Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 17, 2015 | Dec. 31, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | ACCURAY INC | ||
Entity Central Index Key | 1,138,723 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 331,958,287 | ||
Entity Common Stock, Shares Outstanding | 79,745,361 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 79,551 | $ 92,346 |
Short-term investments | 64,306 | 79,553 |
Restricted cash | 3,734 | 1,492 |
Accounts receivable, net of allowance for doubtful accounts of $709 and $976, respectively | 77,727 | 72,152 |
Inventories | 106,151 | 87,752 |
Prepaid expenses and other current assets | 15,991 | 17,873 |
Deferred cost of revenue | 6,869 | 13,302 |
Total current assets | 354,329 | 364,470 |
Property and equipment, net | 31,829 | 34,391 |
Goodwill | 58,054 | 58,091 |
Intangible assets, net | 15,564 | 23,517 |
Deferred cost of revenue | 1,500 | 2,899 |
Other assets | 8,695 | 11,820 |
Total assets | 469,971 | 495,188 |
Current liabilities: | ||
Accounts payable | 13,096 | 15,639 |
Accrued compensation | 21,934 | 32,569 |
Other accrued liabilities | 18,720 | 24,464 |
Customer advances | 19,385 | 19,804 |
Deferred revenue | 96,780 | 92,093 |
Total current liabilities | 169,915 | 184,569 |
Long-term liabilities: | ||
Long-term other liabilities | 10,934 | 6,593 |
Deferred revenue | 10,489 | 9,866 |
Long-term debt | 202,853 | 195,612 |
Total liabilities | $ 394,191 | $ 396,640 |
Commitment and contingencies (Note 5) | ||
Stockholders' Equity: | ||
Preferred stock, $0.001 par value; authorized: 5,000,000 shares; no shares issued and outstanding | ||
Common stock, $0.001 par value; authorized: 200,000,000 shares as of June 30, 2015 and 2014 respectively; issued and outstanding: 79,477,838 and 77,178,365 shares at June 30, 2015 and 2014, respectively | $ 79 | $ 77 |
Additional paid-in capital | 471,430 | 451,750 |
Accumulated other comprehensive income | (426) | 1,815 |
Accumulated deficit | (395,303) | (355,094) |
Total stockholders' equity | 75,780 | 98,548 |
Total liabilities and stockholders' equity | $ 469,971 | $ 495,188 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Condensed Consolidated Balance Sheets | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 709 | $ 976 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
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 | 79,477,838 | 77,178,365 |
Common stock, outstanding shares | 79,477,838 | 77,178,365 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net revenue: | |||
Products | $ 178,710 | $ 173,607 | $ 137,403 |
Services | 201,091 | 195,812 | 178,571 |
Total net revenue | 379,801 | 369,419 | 315,974 |
Cost of revenue: | |||
Cost of products | 104,549 | 97,592 | 85,498 |
Cost of services | 129,850 | 129,027 | 132,836 |
Total cost of revenue | 234,399 | 226,619 | 218,334 |
Gross profit | 145,402 | 142,800 | 97,640 |
Operating expenses: | |||
Research and development | 55,752 | 53,724 | 66,197 |
Selling and marketing | 62,440 | 61,885 | 54,372 |
General and administrative | 46,379 | 45,335 | 57,726 |
Total operating expenses | 164,571 | 160,944 | 178,295 |
Loss from operations | (19,169) | (18,144) | (80,655) |
Other expense, net | (18,621) | (14,216) | (13,133) |
Loss before provision for income taxes | (37,790) | (32,360) | (93,788) |
Provision for income taxes | 2,419 | 3,088 | 3,573 |
Net loss | (40,209) | (35,448) | (97,361) |
Loss from discontinued operations: | |||
Loss from operations of a discontinued variable interest entity | (3,505) | ||
Impairment of indefinite lived intangible asset of discontinued variable interest entity | (12,200) | ||
Loss from deconsolidation of a variable interest entity | (3,442) | ||
Loss from discontinued operations, net of tax of $0 | (19,147) | ||
Loss from discontinued operations attributable to non-controlling interest | (13,289) | ||
Loss from discontinued operations attributable to stockholders | (5,858) | ||
Net loss attributable to stockholders | $ (40,209) | $ (35,448) | $ (103,219) |
Loss per share attributable to stockholders | |||
Basic and diluted - continuing operations (in dollars per share) | $ (0.51) | $ (0.47) | $ (1.33) |
Basic and diluted - discontinued operations (in dollars per share) | (0.08) | ||
Earnings Per Share, Basic and Diluted, Total | $ (0.51) | $ (0.47) | $ (1.41) |
Weighted average common shares used in computing loss per share | |||
Basic and diluted (in shares) | 78,277 | 75,804 | 73,281 |
Net loss | $ (40,209) | $ (35,448) | $ (103,219) |
Foreign currency translation adjustment | (1,196) | 25 | (498) |
Unrealized gain (loss) on investments, net of tax | (95) | 475 | (457) |
Defined benefit pension obligation | (950) | (567) | |
Comprehensive loss | $ (42,450) | $ (35,515) | $ (104,174) |
Consolidated Statements of Ope5
Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Condensed Consolidated Statements of Operations and Comprehensive Loss | |
Loss from discontinued operations, tax | $ 0 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total Stockholders' Equity | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-controlling Interest | Total |
Balance at Jun. 30, 2012 | $ 195,625 | $ 72 | $ 409,143 | $ 2,837 | $ (216,427) | $ 8,242 | $ 203,867 |
Balance (in shares) at Jun. 30, 2012 | 71,864,268 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Exercise of stock options, net | 4,201 | $ 2 | 4,199 | 4,201 | |||
Exercise of stock options, net (in shares) | 1,514,591 | ||||||
Issuance of restricted stock (in shares) | 544,386 | ||||||
Issuance of common stock under employee stock purchase plan | 3,257 | $ 1 | 3,256 | 3,257 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 663,986 | ||||||
Share-based compensation | 8,236 | 8,236 | 8,236 | ||||
Deconsolidation of CPAC | (310) | (310) | 5,047 | 4,737 | |||
Net loss | (103,219) | (103,219) | $ (13,289) | (116,508) | |||
Cumulative translation adjustment | (498) | (498) | (498) | ||||
Unrealized gain (loss) on investments, net of tax | (457) | (457) | (457) | ||||
Balance at Jun. 30, 2013 | 106,835 | $ 75 | 424,524 | 1,882 | (319,646) | 106,835 | |
Balance (in shares) at Jun. 30, 2013 | 74,587,231 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Exercise of stock options, net | 5,312 | $ 1 | 5,311 | 5,312 | |||
Exercise of stock options, net (in shares) | 1,061,513 | ||||||
Issuance of restricted stock | 1 | $ 1 | 1 | ||||
Issuance of restricted stock (in shares) | 913,070 | ||||||
Issuance of common stock under employee stock purchase plan | 3,536 | 3,536 | 3,536 | ||||
Issuance of common stock under employee stock purchase plan (in shares) | 650,315 | ||||||
Share-based compensation | 11,038 | 11,038 | 11,038 | ||||
Exchange of Convertible Notes (Note 13) | 7,844 | 7,844 | 7,844 | ||||
Unamortized convertible senior note issuance costs reclassified to equity in relation to convertible notes modification | (243) | (243) | (243) | ||||
Tax withholding upon vesting of restricted stock awards | (260) | (260) | (260) | ||||
Taxwithholding upon vesting of restricted stock awards (in shares) | (33,764) | ||||||
Net loss | (35,448) | (35,448) | (35,448) | ||||
Cumulative translation adjustment | 25 | 25 | 25 | ||||
Unrealized gain (loss) on investments, net of tax | 475 | 475 | 475 | ||||
Defined benefit pension obligation | (567) | (567) | (567) | ||||
Balance at Jun. 30, 2014 | 98,548 | $ 77 | 451,750 | 1,815 | (355,094) | $ 98,548 | |
Balance (in shares) at Jun. 30, 2014 | 77,178,365 | 77,178,365 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Exercise of stock options, net | 2,563 | 2,563 | $ 2,563 | ||||
Exercise of stock options, net (in shares) | 529,331 | ||||||
Issuance of restricted stock | $ 1 | (1) | |||||
Issuance of restricted stock (in shares) | 1,174,531 | ||||||
Issuance of common stock under employee stock purchase plan | 4,033 | $ 1 | 4,032 | 4,033 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 719,279 | ||||||
Share-based compensation | 13,746 | 13,746 | 13,746 | ||||
Tax withholding upon vesting of restricted stock awards | (660) | (660) | (660) | ||||
Taxwithholding upon vesting of restricted stock awards (in shares) | (123,668) | ||||||
Net loss | (40,209) | (40,209) | (40,209) | ||||
Cumulative translation adjustment | (1,196) | (1,196) | (1,196) | ||||
Unrealized gain (loss) on investments, net of tax | (95) | (95) | (95) | ||||
Defined benefit pension obligation | (950) | (950) | (950) | ||||
Balance at Jun. 30, 2015 | $ 75,780 | $ 79 | $ 471,430 | $ (426) | $ (395,303) | $ 75,780 | |
Balance (in shares) at Jun. 30, 2015 | 79,477,838 | 79,477,838 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows From Operating Activities | |||
Loss from continuing operations | $ (40,209) | $ (35,448) | $ (97,361) |
Loss from discontinued operations | (19,147) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities : | |||
Depreciation and amortization | 19,493 | 20,564 | 25,564 |
Impairment of indefinite lived intangible asset | 12,200 | ||
Share-based compensation | 13,930 | 11,313 | 8,216 |
Amortization of debt issuance costs | 1,503 | 1,408 | 784 |
Amortization and accretion of discount and premium on investments | 1,018 | 1,584 | 295 |
Accretion of interest on long-term debt | 7,241 | 5,105 | 4,302 |
Provision for bad debt | (14) | (707) | 787 |
Provision for write-down of inventories | 1,507 | 2,836 | 5,255 |
Loss on disposal of property and equipment | 62 | 666 | 1,013 |
Gain on previously held equity interest in Morphormics | (662) | ||
Loss from deconsolidation of a variable interest entity | 3,442 | ||
Provision for deferred income taxes | 664 | 92 | 947 |
Changes in assets and liabilities: | |||
Restricted cash | (2,353) | (163) | (1,163) |
Accounts receivable | (8,331) | (14,786) | 10,858 |
Inventories | (21,094) | (8,341) | (5,147) |
Prepaid expenses and other assets | 2,271 | (5,241) | 4,382 |
Deferred cost of revenue | 7,776 | (4,875) | (4,005) |
Accounts payable | (1,822) | (1,057) | (1,140) |
Accrued liabilities | (8,614) | 21,696 | (18,525) |
Customer advances | 577 | 1,744 | (659) |
Deferred revenue | 9,662 | 3,956 | 3,587 |
Net cash provided by (used in) operating activities | (16,733) | 346 | (66,177) |
Cash Flows From Investing Activities | |||
Purchases of property and equipment, net | (10,445) | (11,931) | (15,126) |
Purchases of intangible assets | (232) | ||
Purchases of investments | (107,162) | (44,155) | (102,403) |
Sales and maturities of investments | 121,296 | 64,578 | |
Acquisition of business, net of cash acquired | (3,861) | ||
Net cash provided by investing activities | 3,689 | 8,492 | (121,622) |
Cash Flows From Financing Activities | |||
Proceeds from issuance of common stock | 6,555 | 9,054 | 7,455 |
Payment to the convertible note holders to modify the notes | (417) | ||
Taxes paid related to net share settlement of equity awards | (660) | (260) | |
Proceeds from debt, net of costs | 110,462 | ||
Net cash provided by financing activities | 5,895 | 8,377 | 117,917 |
Effect of exchange rate changes on cash and cash equivalents | (5,646) | 1,818 | (309) |
Net increase (decrease) in cash and cash equivalent | (12,795) | 19,033 | (70,191) |
Cash and cash equivalents at beginning of period | 92,346 | 73,313 | 143,504 |
Cash and cash equivalents at end of period | 79,551 | 92,346 | 73,313 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for income taxes | 3,184 | 2,499 | 2,000 |
Cash paid for interest | 7,207 | 8,208 | 3,750 |
Non-cash financing activity: | |||
Exchange of Convertible Notes (Note 13) | 7,844 | ||
Purchases of property and equipment recorded in accounts payable and accrued liabilities | $ 638 | $ 1,142 | $ 366 |
Description of Business
Description of Business | 12 Months Ended |
Jun. 30, 2015 | |
Description of Business | |
Description of Business | 1. Description of Business Organization Accuray Incorporated (together with its subsidiaries, the "Company" or "Accuray") is incorporated in Delaware. The Company designs, develops and sells advanced radiosurgery and radiation therapy systems for the treatment of tumors throughout the body. The Company conducts its business worldwide. The Company has its headquarters in Sunnyvale, California, with additional locations worldwide. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with GAAP, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and a variable interest entity, Compact Particle Acceleration Corporation, or CPAC until the deconsolidation of CPAC on December 21, 2012 (for further information, see Note 7, Investment in CPAC ). All significant inter-company transactions and balances have been eliminated in consolidation. Discontinued Operations As a result of the deconsolidation of CPAC, the results of operations of CPAC, including the loss on deconsolidation of CPAC and the loss attributable to the non-controlling interest recorded for the year ended June 30, 2013 has been presented as discontinued operations. Use of Estimates The preparation of consolidated financial statements in conformity with 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. Key estimates and assumptions made by the Company relate to revenue recognition, business combinations and assessment of recoverability of goodwill and intangible assets, valuation of inventories, share-based compensation expense, convertible notes, income taxes, allowance for doubtful accounts and loss contingencies. Actual results could differ materially from those estimates. Foreign Currency The Company's international subsidiaries use their local currencies as their functional currencies. For those subsidiaries, assets and liabilities are translated at exchange rates in effect at the balance sheet date and income and expense accounts at the average exchange rate. Resulting translation adjustments are excluded from the determination of net loss and are recorded in accumulated other comprehensive income (loss) as a separate component of stockholders' equity. Net foreign currency exchange transaction gains or losses are included as a component of other income (expense), net, in the Company's consolidated statements of operations and comprehensive loss. Fair Value Measurements The carrying values of the Company's financial instruments including cash equivalents, restricted cash, accounts receivable and accounts payable are approximately equal to their respective fair values due to the relatively short-term nature of these instruments. Also refer to Note 4, Financial Instruments, for further details. Cash and Cash Equivalents The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally. Investments The Company classifies all its investments as available-for-sale at the time of purchase since it is management's intent that these investments be available for current operations, and as such, includes these investments as short-term investments on its balance sheets. These investments primarily consist of commercial paper and investment-grade agency and corporate debt securities with original maturities longer than three months. Short-term investments classified as available-for-sale are recorded at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders' equity. Realized gains and losses are recorded in the consolidated statements of operations and comprehensive loss based on specific identification. Concentration of Credit Risk and Other Risks and Uncertainties The Company's cash and cash equivalents are mainly deposited with several major financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant risk on these balances. The Company has placed its investments with high-credit quality issuers. The Company does not invest an amount exceeding 5% of its combined cash, cash equivalents and investments in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies and money market accounts. There were no customers that represented 10% or more of total net revenue for the years ended June 30, 2015, 2014 and 2013. At June 30, 2015, one customer accounted for 18% of accounts receivable. At June 30, 2014, one customer accounted for 13% of accounts receivable. Accounts receivable are typically not collateralized. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. Accounts receivable are deemed past due in accordance with the contractual terms of the agreement. Accounts are charged against the allowance for doubtful accounts once collection efforts are unsuccessful. Historically, such losses have been within management's expectations. Single-source suppliers presently provide the Company with several components. In most cases, if a supplier was unable to deliver these components, the Company believes that it would be able to find other sources for these components subject to any regulatory qualifications, if required. Restricted Cash Restricted cash primarily consists of certificates of deposit held as guarantees in connection with customer contracts and corporate leases as well as funds held as guarantees for Value-Added Tax, or VAT obligations in a foreign jurisdiction. Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or market value. Excess and obsolete inventories are written down based on historical sales and forecasted demand, as judged by management. Revenue Recognition The Company's revenue is primarily derived from sales of CyberKnife and TomoTherapy Systems and services, which include post-contract customer support or PCS, installation services, training and other professional services. The Company records its revenues net of any value added or sales tax. In all sales arrangements, the Company recognizes revenues when there is persuasive evidence of an arrangement, the fee is fixed or determinable, collection of the fee is reasonably assured and delivery has occurred. Payments received in advance of system shipment are recorded as customer advances and are recognized as revenue or deferred revenue upon product shipment or installation. The Company assesses the probability of collection based on a number of factors, including past transaction history with the customer and the credit-worthiness of the customer. The Company generally does not request collateral from its customers. If the Company determines that collection is not probable, the Company will defer the fee and recognize revenue upon receipt of cash. The Company frequently enters into sales arrangements that contain multiple elements or deliverables. For sale arrangements that contain multiple elements, the Company allocates the arrangement consideration to each element based on the relative selling price method, whereby the relative selling price of each deliverable is determined using vendor specific objective evidence, or VSOE of fair value, if it exists. VSOE of fair value for each element is based on the Company's standard rates charged for the product or service when such product or service is sold separately or based upon the price established by the Company's pricing committee when that product or service is not yet being sold separately. When the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements, which may be due to the Company infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history, the Company attempts to determine the selling price of each element based on third-party evidence of selling price, or TPE, as determined based on competitors' prices for similar deliverables when sold separately. When the Company is not able to establish selling price using VSOE or TPE, the Company uses its best estimate of selling price, or BESP, in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company determines BESP for a product or service by considering multiple factors including, but not limited to, pricing practices, internal costs, geographies and gross margin. The determination of BESP is made through annual analysis of the Company's pricing practices and adjusted if necessary. The Company has a limited number of software offerings which are not required to deliver its systems' essential functionality and can be sold separately. The Company accounts for the separate sale of its software products in accordance with the applicable guidance for software revenue recognition. The Company's multiple-element arrangements may also include software deliverables that are subject to the software revenue recognition guidance; and in these cases, the revenue for these multiple-element arrangements is allocated to the software deliverable and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using VSOE, TPE or BESP. The Company regularly reviews VSOE, TPE and BESP for all of its products and services. As the Company's go-to-market strategies and other factors change, the Company may modify its pricing practices in the future, which may impact the selling prices of systems and services as well as VSOE, TPE and BESP of systems and services. As a result, the Company's future revenue recognition for multiple element arrangements could differ materially from that recorded in the current period. Product Revenue The majority of product revenue is generated from sales of CyberKnife and TomoTherapy systems. If the Company is responsible for installation, the Company recognizes revenue after installation and acceptance of the system. Otherwise, revenue is generally recognized upon delivery, assuming all other revenue recognition criteria are met. The Company could sell its systems with PCS contracts, installation services, training, and at times, professional services. PCS contracts provide planned and corrective maintenance services, software updates, bug fixes, as well as call-center support. The Company records revenues from sales of systems, product upgrades and accessories to distributors depending on the terms of the distribution agreement as well as terms and conditions executed for each sale, and once all revenue recognition criteria have been met. The Company's agreements with customers and distributors for system sales generally do not contain product return rights. Certain distributor agreements include parts inventory buy-back provisions upon distributorship termination. The Company accrues an inventory buy-back liability when and if such distributorship termination is expected and the liability can be estimated. Service Revenue Service revenue is generated primarily from PCS (warranty period services and post warranty services), installation services, training, and professional services. PCS revenue is deferred and recognized over the service period. Installation service revenue is recognized concurrent with system revenue. Training revenues are recognized when services are performed, and professional service revenues that are not deemed essential to the functionality of the systems are recognized as such services are performed. Costs associated with service revenue are expensed when incurred, except when those costs are related to system upgrades where revenue recognition has been deferred. In those cases, the incremental costs are deferred and are recognized over the period of revenue recognition. Deferred Revenue and Deferred Cost of Revenue Deferred revenue consists of deferred product revenue and deferred service revenue. Deferred product revenue arises from timing differences between the shipment of product and satisfaction of all revenue recognition criteria consistent with the Company's revenue recognition policy. Deferred service revenue results from the advance payment for services to be delivered over a period of time, usually one year. Deferred cost of revenue consists of the direct costs associated with the manufacturing of units and direct service costs for which the revenue has been deferred in accordance with the Company's revenue recognition policies. Deferred revenue and associated deferred cost of revenue expected to be realized within one year are classified as current liabilities and current assets, respectively. Customer Advances Customer advances represent payments made by customers in advance of product shipment. