Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
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 | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,673,703 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Current assets | ||
Cash and cash equivalents | $ 62,174 | $ 83,842 |
Accounts receivable, net | 23,048 | 30,830 |
Inventories | 18,226 | 13,966 |
Marketable securities | 1,909 | 1,876 |
Prepaid expenses and other current assets | 1,388 | 3,380 |
Total current assets | 106,745 | 133,894 |
Property and equipment, net | 33,224 | 32,883 |
Patents, net | 4,952 | 4,511 |
Other assets | 88 | 40 |
Total assets | 145,009 | 171,328 |
Current liabilities | ||
Accounts payable | 8,338 | 9,763 |
Accrued expenses | 26,649 | 20,125 |
Total current liabilities | 34,987 | 29,888 |
Long-term liabilities | ||
Other liabilities | 8,251 | 2,005 |
Total liabilities | 43,238 | 31,893 |
Commitments and contingencies | 0 | 0 |
Common stock, $0.001 par value; authorized 100,000,000 common shares at March 31, 2016 and June 30, 2015; issued and outstanding 32,684,195 at March 31, 2016 and 31,898,124 at June 30, 2015, respectively | 33 | 32 |
Additional paid in capital | 424,178 | 410,700 |
Accumulated other comprehensive income | 86 | 90 |
Accumulated deficit | (322,526) | (271,387) |
Total stockholders’ equity | 101,771 | 139,435 |
Total liabilities and stockholders’ equity | $ 145,009 | $ 171,328 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2016 | 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 | 32,684,195 | 31,898,124 |
Common stock, shares outstanding | 32,684,195 | 31,898,124 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||||
Net revenues | $ 44,461 | $ 47,004 | $ 129,724 | $ 133,090 |
Cost of goods sold | 8,725 | 10,416 | 25,567 | 28,647 |
Gross profit | 35,736 | 36,588 | 104,157 | 104,443 |
Expenses: | ||||
Selling, general and administrative | 42,338 | 39,453 | 124,991 | 105,513 |
Research and development | 5,748 | 7,777 | 19,895 | 23,014 |
Restructuring | 2,376 | 0 | 2,376 | 0 |
Legal settlement | 8,000 | 0 | 8,000 | 0 |
Total expenses | 58,462 | 47,230 | 155,262 | 128,527 |
Loss from operations | (22,726) | (10,642) | (51,105) | (24,084) |
Interest and other, net | 10 | (14) | (35) | (69) |
Net loss | $ (22,716) | $ (10,656) | $ (51,140) | $ (24,153) |
Net loss per common share: | ||||
Basic and diluted (in usd per share) | $ (0.69) | $ (0.34) | $ (1.57) | $ (0.77) |
Weighted average common shares used in computation: | ||||
Basic and diluted (in shares) | 32,711,341 | 31,644,522 | 32,491,271 | 31,479,803 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (51,140) | $ (24,153) |
Adjustments to reconcile net loss to net cash used in operations | ||
Depreciation of property and equipment | 2,728 | 1,292 |
Amortization and write-off of patents | 215 | 146 |
Provision for doubtful accounts | 600 | 1,021 |
Loss on disposal of property and equipment | 8 | 99 |
Stock-based compensation | 10,392 | 11,039 |
Changes in assets and liabilities | ||
Accounts receivable | 7,532 | (10,858) |
Inventories | (4,260) | (329) |
Prepaid expenses and other assets | 2,354 | 166 |
Accounts payable | (1,400) | 826 |
Accrued expenses and other liabilities | 12,771 | 5,666 |
Net cash used in operating activities | (20,200) | (15,085) |
Cash flows from investing activities | ||
Expenditures for property and equipment | (3,245) | (16,593) |
Issuance of convertible note receivable | (350) | 0 |
Purchases of marketable securities | (37) | (2,094) |
Sales of marketable securities | 0 | 365 |
Costs incurred in connection with patents | (512) | (634) |
Net cash used in investing activities | (4,144) | (18,956) |
Cash flows from financing activities | ||
Proceeds from employee stock purchase plan | 1,670 | 1,360 |
Exercise of stock options | 1,006 | 1,974 |
Payments on debt | 0 | (2,400) |
Net cash provided by financing activities | 2,676 | 934 |
Net change in cash and cash equivalents | (21,668) | (33,107) |
Cash and cash equivalents | ||
Beginning of period | 83,842 | 126,592 |
End of period | 62,174 | 93,485 |
Noncash investing activities | ||
Property and equipment included in accounts payable | $ 0 | $ 1,860 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (22,716) | $ (10,656) | $ (51,140) | $ (24,153) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on available for sale securities | 37 | 105 | (5) | 105 |
Comprehensive loss | $ (22,679) | $ (10,551) | $ (51,145) | $ (24,048) |
