Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2023 | Feb. 01, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | ACCURAY INCORPORATED | |
Entity Central Index Key | 0001138723 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2023 | |
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 | 99,168,765 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity File Number | 001-33301 | |
Entity Tax Identification Number | 20-8370041 | |
Entity Address, Address Line One | 1240 Deming Way | |
Entity Address, City or Town | Madison | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53717 | |
City Area Code | 608 | |
Local Phone Number | 824-2800 | |
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 | Dec. 31, 2023 | Jun. 30, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 72,756 | $ 89,402 | |
Restricted cash | 485 | 524 | |
Accounts receivable, net of allowance for credit losses of $2,866 and $3,079 as of December 31, 2023, and June 30, 2023, respectively | [1] | 77,397 | 74,777 |
Inventories | 155,228 | 145,150 | |
Prepaid expenses and other current assets | [2] | 25,020 | 27,612 |
Deferred cost of revenue | 284 | 568 | |
Total current assets | 331,170 | 338,033 | |
Property and equipment, net | 25,919 | 20,926 | |
Investment in joint venture | 14,536 | 15,128 | |
Operating lease right-of-use assets, net | 23,094 | 25,853 | |
Goodwill | 57,771 | 57,681 | |
Intangible assets, net | 116 | 210 | |
Restricted cash | 1,251 | 1,276 | |
Other assets | 22,493 | 20,107 | |
Total assets | 476,350 | 479,214 | |
Current liabilities: | |||
Accounts payable | 39,180 | 33,739 | |
Accrued compensation | 21,345 | 23,793 | |
Operating lease liabilities, current | 5,707 | 4,151 | |
Other accrued liabilities | 36,253 | 38,271 | |
Customer advances | 22,677 | 20,777 | |
Deferred revenue | 77,406 | 72,185 | |
Short-term debt | 6,738 | 5,721 | |
Total current liabilities | 209,306 | 198,637 | |
Long-term liabilities: | |||
Operating lease liabilities, non-current | 21,758 | 23,602 | |
Long-term other liabilities | 4,804 | 4,675 | |
Deferred revenue, non-current | 24,809 | 27,079 | |
Long-term debt | 168,020 | 171,562 | |
Total liabilities | 428,697 | 425,555 | |
Commitments and contingencies (Note 8) | |||
Stockholders' equity: | |||
Common stock, $0.001 par value; authorized: 200,000,000 shares as of December 31, 2023, and June 30, 2023, respectively; issued and outstanding: 99,163,920 and 96,534,609 shares at December 31, 2023, and June 30, 2023, respectively | 99 | 97 | |
Additional paid-in-capital | 561,223 | 555,276 | |
Accumulated other comprehensive income | 1,057 | 422 | |
Accumulated deficit | (514,726) | (502,136) | |
Total stockholders' equity | 47,653 | 53,659 | |
Total liabilities and stockholders' equity | $ 476,350 | $ 479,214 | |
[1] Includes accounts receivable from the joint venture, an equity method invest ment, of $ 19,893 and $ 10,304 at December 31, 2023, and June 30, 2023 , respectively. See Note 13. Includes other receivables from the joint venture, an equity method investment, of $ 67 and $ 100 at December 31, 2023, and June 30, 2023 , respectively. |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Accounts receivable, allowance for credit losses (in dollars) | $ 2,866 | $ 3,079 |
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 | 99,163,920 | 96,534,609 |
Common stock, outstanding shares | 99,163,920 | 96,534,609 |
Accounts Receivable | Corporate Joint Venture | ||
Accounts receivable from joint venture | $ 19,893 | $ 10,304 |
Prepaid Expenses and Other Current Assets | Corporate Joint Venture | ||
Accounts receivable from joint venture | $ 67 | $ 100 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Net revenue: | |||||
Total net revenue | $ 107,238 | $ 114,760 | $ 211,130 | $ 211,253 | |
Cost of revenue: | |||||
Total cost of revenue | [1] | 71,336 | 71,793 | 135,735 | 133,689 |
Gross profit | 35,902 | 42,967 | 75,395 | 77,564 | |
Operating expenses: | |||||
Research and development | [2] | 15,281 | 14,641 | 29,294 | 28,733 |
Selling and marketing | 11,361 | 13,586 | 21,605 | 24,381 | |
General and administrative | 13,224 | 12,035 | 26,247 | 23,927 | |
Total operating expenses | 39,866 | 40,262 | 77,146 | 77,041 | |
Income (loss) from operations | (3,964) | 2,705 | (1,751) | 523 | |
Income (loss) from equity method investment, net | (427) | (699) | 4 | (1,067) | |
Other expense, net | (4,352) | (2,831) | (8,033) | (5,389) | |
Loss before provision for income taxes | (8,743) | (825) | (9,780) | (5,933) | |
Provision for income taxes | 878 | 1,049 | 2,810 | 1,390 | |
Net loss | $ (9,621) | $ (1,874) | $ (12,590) | $ (7,323) | |
Net loss per share - basic | $ (0.1) | $ (0.02) | $ (0.13) | $ (0.08) | |
Net loss per share - diluted | $ (0.1) | $ (0.02) | $ (0.13) | $ (0.08) | |
Weighted average common shares used in computing net loss per share: | |||||
Basic | 97,776 | 94,567 | 97,165 | 94,048 | |
Diluted | 97,776 | 94,567 | 97,165 | 94,048 | |
Other comprehensive income (loss): | |||||
Net Income (Loss) | $ (9,621) | $ (1,874) | $ (12,590) | $ (7,323) | |
Foreign currency translation adjustment | 2,773 | 2,790 | 635 | (865) | |
Comprehensive income (loss) | (6,848) | 916 | (11,955) | (8,188) | |
Products | |||||
Net revenue: | |||||
Total net revenue | [3] | 51,538 | 63,269 | 104,888 | 107,892 |
Cost of revenue: | |||||
Total cost of revenue | 34,333 | 39,248 | 70,032 | 68,098 | |
Services | |||||
Net revenue: | |||||
Total net revenue | [4] | 55,700 | 51,491 | 106,242 | 103,361 |
Cost of revenue: | |||||
Total cost of revenue | $ 37,003 | $ 32,545 | $ 65,703 | $ 65,591 | |
[1] Includes cost of revenue from sales to the joint venture, an equity method investment, of $ 11,102 and $ 26,373 during the three and six months ended December 31, 2023 and $ 9,916 and $ 15,823 during the three and six months ended December 31, 2022. respectively . Includes charge backs to the joint venture, an equity method investment, related to research and development of $ 67 and $ 199 during the three and six months ended December 31, 2023 and $ 487 and $ 1,266 during the three and six months ended December 31, 2022 , respectively. Includes sales of products to the joint venture, an equity method investment, of $ 17,890 and $ 39,842 during the three and six months ended December 31, 2023 and $ 16,715 and $ 25,584 during the three and six months ended December 31, 2022 , respectively. See Note 13. Includes sales of services to the joint venture, an equity method investment, of $ 4,134 and $ 6,988 during the three and six months ended December 31, 2023 and $ 2,494 and $ 5,451 during the three and six months ended December 31, 2022 , respectively. See Note 13. |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Total net revenue | $ 107,238 | $ 114,760 | $ 211,130 | $ 211,253 | |
Total cost of revenue | [1] | 71,336 | 71,793 | 135,735 | 133,689 |
Research and development | [2] | 15,281 | 14,641 | 29,294 | 28,733 |
Products | |||||
Total net revenue | [3] | 51,538 | 63,269 | 104,888 | 107,892 |
Total cost of revenue | 34,333 | 39,248 | 70,032 | 68,098 | |
Services | |||||
Total net revenue | [4] | 55,700 | 51,491 | 106,242 | 103,361 |
Total cost of revenue | 37,003 | 32,545 | 65,703 | 65,591 | |
Revenue from Joint Venture | |||||
Total cost of revenue | 11,102 | 9,916 | 26,373 | 15,823 | |
Research and development | 67 | 487 | 199 | 1,266 | |
Revenue from Joint Venture | Products | |||||
Total net revenue | 17,890 | 16,715 | 39,842 | 25,584 | |
Revenue from Joint Venture | Services | |||||
Total net revenue | $ 4,134 | $ 2,494 | $ 6,988 | $ 5,451 | |
[1] Includes cost of revenue from sales to the joint venture, an equity method investment, of $ 11,102 and $ 26,373 during the three and six months ended December 31, 2023 and $ 9,916 and $ 15,823 during the three and six months ended December 31, 2022. respectively . Includes charge backs to the joint venture, an equity method investment, related to research and development of $ 67 and $ 199 during the three and six months ended December 31, 2023 and $ 487 and $ 1,266 during the three and six months ended December 31, 2022 , respectively. Includes sales of products to the joint venture, an equity method investment, of $ 17,890 and $ 39,842 during the three and six months ended December 31, 2023 and $ 16,715 and $ 25,584 during the three and six months ended December 31, 2022 , respectively. See Note 13. Includes sales of services to the joint venture, an equity method investment, of $ 4,134 and $ 6,988 during the three and six months ended December 31, 2023 and $ 2,494 and $ 5,451 during the three and six months ended December 31, 2022 , respectively. See Note 13. |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Jun. 30, 2022 | $ 53,189 | $ 94 | $ 543,211 | $ 2,406 | $ (492,522) |
Balance (in shares) at Jun. 30, 2022 | 93,500,000 | ||||
Issuance of common stock to employees, (In shares) | 279,000 | ||||
Share-based compensation | 2,906 | 2,906 | |||
Net Income (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 | 93,779,000 | ||||
Balance at Jun. 30, 2022 | 53,189 | $ 94 | 543,211 | 2,406 | (492,522) |
Balance (in shares) at Jun. 30, 2022 | 93,500,000 | ||||
Net Income (Loss) | (7,323) | ||||
Foreign currency translation adjustment | (865) | ||||
Balance at Dec. 31, 2022 | 51,745 | $ 95 | 550,288 | 1,541 | (500,179) |
Balance (in shares) at Dec. 31, 2022 | 95,494,000 | ||||
Balance at Sep. 30, 2022 | 46,991 | $ 94 | 546,117 | (1,249) | (497,971) |
Balance (in shares) at Sep. 30, 2022 | 93,779,000 | ||||
Issuance of common stock to employees | 1,139 | $ 1 | 1,138 | ||
Issuance of common stock to employees, (In shares) | 1,765,000 | ||||
Tax withholding upon vesting of restricted stock units | (116) | (116) | |||
Tax withholding upon vesting of restricted stock units (in shares) | (50,000) | ||||
Share-based compensation | 3,136 | 3,136 | |||
Net Income (Loss) | (1,874) | (1,874) | |||
Foreign currency translation adjustment | 2,790 | 2,790 | |||
Other | (321) | 13 | (334) | ||
Balance at Dec. 31, 2022 | 51,745 | $ 95 | 550,288 | 1,541 | (500,179) |
Balance (in shares) at Dec. 31, 2022 | 95,494,000 | ||||
Balance at Jun. 30, 2023 | $ 53,659 | $ 97 | 555,276 | 422 | (502,136) |
Balance (in shares) at Jun. 30, 2023 | 96,534,609 | 96,535,000 | |||
Issuance of common stock to employees, (In shares) | 192,000 | ||||
Share-based compensation | $ 2,392 | 2,392 | |||
Net Income (Loss) | (2,969) | (2,969) | |||
Foreign currency translation adjustment | (2,138) | (2,138) | |||
Balance at Sep. 30, 2023 | 50,944 | $ 97 | 557,668 | (1,716) | (505,105) |
Balance (in shares) at Sep. 30, 2023 | 96,727,000 | ||||
Balance at Jun. 30, 2023 | $ 53,659 | $ 97 | 555,276 | 422 | (502,136) |
Balance (in shares) at Jun. 30, 2023 | 96,534,609 | 96,535,000 | |||
Net Income (Loss) | $ (12,590) | ||||
Foreign currency translation adjustment | 635 | ||||
Balance at Dec. 31, 2023 | $ 47,653 | $ 99 | 561,223 | 1,057 | (514,726) |
Balance (in shares) at Dec. 31, 2023 | 99,163,920 | 99,164,000 | |||
Balance at Sep. 30, 2023 | $ 50,944 | $ 97 | 557,668 | (1,716) | (505,105) |
Balance (in shares) at Sep. 30, 2023 | 96,727,000 | ||||
Issuance of common stock to employees | 1,360 | $ 2 | 1,358 | ||
Issuance of common stock to employees, (In shares) | 2,484,000 | ||||
Tax withholding upon vesting of restricted stock units | (117) | (117) | |||
Tax withholding upon vesting of restricted stock units (in shares) | (47,000) | ||||
Share-based compensation | 2,314 | 2,314 | |||
Net Income (Loss) | (9,621) | (9,621) | |||
Foreign currency translation adjustment | 2,773 | 2,773 | |||
Balance at Dec. 31, 2023 | $ 47,653 | $ 99 | $ 561,223 | $ 1,057 | $ (514,726) |
Balance (in shares) at Dec. 31, 2023 | 99,163,920 | 99,164,000 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (12,590) | $ (7,323) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,797 | 2,327 |
