Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CSII | |
Entity Registrant Name | CARDIOVASCULAR SYSTEMS INC | |
Entity Central Index Key | 1,180,145 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,499,276 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Current assets | ||
Cash and cash equivalents | $ 76,651 | $ 83,842 |
Accounts receivable, net | 26,864 | 30,830 |
Inventories | 15,446 | 13,966 |
Marketable securities | 1,794 | 1,876 |
Prepaid expenses and other current assets | 2,603 | 3,380 |
Total current assets | 123,358 | 133,894 |
Property and equipment, net | 33,711 | 32,883 |
Patents, net | 4,787 | 4,511 |
Other assets | 534 | 40 |
Total assets | 162,390 | 171,328 |
Current liabilities | ||
Accounts payable | 9,815 | 9,763 |
Accrued expenses | 20,047 | 20,125 |
Total current liabilities | 29,862 | 29,888 |
Long-term liabilities | ||
Other liabilities | 1,916 | 2,005 |
Total liabilities | 31,778 | 31,893 |
Commitments and contingencies | 0 | 0 |
Common stock, $0.001 par value; authorized 100,000,000 common shares at September 30, 2015 and June 30, 2015; issued and outstanding 32,441,609 at September 30, 2015 and 31,898,124 at June 30, 2015, respectively | 32 | 32 |
Additional paid in capital | 415,236 | 410,700 |
Accumulated other comprehensive income (loss) | (9) | 90 |
Accumulated deficit | (284,647) | (271,387) |
Total stockholders’ equity | 130,612 | 139,435 |
Total liabilities and stockholders’ equity | $ 162,390 | $ 171,328 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,441,609 | 31,898,124 |
Common stock, shares outstanding | 32,441,609 | 31,898,124 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||
Net revenues | $ 43,871 | $ 41,354 |
Cost of goods sold | 8,771 | 8,885 |
Gross profit | 35,100 | 32,469 |
Expenses: | ||
Selling, general and administrative | 41,395 | 33,507 |
Research and development | 6,941 | 7,152 |
Total expenses | 48,336 | 40,659 |
Loss from operations | (13,236) | (8,190) |
Interest and other, net | (25) | (34) |
Net loss | $ (13,261) | $ (8,224) |
Net loss per common share: | ||
Basic and diluted (in usd per share) | $ (0.41) | $ (0.26) |
Weighted average common shares used in computation: | ||
Basic and diluted (in shares) | 32,210,874 | 31,311,110 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (13,261) | $ (8,224) |
Adjustments to reconcile net loss to net cash used in operations | ||
Depreciation of property and equipment | 887 | 367 |
Amortization and write-off of patents | 86 | 41 |
Provision for doubtful accounts | 175 | 696 |
Stock-based compensation | 4,107 | 3,573 |
Changes in assets and liabilities | ||
Accounts receivable | 3,791 | (1,689) |
Inventories | (1,480) | (1,754) |
Prepaid expenses and other assets | 1,043 | 717 |
Accounts payable | (18) | 1,417 |
Accrued expenses and other liabilities | (166) | 382 |
Net cash used in operating activities | (4,836) | (4,474) |
Cash flows from investing activities | ||
Expenditures for property and equipment | (1,847) | (2,981) |
Issuance of convertible note receivable | (350) | 0 |
Purchases of marketable securities | (17) | (2,084) |
Costs incurred in connection with patents | (160) | (113) |
Net cash used in investing activities | (2,374) | (5,178) |
Cash flows from financing activities | ||
Exercise of stock options and warrants | 19 | 683 |
Payments on debt | 0 | (1,200) |
Net cash provided by (used in) financing activities | 19 | (517) |
Net change in cash and cash equivalents | (7,191) | (10,169) |
Cash and cash equivalents | ||
Beginning of period | 83,842 | 126,592 |
End of period | 76,651 | 116,423 |
Noncash investing activities | ||
Property and equipment included in accounts payable | $ 0 | $ 3,327 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (13,261) | $ (8,224) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on available for sale securities | (99) | 14 |
Comprehensive loss | $ (13,360) | $ (8,210) |
Business Overview
Business Overview | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Business Overview | Business Overview Company Description Cardiovascular Systems, Inc. (the “Company”) was incorporated as Replidyne, Inc. (“Replidyne”) in Delaware in 2000. On February 25, 2009, Replidyne completed its business combination with Cardiovascular Systems, Inc., a Minnesota corporation, in accordance with the terms of the Agreement and Plan of Merger and Reorganization, dated as of November 3, 2008. At the effective time of the merger, Replidyne changed its name to Cardiovascular Systems, Inc. The Company develops, manufactures and markets devices for the treatment of vascular diseases. The Company’s peripheral arterial disease products, the Stealth 360°® Peripheral Orbital Atherectomy System (“OAS”), the Diamondback 360® Peripheral OAS, the Diamondback 360® 60cm Peripheral OAS access device and the Diamondback 360 4 French 1.25 Peripheral OAS access device, are catheter-based platforms capable of treating a broad range of plaque types, including calcified plaque, in leg arteries both above and below the knee and address many of the limitations associated with existing surgical, catheter and pharmacological treatment alternatives. These devices use smaller access