Business Overview
Business Overview | 9 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 (“PAD”) products, the Stealth 360° ® Peripheral Orbital Atherectomy System (“OAS”), and the Diamondback 360 ® Peripheral OAS, 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 United States Food and Drug Administration to market the Diamondback 360 ® Coronary OAS as a treatment for severely calcified coronary arteries. The Company is currently selling only in the United States and evaluating options for international expansion to maximize the coronary and peripheral market opportunities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2016 | |
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 $4,917 from accounts payable to accrued expenses as of March 31, 2015. 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 $1,921 for the nine months ended March 31, 2015. The Company has concluded that these reclassifications are not material. During the fourth quarter of fiscal 2015, the Company reclassified a $99 loss on disposal of assets during the three months ended March 31, 2015 from other expense to selling, general and administrative expenses on the consolidated statement of operations. There were no changes to net income. The Company has concluded that this reclassification is 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 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. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company does not anticipate a material impact on its financial statements upon adoption. In February 2016, the FASB issued ASU 2016-02, “Leases.” The guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, and should be applied using a modified retrospective approach. Early adoption is permitted. The Company is currently evaluating the impact of the new lease guidance on its financial statements. In March 2016, the FASB issued ASU 2016-09, “Stock Compensation.” The guidance simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, classification on the statement of cash flows, forfeitures, statutory withholding requirements and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted and transition requirements vary based on the amendments adopted. The Company is currently evaluating the impact of the stock compensation guidance on its financial statements. |
Selected Consolidated Financial
Selected Consolidated Financial Statement Information | 9 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Consolidated Financial Statement Information | Selected Consolidated Financial Statement Information Accounts Receivable, Net Accounts receivable consists of the following: March 31, June 30, 2016 2015 Accounts receivable $ 24,652 $ 32,267 Less: Allowance for doubtful accounts (1,604 ) (1,437 ) Total Accounts receivable $ 23,048 $ 30,830 Inventories, Net Inventories consist of the following: March 31, June 30, 2016 2015 Raw materials $ 7,648 $ 7,292 Work in process 917 1,108 Finished goods 9,661 5,566 Total Inventories $ 18,226 $ 13,966 Property and Equipment, Net Property and equipment consists of the following: March 31, June 30, 2016 2015 Land $ 500 $ 500 Building 22,575 22,468 Equipment 13,072 11,745 Furniture 2,697 2,581 Leasehold improvements 87 110 Construction in progress 2,626 1,218 41,557 38,622 Less: Accumulated depreciation (8,333 ) (5,739 ) Total Property and equipment, net $ 33,224 $ 32,883 Accrued Expenses Accrued expenses consist of the following: March 31, June 30, 2016 2015 Salaries and bonus $ 3,683 $ 3,961 Commissions 7,626 5,387 Vacation 3,368 3,770 Excise, sales and other taxes 3,386 3,217 Clinical studies 1,736 2,446 Legal settlement 3,000 — Restructuring 2,369 — Other accrued expenses 1,481 1,344 Total Accrued expenses $ 26,649 $ 20,125 Restructuring On March 31, 2016, the Company announced a restructuring to reduce costs as a key part of its plan to balance revenue growth with a pathway to profitability and positive cash flow. As a result, the Company recorded a restructuring expense of $2,376 during the three months ended March 31, 2016 which was comprised of severance and other employee related costs. The Company and its Chief Healthcare Policy Officer, Robert Thatcher, agreed that Mr. Thatcher’s employment with the Company will end, effective May 25, 2016. The Company expects to enter into a Separation Agreement with Mr. Thatcher that will provide Mr. Thatcher with benefits consistent with the Company’s