Share-based compensation | 4,706 | 6,042 |
Amortization of debt issuance costs | 475 | 447 |
Provision (recoveries) for provision from credit losses | (218) | 68 |
Provision for write-down of inventories | 2,676 | 1,972 |
Loss on disposal of property and equipment | 5 | 2 |
(Income) loss on equity method investment | (4) | 1,067 |
Net revenue recognized from intra-entity profit margin from sales | (294) | (986) |
Changes in assets and liabilities: | ||
Accounts receivable | (357) | 5,701 |
Inventories | (14,641) | (14,237) |
Prepaid expenses and other assets | 1,269 | (2,488) |
Deferred cost of revenue | 293 | 817 |
Accounts payable | 5,103 | 3,037 |
Operating lease liabilities, net of operating lease right-of-use assets | (120) | 23 |
Accrued liabilities | (4,834) | (8,123) |
Customer advances | 1,551 | (8,203) |
Deferred revenues | 499 | 1,889 |
Net cash used in operating activities | (13,684) | (17,968) |
Cash flows from investing activities | ||
Purchases of property and equipment | (2,341) | (2,773) |
Purchase of intangible asset | 0 | (33) |
Net cash used in investing activities | (2,341) | (2,806) |
Cash flows from financing activities | ||
Proceeds from the issuance of common stock to employees | 1,360 | 1,139 |
Taxes paid related to net share settlement of equity awards | (117) | (116) |
Debt issuance costs | 0 | (248) |
Paydown under Term Loan Facility | (3,000) | (3,000) |
Repayments of convertible notes | 0 | (2,865) |
Borrowings under Revolving Credit Facility | 0 | 5,000 |
Net cash used in financing activities | (1,757) | (90) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,072 | (79) |
Net decrease in cash, cash equivalents and restricted cash | (16,710) | (20,943) |
Cash, cash equivalents and restricted cash at beginning of period | 91,202 | 90,154 |
Cash, cash equivalents and restricted cash at end of period | 74,492 | 69,211 |
Supplemental non-cash disclosure: | ||
Transfers from inventory to property and equipment, net | 2,911 | 0 |
Leasehold improvement from lease incentive | 2,593 | 0 |
Transfers from property and equipment, net to intangible assets | 0 | 59 |
Unpaid purchase of property and equipment | $ 212 | $ 316 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ (9,621) | $ (2,969) | $ (1,874) | $ (5,449) | $ (12,590) | $ (7,323) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
The Company and its Significant
The Company and its Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2023 | |
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 its headquarters are located in Madison, Wisconsin. 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 intercompany 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 (“U.S. 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 and six months ended December 31, 2023, are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2024, 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, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on September 7, 2023. Reclassifications Certain amounts on the unaudited condensed consolidated statements of cash flows and statements of stockholders' equity in prior periods have been reclassified to conform to current year presentation. Risks and Uncertainties The Company is subject to risks and uncertainties caused, directly or indirectly, by events with significant geopolitical and macroeconomic impacts, including, but not limited to, rising inflation; actions taken to counter inflation, including rising interest rates; foreign currency exchange rate fluctuations; uncertainty and volatility in the banking and financial services sector; tightening credit markets, the effects of the COVID-19 pandemic; geopolitical concerns, such as the Russia-Ukraine and Israel-Hamas conflicts and increasing tension between China and the U.S., including with respect to Taiwan; and other factors that may emerge. The Company is also continuing to navigate supply chain and inflation challenges, and adverse foreign currency exchange rate fluctuations, all of which continues to be a significant headwind that affects the Company’s results of operations. The Company expects that the business of its customers and its own business will continue to be adversely impacted, directly or indirectly, by these macroeconomic and geopolitical issues. Delays in deliveries and installations as a result of the COVID-19 pandemic and its effects on the global economic environment may continue, to some degree, through the remainder of calendar year 2024, which could have a negative impact on our revenue during such period. In addition, ongoing supply chain challenges and logistics costs, including difficulties in obtaining a sufficient supply of component materials and increased component costs, have adversely affected the Company's gross margins and net income or loss, and the Company’s current expectations are that gross margins and net income or loss will continue to be adversely affected by increased material costs and freight and logistic expenses through at least the remainder of fiscal year 2024, if not longer. Furthermore, certain parts required for the manufacturing and servicing of the Company's products, such as electronic components, are scarce and becoming increasingly difficult to source, even at increased prices. If such parts become unavailable to the Company, it would not be able to manufacture or service our products, which would adversely impact revenue, gross margins, and net income (loss). The extent of the ongoing impact of these macroeconomic events on our business, our markets and on global economic activity, however, is uncertain and the related financial impact cannot be reasonably estimated with any certainty at this time. The Company’s past results may not be indicative of its future performance, and historical trends, including conversion of backlog to revenue, income (loss) from operations, net income (loss), net income (loss) per share and cash flows may differ materially. The Company continues to critically review its liquidity and anticipated capital requirements in light of the significant uncertainty created by geopolitical and macroeconomic conditions. Based on the Company’s cash and cash equivalents balance, available debt facilities, current business plan and revenue prospects, the Company believes that it will have sufficient cash resources and anticipated cash flows to fund its operations for at least the next 12 months. The Company, however, is unable to predict with certainty the impact of geopolitical and macroeconomic conditions, including its effect on global supply chain and logistics, will have on its ability to maintain compliance with the debt covenants contained in the credit agreement related to its Credit Facilities, including financial covenants regarding the consolidated fixed charge coverage ratio and consolidated senior net leverage ratio. The Company was in compliance with such covenants at December 31, 2023. Failing to comply with these covenants could adversely affect the Company’s ability to finance its future operations or capital needs, withstand a future downturn in its business or the economy in general, engage in business activities, including future opportunities that may be in its interest, and plan for or react to market conditions or otherwise execute its business strategies. The Company’s ability to comply with the covenants and other terms governing the Credit Facilities will depend in part on its future operating performance. In addition, because substantially all of the Company’s assets are pledged as a security under the Credit Facilities, if the Company is not able to cure any default or repay outstanding borrowings, such assets are subject to the risk of foreclosure by the Company’s lenders. Failure to meet the covenant requirements in the future could cause the Company to be in default and the maturity of the related debt could be accelerated and become immediately payable. This may require the Company to obtain waivers or amendments to the credit agreement in order to maintain compliance and there can be no certainty that any such waiver or amendment will be available, or what the cost of such waiver or amendment, if obtained, would be. If the Company is unable to obtain necessary waivers or amendments and the debt under such credit facility is accelerated, the Company would be required to obtain replacement financing at prevailing market rates, which may not be favorable to the Company. There is no guarantee that the Company would be able to satisfy its obligations if any of its indebtedness is accelerated . Use of Estimates The preparation of unaudited condensed 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. A ctual results could differ materially from those estimates. Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies during the six months ended December 31, 2023, compared to the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended June 30, 2023 . Accounting Pronouncements Not Yet Effective In December 2023, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update (“ASU”) 2023-09 to improve the transparency and usefulness of income tax disclosures. The accounting standard expands disclosures to the entity’s income tax rate reconciliation table and requires cash taxes paid disaggregated by jurisdiction. These changes will be applied on a prospective basis. The update will be effective for annual periods beginning after December 15, 2024. The Company plans to adopt ASU 2023-09 on July 1, 2025. The Company is currently assessing the impact of this update on its consolidated financial statement disclosures. In November 2023, the FASB issued ASU 2023-07 to improve reportable segment disclosures. The ASU is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures to be disclosed in interim periods. The update is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company plans to adopt ASU 2023-07 on July 1, 2024. The ASU requires retrospective application to all prior periods presented in the financial statements. The Company is currently assessing the timing and impact of adopting the updated provisions. |
Revenue
Revenue | 6 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2. 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 payment terms 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 two or more years from the time of order to revenue recognition due to the Company’s long sales cycle. Changes in the contract assets and liabilities are as follows (dollars in thousands): Change December 31, June 30, $ % Contract Assets: Unbilled accounts receivable – current (1) $ 13,187 $ 9,847 3,340 34 % Interest receivable – current (2) 332 379 ( 47 ) ( 12 %) Long-term accounts receivable (3) 4,564 4,734 ( 170 ) ( 4 %) Interest receivable – non-current (3) 605 673 ( 68 ) ( 10 %) Contract Liabilities: Customer advances 22,677 20,777 1,900 9 % Deferred revenue – current 77,406 72,185 5,221 7 % Deferred revenue – non-current 24,809 27,079 ( 2,270 ) ( 8 %) (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 six months ended December 31, 2023, 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 six months ended December 31, 2023, contract liabilities changed due to changes in the timing of revenue recognition as a result of changes in shipping timing, modifications to the transaction price, reduced customer deposits for system sales and for which the warranty was deferred. During the three and six months ended December 31, 2023, the Company recognized revenue of $ 21.2 million and $ 51.2 million, which was included in the deferred revenue balances at June 30, 2023. During the three and six months ended December 31, 2022, the Company recognized revenue of $ 20.6 million and $ 55.5 million, which was included in the deferred revenue balances at June 30, 2022. 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 December 31, 2023, total remaining performance obligations amounted to $ 987.9 million. Of this total amount, $ 67.5 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 December 31, 2023 (in thousands): Fiscal years of revenue recognition 2024 2025 2026 Thereafter Long-term warranty and non-cancellable post-warranty services $ 15,979 $ 24,780 $ 18,225 $ 8,563 For the remaining $ 920.4 million of performance obligations (i.e., open systems sales, upgrades, training and other miscellaneous items), the Company estimates 28 % to 31 % 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 to 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 23 % of the Company’s $ 870.4 million open system sales contracts as of December 31, 2023, may never result in revenue. Capitalized Contract Costs As of December 31, 2023, and June 30, 2023, the balance of capitalized costs to obtain a contract was $ 12.5 million and $ 11.0 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 recognized expenses related to the amortization of the capitalized contract costs of $ 0.7 million and $ 1.6 million during the three and six months ended December 31, 2023, respectively, and $ 1.0 million and $ 1.9 million during the three and six months ended December 31, 2022, respectively. The Company recorded $ 0.1 million in capitalized contract impairment losses during both the three and six months ended December 31, 2023, and recorded $ 0.2 million and $ 0.4 million in capitalized contract impairment losses during the three and six months ended December 31, 2022 , respectively. |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Dec. 31, 2023 | |
