Cardiovascular Systems (CSII) 10-Q 3 Feb 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2016	Jan. 27, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
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		32,602,902

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Current assets
Cash and cash equivalents	$ 79,279	$ 60,638
Accounts receivable, net	25,398	23,128
Inventories	16,169	17,440
Marketable securities	721	684
Prepaid expenses and other current assets	1,382	2,992
Total current assets	122,949	104,882
Property and equipment, net	31,204	32,471
Patents, net	4,503	5,013
Other assets	64	40
Total assets	158,720	142,406
Current liabilities
Accounts payable	7,616	8,506
Accrued expenses	24,762	26,993
Total current liabilities	32,378	35,499
Long-term liabilities
Deferred revenue	10,000	0
Other liabilities	4,266	6,010
Total liabilities	46,644	41,509
Commitments and contingencies (see Note 6)	0	0
Common stock, $0.001 par value; authorized 100,000,000 common shares at December 31, 2016 and June 30, 2016; issued and outstanding 32,582,902 at December 31, 2016 and 32,792,497 at June 30, 2016, respectively	33	33
Additional paid in capital	440,292	428,235
Accumulated other comprehensive income	77	40
Accumulated deficit	(328,326)	(327,411)
Total stockholders’ equity	112,076	100,897
Total liabilities and stockholders’ equity	$ 158,720	$ 142,406

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2016	Jun. 30, 2016
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	32,582,902	32,792,497
Common stock, shares outstanding	32,582,902	32,792,497

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net revenues	$ 50,043	$ 41,392	$ 99,843	$ 85,263
Cost of goods sold	9,163	8,071	18,629	16,842
Gross profit	40,880	33,321	81,214	68,421
Expenses:
Selling, general and administrative	33,993	41,258	70,859	82,653
Research and development	5,805	7,206	11,140	14,147
Total expenses	39,798	48,464	81,999	96,800
Income (loss) from operations	1,082	(15,143)	(785)	(28,379)
Other (income) and expense, net	15	(3)	(18)	(1)
Loss before income taxes	1,067	(15,140)	(767)	(28,378)
Provision for income taxes	24	23	48	46
Net income (loss)	$ 1,043	$ (15,163)	$ (815)	$ (28,424)
Earnings Per Share, Basic	$ 0.03	$ (0.47)	$ (0.03)	$ (0.88)
Net loss per common share:
Earnings Per Share, Basic	0.03	(0.47)	(0.03)	(0.88)
Earnings Per Share, Diluted	$ 0.03	$ (0.47)	$ (0.03)	$ (0.88)
Weighted average common shares used in computation:
Weighted average shares outstanding, Basic	32,189,981	32,553,991	32,060,973	32,382,433
Weighted average common shares outstanding – diluted	32,804,305	32,553,991	32,060,973	32,382,433

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net loss	$ (815)	$ (28,424)
Adjustments to reconcile net loss to net cash used in operations
Depreciation of property and equipment	1,940	1,810
Amortization and write-off of patents	831	144
Provision for doubtful accounts	190	525
Stock-based compensation	5,933	7,219
Changes in assets and liabilities
Accounts receivable	(2,460)	4,903
Inventories	1,271	(4,271)
Prepaid expenses and other assets	1,936	2,117
Accounts payable	(1,028)	(1,086)
Accrued expenses and other liabilities	(3,976)	(492)
Deferred revenue	10,000	0
Net cash provided by (used in) operating activities	13,822	(17,555)
Cash flows from investing activities
Purchases of property and equipment	(481)	(2,792)
Issuance of convertible note receivable	0	(350)
Purchases of marketable securities	0	(37)
Costs incurred in connection with patents	(375)	(455)
Net cash used in investing activities	(856)	(3,634)
Cash flows from financing activities
Proceeds from employee stock purchase plan	1,400	1,670
Exercise of stock options	4,275	1,006
Net cash provided by financing activities	5,675	2,676
Net change in cash and cash equivalents	18,641	(18,513)
Cash and cash equivalents
Beginning of period	60,638	83,842
End of period	$ 79,279	$ 65,329

