013 Plan on terms approved by the Compensation Committee of the Board. Stock awards generally provide for the issuance of restricted stock units (“RSUs”) including performance-condition or market-condition RSUs which vest over a fixed period of time or based upon the satisfaction of certain performance criteria or market conditions. The Company recognizes compensation expense on the awards over the vesting period based on the awards’ fair value as of the date of grant. The Company does not estimate forfeitures, but accounts for them as incurred. The following table summarizes stock award activity for the six months ended December 31, 2021 (in thousands, except grant date fair value): Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Non-vested stock awards outstanding at June 30, 2021 8,714 $ 5.51 Granted 3,889 11.36 Released (4,353 ) 5.18 Cancelled (277 ) 6.47 Non-vested stock awards outstanding at December 31, 2021 7,973 $ 8.51 $ 125,178 Stock awards expected to vest at December 31, 2021 7,973 $ 8.51 $ 125,178 The RSU’s granted under the 2013 Plan vest over a period of time, generally one to three years, and are subject to participant's continued service to the Company . The stock awards granted during the six months ended December 31, 2021 included 1.0 million RSUs including the market condition awards discussed below to named executive officers and directors. Market Condition Awards During the six months ended December 31, 2021 and 2020, the Compensation Committee of the Board granted 0.7 million and 0.5 million RSUs, respectively, with vesting based on market conditions (“MSU”) to certain of the Company’s executive officers. These MSUs vest based on the Company’s total shareholder return (“TSR”) relative to the TSR of the Russell 2000 Index (“Index”). The MSU award represents the right to receive a target number of shares of common stock of up to 150% of the original grant. The MSUs vest based on the Company’s TSR relative to the TSR of the Index over performance periods of three years from the grant date, subject to the grantees’ continued service through the certification of performance. Level Relative TSR Shares Vested Below Threshold TSR is less than the Index by more than 37.5 percentage points 0% Threshold TSR is less than the Index by 37.5 percentage points 25% Target TSR equals the Index 100% Maximum TSR is greater than the Index by 25 percentage points or more 150% Total shareholder return is calculated based on the average closing price for the 30-trading days prior to the beginning and end of the performance periods. Performance is measured based on three periods, with the ability for up to one-third of target shares to vest after years one and two and the ability for up to the maximum of the full award to vest based on the full three-year TSR less any shares vested based on one- and two-year periods. Linear interpolation is used to determine the number of shares vested for achievement between target levels. The grant date fair value of each MSU was determined using the Monte Carlo simulation model. The weighted-average grant-date fair value of the MSUs granted during the six months ended December 31, 2021 was $12.69 per share. The assumptions used in the Monte Carlo simulation included the expected volatility of 66%, risk-free rate of 0.44%, no expected dividend yield, expected term of three years and possible future stock prices over the performance period based on the historical stock and market prices. The Company recognizes the expense related to these MSUs on a graded-vesting method over the estimated term. The weighted-average grant-date fair value of the MSUs granted during the six months ended December 31, 2020 was $5.32 per share. The assumptions used in the Monte Carlo simulation included the expected volatility of 69%, risk-free rate of 0.18%, no expected dividend yield, expected term of three years and possible future stock prices over the performance period based on the historical stock and market prices. Employee Stock Purchase Plan The fair value of each share purchase option under the ESPP is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The expected term of the ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock. There were 1.0 million and 1.5 million shares issued under the ESPP during the six months ended December 31, 2021 and 2020, respectively. The following assumptions were used to determine the grant-date fair values of the ESPP shares during the following periods: Employee Stock Purchase Plan Six Months Ended December 31, 2021 December 31, 2020 Expected life 0.5 years 0.5 years Risk-free interest rate 0.05 % 0.12 % Volatility 52 % 119 % Dividend yield — % — % The weighted-average grant-date |
Information about Segments and
Information about Segments and Geographic Areas | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Information about Segments and Geographic Areas | 1 2 . Information about Segments and Geographic Areas The Company operates in one segment, the development and marketing of network infrastructure equipment and related software. The Company conducts business globally and is managed geographically. Revenues are attributed to a geographical area based on the billing address of 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’s chief operating decision maker, who is its CEO, reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. See Note 3, Revenues, for the Company’s revenues by geographic regions and channel based on the customer’s billing address. The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands): December 31, 2021 June 30, 2021 Americas $ 154,720 $ 151,839 EMEA 20,155 25,940 APAC 12,162 13,560 Total long-lived assets $ 187,037 $ 191,339 |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | 13. Derivatives and Hedging Interest Rate Swaps The Company is exposed to interest rate risk on its debt. The Company enters into interest rate swap contracts to effectively manage the impact of fluctuations of interest rate changes on its outstanding debt which has floating interest rate. The Company does not enter into derivative contracts for trading or speculative purposes. At the inception date of the derivative contract, the Company performs an assessment of these contracts and has designated these contracts as cash flow hedges. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement without exchange of the underlying notional amount. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, by performing qualitative and quantitative assessment, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in other comprehensive income (loss). When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. In accordance with ASC 815 “Derivatives and Hedging,” the Company may prospectively discontinue the hedge accounting for an existing hedge if the applicable criteria are no longer met, the derivative instrument expires, is sold, terminated or exercised or if the Company removes the designation of the respective cash flow hedge. In those circumstances, the net gain or loss remains in accumulated other comprehensive loss and is reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings, unless the forecasted transaction is no longer probable in which case the net gain or loss is reclassified into earnings immediately. During fiscal 2020, the Company entered into multiple interest rate swap contracts, designated as cash flow hedges, to hedge the variability of cash flows in interest payments associated with the Company’s various tranches of floating-rate debt. As of December 31, 2021 and December 31, 2020, the total notional amount of these interest rate swaps was $200.0 million and had maturity dates through April 2023 Foreign Exchange Forward Contracts The Company uses derivative financial instruments to manage exposures to foreign currency that may or may not be designated as hedging instruments. The Company’s objective for holding derivatives is to use the most effective methods to minimize the impact of these exposures. The Company does not enter into derivatives for speculative or trading purposes. The Company enters into foreign exchange forward contracts primarily 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 . For foreign exchange forward contracts not designated as hedging instruments, 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. As of December 31, 2021 and 2020, foreign exchange forward contracts not designated as hedging instruments had the total notional principal amount of $20.4 and $22.7 million, respectively. These contracts have maturities of 40 days or less. The net gains and losses recorded in the condensed consolidated statement of operations from these transactions during the three and six months ended December 31, 2021 were losses of less than $0.1 million and $0.2 million, respectively, and during the three and six months ended December 31, 2020, there were net gains of $0.4 million and $0.5 million, respectively. Changes