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are depreciated on a straight-line basis over the remaining term of the lease or the estimated useful life of the asset, whichever is shorter. Machinery and equipment are depreciated over five years. Furniture and fixtures are depreciated over four years. Computer and office equipment and computer software are depreciated over three years. Repairs and maintenance costs, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. Software Capitalization Costs The Company capitalizes certain costs associated with obtaining or developing internal use software, including external direct costs of material and services. Software development costs relating to assets to be sold in the normal course of business are included in research and development and are expensed as incurred until technological feasibility is established. After technological feasibility is established, material software development costs are capitalized. The capitalized cost is then amortized on a straight-line basis over the estimated product life, or on the ratio of current revenues to total projected product revenue, whichever is greater. To date, the period between achieving technological feasibility, which the Company has defined as the establishment of a working model which typically occurs when the beta testing commences, and the general availability of such software has been short and software development costs qualifying for capitalization have been insignificant. Capitalized software costs are included in property, plant and equipment and amortized beginning when the software project is complete and the assets are ready for their intended use. Impairment of Long-Lived Assets The Company reviews long-lived assets, including intangible assets, property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable using pretax undiscounted cash flows. Impairment, if any, is measured as the amount by which the carrying value of a long-lived asset exceeds its fair value. Business Combinations The Company allocates the fair value of the purchase consideration of its acquisitions to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development, or IPR&D, based on their estimated fair values. Goodwill represents the excess of acquisition cost over the fair value of tangible and identified intangible net assets of businesses acquired. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired company are reflected in the Company's consolidated financial statements after the closing date of the merger or acquisition. Goodwill and Purchased Intangible Assets Goodwill is not amortized, but is evaluated for impairment on an annual basis and when impairment indicators are present. The Company has assessed that it has one operating segment and one reporting unit, and the consolidated net assets, including existing goodwill and other intangible assets, are considered to be the carrying value of the reporting unit. The Company estimates the fair value of the reporting unit based on the Company's closing stock price on the trading day closest to the annual review date multiplied by the outstanding shares on that date. If the carrying value of the reporting unit is in excess of its fair value, an impairment may exist, and the Company must perform the second step of the analysis, in which the implied fair value of the goodwill is compared to its carrying value to determine the impairment charge, if any. If the estimated fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and no further analysis is required. There was no impairment of goodwill identified in the fiscal years ended June 30, 2015, 2014 and 2013. Purchased intangible assets other than goodwill, including developed technology and distributor license, are amortized on a straight-line basis over their estimated useful lives unless their lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets which range from approximately one to six years. Acquisition-related expenses and restructuring costs are recognized separately from the business combination and are expensed as incurred. Shipping and Handling The Company's billings for shipping and handling for product shipments to customers are included in cost of products. Shipping and handling costs incurred for inventory purchases are capitalized in inventory and expensed in cost of products. Advertising Expenses The Company expenses the costs of advertising and promoting its products and services as incurred. Advertising expenses were approximately $0.5 million, $0.6 million and $0.7 million for the years ended June 30, 2015, 2014 and 2013, respectively. Research and Development Costs Costs related to research, design and development of products are charged to research and development expense as incurred. These costs include direct salaries, benefits, and other headcount related costs for research and development personnel; costs for materials used in research and development activities; costs for outside services and allocated portions of facilities and other corporate costs. The Company has entered into research and clinical study arrangements with selected hospitals, cancer treatment centers, academic institutions and research institutions worldwide. These agreements support the Company's internal research and development capabilities. Share-Based Compensation The Company issues stock-based compensation awards to employees and directors in the form of stock options, restricted stock units ("RSUs"), performance stock units ("PSUs"), market stock units ("MSUs") and employee stock purchase plan ("ESPP") awards (collectively, "awards"). The Company measures and recognizes compensation expense for all stock-based awards based on the awards' fair value. Share-based compensation for RSUs and PSUs is measured based on the value of the Company's common stock on the grant date. The Company uses the Monte-Carlo simulation model to estimate the fair value of MSUs. Share-based compensation for employee stock options and ESPP awards are measured on the date of grant using a Black-Scholes option pricing model. Awards vest either on a graded schedule or in a lump sum. The Company determines the fair value of each award as a single award and recognizes the expense on a straight-line basis over the service period of the award, which is generally the vesting period. The exercise price of stock options granted is equal to the fair market value of the Company's common stock on the date of grant. Stock options expire ten years from the date of grant. Share-based compensation expense for stock options, RSUs, PSUs and the ESPP is based on awards ultimately expected to vest, and the expense is recorded net of estimated forfeitures. The Company recognizes expense for MSUs net of estimated forfeitures and does not adjust the expense for subsequent changes in the expected outcome of the market-based vesting conditions. Loss Contingencies The Company is involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. The Company reviews these provisions quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. Net Loss Per Common Share Basic and diluted net loss per share is computed by dividing net loss attributable to stockholders by the weighted average number of common shares outstanding during the year. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to stockholders follows (in thousands): Years ended June 30, 2015 2014 2013 Numerator: Loss from operations used in computing loss per share from continuing operations $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations used in computing loss per share from discontinued operations — — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss used in computing net loss per share $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Weighted average shares used in computing basic and diluted net loss per share The potentially dilutive shares of the Company's common stock resulting from the assumed exercise of outstanding stock options, the vesting of RSUs, MSUs and PSUs, and the purchase of shares under the ESPP, as determined under the treasury stock method, are excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. The 3.75% Convertible Senior Notes due August 1, 2016 (the "3.75% Convertible Notes"), the 3.50% Convertible Senior Notes due February 1, 2018 (the "3.50% Convertible Notes") and the 3.50% Series A Convertible Notes (the "3.50% Series A Convertible Notes") due February 1, 2018 are included in the calculation of diluted net income per share only if their inclusion is dilutive. For the years ended June 30, 2015, 2014 and 2013, the potentially dilutive shares under the Convertible Notes were excluded from the calculation of diluted net loss per share as their inclusion would have been anti-dilutive. The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands): As of June 30, 2015 2014 2013 Stock options RSUs, PSUs and MSUs 3.75% Convertible Notes — — — 3.50% Convertible Notes 3.50% Series A Convertible Notes — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding Convertibles Notes—Diluted Share Impact The 3.75% Convertible Notes and 3.50% Series A Convertible Notes have an optional physical (share), cash or combination settlement feature and contain certain conditional conversion features. Due to the optional cash settlement feature and management's intent to settle the principal amount thereof in cash, the conversion shares underlying the outstanding principal amount of the 3.75% Convertible Notes and 3.50% Series A Convertible Notes, totaling approximately 10.6 million shares and 13.2 million shares, respectively, were not included in the potentially diluted share count table above. The Company's average stock price did not exceed the conversion price of the 3.75% Convertible Notes as of June 30, 2015, 2014 and 2013. The 2.9 million potentially dilutive shares of the 3.50% Series A Convertible Notes included in the table above represent the premium over the principal amount due to the higher average share price. The number of premium shares included in the Company's diluted share count will vary with fluctuations in the Company's share price. Higher actual share prices result in a greater number of premium shares. Income Taxes The Company is required to estimate its income taxes in each of the tax jurisdictions in which it operates prior to the completion and filing of tax returns for such periods. This process involves estimating actual current tax expense together with assessing temporary differences in the treatment of items for tax purposes versus financial accounting purposes that may create net deferred tax assets and liabilities. The Company accounts for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax bases of the Company's assets and liabilities and their financial statement reported amounts. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses, research and development credit carryforwards, and other deferred tax assets. The Company records a valuation allowance to reduce its deferred tax assets to the amount the Company believes is more likely than not to be realized. Because of the uncertainty of the realization of the deferred tax assets, the Company has recorded a full valuation allowance against its domestic and certain foreign net deferred tax assets. The calculation of unrecognized tax benefits involves dealing with uncertainties in the application of complex global tax regulations. Management regularly assesses the Company's tax positions in light of legislative, bilateral tax treaty, regulatory and judicial developments in the countries in which the Company does business. The Company anticipates that except for $0.4 million in uncertain tax positions that may be reduced related to the lapse of various statutes of limitation, there will be no material changes in uncertain tax positions in the next 12 months. Accumulated Other Comprehensive Income (Loss) The components of comprehensive loss consist of net loss, unrealized gains and losses on available-for-sale investments, changes in foreign currency exchange rate translation and net changes related to a defined benefit pension plan. The unrealized gains and losses on available-for-sale investments, changes in foreign currency exchange rate translation and net changes related to the defined benefit pension plan are excluded from earnings and reported as a component of stockholders' equity. The foreign currency translation adjustment results from those subsidiaries not using the United States 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 at the current exchange rates at the end of each period. The resulting cumulative translation adjustments are recorded directly to the accumulated other comprehensive loss account in stockholders' equity. Revenues and expenses are translated at average exchange rates in effect during the period. The components of accumulated other comprehensive income in the equity section of the balance sheets are as follows (in thousands): June 30, 2015 June 30, 2014 Net unrealized gain (loss) on short-term investments $ ) $ Cumulative foreign currency translation gain Change in defined benefit pension obligation ) ) ​ ​ ​ ​ ​ ​ ​ ​ Accumulated other comprehensive income (loss) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment Information The Company has determined that it operates in only one segment, as it only reports profit and loss information on an aggregate basis to its chief operating decision maker. Revenue by geographic region is based on the shipping addresses of the Company's customers. The following summarizes revenue by geographic region (in thousands): Years ended June 30, 2015 2014 2013 Americas $ $ $ Europe, Middle East, India and Africa Asia (excluding Japan and India) Japan ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands): June 30, 2015 June 30, 2014 Americas $ $ Europe, Middle East, India and Africa Asia (excluding Japan and India) Japan ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company in its first quarter of fiscal 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. On July 9, 2015, the FASB approved a one year deferral of the effective period. The standard will be effective for the Company for fiscal 2019, but entities will be permitted to early adopt the standard as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of pending adoption of ASU 2014-09 on its consolidated financial statements and related disclosures. In July 2013, the Financial Accounting Standards Board ("FASB") issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists . ASU No. 2013-11 requires that entities with an unrecognized tax benefit and a net operating loss carryforward or similar tax loss or tax credit carryforward in the same jurisdiction as the uncertain tax position present the unrecognized tax benefit as a reduction of the deferred tax asset for the loss or tax credit carryforward rather than as a liability, when the uncertain tax position would reduce the loss or tax credit carryforward under the tax law, thereby eliminating diversity in practice regarding this presentation issue. This new guidance is effective prospectively for annual reporting periods beginning on or after December 15, 2013, although retrospective application is permitted. The Company has implemented this guidance with no impact to the consolidated financial statements or related disclosures. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jun. 30, 2015 | |
Balance Sheet Components | |
Balance Sheet Components | 3. Balance Sheet Components Cash and Cash Equivalents The following is a summary of cash and cash equivalents (in thousands): June 30, 2015 June 30, 2014 Cash $ $ Money market funds ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable, net Accounts receivable, net consisted of the following (in thousands): June 30, 2015 June 30, 2014 Accounts receivable $ $ Unbilled fees and services ​ ​ ​ ​ ​ ​ ​ ​ Less: Allowance for doubtful accounts ) ) ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company received payment or had credits of $0.4 million, added $0.4 million and wrote off $0.2 million from the allowance for doubtful accounts in fiscal 2015. The Company received payment or had credits of $2.0 million, added $1.3 million and wrote off $0.5 million from the allowance for doubtful accounts in fiscal 2014. 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 in the Company's balance sheet. The Company's financing receivables, consisting of its accounts receivable with contractual maturities of more than one year totaled $1.6 million and $2.8 million at June 30, 2015 and 2014, respectively and are included in Other assets in the consolidated balance sheets. There was no balance in the allowance for doubtful accounts related to such financing receivables as of June 30, 2015 and June 30, 2014, respectively; revenue is recognized on a cash basis for these receivables. Inventories Inventories consisted of the following (in thousands): June 30, 2015 June 30, 2014 Raw materials $ $ Work-in-process Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property and Equipment, net Property and equipment consisted of the following (in thousands): June 30, 2015 June 30, 2014 Furniture and fixtures $ $ Computer and office equipment Software Leasehold improvements Machinery and equipment Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depreciation ) ) ​ ​ ​ ​ ​ ​ ​ ​ Property and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization expense related to property and equipment for the years ended June 30, 2015, 2014 and 2013 was $11.6 million, $12.2 million and $15.2 million, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 30, 2015 | |
Financial Instruments | |
Financial Instruments | 4. Financial Instruments The Company considers all highly liquid investments held at major banks, certificates of deposit and other securities with original maturities of three months or less to be cash equivalents. The Company classifies all of its investments as available-for-sale at the time of purchase because it is management's intent that these investments are available for current operations and includes these investments on its balance sheets as short-term investments. Investments with original maturities longer than three months include commercial paper and investment-grade agency and corporate debt securities. Investments classified as available-for-sale are recorded at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders' equity. Realized gains and losses are recorded based on specific identification of each security's cost basis. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) 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 reflect 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. The following tables summarize the amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category for cash, cash equivalents and short-term investments (in thousands): June 30, 2015 Estimated Market Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Cash and Cash Equivalents Short-term Investments Cash $ $ — $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Money market funds — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2 Commercial paper — — — U.S. Agency securities ) — Non-U.S. government securities — ) — Corporate notes — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2014 Estimated Market Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Cash and Cash Equivalents Short-term Investments Cash $ $ — $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Money market funds — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2 Corporate notes ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company's Level 2 investments in the table above are classified as Level 2 items because quoted prices in an active market are not readily accessible for those specific financial assets, or the Company may have relied on alternative pricing methods that do not rely exclusively on quoted prices to determine the fair value of the investments. The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the year ended June 30, 2015. Contractual maturities of available-for-sale securities at June 30, 2015 were as follows (in thousands): June 30, 2015 Amortized Cost Fair Value Due in 1 year or less $ $ Due in 1 - 2 years Due in 2 - 3 years ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes the carrying values and estimated fair values of the Company's Convertible Notes (in thousands): June 30, 2015 June 30, 2014 Carrying Value Fair Value Carrying Value Fair Value 3.75% Convertible Notes $ $ $ $ 3.50% Convertible Notes 3.50% Series A Convertible Notes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The long-term debt is measured on a non-recurring basis using Level 2 inputs based upon observable inputs of the Company's underlying stock price and the time value of the conversion option, since an observable quoted price of the Convertible Notes is not readily available. |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations | |
Business Combinations | 5. Business Combinations Fiscal 2013 Acquisition On July 16, 2012, the Company acquired the remaining 90% of the outstanding shares of Morphormics, Inc., or Morphormics, a privately-held developer of medical imaging software based in North Carolina. This acquisition enables the Company to extend auto-contouring capabilities for both the CyberKnife and TomoTherapy systems to improve disease specific workflows. The Company previously held 10% of the outstanding shares of Morphormics, which had a carrying value of zero prior to the acquisition date and was valued at $0.7 million as of the acquisition date based on the fair value of the consideration paid. The acquisition was accounted for as a business combination, and accordingly, Morphormics' results of operations were included in the consolidated financial statements from July 16, 2012. This transaction was not considered a material business combination, and Company did not incur significant severance or acquisition-related costs in connection with the transaction. The fair value of total purchase consideration paid and payable for 100% of Morphormics' equity interest as of the acquisition date was as follows (in thousands): Cash paid and payable $ Fair value of pre-existing investment in Morphormics ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The total purchase price was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their fair values as of the acquisition date as follows (in thousands): Cash and cash equivalents $ Accounts receivable Other current assets Amortizable intangible assets—developed technology Goodwill Accrued compensation ) ​ ​ ​ ​ ​ Total purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pro forma results of operations for the acquisition have not been presented because they are not material to the Company's consolidated statements of operations and comprehensive loss, balance sheets, or cash flows. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Purchased Intangible Assets | |