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ 1,043	$ (15,163)	$ (815)	$ (28,424)
Other comprehensive income (loss):
Unrealized gain (loss) on available for sale securities	16	57	37	(42)
Comprehensive income (loss)	$ 1,059	$ (15,106)	$ (778)	$ (28,466)

Business Overview

Business Overview	6 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview	Business Overview Company Description 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 Diamondback 360 ® Peripheral Orbital Atherectomy System (“OAS”) and the Stealth 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 other surgical, catheter and pharmacological treatment alternatives. These devices use small access sheaths that can provide procedural benefits and allow physicians to treat PAD patients in a variety of vessel sizes, including 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. In June 2016, the Company submitted an application to Japan’s Pharmaceuticals and Medical Devices Agency for approval of its Diamondback 360 ® Coronary OAS Micro Crown. Pending approval, Japan would become the first international market for any of the Company’s products. In November 2016, the Company signed an exclusive distribution agreement with Medikit Co., Ltd. (“Medikit”) to sell its Diamondback 360 ® Coronary and Peripheral OAS in Japan. The Company is currently evaluating options for additional international expansion to maximize the coronary and peripheral market opportunities.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Dec. 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 for a fair statement of 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 25, 2016. 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. 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 its products almost exclusively 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 Contracts with Customers.” 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 guidance is effective for the Company on July 1, 2018. 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 guidance is effective for the Company as of June 30, 2017. 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 guidance is effective for the Company on July 1, 2017. 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 guidance is effective for the Company on July 1, 2017. The Company is currently evaluating the impact of the deferred tax guidance 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 guidance is effective for the Company on July 1, 2019. 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, and statutory withholding requirements. 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 guidance is effective for the Company on July 1, 2017. The Company is currently evaluating the impact of the stock compensation guidance on its financial statements. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which amends ASU 2014-09, “Revenue from Contracts with Customers.” The guidance clarifies how entities would determine whether promised goods or services are separately identifiable from other promises in a contract and, therefore, would be accounted for separately. The guidance would also allow entities to disregard goods or services that are immaterial in the context of a contract and provides an accounting policy election to account for shipping and handling activities as fulfillment costs rather than as additional promised services. ASU 2016-10 has the same effective date and transition requirements as ASU 2014-09, as amended by 2015-14. The Company is currently evaluating the impact on its financial statements. In May 2016, the FASB issued ASU No. 2016-12, “Narrow-Scope Improvements and Practical Expedients,” which amends ASU 2014-09, “Revenue from Contracts with Customers,” to address implementation issues relative to transition (adding a practical expedient for contract modifications and clarifying what constitutes a completed contract when employing ASU 2014-09’s full or modified retrospective transition methods), collectability, noncash consideration, and the presentation of sales and other similar-type taxes (allowing entities to exclude sales-type taxes collected from transaction price). This ASU has the same effective date and transition requirements as ASU 2014-09, as amended by ASU 2015-14. The Company is currently evaluating the impact on its financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted and should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The guidance is effective for the Company on July 1, 2020. The Company is currently assessing the impact of the credit loss guidance on its financial statements.

