Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 31, 2014 | Jan. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | ACCURAY INC | |
Entity Central Index Key | 1138723 | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -24 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 78,489,378 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $97,273 | $92,346 |
Short-term investments | 53,517 | 79,553 |
Restricted cash | 1,436 | 1,492 |
Accounts receivable, net of allowance for doubtful accounts of $837 and $976 as of September 30, 2014 and June 30, 2014, respectively | 62,987 | 72,152 |
Inventories | 104,490 | 87,752 |
Prepaid expenses and other current assets | 15,076 | 17,873 |
Deferred cost of revenue | 11,960 | 13,302 |
Total current assets | 346,739 | 364,470 |
Property and equipment, net | 30,830 | 34,391 |
Goodwill | 58,015 | 58,091 |
Intangible assets, net | 19,541 | 23,517 |
Deferred cost of revenue | 2,220 | 2,899 |
Other assets | 10,220 | 11,820 |
Total assets | 467,565 | 495,188 |
Current liabilities: | ||
Accounts payable | 15,980 | 15,639 |
Accrued compensation | 19,482 | 32,569 |
Other accrued liabilities | 24,478 | 24,464 |
Customer advances | 19,673 | 19,804 |
Deferred revenue | 92,495 | 92,093 |
Total current liabilities | 172,108 | 184,569 |
Long-term liabilities: | ||
Long-term other liabilities | 10,483 | 6,593 |
Deferred revenue | 9,875 | 9,866 |
Long-term debt | 199,152 | 195,612 |
Total liabilities | 391,618 | 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 December 31, 2014 and June 30, 2014, respectively; issued and outstanding: 78,438,490 and 77,178,365 shares at December 31, 2014 and June 30, 2014, respectively | 78 | 77 |
Additional paid-in capital | 461,995 | 451,750 |
Accumulated other comprehensive income | 610 | 1,815 |
Accumulated deficit | -386,736 | -355,094 |
Total stockholders' equity | 75,947 | 98,548 |
Total liabilities and stockholders' equity | $467,565 | $495,188 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $837 | $976 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
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) | $0.00 | $0.00 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 78,438,490 | 77,178,365 |
Common stock, outstanding shares | 78,438,490 | 77,178,365 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Net revenue: | ||||
Products | $47,650 | $45,148 | $80,665 | $74,716 |
Services | 50,505 | 48,486 | 99,871 | 95,559 |
Total net revenue | 98,155 | 93,634 | 180,536 | 170,275 |
Cost of revenue: | ||||
Cost of products | 27,171 | 24,980 | 47,836 | 43,581 |
Cost of services | 32,495 | 30,483 | 66,410 | 62,045 |
Total cost of revenue | 59,666 | 55,463 | 114,246 | 105,626 |
Gross profit | 38,489 | 38,171 | 66,290 | 64,649 |
Operating expenses: | ||||
Research and development | 13,917 | 13,435 | 28,066 | 26,385 |
Selling and marketing | 15,802 | 14,262 | 33,776 | 28,716 |
General and administrative | 12,361 | 11,190 | 23,311 | 22,550 |
Total operating expenses | 42,080 | 38,887 | 85,153 | 77,651 |
Loss from operations | -3,591 | -716 | -18,863 | -13,002 |
Other expense, net | -5,528 | -3,775 | -10,989 | -6,235 |
Loss before provision for income taxes | -9,119 | -4,491 | -29,852 | -19,237 |
Provision for income taxes | 873 | 950 | 1,790 | 1,737 |
Net loss | -9,992 | -5,441 | -31,642 | -20,974 |
Loss per share attributable to stockholders | ||||
Earnings Per Share, Basic and Diluted | ($0.13) | ($0.07) | ($0.41) | ($0.28) |
Weighted average common shares used in computing loss per share | ||||
Basic and diluted (in shares) | 77,924 | 75,280 | 77,607 | 74,990 |
Net loss | -9,992 | -5,441 | -31,642 | -20,974 |
Foreign currency translation adjustment | -624 | 58 | -1,066 | 223 |
Unrealized gain (loss) on investments, net of tax | 2 | 69 | -139 | 359 |
Comprehensive loss | ($10,614) | ($5,314) | ($32,847) | ($20,392) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash Flows From Operating Activities | ||
Loss from continuing operations | ($31,642) | ($20,974) |
Adjustments to reconcile net loss to net cash used in operating activities : | ||
Depreciation and amortization | 9,960 | 10,576 |
Share-based compensation | 7,127 | 4,983 |
Amortization of debt issuance costs | 732 | 692 |
Amortization and accretion of discount and premium on investments | 488 | 930 |
Accretion of interest on long-term debt | 3,540 | 2,314 |
Recovery of bad debt, net | -51 | -244 |
Provision for write-down of inventories | 747 | 1,482 |
Changes in assets and liabilities: | ||
Restricted cash | -169 | |
Accounts receivable | 6,619 | -16,924 |
Inventories | -18,628 | -7,709 |
Prepaid expenses and other assets | 2,750 | -648 |
Deferred cost of revenue | 1,933 | -3,502 |
Accounts payable | 1,313 | -905 |
Accrued liabilities | -3,050 | 6,513 |
Customer advances | 732 | 3,158 |
Deferred revenue | 4,445 | 7,517 |
Net cash provided by (used in) operating activities | -12,985 | -12,910 |
Cash Flows From Investing Activities | ||
Purchases of property and equipment, net | -4,170 | -6,899 |
Purchases of investments | -56,011 | -11,517 |
Sale and maturity of investments | 81,420 | 22,829 |
Net cash provided by investing activities | 21,239 | 4,413 |
Cash Flows From Financing Activities | ||
Proceeds from employee stock plans | 3,034 | 4,063 |
Taxes paid related to net share settlement of equity awards | -394 | -199 |
Net cash provided by financing activities | 2,640 | 3,864 |
Effect of exchange rate changes on cash and cash equivalents | -5,967 | 1,767 |
Net increase (decrease) in cash and cash equivalent | 4,927 | -2,866 |
Cash and cash equivalents at beginning of period | 92,346 | 73,313 |
Cash and cash equivalents at end of period | $97,273 | $70,447 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies | |||||||||||||
Description of Business | ||||||||||||||
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. | ||||||||||||||
Basis of Presentation and Principles of Consolidation | ||||||||||||||
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. | ||||||||||||||
The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of the periods presented. The results for the three and six months ended December 31, 2014 are not necessarily indicative of the results to be expected for the year ending June 30, 2015, for any other interim period or for any future year. | ||||||||||||||
These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. The Company’s significant accounting policies are described in Note 2 to those audited consolidated financial statements. | ||||||||||||||
Recent Accounting Standard Update Not Yet Effective | ||||||||||||||