Goodwill and Purchased Intangible Assets | 6. Goodwill and Purchased Intangible Assets Goodwill Goodwill as of June 30, 2015 and 2014 and changes in the carrying amount of goodwill for the respective periods are as follows (in thousands): June 30, 2015 June 30, 2014 Balance at the beginning of the period $ $ Currency translation and other adjustments ) ) ​ ​ ​ ​ ​ ​ ​ ​ Balance at the end of the period $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In connection with the acquisition of TomoTherapy in fiscal year 2011, the Company recognized liabilities related to unrecognized tax benefits as part of purchase accounting. During its first quarter of fiscal year 2014, the Company determined that certain of these liabilities related to unrecognized tax benefits were recorded in error. The Company evaluated the effects of this error on the financial statements and concluded that the error was not material to any prior annual or interim periods or the current period. In September of 2013, the Company reduced goodwill and accrued liabilities by $1.3 million to remove the liability recorded in error. In fiscal 2015 the Company performed its annual goodwill impairment test. Based on this analysis, the Company 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 intangible assets associated with completed acquisitions are as follows (in thousands): June 30, 2015 June 30, 2014 Useful Lives Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount (in years) Developed technology 5 - 6 $ $ ) $ $ $ ) $ During the year ended June 30, 2013, the Company recorded an impairment charge of approximately $12.2 million related to IPR&D technology due to a decrease in projected future usage of the technology. The Company did not identify any triggering events that would indicate potential impairment of its definite-lived intangible and long-lived assets as of June 30, 2015 and 2014. Amortization expense, excluding impairment charges related to purchased intangible assets was $7.9 million, $8.4 million and $10.4 million for the years ended June 30, 2015, 2014 and 2013, respectively. The estimated future amortization expense of purchased intangible assets as of June 30, 2015 is as follows (in thousands): Year Ending June 30, Amount 2016 $ 2017 2018 and thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Investment in CPAC
Investment in CPAC | 12 Months Ended |
Jun. 30, 2015 | |
Investment in CPAC | |
Investment in CPAC | 7. Investment in CPAC In April 2008, TomoTherapy established an affiliate, CPAC, to develop a compact proton therapy system for the treatment of cancer. Between the date of formation of CPAC through December 2012, the Company and TomoTherapy contributed both cash and intellectual property to CPAC, resulting in a combined equity interest of approximately 15.4% of the outstanding stock of CPAC and approximately 16.3% on a fully diluted basis. As of the Company's acquisition of TomoTherapy on June 10, 2011, the Company determined that CPAC was a variable interest entity, as CPAC depended on the Company, TomoTherapy and other investors to fund its operations. Under the accounting standards for consolidating variable interest entities, the consolidating investor is the entity with the power to direct the activities of the venture that most significantly impact the venture's economic performance and with the obligation to absorb losses or the right to receive benefits from the venture that could potentially be significant to the venture. Although the Company and its subsidiary held less than a 50% ownership interest in CPAC, it was determined that the Company met these two characteristics, and therefore, was the primary beneficiary of CPAC. The Company consolidated the results of operations of CPAC from June 10, 2011 to December 21, 2012. On December 21, 2012, the Company and CPAC entered into a Purchase Agreement and Release, or Purchase Agreement, which provided for all the equity and debt investments held by the Company in CPAC to be purchased by CPAC for a nominal consideration. In addition, the Company assigned all its rights to the Dielectric Wall Accelerator, or DWA technology licensed from Lawrence Livermore National Security, LLC to CPAC. As a result of the Purchase Agreement, the Company concluded that it was no longer the primary beneficiary of CPAC since it did not have any variable interest in CPAC. In the second quarter of fiscal 2013, the Company deconsolidated CPAC and recorded a loss of $3.4 million, resulting from the write-down of the carrying value of CPAC's net liabilities, the write-off of receivables from CPAC and the non-controlling interest in CPAC, net of cash consideration received. The results of operations of CPAC, including the loss on deconsolidation of CPAC and the losses attributable to the non-controlling interest recorded for the year ended June 30, 2013has been presented as discontinued operations in the consolidated statements of operations and comprehensive loss. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies Operating Lease Agreements and Long-term Debt The Company leases office and manufacturing space under non-cancelable operating leases with various expiration dates through December 2023. Rent expense was $8.0 million, $6.5 million and $8.7 million for the years ended June 30, 2015, 2014 and 2013, respectively. The terms of some of the facility leases provide for rental payments on a graduated scale. For these leases the Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. The Company is also required to make semi-annual interest payments on the Convertible Notes. See Note 13, Debt , for details. Future minimum lease payments under non-cancelable operating lease agreements and long-term principal and interest on the Convertible Notes as of June 30, 2015 are as follows (in thousands): Year Ending June 30, Operating Leases Long-term Debt(1) 2016 $ $ 2017 2018 2019 — 2020 — Thereafter — ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) These amounts represent principal and interest cash payments over the contractual life of the debt obligations, including anticipated interest payments that are not recorded on the Company's consolidated balance sheet. Any conversion, premium, redemption or purchase of Convertible Notes would impact cash payments noted in the preceding table. 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 recorded no liability associated with its indemnification agreements as it is not aware of any pending or threatened actions that represent probable losses as of June 30, 2015. Royalty Agreement The Company has an exclusive license agreement with the Wisconsin Alumni Research Foundation, or WARF, to make, use, sell and otherwise distribute products under certain of WARF's patents anywhere in the world. The Company is required to pay WARF a royalty for each TomoTherapy System sold that includes the licensed technology. The license agreement expires upon expiration of the patents and may be terminated earlier if the Company so elects. WARF has the right to terminate the license agreement if the Company does not meet the minimum royalty obligation of $0.3 million per year, or if the Company commits any breach of the license agreement's covenants. The Company recorded royalty costs of $0.6 million, $0.7 million and $0.6 million for the years ended June 30, 2015, 2014 and 2013, respectively, which were recorded in cost of revenue or deferred cost of revenue. The Company had accrued liabilities of approximately $0.2 million and $0.1 million at June 30, 2015 and 2014, respectively, related to this agreement. Software License Indemnity 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 June 30, 2015. Litigation From time to time, the Company is involved in legal proceedings arising in the ordinary course of its business. The Company records a provision for a loss when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Currently, management believes the Company does not have any probable and estimable losses related to any current legal proceedings and claims. Although occasional adverse decisions or settlements may occur, except as described in the matters below, 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. For certain legal proceedings, management believes that there is a reasonable possibility that material losses may be incurred; however, the Company is unable to reasonably estimate a range of reasonably possible losses with respect to these matters. 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. Rotary Systems On April 28, 2011, a former supplier to TomoTherapy, Rotary Systems Incorporated, ("Rotary Systems"), filed suit in Minnesota state court, Tenth Judicial District, Anoka County, against TomoTherapy alleging misappropriation of trade secrets, as well as several other counts alleging various theories of injury. Rotary Systems alleges TomoTherapy misappropriated Rotary Systems' trade secrets pertaining to a component previously purchased from Rotary Systems, which component TomoTherapy now purchases from a different supplier. The suit alleges TomoTherapy improperly supplied the alleged trade secrets to its present supplier, Dynamic Sealing Technologies Inc. (also a named defendant in the suit). Rotary Systems has made an unspecified claim for damages of greater than $50,000. TomoTherapy moved to dismiss the case and, on August 29, 2011, the court granted the motion to dismiss with respect to all counts other than the count alleging misappropriation of trade secrets. On May 21, 2012, the court gave Rotary Systems sixty days to identify the alleged trade secrets with specificity or face dismissal of its claim with prejudice. The court held a hearing on September 20, 2012 to review Rotary Systems' amended complaint. TomoTherapy filed a motion for summary judgment on the trade secret claim, the court ruled in favor of TomoTherapy on December 5, 2013, and Rotary Systems appealed. On December 22, 2014, the Minnesota Court of Appeals reversed the district court's dismissal of Rotary Systems' trade secrets claim and remanded it to the district court but affirmed the dismissal of Rotary Systems' other claims. Sarif Biomedical Patent Litigation On January 28, 2013, Sarif Biomedical filed a patent infringement complaint against the Company in the U.S. District Court for the District of Delaware. The complaint alleges the Company's CyberKnife System directly infringes U.S. Patent No. 5,755,725 and seeks unspecified monetary damages for the alleged infringement. Accuray filed an answer to the complaint in March 2013. The parties have exchanged initial discovery requests and responses. The court issued a scheduling order on April 29, 2014. Accuray made its first document production on May 30, 2014. On January 7, 2015, the parties entered into a written settlement agreement resolving the lawsuit. This settlement didn't have a material impact on the results of operations for the three or nine months ended March 31, 2015. On January 13, 2015, the court entered an order dismissing the case and all claims with prejudice. Cowealth Medical On February 27, 2014, Cowealth Medical Holding Co., Ltd. ("Cowealth"), Accuray's former distributor in China, submitted a request for binding arbitration with the International Chamber of Commerce International Court of Arbitration ("ICC") alleging, among other matters, that Accuray breached its distributor agreement with Cowealth by wrongfully terminating Cowealth as its distributor and misappropriated certain of Cowealth's confidential information. Cowealth is seeking damages of approximately $170.0 million and injunctive relief. Accuray has filed counterclaims for damages of approximately $35.0 million. Accuray's answer and counterclaim were submitted to the ICC on May 12, 2014, and Cowealth served its reply on June 27, 2014. A hearing was held in Hong Kong between January 26, 2015 and February 6, 2015. The parties filed closing submissions and reply closing submissions in March 2015. The Company expects the arbitrator to render a decision sometime between October 2015 and February 2016. We are unable to predict the outcome of this lawsuit and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity | |
Stockholders' Equity | 9. Stockholders' Equity At June 30, 2015, the Company had 13.2 million and 21.6 million shares of common stock reserved for future issuance to the holders of the 3.75% Convertible Senior Notes and 3.50% Convertible Senior Notes (including Series A Convertible Senior Notes), respectively, and had 12.2 million shares of common stock reserved for issuance under the stock incentive plans and the employee stock purchase plan. |
Stock Incentive Plan and Employ
Stock Incentive Plan and Employee Stock Purchase Plan | 12 Months Ended |
Jun. 30, 2015 | |
Stock Incentive Plan and Employee Stock Purchase Plan | |
Stock Incentive Plan and Employee Stock Purchase Plan | 10. Stock Incentive Plan and Employee Stock Purchase Plan As of June 30, 2015, the Company had two outstanding stock incentive plans: the 2007 Stock Incentive Plan, or the 2007 Plan; and the 1998 Stock Incentive Plan, or the1998 Plan. The 2007 Plan permits the granting of stock options, restricted stock awards, or RSAs and restricted stock units, or RSUs. The vesting of RSUs under the 2007 Plan may be time-based (over the requisite service period), performance-based, or PSUs or market-based, or MSUs. Only employees of the Company are eligible to receive incentive stock options. Non-employees may be granted non-qualified options. Stock options granted under the 2007 Plan have an exercise price of at least 100% of the fair market value of the underlying stock on the grant date and no less than 85% of the fair value for non-qualified stock options. The stock options have 10 year contractual terms and generally become exercisable for 25% of the option shares one year from the date of grant and then ratably over the following 36 months. Time-based RSUs generally vest 25% of the share units covered by the grant on each of the first through fourth anniversaries of the date of the grant. However, certain of the outstanding RSUs vest 50% upon the first anniversary year of the grant date, and 50% upon the second anniversary year of the grant date. The Board of Directors has the discretion to use different vesting schedules. As of June 30, 2015, the 1998 Plan continued to remain in effect; however, the Company can no longer make equity awards under the plan. The following table summarizes the share-based compensation charges included in the Company's consolidated statements of operations and comprehensive loss (in thousands): Years ended June 30, 2015 2014 2013 Cost of revenue $ $ $ Research and development Selling and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the years ended June 30, 2014 and 2013, the Company capitalized share-based compensation costs of $0.5 million and $0.6 million, respectively, as components of inventory. The amount capitalized for the year ended June 30, 2015 was immaterial. Stock Options The Company did not grant any stock options in the years ended June 30, 2015 and 2014. The Company used the Black-Scholes option pricing model to measure the fair value of stock options grants. During the year ended June 30, 2013 the following weighted average assumptions were used: Year Ended June 30, 2013 Risk-free interest rate 0.87% - 1.15% Dividend yield — Expected life 6.25 Expected volatility 52.7% - 63.2% A summary of option activity under the Company's Incentive Plan during the fiscal years is presented below (in thousands, except per share and term amounts): Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (in thousands) Balance at June 30, 2012 $ $ Options granted $ Options exercised ) $ Options forfeited/expired ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2013 $ $ Options granted — $ — Options exercised ) $ Options forfeited/expired ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2014 $ $ Options granted — $ — Options exercised ) $ Options forfeited/expired ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested or Expected to vest at June 30, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the fair value of the Company's common stock on June 30, 2015 of $6.74 and the exercise price of the options) that would have been received by option holders if all options exercisable had been exercised on June 30, 2015. The total intrinsic value of options exercised in the years ended June 30, 2015, 2014 and 2013 was approximately $1.4 million, $3.8 million and $4.5 million, respectively. During the years ended June 30, 2015, 2014 and 2013, the Company recognized $1.1 million, $1.7 million and $2.9 million, respectively, of share-based compensation expense for stock options granted to employees. The weighted average fair value of options granted was $3.48 per share for the year ended June 30, 2013. Tax benefits from tax deductions for exercised options and disqualifying dispositions in excess of the deferred tax asset attributable to stock compensation costs for such options are credited to additional paid-in capital. Realized excess tax benefits related to stock options exercises was zero for each of the years ended June 30, 2015, 2014 and 2013. As of June 30, 2015, there was approximately $1.0 million of unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options, which is expected to be recognized over a weighted average period of 1.26 years. The following table summarizes information about outstanding and exercisable options at June 30, 2015 (in thousands, except years and exercise prices): Options Outstanding Options Exercisable Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $4.00 - 4.01 $4.23 - 5.68 $5.74 - 6.28 $6.32 - 6.58 $6.63 - 6.90 $6.96 $7.06 - 10.36 $13.05 - 22.70 $28.47 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Outstanding $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted Stock The following table summarizes the activity of RSUs, PSUs and MSUs: Unvested Restricted Stock Restricted Stock Units (000's) Performance Stock Units (000's) Market Stock Units (000's) Total Number of Shares Underlying Stock Awards (000's) Weighted Average Grant Date Fair Value Per Share Unvested at June 30, 2012 — $ Granted Vested ) ) — ) Cancelled/Forfeited ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at June 30, 2013 Granted Vested ) ) — ) Cancelled/Forfeited ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at June 30, 2014 Granted Vested ) ) — ) Cancelled/Forfeited ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at June 30, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2015, there was approximately $17.7 million of unrecognized compensation cost, net of estimated forfeitures, related to restricted stock, which is expected to be recognized over a weighted average period of 2.21 years. Restricted Stock Units The Company recognized $7.9 million, $6.4 million and $3.6 million of share-based compensation expense, net of estimated forfeitures, related to RSUs during the years ended June 30, 2015, 2014 and 2013. The weighted average grant date fair value per share of RSUs was $6.79, $7.32 and $5.89 for the years ended June 30, 2015, 2014 and 2013, respectively. As of June 30, 2015, there was approximately $15.5 million of unrecognized compensation cost, net of estimated forfeitures, related to RSUs. The aggregate fair market value of RSUs that vested during the year ended June 30, 2015 was $8.1 million. The Company recognized $0.3 million of share-based compensation expense during the year ended June 30, 2013, related to RSAs assumed in connection with the acquisition of TomoTherapy. The expense recognized in fiscal 2015 and 2014 was immaterial. Performance Stock Units During fiscal 2012, the Compensation Committee approved the grant of 1.0 million PSUs to certain employees of the Company. The PSUs were cancelled in fiscal 2014 as it was determined that the Company did not achieve the requisite performance targets. The Compensation Committee approved the grant of 20,000, 70,000 and 36,000 PSUs to select employees of the Company in the years ended June 30, 2015, 2014 and 2013, respectively. Of these PSUs, 25,000, 25,000 and 18,000 vested in the years ended June 30, 2015, 2014 and 2013, respectively, due to the achievement of the requisite performance targets while zero, 38,000 and zero were cancelled in the years ended June 30, 2015, 2014 and 2013, respectively. The Company recognized $0.2 million and $0.1 million of share-based compensation expense, net of estimated forfeitures, related to PSUs during the years ended June 30, 2015 and 2014, respectively. The expense recognized during the year ended June 30, 2013 was immaterial. Market Stock Units The Compensation Committee approved the performance equity program, referred to as the market stock unit program, or MSU program, in October 2012. The Company's MSU Program uses the Russell 2000 index as a performance benchmark and requires that the Company's total stockholder return match or exceed that of the Russell 2000. Based on a sliding scale of how much the Company's total stockholder return outperforms the Russell 2000 benchmark, the participating executives can earn up to a maximum of 150% of the target number of shares over two measurement periods. The Company uses a Monte-Carlo simulation to calculate the fair value of the award on the grant date. The Company recognized $3.4 million, $1.8 million and $0.3 million of share-based compensation expense, net of estimated forfeitures, related to MSUs during the years ended June 30, 2015, 2014 and 2013, respectively. The weighted average grant date fair value per share of MSUs was $6.64, $7.18 and $5.39 for the years ended June 30, 2015, 2014 and 2013, respectively. As of June 30, 2015, there was approximately $2.2 million of unrecognized compensation cost, net of estimated forfeitures, related to MSUs. There were no vested MSUs and 0.2 million MSUs cancelled in fiscal 2015 as the performance targets were not certified by the Compensation Committee. Subsequent to fiscal 2015 year-end, the Compensation Committee certified the achievement of the performance targets for 0.4 million shares related to the first tranche of the fiscal 2014 grants which achieved 132% of target. There were no vested MSUs and 0.2 million of MSUs were cancelled in fiscal 2014 as the performance targets were not achieved for the first measurement period. Assuming 100% performance target will be achieved, 0.6 million and 0.5 million of MSUs will vest by the end of fiscal 2016 and 2017, respectively. Employee Stock Purchase Plan Under the Company's 2007 Employee Stock Purchase Plan, or ESPP, qualified employees are permitted to purchase the Company's common stock at 85% of the lower of the fair market value of the common stock on the commencement date of each offering period or the fair market value on the specified purchase date. The ESPP is deemed compensatory and compensation costs are accounted for under ASC 718, Stock Compensation . Employees' payroll deductions may not exceed 10% of their salaries. Employees may purchase up to 2,500 shares per period provided that the value of the shares purchased in any calendar year may not exceed $25,000, as calculated pursuant to the purchase plan. The Company estimates the fair value of ESPP shares at the date of grant using the Black-Scholes option pricing model. The weighted average assumptions were as follows: Years Ended June 30, 2015 2014 2013 Risk-free interest rate 0.07% - 0.26% 0.06% - 0.13% 0.07% - 0.14% Dividend yield — — — Expected life 0.5 - 1.0 0.5 - 1.0 0.50 Expected volatility 27.1% - 41.3% 27.5% - 46.5% 40.3% - 53.7% The risk-free rate for the expected term of the ESPP option was based on the U.S. Treasury Constant Maturity rate for each offering period; expected volatility was based on the historical volatility of the Company's common stock; and the expected term was based upon the offering period of the ESPP. For the years ended June 30, 2015, 2014 and 2013, the Company recognized $1.3 million, $1.3 million and $1.3 million, respectively, of compensation expense related to its ESPP. The Company issued 0.7 million shares under the ESPP in fiscal 2015 and 2014, respectively, at a weighted average price per share of $5.61 and $5.44, respectively. As of June 30, 2015, total unrecognized compensation cost related to the ESPP plan was $0.6 million, which the Company expects to recognize over a weighted average period of 0.6 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Taxes | |
