Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | ACCURAY INCORPORATED | |
Entity Central Index Key | 0001138723 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2022 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Trading Symbol | ARAY | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 93,778,769 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity File Number | 001-33301 | |
Entity Tax Identification Number | 20-8370041 | |
Entity Address, Address Line One | 1310 Chesapeake Terrace | |
Entity Address, City or Town | Sunnyvale | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94089 | |
City Area Code | 408 | |
Local Phone Number | 716-4600 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 81,007 | $ 88,737 | |
Restricted cash | 203 | 204 | |
Accounts receivable, net of allowance for credit losses of $848 and $1,000 as of September 30, 2022 and June 30, 2022, respectively (a) | [1] | 77,029 | 94,442 |
Inventories | 152,624 | 142,254 | |
Prepaid expenses and other current assets (b) | [2] | 24,241 | 23,794 |
Deferred cost of revenue | 161 | 1,459 | |
Total current assets | 335,265 | 350,890 | |
Property and equipment, net | 10,938 | 12,685 | |
Investment in joint venture | 12,776 | 13,879 | |
Operating lease right-of-use assets, net | 26,789 | 16,798 | |
Goodwill | 57,658 | 57,840 | |
Intangible assets, net | 214 | 250 | |
Long-term restricted cash | 1,180 | 1,213 | |
Other assets | 21,529 | 19,294 | |
Total assets | 466,349 | 472,849 | |
Current liabilities: | |||
Accounts payable | 32,945 | 31,337 | |
Accrued compensation | 30,890 | 29,441 | |
Operating lease liabilities, current | 4,864 | 8,567 | |
Other accrued liabilities | 30,201 | 30,285 | |
Customer advances | 17,983 | 25,290 | |
Deferred revenue | 69,948 | 75,375 | |
Short-term debt | 5,705 | 8,563 | |
Total current liabilities | 192,536 | 208,858 | |
Long-term liabilities: | |||
Operating lease liabilities, non-current | 24,123 | 10,453 | |
Long-term other liabilities | 3,626 | 3,748 | |
Deferred revenue, non-current | 28,453 | 24,694 | |
Long-term debt | 170,620 | 171,907 | |
Total liabilities | 419,358 | 419,660 | |
Commitments and contingencies (Note 9) | |||
Stockholders' equity: | |||
Common stock, $0.001 par value; authorized: 200,000,000 shares as of September 30, 2022 and June 30, 2022, respectively; issued and outstanding: 93,778,769 and 93,499,500 shares at September 30, 2022 and June 30, 2022, respectively | 94 | 94 | |
Additional paid-in-capital | 546,117 | 543,211 | |
Accumulated other comprehensive income (loss) | (1,249) | 2,406 | |
Accumulated deficit | (497,971) | (492,522) | |
Total stockholders' equity | 46,991 | 53,189 | |
Total liabilities and stockholders' equity | $ 466,349 | $ 472,849 | |
[1] Includes trade receivable from the China joint venture, an equity method invest ment of $ 18,591 and $ 24,828 at September 30, 2022 and June 30, 2022 , respectively. See Note 14. Includes other receivable from the China joint venture, an equity method investment of $ 779 and $ 861 at September 30, 2022 and June 30, 2022 , respectively. |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Accounts receivable, allowance for credit losses (in dollars) | $ 848 | $ 1,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 93,778,769 | 93,499,500 |
Common stock, outstanding shares | 93,778,769 | 93,499,500 |
Accounts receivable from joint venture | $ 18,591 | $ 24,828 |
Prepaid Expenses and Other Current Assets | ||
Accounts receivable from joint venture | $ 779 | $ 861 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Net revenue: | |||
Total net revenue | $ 96,493 | $ 107,442 | |
Cost of revenue: | |||
Total cost of revenue | [1] | 61,896 | 67,918 |
Gross profit | 34,597 | 39,524 | |
Operating expenses: | |||
Research and development | [2] | 14,092 | 14,382 |
Selling and marketing | 10,795 | 11,271 | |
General and administrative | 11,892 | 11,460 | |
Total operating expenses | 36,779 | 37,113 | |
Income (loss) from operations | (2,182) | 2,411 | |
Loss on equity method investment, net | (368) | (340) | |
Other expense, net | (2,558) | (2,668) | |
Loss before provision for income taxes | (5,108) | (597) | |
Provision for income taxes | 341 | 431 | |
Net loss | $ (5,449) | $ (1,028) | |
Net loss per share - basic | $ (0.06) | $ (0.01) | |
Net loss per share - diluted | $ (0.06) | $ (0.01) | |
Weighted average common shares used in computing net loss per share: | |||
Basic | 93,529 | 90,838 | |
Diluted | 93,529 | 90,838 | |
Net loss | $ (5,449) | $ (1,028) | |
Foreign currency translation adjustment | (3,655) | 231 | |
Comprehensive loss | (9,104) | (797) | |
Products | |||
Net revenue: | |||
Total net revenue | [3] | 44,623 | 52,759 |
Cost of revenue: | |||
Total cost of revenue | 28,850 | 31,509 | |
Services | |||
Net revenue: | |||
Total net revenue | [4] | 51,870 | 54,683 |
Cost of revenue: | |||
Total cost of revenue | $ 33,046 | $ 36,409 | |
[1] Includes cost of revenue from sales to the China joint venture, an equity method investment, of $ 5,907 and $ 8,044 during the three months ended September 30, 2022 and September 30, 2021, respectively . Includes chargeback to the China joint venture, an equity method investment, related to a research and development project of $ 779 and $ 579 during the three months ended September 30, 2022 and September 30, 2021, respectively . Includes sales to the China joint venture, an equity method investment, of $ 8,869 and $ 5,920 during the three months ended September 30, 2022 and September 30, 2021, respectively. See Note 14. Includes sales to the China joint venture, an equity method investment, of $ 2,957 and $ 3,638 during the three months ended September 30, 2022 and September 30, 2021, respectively. See Note 14. |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Total net revenue | $ 96,493 | $ 107,442 | |
Total cost of revenue | [1] | 61,896 | 67,918 |
Research and development | [2] | 14,092 | 14,382 |
Products | |||
Total net revenue | [3] | 44,623 | 52,759 |
Total cost of revenue | 28,850 | 31,509 | |
Services | |||
Total net revenue | [4] | 51,870 | 54,683 |
Total cost of revenue | 33,046 | 36,409 | |
Revenue from Joint Venture | |||
Total cost of revenue | 5,907 | 8,044 | |
Research and development | 779 | 579 | |
Revenue from Joint Venture | Products | |||
Total net revenue | 8,869 | 5,920 | |
Revenue from Joint Venture | Services | |||
Total net revenue | $ 2,957 | $ 3,638 | |
[1] Includes cost of revenue from sales to the China joint venture, an equity method investment, of $ 5,907 and $ 8,044 during the three months ended September 30, 2022 and September 30, 2021, respectively . Includes chargeback to the China joint venture, an equity method investment, related to a research and development project of $ 779 and $ 579 during the three months ended September 30, 2022 and September 30, 2021, respectively . Includes sales to the China joint venture, an equity method investment, of $ 8,869 and $ 5,920 during the three months ended September 30, 2022 and September 30, 2021, respectively. See Note 14. Includes sales to the China joint venture, an equity method investment, of $ 2,957 and $ 3,638 during the three months ended September 30, 2022 and September 30, 2021, respectively. See Note 14. |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative adjustment due to adoption of ASU No. 2020-06 | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative adjustment due to adoption of ASU No. 2020-06 | Accumulated Other Comprehensive Income / (Loss) | Accumulated Deficit | Accumulated Deficit Cumulative adjustment due to adoption of ASU No. 2020-06 |
Balance at Jun. 30, 2021 | $ 68,840 | $ (24,784) | $ 91 | $ 554,680 | $ (25,633) | $ 2,093 | $ (488,024) | $ 849 |
Balance (in shares) at Jun. 30, 2021 | 90,822 | |||||||
Issuance of restricted stock (in shares) | 97 | |||||||
Share-based compensation | 2,506 | 2,506 | ||||||
Net loss | (1,028) | (1,028) | ||||||
Foreign currency translation adjustment | 231 | 231 | ||||||
Balance at Sep. 30, 2021 | 45,765 | $ 91 | 531,553 | 2,324 | (488,203) | |||
Balance (in shares) at Sep. 30, 2021 | 90,919 | |||||||
Balance at Jun. 30, 2022 | $ 53,189 | $ 94 | 543,211 | 2,406 | (492,522) | |||
Balance (in shares) at Jun. 30, 2022 | 93,499,500 | 93,500 | ||||||
Issuance of restricted stock (in shares) | 279 | |||||||
Share-based compensation | $ 2,906 | 2,906 | 0 | |||||
Share-based compensation (in shares) | 0 | |||||||
Net loss | (5,449) | (5,449) | ||||||
Foreign currency translation adjustment | (3,655) | (3,655) | ||||||
Balance at Sep. 30, 2022 | $ 46,991 | $ 94 | $ 546,117 | $ (1,249) | $ (497,971) | |||
Balance (in shares) at Sep. 30, 2022 | 93,778,769 | 93,779 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (5,449) | $ (1,028) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,176 | 1,419 |
Share-based compensation | 2,916 | 2,516 |
Amortization of debt issuance costs | 219 | 156 |
Provision (reversal of provision) for credit losses | (23) | 303 |
Provision for write-down of inventories | 769 | 1,007 |
Loss on disposal of property and equipment | 2 | 22 |
Loss on equity method investment | 368 | 340 |
Deferral of equity method investment intra-entity profit margin from sales | 39 | 1,738 |
Changes in assets and liabilities: | ||
Accounts receivable | 15,466 | (9,178) |
Inventories | (12,355) | (2,093) |
Prepaid expenses and other assets | (2,183) | (1,487) |
Deferred cost of revenue | 1,298 | 516 |
Accounts payable | 2,371 | 3,575 |
Operating lease liabilities, net of operating lease right-of-use assets | (25) | (217) |
Accrued liabilities | 1,851 | (2,302) |
Customer advances | (6,874) | (1,935) |
Deferred revenues | 480 | (1,952) |
Net cash provided by (used in) operating activities | 46 | (8,600) |
Cash flows from investing activities | ||
Purchases of property and equipment | (1,272) | (1,456) |
Net cash used in investing activities | (1,272) | (1,456) |
Cash flows from financing activities | ||
Paydown under Term Loan Facility | (1,500) | (1,000) |
Repayments under the Notes | (2,865) | 0 |
Net cash used in financing activities | (4,365) | (1,000) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,173) | (654) |
Net decrease in cash, cash equivalents and restricted cash | (7,764) | (11,710) |
Cash, cash equivalents and restricted cash at beginning of period | 90,154 | 118,201 |
Cash, cash equivalents and restricted cash at end of period | 82,390 | 106,491 |
Supplemental disclosures of cash flow information: | ||
Reclassification of equity component of convertible notes into liabilities upon adoption of ASU 2020-06 | $ 0 | $ 25,633 |
The Company and its Significant
