Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | Apr. 22, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | ACCURAY INC | |
Entity Central Index Key | 1,138,723 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 80,924,480 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 79,155 | $ 79,551 |
Short-term investments | 70,650 | 64,306 |
Restricted cash | 1,080 | 3,734 |
Accounts receivable, net of allowance for doubtful accounts of $864 and $709 as of March 31, 2016 and June 30, 2015 respectively | 89,319 | 77,727 |
Inventories | 117,122 | 106,151 |
Prepaid expenses and other current assets | 14,688 | 15,991 |
Deferred cost of revenue | 8,632 | 6,869 |
Total current assets | 380,646 | 354,329 |
Property and equipment, net | 29,061 | 31,829 |
Goodwill | 57,936 | 58,054 |
Intangible assets, net | 9,599 | 15,564 |
Deferred cost of revenue | 1,654 | 1,500 |
Other assets | 11,124 | 5,497 |
Total assets | 490,020 | 466,773 |
Current liabilities: | ||
Accounts payable | 21,737 | 13,096 |
Accrued compensation | 20,534 | 21,934 |
Other accrued liabilities | 23,415 | 18,720 |
Short-term debt | 39,278 | |
Customer advances | 19,732 | 19,385 |
Deferred revenue | 104,935 | 96,780 |
Total current liabilities | 229,631 | 169,915 |
Long-term liabilities: | ||
Long-term other liabilities | 10,925 | 10,934 |
Deferred revenue | 16,722 | 10,489 |
Long-term debt | 170,395 | 199,655 |
Total liabilities | $ 427,673 | $ 390,993 |
Commitments 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 March 31, 2016 and June 30, 2015, respectively; issued and outstanding: 80,924,480 and 79,477,838 shares at March 31, 2016 and June 30, 2015, respectively | $ 81 | $ 79 |
Additional paid-in capital | 476,165 | 471,430 |
Accumulated other comprehensive loss | (299) | (426) |
Accumulated deficit | (413,600) | (395,303) |
Total stockholders' equity | 62,347 | 75,780 |
Total liabilities and stockholders' equity | $ 490,020 | $ 466,773 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Condensed Consolidated Balance Sheets | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 864 | $ 709 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 80,924,480 | 79,477,838 |
Common stock, outstanding shares | 80,924,480 | 79,477,838 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net revenue: | ||||
Products | $ 53,740 | $ 46,361 | $ 149,494 | $ 127,026 |
Services | 51,544 | 51,154 | 154,333 | 151,025 |
Total net revenue | 105,284 | 97,515 | 303,827 | 278,051 |
Cost of revenue: | ||||
Cost of products | 29,622 | 27,332 | 85,356 | 75,168 |
Cost of services | 30,718 | 31,523 | 97,058 | 97,933 |
Total cost of revenue | 60,340 | 58,855 | 182,414 | 173,101 |
Gross profit | 44,944 | 38,660 | 121,413 | 104,950 |
Operating expenses: | ||||
Research and development | 13,270 | 12,836 | 42,497 | 40,902 |
Selling and marketing | 12,516 | 12,987 | 41,009 | 46,763 |
General and administrative | 13,716 | 11,665 | 39,820 | 34,976 |
Total operating expenses | 39,502 | 37,488 | 123,326 | 122,641 |
Income (loss) from operations | 5,442 | 1,172 | (1,913) | (17,691) |
Other expense, net | (3,963) | (3,618) | (14,124) | (14,607) |
Income (loss) before provision for income taxes | 1,479 | (2,446) | (16,037) | (32,298) |
Provision for income taxes | 723 | 521 | 2,260 | 2,311 |
Net income (loss) | $ 756 | $ (2,967) | $ (18,297) | $ (34,609) |
Net income (loss) per share | ||||
Basic (in dollars per share) | $ 0.01 | $ (0.04) | $ (0.23) | $ (0.44) |
Diluted (in dollars per share) | $ 0.01 | $ (0.04) | $ (0.23) | $ (0.44) |
Weighted average common shares used in computing loss per share | ||||
Basic (in shares) | 80,860 | 78,746 | 80,320 | 77,981 |
Diluted (in shares) | 82,071 | 78,746 | 80,320 | 77,981 |
Net income (loss) | $ 756 | $ (2,967) | $ (18,297) | $ (34,609) |
Foreign currency translation adjustment | 796 | (510) | 69 | (1,576) |
Unrealized gain (loss) on investments, net of tax | 149 | 54 | 59 | (85) |
Comprehensive income (loss) | $ 1,701 | $ (3,423) | $ (18,169) | $ (36,270) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows From Operating Activities | ||
Net loss | $ (18,297) | $ (34,609) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 13,644 | 14,864 |
Share-based compensation | 9,446 | 10,504 |
Amortization of debt issuance costs | 1,279 | 1,114 |
Amortization and accretion of discount and premium on investments | 731 | 732 |
Accretion of interest on debt | 5,155 | 5,377 |
Recovery of (provision for) bad debt, net | 162 | (71) |
Provision for write-down of inventories | 1,472 | 1,127 |
Loss on disposal of property and equipment | 11 | 16 |
Loss on extinguishment of debt | 965 | |
Changes in assets and liabilities: | ||
Restricted cash | 2,475 | (1,560) |
Accounts receivable | (10,294) | 7,446 |
Inventories | (11,335) | (24,540) |
Prepaid expenses and other assets | (3,997) | 3,137 |
Deferred cost of revenue | (1,941) | 5,619 |
Accounts payable | 8,724 | (1,214) |
Accrued liabilities | 1,289 | (8,054) |
Customer advances | 268 | 341 |
Deferred revenue | 13,808 | 7,168 |
Net cash provided by (used in) operating activities | 13,565 | (12,603) |
Cash Flows From Investing Activities | ||
Purchases of property and equipment, net | (5,885) | (5,925) |
Purchases of investments | (52,712) | (69,871) |
Sales and maturities of investments | 45,695 | 94,422 |
Net cash (used in) provided by investing activities | (12,902) | 18,626 |
Cash Flows From Financing Activities | ||
Proceeds from employee stock plans | 2,950 | 5,207 |
Taxes paid related to net share settlement of equity awards | (3,045) | (495) |
Payments made to note holders | (65,531) | |
Proceeds from debt, net of costs | 64,632 | |
Net cash (used in) provided by financing activities | (994) | 4,712 |
Effect of exchange rate changes on cash and cash equivalents | (65) | (7,632) |
Net (decrease) increase in cash and cash equivalents | (396) | 3,103 |
Cash and cash equivalents at beginning of period | 79,551 | 92,346 |
Cash and cash equivalents at end of period | $ 79,155 | $ 95,449 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2016 | |
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 and has its principal place of business in Sunnyvale, California. The Company designs, develops and sells advanced radiosurgery and radiation therapy systems for the treatment of tumors throughout the body. The Company has offices in the United States, Switzerland, China, Hong Kong and Japan and conducts its business 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 nine months ended March 31, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2016, or for any other future interim period or fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the fiscal year ended June 30, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 28, 2015. The Company’s significant accounting policies are described in Note 2 to those audited consolidated financial statements and there have been no material changes to such policies. We reclassified the debt issuance costs from other assets in the prior year’s condensed consolidated balance sheet to long-term debt to conform to the current quarter presentation upon the adoption of ASU No. 2015-03 as discussed below. Recent Accounting Standard Update Not Yet Effective In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation-Stock Compensation (Topic 718) . The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this standard are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the pending adoption of this guidance on its condensed consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. This ASU requires additional disclosures. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The ASU requires adoption based upon a modified retrospective transition approach. Early adoption is permitted. The Company has not yet selected a transition method, has not yet determined whether it will elect early adoption and is currently evaluating the impact of the pending adoption of this ASU on its condensed consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgments and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. On July 9, 2015, FASB approved a one-year deferral of the effective period for ASU 2014-09. The standard will be effective for the Company for the first quarter of fiscal 2019, but entities will be permitted to early adopt the standard as of the original effective date, which would be the first quarter of fiscal 2018 for the Company. The Company may adopt 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 within ASU 2014-09. The Company has not yet selected a transition method, has not yet determined whether it will elect early adoption and is currently evaluating the impact of the pending adoption of ASU 2014-09 on its condensed consolidated financial statements and related disclosures. Accounting Standard Update Recently Adopted In April 2015, FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. We adopted ASU 2015-03 in our fiscal third quarter, an amended standard simplifying the presentation of debt issuance costs as a direct deduction from the carrying value of the debt liability rather than showing the debt issuance costs as an asset. This ASU is effective for fiscal years beginning after December 2015, which would be effective the first quarter of fiscal 2017 for the Company. Early adoption is permitted under this ASU. Accordingly, we have applied the amendment retrospectively to the comparable period presented and it did not have a significant impact on our financial statements. 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 does not believe that it is exposed to any significant risk of loss on these balances. For the three and nine months ended March 31, 2016 and 2015, there were no customers that represented 10% or more of total net revenue. No customer accounted for more than 10% of the Company’s total accounts receivable as of March 31, 2016. One customer accounted for 18% of the Company’s total accounts receivable as of June 30, 2015. 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 receivable balances 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 revenues net of any value added or sales tax. For arrangements with multiple elements, the Company allocates arrangement fees to products 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 systems with post-contract customer support (“PCS”), installation services, training and professional services. PCS includes 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 Income (Loss) Per Common Share Basic and diluted net income (loss) per share is computed by dividing net income (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 income (loss) per share follows (in thousands): Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Numerator: Net income (loss) used to compute basic and diluted net income (loss) per share $ $ ) $ ) $ ) Denominator: Weighted average shares used to compute basic income (loss) per share Weighted average effect of dilutive stock options — — — Weighted average effect of dilutive RSUs, PSUs and MSUs — — — Weighted average effect of 3.50% Series A convertible debt — — — Weighted average shares used to compute diluted net income (loss) per share The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the vesting of 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 months ended March 31, 2016, the potentially dilutive shares issuable upon the conversion of the 3.50% Series A Convertible Notes were included in the calculation of the diluted net income per share, while the dilutive shares issuable upon the conversion of the 3.50% Convertible Notes were excluded from the calculation of diluted net income per share as their inclusion would have been anti-dilutive. For the three months ended March 31, 2015, 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 March 31, 2016 2015 Stock options RSUs, PSUs and MSUs 3.50% Convertible Notes 3.50% Series A Convertible Notes — 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 the 3.50% Series A Convertible Notes, totaling approximately 3.9 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 March 31, 2016 and 2015, respectively. The 0.5 million potentially dilutive shares of the 3.50% Series A Convertible Notes as of March 31, 2015 included in the table above represent the premium over the principal amount due to the higher average share price above the conversion 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 Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Americas $ $ $ $ Europe, Middle East, India and Africa Asia-Pacific Japan Total $ $ $ $ Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands): March 31, June 30, 2016 2015 Americas $ $ Europe, Middle East, India and Africa Asia-Pacific Japan Total $ $ |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Mar. 31, 2016 | |
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 and capital leases, totaled $7.3 million and $1.6 million at March 31, 2016 and June 30, 2015, respectively, and are included in Other Assets in the condensed consolidated balance sheets. Of the $7.3 million in financing receivables at March 31, 2016, $3.7 million related to capital leases with customers while the remaining $3.6 million related to contractual maturities of more than one year. At June 30, 2015, the $1.6 million related to contractual maturities of more than one year with no capital leases. Due to the homogenous nature of the leasing transactions, the Company manages them on an aggregate basis when assessing and monitoring credit risk. The Company evaluates the credit quality of an obligor at lease inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new customers and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. Accounts rated as low risk typically have the equivalent of a Moody’s rating of Baa3 or higher, while accounts rated as moderate risk generally have the equivalent of a Ba1 or lower. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of payments. As of March 31, 2016, the capital lease portion of the financing receivables was rated at a moderate risk. There was no allowance for doubtful accounts related to such financing receivables as of March 31, 2016 and June 30, 2015, respectively. Inventories Inventories consisted of the following (in thousands): March 31, June 30, 2016 2015 Raw materials $ $ Work-in-process Finished goods Inventories $ $ Property and equipment, net Property and equipment, net consisted of the following (in thousands): March 31, June 30, 2016 2015 Furniture and fixtures $ $ Computer and office equipment Software Leasehold improvements Machinery and equipment Construction in progress Less: Accumulated depreciation ) ) Property and equipment, net $ $ Depreciation expense related to property and equipment for the three and nine months ended March 31, 2016 was $2.6 million and $7.7 million, respectively. Depreciation expense related to property and equipment for the three and nine months ended March 31, 2015 was $2.9 million and $8.9 million, respectively . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Goodwill Activity related to goodwill consisted of the following (in thousands): Nine Months Year Ended Ended March 31, June 30, 2016 2015 Balance at the beginning of the period $ $ Currency translation ) ) Balance at the end of the period $ $ In the second quarter of fiscal 2016, 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. Intangible Assets The Company’s unamortized intangible assets associated with completed acquisitions at March 31, 2016 and June 30, 2015 are as follows (in thousands): March 31, 2016 June 30, 2015 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Useful Lives Amount Amortization Amount Amount Amortization Amount (in years) Developed technology 5 — 6 $ $ ) $ $ $ ) $ The Company did not identify any triggering events that would indicate potential impairment of its definite-lived intangible and long-lived assets as of March 31, 2016 and June 30, 2015. Amortization expense related to intangible assets for the three and nine months ended March 31, 2016 and 2015 was $2.0 million and $6.0 million, respectively. The estimated future amortization expense of purchased intangible assets as of March 31, 2016 is as follows (in thousands): Year Ending June 30, Amount 2016 (remaining 3 months) $ 2017 2018 $ |