in the fair value of these foreign exchange forward contracts are offset largely by remeasurement of the underlying assets and liabilities For foreign exchange forward contracts designated as hedging instruments, gains and losses arising from these contracts are recorded as a component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheets. The hedging gains and losses in accumulated other comprehensive income are subsequently reclassified to expenses, as applicable, in the condensed consolidated statements of operations in the same period in which the underlying transactions affect our earnings. As of December 31, 2021 foreign exchange forward contracts designated as hedging instruments had the notional amount of $5.7 million. These contracts have maturities of less than twelve months. As of December 31, 2021 , these contracts had unrealized losses of $0.3 million which are recorded in accumulated other comprehensive income (loss) with the associated liability in other accrued liabilities in the accompanying consolidated balance sheets. There were no foreign exchange forward contracts at December 31, 2020 that were designated as hedging instruments. The Company recognized total foreign currency losses of less than $0.1 million and $1.3 million for the three months ended December 31, 2021 and 2020, respectively, related to the change in fair value of foreign currency denominated assets and liabilities. The Company recognized total foreign currency gains of $0.3 million and a loss of $2.4 million for the six months ended December 31, 2021 and 2020, respectively, related to the change in fair value of foreign currency denominated assets and liabilities. |
Restructuring and Related Charg
Restructuring and Related Charges | 6 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Related Charges | 14. Restructuring and Related Charges The Company recorded $0.3 million and $0.6 million The Company recorded $0.7 million and $1.7 million of restructuring charges, net of reversals and impairments during the three and six months ended December 31, 2020, respectively. Total restructuring charges included severance, benefits, and equipment relocation charges of $0.4 million and $1.1 million, as well as facility related charges of $0.3 million and $0.6 million for the three and six months ended December 31, 2020, respectively. Severance and benefit restructuring charges consisted primarily of additional employee severance and benefit expenses incurred under the 2020 Plan to reduce operating costs and enhance financial flexibility as a result of disruptions caused by the COVID-19 global pandemic. With the reduction and realignment of the headcount under 2020 Plan, the Company relocated certain of its lab test equipment to third-party consulting companies. The Company incurred $9.2 million charges under the 2020 Plan through December 31, 2020. The facility restructuring charges included additional facilities expenses related to previously impaired facilities. Restructuring liabilities related to severance, benefits, and equipment relocation obligations are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets. The following table summarizes the activity related to the severance, benefits, and equipment relocation liabilities during the three and six months ended December 31, 2021 (in thousands): Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Severance and Other Severance and Other Balance at beginning of period $ 93 $ 302 $ 271 $ 2,219 Period charges 4 475 12 1,247 Period reversals — (78 ) (30 ) (128 ) Period payments — (518 ) (156 ) (3,157 ) Balance at end of period $ 97 $ 181 $ 97 $ 181 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes For the three months ended December 31, 2021 and 2020, the Company recorded an income tax provision of $1.8 million. For the six months ended December 31, 2021 and 2020, the Company recorded an income tax provision of $3.9 million and $3.1 million, respectively. The income tax provisions for the three and six months ended December 31, 2021 and 2020, consisted of (1) taxes on the income of the Company’s foreign subsidiaries, (2) foreign withholding taxes, (3) state taxes in jurisdictions where the Company has no remaining state net operating losses (“NOLs”) and (4) 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 wireless local area network business from Zebra Technologies Corporation, the Campus Fabric Business from Avaya and the Data Center Business from Brocade. The interim income tax provisions for the three and six months ended December 31, 2021 and 2020 were calculated using the discrete effective tax rate method as allowed by ASC 740-270-30-18, “Income Taxes – Interim Reporting.” The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. The Company believes that, at this time, the use of this discrete method is more appropriate than the annual effective tax rate method as (i) the estimated annual effective tax rate method is not reliable due to the high degree of uncertainty in estimating annual pretax earnings on a jurisdictional basis and (ii) the Company’s ongoing assessment that the recoverability of certain U.S. and Irish deferred tax assets is not more likely than not. The Company has provided a full valuation allowance against all of its U.S. federal and state deferred tax assets as well as a portion of the deferred tax assets in Ireland. A valuation allowance is determined by assessing both negative and positive evidence to determine whether it is “more likely than not” that 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 and the cyclical nature of its business represent sufficient negative evidence to require full valuation allowances against its U.S. federal and state net deferred tax assets as well as a portion of the deferred tax assets in Ireland. These valuation allowances 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. On September 14, 2021, the Company completed its acquisition of Ipanema. This acquisition is treated as a non-taxable stock acquisition and, therefore, Extreme will have carryover tax basis in the assets and liabilities acquired. The Company had $19.1 million of unrecognized tax benefits as of December 31, 2021. If fully recognized in the future, $0.5 million would impact the effective tax rate and $18.6 million would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance with no impact to the effective tax rate. The Company does not anticipate any events to occur during the next twelve months that would materially reduce the unrealized tax benefit as currently stated in the Company’s condensed consolidated balance sheet s . 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 accompanying 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 NOLs and the Company’s state income tax returns are subject to examination for fiscal years 2000 forward due to NOLs. The Company is not currently under audit in any material jurisdictions . |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 16. Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Dilutive income per share is calculated by dividing net income by the weighted-average number of shares of common stock used in the basic net income (loss) per share calculation plus the dilutive effect of shares subject to repurchase, options and unvested RSUs. 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 Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net income (loss) $ 13,341 $ (3,050 ) $ 26,037 $ (11,862 ) Weighted-average shares used in per share calculation - basic 129,403 123,264 128,863 122,485 Options to purchase common stock 702 — 677 — Restricted stock units 3,340 — 3,795 — Employee Stock Purchase Plan shares 176 — 88 — Weighted-average shares used in per share calculation - diluted 133,621 123,264 133,423 122,485 Net income (loss) per share - basic and diluted Net income (loss) per share - basic $ 0.10 $ (0.02 ) $ 0.20 $ (0.10 ) Net income (loss) per share - diluted $ 0.10 $ (0.02 ) $ 0.20 $ (0.10 ) 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 Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Options to purchase common stock — 2,156 — 2,345 Restricted stock units 7 9,553 8 9,003 Employee Stock Purchase Plan shares 764 1,324 620 1,040 Total shares excluded 771 13,033 628 12,388 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2022” or “2022” represent the fiscal year ending June 30, 2022. All references herein to “fiscal 2021” or “2021” represent the fiscal year ended June 30, 2021. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed 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 functional currency environment, all assets and liabilities are translated to United States Dollars at current month end rates of exchange and revenues 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. Actual results could differ from these estimates. |