The Company and its Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and its Significant Accounting Policies | Note 1. The Company and its Significant Accounting Policies The Company Accuray Incorporated (together with its subsidiaries, the “Company” or “Accuray”) designs, develops and sells advanced radiosurgery and radiation therapy systems for the treatment of tumors throughout the body. The Company is incorporated in Delaware and has its principal place of business in Sunnyvale, California. The Company has primary offices in the United States, Switzerland, China, Hong Kong and Japan and conducts its business worldwide. Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of the periods presented. The results for the three months ended September 30, 2022, are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2023, or for any other future interim period or fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the fiscal year ended June 30, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 17, 2022. Risks and Uncertainties The ongoing COVID-19 pandemic has created significant global economic uncertainty, adversely impacted the business of the Company's customers, partners and vendors, contributed to supply chain and labor issues, and has impacted its business and results of operations in the past and could further impact its results of operations and cash flows in the future. The Company is also subject to risks and uncertainties caused by events with significant macroeconomic impacts, including, but not limited to, the Russian invasion of Ukraine, inflation, actions taken to counter inflation and foreign currency exchange rate fluctuations. These conditions have created and may continue to create significant disruptions with respect to demand for the Company's products and services; the operating procedures and workflow of its customers, particularly hospitals; its ability to continue to manufacture its products; and the reliability of its supply chain, which have impacted and could continue to impact its revenue, expenses and operating results. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company. Key estimates and assumptions made by the Company relate to revenue recognition and the assessment of stand-alone selling price, assessment of recoverability of goodwill, valuation of our equity method investment CNNC Accuray (Tianjin) Medical Technology Co. Ltd., the Company’s joint venture in China (the “JV”) , valuation of inventories, annual performance related bonuses, allowance for credit losses and loss contingencies. Actual results could differ materially from those estimates. Significant Accounting Policies There have been no changes in the Company’s significant accounting policies during the three months ended September 30, 2022, compared to the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended June 30, 2022 . |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Accounting Pronouncement Not Yet Effective In March 2020, the FASB issued an update (ASU 2020-04) establishing Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company’s Term Loan Facility and Revolving Credit Facility applies Eurodollar rate LIBOR to the variable component of the interest rate, or if a Benchmark transition event, or an early opt-in election, as applicable occurred a transition to the use of the Secured Overnight Financing Rate ("SOFR") to replace such rate. This accounting standard update was effective upon issuance and may be applied prospectively through December 31, 2022. In October 2022, the Company will begin to use the SOFR to calculate the variable component of the interest rate for its Term Loan Facility and Revolving Credit Facility. The change to SOFR will not have a material impact on the Company's financial statements. |
Revenue
Revenue | 3 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3. Revenue Contract Balances The timing of revenue recognition, billings, and cash collections results in trade receivables, unbilled receivables, and deferred revenues on the unaudited condensed consolidated balance sheets. The Company may offer longer or extended payments of more than one year for qualified customers in some circumstances. At times, revenue recognition occurs before the billing, resulting in an unbilled receivable, which represents a contract asset. The contract asset is a component of accounts receivable and other assets for the current and non-current portions, respectively. When the Company receives advances or deposits from customers before revenue is recognized, this results in a contract liability. It can take up to two and half years from the time of order to revenue recognition due to the Company’s long sales cycle. Changes in the contract assets and contract liabilities are as follows (dollars in thousands): September 30, June 30, Change Amount Amount $ % Contract Assets: Unbilled accounts receivable – current (1) $ 12,934 $ 13,325 ( 391 ) ( 2.9 %) Interest receivable – current (2) 394 493 ( 99 ) ( 20.1 %) Long-term accounts receivable (3) 5,492 5,301 191 3.6 % Interest receivable – non-current (3) 643 683 ( 40 ) ( 5.9 %) Contract Liabilities: Customer advances 17,983 25,290 ( 7,307 ) ( 28.9 %) Deferred revenue – current 69,948 75,375 ( 5,427 ) ( 7.2 %) Deferred revenue – non-current 28,453 24,694 3,759 15.2 % (1) Included in accounts receivable on the unaudited condensed consolidated balance sheets. (2) Included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets. (3) Included in other assets on the unaudited condensed consolidated balance sheets. During the three months ended September 30, 2022, contract assets changed primarily due to changes in the timing of billings that occurred after revenues were recognized and changes in transactions with payment terms exceeding 12 months. During the three months ended September 30, 2022, contract liabilities changed due to changes in the timing of recognition of revenue for system sales for which the warranty has not yet started and was deferred and due to changes in transaction price. During the three months ended September 30, 2022, the Company recognized revenue of $ 34.9 million, which was included in the deferred revenue balances at June 30, 2022. During the three months ended September 30, 2021, the Company recognized revenue of $ 33.5 million, which was included in the deferred revenue balances at June 30, 2021. Remaining Performance Obligations Remaining performance obligations represent deferred revenue from open contracts for which performance has already started and the transaction price from executed contracts for which performance has not yet started. Service contracts in general are considered month-to-month contracts. As of September 30, 2022, total remaining performance obligations amounted to $ 1,107.2 million. Of this total amount, $ 66.1 million related to long-term warranty and non-cancellable post warranty services, which is the estimated revenue expected to be recognized over the remaining service period and warranty period for systems that have been delivered (the time bands reflect management’s best estimate of when the Company will transfer control to the customer and may change based on timing of shipment, readiness of customers’ facilities for installation, installation requirements, and availability of products). The Company has elected the practical expedient to not disclose the unsatisfied performance obligations of contracts with an original expected duration of one year or less. The following table represents the Company's remaining performance obligations related to long-term warranty and non-cancellable post warranty services as of September 30, 2022 (in thousands): Fiscal years of revenue recognition 2023 2024 2025 Thereafter Long-term warranty and non-cancellable post warranty services $ 22,378 $ 21,638 $ 12,789 $ 9,285 For the remaining $ 1,041.1 million of performance obligations ( i.e., open systems sales, upgrades, training and other miscellaneous items), the Company estimates 25 % to 27 % will be recognized in the next 12 months, and the remaining portion will be recognized thereafter. The Company’s historical experience indicates that some of its customers will cancel or renegotiate contracts as economic conditions change or when product offerings change during the long sales cycle. The Company anticipates a portion of its open contracts may never result in revenue recognition primarily due to the long sales cycle and factors outside of its control including changes in its customers' needs or financial condition, changes in government or health insurance reimbursement policies or changes to regulatory requirements. Based on historical experience and management's best estimate, approximately 16 % of the Company’s $ 988.6 million open system sales contracts as of September 30, 2022, may never result in revenue. Capitalized Contract Costs As of September 30, 2022, and June 30, 2022, the balance of capitalized costs to obtain a contract was $ 11.5 million and $ 11.4 million, respectively. The Company has classified the capitalized costs to obtain a contract as a component of prepaid expenses and other current assets and other assets with respect to the current and non-current portions of capitalized costs, respectively, on the unaudited condensed consolidated balance sheets. The Company incurred impairment losses of $ 0.2 million and $ 0.1 million during the three months ended September 30, 2022 and 2021, respectively. The Company recognized $ 0.9 million in expenses related to the amortization of the capitalized contract costs in both the three months ended September 30, 2022 and 2021, respectively. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Sep. 30, 2022 | |
Supplemental Financial Information Disclosure [Abstract] | |