Amended and Restated Executive Officer Severance Plan (the “Executive Severance Plan”). In addition, Mr. Thatcher and his family members will be eligible for early retiree medical benefits pursuant to the terms and conditions of the Company's group health plan. Consistent with the Severance Plan, the vesting of 7,996 shares of Mr. Thatcher’s time-based restricted stock that would have otherwise vested within the 12 month period following May 25, 2016 will be accelerated, and up to 30,624 shares of Mr. Thatcher’s performance-based restricted stock that would have otherwise vested within the 12 month period following May 25, 2016 will vest, provided, and only to the extent, if any, that the performance criteria for such shares is met, as determined by the Company in or around August or September 2016. Additionally, Mr. Thatcher’s outstanding vested stock options will remain exercisable through the applicable award expiration dates. The foregoing terms are subject to the finalization of a definitive Separation Agreement, the terms of which the Company will disclose following execution of the Separation Agreement by the parties. The Company anticipates that $2,369 of the restructuring accrual, which includes previously accrued vacation and bonus, will be paid within the next twelve months and is therefore recorded in accrued expenses on the consolidated balance sheet. Estimated payments of $270 , representing the long-term portion of Mr. Thatcher's benefits, are recorded in other liabilities on the consolidated balance sheet. CEO Departure On February 29, 2016, the Company announced that David L. Martin resigned from his positions as President and Chief Executive Officer of the Company and as a director of the Company, effective February 26, 2016. The Company and Mr. Martin entered into a Separation Agreement in accordance with the Executive Severance Plan. In addition, Mr. Martin and his family members were eligible for early retiree medical benefits pursuant to the terms and conditions of the Company's group health plan. Any benefits payable to Mr. Martin under the Company’s Deferred Compensation Plan will be paid pursuant to the terms of such plan. The Separation Agreement terms also accelerated the vesting of 27,140 shares of time-based restricted stock that would have otherwise vested within the 12 month period following February 26, 2016 and provide for the vesting of up to 112,072 shares of performance-based restricted stock that would have otherwise vested within the 12 month period following February 26, 2016, provided, and only to the extent, if any, that the performance criteria for such shares is met as determined by the Company in or around August or September 2016. Additionally, Mr. Martin’s outstanding vested stock options will remain exercisable through the applicable award expiration date. The total expense related to Mr. Martin's departure was $2,030 and was recorded in selling, general and administrative expenses for the three months ended March 31, 2016, which includes a non-cash stock modification expense of $190 . Approximately $911 of the package benefits, including previously accrued bonus expense, is recorded in accrued expenses and $971 is recorded in other liabilities on the consolidated balance sheet, representing the long-term portion of Mr. Martin's benefits. Other Liabilities Other liabilities consist of the following: March 31, June 30, 2016 2015 Legal settlement $ 5,000 $ — Deferred compensation 1,902 1,876 Other liabilities 1,349 129 Total Other liabilities $ 8,251 $ 2,005 |
Deferred Compensation Plan
Deferred Compensation Plan | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , $1,902 is classified as long-term and is included in other liabilities on the consolidated balance sheet. In connection with the departure of Mr. Martin, discussed above, $6 of his deferred compensation plan balance is payable seven months after his employment ended and is therefore included in accrued expenses on the consolidated balance sheet as of March 31, 2016. 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 March 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 1,823 $ 85 $ — $ 1,908 Total short-term investments $ 1,823 $ 85 $ — $ 1,908 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 nine months ended March 31, 2016 and 2015 , there were $37 and $2,094 , respectively, in purchases of available-for-sale securities. There were no sales or other-than-temporary impairments during the nine months ended March 31, 2016 . During the nine months ended March 31, 2015 , there was $365 of sales and no other-than-temporary impairment. 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 March 31, 2016 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 1,908 $ 1,297 $ 611 $ — Total short-term investments $ 1,908 $ 1,297 $ 611 $ — 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 nine months ended March 31, 2016 . 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 | 9 Months Ended |