Income Taxes | 11. Income Taxes Loss before provision for income taxes on the accompanying statements of operations and comprehensive loss included the following components (in thousands): Years Ended June 30, 2015 2014 2013 Domestic $ ) $ ) $ ) Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total worldwide $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The provision for income taxes consisted of the following (in thousands): Years Ended June 30, 2015 2014 2013 Current: Federal $ — $ — $ — State ) Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current Deferred: Federal — — — State — — — Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision for income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax payable was $0.4 million, $2.0 million and $1.2 million at June 30, 2015, 2014 and 2013, respectively. A reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes included in the accompanying consolidated statements of operations and comprehensive loss is as follows (in thousands): Years Ended June 30, 2015 2014 2013 U.S. federal taxes (benefit): At federal statutory rate $ ) $ ) $ ) State tax, net of federal benefit ) Stock-based compensation expense Change in valuation allowance Credits ) ) ) Other Foreign taxes ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's net deferred tax assets were as follows (in thousands): June 30, 2015 2014 Deferred tax assets: Federal and state net operating losses $ $ Accrued expenses and reserves Deferred revenue Credits Share-based compensation expense Capitalized research and development — Unicap Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Deferred tax liabilities: Debt discount ) ) Fixed assets/intangibles ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company has not provided for U.S. income taxes on undistributed earnings of its foreign subsidiaries because it intends to permanently re-invest these earnings outside the U.S. The cumulative amount of such undistributed earnings upon which no U.S. income taxes have been provided as of June 30, 2015 was $20.3 million. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be repatriated to the U.S. As of June 30, 2015 the Company had approximately $329.6 million and $157.5 million in federal and state net operating loss carryforwards, respectively. The federal and state carryforwards expire in varying amounts beginning in 2019 for federal and 2016 for state purposes. Such net operating loss carryforwards include excess tax benefits from employee stock option exercises which, in accordance with guidance for income tax accounting, have not been recorded within the Company's deferred tax asset balances. The Company will record approximately $3.9 million as a credit to additional paid-in capital as and when such excess benefits are ultimately realized. In addition, as of June 30, 2015, the Company had federal and state research and development tax credits of approximately $16.3 million and $16.5 million, respectively. The federal research credits will begin to expire in 2019, the California research credits have no expiration date, and the other state research credits began to expire in 2016. Utilization of the Company's net operating loss and credit carryforwards is subject to annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. The acquisition of TomoTherapy and the resulting Section 382 limitation should not result in the expiration of net operating losses or credits due to the Section 382 limitation. Based on the available objective evidence and history of losses, the Company has established a 100% valuation allowance against the combined domestic net deferred tax assets of Accuray and TomoTherapy due to uncertainty surrounding the realization of such deferred tax assets. The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in thousands): Years Ended June 30, 2015 2014 2013 Balance at beginning of year $ $ $ Tax positions related to current year: Additions Tax positions related to prior years: Additions — Reductions ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The calculation of unrecognized tax benefits involves dealing with uncertainties in the application of complex global tax regulations. Management regularly assesses the Company's tax positions in respect to legislative, bilateral tax treaty, regulatory and judicial developments in the countries in which the Company does business. The reduction in prior years tax positions primarily relates to lapses of applicable statutes of limitations. The Company anticipates that except for $0.4 million in uncertain tax positions that may be reduced related to the lapse of various statutes of limitation, there will be no material changes in uncertain tax positions in the next 12 months. As of June 30, 2015, the amount of gross unrecognized tax benefits was $17.0 million of which $10.5 million would affect the Company's effective tax rate if realized. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of June 30, 2015 and 2014, the Company had approximately $0.9 million and $0.7 million, respectively, of accrued interest and penalties related to uncertain tax positions. The Company files income tax returns in the United States federal, various states and foreign jurisdictions. Due to attributes being carried forward and utilized during open years, the statute of limitations remains open for the U.S. federal jurisdiction and domestic states for tax years from 1999 and forward. The material foreign jurisdictions are France, Switzerland, and Japan, whose tax years remain open from 2011, 2009, and 2009, respectively. The Company is also subject to periodic examination of its income tax returns by the Internal Revenue Service (IRS) and other tax authorities, and in some cases the Company has received additional tax assessments which have not been significant. Currently, the Company is under audit by the German tax authorities which is not expected to have a material impact on the results of operations. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Jun. 30, 2015 | |
Other Income (Expense), Net | |
Other Income (Expense), Net | 12. Other Income (Expense), Net Other income (expense), net consisted of the following (in thousands): Years Ended June 30, 2015 2014 2013 Interest expense on convertible notes $ ) $ ) $ ) Foreign currency transaction loss ) ) ) Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other expense, net $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt
Debt | 12 Months Ended |
Jun. 30, 2015 | |
Debt | |
Debt | 13. Debt 3.75% Convertible Senior Notes due August 2016 On August 1, 2011, the Company issued the 3.75% Convertible Notes to certain qualified institutional buyers or QIBs. The 3.75% Convertible Notes were offered and sold to the QIBs pursuant to Rule 144A under the Securities Act of 1933, as amended or Rule 144A. The net proceeds from the $100 million offering, after deducting the initial purchaser's discount and commission and the related offering costs, were approximately $96.1 million. The offering costs and the initial purchaser's discount and commission (which are recorded in Other Assets) are both being amortized to interest expense using the effective interest method over five years. The 3.75% Convertible Notes bear interest at a rate of 3.75% per year, payable semi-annually in arrears in cash on February 1 and August 1 of each year, beginning on February 1, 2012. The 3.75% Convertible Notes will mature on August 1, 2016, unless earlier repurchased, redeemed or converted. The 3.75% Convertible Notes were issued under an Indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Holders of the 3.75% Convertible Notes may convert their 3.75% Convertible Notes at any time on or after May 1, 2016 until the close of business on the business day immediately preceding the maturity date. Prior to May 1, 2016, holders of the 3.75% Convertible Notes may convert their 3.75% Convertible Notes only under the following circumstances: (1) during any calendar quarter after the calendar quarter ending September 30, 2011, and only during such calendar quarter, if the closing sale price of the Company's common stock for each of 20 or more trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price in effect on the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading-day period (such five consecutive trading-day period, the "Note Measurement Period") in which the trading price per $1,000 principal amount of 3.75% Convertible Notes for each trading day of that Note Measurement Period was equal to or less than 98% of the product of the closing sale price of shares of the Company's common stock and the applicable conversion rate for such trading day; (3) if the Company calls any or all of the 3.75% Convertible Notes for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate transactions as described in the Indenture. Upon conversion by holders of the 3.75% Convertible Notes, the Company will have the right to pay or deliver, as the case may be, cash, shares of common stock of the Company or a combination thereof, at the Company's election. At any time on or prior to the 33rd business day immediately preceding the maturity date, the Company may irrevocably elect to (a) deliver solely shares of common stock of the Company in respect of the Company's conversion obligation or (b) pay cash up to the aggregate principal amount of the 3.75% Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock of the Company or a combination thereof in respect of the remainder, if any, of the Company's conversion obligation in excess of the aggregate principal amount of the 3.75% Convertible Notes being converted. The initial conversion rate is 105.5548 shares of the Company's common stock per $1,000 principal amount of 3.75% Convertible Notes (which represents an initial conversion price of approximately $9.47 per share of the Company's common stock). The conversion rate, and thus the conversion price, are subject to adjustment as further described below. Holders of the 3.75% Convertible Notes who convert their 3.75% Convertible Notes in connection with a "make-whole fundamental change," as defined in the Indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, in the event of a "fundamental change," as defined in the Indenture, holders of the 3.75% Convertible Notes may require the Company to purchase all or a portion of their 3.75% Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of 3.75% Convertible Notes, plus accrued and unpaid interest, if any, to, but not including, the fundamental change repurchase date. Prior to the maturity date, the Company may redeem for cash all or a portion of the 3.75% Convertible Notes if the closing sale price of its common stock exceeds 130% of the applicable conversion price (the initial conversion price is approximately $9.47 per share of common stock) of such 3.75% Convertible Notes for at least 20 trading days during any consecutive 30 trading-day period (including the last trading day of such period). In accordance with ASC 470-20, the Company separately accounts for the liability and equity conversion components of the 3.75% Convertible Notes. The principal amount of the liability component of the 3.75% Convertible Notes was $75.9 million as of the date of issuance based on the present value of its cash flows using a discount rate of 10%, our approximate borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature. The carrying value of the equity conversion component was $24.1 million. A portion of the initial purchaser's discount and commission and the offering costs totaling $0.9 million was allocated to the equity conversion component. The liability component is being accreted to the principal amount of the 3.75% Convertible Notes using the effective interest method over five years. 3.50% Convertible Senior Notes due February 2018 In February 2013, the Company issued $115.0 million aggregate principal amount of its 3.50% Convertible Notes to certain QIBs. The 3.50% Convertible Notes were offered and sold to the QIBs pursuant to Rule 144A. The net proceeds from the offering, after deducting the initial purchaser's discount and commission and the related offering costs, were approximately $110.5 million. The offering costs and the initial purchaser's discount and commission (which are recorded in Other Assets) are both being amortized to interest expense using the effective interest method over five years. The 3.50% Convertible Notes bear interest at a rate of 3.50% per year, payable semi-annually in arrears in cash on February 1 and August 1 of each year, which began on August 1, 2013. The 3.50% Convertible Notes will mature on February 1, 2018, unless earlier repurchased, redeemed or converted. In April 2014, through a series of transactions, the Company refinanced approximately $70.3 million aggregate principal amount of the 3.50% Convertible Notes with approximately $70.3 million aggregate principal amount of the Company's new 3.50% Series A Convertible Senior Notes due 2018 (the "3.50% Series A Convertible Notes"). The 3.50% Convertible Notes were issued under an Indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Holders of the 3.50% Convertible Notes may convert their 3.50% Convertible Notes at any time until the close of business on the business day immediately preceding the maturity date. The 3.50% Convertible Notes are convertible, as described below into common stock of the Company at an initial conversion rate equal to 187.6877 shares of common stock per $1,000 principal amount of the 3.50% Convertible Notes, which is equivalent to a conversion price of approximately $5.33 per share of common stock, subject to adjustment. Holders of the 3.50% Convertible Notes who convert their 3.50% Convertible Notes in connection with a "make-whole fundamental change", as defined in the Indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, in the event of a "fundamental change," as defined in the Indenture, holders of the 3.50% Convertible Notes may require the Company to purchase all or a portion of their 3.50% Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of 3.50% Convertible Notes, plus accrued and unpaid interest, if any, to, but not including, the fundamental change repurchase date. In accordance with guidance in ASC 470-20, Debt with Conversion and Other Options and ASC 815-15, Embedded Derivatives , the Company determined that the embedded conversion components of the 3.50% Convertible Note do not require bifurcation and separate accounting. The remaining $44.7 million principal amount of the 3.50% Convertible Note has been recorded in Long-term Debt on the consolidated balance sheet as of June 30, 2015. 3.50% Series A Convertible Senior Notes due February 2018 On April 17, 2014, the Company entered into note exchange agreements with certain holders (the "Participating Holders") of the 3.50% Convertible Notes to refinance approximately $70.3 million aggregate principal amount of the 3.50% Convertible Notes with approximately $70.3 million aggregate principal amount of the 3.50% Series A Convertible Notes. Pursuant to the note exchange agreements, the Company also paid the Participating Holders an aggregate of approximately $0.4 million in cash in connection with such transactions. The principal amount of 3.50% Convertible Notes refinanced for each $1,000 principal amount of the 3.50% Series A Convertible Notes was $1,000 and the amount in cash paid per $1,000 principal amount of such 3.50% Convertible Notes delivered was determined in individual negotiations between the Company and each Participating Holder. The Series A Convertible Notes have the same interest rate, maturity and other terms as the 3.50% Convertible Notes, except that the 3.50% Series A Convertible Notes are convertible into cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's option. The 3.50% Series A Convertible Notes were issued under an Indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Holders of the 3.50% Series A Convertible Notes may convert their Securities at any time on or after November 1, 2017 until the close of business on the business day immediately preceding the maturity date. Prior to November 1, 2017, holders of the 3.50% Series A Convertible Notes may convert their Securities only under the following circumstances: (1) during any calendar quarter after the calendar quarter ending September 30, 2014, and only during such calendar quarter, if the closing sale price of the Company's common stock for each of 20 or more trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price in effect on the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading-day period (such five consecutive trading-day period, the "Note Measurement Period") in which the trading price per $1,000 principal amount of 3.50% Series A Convertible Notes for each trading day of that Securities Measurement Period was equal to or less than 98% of the product of the closing sale price of shares of the Company's common stock and the applicable conversion rate for such trading day; or (3) upon the occurrence of specified corporate transactions as described in the Indenture. Upon conversion by holders of the 3.50% Series A Convertible Notes, the Company will have the right to pay or deliver, as the case may be, cash, shares of common stock of the Company or a combination thereof, at the Company's election. At any time on or prior to the 17th business day immediately preceding the maturity date, the Company may irrevocably elect to (a) deliver solely shares of common stock of the Company in respect of the Company's conversion obligation or (b) pay cash up to the aggregate principal amount of the 3.50% Series A Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock of the Company or a combination thereof in respect of the remainder, if any, of the Company's conversion obligation in excess of the aggregate principal amount of the 3.50% Series A Convertible Notes being converted. The initial conversion rate is 187.6877 shares of the Company's common stock per $1,000 principal amount of 3.50% Series A Convertible Notes (which represents an initial conversion price of approximately $5.33 per share of the Company's common stock). The conversion rate, and thus the conversion price, are subject to adjustment as further described below. Holders of the 3.50% Series A Convertible Notes who convert their Notes in connection with a "make-whole fundamental change", as defined in the Indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, in the event of a "fundamental change," as defined in the Indenture, holders of the 3.50% Series A Convertible Notes may require the Company to purchase all or a portion of their 3.50% Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 3.50% Series A Convertible Notes, plus accrued and unpaid interest, if any, to, but not including, the fundamental change repurchase date. In accordance with Accounting Standards Codification, or ASC 470-20, Debt with Conversion and Other Options , the Company separately accounts for the liability and equity conversion components of the 3.50% Series A Convertible Notes. The principal amount of the liability component of the 3.50% Series A Convertible Notes was $62.5 million as of the date of issuance based on the present value of its cash flows using a discount rate of 7%, our approximate borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature. The carrying value of the equity conversion component was $7.9 million. In addition, the portion of the cash amount paid to the Participating Holders totaling $0.4 million was allocated to the debt discount with the remaining $47,000 to the equity component. The liability component is being accreted to the principal amount of the 3.50% Series A Convertible Notes using the effective interest method through the maturity in February 2018. The following table presents the carrying values of all Convertible Notes as of June 30, 2015 (in thousands): 3.75% Notes 3.50% Notes 3.50% Series A Notes TOTAL Carrying amount of the equity conversion component $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Principal amount of the Convertible Notes $ $ $ $ Unamortized debt discount ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net carrying amount $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2015, the remaining period over which the unamortized debt discount of the 3.75% Convertible Notes will be amortized is 13 months using an effective interest rate of 10.9%; the remaining amortization period of the 3.50% Series A Convertible Notes is 31 months using an effective interest rate of 7.10%. A summary of interest expense on all Convertible Notes is as follows (in thousands): Year ended June 30, 2015 2014 2013 Interest expense related to contractual interest coupon $ $ $ Interest expense related to amortization of debt discount Interest expense related to amortization of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2015 | |
Employee Benefit Plans | |
Employee Benefit Plans | 14. Employee Benefit Plans The Company's employee savings and retirement plan is qualified under Section 401(k) of the United States Internal Revenue Code. Employees may make voluntary, tax-deferred contributions to the 401(k) Plan up to the statutorily prescribed annual limit. The Company makes discretionary matching contributions to the 401(k) Plan on behalf of employees up to the limit determined by the Board of Directors. The Company contributed $2.3 million, $2.1 million and $2.3 million to the 401(k) Plan during the years ended June 30, 2015, 2014 and 2013, respectively. |
Defined Benefit Pension Obligat
Defined Benefit Pension Obligation | 12 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Obligation | |