Supplemental Financial Information | Note 4. Supplemental Financial Information Balance Sheet Components Financing receivables A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset on the Company’s balance sheets. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year, totaled $ 2.6 million and $ 2.8 million as of September 30, 2022, and June 30, 2022, respectively, and are included in Other assets on the unaudited condensed consolidated balance sheets. The Company evaluates the credit quality of a customer at contract inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new customers and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the contract term and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near‑term risk of non‑payment. The Company performs an assessment each quarter of the allowance for credit losses related to its financing receivables. A summary of the Company’s financing receivables is presented as follows (in thousands): September 30, June 30, Financing receivables $ 5,717 $ 6,137 Allowance for credit losses ( 943 ) ( 943 ) Total, net $ 4,774 $ 5,194 Reported as: Current $ 2,204 $ 2,435 Non-current 2,570 2,759 Total, net $ 4,774 $ 5,194 The Company did no t have any additions to the allowance for credit losses during the three months ended September 30, 2022 and 2021. Inventories Inventories consisted of the following (in thousands): September 30, June 30, Raw materials $ 65,296 $ 61,871 Work-in-process 19,673 16,367 Finished goods 67,655 64,016 Inventories $ 152,624 $ 142,254 Property and equipment, net Property and equipment, net consisted of the following (in thousands): September 30, June 30, Furniture and fixtures $ 1,784 $ 1,766 Computer and office equipment 8,309 8,605 Software 5,319 5,344 Leasehold improvements 26,520 26,659 Machinery and equipment 45,956 46,522 Construction in progress 2,154 2,999 90,042 91,895 Less: Accumulated depreciation ( 79,104 ) ( 79,210 ) Property and equipment, net $ 10,938 $ 12,685 Depreciation expense related to property and equipment for the three months ended September 30, 2022 and 2021 was $ 1.1 million. and $ 1.4 million, respectively. Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) are excluded from earnings and reported as a component of stockholders’ equity. The foreign currency translation adjustment results from those subsidiaries not using the U.S. Dollar as their functional currency since the majority of their economic activities are primarily denominated in their applicable local currency. Accordingly, all assets and liabilities related to these operations are translated to the U.S. Dollar at the current exchange rates at the end of each period. Revenues and expenses are translated at average exchange rates in effect during the period. The components of accumulated other comprehensive income (loss) in the stockholders' equity section of the Company’s unaudited condensed consolidated balance sheets are as follows (in thousands): September 30, June 30, Cumulative foreign currency translation adjustment $ ( 5,196 ) $ ( 1,541 ) Defined benefit pension obligation 3,947 3,947 Accumulated other comprehensive income (loss) $ ( 1,249 ) $ 2,406 Statements of Operations Other expense, net, consisted of the following (in thousands): Three Months Ended 2022 2021 Interest expense $ ( 2,262 ) $ ( 2,039 ) Foreign currency transaction loss ( 251 ) ( 769 ) Other expense, net ( 45 ) 140 Total other expense, net $ ( 2,558 ) $ ( 2,668 ) |
Leases
Leases | 3 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 5. Leases The Company has operating leases for corporate offices and warehouse facilities worldwide. Additionally, the Company leases cars, copy machines and laptops that are considered operating leases. Some of the Company’s leases are non-cancellable operating lease agreements with various expiration dates through June 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. In August 2022, the Company entered to a material lease agreement to extend the lease term at its office building and manufacturing facility in Madison, Wisconsin through 2035. Operating lease costs were $ 2.3 million and $ 2.3 million during the three months ended September 30, 2022 and 2021, respectively, not including $ 0.1 million and $ 0.1 million, respectively, of short-term operating lease costs. Cash paid for amounts included in the measurement of operating lease liabilities was $ 2.2 million and $ 2.5 million during the three months ended September 30, 2022 and 2021, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets were $ 12.2 million and $ 0.9 million, during the three months ended September 30, 2022 and 2021, respectively. Operating lease right-of-use assets and operating lease obligations are represented in the table below (in thousands): September 30, June 30, Beginning balance operating lease right-of-use assets $ 16,798 $ 22,522 Lease asset added 12,203 3,522 Amortization for the year ( 2,212 ) ( 9,246 ) Ending balance operating lease right-of-use assets $ 26,789 $ 16,798 Beginning balance operating lease obligations $ 19,020 $ 25,609 Lease liability added 12,199 3,209 Repayment and interest accretion ( 2,232 ) ( 9,798 ) Ending balance operating lease obligations $ 28,987 $ 19,020 Current portion of operating lease obligations $ 4,864 $ 8,567 Non-current portion of operating lease obligations $ 24,123 $ 10,453 Maturities of operating lease liabilities as of September 30, 2022 are presented in the table below (dollars in thousands): Amount 2023 (remaining 9 months) $ 6,938 2024 2,678 2025 4,247 2026 3,344 2027 3,193 Thereafter 26,263 Total operating lease payments 46,663 Less: imputed interest ( 17,676 ) Present value of operating lease liabilities $ 28,987 Weighted average remaining lease term (in years) 8.5 Weighted average discount rate 8.6 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Goodwill Activity related to goodwill consisted of the following (in thousands): September 30, June 30, Balance at the beginning of the period $ 57,840 $ 57,960 Currency translation ( 182 ) ( 120 ) Balance at the end of the period $ 57,658 $ 57,840 The Company did not identify any triggering events that would indicate a potential impairment of its goodwill as of September 30, 2022. The Company will continue to monitor its recorded goodwill for indicators of impairment. Purchased Intangible Assets The Company’s carrying amount of acquired intangible assets, net, is as follows (in thousands): September 30, 2022 June 30, 2022 Gross Accumulated Net Gross Accumulated Net Patent license $ 1,170 $ ( 956 ) $ 214 $ 1,170 $ ( 920 ) $ 250 The Company did not identify any triggering events that would indicate potential impairment of its definite-lived intangible and long-lived assets as of September 30, 2022. The estimated future amortization expense of acquired intangible assets as of September 30, 2022, is as follows (in thousands): Amount 2023 (remaining 9 months) $ 107 2024 107 Total estimated future amortization expense $ 214 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 7. Derivative Financial Instruments The Company utilizes foreign currency forward contracts with reputable financial institutions to manage its exposure of fluctuations in foreign currency exchange rates on certain intercompany balances and foreign currency denominated cash, customer receivables and liabilities. The Company does not use derivative financial instruments for speculative or trading purposes. These forward contracts are not designated as hedging instruments for accounting purposes. Principal hedged currencies include the Euro, Japanese Yen, Swiss Franc, and U.S. Dollar. The periods of these forward contracts range up to approximately three months and the notional amounts are intended to be consistent with changes in the underlying exposures. The Company intends to exchange foreign currencies for U.S. Dollars at maturity. The notional amount of the Company's outstanding forward currency exchange contracts September 30, 2022, and June 30, 2022, are as follows (in thousands): September 30, June 30, Swiss Franc $ 27,615 $ 27,910 Chinese Yuan 643 2,524 Euro 5,722 16,307 British Pound 1,024 3,699 Indian Rupee 3,088 3,728 Japanese Yen 6,527 14,167 Total outstanding forward currency exchange contracts $ 44,619 $ 68,335 The Company entered into the foreign currency forward contracts on September 30, 2022, and June 30, 2022, respectively, and therefore, there was no amount recorded on the unaudited condensed consolidated balance sheets. The following table provides information about the gain or loss associated with the Company’s derivative financial instruments (in thousands): Three Months Ended 2022 2021 Foreign currency exchange gain (loss) on forward contracts $ 1,659 $ ( 400 ) Foreign currency transactions loss ( 1,910 ) ( 369 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels of inputs that may be used to measure fair value, as follows: Level 1— Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2— Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets in non-active markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by other observable market data. Level 3— Unobservable inputs that cannot be corroborated by observable market data and require the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. Assets and Liabilities That Are Measured at Fair Value As of September 30, 2022, the Company had open currency forward contracts to purchase or sell foreign currencies with a stated, or notional, value of $ 44.6 million. The fair value of the underlying currency based upon the September 30, 2022, exchange rate was $ 44.6 million, which it considers to be a Level 2 fair value measurement. As of June 30, 2022, the Company had open currency forward contracts to purchase or sell foreign currencies with a stated, or notional, value of $ 68.3 million. The fair value of the underlying currency based upon the June 30, 2022, exchange rate was $ 68.3 million, which it considers to be a Level 2 fair value measurement. The Company’s debt is measured on a recurring basis using Level 2 inputs based upon observable inputs of the Company’s convertible debt. The Revolving Credit Facility (as defined in Note 10) and the Term Loan Facility (as defined in Note 10) reflects the bank quoted market rates, which the Company considers to be a Level 2 fair value measurement. The Company believes that the carrying value of these financial instruments approximate its estimated fair value based on the effective interest rate compared to the current market rate available to the Company and analyzed at quarter-end. The following table summarizes the carrying value and estimated fair value of the Term Loan Facility, the Revolving Credit Facility, the 3.75 % Convertible Senior Notes due July 2022 and the 3.75 % Convertible Senior Notes due July 2026 (in thousands) (see Note 10): September 30, June 30, Carrying Fair Carrying Fair 3.75 % Convertible Notes Due 2022 $ — $ — $ 2,863 $ 2,729 3.75 % Convertible Notes Due 2026 97,760 81,848 97,619 78,561 Term Loan Facility 73,565 73,565 74,988 74,988 Revolving Credit Facility 5,000 5,000 5,000 5,000 Total $ 176,325 $ 160,413 $ 180,470 $ 161,278 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Litigation From time to time, the Company is involved in legal proceedings arising in the ordinary course of its business. The Company records a provision for a loss when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. To the extent there is a reasonable possibility that a loss exceeding amounts already recognized may be incurred and the amount of such additional loss would be material, we will either disclose the estimated additional loss or state that such an estimate cannot be made. Currently, management believes the Company does not have any probable and reasonably estimable material losses related to any current legal proceedings and claims. Although occasional adverse decisions or settlements may occur, management does not believe that an adverse determination with respect to any of these claims would individually or in the aggregate materially and adversely affect the Company’s financial condition or operating results. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company’s control. Should any of these estimates and assumptions change or prove to have been incorrect, the Company could incur significant charges related to legal matters that could have a material impact on its results of operations, financial position and cash flows. Indemnities Under the terms of the Company’s software license agreements with its customers, the Company agrees that in the event the software sold infringes upon any patent, copyright, trademark, or any other proprietary right of a third‑party, it will indemnify its customer licensees against any loss, expense, or liability from any damages that may be awarded against its customer. The Company includes this infringement indemnification in all of its software license agreements and selected managed services arrangements. In the event the customer cannot use the software or service due to infringement and the Company cannot obtain the right to use, replace or modify the license or service in a commercially feasible manner so that it no longer infringes, then the Company may terminate the license and provide the customer a refund of the fees paid by the customer for the infringing license or service. The Company has not recorded any liability associated with this indemnification, as it is not aware of any pending or threatened actions that represent probable losses as of September 30, 2022. The Company enters into standard indemnification agreements with its landlords and all superior mortgagees and their respective directors, officers’ agents, and employees in the ordinary course of business. Pursuant to these agreements, the Company will indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the landlords, in connection with any loss, accident, injury, or damage by any third‑party with respect to the leased facilities. The term of these indemnification agreements is from the commencement of the lease agreements until termination of the lease agreements. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, historically, the Company has not incurred claims or costs to defend lawsuits or settle claims related to these indemnification agreements. The Company has not recorded any liability associated with its indemnification agreements as it is not aware of any pending or threatened actions that represent probable losses as of September 30, 2022. Guarantees As of September 30, 2022, and June 30, 2022, the Company had various bank guarantees totaling $ 1.2 million and $ 1.2 million, respectively, primarily related to bidding processes with customers. Royalty Agreement The Company enters into software license agreements with third parties that may require royalty payments for each license used. In connection with such agreements, the Company recorded royalty costs of $ 0.5 million and $ 0.4 million during the three months ended September 30, 2022 and 2021, respectively, which were recorded in cost of revenue or deferred cost of revenue. The Company had approximately $ 2.5 million and $ 2.4 million accrued liabilities as of September 30, 2022, and June 30, 2022 , respectively, related to royalty agreements. |
Debt
Debt | 3 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 10. Debt 3.75% Convertible Senior Notes due July 2022 As of June 30, 2022, the $ 2.9 million aggregate principal amount of the 3.75 % Convertible Senior Notes due July 2022 (the “ 3.75 % Convertible Notes due 2022”) remained outstanding. In July 2022, the remaining outstanding amount of the 3.75 % Convertible Senior Notes due 2022 was repaid in cash. 3.75% Convertible Senior Notes due July 2026 In May 2021, the Company issued $ 100.0 million aggregate principal amount of its 3.75 % Convertible Senior Notes due July 2026 (the “ 3.75 % Convertible Notes due 2026”) under an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. As of September 30, 2022 , the if-converted value of its 3.75 % Convertible Notes due 2026 did not exceed the outstanding principal amount. Credit Facilities As of September 30, 2022, $ 5.0 million of aggregate principal amount was outstanding under the Company's $ 40.0 million revolving credit facility (the “Revolving Credit Facility”), $ 74.5 million aggregate principal amount was outstanding under the Company's five-year $ 80.0 million term loan ( the "Term Loan Facility") and $ 0.9 million of associated unamortized debt costs. As of June 30, 2022, $ 5.0 million of aggregate principal amount was outstanding under the Revolving Credit Facility, $ 76.0 million aggregate principal amount was outstanding under the Term Loan Facility and $ 1.0 million of associated unamortized debt costs. The following table presents the carrying value of the Notes, the Revolving Credit Facility, and the Term Loan Facility (in thousands): As of September 30, 2022 Revolving 3.75% Term Loan Total Principal amount of the Notes $ 5,000 $ 100,000 $ 74,500 $ 179,500 Unamortized debt costs — ( 2,240 ) ( 935 ) ( 3,175 ) Net carrying amount $ 5,000 $ 97,760 $ 73,565 $ 176,325 Reported as: Short-term debt $ 5,705 Long-term debt 170,620 Total debt $ 176,325 As of June 30, 2022 Revolving 3.75% 3.75% Term Loan Total Principal amount of the Notes $ 5,000 $ 2,865 $ 100,000 $ 76,000 $ 183,865 Unamortized debt costs — ( 1 ) ( 2,381 ) ( 1,013 ) ( 3,395 ) Net carrying amount $ 5,000 $ 2,864 $ 97,619 $ 74,987 $ 180,470 Reported as: Short-term debt $ 8,563 Long-term debt 171,907 Total debt $ 180,470 A summary of interest expense on the Notes and Credit Facilities is as follows (in thousands): Three Months Ended 2022 2021 Interest expense related to contractual interest coupon $ 2,032 $ 1,877 Interest expense related to amortization of debt issuance costs 219 156 Total $ 2,251 $ 2,033 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 11. Share-Based Compensation The following table presents details of share-based compensation expenses by functional line item noted within the Company's operating expenses (in thousands): Three Months Ended 2022 2021 Cost of revenue $ 366 $ 372 Research and development 368 339 Selling and marketing 486 443 General and administrative 1,696 1,362 Total share-based compensation $ 2,916 $ 2,516 |
Net Loss Per Common Share
Net Loss Per Common Share | 3 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Note 12. Net Loss Per Common Share The Company reports both basic and diluted income (loss) per share, which is based on the weighted average number of common shares outstanding during the period. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per common share follows (in thousands, except for per share amounts): Three Months Ended 2022 2021 Numerator: Net loss $ ( 5,449 ) $ ( 1,028 ) Denominator: Weighted average shares outstanding - basic 93,529 90,838 Weighted average shares outstanding - diluted 93,529 90,838 Basic net loss per share $ ( 0.06 ) $ ( 0.01 ) Diluted net loss per share $ ( 0.06 ) $ ( 0.01 ) The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the vesting of Restricted Stock Units (RSU), Performance Stock Units (PSU), and the purchase of shares under the Employee Stock Purchase Program, as determined under the treasury stock method, are excluded from the computation of diluted net income (loss) per share when their effect would have been anti‑dilutive. Additionally, the outstanding 3.75 % Convertible Notes due 2022 and the 3.75 % Convertible Notes due 2026 (collectively, the “Notes”) are included in the calculation of diluted net income per share only if their inclusion is dilutive for periods during which the notes were outstanding. The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands): As of September 30, 2022 2021 Stock options 7,046 6,674 RSUs and PSUs 5,325 3,957 Notes 17,056 17,557 29,427 28,188 |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13. Segment Information The Company has one operating and reporting segment (oncology systems group), which develops, manufactures and markets proprietary medical devices used in radiation therapy for the treatment of cancer patients. The Company’s Chief Executive Officer, its Chief Operating Decision Maker, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The Company does not assess the performance of its individual product lines on measures of profit or loss, or asset-based metrics. Therefore, the information below is presented only for revenues and long-lived tangible assets by geographic area. Disaggregation of Revenues The Company disaggregates its revenues from contracts by geographic region, as the Company believes this best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. Additionally, the Company typically recognizes revenue at a point in time for product revenue and recognizes revenue over time for service revenue. Revenues attributed to a country or region is based on the shipping addresses of the Company’s customers. The following summarizes revenue by geographic region (in thousands): Three Months Ended 2022 2021 Americas $ 27,285 $ 33,968 Europe, Middle East, India and Africa 36,746 30,100 Asia Pacific, excluding Japan and China 7,974 3,920 Japan 13,000 10,398 China 11,488 29,056 Total $ 96,493 $ 107,442 Disaggregation of Long-Lived Assets Information regarding geographic areas in which the Company has long-lived tangible assets is as follows (in thousands): September 30, June 30, 2022 2022 Americas $ 9,713 $ 11,251 Europe, Middle East, India and Africa 214 228 Asia Pacific, excluding Japan and China 221 272 Japan 213 265 China 577 669 Total $ 10,938 $ 12,685 |
Joint Venture