Mar. 31, 2016 | |
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 a terminated plan, the 2003 Stock Option Plan (the “2003 Plan”) (the 2014 Plan, the 2007 Plan, and the 2003 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 March 31, 2016 , all outstanding options were fully vested. Stock option activity for the nine months ended March 31, 2016 is as follows: Number of Options (a) Weighted Average Exercise Price Options outstanding at June 30, 2015 699,872 $ 10.32 Options exercised (87,817 ) $ 11.46 Options forfeited or expired (5,176 ) $ 12.37 Options outstanding at March 31, 2016 606,879 $ 10.14 (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 nine months ended March 31, 2016 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) 813,099 $ 21.06 Restricted stock awards forfeited (250,333 ) $ 25.85 Restricted stock awards vested (529,227 ) $ 23.40 Restricted stock awards outstanding at March 31, 2016 1,028,862 $ 23.24 (1) Includes both time-based and performance-based restricted stock awards. |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Mar. 31, 2016 | |
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 $140 and $554 for the three months ended March 31, 2016 and 2015 , respectively, and $781 and $1,351 for the nine months ended March 31, 2016 and 2015 , respectively. The decrease in rent expense relates to the completion of construction of the Company's new headquarters, which replaced space previously leased by the Company. Future minimum lease payments under the agreements as of March 31, 2016 are as follows: Three months ended June 30, 2016 $ 157 Fiscal 2017 589 Fiscal 2018 523 Fiscal 2019 471 Fiscal 2020 353 $ 2,093 Legal Settlement On May 8, 2014, the Company received a letter from the U.S. Attorney’s Office for the Western District of North Carolina (the “Department of Justice”) stating that it is investigating the Company to determine whether it had violated the False Claims Act (“FCA”), and on July 8, 2015, the complaint underlying the Department of Justice’s investigation, which was filed by Travis Thams (the “relator”), was unsealed. On December 14, 2015, the United States District Court for the Western District of North Carolina, Charlotte Division (the “Court”), granted the Company’s motion to extend the time to file a response to the complaint to March 25, 2016. On March 16, 2016, the Company, along with the relator and with affirmative support from the United States, filed a consent motion to stay or extend the Company’s time to respond to the complaint. In that Consent Motion, the Department of Justice and the Company stated that they had reached an agreement in principle to settle the FCA claims in the action and that additional time is needed to negotiate, execute and obtain approvals of all of the parties to the settlement documents. On March 18, 2016, the Court granted the consent motion to stay the action, up to and until May 15, 2016. The agreement in principle provides that the Company will make estimated payments totaling $8,000 over a three-year period to the United States government, which does not include the Company’s share of the relator's counsel fees and expenses. If a settlement agreement is consummated, the Company expects that a stipulation of dismissal will be filed resolving the FCA claims in the action. The Company has recorded $3,000 of the estimated settlement in accrued expenses and $5,000 in other liabilities on the consolidated balance sheet. During the three months ended March 31, 2016, the Company recorded approximately $505 in legal fees in selling, general and administrative expense related to the Department of Justice investigation. The agreement in principle is subject to the negotiation of definitive documentation, and there can be no assurance that the Company, the government and the relator will agree on the definitive documentation within the stay period on