Financial Instruments
Financial Instruments | 9 Months Ended |
Mar. 31, 2016 | |
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 management intends 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 require the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. 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): March 31, 2016 Estimated Market Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Cash and Cash Equivalents Short-term Investments Cash $ $ — $ — $ $ — Level 1 Money market funds — — — — — — Level 2 Commercial paper — — U.S. agency securities — ) — U.S. treasury bills — — — Corporate notes — ) — — ) — Total $ $ — $ ) $ $ June 30, 2015 Estimated Market Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Cash and Cash Equivalents Short-term Investments Cash $ $ — $ — $ $ — Level 1 Money market funds — — — — — — Level 2 Commercial paper — — — U.S. Agency securities ) — Non-U.S. government securities — ) — Corporate notes — ) — ) — Total $ $ $ ) $ $ Certain investments in the table above are classified as having Level 2 inputs 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 March 31, 2016. 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 March 31, 2016, 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 nine months ended March 31, 2016. Contractual maturities of available-for-sale securities at March 31, 2016 were as follows (in thousands): March 31, 2016 Amortized Cost Fair Value Due in 1 year or less $ $ Due in 1-2 years $ $ The following table summarizes the carrying values and estimated fair values of our short-term and long-term debt (in thousands): March 31, 2016 June 30, 2015 Carrying Value Fair Value Carrying Value Fair Value 3.75% Convertible Notes $ $ $ $ 3.50% Convertible Notes 3.50% Series A Convertible Notes Secured Loan — — Total $ $ $ $ The short-term and 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 | 9 Months Ended |
Mar. 31, 2016 | |
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, 2015. There has been no material changes outside of the ordinary course of business in those obligations during the nine months ended March 31, 2016. 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, management does not believe that an adverse determination with respect to any of these claims would individually or in the aggregate materially and adversely affect the Company’s financial condition or operating results. For certain legal proceedings, management believes that there is a reasonable possibility that material losses may be incurred; however, the Company is unable to reasonably estimate a range of reasonably possible losses with respect to these matters. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company’s control. Should any of these estimates and assumptions change or prove to have been incorrect, the Company could incur significant charges related to legal matters that could have a material impact on its results of operations, financial position and cash flows. Rotary Systems On April 28, 2011, a former supplier to TomoTherapy, Rotary Systems Incorporated (“Rotary Systems”), filed suit in Minnesota state court, Tenth Judicial District, Anoka County, against TomoTherapy alleging misappropriation of trade secrets, as well as several other counts alleging various theories of injury. Rotary Systems alleges TomoTherapy misappropriated Rotary Systems’ trade secrets pertaining to a component previously purchased from Rotary Systems, which 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. In late October 2015, a final scheduling order was confirmed for the remanded claims and the parties are currently in the process of conducting discovery. On April 19, 2016, the parties entered into a written settlement agreement resolving the lawsuit. A stipulation of dismissal dismissing all claim by all parties with prejudice is anticipated to be filed no later than May 25, 2016. 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 was seeking damages of approximately $170.0 million and injunctive relief. Accuray filed counterclaims for damages of approximately $35.0 million. Accuray’s answer and counterclaim were submitted to the ICC on May 12, 2014, and Cowealth served its reply on June 27, 2014. A hearing was held in Hong Kong between January 26, 2015 and February 6, 2015. The parties filed closing submissions and reply closing submissions in March 2015. On October 29, 2015, the ICC ruled that Accuray was liable for certain damages and awarded Cowealth approximately $3.4 million. On November 27, 2015, Cowealth applied for a correction to the award to revise the amount of damages upwards to approximately $5.5 million. On January 21, 2016, the arbitrator granted Cowealth’s application for a correction on the grounds that the original award amount was a clerical error on the part of the arbitrator. Interest on the final award amount will accrue at a rate of 5% per annum starting 30 days after the date the corrected award was issued until payment. Accordingly, management recorded a charge of $3.4 million for the first fiscal quarter ending September 30, 2015, and an additional $2.1 million for the second fiscal quarter ending December 30, 2015. The parties filed cost submissions and reply cost submissions in December 2015. The ICC released the final award on February 12, 2016, which dealt with the parties’ claims for costs of the arbitration. Under the final award, the arbitrator awarded costs to Cowealth at a net amount of $2.4 million and rejected all other claims and requests. Prior to the ruling of the ICC, no accrual was established in the Company’s consolidated financial statements because management did not believe the likelihood of an award of damages or costs of arbitration to Cowealth was probable or estimable. In addition, the Company won several of its counterclaims including the right to be assigned the existing service contracts between Cowealth and Accuray customers, transfer to Accuray any regulatory clearances, licenses or permits obtained and held for the purposes of selling the CyberKnife System in China and deliver any consigned parts in their possession. 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 March 31, 2016. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, Nine Months Ended March 31, 2016 2015 2016 2015 Cost of revenue $ $ $ $ Research and development Selling and marketing General and administrative $ $ $ $ |
Debt
Debt | 9 Months Ended |
Mar. 31, 2016 | |
Debt | |