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 U.S. 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 U.S. 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. 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. | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures at the date of the financial statements. Key estimates and assumptions made by the Company relate to revenue recognition, assessment of recoverability of goodwill and intangible assets, valuation of inventories, share-based compensation expense, income taxes, allowance for doubtful accounts, loss contingencies and corporate bonus expenses. Actual results could differ materially from those estimates. | ||||||||||||||
Concentration of Credit and Other Risks | ||||||||||||||
The Company’s cash, cash equivalents and investments are 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. | ||||||||||||||
For the three and six months ended December 31, 2014 and 2013, there were no customers that represented 10% or more of total net revenue. At December 31, 2014, one customer accounted for 10% of the Company’s total 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. | ||||||||||||||
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. | ||||||||||||||
Revenue Recognition | ||||||||||||||
The Company earns revenue from the sale of products and related services. The Company records its revenues net of any value added or sales tax. For arrangements with multiple elements, the Company allocates arrangement fees to product and services based upon Vendor Specific Objective Evidence (“VSOE”) of fair value of the respective elements, Third-Party Evidence (“TPE”), or Best Estimate of Selling Price (“BESP”), using the relative selling price method. | ||||||||||||||
Product and Service 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 recognized upon delivery, assuming all other revenue recognition criteria are met. | ||||||||||||||
The Company offers its systems with post-contract customer support (“PCS”) contracts, installation services, training, and professional services. PCS contracts provide planned and corrective maintenance services, software updates, bug fixes, as well as call-center support. Service revenue is generated primarily from PCS (warranty period services and post warranty services), installation services, training, parts and upgrades that are sold under service contracts, and professional services. PCS revenue is deferred and recognized over the service period. Installation service revenue is recognized concurrent with system revenue. Training 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 parts or system upgrades where revenue recognition has been deferred. In those cases, the costs are deferred and are recognized over the period of revenue recognition. | ||||||||||||||
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 period. | ||||||||||||||
A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share follows (in thousands): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net loss used in computing net loss per share | $ | (9,992 | ) | $ | (5,441 | ) | $ | (31,642 | ) | $ | (20,974 | ) | ||
Denominator: | ||||||||||||||
Weighted average shares used in computing basic and diluted loss per share | 77,924 | 75,280 | 77,607 | 74,990 | ||||||||||
The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the vesting of Restricted Stock Units (RSU), Market Stock Units (MSU) and Performance Stock Units (PSU), and the purchase of shares under the Employee Stock Purchase Program (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. Additionally, 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 (together, the “Convertible Notes”) are included in the calculation of diluted net income per share only if their inclusion is dilutive. For the three and six months ended December 31, 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 December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Stock options | 2,861 | 3,911 | ||||||||||||
RSUs, PSUs and MSUs | 5,069 | 4,263 | ||||||||||||
3.75% Convertible Notes | — | — | ||||||||||||
3.50% Convertible Notes | 8,378 | 21,576 | ||||||||||||
3.50% Series A Convertible Notes | 3,886 | — | ||||||||||||
20,194 | 29,750 | |||||||||||||
Outstanding Convertible 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 December 31, 2014 and 2013. The 3.9 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. | ||||||||||||||
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): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Americas | $ | 45,717 | $ | 34,771 | $ | 84,195 | $ | 74,024 | ||||||
Europe, Middle East, India and Africa | 26,094 | 34,135 | 57,031 | 52,901 | ||||||||||
Asia (excluding Japan and India) | 14,470 | 10,367 | 19,352 | 17,666 | ||||||||||
Japan | 11,874 | 14,361 | 19,958 | 25,684 | ||||||||||
Total | $ | 98,155 | $ | 93,634 | $ | 180,536 | $ | 170,275 | ||||||
Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands): | ||||||||||||||
December 31, | June 30, | |||||||||||||
2014 | 2014 | |||||||||||||
Americas | $ | 27,184 | $ | 30,542 | ||||||||||
Europe, Middle East, India and Africa | 1,206 | 1,665 | ||||||||||||
Asia (excluding Japan and India) | 499 | 444 | ||||||||||||
Japan | 1,941 | 1,740 | ||||||||||||
Total | $ | 30,830 | $ | 34,391 | ||||||||||
Balance_Sheet_Components
Balance Sheet Components | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Components | |||||||||
Balance Sheet Components | 2. Balance Sheet Components | ||||||||
Financing receivables | |||||||||
A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset 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 $2.3 million and $2.8 million at December 31, 2014 and June 30, 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 December 31, 2014 and June 30, 2014, respectively, as revenue is recognized on a cash basis for these receivables. | |||||||||
Inventories | |||||||||
Inventories consisted of the following (in thousands): | |||||||||
December 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 44,539 | $ | 37,003 | |||||
Work-in-process | 23,850 | 17,692 | |||||||
Finished goods | 36,101 | 33,057 | |||||||
Inventories | $ | 104,490 | $ | 87,752 | |||||
Property and equipment, net | |||||||||
Property and equipment, net consisted of the following (in thousands): | |||||||||
December 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
Furniture and fixtures | $ | 5,306 | $ | 5,351 | |||||
Computer and office equipment | 11,531 | 10,540 | |||||||
Software | 10,827 | 10,736 | |||||||
Leasehold improvements | 19,358 | 18,991 | |||||||
Machinery and equipment | 47,715 | 45,730 | |||||||
Construction in progress | 4,493 | 5,877 | |||||||
99,230 | 97,225 | ||||||||
Less: Accumulated depreciation | (68,400 | ) | (62,834 | ) | |||||
Property and equipment, net | $ | 30,830 | $ | 34,391 | |||||