Recently Issued and Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“the FASB”) issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes (Topic 740 Income Taxes a material impact on the Company’s financial statements upon adoption Recently Issued and Adopted Accounting Pronouncements Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with Customers |
Revenue Recognition | Revenue Recognition 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 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 other observable inputs. The Company’s performance obligations are satisfied at a point in time or over time as the customer receives and consumes the benefits provided. Substantially all of the Company’s product sales revenues are recognized at a point in time. Substantially all of the Company’s service, subscription, and SaaS revenues are recognized over time. For revenues recognized over time, the Company uses an input measure, days elapsed, to measure progress. On December 31, 2021, the Company had $373.2 million of remaining performance obligations, which are primarily comprised of deferred maintenance and SaaS revenues. The Company expects to recognize approximately 38% of its deferred revenue as revenue in fiscal 2022, an additional 34% in fiscal 2023 and 28% of the balance thereafter. Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue in the condensed consolidated balance sheets. Services provided under renewable support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are either billed fully at the inception of contract or 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 condensed consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. Revenue recognized for the three months ended December 31, 2021 and 2020 that was included in the deferred revenue balance at the beginning of each period was $ 81.9 million and $ 68.8 million, respectively . Revenue recognized for the six months ended December 31, 2021 and 2020 that was included in the deferred revenue balance at the beginning of each period was $ 132.5 million and $ 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. Management expects that commission fees paid to sales representatives as a result of obtaining service contracts and contract renewals are recoverable and therefore the Company’s condensed consolidated balance sheets included capitalized balances in the amount of $ 14.2 million and $13.1 million at December 31, 2021 and June 30, 2021, 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” in the accompanying condensed consolidated statements of operations. Amortization recognized during the three months ended December 31, 2021 and 2020, was $1.8 million and $1.2 million, respectively. Amortization recognized during the six months ended December 31, 2021 and 2020, was $3.6 million and $2.5 million, respectively. Estimated Variable Consideration. 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. Revenues by Category The Company operates in three geographic regions: 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, China, South Asia and Japan. The following table sets forth the Company’s revenues disaggregated by sales channel and geographic region based on the billing addresses of its customers (in thousands): Three Months Ended December 31, 2021 December 31, 2020 Distributor Direct Total Distributor Direct Total Americas: United States $ 68,565 $ 68,585 $ 137,150 $ 46,506 $ 58,744 $ 105,250 Other 3,865 4,955 8,820 8,950 3,648 12,598 Total Americas 72,430 73,540 145,970 55,456 62,392 117,848 EMEA 68,934 42,128 111,062 69,602 34,220 103,822 APAC 5,034 18,867 23,901 2,793 17,665 20,458 Total net revenues $ 146,398 $ 134,535 $ 280,933 $ 127,851 $ 114,277 $ 242,128 Six Months Ended December 31, 2021 December 31, 2020 Distributor Direct Total Distributor Direct Total Americas: United States $ 124,633 $ 135,916 $ 260,549 $ 107,176 $ 116,091 $ 223,267 Other 11,664 8,322 19,986 17,191 7,738 24,929 Total Americas 136,297 144,238 280,535 124,367 123,829 248,196 EMEA 146,832 77,859 224,691 117,131 67,796 184,927 APAC 9,369 34,022 43,391 7,844 36,963 44,807 Total net revenues $ 292,498 $ 256,119 $ 548,617 $ 249,342 $ 228,588 $ 477,930 For the six months ended December 31, 2021, the Company generated 10% of its revenues from the Netherlands. For the three months ended December 31, 2020, the Company generated 11% of its revenues from the Netherlands and 11% of its revenues from Germany. For the six months ended December 31, 2020, the Company generated 10% of its revenues from the Netherlands and 10% of its revenues from Germany. No other foreign country accounted for 10% |
Inventories | Inventories The Company values its inventory at the 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 adjusts the carrying value of its inventory 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 previously written down or obsolete inventory subsequently sold has not had a material impact on gross margin for any of the periods presented. Inventories consist of the following (in thousands): December 31, 2021 June 30, 2021 Finished goods $ 30,342 $ 27,901 Raw materials 6,838 4,984 Total inventories $ 37,180 $ 32,885 |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consist of the following (in thousands): December 31, 2021 June 30, 2021 Computers and equipment $ 76,308 $ 75,866 Purchased software 44,305 40,037 Office equipment, furniture and fixtures 10,242 10,201 Leasehold improvements 52,984 53,329 Total property and equipment 183,839 179,433 Less: accumulated depreciation and amortization (131,722 ) (124,429 ) Property and equipment, net $ 52,117 $ 55,004 |
Deferred Revenue | Deferred Revenue Deferred revenue represents amounts for deferred maintenance, support, SaaS, and other deferred revenue including professional services and training when the revenue recognition criteria have not been met. |
Guarantees and Product Warranties | Guarantees and Product Warranties The majority of the Company’s hardware products are shipped with either a one-year The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Balance beginning of period $ 10,780 $ 13,484 $ 11,623 $ 14,035 Warranties assumed due to acquisition — — 41 — New warranties issued 3,822 3,056 6,532 6,135 Warranty expenditures (3,465 ) (3,467 ) (7,059 ) (7,097 ) Balance end of period $ 11,137 $ 13,073 $ 11,137 $ 13,073 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 for intellectual property infringement and certain other losses. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results or financial position. |
Concentrations | Concentrations The Company may be subject to concentration of credit risk as a result of certain financial instruments consisting of accounts receivable. The Company does not invest an amount exceeding 10% of its combined cash 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. |
Earnings Per Share | Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Dilutive income per share is calculated by dividing net income by the weighted-average number of shares of common stock used in the basic net income (loss) per share calculation plus the dilutive effect of shares subject to repurchase, options and unvested RSUs. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenues Disaggregated by Sales Channel and Geographic Region | The Company operates in three geographic regions: 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, China, South Asia and Japan. The following table sets forth the Company’s revenues disaggregated by sales channel and geographic region based on the billing addresses of its customers (in thousands): Three Months Ended December 31, 2021 December 31, 2020 Distributor Direct Total Distributor Direct Total Americas: United States $ 68,565 $ 68,585 $ 137,150 $ 46,506 $ 58,744 $ 105,250 Other 3,865 4,955 8,820 8,950 3,648 12,598 Total Americas 72,430 73,540 145,970 55,456 62,392 117,848 EMEA 68,934 42,128 111,062 69,602 34,220 103,822 APAC 5,034 18,867 23,901 2,793 17,665 20,458 Total net revenues $ 146,398 $ 134,535 $ 280,933 $ 127,851 $ 114,277 $ 242,128 Six Months Ended December 31, 2021 December 31, 2020 Distributor Direct Total Distributor Direct Total Americas: United States $ 124,633 $ 135,916 $ 260,549 $ 107,176 $ 116,091 $ 223,267 Other 11,664 8,322 19,986 17,191 7,738 24,929 Total Americas 136,297 144,238 280,535 124,367 123,829 248,196 EMEA 146,832 77,859 224,691 117,131 67,796 184,927 APAC 9,369 34,022 43,391 7,844 36,963 44,807 Total net revenues $ 292,498 $ 256,119 $ 548,617 $ 249,342 $ 228,588 $ 477,930 For the six months ended December 31, 2021, the Company generated 10% of its revenues from the Netherlands. For the three months ended December 31, 2020, the Company generated 11% of its revenues from the Netherlands and 11% of its revenues from Germany. For the six months ended December 31, 2020, the Company generated 10% of its revenues from the Netherlands and 10% of its revenues from Germany. No other foreign country accounted for 10% |