Defined Benefit Pension Obligation | 15. Defined Benefit Pension Obligation The Company has established a defined pension plan for its employees in the Switzerland subsidiary. The plan provides benefits to employees upon retirement, death or disability. The Company uses June 30 as the year-end measurement date for this plan. The unfunded liability of $1.7 million was recognized in long-term other liabilities in the accompanying balance sheet as of June 30, 2015. Actuarial loss of $1.0 million was recognized in other comprehensive income (loss) in fiscal 2015. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring Charges | |
Restructuring Charges | 16. Restructuring Charges Fiscal 2013 Restructuring During fiscal 2013, the Company initiated a number of restructuring activities to address various areas of its business, including changes in the executive management team and increased focus on improving its commercial execution, revenue growth and profitability. In the year ended June 30, 2013, the Company recorded restructuring charges of $9.1 million, included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. Restructuring expenses during the year ended June 30, 2013 were comprised of the following: • Lease termination charge of $1.4 million, net of estimated sub-lease income, for the remaining lease obligations on an office facility that the Company vacated, and a charge of $0.3 million related to the disposition of certain fixed assets and the write-down of leasehold improvements at this office facility. • Severance-related charges of $7.4 million primarily related to the terminations of the Company's former Chief Executive Officer and Chief Operating Officer and a 13% reduction in its worldwide headcount. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Data (unaudited) | |
Quarterly Financial Data (unaudited) | 17. Quarterly Financial Data (unaudited) The following table provides the selected quarterly financial data for fiscal 2015 and 2014 (in thousands, except per share amounts): Quarters ended September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 Net revenue $ $ $ $ Gross profit $ $ $ $ Net loss $ ) $ ) $ ) $ ) Net loss per share—basic and diluted $ ) $ ) $ ) $ ) Shares used in basic and diluted per share calculation Quarters ended September 30, 2013 December 31, 2013 March 31, 2014 June 30, 2014 Net revenue $ $ $ $ Gross profit $ $ $ $ Net loss $ ) $ ) $ ) $ ) Net loss per share—basic and diluted $ ) $ ) $ ) $ ) Shares used in basic and diluted per share calculation |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with GAAP, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and a variable interest entity, Compact Particle Acceleration Corporation, or CPAC until the deconsolidation of CPAC on December 21, 2012 (for further information, see Note 7, Investment in CPAC ). All significant inter-company transactions and balances have been eliminated in consolidation. |
Discontinued Operations | Discontinued Operations As a result of the deconsolidation of CPAC, the results of operations of CPAC, including the loss on deconsolidation of CPAC and the loss attributable to the non-controlling interest recorded for the year ended June 30, 2013 has been presented as discontinued operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with 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. Key estimates and assumptions made by the Company relate to revenue recognition, business combinations and assessment of recoverability of goodwill and intangible assets, valuation of inventories, share-based compensation expense, convertible notes, income taxes, allowance for doubtful accounts and loss contingencies. Actual results could differ materially from those estimates. |
Foreign Currency | Foreign Currency The Company's international subsidiaries use their local currencies as their functional currencies. For those subsidiaries, assets and liabilities are translated at exchange rates in effect at the balance sheet date and income and expense accounts at the average exchange rate. Resulting translation adjustments are excluded from the determination of net loss and are recorded in accumulated other comprehensive income (loss) as a separate component of stockholders' equity. Net foreign currency exchange transaction gains or losses are included as a component of other income (expense), net, in the Company's consolidated statements of operations and comprehensive loss. |
Fair Value Measurements | Fair Value Measurements The carrying values of the Company's financial instruments including cash equivalents, restricted cash, accounts receivable and accounts payable are approximately equal to their respective fair values due to the relatively short-term nature of these instruments. Also refer to Note 4, Financial Instruments, for further details. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally. |
Investments | Investments The Company classifies all its investments as available-for-sale at the time of purchase since it is management's intent that these investments be available for current operations, and as such, includes these investments as short-term investments on its balance sheets. These investments primarily consist of commercial paper and investment-grade agency and corporate debt securities with original maturities longer than three months. Short-term investments classified as available-for-sale are recorded at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders' equity. Realized gains and losses are recorded in the consolidated statements of operations and comprehensive loss based on specific identification. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties The Company's cash and cash equivalents are mainly deposited with several major financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant risk on these balances. The Company has placed its investments with high-credit quality issuers. The Company does not invest an amount exceeding 5% of its combined cash, cash equivalents and investments in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies and money market accounts. There were no customers that represented 10% or more of total net revenue for the years ended June 30, 2015, 2014 and 2013. At June 30, 2015, one customer accounted for 18% of accounts receivable. At June 30, 2014, one customer accounted for 13% of accounts receivable. Accounts receivable are typically not collateralized. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. Accounts receivable are deemed past due in accordance with the contractual terms of the agreement. Accounts are charged against the allowance for doubtful accounts once collection efforts are unsuccessful. Historically, such losses have been within management's expectations. Single-source suppliers presently provide the Company with several components. In most cases, if a supplier was unable to deliver these components, the Company believes that it would be able to find other sources for these components subject to any regulatory qualifications, if required. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of certificates of deposit held as guarantees in connection with customer contracts and corporate leases as well as funds held as guarantees for Value-Added Tax, or VAT obligations in a foreign jurisdiction. |
Inventories | Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or market value. Excess and obsolete inventories are written down based on historical sales and forecasted demand, as judged by management. |
Revenue Recognition | Revenue Recognition The Company's revenue is primarily derived from sales of CyberKnife and TomoTherapy Systems and services, which include post-contract customer support or PCS, installation services, training and other professional services. The Company records its revenues net of any value added or sales tax. In all sales arrangements, the Company recognizes revenues when there is persuasive evidence of an arrangement, the fee is fixed or determinable, collection of the fee is reasonably assured and delivery has occurred. Payments received in advance of system shipment are recorded as customer advances and are recognized as revenue or deferred revenue upon product shipment or installation. The Company assesses the probability of collection based on a number of factors, including past transaction history with the customer and the credit-worthiness of the customer. The Company generally does not request collateral from its customers. If the Company determines that collection is not probable, the Company will defer the fee and recognize revenue upon receipt of cash. The Company frequently enters into sales arrangements that contain multiple elements or deliverables. For sale arrangements that contain multiple elements, the Company allocates the arrangement consideration to each element based on the relative selling price method, whereby the relative selling price of each deliverable is determined using vendor specific objective evidence, or VSOE of fair value, if it exists. VSOE of fair value for each element is based on the Company's standard rates charged for the product or service when such product or service is sold separately or based upon the price established by the Company's pricing committee when that product or service is not yet being sold separately. When the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements, which may be due to the Company infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history, the Company attempts to determine the selling price of each element based on third-party evidence of selling price, or TPE, as determined based on competitors' prices for similar deliverables when sold separately. When the Company is not able to establish selling price using VSOE or TPE, the Company uses its best estimate of selling price, or BESP, in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company determines BESP for a product or service by considering multiple factors including, but not limited to, pricing practices, internal costs, geographies and gross margin. The determination of BESP is made through annual analysis of the Company's pricing practices and adjusted if necessary. The Company has a limited number of software offerings which are not required to deliver its systems' essential functionality and can be sold separately. The Company accounts for the separate sale of its software products in accordance with the applicable guidance for software revenue recognition. The Company's multiple-element arrangements may also include software deliverables that are subject to the software revenue recognition guidance; and in these cases, the revenue for these multiple-element arrangements is allocated to the software deliverable and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using VSOE, TPE or BESP. The Company regularly reviews VSOE, TPE and BESP for all of its products and services. As the Company's go-to-market strategies and other factors change, the Company may modify its pricing practices in the future, which may impact the selling prices of systems and services as well as VSOE, TPE and BESP of systems and services. As a result, the Company's future revenue recognition for multiple element arrangements could differ materially from that recorded in the current period. Product Revenue The majority of product revenue is generated from sales of CyberKnife and TomoTherapy systems. If the Company is responsible for installation, the Company recognizes revenue after installation and acceptance of the system. Otherwise, revenue is generally recognized upon delivery, assuming all other revenue recognition criteria are met. The Company could sell its systems with PCS contracts, installation services, training, and at times, professional services. PCS contracts provide planned and corrective maintenance services, software updates, bug fixes, as well as call-center support. The Company records revenues from sales of systems, product upgrades and accessories to distributors depending on the terms of the distribution agreement as well as terms and conditions executed for each sale, and once all revenue recognition criteria have been met. The Company's agreements with customers and distributors for system sales generally do not contain product return rights. Certain distributor agreements include parts inventory buy-back provisions upon distributorship termination. The Company accrues an inventory buy-back liability when and if such distributorship termination is expected and the liability can be estimated. Service Revenue Service revenue is generated primarily from PCS (warranty period services and post warranty services), installation services, training, and professional services. PCS revenue is deferred and recognized over the service period. Installation service revenue is recognized concurrent with system revenue. Training revenues are recognized when services are performed, and professional service revenues that are not deemed essential to the functionality of the systems are recognized as such services are performed. Costs associated with service revenue are expensed when incurred, except when those costs are related to system upgrades where revenue recognition has been deferred. In those cases, the incremental costs are deferred and are recognized over the period of revenue recognition. |
Deferred Revenue and Deferred Cost of Revenue | Deferred Revenue and Deferred Cost of Revenue Deferred revenue consists of deferred product revenue and deferred service revenue. Deferred product revenue arises from timing differences between the shipment of product and satisfaction of all revenue recognition criteria consistent with the Company's revenue recognition policy. Deferred service revenue results from the advance payment for services to be delivered over a period of time, usually one year. Deferred cost of revenue consists of the direct costs associated with the manufacturing of units and direct service costs for which the revenue has been deferred in accordance with the Company's revenue recognition policies. Deferred revenue and associated deferred cost of revenue expected to be realized within one year are classified as current liabilities and current assets, respectively. |
Customer Advances | Customer Advances Customer advances represent payments made by customers in advance of product shipment. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are depreciated on a straight-line basis over the remaining term of the lease or the estimated useful life of the asset, whichever is shorter. Machinery and equipment are depreciated over five years. Furniture and fixtures are depreciated over four years. Computer and office equipment and computer software are depreciated over three years. Repairs and maintenance costs, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. |
Software Capitalization Costs | Software Capitalization Costs The Company capitalizes certain costs associated with obtaining or developing internal use software, including external direct costs of material and services. Software development costs relating to assets to be sold in the normal course of business are included in research and development and are expensed as incurred until technological feasibility is established. After technological feasibility is established, material software development costs are capitalized. The capitalized cost is then amortized on a straight-line basis over the estimated product life, or on the ratio of current revenues to total projected product revenue, whichever is greater. To date, the period between achieving technological feasibility, which the Company has defined as the establishment of a working model which typically occurs when the beta testing commences, and the general availability of such software has been short and software development costs qualifying for capitalization have been insignificant. Capitalized software costs are included in property, plant and equipment and amortized beginning when the software project is complete and the assets are ready for their intended use. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, including intangible assets, property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable using pretax undiscounted cash flows. Impairment, if any, is measured as the amount by which the carrying value of a long-lived asset exceeds its fair value. |
Business Combinations | Business Combinations The Company allocates the fair value of the purchase consideration of its acquisitions to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development, or IPR&D, based on their estimated fair values. Goodwill represents the excess of acquisition cost over the fair value of tangible and identified intangible net assets of businesses acquired. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired company are reflected in the Company's consolidated financial statements after the closing date of the merger or acquisition. |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets Goodwill is not amortized, but is evaluated for impairment on an annual basis and when impairment indicators are present. The Company has assessed that it has one operating segment and one reporting unit, and the consolidated net assets, including existing goodwill and other intangible assets, are considered to be the carrying value of the reporting unit. The Company estimates the fair value of the reporting unit based on the Company's closing stock price on the trading day closest to the annual review date multiplied by the outstanding shares on that date. If the carrying value of the reporting unit is in excess of its fair value, an impairment may exist, and the Company must perform the second step of the analysis, in which the implied fair value of the goodwill is compared to its carrying value to determine the impairment charge, if any. If the estimated fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and no further analysis is required. There was no impairment of goodwill identified in the fiscal years ended June 30, 2015, 2014 and 2013. Purchased intangible assets other than goodwill, including developed technology and distributor license, are amortized on a straight-line basis over their estimated useful lives unless their lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets which range from approximately one to six years. Acquisition-related expenses and restructuring costs are recognized separately from the business combination and are expensed as incurred. |
Shipping and Handling | Shipping and Handling The Company's billings for shipping and handling for product shipments to customers are included in cost of products. Shipping and handling costs incurred for inventory purchases are capitalized in inventory and expensed in cost of products. |
Advertising Expenses | Advertising Expenses The Company expenses the costs of advertising and promoting its products and services as incurred. Advertising expenses were approximately $0.5 million, $0.6 million and $0.7 million for the years ended June 30, 2015, 2014 and 2013, respectively. |
Research and Development Costs | Research and Development Costs Costs related to research, design and development of products are charged to research and development expense as incurred. These costs include direct salaries, benefits, and other headcount related costs for research and development personnel; costs for materials used in research and development activities; costs for outside services and allocated portions of facilities and other corporate costs. The Company has entered into research and clinical study arrangements with selected hospitals, cancer treatment centers, academic institutions and research institutions worldwide. These agreements support the Company's internal research and development capabilities. |
Share-Based Compensation | Share-Based Compensation The Company issues stock-based compensation awards to employees and directors in the form of stock options, restricted stock units ("RSUs"), performance stock units ("PSUs"), market stock units ("MSUs") and employee stock purchase plan ("ESPP") awards (collectively, "awards"). The Company measures and recognizes compensation expense for all stock-based awards based on the awards' fair value. Share-based compensation for RSUs and PSUs is measured based on the value of the Company's common stock on the grant date. The Company uses the Monte-Carlo simulation model to estimate the fair value of MSUs. Share-based compensation for employee stock options and ESPP awards are measured on the date of grant using a Black-Scholes option pricing model. Awards vest either on a graded schedule or in a lump sum. The Company determines the fair value of each award as a single award and recognizes the expense on a straight-line basis over the service period of the award, which is generally the vesting period. The exercise price of stock options granted is equal to the fair market value of the Company's common stock on the date of grant. Stock options expire ten years from the date of grant. Share-based compensation expense for stock options, RSUs, PSUs and the ESPP is based on awards ultimately expected to vest, and the expense is recorded net of estimated forfeitures. The Company recognizes expense for MSUs net of estimated forfeitures and does not adjust the expense for subsequent changes in the expected outcome of the market-based vesting conditions. |
Loss Contingencies | Loss Contingencies The Company is involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. The Company reviews these provisions quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. |
Net Loss Per Common Share | Net Loss Per Common Share Basic and diluted net loss per share is computed by dividing net loss attributable to stockholders by the weighted average number of common shares outstanding during the year. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to stockholders follows (in thousands): Years ended June 30, 2015 2014 2013 Numerator: Loss from operations used in computing loss per share from continuing operations $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations used in computing loss per share from discontinued operations — — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss used in computing net loss per share $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Weighted average shares used in computing basic and diluted net loss per share The potentially dilutive shares of the Company's common stock resulting from the assumed exercise of outstanding stock options, the vesting of RSUs, MSUs and PSUs, and the purchase of shares under the ESPP, as determined under the treasury stock method, are excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. The 3.75% Convertible Senior Notes due August 1, 2016 (the "3.75% Convertible Notes"), the 3.50% Convertible Senior Notes due February 1, 2018 (the "3.50% Convertible Notes") and the 3.50% Series A Convertible Notes (the "3.50% Series A Convertible Notes") due February 1, 2018 are included in the calculation of diluted net income per share only if their inclusion is dilutive. For the years ended June 30, 2015, 2014 and 2013, the potentially dilutive shares under the Convertible Notes were excluded from the calculation of diluted net loss per share as their inclusion would have been anti-dilutive. The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands): As of June 30, 2015 2014 2013 Stock options RSUs, PSUs and MSUs 3.75% Convertible Notes — — — 3.50% Convertible Notes 3.50% Series A Convertible Notes — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding Convertibles Notes—Diluted Share Impact The 3.75% Convertible Notes and 3.50% Series A Convertible Notes have an optional physical (share), cash or combination settlement feature and contain certain conditional conversion features. Due to the optional cash settlement feature and management's intent to settle the principal amount thereof in cash, the conversion shares underlying the outstanding principal amount of the 3.75% Convertible Notes and 3.50% Series A Convertible Notes, totaling approximately 10.6 million shares and 13.2 million shares, respectively, were not included in the potentially diluted share count table above. The Company's average stock price did not exceed the conversion price of the 3.75% Convertible Notes as of June 30, 2015, 2014 and 2013. The 2.9 million potentially dilutive shares of the 3.50% Series A Convertible Notes included in the table above represent the premium over the principal amount due to the higher average share price. The number of premium shares included in the Company's diluted share count will vary with fluctuations in the Company's share price. Higher actual share prices result in a greater number of premium shares. |