Joint Venture | 3 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture | Note 14. Joint Venture The Company applies the equity method of accounting to its ownership interest in the JV as the Company has the ability to exercise significant influence over the JV but lacks controlling financial interest and is not the primary beneficiary. The Company recognizes revenue on sales to the JV in the current period, eliminating a portion of profit to the extent goods sold have not been sold through by the JV to an end customer at the end of such reporting period. As of September 30, 2022, the Company owned a 49 % interest in the JV, which is reported as an Investment in joint venture on the Company’s unaudited condensed consolidated balance sheets. The following table shows the reconciliation between the carrying value of its investment in the JV and its proportional share of the underlying equity in net assets of the JV (in thousands): September 30, June 30, Carrying value of investment in joint venture $ 12,776 $ 13,879 Deferred intra-entity profit margin 5,495 5,456 Equity method goodwill ( 4,720 ) ( 4,720 ) Proportional share of equity investment in joint venture $ 13,551 $ 14,615 As of September 30, 2022, and June 30, 2022, the Company’s carrying value of the investment in the JV was adjusted for the Company's proportional share of the investee's currency translation adjustment by $ 0.3 million and $ 1.0 million, respectively. No impairment was identified as of September 30, 2022, to the equity method goodwill of the JV. Summarized financial information of the JV is based on a one-quarter lag due to the timing of the availability of the JV’s financial records is as follows (in thousands): Statement of Operations Data: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Revenue $ 26,740 $ 7,669 Gross Profit 4,596 2,340 Net loss ( 752 ) ( 693 ) Net loss attributable to the Company ( 368 ) ( 340 ) Summarized Balance Sheet Data: As of As of Assets Current assets $ 72,241 $ 31,759 Non current assets 19,701 22,763 Total assets $ 91,942 $ 54,522 Liabilities and Stockholders' Equity Current liabilities $ 63,006 $ 24,445 Non current liabilities 862 1,300 Stockholders' equity 28,074 28,777 Total liabilities and stockholders' equity $ 91,942 $ 54,522 As of September 30, 2022, and June 30, 2022, the Company has $ 5.5 million and $ 5.4 million, respectively, of deferred intra-entity profit margin from sales on its unaudited condensed consolidated balance sheets. The following table shows the activity of the Company’s deferred intra-entity profit margin from sales (in thousands): Three Months Ended 2022 2021 Previously deferred intra-entity profit margin from sales - recognized $ ( 2,348 ) $ ( 215 ) Intra-entity profit margin from sales - deferred 2,387 1,953 Total change in deferred intra-entity profit margin from sales $ 39 $ 1,738 |
Income Tax
Income Tax | 3 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Note 15. Income Tax On a quarterly basis, the Company provides for income taxes based upon an estimated annual effective income tax rate. The Company recognized income tax expense of $ 0.3 million and $ 0.4 million for the three months ended September 30, 2022 and 2021 respectively, primarily related to foreign taxes. Starting in fiscal year 2019, certain income earned by controlling foreign corporations (“CFCs”) must be included in the gross income of the CFC’s U.S. shareholder. The income required to be included in gross income is referred to as global intangible low tax income (“GILTI”) and is defined under IRC Section 951A as the excess of the shareholder’s net CFC tested income over the net deemed tangible income return. The GILTI inclusion amount is expected to be fully absorbed by net operating losses carryforward and is not expected to cause the Company to be in a U.S. taxable income position for fiscal year 2023. On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the "Inflation Act") into law. The Inflation Act contains certain tax measures, including a corporate alternative minimum tax of 15 % on some large corporations and an excise tax of 1 % on corporate stock buy-backs. The various provisions of the Inflation Act do not have a material impact on the Company’s consolidated financial statements. As of September 30, 2022, the Company’s gross unrecognized tax benefi ts was $ 19.8 million, of which $ 19.6 mil lion would not affect income tax expense before consideration of any valuation allowance. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months . Interest and penalties accrued on unrecognized tax benefits is recorded as a component of income tax expense. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events On October 28, 2022, the Company entered into the First Amendment to Credit Agreement (the “Amendment”) in respect of its Credit Agreement for its Revolving Credit Facility and Term Loan Facility (the “Existing Credit Agreement”) among the Company, the financial institutions party thereto as lenders and issuing lenders and Silicon Valley Bank as administrative agent, issuing lender and swingline lender. The principal purpose of the Amendment is to relax the requirements of the financial maintenance covenants under the Existing Credit Agreement for the fiscal quarter ending December 31, 2022 through the end of the fiscal quarter ending June 30, 2023. |
The Company and its Significa_2
The Company and its Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of the periods presented. The results for the three months ended September 30, 2022, are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2023, or for any other future interim period or fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the fiscal year ended June 30, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 17, 2022. |
Risks and Uncertainties | Risks and Uncertainties The ongoing COVID-19 pandemic has created significant global economic uncertainty, adversely impacted the business of the Company's customers, partners and vendors, contributed to supply chain and labor issues, and has impacted its business and results of operations in the past and could further impact its results of operations and cash flows in the future. The Company is also subject to risks and uncertainties caused by events with significant macroeconomic impacts, including, but not limited to, the Russian invasion of Ukraine, inflation, actions taken to counter inflation and foreign currency exchange rate fluctuations. These conditions have created and may continue to create significant disruptions with respect to demand for the Company's products and services; the operating procedures and workflow of its customers, particularly hospitals; its ability to continue to manufacture its products; and the reliability of its supply chain, which have impacted and could continue to impact its revenue, expenses and operating results. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company. Key estimates and assumptions made by the Company relate to revenue recognition and the assessment of stand-alone selling price, assessment of recoverability of goodwill, valuation of our equity method investment CNNC Accuray (Tianjin) Medical Technology Co. Ltd., the Company’s joint venture in China (the “JV”) , valuation of inventories, annual performance related bonuses, allowance for credit losses and loss contingencies. Actual results could differ materially from those estimates. |
Significant Accounting Policies | Significant Accounting Policies There have been no changes in the Company’s significant accounting policies during the three months ended September 30, 2022, compared to the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended June 30, 2022 . |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Pronouncements Not Yet Effective | |
Accounting Pronouncement Not Yet Effective | Accounting Pronouncement Not Yet Effective In March 2020, the FASB issued an update (ASU 2020-04) establishing Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company’s Term Loan Facility and Revolving Credit Facility applies Eurodollar rate LIBOR to the variable component of the interest rate, or if a Benchmark transition event, or an early opt-in election, as applicable occurred a transition to the use of the Secured Overnight Financing Rate ("SOFR") to replace such rate. This accounting standard update was effective upon issuance and may be applied prospectively through December 31, 2022. In October 2022, the Company will begin to use the SOFR to calculate the variable component of the interest rate for its Term Loan Facility and Revolving Credit Facility. The change to SOFR will not have a material impact on the Company's financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract with Customer, Asset and Liability | Changes in the contract assets and contract liabilities are as follows (dollars in thousands): September 30, June 30, Change Amount Amount $ % Contract Assets: Unbilled accounts receivable – current (1) $ 12,934 $ 13,325 ( 391 ) ( 2.9 %) Interest receivable – current (2) 394 493 ( 99 ) ( 20.1 %) Long-term accounts receivable (3) 5,492 5,301 191 3.6 % Interest receivable – non-current (3) 643 683 ( 40 ) ( 5.9 %) Contract Liabilities: Customer advances 17,983 25,290 ( 7,307 ) ( 28.9 %) Deferred revenue – current 69,948 75,375 ( 5,427 ) ( 7.2 %) Deferred revenue – non-current 28,453 24,694 3,759 15.2 % (1) Included in accounts receivable on the unaudited condensed consolidated balance sheets. (2) Included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets. (3) Included in other assets on the unaudited condensed consolidated balance sheets. |
Schedule of Remaining Performance Obligations related to Warranty | The following table represents the Company's remaining performance obligations related to long-term warranty and non-cancellable post warranty services as of September 30, 2022 (in thousands): Fiscal years of revenue recognition 2023 2024 2025 Thereafter Long-term warranty and non-cancellable post warranty services $ 22,378 $ 21,638 $ 12,789 $ 9,285 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Supplemental Financial Information Disclosure [Abstract] | |
Schedule of financing receivables | A summary of the Company’s financing receivables is presented as follows (in thousands): September 30, June 30, Financing receivables $ 5,717 $ 6,137 Allowance for credit losses ( 943 ) ( 943 ) Total, net $ 4,774 $ 5,194 Reported as: Current $ 2,204 $ 2,435 Non-current 2,570 2,759 Total, net $ 4,774 $ 5,194 |
Schedule of inventories | Inventories consisted of the following (in thousands): September 30, June 30, Raw materials $ 65,296 $ 61,871 Work-in-process 19,673 16,367 Finished goods 67,655 64,016 Inventories $ 152,624 $ 142,254 |
Schedule of property and equipment, net | Property and equipment, net consisted of the following (in thousands): September 30, June 30, Furniture and fixtures $ 1,784 $ 1,766 Computer and office equipment 8,309 8,605 Software 5,319 5,344 Leasehold improvements 26,520 26,659 Machinery and equipment 45,956 46,522 Construction in progress 2,154 2,999 90,042 91,895 Less: Accumulated depreciation ( 79,104 ) ( 79,210 ) Property and equipment, net $ 10,938 $ 12,685 |