Schedule of Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance | The following table sets forth customers accounting for 10% or more of the Company’s net revenues for the periods indicated below: Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 TD Synnex Corporation 21% 21% 22% 24% Jenne Corporation 18% 11% 16% 13% Westcon Group Inc. 11% 19% 15% 16% The following table sets forth customers accounting for 10% or more of the Company’s accounts receivable balance: December 31, 2021 June 30, 2021 TD Synnex Corporation 10% 19% Jenne Corporation * 24% * Less than 10% of accounts receivable. |
Business Combination (Tables)
Business Combination (Tables) - Ipanema | 6 Months Ended |
Dec. 31, 2021 | |
Summary of Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation is set forth in the table below and reflects estimated fair values (in thousands): Preliminary Allocation as of September 14, 2021 Adjustments Allocation as of December 31, 2021 Cash and cash equivalents $ 1,364 $ — $ 1,364 Accounts receivable, net 1,440 (6 ) a 1,434 Inventories 337 (63 ) a 274 Prepaid expenses and other current assets 1,841 (1,082 ) a 759 Property and equipment 46 — 46 Other assets 21 — 21 Accounts payable (1,220 ) 244 a (976 ) Accrued compensation and benefits (2,304 ) 638 a (1,666 ) Accrued warranty (41 ) — (41 ) Other accrued liabilities (71 ) (51 ) b (122 ) Deferred revenue (2,758 ) (7,118 ) b (9,876 ) Other liabilities (723 ) (723 ) Net tangible liabilities (2,068 ) (7,438 ) (9,506 ) Identifiable intangible assets 16,300 — 16,300 Goodwill 56,649 7,438 a,b 64,087 Total intangible assets acquired 72,949 7,438 80,387 Total net assets acquired $ 70,881 $ — $ 70,881 |
Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition | The changes made during the period in the table above include: a) measurement period adjustments attributable to the Company’s review of the additional information being obtained on preacquisition assets and liabilities, b) the increase in deferred revenue (and the corresponding increase to Goodwill by the same amount) is the result of the adoption of ASU 2021-08 in the period ended December 31, 2021. The following table presents details of the identifiable intangible assets acquired as part of the acquisition (in thousands): Intangible Assets Weighted Average Estimated Useful Life (in years) Amount Developed technologies 6 $ 14,500 Customer relationships 4 1,800 Total identifiable intangible assets $ 16,300 |
Summary of Unaudited Pro Forma Financial Information | The following table summarizes the unaudited pro forma financial information (in thousands, except per share amounts): Three months ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net revenues $ 280,438 $ 248,474 $ 551,743 $ 488,828 Net income (loss) $ 15,562 $ (5,439 ) $ 29,631 $ (16,877 ) Net income (loss) per share - basic $ 0.12 $ (0.04 ) $ 0.23 $ (0.14 ) Net income (loss) per share - diluted $ 0.12 $ (0.04 ) $ 0.22 $ (0.14 ) Shares used in per share calculation - basic 129,403 123,264 128,863 122,485 Shares used in per share calculation - diluted 133,621 123,264 133,423 122,485 |
Balance Sheet Accounts (Tables)
Balance Sheet Accounts (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Components of Inventories | Inventories consist of the following (in thousands): December 31, 2021 June 30, 2021 Finished goods $ 30,342 $ 27,901 Raw materials 6,838 4,984 Total inventories $ 37,180 $ 32,885 |
Components of Property and Equipment | Property and equipment, net consist of the following (in thousands): December 31, 2021 June 30, 2021 Computers and equipment $ 76,308 $ 75,866 Purchased software 44,305 40,037 Office equipment, furniture and fixtures 10,242 10,201 Leasehold improvements 52,984 53,329 Total property and equipment 183,839 179,433 Less: accumulated depreciation and amortization (131,722 ) (124,429 ) Property and equipment, net $ 52,117 $ 55,004 |
Summary of Product Warranty Liability Activity | The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Balance beginning of period $ 10,780 $ 13,484 $ 11,623 $ 14,035 Warranties assumed due to acquisition — — 41 — New warranties issued 3,822 3,056 6,532 6,135 Warranty expenditures (3,465 ) (3,467 ) (7,059 ) (7,097 ) Balance end of period $ 11,137 $ 13,073 $ 11,137 $ 13,073 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value for Financial Assets and Liabilities Measured on Recurring Basis | The following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and June 30, 2021 (in thousands). December 31, 2021 Level 1 Level 2 Level 3 Total Assets Foreign currency derivatives $ — $ 168 $ — $ 168 Total assets measured at fair value $ — $ 168 $ — $ 168 Liabilities Foreign currency derivatives $ — $ 274 $ — $ 274 Interest rate swaps — 306 — 306 Acquisition-related contingent consideration obligations — — 208 208 Total liabilities measured at fair value $ — $ 580 $ 208 $ 788 June 30, 2021 Level 1 Level 2 Level 3 Total Liabilities Foreign currency derivatives $ — $ 560 $ — $ 560 Interest rate swaps — 1,133 — 1,133 Acquisition-related contingent consideration obligations — — 913 913 Total liabilities measured at fair value $ — $ 1,693 $ 913 $ 2,606 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Gross and Net Intangible Asset Balances | The following tables summarize the components of gross and net intangible asset balances (dollars in thousands): Weighted Average Remaining Amortization Gross Carrying Accumulated Net Carrying Period Amount Amortization Amount December 31, 2021 Developed technology 3.3 years $ 170,600 $ 139,284 $ 31,316 Customer relationships 4.4 years 64,839 55,706 9,133 Backlog — years 400 400 — Trade names 0.6 years 10,700 10,560 140 License agreements 4.9 years 2,445 2,089 356 Total intangibles, net $ 248,984 $ 208,039 $ 40,945 Weighted Average Remaining Amortization Gross Accumulated Net Carrying Period Amount Amortization Amount June 30, 2021 Developed technology 1.8 years $ 156,100 $ 129,861 $ 26,239 Customer relationships 4.8 years 63,039 54,204 8,835 Backlog — years 400 400 — Trade names 0.7 years 10,700 10,128 572 License agreements 5.4 years 2,445 2,053 392 Total intangibles, net $ 232,684 $ 196,646 $ 36,038 |
Summary of Amortization Expense of Intangibles | The amortization expense of intangibles for the periods presented is summarized below (in thousands): Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Amortization of intangibles in “Total cost of revenues” $ 4,149 $ 6,649 $ 9,435 $ 13,348 Amortization of intangibles in “Operations” 804 1,506 1,958 3,298 Total amortization expense $ 4,953 $ 8,155 $ 11,393 $ 16,646 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company’s debt is comprised of the following (in thousands): December 31, 2021 June 30, 2021 Current portion of long-term debt: Term Loan $ 30,875 $ 26,125 Less: unamortized debt issuance costs (2,333 ) (2,404 ) Current portion of long-term debt $ 28,542 $ 23,721 Long-term debt, less current portion: Term Loan $ 292,000 $ 320,625 Less: unamortized debt issuance costs (3,542 ) (4,760 ) Total long-term debt, less current portion 288,458 315,865 Total debt $ 317,000 $ 339,586 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Share Based Compensation [Abstract] | |
Common Stock Reserved for Future Issuance | The Company had the following reserved shares of common stock for future issuance as of the dates noted (in thousands): December 31, 2021 June 30, 2021 2013 Equity Incentive Plan shares available for grant 10,920 6,753 Employee stock options and awards outstanding 9,262 10,359 2014 Employee Stock Purchase Plan 10,924 4,414 Total shares reserved for issuance 31,106 21,526 |
Schedule of Recognized Share-based Compensation Expense | Share-based compensation expense recognized in the condensed consolidated financial statements by line-item caption is as follows (in thousands): Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Cost of product revenues $ 303 $ 314 $ 613 $ 572 Cost of service and subscription revenues 351 439 713 811 Research and development 2,664 2,694 5,122 4,966 Sales and marketing 3,860 3,239 7,435 5,886 General and administrative 4,155 3,409 7,894 6,162 Total share-based compensation expense $ 11,333 $ 10,095 $ 21,777 $ 18,397 |
Summary of Stock Option Activity | The following table summarizes stock option activity for the six months ended December 31, 2021 (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, 2021 1,645 $ 5.44 3.62 $ 9,404 Granted — — Exercised (356 ) 2.55 Cancelled — — Options outstanding at December 31, 2021 1,289 $ 6.24 3.89 $ 12,188 Vested and expected to vest at December 31, 2021 1,289 $ 6.24 3.89 $ 12,188 Exercisable at December 31, 2021 1,010 $ 6.12 3.68 $ 9,681 |
Summary of Stock Award Activity | The following table summarizes stock award activity for the six months ended December 31, 2021 (in thousands, except grant date fair value): Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Non-vested stock awards outstanding at June 30, 2021 8,714 $ 5.51 Granted 3,889 11.36 Released (4,353 ) 5.18 Cancelled (277 ) 6.47 Non-vested stock awards outstanding at December 31, 2021 7,973 $ 8.51 $ 125,178 Stock awards expected to vest at December 31, 2021 7,973 $ 8.51 $ 125,178 |