Depreciation expense related to property and equipment for the three and six months ended December 31, 2014 was $3.0 million and $6.0 million, respectively. Depreciation expense related to property and equipment for the three and six months ended December 31, 2013 was $2.9 million and $6.2 million, respectively. | |||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 6 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||||
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets | |||||||||||||||||||||
Goodwill | ||||||||||||||||||||||
Activity related to goodwill consisted of the following (in thousands): | ||||||||||||||||||||||
Six Months | Year | |||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||
December 31, | June 30, | |||||||||||||||||||||
2014 | 2014 | |||||||||||||||||||||
Balance at the beginning of the period | $ | 58,091 | $ | 59,368 | ||||||||||||||||||
Currency translation and other adjustments | (76 | ) | (1,277 | ) | ||||||||||||||||||
Balance at the end of the period | $ | 58,015 | $ | 58,091 | ||||||||||||||||||
In the second quarter of 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. | ||||||||||||||||||||||
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. | ||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||
The Company’s unamortized intangible assets associated with completed acquisitions at December 31, 2014 and June 30, 2014 are as follows (in thousands): | ||||||||||||||||||||||
December 31, 2014 | June 30, 2014 | |||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||
Carrying | Accumulated | Net | Carrying | Accumulated | Net | |||||||||||||||||
Useful Lives | Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||
(in years) | ||||||||||||||||||||||
Developed technology | 6-May | $ | 46,747 | $ | (27,206 | ) | $ | 19,541 | $ | 46,747 | $ | (23,230 | ) | $ | 23,517 | |||||||
The Company performs the annual impairment test in December of each year and did not identify any triggering events that would indicate potential impairment of its definite-lived intangible and long-lived assets as of December 31, 2014 and June 30, 2014. | ||||||||||||||||||||||
Amortization expense related to intangible assets for the three and six months ended December 31, 2014 was $2.0 million and $4.0 million, respectively. Amortization expense related to intangible assets for the three and six months ended December 31, 2013 was $2.2 million and $4.4 million, respectively. | ||||||||||||||||||||||
The estimated future amortization expense of purchased intangible assets as of December 31, 2014 is as follows (in thousands): | ||||||||||||||||||||||
Year Ending June 30, | Amount | |||||||||||||||||||||
2015 (remaining 6 months) | $ | 3,977 | ||||||||||||||||||||
2016 | 7,953 | |||||||||||||||||||||
2017 | 7,568 | |||||||||||||||||||||
2018 | 43 | |||||||||||||||||||||
Thereafter | — | |||||||||||||||||||||
$ | 19,541 | |||||||||||||||||||||
Financial_Instruments
Financial Instruments | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 sheet as short-term investments. Investments with original maturities longer than three months include commercial paper, U.S. agency securities, non-U.S. government securities and investment-grade 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): | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Estimated Market Value | |||||||||||||||||
Amortized | Gross | Gross | Cash and | Short-term | |||||||||||||
Cost | Unrealized | Unrealized | Cash | Investments | |||||||||||||
Gains | Losses | Equivalents | |||||||||||||||
Cash | $ | 81,166 | $ | — | $ | — | $ | 81,166 | $ | — | |||||||
Level 1 | |||||||||||||||||
Money market funds | 10,107 | — | — | 10,107 | — | ||||||||||||
10,107 | — | — | 10,107 | — | |||||||||||||
Level 2 | |||||||||||||||||
Commercial paper | 23,331 | — | (1 | ) | 6,000 | 17,330 | |||||||||||
U.S. Agency securities | 9,999 | — | (10 | ) | — | 9,989 | |||||||||||
Non-U.S. government securities | 3,074 | — | (6 | ) | — | 3,068 | |||||||||||
Corporate notes | 23,233 | — | (103 | ) | — | 23,130 | |||||||||||
59,637 | — | (120 | ) | 6,000 | 53,517 | ||||||||||||
Total | $ | 150,910 | $ | — | $ | (120 | ) | $ | 97,273 | $ | 53,517 | ||||||
June 30, 2014 | |||||||||||||||||
Estimated Market Value | |||||||||||||||||
Amortized | Gross | Gross | Cash and | Short-term | |||||||||||||
Cost | Unrealized | Unrealized | Cash | Investments | |||||||||||||
Gains | Losses | Equivalents | |||||||||||||||
Cash | $ | 91,797 | $ | — | $ | — | $ | 91,797 | $ | — | |||||||
Level 1 | |||||||||||||||||
Money market funds | 549 | — | — | 549 | — | ||||||||||||
Level 2 | |||||||||||||||||
Corporate notes | 79,535 | 72 | (54 | ) | — | 79,553 | |||||||||||
Total | $ | 171,881 | $ | 72 | $ | (54 | ) | $ | 92,346 | $ | 79,553 | ||||||
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 had investments that were in an unrealized loss position as of December 31, 2014. The Company determined that (i) it does not have the intent to sell any of these investments and (ii) it is not likely that it will be required to sell any of these investments before recovery of the entire amortized cost basis. The Company reviews its investments quarterly to identify and evaluate investments that have an indication of possible impairment. As of December 31, 2014, the Company anticipates that it will recover the entire carrying value of such investments and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the six months ended December 31, 2014. | |||||||||||||||||
Contractual maturities of available-for-sale securities at December 31, 2014 were as follows (in thousands): | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Amortized | Fair Value | ||||||||||||||||
Cost | |||||||||||||||||
Due in 1 year or less | $ | 32,804 | $ | 32,768 | |||||||||||||
Due in 1-2 years | 15,453 | 15,401 | |||||||||||||||
Due in 2-3 years | 5,380 | 5,348 | |||||||||||||||
$ | 53,637 | $ | 53,517 | ||||||||||||||
The following table summarizes the carrying values and estimated fair values of our long-term debt (in thousands): | |||||||||||||||||
December 31, 2014 | June 30, 2014 | ||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
3.75% Convertible Notes | $ | 91,061 | $ | 104,460 | $ | 88,511 | $ | 115,415 | |||||||||
3.50% Convertible Notes | 44,654 | 68,294 | 44,654 | 79,388 | |||||||||||||
3.50% Series A Convertible Notes | 63,437 | 107,587 | 62,447 | 125,065 | |||||||||||||
Total | $ | 199,152 | $ | 280,341 | $ | 195,612 | $ | 319,868 | |||||||||
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. | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies | |
Commitments and Contingencies | 5. Commitments and Contingencies |
The Company’s contractual obligations were presented in the Annual Report on Form 10-K for the previous annual reporting period ended June 30, 2014. There have been no material changes outside of the ordinary course of business in those obligations during the six months ended December 31, 2014. | |