Selected Consolidated Financial

Selected Consolidated Financial Statement Information	6 Months Ended
	Dec. 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: December 31, June 30, 2016 2016 Accounts receivable $ 26,173 $ 23,840 Less: Allowance for doubtful accounts (775 ) (712 ) Accounts receivable, net $ 25,398 $ 23,128 Inventories Inventories consist of the following: December 31, June 30, 2016 2016 Raw materials $ 6,992 $ 7,439 Work in process 614 1,142 Finished goods 8,563 8,859 Inventories $ 16,169 $ 17,440 Property and Equipment, Net Property and equipment consists of the following: December 31, June 30, 2016 2016 Land $ 500 $ 500 Building 22,575 22,575 Equipment 15,638 14,141 Furniture 2,709 2,709 Leasehold improvements 86 86 Construction in progress 709 1,533 42,217 41,544 Less: Accumulated depreciation (11,013 ) (9,073 ) Property and equipment, net $ 31,204 $ 32,471 On December 29, 2016, the Company entered into a Purchase and Sale Agreement, and on February 2, 2017, the Company entered into the First Amendment to Purchase and Sale Agreement (collectively, the “Sale Agreement”) with Krishna Holdings, LLC (the “Buyer”), providing for the sale to Buyer of the Company’s headquarters facility in St. Paul, Minnesota (the “Facility”), for an approximate cash purchase price of $21,500 . Under the Sale Agreement, the Company has agreed, concurrently with the closing of the sale of the Facility, to enter into a Lease Agreement (the “Lease Agreement”) with Buyer or an affiliate of Buyer, pursuant to which the Company will lease the Facility. The Lease Agreement will have an initial term of fifteen years, with four consecutive renewal options of five years each, with a base annual rent in the first year of $1,638 and annual escalations of 3% . The closing of the sale of the Facility under the Sale Agreement is subject to completion of due diligence by Buyer and certain customary closing conditions. The Sale Agreement and the First Amendment to the Sale Agreement are filed as Exhibits 10.1 and 10.2, respectively, to this Quarterly Report on Form 10-Q. Accrued Expenses Accrued expenses consist of the following: December 31, June 30, 2016 2016 Salaries and bonus $ 6,076 $ 4,305 Commissions 6,824 7,788 Accrued vacation 3,414 3,498 Accrued excise, sales and other taxes 3,509 3,372 Clinical studies 952 1,757 Legal settlement 1,775 3,872 Restructuring 613 1,337 Other accrued expenses 1,599 1,064 Total Accrued expenses $ 24,762 $ 26,993 Legal Settlement On June 28, 2016, the Company entered into a Settlement Agreement (the “Settlement Agreement”) with the United States of America, acting through the Department of Justice (the “DOJ”) and on behalf of the Office of Inspector General of the Department of Health and Human Services, and Travis Thams, to resolve the investigation by the DOJ and the Civil Action underlying such investigation. Under the Settlement Agreement, the Company will pay $8,000 , as follows: an initial payment of $3,000 , which the Company paid on July 1, 2016, with the remaining $5,000 , which bears interest at 1.8% per annum, payable in 11 equal quarterly installments, beginning January 1, 2017. The amount payable within the next twelve months is included in accrued expenses as noted in the table above. Restructuring On March 31, 2016, the Company announced a restructuring to reduce costs as a part of its plan to progress towards profitability and positive cash flow. As a result, the Company recorded a restructuring expense of $2,364 during the year ended June 30, 2016, which was comprised of severance and other employee related costs. The following table provides information regarding the restructuring accrual: Severance Restructuring accrual at June 30, 2016 $ 1,521 Cash payments (878 ) Restructuring accrual at December 31, 2016 $ 643 The Company anticipates that $613 of the restructuring accrual at December 31, 2016 will be paid within the next twelve months and is therefore recorded in accrued expenses on the consolidated balance sheet. Estimated payments of $30 are recorded in other liabilities on the consolidated balance sheet. The Company does not anticipate additional restructuring costs in the near-term future. CEO Departure On February 29, 2016, the Company’s former Chief Executive Officer (“CEO”) resigned from his positions as President and CEO of the Company and as a director of the Company. The Company and the former CEO entered into a Separation Agreement with benefits consistent with the Company’s Amended and Restated Executive Officer Severance Plan. The total expense related to the former CEO’s departure was $1,507 and was recorded in selling, general and administrative expenses for the year ended June 30, 2016. As of December 31, 2016, $701 of the package benefits is recorded in accrued expenses (included in salaries and bonus in the table above) and $76 is recorded in other liabilities (included in accrued severance in the table below) on the consolidated balance sheet, representing the long-term portion of the former CEO’s benefits. Other Liabilities Other non-current liabilities consist of the following: December 31, June 30, 2016 2016 Legal settlement 3,225 4,128 Deferred compensation 368 684 Accrued severance 105 610 Other liabilities 568 588 Total Other liabilities $ 4,266 $ 6,010 Deferred Revenue In November 2016, the Company signed an exclusive distribution agreement with Medikit to sell its Diamondback 360 ® Coronary and Peripheral OAS in Japan. To secure exclusive distribution rights, Medikit made an upfront payment of $10,000 to the Company, which is refundable based on the occurrence of certain events during the term of the agreement. The Company has classified the upfront payment as long-term based on its expectation of when revenue will be recognized which the Company is currently evaluating.