sheaths that can provide procedural benefits and allow physicians to treat PAD patients in the small and tortuous vessels located below the knee through alternative access sites in the ankle and foot as well as in the groin. In October 2013, the Company received premarket approval from the U.S. Food and Drug Administration to market the Diamondback 360® Coronary OAS as a treatment for severely calcified coronary arteries. The Company is evaluating options for international expansion to maximize the coronary and peripheral market opportunities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Interim Financial Statements The Company prepared the unaudited interim consolidated financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. The year-end consolidated balance sheet was derived from the Company’s audited consolidated financial statements, but does not include all disclosures as required by GAAP. These interim consolidated financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to state fairly the Company’s consolidated financial position, the results of its operations and its cash flows for the interim periods. These interim consolidated financial statements should be read in conjunction with the consolidated annual financial statements and the notes thereto included in the Form 10-K filed by the Company with the SEC on August 27, 2015. The nature of the Company’s business is such that the results of any interim period may not be indicative of the results to be expected for the entire year. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Prior Year Revision During the fourth quarter of fiscal 2015, the Company evaluated the presentation of its accounts payable and accrued expenses line items on the consolidated balance sheet and determined that a reclassification of amounts from accounts payable to accrued expenses would provide a more meaningful presentation. There were no changes to total current liabilities and net cash used in operations as a result of these reclassifications. The Company reclassified $3,649 from accounts payable to accrued expenses as of September 30, 2014. In addition, the Company reclassified the changes in accounts payable and accrued expenses in the operating activities section of the consolidated statement of cash flows by $653 for the three months ended September 30, 2014. The Company has concluded that these reclassifications are not material. Stock-Based Compensation The Company has stock-based compensation plans, which include stock options, nonvested share awards, and an employee stock purchase plan. Fair value of option awards is determined using option-pricing models, fair value of nonvested share awards with market conditions is determined using the Monte Carlo simulation, and fair value of nonvested share awards that vest based upon performance or service conditions is determined by the closing market price of the Company's stock on the date of grant. Stock-based compensation expense is recognized ratably over the requisite service period for the awards expected to vest. Revenue Recognition The Company sells the majority of its products via direct shipment to hospitals or clinics. The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. The Company records estimated sales returns, discounts and rebates as a reduction of net sales. Costs related to products delivered are recognized in the period revenue is recognized. Cost of goods sold consists primarily of raw materials, direct labor, and manufacturing overhead. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue From Customers With Contracts.” The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 was initially to be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, using one of two prescribed retrospective methods. Early adoption was not to be permitted. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 by one year and allow early adoption for all entities but not before the original public entity effective date. The Company is evaluating the impact of the amended revenue recognition guidance on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” The guidance requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. The entity must also provide certain disclosures if there is substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company does not anticipate a material impact on its financial statements upon adoption. In April 2015, the FASB issued ASU No. 2015-05, “Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.” The ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. ASU 2015-05 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted and companies can elect to adopt the guidance prospectively to all arrangements entered into or materially modified after the effective date, or retrospectively. The Company does not anticipate a material impact on its financial statements upon adoption. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” The guidance requires an entity to measure inventory within the scope of the ASU at the lower of cost and net realizable value. ASU 2015-11 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and should be applied prospectively. Early adoption is permitted. The Company does not anticipate a material impact on its financial statements upon adoption. |