the terms of the agreement in principle, or at all. Stockholder Litigation On February 12, 2016, a stockholder purporting to represent a class of persons who purchased securities of the Company between September 12, 2011 and January 21, 2016 filed a lawsuit against the Company and certain of its officers in the United States District Court for the Central District of California, Paradis v. Cardiovascular Systems, Inc., et al., 2:16-cv-01011 (C.D. Cal.). The lawsuit alleges that the Company made materially false and misleading statements and failed to disclose material adverse facts about the Company’s business, operational and financial performance, in violation of federal securities laws, relating to (1) alleged kickbacks to health care providers, (2) alleged off-label promotion of medical devices, and (3) alleged violations of the Food and Drug Administration’s laws and regulations in connection with the Company’s medical devices. On March 4, 2016, a second stockholder filed a similar lawsuit against the Company and certain of its officers in the United States District Court for the District of Minnesota, Shoemaker v. Cardiovascular Systems, Inc. et al., 0:16-cv-00568 (D. Minn.). The plaintiffs seek unspecified monetary damages on behalf of the alleged class, interest, and attorney’s fees and costs of litigation. On April 12, 2016, four motions for appointment as lead plaintiff were filed in the Paradis action and three of the four proposed plaintiffs also filed a motion for appointment as lead plaintiff in the Shoemaker action. On April 26, 2016, the Paradis action was voluntarily dismissed by plaintiffs in favor of the Shoemaker action. That same day, the Shoemaker court entered an order appointing the City of Miami Fire Fighters’ & Police Officers’ Retirement Trust and the County Retirement Systems as Co-Lead Plaintiffs for representing the putative class. The Company believes that this lawsuit is without merit and intends to defend itself vigorously. The Company cannot at this time determine the likelihood of any outcome or the potential impact on the Company. Other Matters In the ordinary conduct of business, the Company is subject to various lawsuits and claims covering a wide range of matters including, but not limited to, employment claims and commercial disputes. While the outcome of these matters is uncertain, the Company does not believe there are any significant matters as of March 31, 2016 that are probable or estimable, for which the outcome could have a material adverse impact on its consolidated balance sheets or statements of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Numerator Net loss $ (22,716 ) $ (10,656 ) $ (51,140 ) $ (24,153 ) Denominator Weighted average common shares – basic 32,711,341 31,644,522 32,491,271 31,479,803 Effect of dilutive stock options (a)(b) — — — — Weighted average common shares outstanding – diluted 32,711,341 31,644,522 32,491,271 31,479,803 Net loss per common share — basic and diluted $ (0.69 ) $ (0.34 ) $ (1.57 ) $ (0.77 ) (a) At March 31, 2016 and 2015 , 606,879 and 720,233 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 March 31, 2016 and 2015 , 305,031 and 337,303 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) | 9 Months Ended |
Mar. 31, 2016 | |
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 $4,917 from accounts payable to accrued expenses as of March 31, 2015. 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 $1,921 for the nine months ended March 31, 2015. The Company has concluded that these reclassifications are not material. During the fourth quarter of fiscal 2015, the Company reclassified a $99 loss on disposal of assets during the three months ended March 31, 2015 from other expense to selling, general and administrative expenses on the consolidated statement of operations. There were no changes to net income. The Company has concluded that this reclassification is 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 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. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company does not anticipate a material impact on its financial statements upon adoption. In February 2016, the FASB issued ASU 2016-02, “Leases.” The guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, and should be applied using a modified retrospective approach. Early adoption is permitted. The Company is currently evaluating the impact of the new lease guidance on its financial statements. In March 2016, the FASB issued ASU 2016-09, “Stock Compensation.” The guidance simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, classification on the statement of cash flows, forfeitures, statutory withholding requirements and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted and transition requirements vary based on the amendments adopted. The Company is currently evaluating the impact of the stock compensation guidance on its financial statements. |