Income Taxes | Income Taxes The Company is required to estimate its income taxes in each of the tax jurisdictions in which it operates prior to the completion and filing of tax returns for such periods. This process involves estimating actual current tax expense together with assessing temporary differences in the treatment of items for tax purposes versus financial accounting purposes that may create net deferred tax assets and liabilities. The Company accounts for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax bases of the Company's assets and liabilities and their financial statement reported amounts. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses, research and development credit carryforwards, and other deferred tax assets. The Company records a valuation allowance to reduce its deferred tax assets to the amount the Company believes is more likely than not to be realized. Because of the uncertainty of the realization of the deferred tax assets, the Company has recorded a full valuation allowance against its domestic and certain foreign net deferred tax assets. The calculation of unrecognized tax benefits involves dealing with uncertainties in the application of complex global tax regulations. Management regularly assesses the Company's tax positions in light of legislative, bilateral tax treaty, regulatory and judicial developments in the countries in which the Company does business. The Company anticipates that except for $0.4 million in uncertain tax positions that may be reduced related to the lapse of various statutes of limitation, there will be no material changes in uncertain tax positions in the next 12 months. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of comprehensive loss consist of net loss, unrealized gains and losses on available-for-sale investments, changes in foreign currency exchange rate translation and net changes related to a defined benefit pension plan. The unrealized gains and losses on available-for-sale investments, changes in foreign currency exchange rate translation and net changes related to the defined benefit pension plan are excluded from earnings and reported as a component of stockholders' equity. The foreign currency translation adjustment results from those subsidiaries not using the United States 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 at the current exchange rates at the end of each period. The resulting cumulative translation adjustments are recorded directly to the accumulated other comprehensive loss account in stockholders' equity. Revenues and expenses are translated at average exchange rates in effect during the period. The components of accumulated other comprehensive income in the equity section of the balance sheets are as follows (in thousands): June 30, 2015 June 30, 2014 Net unrealized gain (loss) on short-term investments $ ) $ Cumulative foreign currency translation gain Change in defined benefit pension obligation ) ) ​ ​ ​ ​ ​ ​ ​ ​ Accumulated other comprehensive income (loss) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Segment Information | Segment Information The Company has determined that it operates in only one segment, as it only reports profit and loss information on an aggregate basis to its chief operating decision maker. Revenue by geographic region is based on the shipping addresses of the Company's customers. The following summarizes revenue by geographic region (in thousands): Years ended June 30, 2015 2014 2013 Americas $ $ $ Europe, Middle East, India and Africa Asia (excluding Japan and India) Japan ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands): June 30, 2015 June 30, 2014 Americas $ $ Europe, Middle East, India and Africa Asia (excluding Japan and India) Japan ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company in its first quarter of fiscal 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. On July 9, 2015, the FASB approved a one year deferral of the effective period. The standard will be effective for the Company for fiscal 2019, but entities will be permitted to early adopt the standard as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of pending adoption of ASU 2014-09 on its consolidated financial statements and related disclosures. In July 2013, the Financial Accounting Standards Board ("FASB") issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists . ASU No. 2013-11 requires that entities with an unrecognized tax benefit and a net operating loss carryforward or similar tax loss or tax credit carryforward in the same jurisdiction as the uncertain tax position present the unrecognized tax benefit as a reduction of the deferred tax asset for the loss or tax credit carryforward rather than as a liability, when the uncertain tax position would reduce the loss or tax credit carryforward under the tax law, thereby eliminating diversity in practice regarding this presentation issue. This new guidance is effective prospectively for annual reporting periods beginning on or after December 15, 2013, although retrospective application is permitted. The Company has implemented this guidance with no impact to the consolidated financial statements or related disclosures. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies | |
Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted loss per share | A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to stockholders follows (in thousands): Years ended June 30, 2015 2014 2013 Numerator: Loss from operations used in computing loss per share from continuing operations $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations used in computing loss per share from discontinued operations — — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss used in computing net loss per share $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Weighted average shares used in computing basic and diluted net loss per share |
Schedule of all potentially dilutive securities excluded from the computation of net loss per share | The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands): As of June 30, 2015 2014 2013 Stock options RSUs, PSUs and MSUs 3.75% Convertible Notes — — — 3.50% Convertible Notes 3.50% Series A Convertible Notes — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of accumulated other comprehensive income in the equity section of the balance sheets | The components of accumulated other comprehensive income in the equity section of the balance sheets are as follows (in thousands): June 30, 2015 June 30, 2014 Net unrealized gain (loss) on short-term investments $ ) $ Cumulative foreign currency translation gain Change in defined benefit pension obligation ) ) ​ ​ ​ ​ ​ ​ ​ ​ Accumulated other comprehensive income (loss) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of revenue by geographic region | The following summarizes revenue by geographic region (in thousands): Years ended June 30, 2015 2014 2013 Americas $ $ $ Europe, Middle East, India and Africa Asia (excluding Japan and India) Japan ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of geographic areas in which the Company has long lived tangible assets | Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands): June 30, 2015 June 30, 2014 Americas $ $ Europe, Middle East, India and Africa Asia (excluding Japan and India) Japan ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Balance Sheet Components | |
Summary of cash and cash equivalents | The following is a summary of cash and cash equivalents (in thousands): June 30, 2015 June 30, 2014 Cash $ $ Money market funds ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of accounts receivable, net | Accounts receivable, net consisted of the following (in thousands): June 30, 2015 June 30, 2014 Accounts receivable $ $ Unbilled fees and services ​ ​ ​ ​ ​ ​ ​ ​ Less: Allowance for doubtful accounts ) ) ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of inventories | Inventories consisted of the following (in thousands): June 30, 2015 June 30, 2014 Raw materials $ $ Work-in-process Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of property and equipment, net | Property and equipment consisted of the following (in thousands): June 30, 2015 June 30, 2014 Furniture and fixtures $ $ Computer and office equipment Software Leasehold improvements Machinery and equipment Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depreciation ) ) ​ ​ ​ ​ ​ ​ ​ ​ Property and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Financial Instruments | |
Summary of amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category for cash, cash equivalents and short-term investments | The following tables summarize the amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category for cash, cash equivalents and short-term investments (in thousands): June 30, 2015 Estimated Market Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Cash and Cash Equivalents Short-term Investments Cash $ $ — $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Money market funds — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2 Commercial paper — — — U.S. Agency securities ) — Non-U.S. government securities — ) — Corporate notes — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2014 Estimated Market Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Cash and Cash Equivalents Short-term Investments Cash $ $ — $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Money market funds — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2 Corporate notes ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of contractual maturities of available-for-sale securities | Contractual maturities of available-for-sale securities at June 30, 2015 were as follows (in thousands): June 30, 2015 Amortized Cost Fair Value Due in 1 year or less $ $ Due in 1 - 2 years Due in 2 - 3 years ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of carrying values and estimated fair values of long-term debt that are measured on a non-recurring basis | The following table summarizes the carrying values and estimated fair values of the Company's Convertible Notes (in thousands): June 30, 2015 June 30, 2014 Carrying Value Fair Value Carrying Value Fair Value 3.75% Convertible Notes $ $ $ $ 3.50% Convertible Notes 3.50% Series A Convertible Notes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations | |
Schedule of components of purchase price | The fair value of total purchase consideration paid and payable for 100% of Morphormics' equity interest as of the acquisition date was as follows (in thousands): Cash paid and payable $ Fair value of pre-existing investment in Morphormics ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of identifiable net tangible and intangible assets acquired and liabilities assumed in the acquisition | The total purchase price was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their fair values as of the acquisition date as follows (in thousands): Cash and cash equivalents $ Accounts receivable Other current assets Amortizable intangible assets—developed technology Goodwill Accrued compensation ) ​ ​ ​ ​ ​ Total purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill and Purchased Intang30
Goodwill and Purchased Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Purchased Intangible Assets | |
Schedule of goodwill | Goodwill as of June 30, 2015 and 2014 and changes in the carrying amount of goodwill for the respective periods are as follows (in thousands): June 30, 2015 June 30, 2014 Balance at the beginning of the period $ $ Currency translation and other adjustments ) ) ​ ​ ​ ​ ​ ​ ​ ​ Balance at the end of the period $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of intangible assets associated with completed acquisitions | The Company's intangible assets associated with completed acquisitions are as follows (in thousands): June 30, 2015 June 30, 2014 Useful Lives Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount (in years) Developed technology 5 - 6 $ $ ) $ $ $ ) $ |
Schedule of estimated future amortization expense of purchased intangible assets | The estimated future amortization expense of purchased intangible assets as of June 30, 2015 is as follows (in thousands): Year Ending June 30, Amount 2016 $ 2017 2018 and thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies | |
Schedule of future minimum lease payments under non-cancelable operating lease agreements and long-term principal and interest on Convertible Note | Future minimum lease payments under non-cancelable operating lease agreements and long-term principal and interest on the Convertible Notes as of June 30, 2015 are as follows (in thousands): Year Ending June 30, Operating Leases Long-term Debt(1) 2016 $ $ 2017 2018 2019 — 2020 — Thereafter — ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) These amounts represent principal and interest cash payments over the contractual life of the debt obligations, including anticipated interest payments that are not recorded on the Company's consolidated balance sheet. Any conversion, premium, redemption or purchase of Convertible Notes would impact cash payments noted in the preceding table. |
Stock Incentive Plan and Empl32
Stock Incentive Plan and Employee Stock Purchase Plan (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Stock Incentive Plan and Employee Stock Purchase Plan | |
Summary of share-based compensation charges | The following table summarizes the share-based compensation charges included in the Company's consolidated statements of operations and comprehensive loss (in thousands): Years ended June 30, 2015 2014 2013 Cost of revenue $ $ $ Research and development Selling and marketing General and administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of weighted average assumptions used for determining fair value of stock options | Year Ended June 30, 2013 Risk-free interest rate 0.87% - 1.15% Dividend yield — Expected life 6.25 Expected volatility 52.7% - 63.2% |
Schedule of option activity | A summary of option activity under the Company's Incentive Plan during the fiscal years is presented below (in thousands, except per share and term amounts): Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (in thousands) Balance at June 30, 2012 $ $ Options granted $ Options exercised ) $ Options forfeited/expired ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2013 $ $ Options granted — $ — Options exercised ) $ Options forfeited/expired ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2014 $ $ Options granted — $ — Options exercised ) $ Options forfeited/expired ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested or Expected to vest at June 30, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at June 30, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of information about outstanding and exercisable options | The following table summarizes information about outstanding and exercisable options at June 30, 2015 (in thousands, except years and exercise prices): Options Outstanding Options Exercisable Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $4.00 - 4.01 $4.23 - 5.68 $5.74 - 6.28 $6.32 - 6.58 $6.63 - 6.90 $6.96 $7.06 - 10.36 $13.05 - 22.70 $28.47 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Outstanding $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of activity of RSUs, PSUs and MSUs | Unvested Restricted Stock Restricted Stock Units (000's) Performance Stock Units (000's) Market Stock Units (000's) Total Number of Shares Underlying Stock Awards (000's) Weighted Average Grant Date Fair Value Per Share Unvested at June 30, 2012 — $ Granted Vested ) ) — ) Cancelled/Forfeited ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at June 30, 2013 Granted Vested ) ) — ) Cancelled/Forfeited ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at June 30, 2014 Granted Vested ) ) — ) Cancelled/Forfeited ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at June 30, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of weighted average assumptions used for determining fair value of ESPP shares | Years Ended June 30, 2015 2014 2013 Risk-free interest rate 0.07% - 0.26% 0.06% - 0.13% 0.07% - 0.14% Dividend yield — — — Expected life 0.5 - 1.0 0.5 - 1.0 0.50 Expected volatility 27.1% - 41.3% 27.5% - 46.5% 40.3% - 53.7% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Taxes | |
Schedule of components of loss before provision for income taxes on the accompanying statements of operations and comprehensive loss | Loss before provision for income taxes on the accompanying statements of operations and comprehensive loss included the following components (in thousands): Years Ended June 30, 2015 2014 2013 Domestic $ ) $ ) $ ) Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total worldwide $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of provision for income taxes | The provision for income taxes consisted of the following (in thousands): Years Ended June 30, 2015 2014 2013 Current: Federal $ — $ — $ — State ) Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current Deferred: Federal — — — State — — — Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision for income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes | A reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes included in the accompanying consolidated statements of operations and comprehensive loss is as follows (in thousands): Years Ended June 30, 2015 2014 2013 U.S. federal taxes (benefit): At federal statutory rate $ ) $ ) $ ) State tax, net of federal benefit ) Stock-based compensation expense Change in valuation allowance Credits ) ) ) Other Foreign taxes ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of significant components of deferred tax assets | Significant components of the Company's net deferred tax assets were as follows (in thousands): June 30, 2015 2014 Deferred tax assets: Federal and state net operating losses $ $ Accrued expenses and reserves Deferred revenue Credits Share-based compensation expense Capitalized research and development — Unicap Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Deferred tax liabilities: Debt discount ) ) Fixed assets/intangibles ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of aggregate changes in the balance of gross unrecognized tax benefits | The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in thousands): Years Ended June 30, 2015 2014 2013 Balance at beginning of year $ $ $ Tax positions related to current year: Additions Tax positions related to prior years: Additions — Reductions ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Other Income (Expense), Net | |
Schedule of other income (expense), net | Other income (expense), net consisted of the following (in thousands): Years Ended June 30, 2015 2014 2013 Interest expense on convertible notes $ ) $ ) $ ) Foreign currency transaction loss ) ) ) Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other expense, net $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Debt | |
Schedule of carrying value of Convertible Notes | The following table presents the carrying values of all Convertible Notes as of June 30, 2015 (in thousands): 3.75% Notes 3.50% Notes 3.50% Series A Notes TOTAL Carrying amount of the equity conversion component $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Principal amount of the Convertible Notes $ $ $ $ Unamortized debt discount ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net carrying amount $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of interest expense related to the Convertible Notes | A summary of interest expense on all Convertible Notes is as follows (in thousands): Year ended June 30, 2015 2014 2013 Interest expense related to contractual interest coupon $ $ $ Interest expense related to amortization of debt discount Interest expense related to amortization of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Quarterly Financial Data (una36
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Data (unaudited) | |
Schedule of quarterly financial data (unaudited) | The following table provides the selected quarterly financial data for fiscal 2015 and 2014 (in thousands, except per share amounts): Quarters ended September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 Net revenue $ $ $ $ Gross profit $ $ $ $ Net loss $ ) $ ) $ ) $ ) Net loss per share—basic and diluted $ ) $ ) $ ) $ ) Shares used in basic and diluted per share calculation Quarters ended September 30, 2013 December 31, 2013 March 31, 2014 June 30, 2014 Net revenue $ $ $ $ Gross profit $ $ $ $ Net loss $ ) $ ) $ ) $ ) Net loss per share—basic and diluted $ ) $ ) $ ) $ ) Shares used in basic and diluted per share calculation |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||
Dec. 31, 2015 | Jun. 30, 2015customeritem | Dec. 31, 2014 | Jun. 30, 2014customeritem | Dec. 31, 2013 | Jun. 30, 2013item | |
Cash, cash equivalent and investments | Investment concentration risk | ||||||
Concentration of Credit Risk and Other Risks and Uncertainties | ||||||
Number of obligors or makers | 1 | |||||
Cash, cash equivalent and investments | Investment concentration risk | Maximum | ||||||
Concentration of Credit Risk and Other Risks and Uncertainties | ||||||
Percentage of concentration risk | 5.00% | |||||
Total accounts receivable | Credit concentration risk | Major customers | ||||||
Concentration of Credit Risk and Other Risks and Uncertainties | ||||||
Percentage of concentration risk | 18.00% | 13.00% | ||||
Number of significant customers | customer | 1 | 1 | ||||
Total net revenue | Customer concentration risk | ||||||
Concentration of Credit Risk and Other Risks and Uncertainties | ||||||
Number of significant customers | 0 | 0 | 0 | |||
Total net revenue | Customer concentration risk | Minimum | ||||||
Concentration of Credit Risk and Other Risks and Uncertainties | ||||||
Percentage of concentration risk | 10.00% | 10.00% | 10.00% |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Jun. 30, 2015 | |
Deferred Revenue and Deferred Cost of Revenue | |
Period over which deferred service revenue resulting from advance payment for services are to be delivered | 1 year |