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, 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. 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 $161.0 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 set for January 26, 2015 and is currently underway. Based on the information currently available to the Company, the Company expects the arbitrator to render a decision by the fourth quarter of fiscal 2015 or the first quarter of fiscal 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. | |
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 December 31, 2014. | |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-Based Compensation | ||||||||||||||
Share-Based Compensation | 6. Share-Based Compensation | |||||||||||||
The following table summarizes the share-based compensation charges included in the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands): | ||||||||||||||
Three Months Ended December | Six Months Ended December | |||||||||||||
31, | 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Cost of revenue | $ | 560 | $ | 469 | $ | 955 | $ | 923 | ||||||
Research and development | 804 | 656 | 1,698 | 1,134 | ||||||||||
Selling and marketing | 835 | 543 | 1,486 | 914 | ||||||||||
General and administrative | 1,655 | 1,135 | 2,988 | 2,012 | ||||||||||
$ | 3,854 | $ | 2,803 | $ | 7,127 | $ | 4,983 | |||||||
Debt
Debt | 6 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt | ||||||||||||||
Debt | 7. 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 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 3.75% 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 December 31, 2014. | ||||||||||||||
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 December 31, 2014 (in thousands): | ||||||||||||||
3.75% Notes | 3.50% Notes | 3.50% Series A | TOTAL | |||||||||||
Notes | ||||||||||||||
Carrying amount of the equity conversion component | $ | 23,189 | $ | — | $ | 7,844 | $ | 31,033 | ||||||
Principal amount of the Convertible Notes | $ | 100,000 | $ | 44,654 | $ | 70,346 | $ | 215,000 | ||||||
Unamortized debt discount | (8,939 | ) | — | (6,909 | ) | (15,848 | ) | |||||||
Net carrying amount | $ | 91,061 | $ | 44,654 | $ | 63,437 | $ | 199,152 | ||||||
A summary of interest expense on all Convertible Notes is as follows (in thousands): | ||||||||||||||
Three months ended | Six months ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Interest expense related to contractual interest coupon | $ | 1,943 | $ | 1,944 | $ | 3,886 | $ | 3,888 | ||||||
Interest expense related to amortization of debt discount | 1,782 | 1,166 | 3,541 | 2,314 | ||||||||||
Interest expense related to amortization of debt issuance costs | 369 | 349 | 732 | 692 | ||||||||||
$ | 4,094 | $ | 3,459 | $ | 8,159 | $ | 6,894 | |||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accumulated Other Comprehensive Income | ||||||||
Accumulated Other Comprehensive Income | 8. Accumulated Other Comprehensive Income | |||||||
The components of accumulated other comprehensive income 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 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 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): | ||||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Net unrealized gain (loss) on short-term investments | $ | (121 | ) | $ | 18 | |||
Cumulative foreign currency translation gain | 1,298 | 2,364 | ||||||
Defined benefit pension obligation | (567 | ) | (567 | ) | ||||
Accumulated other comprehensive income | $ | 610 | $ | 1,815 | ||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation | |||||||||||||
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. | ||||||||||||||
The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of the periods presented. The results for the three and six months ended December 31, 2014 are not necessarily indicative of the results to be expected for the year ending June 30, 2015, for any other interim period or for any future year. | ||||||||||||||
These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. The Company’s significant accounting policies are described in Note 2 to those audited consolidated financial statements. | ||||||||||||||
Recent Accounting Standard Update Not Yet Effective | ||||||||||||||
Recent Accounting Standard Update Not Yet Effective | ||||||||||||||
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 U.S. 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 U.S. 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. 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. | ||||||||||||||
Use of Estimates | Use of Estimates | |||||||||||||
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures at the date of the financial statements. Key estimates and assumptions made by the Company relate to revenue recognition, assessment of recoverability of goodwill and intangible assets, valuation of inventories, share-based compensation expense, income taxes, allowance for doubtful accounts, loss contingencies and corporate bonus expenses. Actual results could differ materially from those estimates. | ||||||||||||||
Concentration of Credit and Other Risks | ||||||||||||||
Concentration of Credit and Other Risks | ||||||||||||||
The Company’s cash, cash equivalents and investments are 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. | ||||||||||||||
For the three and six months ended December 31, 2014 and 2013, there were no customers that represented 10% or more of total net revenue. At December 31, 2014, one customer accounted for 10% of the Company’s total 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. | ||||||||||||||
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. | ||||||||||||||
Revenue Recognition | Revenue Recognition | |||||||||||||
The Company earns revenue from the sale of products and related services. The Company records its revenues net of any value added or sales tax. For arrangements with multiple elements, the Company allocates arrangement fees to product and services based upon Vendor Specific Objective Evidence (“VSOE”) of fair value of the respective elements, Third-Party Evidence (“TPE”), or Best Estimate of Selling Price (“BESP”), using the relative selling price method. | ||||||||||||||
Product and Service 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 recognized upon delivery, assuming all other revenue recognition criteria are met. | ||||||||||||||