Supplemental Financial Information Disclosure [Abstract] | |
Supplemental Financial Information | Note 3. 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 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 orders 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): December 31, June 30, Financing receivables $ 4,717 $ 5,854 Allowance for credit losses ( 798 ) ( 798 ) Total, net $ 3,919 $ 5,056 Reported as: Current $ 1,604 $ 2,016 Non-current 2,315 3,040 Total, net $ 3,919 $ 5,056 Inventories Inventories consisted of the following (in thousands): December 31, June 30, Raw materials $ 63,699 $ 62,945 Work-in-process 16,387 17,469 Finished goods 75,142 64,736 Inventories $ 155,228 $ 145,150 The Company's inventories on the unaudited condensed consolidated balance sheets are net of reserves. Prepaid and Other Current Assets Prepaid and other current assets consisted of the following (in thousands): December 31, June 30, Value added tax receivables $ 7,321 $ 11,718 Prepaid commissions 5,906 5,866 Capitalized contract costs 1,800 1,782 Other prepaid assets 6,495 5,763 Other current assets 3,498 2,483 Total prepaid and other current assets $ 25,020 $ 27,612 Property and equipment, net Property and equipment, net, consisted of the following (in thousands): December 31, June 30, Furniture and fixtures $ 1,848 $ 1,581 Computer and office equipment 7,781 7,798 Software 13,238 5,191 Leasehold improvements 35,667 26,641 Machinery and equipment 44,649 44,779 Construction in progress 3,426 13,499 106,609 99,489 Less: Accumulated depreciation ( 80,690 ) ( 78,563 ) Property and equipment, net $ 25,919 $ 20,926 At December 31, 2023, software includ es $ 8.1 million in capitalized costs for the completed transition of the Company's new enterprise resource planning system in August 2023. The Company will depreciate the enterprise resource planning system over five years. Depreciation expense related to property and equipment was $ 1.5 million and $ 2.7 million during the three and six months ended December 31, 2023, respectively, and $ 1.1 million and $ 2.2 million during the three and six months ended December 31, 2022, respectively. Other Assets Other assets consisted of the following (in thousands): December 31, June 30, Capitalized contract costs $ 10,736 $ 9,244 Long-term accounts receivable 4,564 4,734 Capitalized software costs to be sold 3,624 2,853 Other long-term assets 3,569 3,276 Total other assets $ 22,493 $ 20,107 Other Accrued Liabilities Other accrued liabilities consisted of the following (in thousands): December 31, June 30, Value added tax liabilities $ 8,540 $ 12,368 Commissions due to third parties 8,777 10,499 Refunds due to customers 4,041 3,364 Accrued consulting 1,246 2,599 Accrued royalties 2,518 2,398 Income tax payable 1,869 900 Other liabilities 9,262 6,143 Total other accrued liabilities $ 36,253 $ 38,271 Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income 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 in the stockholders' equity section of the Company’s unaudited condensed consolidated balance sheets are as follows (in thousands): December 31, June 30, Cumulative foreign currency translation adjustment $ ( 1,697 ) $ ( 2,332 ) Defined benefit pension obligation 2,754 2,754 Accumulated other comprehensive income $ 1,057 $ 422 Statements of Operations Other expense, net, consisted of the following (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Interest expense $ ( 2,922 ) $ ( 2,644 ) $ ( 5,844 ) $ ( 4,906 ) Foreign currency exchange loss ( 1,278 ) ( 33 ) ( 2,234 ) ( 284 ) Other, net ( 152 ) ( 154 ) 45 ( 199 ) Total other expense, net $ ( 4,352 ) $ ( 2,831 ) $ ( 8,033 ) $ ( 5,389 ) |
Leases
Leases | 6 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 4. 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. The following table provides information related to the Company’s operating leases: Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease costs (1) $ 2,456 $ 2,314 $ 5,010 $ 4,651 Short-term operating lease costs $ 72 $ 130 $ 133 $ 231 Cash paid for amounts included in the measurement of lease liabilities $ 2,536 $ 2,211 $ 5,025 $ 4,443 (1) Excludes e xpenses related to short-term lease operating costs. Operating lease right-of-use assets and operating lease liabilities consisted of the following (in thousands): December 31, June 30, Operating lease right-of-use assets Balance at the beginning of period $ 25,853 $ 16,798 Lease assets added 1,046 17,157 Amortization for the period ( 3,805 ) ( 8,102 ) Balance at the end of period $ 23,094 $ 25,853 Operating lease liabilities Balance at the beginning of period $ 27,753 $ 19,020 Lease liabilities added 3,361 16,834 Repayment and interest accretion ( 3,649 ) ( 8,101 ) Balance at the end of period $ 27,465 $ 27,753 Current portion of operating lease liabilities $ 5,707 $ 4,151 Non-current portion of operating lease liabilities 21,758 23,602 Maturities of operating lease liabilities as of December 31, 2023, are presented in the table below (dollars in thousands): Amount 2024 (remaining six months) $ 3,955 2025 4,094 2026 3,736 2027 3,638 2028 3,349 Thereafter 23,306 Total operating lease payments 42,078 Less: imputed interest ( 14,613 ) Present value of operating lease liabilities $ 27,465 Weighted average remaining lease term (in years) 9.0 Weighted average discount rate 9.8 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill Activity related to goodwill consisted of the following (in thousands): December 31, June 30, Balance at the beginning of the period $ 57,681 $ 57,840 Currency translation 90 ( 159 ) Balance at the end of the period $ 57,771 $ 57,681 The Company performed its annual goodwill impairment test in the second quarter of fiscal year 2024, and determined that there was no impairment to goodwill. 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, consisted of the following (in thousands): December 31, 2023 June 30, 2023 Gross Accumulated Net Gross Accumulated Net Patent license $ 1,000 $ ( 964 ) $ 36 $ 1,000 $ ( 893 ) $ 107 Other intangibles 132 ( 52 ) 80 132 ( 29 ) 103 Total intangible assets $ 1,132 $ ( 1,016 ) $ 116 $ 1,132 $ ( 922 ) $ 210 The Company did not identify any triggering events that would indicate a potential impairment of its definite-lived intangible and long-lived assets as of December 31, 2023. The estimated future amortization expense of acquired intangible assets, net, as of December 31, 2023, is as follows (in thousands): Amount 2024 (remaining six months) $ 58 2025 44 2026 14 Total estimated future amortization expense $ 116 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 6. 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 primarily include the Japanese Yen, Swiss Franc, and Euro. 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 notional amount of the Company's outstanding forward currency exchange contracts consisted of the following (in thousands): December 31, June 30, Swiss Franc $ 45,238 $ 26,867 Chinese Yuan 6,191 249 Euro 20,545 17,885 British Pound 736 516 Indian Rupee 6,356 3,539 Korean Won 2,338 — Japanese Yen 18,799 12,492 Total outstanding forward currency exchange contracts $ 100,203 $ 61,548 Gains and losses on the Company's foreign currency forward contracts are recorded in Other expense, net, on the Company's unaudited condensed consolidated statements of operations. The following table provides information about the gain or loss associated with the Company’s derivative financial instruments not designated as hedging instruments (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Foreign currency exchange gain on forward contracts $ 959 $ 363 $ 141 $ 761 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7. 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 December 31, 2023, the Company had open currency forward contracts to purchase or sell foreign currencies with a stated or notional value of $ 100.2 million. The fair value of the underlying currency, based upon the December 31, 2023 exchange rate, was $ 100.4 million, which it considers to be a Level 2 fair value measurement. As of June 30, 2023, the Company had open currency forward contracts to purchase or sell foreign currencies with a stated or notional value of $ 61.5 million. The fair value of the underlying currency, based upon the June 30, 2023 exchange rate, was $ 61.2 million, which it considers to be a Level 2 fair value measurement. The Company’s convertible debt is measured on a recurring basis using Level 2 based upon observable inputs. The Company's Revolving Credit Facility and Term Loan Facility (as defined in Note 9) collectively (the “Credit Facilities”) reflect 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 the Credit Facilities approximates its estimated fair value based on the effective interest rate, compared to the current market rate available to the Company at quarter-end. The table below summarizes the carrying value and estimated fair value of the 3.75 % Convertible Senior Notes due 2026, Term Loan Facility, and the Revolving Credit Facility (in thousands): December 31, June 30, Carrying Fair Carrying Fair 3.75 % Convertible Notes due 2026 $ 98,483 $ 91,349 $ 98,189 $ 98,265 Term Loan Facility 66,275 66,275 69,094 69,094 Revolving Credit Facility 10,000 10,000 10,000 10,000 Total $ 174,758 $ 167,624 $ 177,283 $ 177,359 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. Commitments and Contingencies Litigation From time to time, the Company is involved in legal proceedings, including claims, investigations, and inquiries, 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 December 31, 2023. 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 December 31, 2023. Guarantees As of December 31, 2023 and June 30, 2023, the Company had various bank guarantees totaling $ 1.2 million and $ 1.3 million, respectively, primarily related to bidding processes with customers. Royalty Agreement The Company enters into software license agreements with third parties that require royalty payments for each license used. In connection with such agreements, the Company recorded royalty costs of $ 0.4 million and $ 0.9 million during the three and six months ended December 31, 2023, respectively, and $ 0.6 million and $ 1.1 million during the three and six months ended December 31, 2022, respectively, which were recorded in cost of revenue or deferred cost of revenue. The Company had approximately $ 2.5 million and $ 2.4 million in accrued royalty payments as of December 31, 2023, and June 30, 2023, respectively, related to royalty agreements. Restructuring Charges On October 25, 2023, the Company informed affected employees of a cost savings initiative to reduce operating expenses resulting in the elimination of approximately 5.9 percent of the Company’s global workforce. The Company recorded a charge of $ 2.6 million during the three months ended December 31, 2023. These charges are cash-based and are primarily related to severance expenses and other one-time termination benefits. The Company paid approximately $ 1.9 million in cash for the restructuring charges during the three months ended December 31, 2023. At December 31, 2023 , the Company has a remaining accrual of $ 0.7 million, which is included in accrued compensation on the unaudited condensed consolidated balance sheets, and expects to pay the remaining amounts over the remainder of fiscal year 2024. |