Selected Consolidated Financial
Selected Consolidated Financial Statement Information | 3 Months Ended |
Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Consolidated Financial Statement Information | Selected Consolidated Financial Statement Information Accounts Receivable, Net Accounts receivable consists of the following: September 30, June 30, 2015 2015 Accounts receivable $ 28,458 $ 32,267 Less: Allowance for doubtful accounts (1,594 ) (1,437 ) Total Accounts receivable $ 26,864 $ 30,830 Inventories, Net Inventories consist of the following: September 30, June 30, 2015 2015 Raw materials $ 7,480 $ 7,292 Work in process 1,222 1,108 Finished goods 6,744 5,566 Total Inventories $ 15,446 $ 13,966 Property and Equipment, Net Property and equipment consists of the following: September 30, June 30, 2015 2015 Land $ 500 $ 500 Building 22,541 22,468 Equipment 12,121 11,745 Furniture 2,616 2,581 Leasehold improvements 116 110 Construction in progress 2,443 1,218 40,337 38,622 Less: Accumulated depreciation (6,626 ) (5,739 ) Total Property and equipment, net $ 33,711 $ 32,883 Accrued Expenses Accrued expenses consist of the following: September 30, June 30, 2015 2015 Salaries and bonus $ 3,643 $ 3,961 Commissions 5,080 5,387 Vacation 3,849 3,770 Excise, sales and other taxes 3,342 3,217 Clinical studies 2,339 2,446 Other 1,794 1,344 Total Accrued expenses $ 20,047 $ 20,125 |
Deferred Compensation Plan
Deferred Compensation Plan | 3 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Deferred Compensation Plan | Deferred Compensation Plan The Company offers certain members of management and highly compensated employees the opportunity to defer up to 100% of their base salary (after 401(k), payroll tax and other deductions), performance bonus and discretionary bonus and elect to receive the deferred compensation at a fixed future date of participant’s choosing. Each participant may, at the time of his or her deferral election, choose to allocate the deferred compensation into investment alternatives set by the Human Resources and Compensation Committee. The amount payable to each participant under the plan will change in value based upon the investment selected by that participant and is classified as current or long-term on the Company's balance sheet based on the disbursement elections made by the participants. As of September 30, 2015 , the amount payable is all classified as long-term and is included in other liabilities on the consolidated balance sheet. Beginning in August 2014, the Company acquired available-for-sale marketable securities under the deferred compensation plan. These available-for-sale marketable securities are primarily comprised of investments with a fixed income and equity investments. Investments consisted of the following: As of September 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 1,803 $ — $ (9 ) $ 1,794 Total short-term investments $ 1,803 $ — $ (9 ) $ 1,794 As of June 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 1,786 $ 90 $ — $ 1,876 Total short-term investments $ 1,786 $ 90 $ — $ 1,876 During the three months ended September 30, 2015 and 2014 , there were $17 and $2,084 , respectively, in purchases of available-for-sale securities. There were no sales or other-than-temporary impairments during the three months ended September 30, 2015 and 2014 . The following table provides information by level for the Company's available-for-sale marketable securities that were measured at fair value on a recurring basis: Fair Value Measurements as of September 30, 2015 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 1,794 $ 1,188 $ 606 $ — Total short-term investments $ 1,794 $ 1,188 $ 606 $ — Fair Value Measurements as of June 30, 2015 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 1,876 $ 1,275 $ 601 $ — Total short-term investments $ 1,876 $ 1,275 $ 601 $ — The Company's marketable securities classified within Level 1 are valued primarily using real-time quotes for transactions in active exchange markets. Marketable securities within Level 2 are valued using readily available pricing sources. There were no transfers of assets between Level 1 and Level 2 of the fair value measurement hierarchy during the three months ended September 30, 2015 . Any transfers between levels would be recognized on the date of the event or when a change in circumstances causes a transfer. |
Stock Options and Restricted St
Stock Options and Restricted Stock Awards | 3 Months Ended |