Debt | 7. Debt First Lien Senior Secured Term Loan due January 2021 (Secured Loan) On January 11, 2016, the Company closed a $70.0 million first lien senior secured debt financing agreement with Cerberus Business Finance, LLC, an affiliate of Cerberus Capital Management, L.P (the “Secured Loan”). The proceeds of the loan are to be used to retire the 3.75% Convertible Notes at the earlier of August 2016 or when otherwise redeemed. The Secured Loan bears interest at a variable rate per annum equal to, at the Company’s option, (i) the LIBOR Rate for one month plus an applicable margin of 7.00% (subject to a LIBOR Rate floor of 1.00% per annum), or (ii) a Reference Rate, which is the higher of 1) 3.25%, 2) Federal Funds Rate plus 0.5%, 3) the LIBOR rate for 1 month plus 1%, and 4) the US Prime Rate as published in the Wall Street Journal, plus an applicable margin of 4.75% per annum. The loan is repayable in consecutive quarterly installments of $875,000 with the final payment due on the Final Maturity Date. The Secured Loan matures on the earlier of: (i) January 11, 2021 and (ii) the date that is 120 days prior to the scheduled maturity date of the 3.5% Convertible Notes maturing February 1, 2018 unless the Company has set aside specifically identifiable funds raised from new common equity or new debt equal to the then-outstanding principal amount of the 3.5% Convertible Notes. The net proceeds from the offering, after deducting the initial purchaser’s discount and commission and the related offering costs, were approximately $65.5 million. The offering costs of $3.1 million and the initial purchaser’s discount and commission of $1.4 million (both of which are recorded in Long-term Debt) are being amortized to interest expense using the effective interest method over five years. The Secured Loan is secured by first-priority liens on substantially all the assets of the Company . The covenants in the Secured Loan include: · Secured leverage —defines the maximum amount of secured leverage that can be on the Company’s books at a given point in time calculated by the total secured debt divided by the last twelve months’ adjusted EBITDA; · Total leverage —defines the maximum amount of total leverage that can be on the Company’s books at a given point in time calculated by the total debt divided by the last twelve months’ adjusted EBITDA; · Fixed Charge Coverage Ratio — designed to ensure that the Company’s cash fixed charges are met with adequate free cash flow based on a minimum coverage ratio to be set and maintained; · Minimum EBITDA — defines the minimum amount of adjusted EBITDA the Company must maintain and generate; · Maximum CapEx — defines how much cash the Company can use annually to pursue capital projects, purchase PP&E and other related activities during the life of the loan; and · Affirmative and negative covenants — defines reporting requirements, subsidiary asset restrictions, dividend distribution and repayment requirements among other general requirements. The Company may, at its election, repay the Secured Loan at any time and if so, the Company will be required to pay a prepayment premium of 2% if the Secured Loan is repaid or accelerated within the first year on the amount repaid and 1% if the Secured Loan is repaid or accelerated within the second year on the amount repaid. 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 (the “Securities Act”), 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 Long-term Debt) 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. A portion of these notes were redeemed in January 2016, as discussed further below. 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, is subject to adjustment as further described below. Holders of the 3.75% Convertible Notes who convert their 3.75% Convertible Notes in connection with a “make-whole fundamental change,” as defined in the Indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, in the event of a “fundamental change,” as defined in the Indenture, holders of the 3.75% Convertible Notes may require the Company to purchase all or a portion of their 3.75% Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of 3.75% Convertible Notes, plus accrued and unpaid interest, if any, to, but not including, the fundamental change repurchase date. Prior to the maturity date, the Company may redeem for cash all or a portion of the 3.75% Convertible Notes if the closing sale price of its common stock exceeds 130% of the applicable conversion price (the initial conversion price is approximately $9.47 per share of common stock) of such 3.75% Convertible Notes for at least 20 trading days during any consecutive 30 trading-day period (including the last trading day of such period). In accordance with ASC 470-20, 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. In January 2016, the Company repurchased approximately $63.4 million in aggregate principal amount of its 3.75% Convertible Senior Notes due August 2016 for $66.6 million in cash. As $63.4 million of the 3.75% Convertible Senior Notes were settled in cash, a total of 6.7 million potentially dilutive shares are no longer potentially outstanding from an EPS perspective, these shares were already noted in Note 1 above as being excluded due to being anti-dilutive in the current fiscal quarter of 2016. Following such transactions, approximately $44.7 million aggregate principal amount of the 3.50% Convertible Notes, approximately $36.6 million aggregate principal amount of the 3.75% Convertible Notes and approximately $70.3 million of the 3.50% Series A Convertible Notes remained outstanding. The Company recorded a charge in the third quarter of fiscal 2016 of approximately $1.0 million associated with the repurchase of the notes. 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 Long-term Debt) 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 condensed consolidated balance sheet as of March 31, 2016. 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, is 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 and notes issued pursuant to the Secured Loan (collectively, “Notes”) as of March 31, 2016 (in thousands): Secured Loan 3.75% Convertible Notes 3.50% Convertible Notes 3.50% Series A Convertible Notes Total Carrying amount of the equity conversion component $ — $ $ — $ $ Principal amount of the Notes $ $ $ $ $ Unamortized debt costs ) ) ) — ) Unamortized debt discount ) ) — ) ) Net carrying amount $ $ $ $ $ A summary of interest expense on the Notes is as follows (in thousands): Three months ended March 31, Nine months ended March 31, 2016 2015 2016 2015 Interest expense related to contractual interest coupon $ $ $ $ Interest expense related to amortization of debt discount Interest expense related to amortization of debt issuance costs $ $ $ $ |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | 8. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss consist of net loss, unrealized gains and losses on available-for-sale investments, changes in foreign currency exchange rate translation and net changes related to defined benefit pension plan. These components 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 loss in the equity section of the balance sheets are as follows (in thousands): March 31, June 30, 2016 2015 Net unrealized gain (loss) on short-term investments $ $ ) Cumulative foreign currency translation adjustment ) Defined benefit pension obligation ) ) Accumulated other comprehensive loss $ ) $ ) |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
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 nine months ended March 31, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2016, or for any other future interim period or fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the fiscal year ended June 30, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 28, 2015. The Company’s significant accounting policies are described in Note 2 to those audited consolidated financial statements and there have been no material changes to such policies. We reclassified the debt issuance costs from other assets in the prior year’s condensed consolidated balance sheet to long-term debt to conform to the current quarter presentation upon the adoption of ASU No. 2015-03 as discussed below. |