Schedule of Awards Performance Thresholds and Shares Expected to Vest (TSR PSUs) | The MSU award represents the right to receive a target number of shares of common stock of up to 150% of the original grant. The MSUs vest based on the Company’s TSR relative to the TSR of the Index over performance periods of three years from the grant date, subject to the grantees’ continued service through the certification of performance. Level Relative TSR Shares Vested Below Threshold TSR is less than the Index by more than 37.5 percentage points 0% Threshold TSR is less than the Index by 37.5 percentage points 25% Target TSR equals the Index 100% Maximum TSR is greater than the Index by 25 percentage points or more 150% |
Schedule of Fair Value Assumptions for Employee Stock Purchase Plan Awards | The following assumptions were used to determine the grant-date fair values of the ESPP shares during the following periods: Employee Stock Purchase Plan Six Months Ended December 31, 2021 December 31, 2020 Expected life 0.5 years 0.5 years Risk-free interest rate 0.05 % 0.12 % Volatility 52 % 119 % Dividend yield — % — % |
Information about Segments an_2
Information about Segments and Geographic Areas (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Long Lived Assets by Segment | The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands): December 31, 2021 June 30, 2021 Americas $ 154,720 $ 151,839 EMEA 20,155 25,940 APAC 12,162 13,560 Total long-lived assets $ 187,037 $ 191,339 |
Restructuring and Related Cha_2
Restructuring and Related Charges (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Liabilities | Restructuring liabilities related to severance, benefits, and equipment relocation obligations are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets. The following table summarizes the activity related to the severance, benefits, and equipment relocation liabilities during the three and six months ended December 31, 2021 (in thousands): Three Months Ended Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Severance and Other Severance and Other Balance at beginning of period $ 93 $ 302 $ 271 $ 2,219 Period charges 4 475 12 1,247 Period reversals — (78 ) (30 ) (128 ) Period payments — (518 ) (156 ) (3,157 ) Balance at end of period $ 97 $ 181 $ 97 $ 181 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
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 Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net income (loss) $ 13,341 $ (3,050 ) $ 26,037 $ (11,862 ) Weighted-average shares used in per share calculation - basic 129,403 123,264 128,863 122,485 Options to purchase common stock 702 — 677 — Restricted stock units 3,340 — 3,795 — Employee Stock Purchase Plan shares 176 — 88 — Weighted-average shares used in per share calculation - diluted 133,621 123,264 133,423 122,485 Net income (loss) per share - basic and diluted Net income (loss) per share - basic $ 0.10 $ (0.02 ) $ 0.20 $ (0.10 ) Net income (loss) per share - diluted $ 0.10 $ (0.02 ) $ 0.20 $ (0.10 ) |
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 Six Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Options to purchase common stock — 2,156 — 2,345 Restricted stock units 7 9,553 8 9,003 Employee Stock Purchase Plan shares 764 1,324 620 1,040 Total shares excluded 771 13,033 628 12,388 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narratives) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | ||
Deferred revenue | $ 17,785 | $ 17,949 |
Ipanema | ||
Significant Accounting Policies [Line Items] | ||
Deferred revenue | $ 7,100 |
Revenues (Narratives) (Details)
Revenues (Narratives) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($)Distribution_Channels | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | |
Disaggregation Of Revenue [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. | ||||
Remaining revenue performance obligations | $ 373.2 | $ 373.2 | |||
Revenue recognized for deferred revenue balance | $ 81.9 | $ 68.8 | $ 132.5 | $ 120.5 | |
Geographic Concentration Risk | Revenue | NETHERLANDS | |||||
Disaggregation Of Revenue [Line Items] | |||||
Concentration risk (percent) | 11.00% | 10.00% | 10.00% | ||
Geographic Concentration Risk | Revenue | Other Foreign Country | Maximum | |||||
Disaggregation Of Revenue [Line Items] | |||||
Concentration risk (percent) | 10.00% | 10.00% | 10.00% | 10.00% | |
Geographic Concentration Risk | Revenue | GERMANY | |||||
Disaggregation Of Revenue [Line Items] | |||||
Concentration risk (percent) | 11.00% | 10.00% | |||
Commission Fees | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue, practical expedient, incremental cost of obtaining contract [true false] | true | ||||
Contract costs capitalized, balances amount | $ 14.2 | $ 14.2 | $ 13.1 | ||
Contract costs capitalized, amortization period | 3 years | 3 years | |||
Contract costs capitalized, amortization method | straight-line basis | ||||
Contract costs capitalized, amortization expense | $ 1.8 | $ 1.2 | $ 3.6 | $ 2.5 |
Revenues (Narratives) (Details
Revenues (Narratives) (Details 1) | 6 Months Ended |
Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Percentage of remaining performance obligations expected to recognize, period | 6 months |
Percentage of remaining performance obligations expected to recognize | 38.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Percentage of remaining performance obligations expected to recognize, period | 1 year |
Percentage of remaining performance obligations expected to recognize | 34.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Percentage of remaining performance obligations expected to recognize, period | 1 year |
Percentage of remaining performance obligations expected to recognize, description | thereafter |
Percentage of remaining performance obligations expected to recognize | 28.00% |
Revenues (Schedule of Revenues
Revenues (Schedule of Revenues Disaggregated by Sales Channel and Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | $ 280,933 | $ 242,128 | $ 548,617 | $ 477,930 |
Distributor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 146,398 | 127,851 | 292,498 | 249,342 |
Direct | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 134,535 | 114,277 | 256,119 | 228,588 |
United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 137,150 | 105,250 | 260,549 | 223,267 |
United States | Distributor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 68,565 | 46,506 | 124,633 | 107,176 |
United States | Direct | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 68,585 | 58,744 | 135,916 | 116,091 |
Other Americas | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 8,820 | 12,598 | 19,986 | 24,929 |
Other Americas | Distributor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 3,865 | 8,950 | 11,664 | 17,191 |
Other Americas | Direct | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 4,955 | 3,648 | 8,322 | 7,738 |
Total Americas | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 145,970 | 117,848 | 280,535 | 248,196 |
Total Americas | Distributor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 72,430 | 55,456 | 136,297 | 124,367 |
Total Americas | Direct | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 73,540 | 62,392 | 144,238 | 123,829 |
EMEA | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 111,062 | 103,822 | 224,691 | 184,927 |
EMEA | Distributor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 68,934 | 69,602 | 146,832 | 117,131 |
EMEA | Direct | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 42,128 | 34,220 | 77,859 | 67,796 |
APAC | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 23,901 | 20,458 | 43,391 | 44,807 |
APAC | Distributor | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | 5,034 | 2,793 | 9,369 | 7,844 |
APAC | Direct | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenues | $ 18,867 | $ 17,665 | $ 34,022 | $ 36,963 |
Revenues (Schedule of Customers
Revenues (Schedule of Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance) (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
TD Synnex Corporation | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (percent) | 21.00% | 21.00% | 22.00% | 24.00% | |
TD Synnex Corporation | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (percent) | 10.00% | 19.00% | |||
Westcon Group Inc. | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (percent) | 11.00% | 19.00% | 15.00% | 16.00% | |
Jenne Corporation | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (percent) | 18.00% | 11.00% | 16.00% | 13.00% | |
Jenne Corporation | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (percent) | 24.00% |
Business Combination (Narrative
Business Combination (Narratives) (Details) - USD ($) $ in Thousands | Sep. 14, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||
Business Combination Acquisition Related Costs | $ 2,113 | $ 3,623 | $ 1,975 | |