Debt
Debt | 6 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 9. Debt The Company's outstanding debt as of December 31, 2023 and June 30, 2023, is as follows (in thousands): December 31, 2023 June 30, 2023 Principal Amount Unamortized Debt Costs Net Carrying Amount Principal Amount Unamortized Debt Costs Net Carrying Amount 3.75% Convertible Senior Notes due 2026 $ 100,000 $ ( 1,517 ) $ 98,483 $ 100,000 $ ( 1,811 ) $ 98,189 Term Loan Facility 67,000 ( 725 ) 66,275 70,000 ( 906 ) 69,094 Revolving Credit Facility 10,000 — 10,000 10,000 — 10,000 Total debt $ 177,000 $ ( 2,242 ) $ 174,758 $ 180,000 $ ( 2,717 ) $ 177,283 Reported as: Short-term debt $ 6,738 $ 5,721 Long-term debt 168,020 171,562 Total debt $ 174,758 $ 177,283 3.75% Convertible Senior Notes due June 2026 In May 2021, the Company issued $ 100.0 million aggregate principal amount of its 3.75 % Convertible Senior Notes due June 2026 (the “ 3.75 % Convertible Notes due 2026”) under an indenture agreement between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. As of December 31, 2023 , the if-converted value of its 3.75 % Convertible Notes due 2026 did not exceed the outstanding principal amount. Credit Facilities The Company has a $ 40.0 million revolving credit facility (the “Revolving Credit Facility”) and a five-year $ 80.0 million term loan ( the “Term Loan Facility ”). In fiscal year 2024, interest on the borrowings under the Credit Facilities is payable in arrears on the applicable interest payment date, at an annual interest rate of reserve-adjusted, 90-day term Secured Overnight Financing Rate ( subject to a 0.50 % floor) plus a margin between 2.50 % and 3.25 % margin, determined by the Consolidated Senior Net Leverage Ratio (as defined in the credit agreement governing the Credit Facilities (the “Credit Agreement”)). The weighted average effective interest rate on the Term Loan Facility and Revolving Credit Facility was approximately 8.4 % during both the three and six months ended December 31, 2023. The Credit Agreement requires the Company to pay the lenders an unused commitment fee equal to the average unused portion of the Revolving Credit Facilit y. The Company pays a rate of 0.25 % to 0.40 % per annum of the average unused portion of the Revolving Credit Facility, determined by the Consolidated Senior Net Leverage Ratio (as defined in the Credit Agreement). If all or a portion of the loans under the Term Loan Facility are prepaid, then the Company will be required to pay a fee equal to 1 % of the aggregate amount of the loans so prepaid, subject to certain exceptions. The Credit Agreement contains restrictions and covenants applicable to the Company and its subsidiaries. Among other requirements, the Company may not permit the Fixed Charge Coverage Ratio (as defined in the Credit Agreement) to be less than a certain specified ratio for each fiscal quarter during the term of the Credit Agreement or the consolidated senior net leverage ratio to be greater than a certain specified ratio for each fiscal quarter during the term of the Credit Agreement. As of December 31, 2023, the Company was in compliance with its covenants under the Credit Agreement. A summary of interest expense on the 3.75% Convertible Notes due 2026, the Revolving Credit Facility, and the Term Loan Facility is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Interest expense related to contractual interest coupon $ 2,653 $ 2,362 $ 5,322 $ 4,394 Interest expense related to amortization of debt issuance costs 237 228 475 447 Total $ 2,890 $ 2,590 $ 5,797 $ 4,841 |
Stock Incentive Plan and Employ
Stock Incentive Plan and Employee Stock Purchase Plan | 6 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plan and Employee Stock Purchase Plan | Note 10. Stock Incentive Plan and Employee Stock Purchase Plan 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 Six Months Ended 2023 2022 2023 2022 Cost of revenue $ 390 $ 443 $ 626 $ 809 Research and development 280 403 681 771 Selling and marketing 437 458 845 944 General and administrative 1,207 1,822 2,554 3,518 Total share-based compensation $ 2,314 $ 3,126 $ 4,706 $ 6,042 On November 9, 2023, the Company’s stockholders approved amending and restating the Company’s 2016 Equity Incentive Plan to increase the number of shares of the Company’s common stock available for issuance by 5.0 million shares. |
Net Loss Per Common Share
Net Loss Per Common Share | 6 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Note 11. Net Loss Per Common Share The Company reports both basic and diluted net 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 Six Months Ended 2023 2022 2023 2022 Numerator: Net loss $ ( 9,621 ) $ ( 1,874 ) $ ( 12,590 ) $ ( 7,323 ) Denominator: Weighted average shares outstanding - basic and diluted 97,776 94,567 97,165 94,048 Basic and diluted net loss per share $ ( 0.10 ) $ ( 0.02 ) $ ( 0.13 ) $ ( 0.08 ) Anti-dilutive share-based awards, excluded 14,601 14,910 14,601 14,910 The potentially dilutive shares of the Company’s common stock are excluded from the computation of diluted net loss per share when their effect would have been anti‑dilutive. Additionally, the outstanding 3.75 % Convertible Notes due 2026 are included in the calculation of diluted net loss per share only if their inclusion is dilutive for periods during which the 3.75 % Convertible Notes due 2026 were outstanding. The shares of common stock issuable upon conversion of the outstanding principal amount of the 3.75 % Convertible Notes due 2026 as of three and six months ended December 31, 2023 and 2022 totaled approximately 17.1 million shares and were not included in the basic and diluted net loss per common share as the effect of adding the shares were anti-dilutive. |
Segment Information
Segment Information | 6 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12. 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. The Company reports its customer revenues in four geographic regions: the Americas, EIMEA, Asia Pacific and Japan. The Americas region primarily includes the United States, Canada, and Latin America. The EIMEA region includes Europe, India, the Middle East and Africa. The Asia Pacific region consists of Asia, Australia and New Zealand. 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. Revenues attributed to a country or region are based on the shipping address of the Company’s customers. Additionally, the Company typically recognizes revenue at a point in time for product revenue and recognizes revenue over time for service revenue. The following summarizes revenue by geographic region (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Americas $ 23,742 $ 27,919 $ 44,299 $ 55,204 EIMEA 43,800 39,664 83,333 76,410 China 23,375 22,278 49,590 35,278 Japan 10,648 15,700 23,240 27,188 Asia Pacific, excluding China 5,673 9,199 10,668 17,173 Total $ 107,238 $ 114,760 $ 211,130 $ 211,253 Disaggregation of Long-Lived Assets Information regarding geographic areas in which the Company has long-lived assets, which consists of property, plant and equipment, net, and operating lease right-of-use assets are as follows (in thousands): December 31, June 30, 2023 2023 Americas $ 44,360 $ 41,569 EIMEA 2,369 3,074 China 1,139 501 Japan 803 1,096 Asia Pacific, excluding China 342 539 Total $ 49,013 $ 46,779 |
Joint Venture
Joint Venture | 6 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture | Note 13. Joint Venture In January 2019, the Company’s wholly-owned subsidiary, Accuray Asia Limited (“Accuray Asia”), entered into an agreement with CNNC High Energy Equipment (Tianjin) Co., Ltd. (the “CIRC Subsidiary”), a wholly-owned subsidiary of China Isotope & Radiation Corporation, to form a joint venture, CNNC Accuray (Tianjin) Medical Technology Co. Ltd. (the “JV”), to manufacture and sell radiation oncology systems in China. As of December 31, 2023 , 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 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 the 49 % proportionate share of the JV income or loss on a one-quarter lag due to the timing of the availability of the JV’s financial records. 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. The following table shows the reconciliation between the carrying value of the Company's investment in the JV and its proportional share of the underlying equity in net assets of the JV (in thousands): December 31, June 30, Carrying value of investment in joint venture $ 14,536 $ 15,128 Deferred intra-entity profit margin 5,443 5,737 Equity method goodwill ( 4,720 ) ( 4,720 ) Proportional share of equity investment in joint venture $ 15,259 $ 16,145 As of December 31, 2023, the Company’s carrying value of the investment in the JV was decreased for the Company's proportional share of the JV's currency translation adjustment by $ 0.9 million. As of June 30, 2023, the Co mpany’s carrying value of the investment in the JV for the Company's proportional share of the JV's currency translation adjustment was not material. Summarized financial information of the JV is as follows (in thousands): Three Months Ended Six Months Ended Statement of Operations Data: 2023 2022 2023 2022 Revenue $ 22,457 $ 23,983 $ 54,312 $ 50,723 Gross profit 2,800 3,719 8,613 8,315 Net income (loss) ( 872 ) ( 1,416 ) 7 ( 2,168 ) Net income (loss) attributable to the Company ( 427 ) ( 699 ) 4 ( 1,067 ) Summarized Balance Sheet Data: As of As of Assets Current assets $ 94,504 $ 74,525 Non-current assets 13,576 17,658 Total assets $ 108,080 $ 92,183 Liabilities and Stockholders' Equity Current liabilities $ 76,338 $ 66,618 Non-current liabilities 174 669 Stockholders' equity 31,568 24,896 Total liabilities and stockholders' equity $ 108,080 $ 92,183 The following table shows the activity of the Company’s net revenue recognized from intra-entity profit margin from sales (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Sales recognized from released deferred intra-entity profit margin $ 4,728 $ 4,067 $ 6,313 $ 6,415 Deferred intra-entity profit margin from sales ( 2,858 ) ( 3,042 ) ( 6,019 ) ( 5,429 ) Net revenue recognized from intra-entity profit margin from sales (1) $ 1,870 $ 1,025 $ 294 $ 986 (1) Profit earned by the Company from the JV is eliminated through cost of goods sold until it is realized; such profits would generally be considered realized when the inventory has been sold through to third parties. |
Income Tax