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 does not believe that it is exposed to any significant risk of loss on these balances. For the three and nine months ended March 31, 2016 and 2015, there were no customers that represented 10% or more of total net revenue. No customer accounted for more than 10% of the Company’s total accounts receivable as of March 31, 2016. One customer accounted for 18% of the Company’s total accounts receivable as of June 30, 2015. 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 receivable balances 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 revenues net of any value added or sales tax. For arrangements with multiple elements, the Company allocates arrangement fees to products 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 systems with post-contract customer support (“PCS”), installation services, training and professional services. PCS includes 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 Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic and diluted net income (loss) per share is computed by dividing net income (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 income (loss) per share follows (in thousands): Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Numerator: Net income (loss) used to compute basic and diluted net income (loss) per share $ $ ) $ ) $ ) Denominator: Weighted average shares used to compute basic income (loss) per share Weighted average effect of dilutive stock options — — — Weighted average effect of dilutive RSUs, PSUs and MSUs — — — Weighted average effect of 3.50% Series A convertible debt — — — Weighted average shares used to compute diluted net income (loss) per share The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the vesting of 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 months ended March 31, 2016, the potentially dilutive shares issuable upon the conversion of the 3.50% Series A Convertible Notes were included in the calculation of the diluted net income per share, while the dilutive shares issuable upon the conversion of the 3.50% Convertible Notes were excluded from the calculation of diluted net income per share as their inclusion would have been anti-dilutive. For the three months ended March 31, 2015, 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 March 31, 2016 2015 Stock options RSUs, PSUs and MSUs 3.50% Convertible Notes 3.50% Series A Convertible Notes — |
Outstanding Convertible 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 the 3.50% Series A Convertible Notes, totaling approximately 3.9 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 March 31, 2016 and 2015, respectively. The 0.5 million potentially dilutive shares of the 3.50% Series A Convertible Notes as of March 31, 2015 included in the table above represent the premium over the principal amount due to the higher average share price above the conversion 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 Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Americas $ $ $ $ Europe, Middle East, India and Africa Asia-Pacific Japan Total $ $ $ $ Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands): March 31, June 30, 2016 2015 Americas $ $ Europe, Middle East, India and Africa Asia-Pacific Japan Total $ $ |
Recent Accounting Standard Update Not Yet Effective | |
Accounting Standard Updates | Recent Accounting Standard Update Not Yet Effective In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation-Stock Compensation (Topic 718) . The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this standard are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the pending adoption of this guidance on its condensed consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. This ASU requires additional disclosures. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The ASU requires adoption based upon a modified retrospective transition approach. Early adoption is permitted. The Company has not yet selected a transition method, has not yet determined whether it will elect early adoption and is currently evaluating the impact of the pending adoption of this ASU on its condensed consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgments and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. On July 9, 2015, FASB approved a one-year deferral of the effective period for ASU 2014-09. The standard will be effective for the Company for the first quarter of fiscal 2019, but entities will be permitted to early adopt the standard as of the original effective date, which would be the first quarter of fiscal 2018 for the Company. The Company may adopt 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 within ASU 2014-09. The Company has not yet selected a transition method, has not yet determined whether it will elect early adoption and is currently evaluating the impact of the pending adoption of ASU 2014-09 on its condensed consolidated financial statements and related disclosures. |
Accounting Standard Update Recently Adopted | |
Accounting Standard Updates | Accounting Standard Update Recently Adopted In April 2015, FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. We adopted ASU 2015-03 in our fiscal third quarter, an amended standard simplifying the presentation of debt issuance costs as a direct deduction from the carrying value of the debt liability rather than showing the debt issuance costs as an asset. This ASU is effective for fiscal years beginning after December 2015, which would be effective the first quarter of fiscal 2017 for the Company. Early adoption is permitted under this ASU. Accordingly, we have applied the amendment retrospectively to the comparable period presented and it did not have a significant impact on our financial statements. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 income (loss) per share follows (in thousands): Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Numerator: Net income (loss) used to compute basic and diluted net income (loss) per share $ $ ) $ ) $ ) Denominator: Weighted average shares used to compute basic income (loss) per share Weighted average effect of dilutive stock options — — — Weighted average effect of dilutive RSUs, PSUs and MSUs — — — Weighted average effect of 3.50% Series A convertible debt — — — Weighted average shares used to compute diluted net income (loss) per share |
Schedule of all potentially dilutive securities excluded from the computation of net loss per share | The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands): As of March 31, 2016 2015 Stock options RSUs, PSUs and MSUs 3.50% Convertible Notes 3.50% Series A Convertible Notes — |
Summary of revenue by geographic region | The following summarizes revenue by geographic region (in thousands): Three Months Ended Nine Months Ended March 31, March 31, 2016 2015 2016 2015 Americas $ $ $ $ Europe, Middle East, India and Africa Asia-Pacific Japan Total $ $ $ $ |
Schedule of geographic areas in which the Company has long lived tangible assets | Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands): March 31, June 30, 2016 2015 Americas $ $ Europe, Middle East, India and Africa Asia-Pacific Japan Total $ $ |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Components | |
Schedule of inventories | Inventories consisted of the following (in thousands): March 31, June 30, 2016 2015 Raw materials $ $ Work-in-process Finished goods Inventories $ $ |
Schedule of property and equipment, net | Property and equipment, net consisted of the following (in thousands): March 31, June 30, 2016 2015 Furniture and fixtures $ $ Computer and office equipment Software Leasehold improvements Machinery and equipment Construction in progress Less: Accumulated depreciation ) ) Property and equipment, net $ $ |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets | |
Schedule of goodwill | Activity related to goodwill consisted of the following (in thousands): Nine Months Year Ended Ended March 31, June 30, 2016 2015 Balance at the beginning of the period $ $ Currency translation ) ) Balance at the end of the period $ $ |