The Company offers its systems with post-contract customer support (“PCS”) contracts, installation services, training, and professional services. PCS contracts provide planned and corrective maintenance services, software updates, bug fixes, as well as call-center support. Service revenue is generated primarily from PCS (warranty period services and post warranty services), installation services, training, parts and upgrades that are sold under service contracts, and professional services. PCS revenue is deferred and recognized over the service period. Installation service revenue is recognized concurrent with system revenue. Training 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 parts or system upgrades where revenue recognition has been deferred. In those cases, the costs are deferred and are recognized over the period of revenue recognition. | ||||||||||||||
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 period. | ||||||||||||||
A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share follows (in thousands): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net loss used in computing net loss per share | $ | (9,992 | ) | $ | (5,441 | ) | $ | (31,642 | ) | $ | (20,974 | ) | ||
Denominator: | ||||||||||||||
Weighted average shares used in computing basic and diluted loss per share | 77,924 | 75,280 | 77,607 | 74,990 | ||||||||||
The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the vesting of Restricted Stock Units (RSU), Market Stock Units (MSU) and Performance Stock Units (PSU), and the purchase of shares under the Employee Stock Purchase Program (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. Additionally, 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 (together, the “Convertible Notes”) are included in the calculation of diluted net income per share only if their inclusion is dilutive. For the three and six months ended December 31, 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 December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Stock options | 2,861 | 3,911 | ||||||||||||
RSUs, PSUs and MSUs | 5,069 | 4,263 | ||||||||||||
3.75% Convertible Notes | — | — | ||||||||||||
3.50% Convertible Notes | 8,378 | 21,576 | ||||||||||||
3.50% Series A Convertible Notes | 3,886 | — | ||||||||||||
20,194 | 29,750 | |||||||||||||
Outstanding Convertibles Notes-Diluted Share Impact | Outstanding Convertible 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 December 31, 2014 and 2013. The 3.9 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. | ||||||||||||||
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): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Americas | $ | 45,717 | $ | 34,771 | $ | 84,195 | $ | 74,024 | ||||||
Europe, Middle East, India and Africa | 26,094 | 34,135 | 57,031 | 52,901 | ||||||||||
Asia (excluding Japan and India) | 14,470 | 10,367 | 19,352 | 17,666 | ||||||||||
Japan | 11,874 | 14,361 | 19,958 | 25,684 | ||||||||||
Total | $ | 98,155 | $ | 93,634 | $ | 180,536 | $ | 170,275 | ||||||
Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands): | ||||||||||||||
December 31, | June 30, | |||||||||||||
2014 | 2014 | |||||||||||||
Americas | $ | 27,184 | $ | 30,542 | ||||||||||
Europe, Middle East, India and Africa | 1,206 | 1,665 | ||||||||||||
Asia (excluding Japan and India) | 499 | 444 | ||||||||||||
Japan | 1,941 | 1,740 | ||||||||||||
Total | $ | 30,830 | $ | 34,391 | ||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
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 follows (in thousands): | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net loss used in computing net loss per share | $ | (9,992 | ) | $ | (5,441 | ) | $ | (31,642 | ) | $ | (20,974 | ) | ||
Denominator: | ||||||||||||||
Weighted average shares used in computing basic and diluted loss per share | 77,924 | 75,280 | 77,607 | 74,990 | ||||||||||
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 December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Stock options | 2,861 | 3,911 | ||||||||||||
RSUs, PSUs and MSUs | 5,069 | 4,263 | ||||||||||||
3.75% Convertible Notes | — | — | ||||||||||||
3.50% Convertible Notes | 8,378 | 21,576 | ||||||||||||
3.50% Series A Convertible Notes | 3,886 | — | ||||||||||||
20,194 | 29,750 | |||||||||||||
Summary of revenue by geographic region | The following summarizes revenue by geographic region (in thousands): | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Americas | $ | 45,717 | $ | 34,771 | $ | 84,195 | $ | 74,024 | ||||||
Europe, Middle East, India and Africa | 26,094 | 34,135 | 57,031 | 52,901 | ||||||||||
Asia (excluding Japan and India) | 14,470 | 10,367 | 19,352 | 17,666 | ||||||||||
Japan | 11,874 | 14,361 | 19,958 | 25,684 | ||||||||||
Total | $ | 98,155 | $ | 93,634 | $ | 180,536 | $ | 170,275 | ||||||
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): | |||||||||||||
December 31, | June 30, | |||||||||||||
2014 | 2014 | |||||||||||||
Americas | $ | 27,184 | $ | 30,542 | ||||||||||
Europe, Middle East, India and Africa | 1,206 | 1,665 | ||||||||||||
Asia (excluding Japan and India) | 499 | 444 | ||||||||||||
Japan | 1,941 | 1,740 | ||||||||||||
Total | $ | 30,830 | $ | 34,391 | ||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Components | |||||||||
Schedule of inventories | Inventories consisted of the following (in thousands): | ||||||||
December 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 44,539 | $ | 37,003 | |||||
Work-in-process | 23,850 | 17,692 | |||||||
Finished goods | 36,101 | 33,057 | |||||||
Inventories | $ | 104,490 | $ | 87,752 | |||||
Schedule of property and equipment, net | |||||||||
Property and equipment, net consisted of the following (in thousands): | |||||||||
December 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
Furniture and fixtures | $ | 5,306 | $ | 5,351 | |||||
Computer and office equipment | 11,531 | 10,540 | |||||||
Software | 10,827 | 10,736 | |||||||
Leasehold improvements | 19,358 | 18,991 | |||||||
Machinery and equipment | 47,715 | 45,730 | |||||||
Construction in progress | 4,493 | 5,877 | |||||||
99,230 | 97,225 | ||||||||
Less: Accumulated depreciation | (68,400 | ) | (62,834 | ) | |||||
Property and equipment, net | $ | 30,830 | $ | 34,391 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||||
Schedule of goodwill | Activity related to goodwill consisted of the following (in thousands): | |||||||||||||||||||||
Six Months | Year | |||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||
December 31, | June 30, | |||||||||||||||||||||
2014 | 2014 | |||||||||||||||||||||
Balance at the beginning of the period | $ | 58,091 | $ | 59,368 | ||||||||||||||||||
Currency translation and other adjustments | (76 | ) | (1,277 | ) | ||||||||||||||||||
Balance at the end of the period | $ | 58,015 | $ | 58,091 | ||||||||||||||||||
Schedule of intangible assets associated with completed acquisitions | The Company’s unamortized intangible assets associated with completed acquisitions at December 31, 2014 and June 30, 2014 are as follows (in thousands): | |||||||||||||||||||||
December 31, 2014 | June 30, 2014 | |||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||
Carrying | Accumulated | Net | Carrying | Accumulated | Net | |||||||||||||||||