Deferred Compensation Plan

Deferred Compensation Plan	6 Months Ended
	Dec. 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 December 31, 2016 , $353 of the amount payable is included in accrued liabilities and $368 is included in other liabilities on the consolidated balance sheet. Future distribution dates are July 1, 2017 and January 1, 2020. The available-for-sale marketable securities are primarily comprised of investments with a fixed income and equity investments and consist of the following: As of December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 644 $ 77 $ — $ 721 Total short-term investments $ 644 $ 77 $ — $ 721 As of June 30, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 644 $ 40 $ — $ 684 Total short-term investments $ 644 $ 40 $ — $ 684 During the six months ended December 31, 2016 and 2015 , there were $0 and $37 , respectively, in purchases of available-for-sale securities. There were no sales or other-than-temporary impairments during the six months ended December 31, 2016 and 2015, respectively. 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 December 31, 2016 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 721 $ 460 $ 261 $ — Total short-term investments $ 721 $ 460 $ 261 $ — Fair Value Measurements as of June 30, 2016 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 684 $ 425 $ 259 $ — Total short-term investments $ 684 $ 425 $ 259 $ — The Company's marketable securities classified within Level 1 are valued 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 six months ended December 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	6 Months Ended
	Dec. 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 and was subsequently 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 one other 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 December 31, 2016 , all outstanding options were fully vested. Stock option activity for the six months ended December 31, 2016 is as follows: Number of Options (a) Weighted Average Exercise Price Options outstanding at June 30, 2016 606,879 $ 10.14 Options exercised (416,458 ) $ 10.51 Options expired (9,381 ) $ 8.83 Options outstanding at December 31, 2016 181,040 $ 9.38 (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 For restricted stock awards which vest solely based on time, 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 8, 2016 and August 17, 2016, the Company granted restricted stock awards to its executives and management. These awards included grants of an aggregate maximum 336,826 shares that vest based on the Company’s total shareholder return relative to total shareholder return of the Company’s peer group, as measured by the closing prices of the stock of the Company and the peer group members for the 90 trading days preceding July 1, 2016 compared to the closing prices of the stock of the Company and the peer group members for the 90 trading days preceding July 1, 2019. Vesting of these awards will be determined on the date that the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2019 is filed. To calculate the estimated fair value of these restricted stock awards with market conditions, the Company uses a Monte Carlo simulation, which uses the expected average stock prices to estimate the expected number of shares that will vest. The Monte Carlo simulation resulted in a fair value of approximately $4,032 , which the Company will recognize as expense using the straight-line method over the period that the awards are expected to vest. Stock-based compensation expense related to an award with a market condition will be recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. Restricted stock award activity for the six months ended December 31, 2016 is as follows: Number of Shares Weighted Average Fair Value Restricted stock awards outstanding at June 30, 2016 957,689 $ 22.99 Restricted stock awards granted - time based 240,238 $ 21.57 Restricted stock awards granted - market conditions 336,826 $ 11.97 Restricted stock awards forfeited (382,050 ) $ 12.14 Restricted stock awards vested (242,861 ) $ 23.45 Restricted stock awards outstanding at December 31, 2016 909,842 $ 18.63