Schedule of intangible assets associated with completed acquisitions | The Company’s unamortized intangible assets associated with completed acquisitions at March 31, 2016 and June 30, 2015 are as follows (in thousands): March 31, 2016 June 30, 2015 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Useful Lives Amount Amortization Amount Amount Amortization Amount (in years) Developed technology 5 — 6 $ $ ) $ $ $ ) $ |
Schedule of estimated future amortization expense of purchased intangible assets | The estimated future amortization expense of purchased intangible assets as of March 31, 2016 is as follows (in thousands): Year Ending June 30, Amount 2016 (remaining 3 months) $ 2017 2018 $ |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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): March 31, 2016 Estimated Market Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Cash and Cash Equivalents Short-term Investments Cash $ $ — $ — $ $ — Level 1 Money market funds — — — — — — Level 2 Commercial paper — — U.S. agency securities — ) — U.S. treasury bills — — — Corporate notes — ) — — ) — Total $ $ — $ ) $ $ June 30, 2015 Estimated Market Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Cash and Cash Equivalents Short-term Investments Cash $ $ — $ — $ $ — Level 1 Money market funds — — — — — — Level 2 Commercial paper — — — U.S. Agency securities ) — Non-U.S. government securities — ) — Corporate notes — ) — ) — Total $ $ $ ) $ $ |
Schedule of contractual maturities of available-for-sale securities | Contractual maturities of available-for-sale securities at March 31, 2016 were as follows (in thousands): March 31, 2016 Amortized Cost Fair Value Due in 1 year or less $ $ Due in 1-2 years $ $ |
Summary of carrying values and estimated fair values of short-term and long-term debt | The following table summarizes the carrying values and estimated fair values of our short-term and long-term debt (in thousands): March 31, 2016 June 30, 2015 Carrying Value Fair Value Carrying Value Fair Value 3.75% Convertible Notes $ $ $ $ 3.50% Convertible Notes 3.50% Series A Convertible Notes Secured Loan — — Total $ $ $ $ |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, Nine Months Ended March 31, 2016 2015 2016 2015 Cost of revenue $ $ $ $ Research and development Selling and marketing General and administrative $ $ $ $ |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Debt | |
Schedule of carrying value of Notes | The following table presents the carrying values of all Convertible Notes and notes issued pursuant to the Secured Loan (collectively, “Notes”) as of March 31, 2016 (in thousands): Secured Loan 3.75% Convertible Notes 3.50% Convertible Notes 3.50% Series A Convertible Notes Total Carrying amount of the equity conversion component $ — $ $ — $ $ Principal amount of the Notes $ $ $ $ $ Unamortized debt costs ) ) ) — ) Unamortized debt discount ) ) — ) ) Net carrying amount $ $ $ $ $ |
Summary of interest expense on Notes | A summary of interest expense on the Notes is as follows (in thousands): Three months ended March 31, Nine months ended March 31, 2016 2015 2016 2015 Interest expense related to contractual interest coupon $ $ $ $ Interest expense related to amortization of debt discount Interest expense related to amortization of debt issuance costs $ $ $ $ |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Loss | |
Schedule of accumulated other comprehensive loss in the equity section of the balance sheets | The components of accumulated other comprehensive loss in the equity section of the balance sheets are as follows (in thousands): March 31, June 30, 2016 2015 Net unrealized gain (loss) on short-term investments $ $ ) Cumulative foreign currency translation adjustment ) Defined benefit pension obligation ) ) Accumulated other comprehensive loss $ ) $ ) |
Summary of Significant Accoun22
Summary of Significant Accounting Policies Concentration Risk (Details) - Credit concentration risk - Major customers - customer | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2015 | |
Total accounts receivable | ||||
Concentration of Credit Risk and Other Risks and Uncertainties | ||||
Number of significant customers | 0 | |||
Percentage of concentration risk | 18.00% | |||
Total accounts receivable | Minimum | ||||
Concentration of Credit Risk and Other Risks and Uncertainties | ||||
Percentage of concentration risk | 10.00% | |||
Total net revenue | ||||
Concentration of Credit Risk and Other Risks and Uncertainties | ||||
Number of significant customers | 0 | 0 | ||
Total net revenue | Minimum | ||||
Concentration of Credit Risk and Other Risks and Uncertainties | ||||
Percentage of concentration risk | 10.00% | 10.00% |
Summary of Significant Accoun23
Summary of Significant Accounting Policies Securities (Details) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | Apr. 17, 2014 | Feb. 28, 2013 | Aug. 01, 2011 | |
Numerator: | |||||||||
Net income (loss) used to compute basic and diluted net income (loss) per share | $ 756 | $ (2,967) | $ (18,297) | $ (34,609) | |||||
Denominator: | |||||||||
Weighted average shares used to compute basic income (loss) per share | 80,860 | 78,746 | 80,320 | 77,981 | |||||
Weighted average shares used to compute diluted net income (loss) per share | 82,071 | 78,746 | 80,320 | 77,981 | |||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 13,917 | 21,447 | |||||||
3.75% Convertible Notes | |||||||||
Denominator: | |||||||||
Weighted average effect of convertible debt | 6,700 | ||||||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | ||||
Conversion shares outstanding principal amount excluded in the potentially diluted shares | 3,900 | ||||||||
3.50% Convertible Notes | |||||||||
Denominator: | |||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 8,378 | 8,378 | |||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||
3.50% Series A Convertible Notes | |||||||||
Denominator: | |||||||||
Weighted average effect of convertible debt | 500 | ||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 5,639 | ||||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||
Conversion shares outstanding principal amount excluded in the potentially diluted shares | 13,200 | ||||||||
Stock options | |||||||||
Denominator: | |||||||||
Weighted average effect of dilutive awards | 101 | ||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 1,981 | 2,645 | |||||||
RSUs, PSUs and MSUs | |||||||||
Denominator: | |||||||||
Weighted average effect of dilutive awards | 610 | ||||||||
Anti-dilutive securities excluded from the computation of diluted net loss per share (in shares) | 3,558 | 4,785 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | |
Segment Information | |||||
Number of operating segments | segment | 1 | ||||
Revenue | $ 105,284 | $ 97,515 | $ 303,827 | $ 278,051 | |
Long lived assets | 29,061 | 29,061 | $ 31,829 | ||
Americas | |||||
Segment Information | |||||
Revenue | 32,667 | 52,617 | 128,957 | 136,812 | |
Long lived assets | 25,124 | 25,124 | 28,182 | ||
Europe, Middle East, India and Africa | |||||
Segment Information | |||||
Revenue | 43,643 | 21,055 | 102,461 | 78,086 | |
Long lived assets | 652 | 652 | 929 | ||
Asia-Pacific | |||||
Segment Information | |||||
Revenue | 16,505 | 16,955 | 49,226 | 36,307 | |
Long lived assets | 1,140 | 1,140 | 455 | ||
Japan | |||||
Segment Information | |||||
Revenue | 12,469 | $ 6,888 | 23,183 | $ 26,846 | |
Long lived assets | $ 2,145 | $ 2,145 | $ 2,263 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Financing receivables | |||||
Financing receivables | $ 7,300 | $ 7,300 | $ 1,600 | ||
Capital leases | 3,700 | 3,700 | 0 | ||