Schedule of accumulated other comprehensive income (loss) in the stockholders' equity section | The components of accumulated other comprehensive income (loss) in the stockholders' equity section of the Company’s unaudited condensed consolidated balance sheets are as follows (in thousands): September 30, June 30, Cumulative foreign currency translation adjustment $ ( 5,196 ) $ ( 1,541 ) Defined benefit pension obligation 3,947 3,947 Accumulated other comprehensive income (loss) $ ( 1,249 ) $ 2,406 |
Schedule of statement of operations | Other expense, net, consisted of the following (in thousands): Three Months Ended 2022 2021 Interest expense $ ( 2,262 ) $ ( 2,039 ) Foreign currency transaction loss ( 251 ) ( 769 ) Other expense, net ( 45 ) 140 Total other expense, net $ ( 2,558 ) $ ( 2,668 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Right-of-use Assets and Operating Lease Obligations | Operating lease right-of-use assets and operating lease obligations are represented in the table below (in thousands): September 30, June 30, Beginning balance operating lease right-of-use assets $ 16,798 $ 22,522 Lease asset added 12,203 3,522 Amortization for the year ( 2,212 ) ( 9,246 ) Ending balance operating lease right-of-use assets $ 26,789 $ 16,798 Beginning balance operating lease obligations $ 19,020 $ 25,609 Lease liability added 12,199 3,209 Repayment and interest accretion ( 2,232 ) ( 9,798 ) Ending balance operating lease obligations $ 28,987 $ 19,020 Current portion of operating lease obligations $ 4,864 $ 8,567 Non-current portion of operating lease obligations $ 24,123 $ 10,453 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of September 30, 2022 are presented in the table below (dollars in thousands): Amount 2023 (remaining 9 months) $ 6,938 2024 2,678 2025 4,247 2026 3,344 2027 3,193 Thereafter 26,263 Total operating lease payments 46,663 Less: imputed interest ( 17,676 ) Present value of operating lease liabilities $ 28,987 Weighted average remaining lease term (in years) 8.5 Weighted average discount rate 8.6 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Activity related to goodwill consisted of the following (in thousands): September 30, June 30, Balance at the beginning of the period $ 57,840 $ 57,960 Currency translation ( 182 ) ( 120 ) Balance at the end of the period $ 57,658 $ 57,840 |
Schedule of carrying amount of acquired intangible assets, net | The Company’s carrying amount of acquired intangible assets, net, is as follows (in thousands): September 30, 2022 June 30, 2022 Gross Accumulated Net Gross Accumulated Net Patent license $ 1,170 $ ( 956 ) $ 214 $ 1,170 $ ( 920 ) $ 250 |
Schedule of estimated future amortization expense of acquired intangible assets | The estimated future amortization expense of acquired intangible assets as of September 30, 2022, is as follows (in thousands): Amount 2023 (remaining 9 months) $ 107 2024 107 Total estimated future amortization expense $ 214 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Forward Currency Exchange Contracts | The notional amount of the Company's outstanding forward currency exchange contracts September 30, 2022, and June 30, 2022, are as follows (in thousands): September 30, June 30, Swiss Franc $ 27,615 $ 27,910 Chinese Yuan 643 2,524 Euro 5,722 16,307 British Pound 1,024 3,699 Indian Rupee 3,088 3,728 Japanese Yen 6,527 14,167 Total outstanding forward currency exchange contracts $ 44,619 $ 68,335 |
Schedule of Gain (loss) Associated With the Company's Derivative Financial Instruments | The following table provides information about the gain or loss associated with the Company’s derivative financial instruments (in thousands): Three Months Ended 2022 2021 Foreign currency exchange gain (loss) on forward contracts $ 1,659 $ ( 400 ) Foreign currency transactions loss ( 1,910 ) ( 369 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Values and Estimated Fair Values of Short-Term and Long-Term Debt | The following table summarizes the carrying value and estimated fair value of the Term Loan Facility, the Revolving Credit Facility, the 3.75 % Convertible Senior Notes due July 2022 and the 3.75 % Convertible Senior Notes due July 2026 (in thousands) (see Note 10): September 30, June 30, Carrying Fair Carrying Fair 3.75 % Convertible Notes Due 2022 $ — $ — $ 2,863 $ 2,729 3.75 % Convertible Notes Due 2026 97,760 81,848 97,619 78,561 Term Loan Facility 73,565 73,565 74,988 74,988 Revolving Credit Facility 5,000 5,000 5,000 5,000 Total $ 176,325 $ 160,413 $ 180,470 $ 161,278 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values of all Debt | The following table presents the carrying value of the Notes, the Revolving Credit Facility, and the Term Loan Facility (in thousands): As of September 30, 2022 Revolving 3.75% Term Loan Total Principal amount of the Notes $ 5,000 $ 100,000 $ 74,500 $ 179,500 Unamortized debt costs — ( 2,240 ) ( 935 ) ( 3,175 ) Net carrying amount $ 5,000 $ 97,760 $ 73,565 $ 176,325 Reported as: Short-term debt $ 5,705 Long-term debt 170,620 Total debt $ 176,325 As of June 30, 2022 Revolving 3.75% 3.75% Term Loan Total Principal amount of the Notes $ 5,000 $ 2,865 $ 100,000 $ 76,000 $ 183,865 Unamortized debt costs — ( 1 ) ( 2,381 ) ( 1,013 ) ( 3,395 ) Net carrying amount $ 5,000 $ 2,864 $ 97,619 $ 74,987 $ 180,470 Reported as: Short-term debt $ 8,563 Long-term debt 171,907 Total debt $ 180,470 |
Summary of Interest Expense on Notes and Credit Facilities | A summary of interest expense on the Notes and Credit Facilities is as follows (in thousands): Three Months Ended 2022 2021 Interest expense related to contractual interest coupon $ 2,032 $ 1,877 Interest expense related to amortization of debt issuance costs 219 156 Total $ 2,251 $ 2,033 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share-based Compensation Expenses by Functional Line Item Noted Within Company's Operating Expenses | The following table presents details of share-based compensation expenses by functional line item noted within the Company's operating expenses (in thousands): Three Months Ended 2022 2021 Cost of revenue $ 366 $ 372 Research and development 368 339 Selling and marketing 486 443 General and administrative 1,696 1,362 Total share-based compensation $ 2,916 $ 2,516 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per common share | A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per common share follows (in thousands, except for per share amounts): Three Months Ended 2022 2021 Numerator: Net loss $ ( 5,449 ) $ ( 1,028 ) Denominator: Weighted average shares outstanding - basic 93,529 90,838 Weighted average shares outstanding - diluted 93,529 90,838 Basic net loss per share $ ( 0.06 ) $ ( 0.01 ) Diluted net loss per share $ ( 0.06 ) $ ( 0.01 ) |
Schedule of all potentially dilutive securities excluded from the computation of basic and diluted net income per common share | The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands): As of September 30, 2022 2021 Stock options 7,046 6,674 RSUs and PSUs 5,325 3,957 Notes 17,056 17,557 29,427 28,188 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | Revenues attributed to a country or region is based on the shipping addresses of the Company’s customers. The following summarizes revenue by geographic region (in thousands): Three Months Ended 2022 2021 Americas $ 27,285 $ 33,968 Europe, Middle East, India and Africa 36,746 30,100 Asia Pacific, excluding Japan and China 7,974 3,920 Japan 13,000 10,398 China 11,488 29,056 Total $ 96,493 $ 107,442 |
Schedule of Geographic Areas in Which the Company has Long Lived Tangible Assets | Information regarding geographic areas in which the Company has long-lived tangible assets is as follows (in thousands): September 30, June 30, 2022 2022 Americas $ 9,713 $ 11,251 Europe, Middle East, India and Africa 214 228 Asia Pacific, excluding Japan and China 221 272 Japan 213 265 China 577 669 Total $ 10,938 $ 12,685 |
Joint Venture (Tables)
Joint Venture (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Reconciliation Between the Carrying Value of Investment and Proportional Share of Underlying Equity in Net Assets of Joint Ventures | The following table shows the reconciliation between the carrying value of its investment in the JV and its proportional share of the underlying equity in net assets of the JV (in thousands): September 30, June 30, Carrying value of investment in joint venture $ 12,776 $ 13,879 Deferred intra-entity profit margin 5,495 5,456 Equity method goodwill ( 4,720 ) ( 4,720 ) Proportional share of equity investment in joint venture $ 13,551 $ 14,615 |
Summary of Financial Information of Joint Ventures (Operations Data) | Summarized financial information of the JV is based on a one-quarter lag due to the timing of the availability of the JV’s financial records is as follows (in thousands): Statement of Operations Data: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Revenue $ 26,740 $ 7,669 Gross Profit 4,596 2,340 Net loss ( 752 ) ( 693 ) Net loss attributable to the Company ( 368 ) ( 340 ) |
Summary of Financial Information of Joint Ventures (Balance Sheet Data) | Summarized Balance Sheet Data: As of As of Assets Current assets $ 72,241 $ 31,759 Non current assets 19,701 22,763 Total assets $ 91,942 $ 54,522 Liabilities and Stockholders' Equity Current liabilities $ 63,006 $ 24,445 Non current liabilities 862 1,300 Stockholders' equity 28,074 28,777 Total liabilities and stockholders' equity $ 91,942 $ 54,522 |
Schedule of Deferred Intra Entity Profit Margin from Sales | The following table shows the activity of the Company’s deferred intra-entity profit margin from sales (in thousands): Three Months Ended 2022 2021 Previously deferred intra-entity profit margin from sales - recognized $ ( 2,348 ) $ ( 215 ) Intra-entity profit margin from sales - deferred 2,387 1,953 Total change in deferred intra-entity profit margin from sales $ 39 $ 1,738 |
Revenue - Summary of Contract w
Revenue - Summary of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | ||
Contract Assets: | |||
Unbilled accounts receivable - current | [1] | $ 12,934 | $ 13,325 |
Interest receivable - current | [2] | 394 | 493 |
Long-term accounts receivable | [3] | 5,492 | 5,301 |
Interest receivable - non-current | [3] | 643 | 683 |
Contract Liabilities: | |||
Customer advances | 17,983 | 25,290 | |
Deferred revenue – current | 69,948 | 75,375 | |
Deferred revenue – non-current | 28,453 | $ 24,694 | |
Change in assets, value: | |||
Change in unbilled accounts receivable – current, value | [1] | (391) | |
Change in interest receivable – current, value | [2] | (99) | |
Change in long-term accounts receivable, value | [3] | 191 | |
Change in Interest receivable – non-current, value | [3] | (40) | |
Change in liabilities, value: | |||
Change in customer advances, value | (7,307) | ||
Change in deferred revenue – current, value | (5,427) | ||
Change in deferred revenue – non-current, value | $ (3,759) | ||