Selected Consolidated Financi15
Selected Consolidated Financial Statement Information (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consists of the following: March 31, June 30, 2016 2015 Accounts receivable $ 24,652 $ 32,267 Less: Allowance for doubtful accounts (1,604 ) (1,437 ) Total Accounts receivable $ 23,048 $ 30,830 |
Schedule of Inventory | Inventories consist of the following: March 31, June 30, 2016 2015 Raw materials $ 7,648 $ 7,292 Work in process 917 1,108 Finished goods 9,661 5,566 Total Inventories $ 18,226 $ 13,966 |
Schedule of Property and Equipment | Property and equipment consists of the following: March 31, June 30, 2016 2015 Land $ 500 $ 500 Building 22,575 22,468 Equipment 13,072 11,745 Furniture 2,697 2,581 Leasehold improvements 87 110 Construction in progress 2,626 1,218 41,557 38,622 Less: Accumulated depreciation (8,333 ) (5,739 ) Total Property and equipment, net $ 33,224 $ 32,883 |
Schedule of Accrued Expenses | Accrued expenses consist of the following: March 31, June 30, 2016 2015 Salaries and bonus $ 3,683 $ 3,961 Commissions 7,626 5,387 Vacation 3,368 3,770 Excise, sales and other taxes 3,386 3,217 Clinical studies 1,736 2,446 Legal settlement 3,000 — Restructuring 2,369 — Other accrued expenses 1,481 1,344 Total Accrued expenses $ 26,649 $ 20,125 |
Schedule of Other Liabilities | Other Liabilities Other liabilities consist of the following: March 31, June 30, 2016 2015 Legal settlement $ 5,000 $ — Deferred compensation 1,902 1,876 Other liabilities 1,349 129 Total Other liabilities $ 8,251 $ 2,005 |
Deferred Compensation Plan Defe
Deferred Compensation Plan Deferred Compensation Plan (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Investments | Investments consisted of the following: As of March 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 1,823 $ 85 $ — $ 1,908 Total short-term investments $ 1,823 $ 85 $ — $ 1,908 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 |
Schedule of Available-for-sale Marketable 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 March 31, 2016 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 1,908 $ 1,297 $ 611 $ — Total short-term investments $ 1,908 $ 1,297 $ 611 $ — 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) | 9 Months Ended |
Mar. 31, 2016 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Stock Option Activity | Stock option activity for the nine months ended March 31, 2016 is as follows: Number of Options (a) Weighted Average Exercise Price Options outstanding at June 30, 2015 699,872 $ 10.32 Options exercised (87,817 ) $ 11.46 Options forfeited or expired (5,176 ) $ 12.37 Options outstanding at March 31, 2016 606,879 $ 10.14 (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 nine months ended March 31, 2016 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) 813,099 $ 21.06 Restricted stock awards forfeited (250,333 ) $ 25.85 Restricted stock awards vested (529,227 ) $ 23.40 Restricted stock awards outstanding at March 31, 2016 1,028,862 $ 23.24 (1) Includes both time-based and performance-based restricted stock awards. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments under the agreements as of March 31, 2016 are as follows: Three months ended June 30, 2016 $ 157 Fiscal 2017 589 Fiscal 2018 523 Fiscal 2019 471 Fiscal 2020 353 $ 2,093 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Numerator Net loss $ (22,716 ) $ (10,656 ) $ (51,140 ) $ (24,153 ) Denominator Weighted average common shares – basic 32,711,341 31,644,522 32,491,271 31,479,803 Effect of dilutive stock options (a)(b) — — — — Weighted average common shares outstanding – diluted 32,711,341 31,644,522 32,491,271 31,479,803 Net loss per common share — basic and diluted $ (0.69 ) $ (0.34 ) $ (1.57 ) $ (0.77 ) (a) At March 31, 2016 and 2015 , 606,879 and 720,233 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 March 31, 2016 and 2015 , 305,031 and 337,303 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 | 9 Months Ended |