Accounts receivable with contractual maturities of more than one year | 3,600 | 3,600 | 1,600 | ||
Allowance for doubtful accounts related to financing receivables | 0 | 0 | 0 | ||
Inventories | |||||
Raw materials | 50,570 | 50,570 | 46,356 | ||
Work-in-process | 20,445 | 20,445 | 15,445 | ||
Finished goods | 46,107 | 46,107 | 44,350 | ||
Total inventories | 117,122 | 117,122 | 106,151 | ||
Property and equipment, net | |||||
Property and equipment, gross | 104,599 | 104,599 | 102,206 | ||
Less: Accumulated depreciation | (75,538) | (75,538) | (70,377) | ||
Property and equipment, net | 29,061 | 29,061 | 31,829 | ||
Depreciation expense | 2,600 | $ 2,900 | 7,700 | $ 8,900 | |
Furniture and fixtures | |||||
Property and equipment, net | |||||
Property and equipment, gross | 4,924 | 4,924 | 4,674 | ||
Computer and office equipment | |||||
Property and equipment, net | |||||
Property and equipment, gross | 12,502 | 12,502 | 11,808 | ||
Software | |||||
Property and equipment, net | |||||
Property and equipment, gross | 11,055 | 11,055 | 10,992 | ||
Leasehold improvements | |||||
Property and equipment, net | |||||
Property and equipment, gross | 21,202 | 21,202 | 19,428 | ||
Machinery and equipment | |||||
Property and equipment, net | |||||
Property and equipment, gross | 50,677 | 50,677 | 47,031 | ||
Construction in progress | |||||
Property and equipment, net | |||||
Property and equipment, gross | $ 4,239 | $ 4,239 | $ 8,273 |
Goodwill and Intangible Asset26
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Changes in the carrying amount of goodwill | ||||||
Balance at the beginning of the period | $ 58,054 | $ 58,091 | $ 58,091 | |||
Currency translation | (118) | (37) | ||||
Balance at the end of the period | $ 57,936 | 57,936 | 58,054 | |||
Impairment of goodwill | $ 0 | |||||
Net Amount | 9,599 | 9,599 | ||||
Amortization expense | 2,000 | $ 2,000 | 6,000 | $ 6,000 | ||
Estimated future amortization expense of purchased intangible assets | ||||||
2016 (remaining 3 months) | 1,988 | 1,988 | ||||
2,017 | 7,568 | 7,568 | ||||
2,018 | 43 | 43 | ||||
Net Amount | 9,599 | 9,599 | ||||
Developed technology | ||||||
Changes in the carrying amount of goodwill | ||||||
Gross Carrying Amount | 46,744 | 46,744 | 46,700 | |||
Accumulated Amortization | (37,145) | (37,145) | (31,136) | |||
Net Amount | 9,599 | 9,599 | 15,564 | |||
Estimated future amortization expense of purchased intangible assets | ||||||
Net Amount | $ 9,599 | $ 9,599 | $ 15,564 | |||
Developed technology | Minimum | ||||||
Changes in the carrying amount of goodwill | ||||||
Useful Lives | 5 years | 5 years | ||||
Developed technology | Maximum | ||||||
Changes in the carrying amount of goodwill | ||||||
Useful Lives | 6 years | 6 years |
Financial Instruments Investmen
Financial Instruments Investment (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | |
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | $ 149,824 | $ 143,934 | ||
Gross Unrealized Gains | 6 | |||
Gross Unrealized Losses | (19) | (83) | ||
Available-for-sale Securities | 70,650 | |||
Cash and Cash Equivalents | 79,155 | 79,551 | $ 95,449 | $ 92,346 |
Short-term investments | 70,650 | 64,306 | ||
Other-than-temporary impairments associated with credit losses | 0 | |||
Amortized Cost | ||||
Due in 1 year or less | 46,469 | |||
Due in 1-2 years | 24,200 | |||
Total Amortized Cost | 70,669 | |||
Fair Value | ||||
Due in 1 year or less | 46,462 | |||
Due in 1-2 years | 24,188 | |||
Available-for-sale Securities | 70,650 | |||
Cash. | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 78,885 | 73,444 | ||
Cash and Cash Equivalents | 78,885 | 73,444 | ||
Level 1 | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 270 | 6,107 | ||
Cash and Cash Equivalents | 270 | 6,107 | ||
Level 1 | Money market funds | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 270 | 6,107 | ||
Cash and Cash Equivalents | 270 | 6,107 | ||
Level 2 | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 70,669 | 64,383 | ||
Gross Unrealized Gains | 6 | |||
Gross Unrealized Losses | (19) | (83) | ||
Short-term investments | 70,650 | 64,306 | ||
Level 2 | Commercial paper | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 11,435 | 11,989 | ||
Short-term investments | 11,435 | 11,989 | ||
Level 2 | U.S. agency securities | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 34,000 | 21,999 | ||
Gross Unrealized Gains | 6 | |||
Gross Unrealized Losses | (13) | (14) | ||
Short-term investments | 33,987 | 21,991 | ||
Level 2 | U.S. treasury bills | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 3,994 | |||
Short-term investments | 3,994 | |||
Level 2 | Non-U.S. government securities | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 1,504 | |||
Gross Unrealized Losses | (3) | |||
Short-term investments | 1,501 | |||
Level 2 | Corporate notes | ||||
Cash, cash equivalents and short-term investments | ||||
Amortized Cost | 21,240 | 28,891 | ||
Gross Unrealized Losses | (6) | (66) | ||
Short-term investments | $ 21,234 | $ 28,825 |
Financial Instruments Short-Ter
Financial Instruments Short-Term and Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jan. 31, 2016 | Jun. 30, 2015 | Apr. 17, 2014 | Feb. 28, 2013 | Aug. 01, 2011 |
3.75% Convertible Notes | ||||||
Fair value measurement | ||||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | 3.75% | ||
3.50% Convertible Notes | ||||||
Fair value measurement | ||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | ||
3.50% Series A Convertible Notes | ||||||
Fair value measurement | ||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | ||
Non-recurring basis | Carrying Value | ||||||
Fair value measurement | ||||||
Long term debt | $ 209,673 | $ 199,655 | ||||
Non-recurring basis | Carrying Value | 3.75% Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 35,778 | 92,863 | ||||
Non-recurring basis | Carrying Value | 3.50% Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 42,976 | 42,332 | ||||
Non-recurring basis | Carrying Value | 3.50% Series A Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 66,062 | 64,460 | ||||
Non-recurring basis | Carrying Value | Secured Loan | ||||||
Fair value measurement | ||||||
Long term debt | 64,857 | |||||
Non-recurring basis | Fair Value | ||||||
Fair value measurement | ||||||
Long term debt | 250,801 | 270,635 | ||||
Non-recurring basis | Fair Value | 3.75% Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 36,145 | 102,645 | ||||
Non-recurring basis | Fair Value | 3.50% Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 58,166 | 65,230 | ||||
Non-recurring basis | Fair Value | 3.50% Series A Convertible Notes | ||||||
Fair value measurement | ||||||
Long term debt | 91,633 | $ 102,760 | ||||
Non-recurring basis | Fair Value | Secured Loan | ||||||
Fair value measurement | ||||||
Long term debt | $ 64,857 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Feb. 12, 2016 | Jan. 21, 2016 | Nov. 27, 2015 | Oct. 29, 2015 | Feb. 27, 2014 | May. 21, 2012 | Apr. 28, 2011 | Dec. 31, 2015 | Sep. 30, 2015 | Feb. 11, 2016 |
Rotary Systems | ||||||||||
Contingencies | ||||||||||
Period to identify alleged trade secrets with specificity or face dismissal of claim with prejudice | 60 days | |||||||||
Rotary Systems | Minimum | ||||||||||
Contingencies | ||||||||||
Claim for damages | $ 50,000 | |||||||||
Cowealth Medical | ||||||||||
Contingencies | ||||||||||
Claim for damages | $ 170,000,000 | |||||||||
Awarded value for the damages | $ 2,400,000 | $ 3,400,000 | ||||||||
Percentage of interest on awarded amount | 5.00% | |||||||||
Period for interest not accrued after date of award | 30 days | |||||||||
Recorded charge for awarded amount | $ 2,100,000 | $ 3,400,000 | ||||||||
Additional amount recorded | $ 5,500,000 | |||||||||
Accrual amount of litigation | $ 0 | |||||||||