Maximum expected period to classify deferred revenue as current liabilities and deferred costs of revenue as current assets | 1 year |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details 3) | 12 Months Ended |
Jun. 30, 2015 | |
Machinery and equipment | |
Property and Equipment | |
Period over which property and equipment are depreciated | 5 years |
Furniture and fixtures | |
Property and Equipment | |
Period over which property and equipment are depreciated | 4 years |
Computer and office equipment | |
Property and Equipment | |
Period over which property and equipment are depreciated | 3 years |
Computer software | |
Property and Equipment | |
Period over which property and equipment are depreciated | 3 years |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details 4) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Advertising Expenses | |||
Advertising expenses | $ | $ 0.5 | $ 0.6 | $ 0.7 |
Number of operating segments | 1 | ||
Number of reporting units | 1 | ||
Impairment of goodwill | $ | $ 0 | $ 0 | $ 0 |
Minimum | |||
Advertising Expenses | |||
Estimated useful lives of respective assets | 1 year | ||
Maximum | |||
Advertising Expenses | |||
Estimated useful lives of respective assets | 6 years |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details 5) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 30, 2014 | Apr. 17, 2014 | Feb. 28, 2013 | Aug. 02, 2011 | |
Anti-dilutive securities excluded from computation of earnings per share | |||||||||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 18,294 | 20,519 | 29,807 | ||||||||||||
Income Taxes | |||||||||||||||
Reduction in uncertain tax position due to lapse of various statutes of limitation | $ 400 | ||||||||||||||
Subsequent period within which no material changes in unrecognized tax benefits are expected | 12 months | ||||||||||||||
Numerator: | |||||||||||||||
Loss from operations used in computing loss per share from continuing operations | $ (40,209) | $ (35,448) | $ (97,361) | ||||||||||||
Loss from discontinued operations used in computing loss per share from discontinued operations | (5,858) | ||||||||||||||
Net loss attributable to stockholders | $ (40,209) | $ (35,448) | $ (103,219) | ||||||||||||
Denominator: | |||||||||||||||
Weighted average shares used in computing basic and diluted loss per share | 79,170 | 78,746 | 77,924 | 77,290 | 76,879 | 76,382 | 75,280 | 74,700 | 78,277 | 75,804 | 73,281 | ||||
3.75% Convertible Notes | |||||||||||||||
Anti-dilutive securities excluded from computation of earnings per share | |||||||||||||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | ||||||||||||
Conversion shares outstanding principal amount excluded in the potentially diluted share | 10,600 | ||||||||||||||
3.50% Convertible Notes | |||||||||||||||
Anti-dilutive securities excluded from computation of earnings per share | |||||||||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 8,378 | 8,378 | 21,576 | ||||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||
3.50% Series A Convertible Notes | |||||||||||||||
Anti-dilutive securities excluded from computation of earnings per share | |||||||||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 2,896 | 4,985 | |||||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||
Conversion shares outstanding principal amount excluded in the potentially diluted share | 13,200 | ||||||||||||||
Stock options | |||||||||||||||
Anti-dilutive securities excluded from computation of earnings per share | |||||||||||||||
Expiration period | 10 years | ||||||||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 2,537 | 3,209 | 4,844 | ||||||||||||
RSUs, PSUs and MSUs | |||||||||||||||
Anti-dilutive securities excluded from computation of earnings per share | |||||||||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 4,483 | 3,947 | 3,387 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details 6) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Accumulated Other Comprehensive Income | ||
Net unrealized gain (loss) on short-term investments | $ (77) | $ 18 |
Cumulative foreign currency translation gain | 1,168 | 2,364 |
Change in defined benefit pension obligation | (1,517) | (567) |
Accumulated other comprehensive income | $ (426) | $ 1,815 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details 7) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Segment Information | |||||||||||
Revenue | $ 101,750 | $ 97,515 | $ 98,155 | $ 82,381 | $ 102,000 | $ 97,144 | $ 93,634 | $ 76,641 | $ 379,801 | $ 369,419 | $ 315,974 |
Long lived assets | 31,829 | 34,391 | $ 31,829 | 34,391 | |||||||
Number of operating segments | item | 1 | ||||||||||
Americas | |||||||||||
Segment Information | |||||||||||
Revenue | $ 174,000 | 156,242 | 143,613 | ||||||||
Long lived assets | 28,182 | 30,542 | 28,182 | 30,542 | |||||||
Europe, Middle East, India and Africa | |||||||||||
Segment Information | |||||||||||
Revenue | 110,534 | 115,396 | 101,172 | ||||||||
Long lived assets | 929 | 1,665 | 929 | 1,665 | |||||||
Asia (excluding Japan and India) | |||||||||||
Segment Information | |||||||||||
Revenue | 57,618 | 44,533 | 37,829 | ||||||||
Long lived assets | 455 | 444 | 455 | 444 | |||||||
Japan | |||||||||||
Segment Information | |||||||||||
Revenue | 37,649 | 53,248 | $ 33,360 | ||||||||
Long lived assets | $ 2,263 | $ 1,740 | $ 2,263 | $ 1,740 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Property, Plant and Equipment [Abstract] | ||||
Property and equipment, gross | $ 102,206 | $ 97,225 | ||
Less: Accumulated depreciation and amortization | (70,377) | (62,834) | ||
Property and equipment, net | 31,829 | 34,391 | ||
Depreciation and amortization expense | 11,600 | 12,200 | $ 15,200 | |
Cash and Cash Equivalents | ||||
Cash | 73,444 | 91,797 | ||
Money market funds | 6,107 | 549 | ||
Cash and cash equivalents | 79,551 | 92,346 | $ 73,313 | $ 143,504 |
Accounts receivable, net | ||||
Accounts receivable | 75,631 | 72,969 | ||
Unbilled fees and services | 2,805 | 159 | ||
Accounts and other receivable, gross | 78,436 | 73,128 | ||
Less: Allowance for doubtful accounts | (709) | (976) | ||
Accounts receivable, net | 77,727 | 72,152 | ||
Deduction for allowance for doubtful accounts | 400 | 2,000 | ||
Addition for allowance for doubtful accounts | 400 | 1,300 | ||
Write-offs of allowance for doubtful accounts | 200 | 500 | ||
Financing receivables | ||||
Accounts receivable with contractual maturities of more than one year | 1,600 | 2,800 | ||
Allowance for doubtful financing receivable accounts related to financing receivables | 0 | 0 | ||
Inventories | ||||
Raw materials | 46,356 | 37,003 | ||
Work-in-process | 15,445 | 17,692 | ||
Finished goods | 44,350 | 33,057 | ||
Total inventories | 106,151 | 87,752 | ||
Furniture and fixtures | ||||
Property, Plant and Equipment [Abstract] | ||||
Property and equipment, gross | 4,674 | 5,351 | ||
Computer and office equipment | ||||
Property, Plant and Equipment [Abstract] | ||||
Property and equipment, gross | 11,808 | 10,540 | ||
Computer software | ||||
Property, Plant and Equipment [Abstract] | ||||
Property and equipment, gross | 10,992 | 10,736 | ||
Leasehold improvements | ||||
Property, Plant and Equipment [Abstract] | ||||
Property and equipment, gross | 19,428 | 18,991 | ||
Machinery and equipment | ||||
Property, Plant and Equipment [Abstract] | ||||
Property and equipment, gross | 47,031 | 45,730 | ||
Construction in progress | ||||
Property, Plant and Equipment [Abstract] | ||||
Property and equipment, gross | $ 8,273 | $ 5,877 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Cash, cash equivalents and short-term investments | ||||
Cash | $ 73,444 | $ 91,797 | ||
Cash Equivalents | 73,444 | |||
Amortized Cost | 64,383 | |||
Gross Unrealized Gains | 6 | 72 | ||
Gross Unrealized Losses | (83) | (54) | ||
Available-for-sale Securities | 64,306 | |||
Total Amortized Cost | 143,934 | 171,881 | ||
Cash and Cash Equivalents | 79,551 | 92,346 | $ 73,313 | $ 143,504 |
Short-term investments | 64,306 | 79,553 | ||
Other-than-temporary impairments associated with credit losses | 0 | |||
Amortized Cost | ||||
Due in 1 year or less | 44,965 | |||
Due in 1-2 years | 13,110 | |||
Due in 2-3 years | 6,308 | |||
Amortized cost | 64,383 | |||
Fair Value | ||||
Due in 1 year or less | 44,923 | |||
Due in 1-2 years | 13,094 | |||
Due in 2-3 years | 6,289 | |||
Available-for-sale Securities | 64,306 | |||
Level 1 | ||||
Cash, cash equivalents and short-term investments | ||||
Cash Equivalents | 6,107 | |||
Amortized Cost | 6,107 | |||
Amortized Cost | ||||
Amortized cost | 6,107 | |||
Level 1 | Money market funds | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 6,107 | 549 | ||
Cash and Cash Equivalents | 6,107 | 549 | ||
Amortized Cost | ||||
Amortized cost | 6,107 | 549 | ||
Level 2 | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 64,383 | |||
Gross Unrealized Gains | 6 | |||
Gross Unrealized Losses | (83) | |||
Short-term investments | 64,306 | |||
Amortized Cost | ||||
Amortized cost | 64,383 | |||
Level 2 | Commercial paper | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 11,989 | |||
Short-term investments | 11,989 | |||
Amortized Cost | ||||
Amortized cost | 11,989 | |||
Level 2 | US Agency securities | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 21,999 | |||
Gross Unrealized Gains | 6 | |||
Gross Unrealized Losses | (14) | |||
Short-term investments | 21,991 | |||
Amortized Cost | ||||
Amortized cost | 21,999 | |||
Level 2 | Non-U.S. government securities | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 1,504 | |||
Gross Unrealized Losses | (3) | |||
Short-term investments | 1,501 | |||
Amortized Cost | ||||
Amortized cost | 1,504 | |||
Level 2 | Corporate notes | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 28,891 | 79,535 | ||
Gross Unrealized Gains | 72 | |||
Gross Unrealized Losses | (66) | (54) | ||
Short-term investments | 28,825 | 79,553 | ||
Amortized Cost | ||||
Amortized cost | $ 28,891 | $ 79,535 |
Financial Instruments (Details
Financial Instruments (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Apr. 30, 2014 | Apr. 17, 2014 | Jun. 30, 2013 | Feb. 28, 2013 | Aug. 02, 2011 |
3.75% Convertible Notes | |||||||
Fair value measurement | |||||||
Interest rate (as a percent) | 3.75% | 3.75% | |||||
3.50% Convertible Notes | |||||||
Fair value measurement | |||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||
3.50% Series A Convertible Notes | |||||||
Fair value measurement | |||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | ||||
Non-recurring basis | Carrying Value | |||||||
Fair value measurement | |||||||
Long term debt | $ 202,853 | $ 195,612 | |||||
Non-recurring basis | Carrying Value | 3.75% Convertible Notes | |||||||
Fair value measurement | |||||||
Long term debt | 93,739 | 88,511 | |||||
Non-recurring basis | Carrying Value | 3.50% Convertible Notes | |||||||
Fair value measurement | |||||||
Long term debt | 44,654 | 44,654 | |||||
Non-recurring basis | Carrying Value | 3.50% Series A Convertible Notes | |||||||
Fair value measurement | |||||||
Long term debt | 64,460 | 62,447 | |||||
Non-recurring basis | Fair Value | |||||||
Fair value measurement | |||||||
Long term debt | 270,635 | 319,868 | |||||
Non-recurring basis | Fair Value | 3.75% Convertible Notes | |||||||
Fair value measurement | |||||||
Long term debt | 102,645 | 115,415 | |||||
Non-recurring basis | Fair Value | 3.50% Convertible Notes | |||||||
Fair value measurement | |||||||
Long term debt | 65,230 | 79,388 | |||||
Non-recurring basis | Fair Value | 3.50% Series A Convertible Notes | |||||||
Fair value measurement | |||||||
Long term debt | $ 102,760 | $ 125,065 |
Business Combinations (Detail)
Business Combinations (Detail) - USD ($) | Jul. 16, 2012 | Jul. 15, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Purchase price allocation | ||||||
Goodwill | $ 58,054,000 | $ 58,091,000 | $ 58,091,000 | $ 59,368,000 | ||
Morphormics, Inc. | ||||||
Acquisition | ||||||
Acquisition of remaining outstanding shares (as a percent) | 90.00% | |||||
Outstanding shares held prior to acquisition (as a percent) | 10.00% | |||||
Fair value of outstanding shares prior to acquisition | $ 662,000 | |||||
Carrying value prior to acquisition date | $ 0 | |||||
Total acquired equity interest (as a percent) | 100.00% | |||||
Fair value of total purchase consideration paid and payable | ||||||
Cash paid and payable | $ 5,385,000 | |||||
Fair value of pre-existing investment in Morphormics | 662,000 | |||||
Total purchase price | 6,047,000 | |||||
Purchase price allocation | ||||||
Cash and cash equivalents | 668,000 | |||||
Accounts receivable | 283,000 | |||||
Other current assets | 7,000 | |||||
Amortizable intangible assets - developed technology | 5,100,000 | |||||
Goodwill | 77,000 | |||||
Accrued compensation | (88,000) | |||||
Total purchase price | $ 6,047,000 |
Goodwill and Purchased Intang48
Goodwill and Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | |
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | $ 58,091 | $ 58,091 | $ 59,368 | |
Currency translation and other adjustment | (37) | (1,277) | ||
Balance at the end of the period | 58,054 | 58,091 | 58,091 | |
Impairment of goodwill | 0 | 0 | 0 | |
Net Amount, Finite Lived Intangibles | 15,564 | |||
Impairment charge recorded due to a decrease in projected future usage of the technology | 12,200 | |||
Amortization expense | 7,900 | 8,400 | 10,400 | |
Estimated future amortization expense of purchased intangible assets | ||||
2,015 | 7,953 | |||
2,016 | 7,568 | |||
2,017 | 43 | |||
Net Amount, Finite Lived Intangibles | $ 15,564 | |||
Minimum | ||||
Changes in the carrying amount of goodwill | ||||
Useful Lives | 1 year | |||
Maximum | ||||
Changes in the carrying amount of goodwill | ||||
Useful Lives | 6 years | |||
TomoTherapy | Liabilities related to unrecognized tax | ||||
Changes in the carrying amount of goodwill | ||||
Accrued liabilities | $ 1,300 | |||
IPR&D technology carried out by CPAC | ||||
Changes in the carrying amount of goodwill | ||||
Impairment charge recorded due to a decrease in projected future usage of the technology | $ 12,200 | |||
Developed technology | ||||
Changes in the carrying amount of goodwill | ||||
Total gross carrying amount | $ 46,700 | 46,747 | ||
Accumulated Amortization | (31,136) | (23,230) | ||
Net Amount, Finite Lived Intangibles | 15,564 | 23,517 | ||
Estimated future amortization expense of purchased intangible assets | ||||
Net Amount, Finite Lived Intangibles | $ 15,564 | $ 23,517 | ||
Developed technology | Minimum | ||||
Changes in the carrying amount of goodwill | ||||
Useful Lives | 5 years | |||
Developed technology | Maximum | ||||
Changes in the carrying amount of goodwill | ||||
Useful Lives | 6 years |
Investment in CPAC (Details)
Investment in CPAC (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2013 | |
Investment in CPAC | |||
Loss on deconsolidation of a consolidated variable interest entity | $ 3,442 | ||
CPAC | |||
Investment in CPAC | |||
Ownership interest (as a percent) | 15.40% | ||
Ownership interest on fully diluted basis (as a percent) | 16.30% | ||
Loss on deconsolidation of a consolidated variable interest entity | $ 3,400 |
Commitments and Contingencies50
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Future minimum lease payments under non-cancelable operating lease agreements | |||
2,015 | $ 8,287 | ||
2,016 | 8,271 | ||
2,017 | 7,757 | ||
2,018 | 4,646 | ||
2,019 | 4,056 | ||
Thereafter | 13,827 | ||
Total | 46,844 | ||
Long-term principal and interest on Convertible Note | |||
Liability recorded associated with indemnification agreements | 0 | ||
Operating Lease Agreements and Long-term Debt | |||
Rent expense | 8,000 | $ 6,500 | $ 8,700 |
License agreement | WARF (Wisconsin Alumni Research Foundation) | |||
License and Royalty Agreements | |||
Royalty costs | 600 | 700 | $ 600 |
Royalty amount accrued | 200 | $ 100 | |
License agreement | WARF (Wisconsin Alumni Research Foundation) | Minimum | |||
License and Royalty Agreements | |||
Annual commitment amount | 300 | ||
3.75% Convertible Note and 3.50% Convertible Note | |||
Long-term principal and interest on Convertible Note | |||
2,015 | 7,775 | ||
2,016 | 104,338 | ||
2,017 | 117,348 | ||
Total | $ 229,461 |
Commitments and Contingencies51
Commitments and Contingencies (Details 2) - USD ($) | Feb. 27, 2014 | May. 21, 2012 | Apr. 30, 2011 |
Rotary Systems | |||
Contingencies | |||
Period to identify alleged trade secrets with specificity or face dismissal of claim with prejudice | 60 days | ||
Rotary Systems | Minimum | |||
Contingencies | |||
Claim for damages | $ 50,000 | ||
Cowealth Medical | |||
Contingencies | |||
Claim for damages | $ 170,000,000 | ||
Damages Counterclaim | $ 35,000,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares shares in Millions | Jun. 30, 2015 | Apr. 30, 2014 | Apr. 17, 2014 | Jun. 30, 2013 | Feb. 28, 2013 | Aug. 02, 2011 |
Stockholders' equity | ||||||
Number of shares of common stock reserved for issuance under stock incentive plans and employee stock purchase plan | 12.2 | |||||
3.75% Convertible Notes | ||||||
Stockholders' equity | ||||||
Authorized common stock reserved for future issuance (in shares) | 13.2 | |||||
Interest rate (as a percent) | 3.75% | 3.75% | ||||
3.50% Convertible Notes | ||||||
Stockholders' equity | ||||||
Authorized common stock reserved for future issuance (in shares) | 21.6 | |||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% |
Stock Incentive Plan and Empl53
Stock Incentive Plan and Employee Stock Purchase Plan (Details) - Jun. 30, 2015 - item | Total |
Stock Incentive Plan | |
Number of stock incentive plans | 2 |
Stock options | |
Stock Incentive Plan | |
Remaining vesting term | 10 years |
2007 Plan | Incentive stock option | Minimum | |
Stock Incentive Plan | |
Exercise price of stock options as a percentage of fair market value on the grant date | 100.00% |
2007 Plan | Non-qualified stock option | Minimum | |
Stock Incentive Plan | |
Exercise price of stock options as a percentage of fair market value on the grant date | 85.00% |
2007 Plan | Stock options | |
Stock Incentive Plan | |
Exercise price of stock options as a percentage of fair market value on the grant date | 25.00% |
Vesting period for first 25% vesting rights | 1 year |
Remainder vesting period | 36 months |
2007 Plan | RSUs | |
Stock Incentive Plan | |
Percentage of the award vesting at first anniversary | 50.00% |
Percentage of the award vesting at second anniversary | 50.00% |
2007 Plan | Time-based RSUs | |
Stock Incentive Plan | |
Annual vesting percentage | 25.00% |
Stock Incentive Plan and Empl54
Stock Incentive Plan and Employee Stock Purchase Plan (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based compensation charges | |||
Share-based compensation expense | $ 13,930 | $ 11,313 | $ 8,216 |
Capitalized share-based compensation costs | 500 | 600 | |
Cost of revenue | |||
Share-based compensation charges | |||
Share-based compensation expense | 1,874 | 1,912 | 1,498 |
Research and development | |||
Share-based compensation charges | |||
Share-based compensation expense | 2,971 | 2,585 | 1,949 |
Selling and marketing | |||
Share-based compensation charges | |||
Share-based compensation expense | 2,945 | 2,059 | 1,121 |
General and administrative | |||
Share-based compensation charges | |||
Share-based compensation expense | $ 6,140 | $ 4,757 | $ 3,648 |
Stock Incentive Plan and Empl55
Stock Incentive Plan and Employee Stock Purchase Plan (Details 3) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Weighted average assumptions used for determining fair value of options | ||||
Expected life | 6 years 3 months | |||
Additional disclosures | ||||
Share-based compensation expense | $ 13,930 | $ 11,313 | $ 8,216 | |
Stock options | Maximum | ||||
Weighted average assumptions used for determining fair value of options | ||||
Risk-free interest rate (as a percent) | 1.15% | |||
Expected volatility (as a percent) | 63.20% | |||
Stock options | Minimum | ||||
Weighted average assumptions used for determining fair value of options | ||||
Risk-free interest rate (as a percent) | 0.87% | |||
Expected volatility (as a percent) | 52.70% | |||
2007 Plan | ||||
Additional disclosures | ||||
Fair value of common stock (in dollars per share) | $ 6.74 | |||
2007 Plan | Stock options | ||||
Options Outstanding | ||||
Balance at the beginning of the year (in shares) | 3,209 | 4,844 | 7,873 | |
Options granted (in shares) | 1,250 | |||
Options exercised (in shares) | (529) | (1,062) | (1,515) | |
Options forfeited/expired (in shares) | (143) | (573) | (2,764) | |
Balance at the end of the year (in shares) | 2,537 | 3,209 | 4,844 | 7,873 |
Vested or Expected to vest at the end of the year (in shares) | 2,537 | |||
Exercisable at the end of the year (in shares) | 2,208 | |||
Weighted Average Exercise Price | ||||
Balance at the beginning of the year (in dollars per share) | $ 7.44 | $ 7.15 | $ 7 | |
Options granted (in dollars per share) | 6.54 | |||
Options exercised (in dollars per share) | 4.84 | 5.01 | 2.77 | |
Options forfeited/expired (in dollars per share) | 8.72 | 9.49 | 8.86 | |
Balance at the end of the year (in dollars per share) | 7.91 | $ 7.44 | $ 7.15 | $ 7 |
Vested or Expected to vest at the end of the year (in dollars per share) | 7.91 | |||
Exercisable at the end of the year (in dollars per share) | $ 8.18 | |||
Weighted Average Remaining Contractual Life (In Years) | ||||
Balance at the end of the year | 5 years 1 month 6 days | 5 years 4 months 17 days | 6 years 2 months 1 day | 5 years 6 months 26 days |
Vested or Expected to vest at the end of the year | 5 years 1 month 6 days | |||
Exercisable at the end of the year | 4 years 9 months 11 days | |||
Aggregate Intrinsic Value (in thousand) | ||||
Balance at the end of the year | $ 1,862 | $ 8,251 | $ 2,771 | $ 12,359 |
Vested or Expected to vest at the end of the year | 1,862 | |||
Exercisable at the end of the year | 1,634 | |||
Additional disclosures | ||||
Total intrinsic value of options exercised | 1,400 | 3,800 | 4,500 | |
Share-based compensation expense | 1,100 | 1,700 | 2,900 | |
Realized excess tax benefits related to stock options exercises | 0 | $ 0 | $ 0 | |
Unrecognized compensation cost related to unvested stock options, net of estimated forfeitures | $ 1,000 | |||
Weighted average period for recognition of compensation costs | 1 year 3 months 4 days |
Stock Incentive Plan and Empl56
Stock Incentive Plan and Employee Stock Purchase Plan (Details 4) - Jun. 30, 2015 - 2007 Plan - Stock options - $ / shares shares in Thousands | Total |
Options Outstanding | |
Number of Shares Outstanding | 2,537 |
Weighted-Average Remaining Contractual Life | 5 years 1 month 6 days |
Weighted-Average Exercise Price (in dollars per share) | $ 7.91 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 2,208 |
Weighted-Average Exercise Price (in dollars per share) | $ 8.18 |
$4.00 - 4.01 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 4 |
Exercise price, high end of range (in dollars per share) | $ 4.01 |
Options Outstanding | |
Number of Shares Outstanding | 340 |
Weighted-Average Remaining Contractual Life | 6 years 3 months 22 days |
Weighted-Average Exercise Price (in dollars per share) | $ 4.01 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 306 |