Sep. 30, 2015 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Stock Options and Restricted Stock Awards | Stock Options and Restricted Stock Awards The Company maintains the 2014 Equity Incentive Plan (the “2014 Plan”) for the purpose of granting equity awards to employees, directors and consultants. The 2014 Plan was approved by the Company's stockholders and became effective in November 2014. The 2014 Plan was amended in May 2015. The 2014 Plan replaced the 2007 Equity Incentive Plan (the “2007 Plan”), and no further equity awards may be granted under the 2007 Plan. The Company also maintains two other terminated plans, the 1991 Stock Option Plan (the “1991 Plan”) and 2003 Stock Option Plan (the “2003 Plan”) (the 2014 Plan, the 2007 Plan, the 2003 Plan and the 1991 Plan are collectively referred to as the “Plans”). Stock Options All options granted under the Plans become exercisable over periods established at the date of grant. The option exercise price is generally not less than the estimated fair market value of the Company’s common stock at the date of grant, as determined by the Company’s management and Board of Directors. In addition, the Company has granted nonqualified stock options to a director outside of the Plans. An employee's vested options must be exercised at or within 90 days of termination to avoid forfeiture. As of September 30, 2015 , all outstanding options were fully vested. Stock option activity for the three months ended September 30, 2015 is as follows: Number of Options (a) Weighted Average Exercise Price Options outstanding at June 30, 2015 699,872 $ 10.32 Options exercised (2,500 ) $ 7.90 Options outstanding at September 30, 2015 697,372 $ 10.33 (a) Includes the effect of options granted, exercised, forfeited or expired from the 2003 Plan and 2007 Plan, and options granted outside such plans. Restricted Stock The fair value of each restricted stock award is equal to the fair market value of the Company’s common stock at the date of grant. Vesting of restricted stock awards generally ranges from one to three years . The estimated fair value of restricted stock awards, including the effect of estimated forfeitures, is recognized on a straight-line basis over the restricted stock’s vesting period. On August 10, 2015, the Company granted performance based restricted stock awards to its executives and management. The performance based awards included grants of a maximum aggregate of 156,509 shares that vest based upon achievement of certain thresholds measuring total shareholder return during periods within fiscal 2016 compared to a pre-determined peer group of companies, and grants of a maximum aggregate of 156,520 shares that vest based upon achievement of certain thresholds measuring annual revenue growth during fiscal 2016 compared to a pre-determined peer group of companies. Management adjusts expense as required based on expected revenue growth performance for those awards. Restricted stock award activity for the three months ended September 30, 2015 is as follows: Number of Shares Weighted Average Fair Value Restricted stock awards outstanding at June 30, 2015 995,323 $ 21.31 Restricted stock awards granted (1) 619,999 $ 23.60 Restricted stock awards forfeited (84,512 ) $ 28.08 Restricted stock awards vested (343,943 ) $ 22.09 Restricted stock awards outstanding at September 30, 2015 1,186,867 $ 25.57 (1) Includes both time-based and performance-based restricted stock awards. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitment and Contingencies Operating Leases The Company leases manufacturing and office space and equipment under various lease agreements that expire at various dates through March 2020 . Rental expenses were $342 and $385 for the three months ended September 30, 2015 and 2014 , respectively. Future minimum lease payments under the agreements as of September 30, 2015 are as follows: Nine months ended June 30, 2016 $ 511 Fiscal 2017 551 Fiscal 2018 519 Fiscal 2019 469 Fiscal 2020 352 Thereafter 1 $ 2,403 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents a reconciliation of the numerators and denominators used in the basic and diluted earnings per common share computations (in thousands except share and per share amounts): Three Months Ended 2015 2014 Numerator Net loss $ (13,261 ) $ (8,224 ) Denominator Weighted average common shares – basic 32,210,874 31,311,110 Effect of dilutive stock options (a)(b) — — Weighted average common shares outstanding – diluted 32,210,874 31,311,110 Net loss per common share — basic and diluted $ (0.41 ) $ (0.26 ) (a) At September 30, 2015 and 2014 , 697,372 and 847,208 stock options, respectively, were outstanding. The effect of the shares that would be issued upon exercise of these options has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. (b) At September 30, 2015 and 2014 , 297,044 and 336,176 additional shares of common stock, respectively, were issuable upon the settlement of outstanding restricted stock units. The effect of the shares that would be issued upon settlement of these restricted stock units has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The Company prepared the unaudited interim consolidated financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. The year-end consolidated balance sheet was derived from the Company’s audited consolidated financial statements, but does not include all disclosures as required by GAAP. These interim consolidated financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to state fairly the Company’s consolidated financial position, the results of its operations and its cash flows for the interim periods. These interim consolidated financial statements should be read in conjunction with the consolidated annual financial statements and the notes thereto included in the Form 10-K filed by the Company with the SEC on August 27, 2015. The nature of the Company’s business is such that the results of any interim period may not be indicative of the results to be expected for the entire year. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Prior Year Revision | Prior Year Revision During the fourth quarter of fiscal 2015, the Company evaluated the presentation of its accounts payable and accrued expenses line items on the consolidated balance sheet and determined that a reclassification of amounts from accounts payable to accrued expenses would provide a more meaningful presentation. There were no changes to total current liabilities and net cash used in operations as a result of these reclassifications. The Company reclassified $3,649 from accounts payable to accrued expenses as of September 30, 2014. In addition, the Company reclassified the changes in accounts payable and accrued expenses in the operating activities section of the consolidated statement of cash flows by $653 for the three months ended September 30, 2014. The Company has concluded that these reclassifications are not material. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based compensation plans, which include stock options, nonvested share awards, and an employee stock purchase plan. Fair value of option awards is determined using option-pricing models, fair value of nonvested share awards with market conditions is determined using the Monte Carlo simulation, and fair value of nonvested share awards that vest based upon performance or service conditions is determined by the closing market price of the Company's stock on the date of grant. Stock-based compensation expense is recognized ratably over the requisite service period for the awards expected to vest. |
Revenue Recognition | Revenue Recognition The Company sells the majority of its products via direct shipment to hospitals or clinics. The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. The Company records estimated sales returns, discounts and rebates as a reduction of net sales. Costs related to products delivered are recognized in the period revenue is recognized. Cost of goods sold consists primarily of raw materials, direct labor, and manufacturing overhead. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue From Customers With Contracts.” The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 was initially to be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, using one of two prescribed retrospective methods. Early adoption was not to be permitted. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 by one year and allow early adoption for all entities but not before the original public entity effective date. The Company is evaluating the impact of the amended revenue recognition guidance on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” The guidance requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. The entity must also provide certain disclosures if there is substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company does not anticipate a material impact on its financial statements upon adoption. In April 2015, the FASB issued ASU No. 2015-05, “Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.” The ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. ASU 2015-05 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted and companies can elect to adopt the guidance prospectively to all arrangements entered into or materially modified after the effective date, or retrospectively. The Company does not anticipate a material impact on its financial statements upon adoption. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” The guidance requires an entity to measure inventory within the scope of the ASU at the lower of cost and net realizable value. ASU 2015-11 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and should be applied prospectively. Early adoption is permitted. The Company does not anticipate a material impact on its financial statements upon adoption. |
Selected Consolidated Financi15
Selected Consolidated Financial Statement Information (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consists of the following: September 30, June 30, 2015 2015 Accounts receivable $ 28,458 $ 32,267 Less: Allowance for doubtful accounts (1,594 ) (1,437 ) Total Accounts receivable $ 26,864 $ 30,830 |
Schedule of Inventory | Inventories consist of the following: September 30, June 30, 2015 2015 Raw materials $ 7,480 $ 7,292 Work in process 1,222 1,108 Finished goods 6,744 5,566 Total Inventories $ 15,446 $ 13,966 |
Schedule of Property and Equipment, Net | Property and equipment consists of the following: September 30, June 30, 2015 2015 Land $ 500 $ 500 Building 22,541 22,468 Equipment 12,121 11,745 Furniture 2,616 2,581 Leasehold improvements 116 110 Construction in progress 2,443 1,218 40,337 38,622 Less: Accumulated depreciation (6,626 ) (5,739 ) Total Property and equipment, net $ 33,711 $ 32,883 |