Income Tax | 6 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Note 14. 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, which were primarily related to foreign taxes, of $ 0.9 million and $ 2.8 million during the three and six months ended December 31, 2023, respectively, and $ 1.0 million and $ 1.4 million during the three and six months ended December 31, 2022, respectively. 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 2024. There is no material impact on the Company’s unaudited condensed consolidated financial statements for fiscal year 2024 relating to the change in U.S. tax law that requires capitalization and amortization of research and experimental expenditures incurred after July 1, 2022 which has been fully offset by pre-2018 net operating loss carryforwards. The Company will continue to evaluate the impact of this tax law change on future periods. As of December 31, 2023 , the Company’s gross unrecognized tax benefits were $ 21.6 million, of which $ 21.2 million 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 and are recorded as a component of income tax expense. |
The Company and its Significa_2
The Company and its Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
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 intercompany 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 (“U.S. 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 and six months ended December 31, 2023, are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2024, 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, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on September 7, 2023. |
Reclassifications | Reclassifications Certain amounts on the unaudited condensed consolidated statements of cash flows and statements of stockholders' equity in prior periods have been reclassified to conform to current year presentation. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to risks and uncertainties caused, directly or indirectly, by events with significant geopolitical and macroeconomic impacts, including, but not limited to, rising inflation; actions taken to counter inflation, including rising interest rates; foreign currency exchange rate fluctuations; uncertainty and volatility in the banking and financial services sector; tightening credit markets, the effects of the COVID-19 pandemic; geopolitical concerns, such as the Russia-Ukraine and Israel-Hamas conflicts and increasing tension between China and the U.S., including with respect to Taiwan; and other factors that may emerge. The Company is also continuing to navigate supply chain and inflation challenges, and adverse foreign currency exchange rate fluctuations, all of which continues to be a significant headwind that affects the Company’s results of operations. The Company expects that the business of its customers and its own business will continue to be adversely impacted, directly or indirectly, by these macroeconomic and geopolitical issues. Delays in deliveries and installations as a result of the COVID-19 pandemic and its effects on the global economic environment may continue, to some degree, through the remainder of calendar year 2024, which could have a negative impact on our revenue during such period. In addition, ongoing supply chain challenges and logistics costs, including difficulties in obtaining a sufficient supply of component materials and increased component costs, have adversely affected the Company's gross margins and net income or loss, and the Company’s current expectations are that gross margins and net income or loss will continue to be adversely affected by increased material costs and freight and logistic expenses through at least the remainder of fiscal year 2024, if not longer. Furthermore, certain parts required for the manufacturing and servicing of the Company's products, such as electronic components, are scarce and becoming increasingly difficult to source, even at increased prices. If such parts become unavailable to the Company, it would not be able to manufacture or service our products, which would adversely impact revenue, gross margins, and net income (loss). The extent of the ongoing impact of these macroeconomic events on our business, our markets and on global economic activity, however, is uncertain and the related financial impact cannot be reasonably estimated with any certainty at this time. The Company’s past results may not be indicative of its future performance, and historical trends, including conversion of backlog to revenue, income (loss) from operations, net income (loss), net income (loss) per share and cash flows may differ materially. The Company continues to critically review its liquidity and anticipated capital requirements in light of the significant uncertainty created by geopolitical and macroeconomic conditions. Based on the Company’s cash and cash equivalents balance, available debt facilities, current business plan and revenue prospects, the Company believes that it will have sufficient cash resources and anticipated cash flows to fund its operations for at least the next 12 months. The Company, however, is unable to predict with certainty the impact of geopolitical and macroeconomic conditions, including its effect on global supply chain and logistics, will have on its ability to maintain compliance with the debt covenants contained in the credit agreement related to its Credit Facilities, including financial covenants regarding the consolidated fixed charge coverage ratio and consolidated senior net leverage ratio. The Company was in compliance with such covenants at December 31, 2023. Failing to comply with these covenants could adversely affect the Company’s ability to finance its future operations or capital needs, withstand a future downturn in its business or the economy in general, engage in business activities, including future opportunities that may be in its interest, and plan for or react to market conditions or otherwise execute its business strategies. The Company’s ability to comply with the covenants and other terms governing the Credit Facilities will depend in part on its future operating performance. In addition, because substantially all of the Company’s assets are pledged as a security under the Credit Facilities, if the Company is not able to cure any default or repay outstanding borrowings, such assets are subject to the risk of foreclosure by the Company’s lenders. Failure to meet the covenant requirements in the future could cause the Company to be in default and the maturity of the related debt could be accelerated and become immediately payable. This may require the Company to obtain waivers or amendments to the credit agreement in order to maintain compliance and there can be no certainty that any such waiver or amendment will be available, or what the cost of such waiver or amendment, if obtained, would be. If the Company is unable to obtain necessary waivers or amendments and the debt under such credit facility is accelerated, the Company would be required to obtain replacement financing at prevailing market rates, which may not be favorable to the Company. There is no guarantee that the Company would be able to satisfy its obligations if any of its indebtedness is accelerated . |
Use of Estimates | Use of Estimates The preparation of unaudited condensed 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. A ctual results could differ materially from those estimates. |
Significant Accounting Policies | Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies during the six months ended December 31, 2023, compared to the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended June 30, 2023 . |
Accounting Pronouncements Not Yet Effective | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Accounting Pronouncements Not Yet Effective | Accounting Pronouncements Not Yet Effective In December 2023, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update (“ASU”) 2023-09 to improve the transparency and usefulness of income tax disclosures. The accounting standard expands disclosures to the entity’s income tax rate reconciliation table and requires cash taxes paid disaggregated by jurisdiction. These changes will be applied on a prospective basis. The update will be effective for annual periods beginning after December 15, 2024. The Company plans to adopt ASU 2023-09 on July 1, 2025. The Company is currently assessing the impact of this update on its consolidated financial statement disclosures. In November 2023, the FASB issued ASU 2023-07 to improve reportable segment disclosures. The ASU is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures to be disclosed in interim periods. The update is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company plans to adopt ASU 2023-07 on July 1, 2024. The ASU requires retrospective application to all prior periods presented in the financial statements. The Company is currently assessing the timing and impact of adopting the updated provisions. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract with Customer, Asset and Liability | Changes in the contract assets and liabilities are as follows (dollars in thousands): Change December 31, June 30, $ % Contract Assets: Unbilled accounts receivable – current (1) $ 13,187 $ 9,847 3,340 34 % Interest receivable – current (2) 332 379 ( 47 ) ( 12 %) Long-term accounts receivable (3) 4,564 4,734 ( 170 ) ( 4 %) Interest receivable – non-current (3) 605 673 ( 68 ) ( 10 %) Contract Liabilities: Customer advances 22,677 20,777 1,900 9 % Deferred revenue – current 77,406 72,185 5,221 7 % Deferred revenue – non-current 24,809 27,079 ( 2,270 ) ( 8 %) (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 December 31, 2023 (in thousands): Fiscal years of revenue recognition 2024 2025 2026 Thereafter Long-term warranty and non-cancellable post-warranty services $ 15,979 $ 24,780 $ 18,225 $ 8,563 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Supplemental Financial Information Disclosure [Abstract] | |
Schedule of Financing Receivables | A summary of the Company’s financing receivables is presented as follows (in thousands): December 31, June 30, Financing receivables $ 4,717 $ 5,854 Allowance for credit losses ( 798 ) ( 798 ) Total, net $ 3,919 $ 5,056 Reported as: Current $ 1,604 $ 2,016 Non-current 2,315 3,040 Total, net $ 3,919 $ 5,056 |
Schedule of Inventories | Inventories consisted of the following (in thousands): December 31, June 30, Raw materials $ 63,699 $ 62,945 Work-in-process 16,387 17,469 Finished goods 75,142 64,736 Inventories $ 155,228 $ 145,150 |
Schedule of Prepaid and Other Current Assets | Prepaid and other current assets consisted of the following (in thousands): December 31, June 30, Value added tax receivables $ 7,321 $ 11,718 Prepaid commissions 5,906 5,866 Capitalized contract costs 1,800 1,782 Other prepaid assets 6,495 5,763 Other current assets 3,498 2,483 Total prepaid and other current assets $ 25,020 $ 27,612 |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): December 31, June 30, Furniture and fixtures $ 1,848 $ 1,581 Computer and office equipment 7,781 7,798 Software 13,238 5,191 Leasehold improvements 35,667 26,641 Machinery and equipment 44,649 44,779 Construction in progress 3,426 13,499 106,609 99,489 Less: Accumulated depreciation ( 80,690 ) ( 78,563 ) Property and equipment, net $ 25,919 $ 20,926 |
Schedule of Other Assets | Other assets consisted of the following (in thousands): December 31, June 30, Capitalized contract costs $ 10,736 $ 9,244 Long-term accounts receivable 4,564 4,734 Capitalized software costs to be sold 3,624 2,853 Other long-term assets 3,569 3,276 Total other assets $ 22,493 $ 20,107 |
Schedule of Other Accrued Liabilities | Other accrued liabilities consisted of the following (in thousands): December 31, June 30, Value added tax liabilities $ 8,540 $ 12,368 Commissions due to third parties 8,777 10,499 Refunds due to customers 4,041 3,364 Accrued consulting 1,246 2,599 Accrued royalties 2,518 2,398 Income tax payable 1,869 900 Other liabilities 9,262 6,143 Total other accrued liabilities $ 36,253 $ 38,271 |