Ipanema | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, cash consideration | $ 70,900 | |||
Business acquisition, date of acquisition | Sep. 14, 2021 | |||
Business Combination Acquisition Related Costs | $ 2,100 | $ 3,600 |
Business Combination (Summary o
Business Combination (Summary of Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 14, 2021 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 395,246 | $ 331,159 | ||
Ipanema | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 1,364 | $ 1,364 | ||
Accounts receivable, net | 1,434 | 1,440 | ||
Inventories | 274 | 337 | ||
Prepaid expenses and other current assets | 759 | 1,841 | ||
Property and equipment | 46 | 46 | ||
Other assets | 21 | 21 | ||
Accounts payable | (976) | (1,220) | ||
Accrued compensation and benefits | (1,666) | (2,304) | ||
Accrued warranty | (41) | (41) | ||
Other accrued liabilities | (122) | (71) | ||
Deferred revenue | (9,876) | (2,758) | ||
Other liabilities | (723) | (723) | ||
Net tangible liabilities | (9,506) | (2,068) | ||
Identifiable intangible assets | 16,300 | 16,300 | ||
Goodwill | 64,087 | 56,649 | ||
Total intangible assets acquired | 80,387 | 72,949 | ||
Total net assets acquired | 70,881 | $ 70,881 | ||
Ipanema | Adjustments [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable, net | [1] | (6) | ||
Inventories | [1] | (63) | ||
Prepaid expenses and other current assets | [1] | (1,082) | ||
Accounts payable | [1] | 244 | ||
Accrued compensation and benefits | [1] | 638 | ||
Other accrued liabilities | [2] | (51) | ||
Deferred revenue | [2] | (7,118) | ||
Net tangible liabilities | (7,438) | |||
Goodwill | [1],[2] | 7,438 | ||
Total intangible assets acquired | $ 7,438 | |||
[1] | a) measurement period adjustments attributable to the Company’s review of the additional information being obtained on preacquisition assets and liabilities | |||
[2] | b) the increase in deferred revenue (and the corresponding increase to Goodwill by the same amount) is the result of the adoption of ASU 2021-08 in the period ended December 31, 2021. |
Business Combination (Schedule
Business Combination (Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition) (Details) - Ipanema $ in Thousands | 6 Months Ended |
Dec. 31, 2021USD ($) | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Amount | $ 16,300 |
Developed Technologies [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Estimated Useful Life (in years) | 6 years |
Amount | $ 14,500 |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Estimated Useful Life (in years) | 4 years |
Amount | $ 1,800 |
Business Combination (Summary_2
Business Combination (Summary of Unaudited Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition Pro Forma Information [Abstract] | ||||
Net revenues | $ 280,438 | $ 248,474 | $ 551,743 | $ 488,828 |
Net income (loss) | $ 15,562 | $ (5,439) | $ 29,631 | $ (16,877) |
Net income (loss) per share - basic | $ 0.12 | $ (0.04) | $ 0.23 | $ (0.14) |
Net income (loss) per share - diluted | $ 0.12 | $ (0.04) | $ 0.22 | $ (0.14) |
Shares used in per share calculation - basic | 129,403 | 123,264 | 128,863 | 122,485 |
Shares used in per share calculation - diluted | 133,621 | 123,264 | 133,423 | 122,485 |
Balance Sheet Accounts (Compone
Balance Sheet Accounts (Components of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Finished goods | $ 30,342 | $ 27,901 |
Raw materials | 6,838 | 4,984 |
Total inventories | $ 37,180 | $ 32,885 |
Balance Sheet Accounts (Compo_2
Balance Sheet Accounts (Components of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 183,839 | $ 179,433 |
Less: accumulated depreciation and amortization | (131,722) | (124,429) |
Property and equipment, net | 52,117 | 55,004 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 76,308 | 75,866 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 44,305 | 40,037 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,242 | 10,201 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 52,984 | $ 53,329 |
Balance Sheet Accounts (Narrati
Balance Sheet Accounts (Narratives) (Details) | 6 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Standard hardware warranty period (in months) | 1 year |
Standard software warranty period (in days) | 90 days |
Maximum investment in one obligor or maker (percent) | 10.00% |
Balance Sheet Accounts (Summary
Balance Sheet Accounts (Summary of Product Warranty Liability Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance beginning of period | $ 10,780 | $ 13,484 | $ 11,623 | $ 14,035 |
Warranties assumed due to acquisition | 41 | |||
New warranties issued | 3,822 | 3,056 | 6,532 | 6,135 |
Warranty expenditures | (3,465) | (3,467) | (7,059) | (7,097) |
Balance end of period | $ 11,137 | $ 13,073 | $ 11,137 | $ 13,073 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value for Financial Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Assets | ||
Foreign currency derivatives | $ 168 | |
Total assets measured at fair value | 168 | |
Liabilities | ||
Foreign currency derivatives | 274 | $ 560 |
Interest rate swaps | 306 | 1,133 |
Acquisition-related contingent consideration obligations | 208 | 913 |
Total liabilities measured at fair value | 788 | 2,606 |
Level 2 | ||
Assets | ||
Foreign currency derivatives | 168 | |
Total assets measured at fair value | 168 | |
Liabilities | ||
Foreign currency derivatives | 274 | 560 |
Interest rate swaps | 306 | 1,133 |
Total liabilities measured at fair value | 580 | 1,693 |
Level 3 | ||
Liabilities | ||
Acquisition-related contingent consideration obligations | 208 | 913 |
Total liabilities measured at fair value | $ 208 | $ 913 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narratives) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Forward Foreign Currency Contracts | |||||
Assets/Liabilities | |||||
Notional principal amount of forward foreign exchange contracts | $ 5,700,000 | $ 5,700,000 | $ 21,800,000 | ||
Unrealized Gain (Loss) on Derivatives | (300,000) | (200,000) | |||
Interest rate swap contracts | |||||
Assets/Liabilities | |||||
Notional principal amount of forward foreign exchange contracts | 200,000,000 | 200,000,000 | 200,000,000 | ||
Other Comprehensive Income (Loss) | Interest rate swap contracts | |||||
Assets/Liabilities | |||||
Unrealized loss on interest rate cash flow hedges | (300,000) | (1,100,000) | |||
Not Designated as Hedging Instrument | Forward Foreign Currency Contracts | |||||
Assets/Liabilities | |||||
Notional principal amount of forward foreign exchange contracts | 20,400,000 | $ 20,400,000 | 23,000,000 | ||
Maximum maturities for contracts | 40 days | ||||
Not Designated as Hedging Instrument | Forward Foreign Currency Contracts | |||||
Assets/Liabilities | |||||
Notional principal amount of forward foreign exchange contracts | 20,400,000 | $ 22,700,000 | $ 20,400,000 | $ 22,700,000 | |
Maximum maturities for contracts | 40 days | ||||
Gain (Loss) on Sale of Derivatives | (100,000) | 400,000 | $ (200,000) | 500,000 | |
Level 2 Assets and Liabilities | |||||
Assets/Liabilities | |||||
Long-term debt, fair value | 322,900,000 | 322,900,000 | 346,700,000 | ||
Transfers of assets between Level 1 and Level 2 | 0 | 0 | 0 | 0 | |
Transfers of liabilities between Level 1 and Level 2 | 0 | 0 | 0 | 0 | |
Level 3 Assets and Liabilities | |||||
Assets/Liabilities | |||||
Acquisition-related contingent consideration obligations | 200,000 | 200,000 | $ 900,000 | ||
Transfers of assets between Level 2 and Level 3 | 0 | 0 | 0 | 0 | |
Transfers of liabilities between Level 2 and Level 3 | 0 | 0 | 0 | 0 | |
Fair value assets impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Intangible Assets (Components o
Intangible Assets (Components of Gross and Net Intangible Asset Balances) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 248,984 | $ 232,684 |
Accumulated Amortization | 208,039 | 196,646 |
Net Carrying Amount | $ 40,945 | $ 36,038 |
Developed Technologies [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 3 years 3 months 18 days | 1 year 9 months 18 days |
Gross Carrying Amount | $ 170,600 | $ 156,100 |
Accumulated Amortization | 139,284 | 129,861 |
Net Carrying Amount | $ 31,316 | $ 26,239 |
Customer Relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 4 years 4 months 24 days | 4 years 9 months 18 days |
Gross Carrying Amount | $ 64,839 | $ 63,039 |
Accumulated Amortization | 55,706 | 54,204 |
Net Carrying Amount | $ 9,133 | $ 8,835 |
Backlogs | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 0 years | 0 years |
Gross Carrying Amount | $ 400 | $ 400 |
Accumulated Amortization | $ 400 | $ 400 |
Trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 7 months 6 days | 8 months 12 days |
Gross Carrying Amount | $ 10,700 | $ 10,700 |
Accumulated Amortization | 10,560 | 10,128 |
Net Carrying Amount | $ 140 | $ 572 |
License agreements | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 4 years 10 months 24 days | 5 years 4 months 24 days |