Useful Lives | Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||
(in years) | ||||||||||||||||||||||
Developed technology | 6-May | $ | 46,747 | $ | (27,206 | ) | $ | 19,541 | $ | 46,747 | $ | (23,230 | ) | $ | 23,517 | |||||||
Schedule of estimated future amortization expense of purchased intangible assets | The estimated future amortization expense of purchased intangible assets as of December 31, 2014 is as follows (in thousands): | |||||||||||||||||||||
Year Ending June 30, | Amount | |||||||||||||||||||||
2015 (remaining 6 months) | $ | 3,977 | ||||||||||||||||||||
2016 | 7,953 | |||||||||||||||||||||
2017 | 7,568 | |||||||||||||||||||||
2018 | 43 | |||||||||||||||||||||
Thereafter | — | |||||||||||||||||||||
$ | 19,541 | |||||||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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): | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Estimated Market Value | |||||||||||||||||
Amortized | Gross | Gross | Cash and | Short-term | |||||||||||||
Cost | Unrealized | Unrealized | Cash | Investments | |||||||||||||
Gains | Losses | Equivalents | |||||||||||||||
Cash | $ | 81,166 | $ | — | $ | — | $ | 81,166 | $ | — | |||||||
Level 1 | |||||||||||||||||
Money market funds | 10,107 | — | — | 10,107 | — | ||||||||||||
10,107 | — | — | 10,107 | — | |||||||||||||
Level 2 | |||||||||||||||||
Commercial paper | 23,331 | — | (1 | ) | 6,000 | 17,330 | |||||||||||
U.S. Agency securities | 9,999 | — | (10 | ) | — | 9,989 | |||||||||||
Non-U.S. government securities | 3,074 | — | (6 | ) | — | 3,068 | |||||||||||
Corporate notes | 23,233 | — | (103 | ) | — | 23,130 | |||||||||||
59,637 | — | (120 | ) | 6,000 | 53,517 | ||||||||||||
Total | $ | 150,910 | $ | — | $ | (120 | ) | $ | 97,273 | $ | 53,517 | ||||||
June 30, 2014 | |||||||||||||||||
Estimated Market Value | |||||||||||||||||
Amortized | Gross | Gross | Cash and | Short-term | |||||||||||||
Cost | Unrealized | Unrealized | Cash | Investments | |||||||||||||
Gains | Losses | Equivalents | |||||||||||||||
Cash | $ | 91,797 | $ | — | $ | — | $ | 91,797 | $ | — | |||||||
Level 1 | |||||||||||||||||
Money market funds | 549 | — | — | 549 | — | ||||||||||||
Level 2 | |||||||||||||||||
Corporate notes | 79,535 | 72 | (54 | ) | — | 79,553 | |||||||||||
Total | $ | 171,881 | $ | 72 | $ | (54 | ) | $ | 92,346 | $ | 79,553 | ||||||
Schedule of contractual maturities of available-for-sale securities | Contractual maturities of available-for-sale securities at December 31, 2014 were as follows (in thousands): | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Amortized | Fair Value | ||||||||||||||||
Cost | |||||||||||||||||
Due in 1 year or less | $ | 32,804 | $ | 32,768 | |||||||||||||
Due in 1-2 years | 15,453 | 15,401 | |||||||||||||||
Due in 2-3 years | 5,380 | 5,348 | |||||||||||||||
$ | 53,637 | $ | 53,517 | ||||||||||||||
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 our long-term debt (in thousands): | ||||||||||||||||
December 31, 2014 | June 30, 2014 | ||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
3.75% Convertible Notes | $ | 91,061 | $ | 104,460 | $ | 88,511 | $ | 115,415 | |||||||||
3.50% Convertible Notes | 44,654 | 68,294 | 44,654 | 79,388 | |||||||||||||
3.50% Series A Convertible Notes | 63,437 | 107,587 | 62,447 | 125,065 | |||||||||||||
Total | $ | 199,152 | $ | 280,341 | $ | 195,612 | $ | 319,868 | |||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-Based Compensation | ||||||||||||||
Summary of share-based compensation charges | The following table summarizes the share-based compensation charges included in the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands): | |||||||||||||
Three Months Ended December | Six Months Ended December | |||||||||||||
31, | 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Cost of revenue | $ | 560 | $ | 469 | $ | 955 | $ | 923 | ||||||
Research and development | 804 | 656 | 1,698 | 1,134 | ||||||||||
Selling and marketing | 835 | 543 | 1,486 | 914 | ||||||||||
General and administrative | 1,655 | 1,135 | 2,988 | 2,012 | ||||||||||
$ | 3,854 | $ | 2,803 | $ | 7,127 | $ | 4,983 | |||||||
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt | ||||||||||||||
Schedule of carrying value of Convertible Notes | The following table presents the carrying values of all Convertible Notes as of December 31, 2014 (in thousands): | |||||||||||||
3.75% Notes | 3.50% Notes | 3.50% Series A | TOTAL | |||||||||||
Notes | ||||||||||||||
Carrying amount of the equity conversion component | $ | 23,189 | $ | — | $ | 7,844 | $ | 31,033 | ||||||
Principal amount of the Convertible Notes | $ | 100,000 | $ | 44,654 | $ | 70,346 | $ | 215,000 | ||||||
Unamortized debt discount | (8,939 | ) | — | (6,909 | ) | (15,848 | ) | |||||||
Net carrying amount | $ | 91,061 | $ | 44,654 | $ | 63,437 | $ | 199,152 | ||||||
Summary of interest expense related to the Convertible Notes | A summary of interest expense on all Convertible Notes is as follows (in thousands): | |||||||||||||
Three months ended | Six months ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Interest expense related to contractual interest coupon | $ | 1,943 | $ | 1,944 | $ | 3,886 | $ | 3,888 | ||||||
Interest expense related to amortization of debt discount | 1,782 | 1,166 | 3,541 | 2,314 | ||||||||||
Interest expense related to amortization of debt issuance costs | 369 | 349 | 732 | 692 | ||||||||||
$ | 4,094 | $ | 3,459 | $ | 8,159 | $ | 6,894 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accumulated Other Comprehensive Income | ||||||||
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): | |||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Net unrealized gain (loss) on short-term investments | $ | (121 | ) | $ | 18 | |||
Cumulative foreign currency translation gain | 1,298 | 2,364 | ||||||
Defined benefit pension obligation | (567 | ) | (567 | ) | ||||
Accumulated other comprehensive income | $ | 610 | $ | 1,815 | ||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (Total accounts receivable, Credit concentration risk, Major customers) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2014 | |
customer | customer | |
Total accounts receivable | Credit concentration risk | Major customers | ||
Concentration of Credit Risk and Other Risks and Uncertainties | ||
Number of significant customers | 1 | 1 |
Percentage of concentration risk | 13.00% | 10.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 02, 2011 | Aug. 01, 2011 | Feb. 28, 2013 | Apr. 17, 2014 |
Numerator: | ||||||||
Loss from operations used in computing loss per share from continuing operations | ($9,992) | ($5,441) | ($31,642) | ($20,974) | ||||
Net loss attributable to stockholders | ($9,992) | ($5,441) | ($31,642) | ($20,974) | ||||
Denominator: | ||||||||