Mar. 31, 2015USD ($) | Mar. 31, 2015USD ($) | |
Accounting Policies [Abstract] | ||
Balance sheet reclassification | $ 4,917 | $ 4,917 |
Cash flow reclassification | $ 1,921 | |
Reclassification of loss on disposal of assets | $ 99 |
Selected Consolidated Financi21
Selected Consolidated Financial Statement Information - Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Accounts Receivable | ||
Accounts receivable | $ 24,652 | $ 32,267 |
Less: Allowance for doubtful accounts | (1,604) | (1,437) |
Total Accounts receivable | $ 23,048 | $ 30,830 |
Selected Consolidated Financi22
Selected Consolidated Financial Statement Information - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Inventories | ||
Raw materials | $ 7,648 | $ 7,292 |
Work in process | 917 | 1,108 |
Finished goods | 9,661 | 5,566 |
Total Inventories | $ 18,226 | $ 13,966 |
Selected Consolidated Financi23
Selected Consolidated Financial Statement Information - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Property and Equipment | ||
Land | $ 500 | $ 500 |
Building | 22,575 | 22,468 |
Equipment | 13,072 | 11,745 |
Furniture | 2,697 | 2,581 |
Leasehold improvements | 87 | 110 |
Construction in progress | 2,626 | 1,218 |
Property and equipment, gross | 41,557 | 38,622 |
Less: Accumulated depreciation | (8,333) | (5,739) |
Total Property and equipment, net | $ 33,224 | $ 32,883 |
Selected Consolidated Financi24
Selected Consolidated Financial Statement Information - Restructuring and CEO Departure (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restructuring expense | $ 2,376 | $ 0 | $ 2,376 | $ 0 | |||
Restructuring accrual | 2,369 | 2,369 | $ 0 | ||||
Chief Healthcare Policy Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Estimated payment on restructuring representing the long-term portion | 270 | 270 | |||||
Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total expense related to the CEO departure | 2,030 | ||||||
Non-cash stock modification expense | 190 | ||||||
Package benefits recorded in accrued expenses | 911 | 911 | |||||
Package benefits recorded in other liabilities | $ 971 | $ 971 | |||||
Restricted Stock | Chief Healthcare Policy Officer | Scenario, Forecast | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares accelerated | 7,996 | ||||||
Restricted Stock | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares accelerated | 27,140 | ||||||
Performance Shares | Chief Healthcare Policy Officer | Scenario, Forecast | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares accelerated | 30,624 | ||||||
Performance Shares | Chief Executive Officer | Scenario, Forecast | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares accelerated | 112,072 |
Selected Consolidated Financi25
Selected Consolidated Financial Statement Information - Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Accrued Expenses | ||
Salaries and bonus | $ 3,683 | $ 3,961 |
Commissions | 7,626 | 5,387 |
Vacation | 3,368 | 3,770 |
Excise, sales and other taxes | 3,386 | 3,217 |
Clinical studies | 1,736 | 2,446 |
Legal settlement | 3,000 | 0 |
Restructuring | 2,369 | 0 |
Other accrued expenses | 1,481 | 1,344 |
Total Accrued expenses | $ 26,649 | $ 20,125 |
Selected Consolidated Financi26
Selected Consolidated Financial Statement Information - Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Other Liabilities | ||
Legal settlement | $ 5,000 | $ 0 |
Deferred compensation | 1,902 | 1,876 |
Other liabilities | 1,349 | 129 |
Total Other liabilities | $ 8,251 | $ 2,005 |
Deferred Compensation Plan - In
Deferred Compensation Plan - Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 1,823 | $ 1,786 |
Unrealized Gains | 85 | 90 |
Unrealized Losses | 0 | 0 |
Fair Value | 1,908 | 1,876 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 1,823 | 1,786 |
Unrealized Gains | 85 | 90 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 1,908 | $ 1,876 |
Deferred Compensation Plan - Av
Deferred Compensation Plan - Available-for-sale Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | $ 1,908 | $ 1,876 |
Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,908 | 1,876 |
Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,908 | 1,876 |
Recurring | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,908 | 1,876 |
Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,297 | 1,275 |
Recurring | Level 1 | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 1,297 | 1,275 |
Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 611 | 601 |
Recurring | Level 2 | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 611 | 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 ($) | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation classified as long-term | $ 1,902,000 | $ 1,876,000 | |
Deferred compensation classified as short-term | 6,000 | ||
Purchases of available-for-sale securities | 37,000 | $ 2,094,000 | |
Sales of available-for-sale securities | 0 | 365,000 | |
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% |
Stock Options and Restricted 30
Stock Options and Restricted Stock Awards - Narrative (Details) - shares | Aug. 10, 2015 | Mar. 31, 2016 |
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 31
Stock Options and Restricted Stock Awards - Stock Option Activity (Details) | 9 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Number of Options | |
Options outstanding, balance at beginning of period (in shares) | shares | 699,872 |
Options exercised (in shares) | shares | (87,817) |
Options forfeited or expired (in shares) | shares | (5,176) |
Options outstanding, balance at end of period (in shares) | shares | 606,879 |
Weighted Average Exercise Price | |
Options outstanding at beginning of period (in usd per share) | $ / shares | $ 10.32 |
Options exercised (in usd per share) | $ / shares | 11.46 |
Options forfeited or expired (in usd per share) | $ / shares | 12.37 |
Options outstanding at end of period (in usd per share) | $ / shares | $ 10.14 |
Stock Options and Restricted 32
Stock Options and Restricted Stock Awards - Restricted Stock Award Activity (Details) - Restricted Stock | 9 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Number of Shares | |
Awards outstanding, balance at beginning of period (in shares) | shares | 995,323 |
Awards granted (in shares) | shares | 813,099 |
Awards forfeited (in shares) | shares | (250,333) |
Awards vested (in shares) | shares | (529,227) |
Awards outstanding, balance at end of period (in shares) | shares | 1,028,862 |
Weighted Average Fair Value | |
Awards outstanding, balance at beginning of period (in usd per share) | $ / shares | $ 21.31 |
Awards granted (in usd per share) | $ / shares | 21.06 |
Awards forfeited (in usd per share) | $ / shares | 25.85 |
Awards vested (in usd per share) | $ / shares | 23.40 |
Awards outstanding, balance at end of period (in usd per share) | $ / shares | $ 23.24 |
Commitment and Contingencies (D
Commitment and Contingencies (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 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Rental expense | $ 140 | $ 554 | $ 781 | $ 1,351 | |
Lease expiration date | Mar. 31, 2020 | ||||
Future Minimum Lease Payments: | |||||
Three months ended June 30, 2016 | 157 | $ 157 | |||
Fiscal 2,017 | 589 | 589 | |||
Fiscal 2,018 | 523 | 523 | |||
Fiscal 2,019 | 471 | 471 | |||
Fiscal 2,020 | 353 | 353 | |||
Future minimum lease payments | 2,093 | 2,093 | |||
Loss Contingencies [Line Items] | |||||
Legal settlement | 8,000 | $ 0 | 8,000 | $ 0 | |
Estimated settlement in accrued expenses | 3,000 | 3,000 | $ 0 | ||
Estimated settlement in other liabilities | 5,000 | 5,000 | $ 0 | ||
Department of Justice | |||||
Loss Contingencies [Line Items] | |||||
Legal settlement | 8,000 | ||||
Estimated settlement in accrued expenses | 3,000 | 3,000 | |||
Estimated settlement in other liabilities | 5,000 | $ 5,000 | |||
Legal fees | $ 505 |
Earnings Per Share - EPS Reconc
Earnings Per Share - EPS Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator | ||||
Net loss | $ (22,716) | $ (10,656) | $ (51,140) | $ (24,153) |
Denominator | ||||
Weighted average common shares – basic | 32,711,341 | 31,644,522 | 32,491,271 | 31,479,803 |
Effect of dilutive stock options (in shares) | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding – diluted | 32,711,341 | 31,644,522 | 32,491,271 | 31,479,803 |
Net loss per common share — basic and diluted (in usd per share) | $ (0.69) | $ (0.34) | $ (1.57) | $ (0.77) |
Earnings Per Share - EPS Reco35
Earnings Per Share - EPS Reconciliation (Additional Information) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the calculation (in shares) | 0 | 0 | 0 | 0 |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the calculation (in shares) | 606,879 | 720,233 | ||
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the calculation (in shares) | 305,031 | 337,303 |