Schedule of Accrued Expenses | Accrued expenses consist of the following: September 30, June 30, 2015 2015 Salaries and bonus $ 3,643 $ 3,961 Commissions 5,080 5,387 Vacation 3,849 3,770 Excise, sales and other taxes 3,342 3,217 Clinical studies 2,339 2,446 Other 1,794 1,344 Total Accrued expenses $ 20,047 $ 20,125 |
Deferred Compensation Plan Defe
Deferred Compensation Plan Deferred Compensation Plan (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Available-for-sale Marketable Securities | Investments consisted of the following: As of September 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 1,803 $ — $ (9 ) $ 1,794 Total short-term investments $ 1,803 $ — $ (9 ) $ 1,794 As of June 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 1,786 $ 90 $ — $ 1,876 Total short-term investments $ 1,786 $ 90 $ — $ 1,876 |
Available-for-sale Securities at Fair Value on Recurring Basis | The following table provides information by level for the Company's available-for-sale marketable securities that were measured at fair value on a recurring basis: Fair Value Measurements as of September 30, 2015 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 1,794 $ 1,188 $ 606 $ — Total short-term investments $ 1,794 $ 1,188 $ 606 $ — Fair Value Measurements as of June 30, 2015 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 1,876 $ 1,275 $ 601 $ — Total short-term investments $ 1,876 $ 1,275 $ 601 $ — |
Stock Options and Restricted 17
Stock Options and Restricted Stock Awards (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Stock Option Activity | Stock option activity for the three months ended September 30, 2015 is as follows: Number of Options (a) Weighted Average Exercise Price Options outstanding at June 30, 2015 699,872 $ 10.32 Options exercised (2,500 ) $ 7.90 Options outstanding at September 30, 2015 697,372 $ 10.33 (a) Includes the effect of options granted, exercised, forfeited or expired from the 2003 Plan and 2007 Plan, and options granted outside such plans. |
Restricted Stock Award Activity | Restricted stock award activity for the three months ended September 30, 2015 is as follows: Number of Shares Weighted Average Fair Value Restricted stock awards outstanding at June 30, 2015 995,323 $ 21.31 Restricted stock awards granted (1) 619,999 $ 23.60 Restricted stock awards forfeited (84,512 ) $ 28.08 Restricted stock awards vested (343,943 ) $ 22.09 Restricted stock awards outstanding at September 30, 2015 1,186,867 $ 25.57 (1) Includes both time-based and performance-based restricted stock awards. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under the agreements as of September 30, 2015 are as follows: Nine months ended June 30, 2016 $ 511 Fiscal 2017 551 Fiscal 2018 519 Fiscal 2019 469 Fiscal 2020 352 Thereafter 1 $ 2,403 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators Used in Basic and Diluted Earnings Per Common Share Computations | The following table presents a reconciliation of the numerators and denominators used in the basic and diluted earnings per common share computations (in thousands except share and per share amounts): Three Months Ended 2015 2014 Numerator Net loss $ (13,261 ) $ (8,224 ) Denominator Weighted average common shares – basic 32,210,874 31,311,110 Effect of dilutive stock options (a)(b) — — Weighted average common shares outstanding – diluted 32,210,874 31,311,110 Net loss per common share — basic and diluted $ (0.41 ) $ (0.26 ) (a) At September 30, 2015 and 2014 , 697,372 and 847,208 stock options, respectively, were outstanding. The effect of the shares that would be issued upon exercise of these options has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. (b) At September 30, 2015 and 2014 , 297,044 and 336,176 additional shares of common stock, respectively, were issuable upon the settlement of outstanding restricted stock units. The effect of the shares that would be issued upon settlement of these restricted stock units has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2014USD ($) | |
Accounting Policies [Abstract] | |
Balance sheet reclassification | $ 3,649 |
Cash flow reclassification | $ 653 |
Selected Consolidated Financi21
Selected Consolidated Financial Statement Information - Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Accounts Receivable | ||
Accounts receivable | $ 28,458 | $ 32,267 |
Less: Allowance for doubtful accounts | (1,594) | (1,437) |
Total Accounts receivable | $ 26,864 | $ 30,830 |
Selected Consolidated Financi22
Selected Consolidated Financial Statement Information - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Inventories | ||
Raw materials | $ 7,480 | $ 7,292 |
Work in process | 1,222 | 1,108 |
Finished goods | 6,744 | 5,566 |
Total Inventories | $ 15,446 | $ 13,966 |
Selected Consolidated Financi23
Selected Consolidated Financial Statement Information - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Property and Equipment | ||
Land | $ 500 | $ 500 |
Building | 22,541 | 22,468 |
Equipment | 12,121 | 11,745 |
Furniture | 2,616 | 2,581 |
Leasehold improvements | 116 | 110 |
Construction in progress | 2,443 | 1,218 |
Property and equipment, gross | 40,337 | 38,622 |
Less: Accumulated depreciation | (6,626) | (5,739) |
Total Property and equipment, net | $ 33,711 | $ 32,883 |
Selected Consolidated Financi24