Gross Carrying Amount | $ 2,445 | $ 2,445 |
Accumulated Amortization | 2,089 | 2,053 |
Net Carrying Amount | $ 356 | $ 392 |
Intangible Assets (Summary of A
Intangible Assets (Summary of Amortization Expense of Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangibles in “Total cost of revenues” | $ 4,149 | $ 6,649 | $ 9,435 | $ 13,348 |
Type Of Cost Good Or Service Extensible List | Product | Product | ||
Amortization of intangibles in “Operations” | 804 | 1,506 | $ 1,958 | $ 3,298 |
Total amortization expense | $ 4,953 | $ 8,155 | $ 11,393 | $ 16,646 |
Debt (Components of Debt) (Deta
Debt (Components of Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Line Of Credit Facility [Line Items] | ||
Less: unamortized debt issuance costs | $ (2,333) | $ (2,404) |
Current portion of long-term debt | 28,542 | 23,721 |
Less: unamortized debt issuance costs | (3,542) | (4,760) |
Long-term debt, less current portion | 288,458 | 315,865 |
Total debt | 317,000 | 339,586 |
Term Loan | ||
Line Of Credit Facility [Line Items] | ||
Current portion of long-term debt | 30,875 | 26,125 |
Less: unamortized debt issuance costs | (2,333) | (2,404) |
Long-term debt, less current portion | 292,000 | 320,625 |
Less: unamortized debt issuance costs | $ (3,542) | $ (4,760) |
Debt (Narratives) (Details)
Debt (Narratives) (Details) - USD ($) | Aug. 09, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | May 08, 2021 | Nov. 03, 2020 | Jun. 30, 2020 | May 08, 2020 |
Line Of Credit Facility [Line Items] | ||||||||||
Outstanding letters of credit | $ 14,800,000 | $ 14,800,000 | ||||||||
Interest Expense | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Amortization of deferred financing costs | 700,000 | $ 800,000 | $ 1,500,000 | $ 1,500,000 | ||||||
2019 Credit Agreement | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Deferred financing cost | $ 10,500,000 | |||||||||
Amortization of deferred financing costs | $ 1,600,000 | |||||||||
Debt instrument interest rate | 1.86% | 4.65% | ||||||||
2019 Credit Agreement | First Amendment | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Amendment start date | Apr. 8, 2020 | |||||||||
2019 Credit Agreement | Second Amendment | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Amendment start date | May 8, 2020 | |||||||||
2019 Credit Agreement | Third Amendment | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Amendment start date | Nov. 3, 2020 | |||||||||
Line of credit sublimit for letters of credit | $ 20,000,000 | |||||||||
2019 Credit Agreement | Fourth Amendment | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Amendment start date | Dec. 8, 2020 | |||||||||
2019 Credit Agreement | Term Loan | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Credit Facility, term | 5 years | |||||||||
Borrowing capacity from Credit Agreement | $ 380,000,000 | |||||||||
Repayments of Lines of Credit | $ 12,000,000 | |||||||||
2019 Credit Agreement | Revolving Facility | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Credit Facility, term | 5 years | |||||||||
Borrowing capacity from Credit Agreement | $ 75,000,000 | |||||||||
Repayments of Lines of Credit | $ 55,000,000 | |||||||||
Line of credit facility remaining outstanding balance | 0 | 0 | ||||||||
Borrowing capacity from Credit Agreement | $ 60,200,000 | $ 60,200,000 | ||||||||
2019 Credit Agreement | Revolving Facility | Second Amendment | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Borrowing capacity from Credit Agreement | $ 55,000,000 | $ 55,000,000 | ||||||||
2019 Credit Agreement | Revolving Facility | Applicable Margin for Eurodollar | Second Amendment | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Euro dollar rate | 4.50% | |||||||||
Initial Term Loan | Revolving Facility | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Base rate | 0.00% | |||||||||
Commitment fee | 0.25% | |||||||||
Amendments | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Deferred financing cost | $ 1,500,000 | |||||||||
Maximum | 2019 Credit Agreement | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Additional incremental loan facility that may be requested | $ 100,000,000 | |||||||||
Maximum | 2019 Credit Agreement | Applicable Margin for Eurodollar | Second Amendment | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Commitment fee | 0.40% | |||||||||
Suspension period rate | 4.50% | |||||||||
Maximum | Initial Term Loan | Applicable Margin for Eurodollar | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Borrowings, interest rate | 3.50% | |||||||||
Maximum | Initial Term Loan | Applicable Margin for Base Rate | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Borrowings, interest rate | 2.50% | |||||||||
Maximum | Initial Term Loan | Revolving Facility | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Commitment fee | 0.40% | |||||||||
Minimum | 2019 Credit Agreement | Applicable Margin for Eurodollar | Second Amendment | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Commitment fee | 0.35% | |||||||||
Ongoing rate | 2.75% | |||||||||
Minimum | Initial Term Loan | Applicable Margin for Eurodollar | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Borrowings, interest rate | 1.25% | |||||||||
Minimum | Initial Term Loan | Applicable Margin for Base Rate | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Borrowings, interest rate | 0.25% | |||||||||
Minimum | Initial Term Loan | Revolving Facility | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Commitment fee | 0.25% |
Commitments and Contingencies (
Commitments and Contingencies (Narratives) (Details) | Dec. 31, 2021USD ($) |
Inventory Purchase Commitments | |
Commitments And Contingencies [Line Items] | |
Non-cancelable purchase commitments | $ 53,200,000 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) - USD ($) | Nov. 04, 2021 | Feb. 05, 2020 | Nov. 02, 2018 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||||||
Stock repurchase, authorized amount | $ 100,000,000 | $ 60,000,000 | ||||
Stock repurchase program, period in force | 2 years | |||||
Maximum amount of common stock may be repurchased in calendar year | 30,000,000 | |||||
Stock repurchase, increase in authorized amount | $ 40,000,000 | |||||
Stock repurchase, extended period | 3 years | |||||
Stock repurchase, extended period, effective date | Feb. 5, 2020 | |||||
Total number of shares repurchased | 1,829,333,000 | 1,829,333,000 | 0 | |||
Stock repurchased during period, value | $ 25,000,000 | $ 25,000,000 | ||||
Stock repurchased average price per share | $ 13.65 | $ 13.65 | ||||
Share repurchased outstanding amount | $ 30,000,000 | $ 30,000,000 | ||||
2013 Equity Incentive Plan | ||||||
Class Of Stock [Line Items] | ||||||
Maximum number of shares available for sale under equity incentive plan | 7,900,000 | |||||
2014 Employee Stock Purchase Plan | ||||||
Class Of Stock [Line Items] | ||||||
Maximum number of shares available for sale under stock purchase plan | 7,500,000 |
Employee Benefit Plans (Common
Employee Benefit Plans (Common Stock Reserved for Future Issuance) (Details) - shares shares in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 31,106 | 21,526 |
2014 Employee Stock Purchase Plan | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 10,924 | 4,414 |
Employee Stock Options and Awards Outstanding | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 9,262 | 10,359 |
2013 Equity Incentive Plan Shares Available for Grant | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 10,920 | 6,753 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Recognized Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 11,333 | $ 10,095 | $ 21,777 | $ 18,397 |
Cost of Product Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 303 | 314 | 613 | 572 |
Cost of Service and Subscription Revenues | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 351 | 439 | 713 | 811 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 2,664 | 2,694 | 5,122 | 4,966 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 3,860 | 3,239 | 7,435 | 5,886 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 4,155 | $ 3,409 | $ 7,894 | $ 6,162 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Jun. 30, 2021 | |
Number of Shares | ||
Options outstanding at June 30, 2021 | 1,645 | |
Exercised | (356) | |
Options outstanding at December 31, 2021 | 1,289 | 1,645 |
Vested and expected to vest at December 31, 2021 | 1,289 | |
Exercisable at December 31, 2021 | 1,010 | |
Weighted-Average Exercise Price Per Share | ||
Options outstanding at June 30, 2021 | $ 5.44 | |
Exercised | 2.55 | |
Options outstanding at December 31, 2021 | 6.24 | $ 5.44 |
Vested and expected to vest at December 31, 2021 | 6.24 | |
Exercisable at December 31, 2021 | $ 6.12 | |
Weighted-Average Remaining Contractual Term | ||
Options outstanding | 3 years 10 months 20 days | 3 years 7 months 13 days |
Vested and expected to vest at December 31, 2021 | 3 years 10 months 20 days | |