Change in assets, percentage: | |||
Change in unbilled accounts receivable – current, percentage | [1] | (2.90%) | |
Change in interest receivable – current, percentage | [2] | (20.10%) | |
Change in long-term accounts receivable, percentage | [3] | 3.60% | |
Change in Interest receivable – non-current, percentage | [3] | (5.90%) | |
Change in liabilities, percentage: | |||
Change in customer advances, percentage | (28.90%) | ||
Change in deferred revenue – current, percentage | (7.20%) | ||
Change in deferred revenue – non-current, percentage | 15.20% | ||
[1] Included in accounts receivable on the unaudited condensed consolidated balance sheets. Included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets. Included in other assets on the unaudited condensed consolidated balance sheets. |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Recognition of deferred revenue | $ 34.9 | $ 33.5 | |
Remaining performance obligations amount | $ 1,107.2 | ||
Percentage of changes in operating results on entity's revenue | 16% | ||
Capitalized costs to obtain a contract | $ 11.5 | $ 11.4 | |
Impairment loss | 0.2 | 0.1 | |
Capitalized contract cost, amortization | 0.9 | $ 0.9 | |
Long-term Warranty and Service | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Remaining performance obligations amount | 66.1 | ||
Performance Obligations Other Than Warrant | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Remaining performance obligations amount | 1,041.1 | ||
Performance Obligations Service Contracts | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Remaining performance obligations amount | $ 988.6 |
Revenue - Schedule of Remaining
Revenue - Schedule of Remaining Performance Obligations related to Warranty (Details) - Long-term Warranty and Service $ in Thousands | Sep. 30, 2022 USD ($) |
2023 | $ 22,378 |
2024 | 21,638 |
2025 | 12,789 |
Thereafter | $ 9,285 |
Revenue - Additional Informat_2
Revenue - Additional Information (Details1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | Sep. 30, 2022 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations recognized period | 12 months |
Minimum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations percentage | 25% |
Maximum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations percentage | 27% |
Supplemental Financial Inform_3
Supplemental Financial Information - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Financing receivables | |||
Accounts receivable with contractual maturities of more than one year | $ 2,570,000 | $ 2,759,000 | |
Financing receivables, additions | 0 | $ 0 | |
Property and equipment, net | |||
Depreciation expense | $ 1,100,000 | $ 1,400,000 |
Supplemental Financial Inform_4
Supplemental Financial Information - Summary of Financing Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Financing receivables | ||
Financing receivables | $ 5,717 | $ 6,137 |
Allowance for credit losses | (943) | (943) |
Total, net | 4,774 | 5,194 |
Current | 2,204 | 2,435 |
Non-current | $ 2,570 | $ 2,759 |
Supplemental Financial Inform_5
Supplemental Financial Information - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Inventory, Net [Abstract] | ||
Raw materials | $ 65,296 | $ 61,871 |
Work-in-process | 19,673 | 16,367 |
Finished goods | 67,655 | 64,016 |
Inventories | $ 152,624 | $ 142,254 |
Supplemental Financial Inform_6
Supplemental Financial Information - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Property and equipment, net | ||
Property and equipment, gross | $ 90,042 | $ 91,895 |
Less: Accumulated depreciation | (79,104) | (79,210) |
Property and equipment, net | 10,938 | 12,685 |
Furniture and Fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | 1,784 | 1,766 |
Computer and Office Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 8,309 | 8,605 |
Software | ||
Property and equipment, net | ||
Property and equipment, gross | 5,319 | 5,344 |
Leasehold Improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 26,520 | 26,659 |
Machinery and Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 45,956 | 46,522 |
Construction in Progress | ||
Property and equipment, net | ||
Property and equipment, gross | $ 2,154 | $ 2,999 |
Supplemental Financial Inform_7
Supplemental Financial Information - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Accumulated Other Comprehensive Income (Loss) | ||
Cumulative foreign currency translation adjustment | $ (5,196) | $ (1,541) |
Defined benefit pension obligation | 3,947 | 3,947 |
Accumulated other comprehensive income (loss) | $ (1,249) | $ 2,406 |
Supplemental Financial Inform_8
Supplemental Financial Information - Schedule Of Statement Of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Financial Information Disclosure [Abstract] | ||
Interest expense | $ (2,262) | $ (2,039) |
Foreign currency transaction loss | (251) | (769) |
Other expense, net | (45) | 140 |
Total other expense, net | $ (2,558) | $ (2,668) |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Operating lease costs | $ 2.3 | $ 2.3 |
Short-term operating lease costs | 0.1 | 0.1 |
Cash paid for amounts included in the measurement of operating lease liabilities | 2.2 | 2.5 |
Operating lease liabilities arising from obtaining operating right of-use assets | $ 12.2 | $ 0.9 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Right-of-use Assets and Operating Lease Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Beginning balance operating lease right-of-use assets | $ 16,798 | $ 22,522 |
Lease asset added | 12,203 | 3,522 |
Amortization for the year | (2,212) | (9,246) |
Ending balance operating lease right-of-use assets | 26,789 | 16,798 |
Beginning balance operating lease obligations | 19,020 | 25,609 |
Lease liability added | 12,199 | 3,209 |
Repayment and interest accretion | (2,232) | (9,798) |
Ending balance operating lease obligations | 28,987 | 19,020 |
Current portion of operating lease obligations | 4,864 | 8,567 |
Non-current portion of operating lease obligations | $ 24,123 | $ 10,453 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
2023 (remaining 9 months) | $ 6,938 |
2024 | 2,678 |
2025 | 4,247 |
2026 | 3,344 |
2027 | 3,193 |
Thereafter | 26,263 |
Total operating lease payments | 46,663 |
Less: imputed interest | (17,676) |
Present value of operating lease liabilities | $ 28,987 |
Weighted average remaining lease term (in years) | 8 years 6 months |
Weighted average discount rate | 8.60% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | |
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | $ 57,840 | $ 57,960 |
Currency translation | (182) | (120) |
Balance at the end of the period | $ 57,658 | $ 57,840 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Carrying Amount of Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Total estimated future amortization expense | $ 214 | $ 250 |
Patent license | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,170 | 1,170 |
Accumulated Amortization | (956) | (920) |
Total estimated future amortization expense | $ 214 | $ 250 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Estimated future amortization expense of purchased intangible assets | ||
2023 (remaining 9 months) | $ 107 | |
2024 | 107 | |
Total estimated future amortization expense | $ 214 | $ 250 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) | 3 Months Ended |
Sep. 30, 2022 | |
Maximum | |
Length of forward contracts | three months |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Outstanding Forward Currency Exchange Contracts (Details) - Forward Currency Exchange Contracts - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Outstanding forward currency exchange contracts | $ 44,619 | $ 68,335 |
Swiss Franc | ||
Outstanding forward currency exchange contracts | 27,615 | 27,910 |
Chinese Yuan | ||
Outstanding forward currency exchange contracts | 643 | 2,524 |
Euro | ||
Outstanding forward currency exchange contracts | 5,722 | 16,307 |
British Pound | ||
Outstanding forward currency exchange contracts | 1,024 | 3,699 |
Indian Rupee | ||
Outstanding forward currency exchange contracts | 3,088 | 3,728 |
Japanese Yen | ||
Outstanding forward currency exchange contracts | $ 6,527 | $ 14,167 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Gain (Loss) Associated with the Company's Derivative Financial Instruments (Details) - Other expense, net - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Foreign currency exchange gain (loss) on forward contracts | $ (1,910) | $ (369) |
Forward contracts | ||
Foreign currency exchange gain (loss) on forward contracts | $ 1,659 | $ (400) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Forward Currency Exchange Contracts - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Financial assets | ||
Outstanding forward currency exchange contracts | $ 44,619 | $ 68,335 |
Level 2 | ||
Financial assets | ||
Fair value of currency contract based on exchange rate | $ 44,600 | $ 68,300 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Value and Estimated Fair Value of all Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Carrying Value | ||
Fair value measurement | ||
Long term debt | $ 176,325 | $ 180,470 |
Fair Value | ||
Fair value measurement | ||
Long term debt | 160,413 | 161,278 |
Non-recurring basis | Carrying Value | Level 2 | 3.75% Convertible Notes Due 2022 | ||
Fair value measurement | ||
Long term debt | 0 | 2,863 |
Non-recurring basis | Carrying Value | Level 2 | 3.75% Convertible Notes Due 2026 | ||
Fair value measurement | ||
Long term debt | 97,760 | 97,619 |
Non-recurring basis | Fair Value | Level 2 | 3.75% Convertible Notes Due 2022 | ||
Fair value measurement | ||
Long term debt | 0 | 2,729 |
Non-recurring basis | Fair Value | Level 2 | 3.75% Convertible Notes Due 2026 | ||
Fair value measurement | ||
Long term debt | 81,848 | 78,561 |
Term Loan Facility | Non-recurring basis | Carrying Value | Level 2 | ||
Fair value measurement | ||
Long term debt | 73,565 | 74,988 |
Term Loan Facility | Non-recurring basis | Fair Value | Level 2 | ||
Fair value measurement | ||
Long term debt | 73,565 | 74,988 |
Revolving Credit Facility | Non-recurring basis | Carrying Value | Level 2 | ||
Fair value measurement | ||
Long term debt | 5,000 | 5,000 |
Revolving Credit Facility | Non-recurring basis | Fair Value | Level 2 | ||
Fair value measurement | ||
Long term debt | $ 5,000 | $ 5,000 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Value and Estimated Fair Value of all Debt (Parenthetical) (Details) | Sep. 30, 2022 | Aug. 31, 2022 | Jun. 30, 2022 | May 31, 2021 |
3.75% Convertible Notes Due 2022 | ||||
Fair value measurement | ||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |
3.75% Convertible Notes Due 2026 | ||||
Fair value measurement | ||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
License agreement | WARF (Wisconsin Alumni Research Foundation) | |||
Loss Contingencies [Line Items] | |||
Royalty costs | $ 0.5 | $ 0.4 | |
Royalty amount accrued | 2.5 | $ 2.4 | |
Financial Guarantee | Various Customers | |||
Loss Contingencies [Line Items] | |||
Bank guarantees | $ 1.2 | $ 1.2 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2022 | Aug. 31, 2022 | Jun. 30, 2022 | May 31, 2021 | |
Debt Instrument [Line Items] | ||||
Increase to accumulated deficit | $ (497,971) | $ (492,522) | ||
Decrease to additional paid in capital | 546,117 | 543,211 | ||
Principal amount of the Notes | 179,500 | 183,865 | ||
Unamortized debt costs | (3,175) | (3,395) | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility borrowing capacity | 40,000 | |||
Principal amount of the Notes | 5,000 | 5,000 | ||
Unamortized debt costs | $ (900) | (1,000) | ||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Term of loan | 5 years | |||
Credit facility borrowing capacity | $ 80,000 | |||
Principal amount of the Notes | $ 74,500 | 76,000 | ||
3.75% Convertible Notes Due 2022 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of debt issued | $ 2,900 | |||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |
Principal amount of the Notes | $ 2,865 | |||
Unamortized debt costs | $ (1) | |||
3.75% Convertible Notes Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of debt issued | $ 100,000 | |||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |
Principal amount of the Notes | $ 100,000 | $ 100,000 | ||
Unamortized debt costs | $ (2,240) | $ (2,381) |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values of All Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Principal amount of the Notes | $ 179,500 | $ 183,865 |
Unamortized debt costs | (3,175) | (3,395) |
Net carrying amount | 176,325 | 180,470 |
Reported as: | ||
Short-term debt | 5,705 | 8,563 |
Long-term debt | 170,620 | 171,907 |
Net carrying amount | 176,325 | 180,470 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Principal amount of the Notes | 5,000 | 5,000 |
Unamortized debt costs | (900) | (1,000) |
Net carrying amount | 5,000 | 5,000 |
Reported as: | ||
Net carrying amount | 5,000 | 5,000 |
3.75% Convertible Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Principal amount of the Notes | 2,865 | |
Unamortized debt costs | (1) | |
Net carrying amount | 2,864 | |
Reported as: | ||
Net carrying amount | 2,864 | |
3.75% Convertible Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Principal amount of the Notes | 100,000 | 100,000 |
Unamortized debt costs | (2,240) | (2,381) |
Net carrying amount | 97,760 | 97,619 |
Reported as: | ||
Net carrying amount | 97,760 | 97,619 |
Term Loan Facility Due May 2026 | ||
Debt Instrument [Line Items] | ||
Principal amount of the Notes | 74,500 | 76,000 |
Unamortized debt costs | (935) | (1,013) |
Net carrying amount | 73,565 | 74,987 |
Reported as: | ||
Net carrying amount | $ 73,565 | $ 74,987 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense on Notes and Credit Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Disclosure [Abstract] | ||
Interest expense related to contractual interest coupon | $ 2,032 | $ 1,877 |
Interest expense related to amortization of debt issuance costs | 219 | 156 |
Total | $ 2,251 | $ 2,033 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-Based Compensation Expenses by Functional Line Item Noted Within Company's Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based compensation expenses | ||
Share-based compensation expense | $ 2,916 | $ 2,516 |
Cost of revenue | ||
Share-based compensation expenses | ||
Share-based compensation expense | 366 | 372 |
Research and development | ||
Share-based compensation expenses | ||
Share-based compensation expense | 368 | 339 |
Selling and marketing | ||
Share-based compensation expenses | ||
Share-based compensation expense | 486 | 443 |
General and administrative | ||
Share-based compensation expenses | ||
Share-based compensation expense | $ 1,696 | $ 1,362 |
Net Loss Per Common Share - Sch
Net Loss Per Common Share - Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||
Net loss | $ (5,449) | $ (1,028) |
Denominator: | ||
Weighted average shares outstanding - basic | 93,529 | 90,838 |
Weighted average shares outstanding - diluted | 93,529 | 90,838 |
Basic net loss per share | $ (0.06) | $ (0.01) |
Diluted net loss per share | $ (0.06) | $ (0.01) |
Net Loss Per Common Share - Add
Net Loss Per Common Share - Additional Information (Details) | 3 Months Ended | |||
Sep. 30, 2022 | Aug. 31, 2022 | Jun. 30, 2022 | May 31, 2021 | |
3.75% Convertible Senior Notes due 2022 | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |
Convertible debt maturity period | 2022 | |||
3.75% Convertible Notes Due 2026 | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |
Convertible debt maturity period | 2026 |
Net Loss Per Common Share - S_2
Net Loss Per Common Share - Schedule of all potentially dilutive securities excluded from the computation of basic and diluted net income per common share (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net income per share (in shares) | 29,427 | 28,188 |
Stock options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net income per share (in shares) | 7,046 | 6,674 |
RSUs and PSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net income per share (in shares) | 5,325 | 3,957 |
Notes | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net income per share (in shares) | 17,056 | 17,557 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Sep. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Segment Information - Summary o
Segment Information - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Information | ||
Total net revenue | $ 96,493 | $ 107,442 |
Americas | ||
Segment Information | ||
Total net revenue | 27,285 | 33,968 |
Europe, Middle East, India and Africa | ||
Segment Information | ||
Total net revenue | 36,746 | 30,100 |
Asia Pacific, excluding Japan and China | ||
Segment Information | ||
Total net revenue | 7,974 | 3,920 |
Japan | ||
Segment Information | ||
Total net revenue | 13,000 | 10,398 |
China | ||
Segment Information | ||
Total net revenue | $ 11,488 | $ 29,056 |
Segment Information - Schedule
Segment Information - Schedule of Geographic Areas in Which the Company has Long-Lived Tangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Segment Information | ||
Long lived tangible assets | $ 10,938 | $ 12,685 |
Americas | ||
Segment Information | ||
Long lived tangible assets | 9,713 | 11,251 |
Europe, Middle East, India and Africa | ||
Segment Information | ||
Long lived tangible assets | 214 | 228 |
Asia Pacific, excluding Japan and China | ||
Segment Information | ||
Long lived tangible assets | 221 | 272 |
Japan | ||
Segment Information | ||
Long lived tangible assets | 213 | 265 |
China | ||
Segment Information | ||
Long lived tangible assets | $ 577 | $ 669 |
Joint Venture - Additional Info
Joint Venture - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | |
Schedule Of Equity Method Investments [Line Items] | ||
Currency translation adjustment | $ (182) | $ (120) |
Joint venture | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage of ownership interest in joint venture | 49% | |
Currency translation adjustment | $ 300 | 1,000 |
Deferred intra-entity profit margin from sales | 5,500 | $ 5,400 |
Impairment of goodwill | $ 0 |
Joint Venture - Summary of Reco
Joint Venture - Summary of Reconciliation Between the Carrying Value of Investment and Proportional Share of Underlying Equity in Net Assets of Joint Ventures (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule of Equity Method Investments [Line Items] | |||
Goodwill | $ 57,658 | $ 57,840 | $ 57,960 |
Joint venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of investment in joint venture | 12,776 | 13,879 | |
Deferred intra-entity profit margin | 5,495 | 5,456 | |
Goodwill | (4,720) | (4,720) | |
Proportional share of equity investment in joint venture | $ 13,551 | $ 14,615 |
Joint Venture - Summary of Fina
Joint Venture - Summary of Financial Information of Joint Ventures (Operations Data) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Total net revenue | $ 96,493 | $ 107,442 | ||
Gross Profit | 34,597 | 39,524 | ||
Net loss | $ (5,449) | $ (1,028) | ||
Joint venture | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Total net revenue | $ 26,740 | $ 7,669 | ||
Gross Profit | 4,596 | 2,340 | ||
Net loss | (752) | (693) | ||
Net loss attributable to the Company | $ (368) | $ (340) |
Joint Venture - Summary of Fi_2
Joint Venture - Summary of Financial Information of Joint Ventures (Balance Sheet Data) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 |
Schedule Of Equity Method Investments [Line Items] | ||||
Current assets | $ 335,265 | $ 350,890 | ||
Total assets | 466,349 | 472,849 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities | 192,536 | 208,858 | ||
Stockholder's equity | 46,991 | 53,189 | $ 45,765 | $ 68,840 |
Total liabilities and stockholders' equity | $ 466,349 | 472,849 | ||
Joint venture | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Current assets | 72,241 | 31,759 | ||
Non current assets | 19,701 | 22,763 | ||
Total assets | 91,942 | 54,522 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities | 63,006 | 24,445 | ||
Non current liabilities | 862 | 1,300 | ||
Stockholder's equity | 28,074 | 28,777 | ||
Total liabilities and stockholders' equity | $ 91,942 | $ 54,522 |
Joint Venture - Schedule of Def
Joint Venture - Schedule of Deferred Intra Entity Profit Margin from Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Total change in deferred intra-entity profit margin from sales | $ 39 | $ 1,738 |
Joint venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Previously deferred intra-entity profit margin from sales - recognized | (2,348) | (215) |
Intra-entity profit margin from sales - deferred | 2,387 | 1,953 |
Total change in deferred intra-entity profit margin from sales | $ 39 | $ 1,738 |
Income Tax - Additional Informa
Income Tax - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Aug. 16, 2022 | |
Income Taxes [Line Items] | |||
Income tax expense | $ 341 | $ 431 | |
Corporate alternative minimum tax | 15% | ||
Excise tax | 1% | ||
Gross unrecognized tax benefits | 19,800 | ||
Uncertain tax benefits that, if realized, would affect the effective tax rate | $ 19,600 | ||
Subsequent period within which no material changes in unrecognized tax benefits are expected | 12 months | ||
Foreign | |||
Income Taxes [Line Items] | |||
Income tax expense | $ 300 | $ 400 |