Schedule of Accumulated Other Comprehensive Income (loss) in the Stockholders' Equity Section | The components of accumulated other comprehensive income in the stockholders' equity section of the Company’s unaudited condensed consolidated balance sheets are as follows (in thousands): December 31, June 30, Cumulative foreign currency translation adjustment $ ( 1,697 ) $ ( 2,332 ) Defined benefit pension obligation 2,754 2,754 Accumulated other comprehensive income $ 1,057 $ 422 |
Schedule of Statements of Operations | Other expense, net, consisted of the following (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Interest expense $ ( 2,922 ) $ ( 2,644 ) $ ( 5,844 ) $ ( 4,906 ) Foreign currency exchange loss ( 1,278 ) ( 33 ) ( 2,234 ) ( 284 ) Other, net ( 152 ) ( 154 ) 45 ( 199 ) Total other expense, net $ ( 4,352 ) $ ( 2,831 ) $ ( 8,033 ) $ ( 5,389 ) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Leases | The following table provides information related to the Company’s operating leases: Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease costs (1) $ 2,456 $ 2,314 $ 5,010 $ 4,651 Short-term operating lease costs $ 72 $ 130 $ 133 $ 231 Cash paid for amounts included in the measurement of lease liabilities $ 2,536 $ 2,211 $ 5,025 $ 4,443 (1) Excludes e xpenses related to short-term lease operating costs. |
Schedule of Operating Lease Right-of-use Assets and Operating Lease Liabilities | Operating lease right-of-use assets and operating lease liabilities consisted of the following (in thousands): December 31, June 30, Operating lease right-of-use assets Balance at the beginning of period $ 25,853 $ 16,798 Lease assets added 1,046 17,157 Amortization for the period ( 3,805 ) ( 8,102 ) Balance at the end of period $ 23,094 $ 25,853 Operating lease liabilities Balance at the beginning of period $ 27,753 $ 19,020 Lease liabilities added 3,361 16,834 Repayment and interest accretion ( 3,649 ) ( 8,101 ) Balance at the end of period $ 27,465 $ 27,753 Current portion of operating lease liabilities $ 5,707 $ 4,151 Non-current portion of operating lease liabilities 21,758 23,602 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of December 31, 2023, are presented in the table below (dollars in thousands): Amount 2024 (remaining six months) $ 3,955 2025 4,094 2026 3,736 2027 3,638 2028 3,349 Thereafter 23,306 Total operating lease payments 42,078 Less: imputed interest ( 14,613 ) Present value of operating lease liabilities $ 27,465 Weighted average remaining lease term (in years) 9.0 Weighted average discount rate 9.8 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Activity related to goodwill consisted of the following (in thousands): December 31, June 30, Balance at the beginning of the period $ 57,681 $ 57,840 Currency translation 90 ( 159 ) Balance at the end of the period $ 57,771 $ 57,681 |
Schedule of carrying amount of acquired intangible assets, net | The Company’s carrying amount of acquired intangible assets, net, consisted of the following (in thousands): December 31, 2023 June 30, 2023 Gross Accumulated Net Gross Accumulated Net Patent license $ 1,000 $ ( 964 ) $ 36 $ 1,000 $ ( 893 ) $ 107 Other intangibles 132 ( 52 ) 80 132 ( 29 ) 103 Total intangible assets $ 1,132 $ ( 1,016 ) $ 116 $ 1,132 $ ( 922 ) $ 210 |
Schedule of estimated future amortization expense of acquired intangible assets, net | The estimated future amortization expense of acquired intangible assets, net, as of December 31, 2023, is as follows (in thousands): Amount 2024 (remaining six months) $ 58 2025 44 2026 14 Total estimated future amortization expense $ 116 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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 consisted of the following (in thousands): December 31, June 30, Swiss Franc $ 45,238 $ 26,867 Chinese Yuan 6,191 249 Euro 20,545 17,885 British Pound 736 516 Indian Rupee 6,356 3,539 Korean Won 2,338 — Japanese Yen 18,799 12,492 Total outstanding forward currency exchange contracts $ 100,203 $ 61,548 |
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 not designated as hedging instruments (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Foreign currency exchange gain on forward contracts $ 959 $ 363 $ 141 $ 761 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Values and Estimated Fair Values of Short-Term and Long-Term Debt | The table below summarizes the carrying value and estimated fair value of the 3.75 % Convertible Senior Notes due 2026, Term Loan Facility, and the Revolving Credit Facility (in thousands): December 31, June 30, Carrying Fair Carrying Fair 3.75 % Convertible Notes due 2026 $ 98,483 $ 91,349 $ 98,189 $ 98,265 Term Loan Facility 66,275 66,275 69,094 69,094 Revolving Credit Facility 10,000 10,000 10,000 10,000 Total $ 174,758 $ 167,624 $ 177,283 $ 177,359 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values of all Debt | The Company's outstanding debt as of December 31, 2023 and June 30, 2023, is as follows (in thousands): December 31, 2023 June 30, 2023 Principal Amount Unamortized Debt Costs Net Carrying Amount Principal Amount Unamortized Debt Costs Net Carrying Amount 3.75% Convertible Senior Notes due 2026 $ 100,000 $ ( 1,517 ) $ 98,483 $ 100,000 $ ( 1,811 ) $ 98,189 Term Loan Facility 67,000 ( 725 ) 66,275 70,000 ( 906 ) 69,094 Revolving Credit Facility 10,000 — 10,000 10,000 — 10,000 Total debt $ 177,000 $ ( 2,242 ) $ 174,758 $ 180,000 $ ( 2,717 ) $ 177,283 Reported as: Short-term debt $ 6,738 $ 5,721 Long-term debt 168,020 171,562 Total debt $ 174,758 $ 177,283 |
Summary of Interest Expense on Notes and the Revolving Credit Facility, and the Term Loan Facility | A summary of interest expense on the 3.75% Convertible Notes due 2026, the Revolving Credit Facility, and the Term Loan Facility is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Interest expense related to contractual interest coupon $ 2,653 $ 2,362 $ 5,322 $ 4,394 Interest expense related to amortization of debt issuance costs 237 228 475 447 Total $ 2,890 $ 2,590 $ 5,797 $ 4,841 |
Stock Incentive Plan and Empl_2
Stock Incentive Plan and Employee Stock Purchase Plan (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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 Six Months Ended 2023 2022 2023 2022 Cost of revenue $ 390 $ 443 $ 626 $ 809 Research and development 280 403 681 771 Selling and marketing 437 458 845 944 General and administrative 1,207 1,822 2,554 3,518 Total share-based compensation $ 2,314 $ 3,126 $ 4,706 $ 6,042 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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 Six Months Ended 2023 2022 2023 2022 Numerator: Net loss $ ( 9,621 ) $ ( 1,874 ) $ ( 12,590 ) $ ( 7,323 ) Denominator: Weighted average shares outstanding - basic and diluted 97,776 94,567 97,165 94,048 Basic and diluted net loss per share $ ( 0.10 ) $ ( 0.02 ) $ ( 0.13 ) $ ( 0.08 ) Anti-dilutive share-based awards, excluded 14,601 14,910 14,601 14,910 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | The following summarizes revenue by geographic region (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Americas $ 23,742 $ 27,919 $ 44,299 $ 55,204 EIMEA 43,800 39,664 83,333 76,410 China 23,375 22,278 49,590 35,278 Japan 10,648 15,700 23,240 27,188 Asia Pacific, excluding China 5,673 9,199 10,668 17,173 Total $ 107,238 $ 114,760 $ 211,130 $ 211,253 |
Schedule of Geographic Areas in Which the Company has Long-Lived Assets, Property, Plant and Equipment Net, and Operating Lease Right of Use Assets | Information regarding geographic areas in which the Company has long-lived assets, which consists of property, plant and equipment, net, and operating lease right-of-use assets are as follows (in thousands): December 31, June 30, 2023 2023 Americas $ 44,360 $ 41,569 EIMEA 2,369 3,074 China 1,139 501 Japan 803 1,096 Asia Pacific, excluding China 342 539 Total $ 49,013 $ 46,779 |
Joint Venture (Tables)
Joint Venture (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
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 the Company's investment in the JV and its proportional share of the underlying equity in net assets of the JV (in thousands): December 31, June 30, Carrying value of investment in joint venture $ 14,536 $ 15,128 Deferred intra-entity profit margin 5,443 5,737 Equity method goodwill ( 4,720 ) ( 4,720 ) Proportional share of equity investment in joint venture $ 15,259 $ 16,145 |
Summary of Financial Information of Joint Ventures (Operations Data) | Summarized financial information of the JV is as follows (in thousands): Three Months Ended Six Months Ended Statement of Operations Data: 2023 2022 2023 2022 Revenue $ 22,457 $ 23,983 $ 54,312 $ 50,723 Gross profit 2,800 3,719 8,613 8,315 Net income (loss) ( 872 ) ( 1,416 ) 7 ( 2,168 ) Net income (loss) attributable to the Company ( 427 ) ( 699 ) 4 ( 1,067 ) |
Summary of Financial Information of Joint Ventures (Balance Sheet Data) | Summarized Balance Sheet Data: As of As of Assets Current assets $ 94,504 $ 74,525 Non-current assets 13,576 17,658 Total assets $ 108,080 $ 92,183 Liabilities and Stockholders' Equity Current liabilities $ 76,338 $ 66,618 Non-current liabilities 174 669 Stockholders' equity 31,568 24,896 Total liabilities and stockholders' equity $ 108,080 $ 92,183 |
Schedule of Net Revenue Recognized From Intra Entity Profit Margin | The following table shows the activity of the Company’s net revenue recognized from intra-entity profit margin from sales (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Sales recognized from released deferred intra-entity profit margin $ 4,728 $ 4,067 $ 6,313 $ 6,415 Deferred intra-entity profit margin from sales ( 2,858 ) ( 3,042 ) ( 6,019 ) ( 5,429 ) Net revenue recognized from intra-entity profit margin from sales (1) $ 1,870 $ 1,025 $ 294 $ 986 (1) Profit earned by the Company from the JV is eliminated through cost of goods sold until it is realized; such profits would generally be considered realized when the inventory has been sold through to third parties. |
Revenue - Summary of Contract w
Revenue - Summary of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2023 | Jun. 30, 2023 | ||
Contract Assets: | |||
Unbilled accounts receivable - current | [1] | $ 13,187 | $ 9,847 |
Interest receivable - current | [2] | 332 | 379 |
Long-term accounts receivable | [3] | 4,564 | 4,734 |
Interest receivable - non-current | [3] | 605 | 673 |
Contract Liabilities: | |||
Customer advances | 22,677 | 20,777 | |
Deferred revenue – current | 77,406 | 72,185 | |
Deferred revenue – non-current | 24,809 | $ 27,079 | |
Change in assets, value: | |||
Change in unbilled accounts receivable – current, value | [1] | 3,340 | |
Change in interest receivable – current, value | [2] | (47) | |
Change in long-term accounts receivable, value | [3] | (170) | |
Change in Interest receivable – non-current, value | [3] | (68) | |
Change in liabilities, value: | |||
Change in customer advances, value | 1,900 | ||
Change in deferred revenue – current, value | 5,221 | ||
Change in deferred revenue – non-current, value | $ (2,270) | ||
Change in assets, percentage: | |||
Change in unbilled accounts receivable – current, percentage | [1] | 34% | |
Change in interest receivable – current, percentage | [2] | (12.00%) | |
Change in long-term accounts receivable, percentage | [3] | (4.00%) | |
Change in Interest receivable – non-current, percentage | [3] | (10.00%) | |
Change in liabilities, percentage: | |||
Change in customer advances, percentage | 9% | ||
Change in deferred revenue – current, percentage | 7% | ||
Change in deferred revenue – non-current, percentage | (8.00%) | ||
[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 | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Recognition of deferred revenue | $ 21.2 | $ 20.6 | $ 51.2 | $ 55.5 | |