Exercisable at December 31, 2021 | 3 years 8 months 4 days | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 12,188 | $ 9,404 |
Vested and expected to vest at December 31, 2021 | 12,188 | |
Exercisable at December 31, 2021 | $ 9,681 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narratives) (Details) - $ / shares | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted | 3,889,000 | |
Granted | $ 11.36 | |
Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting percentage | The RSU’s granted under the 2013 Plan vest over a period of time, generally one to three years, and are subject to participant's continued service to the Company. | |
MSU | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Calculation of total shareholder return (TSR), description | Total shareholder return is calculated based on the average closing price for the 30-trading days prior to the beginning and end of the performance periods. Performance is measured based on three periods, with the ability for up to one-third of target shares to vest after years one and two and the ability for up to the maximum of the full award to vest based on the full three-year TSR less any shares vested based on one- and two-year periods. | |
Granted | $ 12.69 | $ 5.32 |
Volatility | 66.00% | 69.00% |
Risk-free interest rate | 0.44% | 0.18% |
Dividend yield | 0.00% | 0.00% |
Expected life | 3 years | 3 years |
Executive Officers and Directors | Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted | 1,000,000 | |
Executive Officer Member | MSU | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted | 700,000 | 500,000 |
Shares vested, Maximum | 150.00% | |
2013 Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted | 0 | 0 |
2014 Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued under stock purchase plan | 1,000,000 | 1,500,000 |
Weighted-average grant-date fair value of options issued (in dollars per share) | $ 3.18 | $ 2.23 |
Employee Benefit Plans (Summa_2
Employee Benefit Plans (Summary of Stock Award Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Number of Shares | |
Non-vested stock awards outstanding at June 30, 2021 | shares | 8,714 |
Granted | shares | 3,889 |
Released | shares | (4,353) |
Cancelled | shares | (277) |
Non-vested stock awards outstanding at December 31, 2021 | shares | 7,973 |
Stock awards expected to vest at December 31, 2021 | shares | 7,973 |
Weighted-Average Grant Date Fair Value | |
Non-vested stock awards outstanding at June 30, 2021 | $ / shares | $ 5.51 |
Granted | $ / shares | 11.36 |
Released | $ / shares | 5.18 |
Cancelled | $ / shares | 6.47 |
Non-vested stock awards outstanding at December 31, 2021 | $ / shares | 8.51 |
Stock awards expected to vest at December 31, 2021 | $ / shares | $ 8.51 |
Aggregate Fair Market Value | |
Non-vested stock awards outstanding at December 31, 2021 | $ | $ 125,178 |
Stock awards expected to vest at December 31, 2021 | $ | $ 125,178 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of PSUs Earned and Vested Based on Total Stockholder Return (TSR PSUs)) (Details) - Executive Officer Member - TSR PSU | 6 Months Ended |
Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Relative TSR, Below Threshold | TSR is less than the Index by more than 37.5 percentage points |
Relative TSR, Threshold | TSR is less than the Index by 37.5 percentage points |
Relative TSR, Target | TSR equals the Index |
Relative TSR, Maximum | TSR is greater than the Index by 25 percentage points or more |
Shares vested, Below Threshold | 0.00% |
Shares vested, Threshold | 25.00% |
Shares vested, Target | 100.00% |
Shares vested, Maximum | 150.00% |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Fair Value Assumptions for Employee Stock Purchase Plan Awards) (Details) - Employee Stock Purchase Plan | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | 0.05% | 0.12% |
Volatility | 52.00% | 119.00% |
Information about Segments an_3
Information about Segments and Geographic Areas (Narratives) (Details) | 6 Months Ended |
Dec. 31, 2021SegmentGeographic_Area | |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 1 |
Number of geographic regions | Geographic_Area | 3 |
Information about Segments an_4
Information about Segments and Geographic Areas (Schedule of Long Lived Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 187,037 | $ 191,339 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 154,720 | 151,839 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 20,155 | 25,940 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 12,162 | $ 13,560 |
Derivatives and Hedging (Narrat
Derivatives and Hedging (Narratives) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020Contract | |
Derivative [Line Items] | ||||||
Foreign currency transactions realized gains (losses) | $ (0.1) | $ (1.3) | $ 0.3 | $ (2.4) | ||
Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Notional principal amount of forward foreign exchange contracts | 200 | 200 | $ 200 | $ 200 | ||
Maturity date | Apr. 30, 2023 | Apr. 30, 2023 | ||||
Unrealized loss on interest rate cash flow hedges | $ (0.3) | $ (1.7) | ||||
Estimated interest expense over next twelve months | 0.4 | |||||
Forward Foreign Currency Contracts | ||||||
Derivative [Line Items] | ||||||
Notional principal amount of forward foreign exchange contracts | 5.7 | 5.7 | $ 21.8 | |||
Unrealized losses on forward foreign currency contracts | 0.3 | $ 0.2 | ||||
Forward Foreign Currency Contracts | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional principal amount of forward foreign exchange contracts | 20.4 | 22.7 | $ 20.4 | 22.7 | ||
Maximum maturities for contracts | 40 days | |||||
Net gains (losses) on forward foreign currency contracts | (0.1) | $ 0.4 | $ (0.2) | $ 0.5 | ||
Forward Foreign Currency Contracts | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional principal amount of forward foreign exchange contracts | $ 5.7 | $ 5.7 | ||||
Maximum maturities for contracts | 12 months | |||||
Number of derivative financial instruments | Contract | 0 | |||||
Unrealized losses on forward foreign currency contracts | $ 0.3 |
Restructuring and Related Cha_3
Restructuring and Related Charges (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges, net of reversals and impairment | $ 0.3 | $ 0.6 | ||||
Facility related charges | $ 0.3 | $ 0.6 | ||||
Reduction-in-force | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Reduction in force or severance and benefits | $ 9.6 | |||||
Prior Year Reduction-in-force Plans | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charges, net of reversals and impairment | $ 0.7 | $ 1.7 | ||||
Reduction in force or severance and benefits | $ 9.2 | |||||
Charges for impairment of right-of-use assets | 0.3 | 0.6 | ||||
Severance and benefits charges | $ 0.4 | $ 1.1 |
Restructuring and Related Cha_4
Restructuring and Related Charges (Restructuring Liabilities) (Details) - Severance And Other - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | $ 93 | $ 302 | $ 271 | $ 2,219 |
Period charges | 4 | 475 | 12 | 1,247 |
Period reversals | 0 | (78) | (30) | (128) |
Period payments | 0 | (518) | (156) | (3,157) |
Ending balance | $ 97 | $ 181 | $ 97 | $ 181 |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ 1,793 | $ 1,823 | $ 3,862 | $ 3,143 |
Unrecognized tax benefits | 19,100 | 19,100 | ||
Unrecognized tax benefits that would affect the effective tax rate if recognized | 500 | 500 | ||
Unrecognized tax benefit future impact if recognized | $ 18,600 | $ 18,600 |
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 | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income (loss) | $ 13,341 | $ (3,050) | $ 26,037 | $ (11,862) |
Weighted-average shares used in per share calculation - basic | 129,403 | 123,264 | 128,863 | 122,485 |
Weighted-average shares used in per share calculation - diluted | 133,621 | 123,264 | 133,423 | 122,485 |
Net income (loss) per share - basic and diluted | ||||
Net income (loss) per share - basic | $ 0.10 | $ (0.02) | $ 0.20 | $ (0.10) |
Net income (loss) per share - diluted | $ 0.10 | $ (0.02) | $ 0.20 | $ (0.10) |
Options to purchase common stock | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Options to purchase common stock | 702 | 677 | ||
Restricted stock units | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Options to purchase common stock | 3,340 | 3,795 | ||
Employee Stock Purchase Plan [Member] | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Options to purchase common stock | 176 | 88 |
Net Income (Loss) Per Share (_2
Net Income (Loss) Per Share (Schedule of Anti-Dilutive Shares Excluded from Earnings Per Share Calculation) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of EPS | 771 | 13,033 | 628 | 12,388 |
Options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of EPS | 2,156 | 2,345 | ||
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of EPS | 7 | 9,553 | 8 | 9,003 |
Employee Stock Purchase Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of EPS | 764 | 1,324 | 620 | 1,040 |