Cowealth Medical | Parent Company | ||||||||||
Contingencies | ||||||||||
Counterclaim for damages filed by the company | $ 35,000,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based compensation charges | ||||
Share-based compensation expense | $ 3,567 | $ 3,377 | $ 9,446 | $ 10,504 |
Cost of revenue | ||||
Share-based compensation charges | ||||
Share-based compensation expense | 448 | 456 | 1,270 | 1,411 |
Research and development | ||||
Share-based compensation charges | ||||
Share-based compensation expense | 717 | 658 | 1,888 | 2,356 |
Selling and marketing | ||||
Share-based compensation charges | ||||
Share-based compensation expense | 714 | 739 | 2,116 | 2,225 |
General and administrative | ||||
Share-based compensation charges | ||||
Share-based compensation expense | $ 1,688 | $ 1,524 | $ 4,172 | $ 4,512 |
Debt (Details)
Debt (Details) - USD ($) $ / shares in Units, shares in Thousands | Jan. 11, 2016 | Apr. 17, 2014 | Aug. 01, 2011 | Jan. 31, 2016 | Apr. 30, 2014 | Feb. 28, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 |
Debt | |||||||||||
Net carrying amount | $ 209,673,000 | $ 209,673,000 | |||||||||
Carrying amount of the equity conversion component | 27,514,000 | 27,514,000 | |||||||||
Principal amount of the Notes | 220,733,000 | 220,733,000 | |||||||||
Unamortized debt costs | (4,720,000) | (4,720,000) | |||||||||
Unamortized debt discount | (6,340,000) | (6,340,000) | |||||||||
Interest expense related to contractual interest coupon | 2,677,000 | $ 1,944,000 | 6,612,000 | $ 5,832,000 | |||||||
Interest expense related to amortization of debt discount | 1,285,000 | 1,837,000 | 5,155,000 | 5,377,000 | |||||||
Interest expense related to amortization of debt issuance costs | 508,000 | 383,000 | 1,279,000 | 1,114,000 | |||||||
Total interest expense recognized | 4,470,000 | $ 4,164,000 | 13,046,000 | $ 12,323,000 | |||||||
Secured Loan | |||||||||||
Debt | |||||||||||
Aggregate principal amount of debt issued | $ 70,000,000 | ||||||||||
Quarterly installment payment | 875,000 | ||||||||||
Proceeds from debt, net of costs | 65,500,000 | ||||||||||
Offering costs | 3,100,000 | ||||||||||
Initial purchaser's discount and commission | $ 1,400,000 | ||||||||||
Amortization period | 5 years | ||||||||||
EBITDA Monitoring Period | 12 months | ||||||||||
Prepayment premium if loan repaid or accelerated within the first year | 2.00% | ||||||||||
Prepayment premium if loan repaid or accelerated within the second year | 1.00% | ||||||||||
Net carrying amount | 64,857,000 | 64,857,000 | |||||||||
Principal amount of the Notes | 69,125,000 | 69,125,000 | |||||||||
Unamortized debt costs | (2,938,000) | (2,938,000) | |||||||||
Unamortized debt discount | (1,330,000) | $ (1,330,000) | |||||||||
Secured Loan | Option (ii) | |||||||||||
Debt | |||||||||||
Interest rate (as a percent) | 3.25% | ||||||||||
Secured Loan | Maximum | 3.50% Convertible Notes | |||||||||||
Debt | |||||||||||
Debt instrument maturity before reference instrument maturity date | 120 days | ||||||||||
Secured Loan | One month LIBOR | Option (i) | |||||||||||
Debt | |||||||||||
Margin on interest rate | 7.00% | ||||||||||
Secured Loan | One month LIBOR | Option (ii) | |||||||||||
Debt | |||||||||||
Margin on interest rate | 1.00% | ||||||||||
Secured Loan | LIBOR | Minimum | Option (i) | |||||||||||
Debt | |||||||||||
Interest rate (as a percent) | 1.00% | ||||||||||
Secured Loan | Federal Funds Rate | Option (ii) | |||||||||||
Debt | |||||||||||
Margin on interest rate | 0.50% | ||||||||||
Secured Loan | US Prime Rate | Option (ii) | |||||||||||
Debt | |||||||||||
Margin on interest rate | 4.75% | ||||||||||
3.75% Convertible Note and 3.50% Convertible Note | |||||||||||
Debt | |||||||||||
Charge associated with repurchase of notes | $ 1,000,000 | ||||||||||
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% | 3.75% | ||||||
Proceeds from debt, net of costs | $ 96,100,000 | ||||||||||
Amortization period | 5 years | ||||||||||
Debt issuance costs, amortization period | 5 years | ||||||||||
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 | ||||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | $ 1,000 | |||||||||
Number of working days preceding maturity date for delivery of shares or payment of cash | 33 days | ||||||||||
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares) | 105.5548 | ||||||||||
Conversion price (in dollars per share) | $ 9.47 | $ 9.47 | |||||||||
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 | ||||||||||
Net carrying amount | $ 75,900,000 | $ 35,778,000 | $ 35,778,000 | ||||||||
Discount rate on liability component (as a percent) | 10.00% | ||||||||||
Carrying amount of the equity conversion component | $ 24,100,000 | 19,670,000 | 19,670,000 | ||||||||
Debt issuance costs and discount allocated to equity conversion component | $ 900,000 | ||||||||||
Principal amount of the Notes retired | $ 63,400,000 | ||||||||||
Cash paid to Participating Holders in connection with debt refinancing | $ 66,600,000 | ||||||||||
Potentially dilutive shares outstanding | 6,700 | ||||||||||
Principal amount of the Notes | $ 36,600,000 | 36,608,000 | 36,608,000 | ||||||||
Unamortized debt costs | (104,000) | (104,000) | |||||||||
Unamortized debt discount | $ (726,000) | $ (726,000) | |||||||||
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% | 3.50% | 3.50% | ||||||
Proceeds from debt, net of costs | $ 110,500,000 | ||||||||||
Debt issuance costs, amortization period | 5 years | ||||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | $ 1,000 | |||||||||
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 | |||||||||
Repurchase price, as percentage of principal amount, if company undergoes change of control | 100.00% | ||||||||||
Net carrying amount | $ 42,976,000 | $ 42,976,000 | |||||||||
Principal amount of the Notes | $ 44,700,000 | 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 | ||||||||||
Unamortized debt costs | $ (1,678,000) | $ (1,678,000) | |||||||||
3.50% Series A Convertible Notes | |||||||||||
Debt | |||||||||||
Aggregate principal amount of debt issued | $ 70,300,000 | ||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||||
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 | ||||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | $ 1,000 | |||||||||
Number of working days preceding maturity date for delivery of shares or payment of cash | 17 days | ||||||||||
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 | |||||||||
Net carrying amount | $ 66,062,000 | $ 66,062,000 | |||||||||
Discount rate on liability component (as a percent) | 7.00% | ||||||||||
Carrying amount of the equity conversion component | $ 7,844,000 | $ 7,844,000 | |||||||||
Potentially dilutive shares outstanding | 500 | ||||||||||
Principal amount of the Notes | $ 70,300,000 | $ 70,346,000 | $ 70,346,000 | ||||||||
Payment to the convertible note holders to modify the notes | $ 400,000 | ||||||||||
Repurchase price, as a percentage of the principal amount, in the event of a fundamental change, as defined in Indenture | 100.00% | ||||||||||
Portion of cash amount paid allocated to debt discount | 400,000 | $ 400,000 | |||||||||
Portion of cash amount paid allocated to equity component | 47,000 | 47,000 | |||||||||
Unamortized debt discount | $ (4,284,000) | $ (4,284,000) | |||||||||
3.50% Series A 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 | ||||||||||
3.50% Series A 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% |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Accumulated Other Comprehensive Loss | ||
Net unrealized gain (loss) on short-term investments | $ 1,237 | $ (77) |
Cumulative foreign currency translation adjustment | (19) | 1,168 |
Defined benefit pension obligation | (1,517) | (1,517) |
Accumulated other comprehensive loss | $ (299) | $ (426) |