Commitment and Contingencies

Commitment and Contingencies	6 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitment and Contingencies Operating Leases The Company leases manufacturing and other space, as well as equipment, under lease agreements that expire at various dates through March 2020 . Rental expenses were $149 and $299 for the three months ended December 31, 2016 and 2015 , respectively, and $321 and $641 for the six months ended December 31, 2016 and 2015 , respectively. Future minimum lease payments under the agreements as of December 31, 2016 are as follows: Six months ended June 30, 2017 $ 302 Fiscal 2018 523 Fiscal 2019 471 Fiscal 2020 353 $ 1,649 Stockholder Securities Litigation With respect to Shoemaker v. Cardiovascular Systems, Inc. et al., 0:16-cv-00568 (D. Minn.) described in Note 9 of the notes to the consolidated annual financial statements included in the Form 10-K filed by the Company with the SEC on August 25, 2016, the Company filed a motion to dismiss the complaint in this action on August 29, 2016. A hearing was held on the motion to dismiss on December 2, 2016, but the court has not issued a ruling as of the date of this quarterly report. Stockholder Derivative Action With respect to the stockholder derivative action described in Note 9 of the notes to the consolidated annual financial statements, included in the Form 10-K filed by the Company with the SEC on August 25, 2016, the parties filed with the court a stipulated order dismissing the derivative action without prejudice on November 17, 2016. The stipulated order of voluntary dismissal came after plaintiff had filed a notice of dismissal on October 19, 2016 and defendants filed a conditional opposition. Defendants had sought to have the court impose additional restrictions on plaintiff as a condition for granting the request for dismissal. The parties then engaged in discussions and resolved the issues, with the defendants withdrawing their opposition and an agreement being reached to have the case dismissed. On November 18, 2016, the court entered the order dismissing the action. Accordingly, the stockholder derivative action is no longer pending. 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 December 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	6 Months Ended
	Dec. 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 Six Months Ended 2016 2015 2016 2015 Numerator Net income (loss) $ 1,043 $ (15,163 ) $ (815 ) $ (28,424 ) Undistributed earnings allocated to participating unvested time-based restricted stock awards (18 ) — — — Net income (loss) available to common stockholders $ 1,025 $ (15,163 ) $ (815 ) $ (28,424 ) Denominator Weighted average common shares outstanding – basic 32,189,981 32,553,991 32,060,973 32,382,433 Effect of dilutive stock options (1) 111,874 — — — Effect of dilutive restricted stock units (2) 313,820 — — — Effect of performance-based restricted stock awards (3) 188,630 — — — Weighted average common shares outstanding – diluted 32,804,305 32,553,991 32,060,973 32,382,433 Earnings per common share – basic $ 0.03 $ (0.47 ) $ (0.03 ) $ (0.88 ) Earnings per common share – diluted $ 0.03 $ (0.47 ) $ (0.03 ) $ (0.88 ) (1) At December 31, 2016 and 2015, 181,040 and 606,879 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 for the three months ended December 31, 2015 and the six months ended December 31, 2016 and 2015 because those shares are anti-dilutive. (2) At December 31, 2016 and 2015, 350,771 and 305,031 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 for the three months ended December 31, 2015 and the six months ended December 31, 2016 and 2015 because those shares are anti-dilutive. (3) At December 31, 2016, 336,826 performance-based restricted stock awards were outstanding. The effect of the shares that would be issued upon vesting of these awards has been excluded from the calculation of diluted loss per share for the three months ended December 31, 2015 and the six months ended December 31, 2016 and 2015 because those shares are anti-dilutive. Unvested time-based restricted stock awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to the Company are allocated between common stockholders and the participating awards, as if the awards were a second class of stock. During periods of net income, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of a net loss, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. During the three months ended December 31, 2016, undistributed earnings allocated to participating securities were based on 573,016 shares of time-based restricted stock awards.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 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 for a fair statement of 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 25, 2016. 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.
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 its products almost exclusively 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 Contracts with Customers.” 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 guidance is effective for the Company on July 1, 2018. 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 guidance is effective for the Company as of June 30, 2017. 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 guidance is effective for the Company on July 1, 2017. 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 guidance is effective for the Company on July 1, 2017. The Company is currently evaluating the impact of the deferred tax guidance 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 guidance is effective for the Company on July 1, 2019. 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, and statutory withholding requirements. 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 guidance is effective for the Company on July 1, 2017. The Company is currently evaluating the impact of the stock compensation guidance on its financial statements. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which amends ASU 2014-09, “Revenue from Contracts with Customers.” The guidance clarifies how entities would determine whether promised goods or services are separately identifiable from other promises in a contract and, therefore, would be accounted for separately. The guidance would also allow entities to disregard goods or services that are immaterial in the context of a contract and provides an accounting policy election to account for shipping and handling activities as fulfillment costs rather than as additional promised services. ASU 2016-10 has the same effective date and transition requirements as ASU 2014-09, as amended by 2015-14. The Company is currently evaluating the impact on its financial statements. In May 2016, the FASB issued ASU No. 2016-12, “Narrow-Scope Improvements and Practical Expedients,” which amends ASU 2014-09, “Revenue from Contracts with Customers,” to address implementation issues relative to transition (adding a practical expedient for contract modifications and clarifying what constitutes a completed contract when employing ASU 2014-09’s full or modified retrospective transition methods), collectability, noncash consideration, and the presentation of sales and other similar-type taxes (allowing entities to exclude sales-type taxes collected from transaction price). This ASU has the same effective date and transition requirements as ASU 2014-09, as amended by ASU 2015-14. The Company is currently evaluating the impact on its financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted and should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The guidance is effective for the Company on July 1, 2020. The Company is currently assessing the impact of the credit loss guidance on its financial statements.