Remaining performance obligations amount | 987.9 | $ 987.9 | |||
Percentage of changes in operating results on entity's revenue | 23% | ||||
Capitalized costs to obtain a contract | 12.5 | $ 12.5 | $ 11 | ||
Impairment loss | 0.1 | 0.2 | 0.1 | 0.4 | |
Capitalized contract cost, amortization | 0.7 | $ 1 | 1.6 | $ 1.9 | |
Long-term Warranty and Service | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Remaining performance obligations amount | 67.5 | 67.5 | |||
Performance Obligations Other Than Warrant | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Remaining performance obligations amount | 920.4 | 920.4 | |||
Performance Obligations Service Contracts | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Remaining performance obligations amount | $ 870.4 | $ 870.4 |
Revenue - Schedule of Remaining
Revenue - Schedule of Remaining Performance Obligations related to Warranty (Details) - Long-term Warranty and Service $ in Thousands | Dec. 31, 2023 USD ($) |
2024 | $ 15,979 |
2025 | 24,780 |
2026 | 18,225 |
Thereafter | $ 8,563 |
Revenue - Additional Informat_2
Revenue - Additional Information (Details1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01 | Dec. 31, 2023 |
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 | 28% |
Maximum | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations percentage | 31% |
Supplemental Financial Inform_3
Supplemental Financial Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Property and equipment, net | ||||
Software capitalized cost | $ 8.1 | $ 8.1 | ||
Depreciation expense | $ 1.5 | $ 1.1 | $ 2.7 | $ 2.2 |
Supplemental Financial Inform_4
Supplemental Financial Information - Summary of Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Financing receivables | ||
Financing receivables | $ 4,717 | $ 5,854 |
Allowance for credit losses | (798) | (798) |
Total, net | 3,919 | 5,056 |
Current | 1,604 | 2,016 |
Non-current | $ 2,315 | $ 3,040 |
Supplemental Financial Inform_5
Supplemental Financial Information - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Inventory, Net [Abstract] | ||
Raw materials | $ 63,699 | $ 62,945 |
Work-in-process | 16,387 | 17,469 |
Finished goods | 75,142 | 64,736 |
Inventories | $ 155,228 | $ 145,150 |
Supplemental Financial Inform_6
Supplemental Financial Information - Schedule of Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Prepaid Expense and Other Assets [Abstract] | ||
Value added tax receivables | $ 7,321 | $ 11,718 |
Prepaid commissions | 5,906 | 5,866 |
Capitalized contract costs | 1,800 | 1,782 |
Other prepaid assets | 6,495 | 5,763 |
Other current assets | 3,498 | 2,483 |
Total prepaid and other current assets | $ 25,020 | $ 27,612 |
Supplemental Financial Inform_7
Supplemental Financial Information - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Property and equipment, net | ||
Property and equipment, gross | $ 106,609 | $ 99,489 |
Less: Accumulated depreciation | (80,690) | (78,563) |
Property and equipment, net | 25,919 | 20,926 |
Furniture and Fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | 1,848 | 1,581 |
Computer and Office Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 7,781 | 7,798 |
Software | ||
Property and equipment, net | ||
Property and equipment, gross | 13,238 | 5,191 |
Leasehold Improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 35,667 | 26,641 |
Machinery and Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 44,649 | 44,779 |
Construction in Progress | ||
Property and equipment, net | ||
Property and equipment, gross | $ 3,426 | $ 13,499 |
Supplemental Financial Inform_8
Supplemental Financial Information - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Other Assets [Abstract] | ||
Capitalized contract costs | $ 10,736 | $ 9,244 |
Long-term accounts receivable | 4,564 | 4,734 |
Capitalized software costs to be sold | 3,624 | 2,853 |
Other long-term assets | 3,569 | 3,276 |
Total other assets | $ 22,493 | $ 20,107 |
Supplemental Financial Inform_9
Supplemental Financial Information - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Value added tax liabilities | $ 8,540 | $ 12,368 |
Commissions due to third parties | 8,777 | 10,499 |
Refunds due to customers | 4,041 | 3,364 |
Accrued consulting | 1,246 | 2,599 |
Accrued royalties | 2,518 | 2,398 |
Income tax payable | 1,869 | 900 |
Other liabilities | 9,262 | 6,143 |
Total other accrued liabilities | $ 36,253 | $ 38,271 |
Supplemental Financial Infor_10
Supplemental Financial Information - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Accumulated Other Comprehensive Income (Loss) | ||
Cumulative foreign currency translation adjustment | $ (1,697) | $ (2,332) |
Defined benefit pension obligation | 2,754 | 2,754 |
Accumulated other comprehensive income | $ 1,057 | $ 422 |
Supplemental Financial Infor_11
Supplemental Financial Information - Consolidated Statement Of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Financial Information Disclosure [Abstract] | ||||
Interest expense | $ (2,922) | $ (2,644) | $ (5,844) | $ (4,906) |
Foreign currency exchange loss | (1,278) | (33) | (2,234) | (284) |
Other income (expense), net | (152) | (154) | 45 | (199) |
Total other expense, net | $ (4,352) | $ (2,831) | $ (8,033) | $ (5,389) |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Leases [Abstract] | |||||
Operating lease costs | [1] | $ 2,456 | $ 2,314 | $ 5,010 | $ 4,651 |
Short-term operating lease costs | 72 | 130 | 133 | 231 | |
Cash paid for amounts included in the measurement of lease liabilities | $ 2,536 | $ 2,211 | $ 5,025 | $ 4,443 | |
[1] Excludes e xpenses related to short-term lease operating costs. |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating Lease Right-of-use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Balance at the beginning of period-Operating lease right-of-use assets | $ 25,853 | $ 16,798 |
Lease assets added | 1,046 | 17,157 |
Amortization for the period | (3,805) | (8,102) |
Balance at the end of period-Operating lease right-of-use assets | 23,094 | 25,853 |
Balance at the beginning of period- Operating lease liabilities | 27,753 | 19,020 |
Lease liabilities added | 3,361 | 16,834 |
Repayment and interest accretion | (3,649) | (8,101) |
Balance at the end of period-Operating lease liabilities | 27,465 | 27,753 |
Current portion of operating lease liabilities | 5,707 | 4,151 |
Non-current portion of operating lease liabilities | $ 21,758 | $ 23,602 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 (remaining six months) | $ 3,955 |
2025 | 4,094 |
2026 | 3,736 |
2027 | 3,638 |
2028 | 3,349 |
Thereafter | 23,306 |
Total operating lease payments | 42,078 |
Less: imputed interest | (14,613) |
Present value of operating lease liabilities | $ 27,465 |
Weighted average remaining lease term (in years) | 9 years |
Weighted average discount rate | 9.80% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Jun. 30, 2023 | |
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | $ 57,681 | $ 57,840 |
Currency translation | 90 | (159) |
Balance at the end of the period | $ 57,771 | $ 57,681 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Impairment of goodwill | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Carrying Amount of Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,132 | $ 1,132 |
Accumulated Amortization | (1,016) | (922) |
Net Amount | 116 | 210 |
Patent license | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,000 | 1,000 |
Accumulated Amortization | (964) | (893) |
Net Amount | 36 | 107 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 132 | 132 |
Accumulated Amortization | (52) | (29) |
Net Amount | $ 80 | $ 103 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Estimated future amortization expense of purchased intangible assets | ||
2024 (remaining six months) | $ 58 | |
2025 | 44 | |
2026 | 14 | |
Total estimated future amortization expense | $ 116 | $ 210 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) | 6 Months Ended |
Dec. 31, 2023 | |
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 ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Outstanding forward currency exchange contracts | $ 100,203,000 | $ 61,548,000 |
Swiss Franc | ||
Outstanding forward currency exchange contracts | 45,238,000 | 26,867,000 |
Chinese Yuan | ||
Outstanding forward currency exchange contracts | 6,191,000 | 249,000 |
Euro | ||
Outstanding forward currency exchange contracts | 20,545,000 | 17,885,000 |
British Pound | ||
Outstanding forward currency exchange contracts | 736,000 | 516,000 |
Indian Rupee | ||
Outstanding forward currency exchange contracts | 6,356,000 | 3,539,000 |
Korean Won | ||
Outstanding forward currency exchange contracts | 2,338,000 | 0 |
Japanese Yen | ||
Outstanding forward currency exchange contracts | $ 18,799,000 | $ 12,492,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Gain (Loss) Associated with the Company's Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Other expense, net | Forward contracts | ||||
Foreign currency exchange gain on forward contracts | $ 959 | $ 363 | $ 141 | $ 761 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Forward Currency Exchange Contracts - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Financial assets | ||
Outstanding forward currency exchange contracts | $ 100,203,000 | $ 61,548,000 |
Level 2 | ||
Financial assets | ||
Outstanding forward currency exchange contracts | 100,200,000 | 61,500,000 |
Fair value of currency contract based on exchange rate | $ 100,400,000 | $ 61,200,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Value and Estimated Fair Value of all Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Carrying Value | ||
Fair value measurement | ||
Long term debt | $ 174,758 | $ 177,283 |
Fair Value | ||
Fair value measurement | ||
Long term debt | 167,624 | 177,359 |
Non-recurring basis | Carrying Value | Level 2 | 3.75% Convertible Notes Due 2026 | ||
Fair value measurement | ||
Long term debt | 98,483 | 98,189 |
Non-recurring basis | Fair Value | Level 2 | 3.75% Convertible Notes Due 2026 | ||
Fair value measurement | ||
Long term debt | 91,349 | 98,265 |
Term Loan Facility | Non-recurring basis | Carrying Value | Level 2 | ||
Fair value measurement | ||
Long term debt | 66,275 | 69,094 |
Term Loan Facility | Non-recurring basis | Fair Value | Level 2 | ||
Fair value measurement | ||
Long term debt | 66,275 | 69,094 |
Revolving Credit Facility | Non-recurring basis | Carrying Value | Level 2 | ||
Fair value measurement | ||
Long term debt | 10,000 | 10,000 |
Revolving Credit Facility | Non-recurring basis | Fair Value | Level 2 | ||
Fair value measurement | ||
Long term debt | $ 10,000 | $ 10,000 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Value and Estimated Fair Value of all Debt (Parenthetical) (Details) | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | May 31, 2021 |
3.75% Convertible Notes Due 2026 | ||||
Fair value measurement | ||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | 3.75% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 25, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Loss Contingencies [Line Items] | ||||||
Royalty amount accrued | $ 2,518 | $ 2,518 | $ 2,398 | |||
Accrued benefit | 700 | 700 | ||||
Restructuring Charges | 2,600 | |||||
Cash paid for restructuring charges | 1,900 | |||||
License agreement | WARF (Wisconsin Alumni Research Foundation) | ||||||
Loss Contingencies [Line Items] | ||||||
Royalty costs | 400 | $ 600 | 900 | $ 1,100 | ||
Royalty amount accrued | 2,500 | 2,500 | 2,400 | |||
Financial Guarantee | Various Customers | ||||||
Loss Contingencies [Line Items] | ||||||
Bank guarantees | $ 1,200 | $ 1,200 | $ 1,300 | |||
Workforce affected by cost saving initiative (as a percent) | 5.90% |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values of All Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Principal amount of the Notes | $ 177,000 | $ 180,000 |