Weighted average shares used in computing basic and diluted loss per share | 77,924,000 | 75,280,000 | 77,607,000 | 74,990,000 | ||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 20,194,000 | 29,750,000 | ||||||
3.75% Convertible Notes | ||||||||
Denominator: | ||||||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | 3.75% | ||||
Debt Instrument Convertible Number of Shares | 10,600,000 | |||||||
3.50% Convertible Notes | ||||||||
Denominator: | ||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 8,378,000 | 21,576,000 | ||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | |||||
3.50% Series A Convertible Notes | ||||||||
Denominator: | ||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 3,886,000 | |||||||
Interest rate (as a percent) | 3.50% | |||||||
Debt Instrument Convertible Number of Shares | 13,200,000 | |||||||
Stock options | ||||||||
Denominator: | ||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 2,861,000 | 3,911,000 | ||||||
RSUs, PSUs and MSUs | ||||||||
Denominator: | ||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 5,069,000 | 4,263,000 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
segment | |||||
Segment Information | |||||
Number of operating segments | 1 | ||||
Revenue | $98,155 | $93,634 | $180,536 | $170,275 | |
Long lived assets | 30,830 | 30,830 | 34,391 | ||
Americas | |||||
Segment Information | |||||
Revenue | 45,717 | 34,771 | 84,195 | 74,024 | |
Long lived assets | 27,184 | 27,184 | 30,542 | ||
Europe, Middle East, India and Africa | |||||
Segment Information | |||||
Revenue | 26,094 | 34,135 | 57,031 | 52,901 | |
Long lived assets | 1,206 | 1,206 | 1,665 | ||
Asia (excluding Japan and India) | |||||
Segment Information | |||||
Revenue | 14,470 | 10,367 | 19,352 | 17,666 | |
Long lived assets | 499 | 499 | 444 | ||
Japan | |||||
Segment Information | |||||
Revenue | 11,874 | 14,361 | 19,958 | 25,684 | |
Long lived assets | $1,941 | $1,941 | $1,740 |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Inventories | |||||
Raw materials | $44,539,000 | $44,539,000 | $37,003,000 | ||
Work-in-process | 23,850,000 | 23,850,000 | 17,692,000 | ||
Finished goods | 36,101,000 | 36,101,000 | 33,057,000 | ||
Total inventories | 104,490,000 | 104,490,000 | 87,752,000 | ||
Financing receivables | |||||
Accounts receivable with contractual maturities of more than one year | 2,300,000 | 2,300,000 | 2,800,000 | ||
Property and Equipment, net | |||||
Property and equipment, gross | 99,230,000 | 99,230,000 | 97,225,000 | ||
Less: Accumulated depreciation and amortization | -68,400,000 | -68,400,000 | -62,834,000 | ||
Property and equipment, net | 30,830,000 | 30,830,000 | 34,391,000 | ||
Depreciation and amortization expense | 3,000,000 | 2,900,000 | 6,000,000 | 6,200,000 | |
Furniture and fixtures | |||||
Property and Equipment, net | |||||
Property and equipment, gross | 5,306,000 | 5,306,000 | 5,351,000 | ||
Computer and office equipment | |||||
Property and Equipment, net | |||||
Property and equipment, gross | 11,531,000 | 11,531,000 | 10,540,000 | ||
Computer software | |||||
Property and Equipment, net | |||||
Property and equipment, gross | 10,827,000 | 10,827,000 | 10,736,000 | ||
Leasehold improvements | |||||
Property and Equipment, net | |||||
Property and equipment, gross | 19,358,000 | 19,358,000 | 18,991,000 | ||
Machinery and equipment | |||||
Property and Equipment, net | |||||
Property and equipment, gross | 47,715,000 | 47,715,000 | 45,730,000 | ||
Construction in progress | |||||
Property and Equipment, net | |||||
Property and equipment, gross | $4,493,000 | $4,493,000 | $5,877,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Changes in the carrying amount of goodwill | ||||||
Balance at the beginning of the period | $58,091,000 | $59,368,000 | $59,368,000 | |||
Currency translation and other adjustment | -76,000 | -1,277,000 | ||||
Balance at the end of the period | 58,015,000 | 58,091,000 | 58,015,000 | 58,091,000 | ||
Impairment of goodwill | 0 | |||||
Goodwill | 58,015,000 | 58,091,000 | 58,015,000 | 58,091,000 | ||
Total gross carrying amount | 46,747,000 | 46,747,000 | 46,747,000 | 46,747,000 | ||
Accumulated Amortization | -27,206,000 | -23,230,000 | -27,206,000 | -23,230,000 | ||
Net Amount, Finite Lived Intangibles | 19,541,000 | 23,517,000 | 19,541,000 | 23,517,000 | ||
Amortization expense | 2,000,000 | 2,200,000 | 4,000,000 | 4,400,000 | ||
Estimated future amortization expense of purchased intangible assets | ||||||
2015 (remaining 9 months) | 3,977,000 | 3,977,000 | ||||
2016 | 7,953,000 | 7,953,000 | ||||
2017 | 7,568,000 | 7,568,000 | ||||
2018 | 43,000 | 43,000 | ||||
Thereafter | 0 | 0 | ||||
Net Amount, Finite Lived Intangibles | 19,541,000 | 23,517,000 | 19,541,000 | 23,517,000 | ||
Minimum | ||||||
Changes in the carrying amount of goodwill | ||||||
Useful Lives | 5 years | |||||
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 | $1,300,000 | $1,300,000 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||||
Cash, cash equivalents and short-term investments | ||||
Cash | $81,166 | $91,797 | ||
Amortized Cost | 53,637 | |||
Gross Unrealized Gains | 72 | |||
Gross Unrealized Losses | -120 | -54 | ||
Available-for-sale Securities | 53,517 | |||
Total Amortized Cost | 150,910 | 171,881 | ||
Cash and Cash Equivalents | 97,273 | 92,346 | 70,447 | 73,313 |
Short-term investments | 53,517 | 79,553 | ||
Amortized Cost | ||||
Due in 1 year or less | 32,804 | |||
Due in 1-2 years | 15,453 | |||
Due in 2-3 years | 5,380 | |||
Amortized cost | 53,637 | |||
Fair Value | ||||
Due in 1 year or less | 32,768 | |||
Due in 1-2 years | 15,401 | |||
Due in 2-3 years | 5,348 | |||
Available-for-sale Securities | 53,517 | |||
Level 1 | ||||
Cash, cash equivalents and short-term investments | ||||
Cash Equivalents | 10,107 | |||
Cash Equivalents and Short-term Investments including Available-for-sale Securities | 10,107 | |||
Level 1 | Money market funds | ||||
Cash, cash equivalents and short-term investments | ||||
Cash Equivalents | 10,107 | 549 | ||
Cash Equivalents and Short-term Investments including Available-for-sale Securities | 10,107 | 549 | ||
Level 2 | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 59,637 | |||
Gross Unrealized Losses | -120 | |||
Cash and Cash Equivalents | 6,000 | |||
Short-term investments | 53,517 | |||
Amortized Cost | ||||
Amortized cost | 59,637 | |||
Level 2 | Commercial paper | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 23,331 | |||
Gross Unrealized Losses | -1 | |||
Cash and Cash Equivalents | 6,000 | |||
Short-term investments | 17,330 | |||
Amortized Cost | ||||
Amortized cost | 23,331 | |||
Level 2 | Agency Securities [Member] | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 9,999 | |||
Gross Unrealized Losses | -10 | |||
Short-term investments | 9,989 | |||