Weighted-Average Exercise Price (in dollars per share) | $ 4.01 |
$4.23 - 5.68 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 4.23 |
Exercise price, high end of range (in dollars per share) | $ 5.68 |
Options Outstanding | |
Number of Shares Outstanding | 395 |
Weighted-Average Remaining Contractual Life | 4 years 8 months 9 days |
Weighted-Average Exercise Price (in dollars per share) | $ 5.28 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 355 |
Weighted-Average Exercise Price (in dollars per share) | $ 5.35 |
$5.74 - 6.28 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 5.74 |
Exercise price, high end of range (in dollars per share) | $ 6.28 |
Options Outstanding | |
Number of Shares Outstanding | 455 |
Weighted-Average Remaining Contractual Life | 6 years 5 months 9 days |
Weighted-Average Exercise Price (in dollars per share) | $ 6.14 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 350 |
Weighted-Average Exercise Price (in dollars per share) | $ 6.11 |
$6.32- 6.58 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 6.32 |
Exercise price, high end of range (in dollars per share) | $ 6.58 |
Options Outstanding | |
Number of Shares Outstanding | 292 |
Weighted-Average Remaining Contractual Life | 4 years 6 months 29 days |
Weighted-Average Exercise Price (in dollars per share) | $ 6.47 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 278 |
Weighted-Average Exercise Price (in dollars per share) | $ 6.48 |
$6.63- 6.90 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 6.63 |
Exercise price, high end of range (in dollars per share) | $ 6.90 |
Options Outstanding | |
Number of Shares Outstanding | 105 |
Weighted-Average Remaining Contractual Life | 4 years 5 months 5 days |
Weighted-Average Exercise Price (in dollars per share) | $ 6.70 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 104 |
Weighted-Average Exercise Price (in dollars per share) | $ 6.67 |
$ 6.96 | |
Options Outstanding | |
Number of Shares Outstanding | 364 |
Weighted-Average Remaining Contractual Life | 7 years 2 months 16 days |
Weighted-Average Exercise Price (in dollars per share) | $ 6.96 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 239 |
Weighted-Average Exercise Price (in dollars per share) | $ 6.96 |
$7.06- 10.36 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 7.06 |
Exercise price, high end of range (in dollars per share) | $ 10.36 |
Options Outstanding | |
Number of Shares Outstanding | 296 |
Weighted-Average Remaining Contractual Life | 3 years 5 months 16 days |
Weighted-Average Exercise Price (in dollars per share) | $ 8.86 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 286 |
Weighted-Average Exercise Price (in dollars per share) | $ 8.92 |
$13.05 - 22.70 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 13.05 |
Exercise price, high end of range (in dollars per share) | $ 22.70 |
Options Outstanding | |
Number of Shares Outstanding | 175 |
Weighted-Average Remaining Contractual Life | 2 years 2 months 5 days |
Weighted-Average Exercise Price (in dollars per share) | $ 16.07 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 175 |
Weighted-Average Exercise Price (in dollars per share) | $ 16.07 |
$ 28.47 | |
Options Outstanding | |
Number of Shares Outstanding | 115 |
Weighted-Average Remaining Contractual Life | 1 year 7 months 10 days |
Weighted-Average Exercise Price (in dollars per share) | $ 28.47 |
Options Exercisable | |
Number of Shares Exercisable (in shares) | 115 |
Weighted-Average Exercise Price (in dollars per share) | $ 28.47 |
Stock Incentive Plan and Empl57
Stock Incentive Plan and Employee Stock Purchase Plan (Details 5) $ / shares in Units, $ in Thousands | Aug. 17, 2015shares | Oct. 31, 2012item | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2013USD ($)$ / sharesshares | Jun. 30, 2012$ / sharesshares |
Additional disclosures | ||||||
Share-based compensation expense | $ | $ 13,930 | $ 11,313 | $ 8,216 | |||
Performance Stock Units | ||||||
Total Number of Shares Underlying | ||||||
Balance at the beginning of the year (in shares) | 888,000 | |||||
Granted (in shares) | 20,000 | 70,000 | 36,000 | 1,000,000 | ||
Vested (in shares) | (25,000) | (25,000) | (18,000) | |||
Cancelled/Forfeited (in shares) | (38,000) | 0 | ||||
Unvested at the end of the year (in shares) | 888,000 | |||||
Additional disclosures | ||||||
Share-based compensation expense | $ | $ 200 | $ 100 | ||||
Market Stock Units | ||||||
Total Number of Shares Underlying | ||||||
Balance at the beginning of the year (in shares) | 407,000 | |||||
Granted (in shares) | 426,000 | |||||
Cancelled/Forfeited (in shares) | (200,000) | (19,000) | ||||
Unvested at the end of the year (in shares) | 407,000 | |||||
2007 Plan | Restricted Stock Units, Performance Stock Units and Market Stock Units | ||||||
Total Number of Shares Underlying | ||||||
Balance at the beginning of the year (in shares) | 3,947,000 | 3,387,000 | 2,098,000 | |||
Granted (in shares) | 2,212,000 | 2,930,000 | 2,662,000 | |||
Vested (in shares) | (1,175,000) | (913,000) | (544,000) | |||
Cancelled/Forfeited (in shares) | (501,000) | (1,457,000) | (829,000) | |||
Unvested at the end of the year (in shares) | 4,483,000 | 3,947,000 | 3,387,000 | 2,098,000 | ||
Weighted Average Grant Date Fair Value Per Share | ||||||
Unvested at the beginning of the year (in shares) | $ / shares | $ 6.24 | $ 5.66 | $ 5.16 | |||
Granted (in dollars per share) | $ / shares | 6.77 | 7.28 | 5.52 | |||
Vested (in dollars per share) | $ / shares | 6.73 | 8.70 | 5.18 | |||
Cancelled/Forfeited (in dollars per share) | $ / shares | 6.20 | 5.44 | 5.18 | |||
Unvested at the end of the year (in shares) | $ / shares | $ 6.86 | 6.24 | 5.66 | $ 5.16 | ||
Additional disclosures | ||||||
Unrecognized compensation cost | $ | $ 17,700 | |||||
Weighted average period for recognition of compensation costs | 2 years 2 months 16 days | |||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.77 | 7.28 | 5.52 | |||
2007 Plan | RSUs | ||||||
Weighted Average Grant Date Fair Value Per Share | ||||||
Granted (in dollars per share) | $ / shares | $ 6.79 | $ 7.32 | $ 5.89 | |||
Additional disclosures | ||||||
Unrecognized compensation cost | $ | $ 15,500 | |||||
Share-based compensation expense | $ | $ 7,900 | $ 6,400 | $ 3,600 | |||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.79 | $ 7.32 | $ 5.89 | |||
Aggregate fair market value of units vested | $ | $ 8,100 | |||||
2007 Plan | Restricted Stock | ||||||
Total Number of Shares Underlying | ||||||
Balance at the beginning of the year (in shares) | 3,116,000 | 2,424,000 | 1,210,000 | |||
Granted (in shares) | 1,679,000 | 2,125,000 | 2,200,000 | |||
Vested (in shares) | (1,150,000) | (888,000) | (526,000) | |||
Cancelled/Forfeited (in shares) | (320,000) | (545,000) | (460,000) | |||
Unvested at the end of the year (in shares) | 3,325,000 | 3,116,000 | 2,424,000 | 1,210,000 | ||
2007 Plan | Restricted Stock | TomoTherapy | ||||||
Additional disclosures | ||||||
Share-based compensation expense | $ | $ 300 | |||||
2007 Plan | Performance Stock Units | ||||||
Total Number of Shares Underlying | ||||||
Balance at the beginning of the year (in shares) | 25,000 | 556,000 | ||||
Granted (in shares) | 20,000 | 70,000 | 36,000 | |||
Vested (in shares) | (25,000) | (25,000) | ||||
Cancelled/Forfeited (in shares) | (576,000) | (350,000) | ||||
Unvested at the end of the year (in shares) | 20,000 | 25,000 | 556,000 | |||
2007 Plan | Market Stock Units | ||||||
Total Number of Shares Underlying | ||||||
Balance at the beginning of the year (in shares) | 806,000 | |||||
Granted (in shares) | 513,000 | 735,000 | ||||
Cancelled/Forfeited (in shares) | (181,000) | (336,000) | ||||
Unvested at the end of the year (in shares) | 1,138,000 | 806,000 | ||||
2007 Plan | Stock options | ||||||
Additional disclosures | ||||||
Weighted average period for recognition of compensation costs | 1 year 3 months 4 days | |||||
Share-based compensation expense | $ | $ 1,100 | $ 1,700 | $ 2,900 | |||
Weighted average fair value (in dollars per share) | $ / shares | $ 3.48 | |||||
MSU Program | Market Stock Units | ||||||
Total Number of Shares Underlying | ||||||
Cancelled/Forfeited (in shares) | (200,000) | |||||
Weighted Average Grant Date Fair Value Per Share | ||||||
Granted (in dollars per share) | $ / shares | $ 6.64 | $ 7.18 | $ 5.39 | |||
Additional disclosures | ||||||
Unrecognized compensation cost | $ | $ 2,200 | |||||
Share-based compensation expense | $ | $ 3,400 | $ 1,800 | $ 300 | |||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.64 | $ 7.18 | $ 5.39 | |||
Target number of shares that participating executives may earn (as a percent) | 100.00% | |||||
Number of measurement periods | item | 2 | |||||
Vested next twelve months (in shares) | 600,000 | |||||
Vested in year two (in shares) | 500,000 | |||||
MSU Program | Market Stock Units | Maximum | ||||||
Additional disclosures | ||||||
Target number of shares that participating executives may earn (as a percent) | 150.00% | |||||
MSU Program | Subsequent event | Market Stock Units | ||||||
Total Number of Shares Underlying | ||||||
Granted (in shares) | 400,000 | |||||
Additional disclosures | ||||||
Target number of shares that participating executives may earn (as a percent) | 132.00% |
Stock Incentive Plan and Empl58
Stock Incentive Plan and Employee Stock Purchase Plan (Details 6) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Weighted average assumptions used for determining fair value of options | |||
Expected life | 6 years 3 months | ||
Other disclosures | |||
Share-based compensation expense | $ 13,930,000 | $ 11,313,000 | $ 8,216,000 |
ESPP | |||
Stock Incentive Plan | |||
Purchase price expressed as percentage of fair market value of common stock | 85.00% | ||
Weighted average assumptions used for determining fair value of options | |||
Expected life | 6 months | ||
Other disclosures | |||
Share-based compensation expense | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 |
Number of awards granted to employees (in shares) | 700,000 | 700,000 | |
Weighted average fair value (in dollars per share) | $ 5.61 | $ 5.44 | |
Unrecognized compensation cost | $ 600,000 | ||
Weighted average period for recognition of compensation costs | 7 months 6 days | ||
ESPP | Maximum | |||
Stock Incentive Plan | |||
Payroll deductions as percentage of salaries | 10.00% | ||
Number of shares per period up to which employees may purchase | 2,500 | ||
Value of shares up to which employees may purchase in any calendar year | $ 25,000 | ||
Weighted average assumptions used for determining fair value of options | |||
Risk-free interest rate (as a percent) | 0.26% | 0.13% | 0.14% |
Expected life | 1 year | ||
Expected volatility (as a percent) | 41.30% | 46.50% | 53.70% |
ESPP | Minimum | |||
Weighted average assumptions used for determining fair value of options | |||
Risk-free interest rate (as a percent) | 0.07% | 0.06% | 0.07% |
Expected life | 6 months | ||
Expected volatility (as a percent) | 27.10% | 27.50% | 40.30% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Components of income (loss) before provision for income taxes | |||
Domestic | $ (46,178) | $ (42,485) | $ (103,964) |
Foreign | 8,388 | 10,125 | 10,176 |
Loss before provision for income taxes | (37,790) | (32,360) | (93,788) |
Current: | |||
State | 33 | 78 | (21) |
Foreign | 1,722 | 2,918 | 2,647 |
Total current | 1,755 | 2,996 | 2,626 |
Deferred: | |||
Foreign | 664 | 92 | 947 |
Total deferred | 664 | 92 | 947 |
Total provision for income taxes | 2,419 | 3,088 | 3,573 |
Income tax payable | 400 | 2,000 | 1,200 |
Reconciliation of income taxes at the statutory federal income tax rate to net income taxes | |||
At federal statutory rate | (13,226) | (11,326) | (32,826) |
State tax, net of federal benefit | 33 | 78 | (21) |
Stock-based compensation expense | 579 | 332 | 4,061 |
Change in valuation allowance | 14,744 | 13,997 | 33,454 |
Credits | (79) | (114) | (1,272) |
Other | 779 | 640 | 69 |
Foreign taxes | (411) | (519) | 108 |
Total provision for income taxes | 2,419 | 3,088 | $ 3,573 |
Deferred tax assets: | |||
Federal and state net operating losses | 118,998 | 116,734 | |
Accrued expenses and reserves | 6,110 | 6,410 | |
Deferred revenue | 2,721 | 1,217 | |
Credits | 17,022 | 16,686 | |
Share-based compensation expense | 5,964 | 5,391 | |
Capitalized research and development | 3,959 | ||
Unicap | 1,749 | 1,710 | |
Other | 372 | 897 | |
Total deferred tax assets | 156,895 | 149,045 | |
Deferred tax liabilities: | |||
Debt discount | (4,318) | (7,087) | |
Fixed assets/intangibles | (4,846) | (8,268) | |
Total deferred tax liabilities | (9,164) | (15,355) | |
Valuation allowance | (147,722) | (133,039) | |
Net deferred tax assets | 9 | $ 651 | |
Income tax uncertainties | |||
Cumulative amount of undistributed earnings upon which no U.S. income taxes provided | $ 20,300 |
Income Taxes (Details 2)
Income Taxes (Details 2) $ in Millions | Jun. 30, 2015USD ($) |
Operating loss carryforwards | |
Amount expected to be credited to additional paid-in-capital | $ 3.9 |
Federal | |
Operating loss carryforwards | |
Net operating loss carryforwards | 329.6 |
State | |
Operating loss carryforwards | |
Net operating loss carryforwards | $ 157.5 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Valuation allowance | |||
Valuation allowance percentage established for domestic and foreign net deferred tax assets | 100.00% | ||
Aggregate changes in the balance of gross unrecognized tax benefits | |||
Balance at beginning of year | $ 17,169 | $ 16,749 | $ 15,147 |
Tax positions related to current year: Additions | 726 | 1,489 | 1,781 |
Tax positions related to prior years: Additions | 29 | 564 | |
Tax positions related to prior years: Reductions | (901) | (1,069) | (743) |
Balance at end of year | $ 17,023 | 17,169 | $ 16,749 |
Subsequent period within which no material changes in unrecognized tax benefits are expected | 12 months | ||
Reduction in uncertain tax position due to lapse of various statutes of limitation | $ 400 | ||
Uncertain tax benefits that, if realized, would affect the effective tax rate | 10,500 | ||
Accrued interest and penalties related to uncertain tax positions | 900 | $ 700 | |
Federal | Research | |||
Income Tax Contingency [Line Items] | |||
Tax credits | 16,300 | ||
State | Research | |||
Income Tax Contingency [Line Items] | |||
Tax credits | $ 16,500 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Other Income (Expense), Net | |||
Interest expense on convertible notes | $ (16,518) | $ (14,287) | $ (10,378) |
Foreign currency transaction loss | (2,551) | (91) | (2,503) |
Other | 448 | 162 | (252) |
Total other expense, net | $ (18,621) | $ (14,216) | $ (13,133) |
Debt (Details)
Debt (Details) - USD ($) | Apr. 17, 2014 | Feb. 28, 2013 | Aug. 02, 2011 | Apr. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Debt | |||||||
Payment to the convertible note holders to modify the notes | $ (417,000) | ||||||
Aggregate principal amount of debt refinanced | 7,844,000 | ||||||
Principal amount of the Notes | $ 215,000,000 | ||||||
Carrying amount of the equity conversion component | 31,033,000 | ||||||
Unamortized debt discount | (12,147,000) | ||||||
Net carrying amount | 202,853,000 | 195,612,000 | |||||
Interest expense related to amortization of debt issuance costs | 1,503,000 | 1,408,000 | $ 784,000 | ||||
Total interest expense recognized | 16,518,000 | 14,287,000 | 10,378,000 | ||||
3.75% Convertible Note and 3.50% Convertible Note | |||||||
Debt | |||||||
Interest expense related to contractual interest coupon | 7,774,000 | 7,774,000 | 5,292,000 | ||||
Interest expense related to amortization of debt discount | 7,241,000 | 5,105,000 | 4,302,000 | ||||
Interest expense related to amortization of debt issuance costs | 1,503,000 | 1,408,000 | 784,000 | ||||
Total interest expense recognized | $ 16,518,000 | $ 14,287,000 | $ 10,378,000 | ||||
3.75% Convertible Notes | |||||||
Debt | |||||||
Aggregate principal amount of debt issued | $ 100,000,000 | ||||||
Interest rate (as a percent) | 3.75% | 3.75% | |||||
Principal amount of the Notes | $ 75,900,000 | $ 100,000,000 | |||||
Proceeds from debt, net of costs | $ 96,100,000 | ||||||
Debt issuance costs, amortization period | 5 years | ||||||
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares) | 105.5548 | ||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | ||||||
Conversion price (in dollars per share) | $ 9.47 | ||||||
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be convertible into common stock | 30 days | ||||||
Number of consecutive business days immediately after any five consecutive trading day period during the note measurement period | 5 days | ||||||
Number of consecutive trading days before five consecutive business days during the note measurement period | 5 days | ||||||
Number of working days preceding maturity date for delivery of shares or payment of cash | 33 days | ||||||
Repurchase price, as percentage of principal amount, if company undergoes change of control | 100.00% | ||||||
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be redeemable | 30 days | ||||||
Discount rate on liability component (as a percent) | 10.00% | ||||||
Debt issuance costs and discount allocated to equity conversion component | $ 900,000 | ||||||
Carrying amount of the equity conversion component | $ 24,100,000 | $ 23,189,000 | |||||
Unamortized debt discount | (6,261,000) | ||||||
Net carrying amount | $ 93,739,000 | ||||||
Amortization period | 13 months | ||||||
Effective interest rate (as a percent) | 10.90% | ||||||
3.75% Convertible Notes | Minimum | |||||||
Debt | |||||||
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be convertible into common stock | 20 days | ||||||
Percentage of the closing sales price of the entity's common stock that the conversion price must exceed in order for the notes to be convertible | 130.00% | ||||||
Percentage of the closing sales price of the entity's common stock that the conversion price must exceed in order for the notes to be redeemable | 130.00% | ||||||
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be redeemable | 20 days | ||||||
3.75% Convertible Notes | Maximum | |||||||
Debt | |||||||
Percentage of the trading price to the product of the sale price of the entity's common stock and the conversion rate | 98.00% | ||||||
3.50% Convertible Notes | |||||||
Debt | |||||||
Aggregate principal amount of debt issued | $ 115,000,000 | ||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||
Conversion rate, amount of debt to be issued per $1000 of principal amount | $ 1,000 | ||||||
Aggregate principal amount of debt refinanced | 70,300,000 | $ 70,300,000 | |||||
Principal amount of the Notes | $ 44,654,000 | ||||||
Proceeds from debt, net of costs | $ 110,500,000 | ||||||
Debt issuance costs, amortization period | 5 years | ||||||
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares) | 187.6877 | ||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | ||||||
Conversion price (in dollars per share) | $ 5.33 | ||||||
Repurchase price, as percentage of principal amount, if company undergoes change of control | 100.00% | ||||||
Net carrying amount | $ 44,654,000 | ||||||
3.50% Series A Convertible Notes | |||||||
Debt | |||||||
Aggregate principal amount of debt issued | $ 70,300,000 | $ 70,300,000 | |||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | ||||
Payment to the convertible note holders to modify the notes | $ (400,000) | ||||||
Principal amount of the Notes | $ 70,346,000 | ||||||
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares) | 187.6877 | ||||||
Conversion price (in dollars per share) | $ 5.33 | ||||||
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be convertible into common stock | 20 days | ||||||
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be convertible into common stock | 30 days | ||||||
Percentage of the closing sales price of the entity's common stock that the conversion price must exceed in order for the notes to be convertible | 130.00% | ||||||
Number of consecutive business days immediately after any five consecutive trading day period during the note measurement period | 5 days | ||||||
Number of consecutive trading days before five consecutive business days during the note measurement period | 5 days | ||||||
Percentage of the trading price to the product of the sale price of the entity's common stock and the conversion rate | 98.00% | ||||||
Number of working days preceding maturity date for delivery of shares or payment of cash | 17 days | ||||||
Repurchase price, as percentage of principal amount, if company undergoes change of control | 100.00% | ||||||
Discount rate on liability component (as a percent) | 7.00% | ||||||
Portion of cash amount paid allocated to debt discount | $ 400,000 | ||||||
Portion of cash amount paid allocated to equity component | 47,000,000 | ||||||
Carrying amount of the equity conversion component | 7,844,000 | ||||||
Unamortized debt discount | (5,886,000) | ||||||
Net carrying amount | $ 64,460,000 | ||||||
Amortization period | 31 months | ||||||
Effective interest rate (as a percent) | 7.10% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Benefit Plans | |||
Employer's contribution to the 401(k) Plan | $ 2.3 | $ 2.1 | $ 2.3 |
Defined Benefit Pension Oblig65
Defined Benefit Pension Obligation (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Defined Benefit Pension Obligation | |
Unfunded liability | $ 1.7 |
Actuarial loss | $ 1 |
Restructuring Charges (Details)
Restructuring Charges (Details) - 12 months ended Jun. 30, 2013 - USD ($) $ in Millions | Total |
Restructuring and Severance Charges | |
Restructuring charges | $ 9.1 |
Office facility | |
Restructuring and Severance Charges | |
Restructuring charges | 1.4 |
Disposition of fixed assets and leasehold improvements | |
Restructuring and Severance Charges | |
Restructuring charges | 0.3 |
Employee severance | |
Restructuring and Severance Charges | |
Charges for severance and related benefits | $ 7.4 |
Expected reduction of staffing (as a percent) | 13.00% |
Quarterly Financial Data (una67
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Financial Data (unaudited) | |||||||||||
Net revenue | $ 101,750 | $ 97,515 | $ 98,155 | $ 82,381 | $ 102,000 | $ 97,144 | $ 93,634 | $ 76,641 | $ 379,801 | $ 369,419 | $ 315,974 |
Gross profit | 40,452 | 38,660 | 38,489 | 27,801 | 38,447 | 39,704 | 38,171 | 26,478 | 145,402 | 142,800 | 97,640 |
Loss from continuing operations | (40,209) | (35,448) | (97,361) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | $ (5,600) | $ (2,967) | $ (9,992) | $ (21,650) | $ (9,809) | $ (4,665) | $ (5,441) | $ (15,533) | $ (40,209) | $ (35,448) | $ (116,508) |
Net earnings per share - basic and diluted - continuing operations (in dollars per share) | $ (0.51) | $ (0.47) | $ (1.33) | ||||||||
Net earnings per share - basic and diluted - discontinued operations (in dollars per share) | (0.08) | ||||||||||
Basic and diluted - net loss (in dollars per share) | $ (0.07) | $ (0.04) | $ (0.13) | $ (0.28) | $ (0.13) | $ (0.06) | $ (0.07) | $ (0.21) | $ (0.51) | $ (0.47) | $ (1.41) |
Weighted average shares used in computing basic and diluted loss per share | 79,170 | 78,746 | 77,924 | 77,290 | 76,879 | 76,382 | 75,280 | 74,700 | 78,277 | 75,804 | 73,281 |