Unamortized debt costs | (2,242) | (2,717) |
Net carrying amount | 174,758 | 177,283 |
Reported as: | ||
Short-term debt | 6,738 | 5,721 |
Long-term debt | 168,020 | 171,562 |
Net carrying amount | 174,758 | 177,283 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Principal amount of the Notes | 10,000 | 10,000 |
Unamortized debt costs | 0 | 0 |
Net carrying amount | 10,000 | 10,000 |
Reported as: | ||
Net carrying amount | 10,000 | 10,000 |
3.75% Convertible Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Principal amount of the Notes | 100,000 | 100,000 |
Unamortized debt costs | (1,517) | (1,811) |
Net carrying amount | 98,483 | 98,189 |
Reported as: | ||
Net carrying amount | 98,483 | 98,189 |
Term Loan Facility Due May 2026 | ||
Debt Instrument [Line Items] | ||
Principal amount of the Notes | 67,000 | 70,000 |
Unamortized debt costs | (725) | (906) |
Net carrying amount | 66,275 | 69,094 |
Reported as: | ||
Net carrying amount | $ 66,275 | $ 69,094 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | May 31, 2021 | |
Debt Instrument [Line Items] | |||||
Principal amount of the Notes | $ 177,000 | $ 177,000 | $ 180,000 | ||
Unamortized debt costs | $ 2,242 | 2,242 | 2,717 | ||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Weighted average effective interest rate | 8.40% | ||||
Principal amount of the Notes | $ 10,000 | 10,000 | 10,000 | ||
Unamortized debt costs | $ 0 | $ 0 | $ 0 | ||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Weighted average effective interest rate | 8.40% | ||||
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% | 3.75% | 3.75% |
Principal amount of the Notes | $ 100,000 | $ 100,000 | $ 100,000 | ||
Unamortized debt costs | 1,517 | 1,517 | $ 1,811 | ||
Senior Secured Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility borrowing capacity | 40,000 | $ 40,000 | |||
Senior Secured Credit Agreement | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Term of loan | 5 years | ||||
Credit facility borrowing capacity | $ 80,000 | $ 80,000 | |||
Senior Secured Credit Agreement | Credit Agreement | If all or Portion of Loans Under New Term Loan Facility are Prepaid | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee percentage per annum of average unused portion of the New Revolving Credit Facility | 1% | ||||
Senior Secured Credit Agreement | 90-day SOFR | |||||
Debt Instrument [Line Items] | |||||
Interest rate determination basis | 90-day term Secured Overnight Financing Rate | ||||
Senior Secured Credit Agreement | 90-day SOFR | Floor Rate | |||||
Debt Instrument [Line Items] | |||||
Variable rate (as a percent) | 0.50% | ||||
Senior Secured Credit Agreement | Minimum | Credit Agreement | Consolidated Senior Net Leverage Ratio is Greater Than or Equal to 3.00:1.00 | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee percentage per annum of average unused portion of the New Revolving Credit Facility | 0.25% | ||||
Senior Secured Credit Agreement | Minimum | 90-day SOFR | |||||
Debt Instrument [Line Items] | |||||
Variable rate (as a percent) | 2.50% | ||||
Senior Secured Credit Agreement | Maximum | Credit Agreement | Consolidated Senior Net Leverage Ratio is Greater Than or Equal to 3.00:1.00 | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee percentage per annum of average unused portion of the New Revolving Credit Facility | 0.40% | ||||
Senior Secured Credit Agreement | Maximum | 90-day SOFR | |||||
Debt Instrument [Line Items] | |||||
Variable rate (as a percent) | 3.25% |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense on Notes and the Revolving Credit Facility, and the Term Loan Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||||
Interest expense related to contractual interest coupon | $ 2,653 | $ 2,362 | $ 5,322 | $ 4,394 |
Interest expense related to amortization of debt issuance costs | 237 | 228 | 475 | 447 |
Total | $ 2,890 | $ 2,590 | $ 5,797 | $ 4,841 |
Stock Incentive Plan and Empl_3
Stock Incentive Plan and Employee Stock Purchase Plan - Summary of Share-Based Compensation Expenses by Functional Line Item Noted Within Company's Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based compensation expenses | ||||
Share-based compensation expense | $ 2,314 | $ 3,126 | $ 4,706 | $ 6,042 |
Cost of revenue | ||||
Share-based compensation expenses | ||||
Share-based compensation expense | 390 | 443 | 626 | 809 |
Research and development | ||||
Share-based compensation expenses | ||||
Share-based compensation expense | 280 | 403 | 681 | 771 |
Selling and marketing | ||||
Share-based compensation expenses | ||||
Share-based compensation expense | 437 | 458 | 845 | 944 |
General and administrative | ||||
Share-based compensation expenses | ||||
Share-based compensation expense | $ 1,207 | $ 1,822 | $ 2,554 | $ 3,518 |
Stock Incentive Plan and Empl_4
Stock Incentive Plan and Employee Stock Purchase Plan - Additional Information (Details) shares in Millions | Nov. 09, 2023 shares |
2016 Equity Incentive Plan | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares of stock authorized | 5 |
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 loss per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Numerator: | ||||||
Net Income (Loss) | $ (9,621) | $ (2,969) | $ (1,874) | $ (5,449) | $ (12,590) | $ (7,323) |
Denominator: | ||||||
Weighted average shares outstanding - basic | 97,776 | 94,567 | 97,165 | 94,048 | ||
Weighted average shares outstanding - diluted | 97,776 | 94,567 | 97,165 | 94,048 | ||
Basic net loss per share | $ (0.1) | $ (0.02) | $ (0.13) | $ (0.08) | ||
Diluted net loss per share | $ (0.1) | $ (0.02) | $ (0.13) | $ (0.08) | ||
Anti-dilutive share-based awards, excluded | 14,601 | 14,910 | 14,601 | 14,910 |
Net Loss Per Common Share - Add
Net Loss Per Common Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | May 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||||
Common stock not included in the calculation of potentially diluted shares | 17.1 | 17.1 | 17.1 | 17.1 | ||
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% | 3.75% | 3.75% | 3.75% |
Convertible debt maturity period | 2026 | 2026 | 2026 | 2026 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Dec. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Summary o
Segment Information - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Information | ||||
Total net revenue | $ 107,238 | $ 114,760 | $ 211,130 | $ 211,253 |
Americas | ||||
Segment Information | ||||
Total net revenue | 23,742 | 27,919 | 44,299 | 55,204 |
Europe, India, Middle East, and Africa | ||||
Segment Information | ||||
Total net revenue | 43,800 | 39,664 | 83,333 | 76,410 |
China | ||||
Segment Information | ||||
Total net revenue | 23,375 | 22,278 | 49,590 | 35,278 |
Japan | ||||
Segment Information | ||||
Total net revenue | 10,648 | 15,700 | 23,240 | 27,188 |
Asia Pacific, excluding China | ||||
Segment Information | ||||
Total net revenue | $ 5,673 | $ 9,199 | $ 10,668 | $ 17,173 |
Segment Information - Schedule
Segment Information - Schedule of Geographic Areas in Which the Company has Long-Lived Assets, Property and Equipment Net and Operating Lease Right of Use Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Segment Information | ||
Long lived tangible assets | $ 49,013 | $ 46,779 |
Americas | ||
Segment Information | ||
Long lived tangible assets | 44,360 | 41,569 |
Europe, India, Middle East, and Africa | ||
Segment Information | ||
Long lived tangible assets | 2,369 | 3,074 |
China | ||
Segment Information | ||
Long lived tangible assets | 1,139 | 501 |
Japan | ||
Segment Information | ||
Long lived tangible assets | 803 | 1,096 |
Asia Pacific, excluding China | ||
Segment Information | ||
Long lived tangible assets | $ 342 | $ 539 |
Joint Venture - Additional Info
Joint Venture - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Jun. 30, 2023 | |
Schedule Of Equity Method Investments [Line Items] | ||
Currency translation adjustment | $ 90 | $ (159) |
Joint venture | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage of ownership interest in joint venture | 49% | |
Currency translation adjustment | $ 900 | |
Accuray Asia | ||
Schedule Of Equity Method Investments [Line Items] | ||
Proportion of recognizing joint venture income or loss | 49% |
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 | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method goodwill | $ 57,771 | $ 57,681 | $ 57,840 |
Joint venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of investment in joint venture | 14,536 | 15,128 | |
Deferred intra-entity profit margin | 5,443 | 5,737 | |
Equity method goodwill | (4,720) | (4,720) | |
Proportional share of equity investment in joint venture | $ 15,259 | $ 16,145 |
Joint Venture - Summary of Fina
Joint Venture - Summary of Financial Information of Joint Ventures (Operations Data) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Schedule Of Equity Method Investments [Line Items] | ||||||||
Revenue | $ 107,238 | $ 114,760 | $ 211,130 | $ 211,253 | ||||
Gross profit | 35,902 | 42,967 | 75,395 | 77,564 | ||||
Net income (loss) | $ (9,621) | $ (2,969) | $ (1,874) | $ (5,449) | $ (12,590) | $ (7,323) | ||
CNNC Accuray (Tianjin) Medical Technology Co. Ltd. | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Revenue | 22,457 | 23,983 | $ 54,312 | $ 50,723 | ||||
Gross profit | 2,800 | 3,719 | 8,613 | 8,315 | ||||
Net income (loss) | (872) | (1,416) | 7 | (2,168) | ||||
Net income (loss) attributable to the Company | $ (427) | $ (699) | $ 4 | $ (1,067) |
Joint Venture - Summary of Fi_2
Joint Venture - Summary of Financial Information of Joint Ventures (Balance Sheet Data) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 |
Schedule Of Equity Method Investments [Line Items] | ||||||
Current assets | $ 331,170 | $ 338,033 | ||||
Total assets | 476,350 | 479,214 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities | 209,306 | 198,637 | ||||
Stockholder's equity | 47,653 | $ 50,944 | 53,659 | $ 51,745 | $ 46,991 | $ 53,189 |
Total liabilities and stockholders' equity | $ 476,350 | $ 479,214 | ||||
Joint venture | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Current assets | 94,504 | 74,525 | ||||
Non current assets | 13,576 | 17,658 | ||||
Total assets | 108,080 | 92,183 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities | 76,338 | 66,618 | ||||
Non current liabilities | 174 | 669 | ||||
Stockholder's equity | 31,568 | 24,896 | ||||
Total liabilities and stockholders' equity | $ 108,080 | $ 92,183 |
Joint Venture - Schedule of Net
Joint Venture - Schedule of Net Revenue Recognized From Intra Entity Profit Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Net revenue recognized from intra-entity profit margin from sales | $ 294 | $ 986 | |||
Joint venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Sales recognized from released deferred intra-entity profit margin | $ 4,728 | $ 4,067 | 6,313 | 6,415 | |
Deferred intra-entity profit margin from sales | (2,858) | (3,042) | (6,019) | (5,429) | |
Net revenue recognized from intra-entity profit margin from sales | [1] | $ 1,870 | $ 1,025 | $ 294 | $ 986 |
[1] Profit earned by the Company from the JV is eliminated through cost of goods sold until it is realized; such profits would generally be considered realized when the inventory has been sold through to third parties. |
Income Tax - Additional Informa
Income Tax - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Line Items] | ||||
Income tax expense | $ 878 | $ 1,049 | $ 2,810 | $ 1,390 |
Gross unrecognized tax benefits | 21,600 | 21,600 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 21,200 | $ 21,200 | ||
Subsequent period within which no material changes in unrecognized tax benefits are expected | 12 months | |||
Foreign | ||||
Income Taxes [Line Items] | ||||
Income tax expense | $ 900 | $ 1,000 | $ 2,800 | $ 1,400 |