Amortized Cost | ||||
Amortized cost | 9,999 | |||
Level 2 | Foreign Government Debt Securities [Member] | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 3,074 | |||
Gross Unrealized Losses | -6 | |||
Short-term investments | 3,068 | |||
Amortized Cost | ||||
Amortized cost | 3,074 | |||
Level 2 | Corporate notes | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 23,233 | 79,535 | ||
Gross Unrealized Gains | 72 | |||
Gross Unrealized Losses | -103 | -54 | ||
Available-for-sale Securities | 23,130 | |||
Short-term investments | 79,553 | |||
Amortized Cost | ||||
Amortized cost | 23,233 | 79,535 | ||
Fair Value | ||||
Available-for-sale Securities | $23,130 |
Financial_Instruments_Details_
Financial Instruments (Details 2) (USD $) | Dec. 31, 2014 | Aug. 02, 2011 | Aug. 01, 2011 | Feb. 28, 2013 | Apr. 17, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||||||
3.75% Convertible Notes | ||||||
Fair value measurement | ||||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |||
3.50% Convertible Notes | ||||||
Fair value measurement | ||||||
Interest rate (as a percent) | 3.50% | 3.50% | ||||
3.50% Series A Convertible Notes | ||||||
Fair value measurement | ||||||
Interest rate (as a percent) | 3.50% | |||||
Non-recurring basis | Carrying Value | ||||||
Fair value measurement | ||||||
Long term debt | 199,152 | $195,612 | ||||
Non-recurring basis | Carrying Value | 3.75% Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 91,061 | 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 | 63,437 | 62,447 | ||||
Non-recurring basis | Fair Value | ||||||
Fair value measurement | ||||||
Long term debt | 280,341 | 319,868 | ||||
Non-recurring basis | Fair Value | 3.75% Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 104,460 | 115,415 | ||||
Non-recurring basis | Fair Value | 3.50% Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 68,294 | 79,388 | ||||
Non-recurring basis | Fair Value | 3.50% Series A Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 107,587 | $125,065 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
21-May-12 | Apr. 28, 2011 | Dec. 31, 2014 | |
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 | 161,000,000 | ||
Cowealth Medical | Parent Company [Member] | |||
Contingencies | |||
Counterclaim for damages filed by the company | $35,000,000 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based compensation charges | ||||
Share-based compensation expense | $3,854 | $2,803 | $7,127 | $4,983 |
Cost of revenue | ||||
Share-based compensation charges | ||||
Share-based compensation expense | 560 | 469 | 955 | 923 |
Research and development | ||||
Share-based compensation charges | ||||
Share-based compensation expense | 804 | 656 | 1,698 | 1,134 |
Selling and marketing | ||||
Share-based compensation charges | ||||
Share-based compensation expense | 835 | 543 | 1,486 | 914 |
General and administrative | ||||
Share-based compensation charges | ||||
Share-based compensation expense | $1,655 | $1,135 | $2,988 | $2,012 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 01, 2011 | Apr. 30, 2014 | Feb. 28, 2013 | Apr. 17, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Aug. 02, 2011 | |
Debt | ||||||||||
Principal amount of the Notes | $215,000,000 | $215,000,000 | ||||||||
Carrying amount of the equity conversion component | 31,033,000 | 31,033,000 | ||||||||
Unamortized debt discount | -15,848,000 | -15,848,000 | ||||||||
Net carrying amount | 199,152,000 | 199,152,000 | 195,612,000 | |||||||
Interest expense related to contractual interest coupon | 1,944,000 | 3,886,000 | ||||||||
Interest expense related to amortization of debt discount | 1,166,000 | 3,541,000 | ||||||||
Interest expense related to amortization of debt issuance costs | 349,000 | 732,000 | 692,000 | |||||||
Total interest expense recognized | 3,459,000 | 8,159,000 | ||||||||
3.75% Convertible Notes | ||||||||||
Debt | ||||||||||
Aggregate principal amount of debt issued | 100,000,000 | |||||||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | 3.75% | ||||||
Principal amount of the Notes | 100,000,000 | 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 | 1,000 | ||||||||
Conversion price (in dollars per share) | $9.47 | $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 | 23,189,000 | 24,100,000 | 23,189,000 | |||||||
Unamortized debt discount | -8,939,000 | -8,939,000 | ||||||||
Net carrying amount | 91,061,000 | 75,900,000 | 91,061,000 | |||||||
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% | |||||||
Principal amount of the Notes | 44,654,000 | 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 | 1,000 | ||||||||
Conversion price (in dollars per share) | $5.33 | $5.33 | ||||||||
Repurchase price, as percentage of principal amount, if company undergoes change of control | 100.00% | |||||||||
Carrying amount of the equity conversion component | 0 | 0 | ||||||||
Unamortized debt discount | 0 | 0 | ||||||||
Net carrying amount | 44,654,000 | 44,654,000 | ||||||||
Aggregate principal amount of debt refinanced | 70,300,000 | |||||||||
Conversion rate, amount of debt to be issued per $1000 of principal amount | 1,000 | |||||||||
3.50% Series A Convertible Notes | ||||||||||
Debt | ||||||||||
Aggregate principal amount of debt issued | 70,300,000 | |||||||||
Interest rate (as a percent) | 3.50% | |||||||||
Principal amount of the Notes | 70,346,000 | 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 | $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 | |||||||||
Discount rate on liability component (as a percent) | 7.00% | |||||||||
Carrying amount of the equity conversion component | 7,844,000 | 7,844,000 | ||||||||
Unamortized debt discount | -6,909,000 | -6,909,000 | ||||||||
Net carrying amount | 63,437,000 | 63,437,000 | ||||||||
Interest expense related to contractual interest coupon | 3,888,000 | 1,943,000 | ||||||||
Interest expense related to amortization of debt discount | 2,314,000 | 1,782,000 | ||||||||
Interest expense related to amortization of debt issuance costs | 692,000 | 369,000 | ||||||||
Total interest expense recognized | 6,894,000 | 4,094,000 | ||||||||
Payment to the convertible note holders to modify the notes | 400,000 | |||||||||
Conversion rate, amount of debt to be issued per $1000 of principal amount | 1,000 | 1,000 | ||||||||
Portion of cash amount paid allocated to debt discount | 400,000 | 400,000 | ||||||||
Portion of cash amount paid allocated to equity component | $47,000,000 | $47,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 |
Accumulated Other Comprehensive Income | ||
Net unrealized gain (loss) on short-term investments | ($121) | $18 |
Cumulative foreign currency translation gain | 1,298 | 2,364 |
Change in defined benefit pension obligation | -567 | -567 |
Accumulated other comprehensive income | $610 | $1,815 |