Selected Consolidated Financial Statement Information - Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Accrued Expenses | ||
Salaries and bonus | $ 3,643 | $ 3,961 |
Commissions | 5,080 | 5,387 |
Vacation | 3,849 | 3,770 |
Excise, sales and other taxes | 3,342 | 3,217 |
Clinical studies | 2,339 | 2,446 |
Other | 1,794 | 1,344 |
Total Accrued expenses | $ 20,047 | $ 20,125 |
Deferred Compensation Plan - In
Deferred Compensation Plan - Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 1,803 | $ 1,786 |
Unrealized Gains | 0 | 90 |
Unrealized Losses | (9) | 0 |
Fair Value | 1,794 | 1,876 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 1,803 | 1,786 |
Unrealized Gains | 0 | 90 |
Unrealized Losses | (9) | 0 |
Fair Value | $ 1,794 | $ 1,876 |
Deferred Compensation Plan - Av
Deferred Compensation Plan - Available-for-sale Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | $ 1,794 | $ 1,876 |
Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,794 | 1,876 |
Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,794 | 1,876 |
Recurring | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,794 | 1,876 |
Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,188 | 1,275 |
Recurring | Level 1 | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,188 | 1,275 |
Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 606 | 601 |
Recurring | Level 2 | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 606 | 601 |
Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0 | 0 |
Recurring | Level 3 | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | $ 0 | $ 0 |
Deferred Compensation Plan - Na
Deferred Compensation Plan - Narrative (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Deferred Compensation Arrangements [Abstract] | ||
Purchases of available-for-sale securities | $ 17,000 | $ 2,084,000 |
Sales of available-for-sale securities | 0 | 0 |
Other-than-temporary impairments | 0 | $ 0 |
Transfers of assets between Level 1 and Level 2 | $ 0 | |
Maximum | ||
Deferred Compensation Arrangements [Abstract] | ||
Deferred compensation plan, maximum percentage of employees' base salary | 100.00% |
- Narrative (Details)
- Narrative (Details) - shares | Aug. 10, 2015 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise period for employee's vested options | 90 days | |
Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate shares based on thresholds measuring total shareholder return | 156,509 | |
Aggregate shares based on thresholds measuring annual revenue growth during fiscal 2015 | 156,520 |
Stock Options and Restricted 29
Stock Options and Restricted Stock Awards - Stock Option Activity (Details) | 3 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Options | |
Options outstanding, balance at beginning of period (in shares) | shares | 699,872 |
Options exercised (in shares) | shares | (2,500) |
Options outstanding, balance at end of period (in shares) | shares | 697,372 |
Weighted Average Exercise Price | |
Options outstanding at beginning of period (in usd per share) | $ 10.32 |
Options exercised (in usd per share) | 7.90 |
Options outstanding at end of period (in usd per share) | $ 10.33 |
Stock Options and Restricted 30
Stock Options and Restricted Stock Awards - Restricted Stock Award Activity (Details) - Restricted Stock | 3 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Shares | |
Awards outstanding, balance at beginning of period (in shares) | shares | 995,323 |
Awards granted (in shares) | shares | 619,999 |
Awards forfeited (in shares) | shares | (84,512) |
Awards vested (in shares) | shares | (343,943) |
Awards outstanding, balance at end of period (in shares) | shares | 1,186,867 |
Weighted Average Fair Value | |
Awards outstanding, balance at beginning of period (in usd per share) | $ 21.31 |
Awards granted (in usd per share) | 23.60 |
Awards forfeited (in usd per share) | 28.08 |
Awards vested (in usd per share) | 22.09 |
Awards outstanding, balance at end of period (in usd per share) | $ 25.57 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease expiration date | Mar. 31, 2020 | |
Rental expense | $ 342 | $ 385 |
Future Minimum Lease Payments: | ||
Nine months ended June 30, 2016 | 511 | |
Fiscal 2,017 | 551 | |
Fiscal 2,018 | 519 | |
Fiscal 2,019 | 469 | |
Fiscal 2,020 | 352 | |
Thereafter | 1 | |
Future minimum lease payments | $ 2,403 |
Earnings Per Share - EPS Reconc
Earnings Per Share - EPS Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator | ||
Net loss | $ (13,261) | $ (8,224) |
Denominator | ||
Weighted average common shares – basic | 32,210,874 | 31,311,110 |
Effect of dilutive stock options (in shares) | 0 | 0 |
Weighted average common shares outstanding – diluted | 32,210,874 | 31,311,110 |
Net loss per common share — basic and diluted (in usd per share) | $ (0.41) | $ (0.26) |
Earnings Per Share - EPS Reco33
Earnings Per Share - EPS Reconciliation (Additional Information) (Details) - shares | 3 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the calculation (in shares) | 0 | 0 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the calculation (in shares) | 697,372 | 847,208 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the calculation (in shares) | 297,044 | 336,176 |