Selected Consolidated Financi15

Selected Consolidated Financial Statement Information (Tables)	6 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Schedule of Accounts Receivable	Accounts receivable consists of the following: December 31, June 30, 2016 2016 Accounts receivable $ 26,173 $ 23,840 Less: Allowance for doubtful accounts (775 ) (712 ) Accounts receivable, net $ 25,398 $ 23,128
Schedule of Inventory	Inventories consist of the following: December 31, June 30, 2016 2016 Raw materials $ 6,992 $ 7,439 Work in process 614 1,142 Finished goods 8,563 8,859 Inventories $ 16,169 $ 17,440
Schedule of Property and Equipment	Property and equipment consists of the following: December 31, June 30, 2016 2016 Land $ 500 $ 500 Building 22,575 22,575 Equipment 15,638 14,141 Furniture 2,709 2,709 Leasehold improvements 86 86 Construction in progress 709 1,533 42,217 41,544 Less: Accumulated depreciation (11,013 ) (9,073 ) Property and equipment, net $ 31,204 $ 32,471
Schedule of Accrued Expenses	Accrued expenses consist of the following: December 31, June 30, 2016 2016 Salaries and bonus $ 6,076 $ 4,305 Commissions 6,824 7,788 Accrued vacation 3,414 3,498 Accrued excise, sales and other taxes 3,509 3,372 Clinical studies 952 1,757 Legal settlement 1,775 3,872 Restructuring 613 1,337 Other accrued expenses 1,599 1,064 Total Accrued expenses $ 24,762 $ 26,993
Schedule of Restructuring Accrual	The following table provides information regarding the restructuring accrual: Severance Restructuring accrual at June 30, 2016 $ 1,521 Cash payments (878 ) Restructuring accrual at December 31, 2016 $ 643
Schedule of Other Liabilities	Other Liabilities Other non-current liabilities consist of the following: December 31, June 30, 2016 2016 Legal settlement 3,225 4,128 Deferred compensation 368 684 Accrued severance 105 610 Other liabilities 568 588 Total Other liabilities $ 4,266 $ 6,010

Deferred Compensation Plan Defe

Deferred Compensation Plan Deferred Compensation Plan (Tables)	6 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Schedule of Investments	As of December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 644 $ 77 $ — $ 721 Total short-term investments $ 644 $ 77 $ — $ 721 As of June 30, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 644 $ 40 $ — $ 684 Total short-term investments $ 644 $ 40 $ — $ 684
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 December 31, 2016 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 721 $ 460 $ 261 $ — Total short-term investments $ 721 $ 460 $ 261 $ — Fair Value Measurements as of June 30, 2016 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 684 $ 425 $ 259 $ — Total short-term investments $ 684 $ 425 $ 259 $ —

Stock Options and Restricted 17

Stock Options and Restricted Stock Awards (Tables)	6 Months Ended
	Dec. 31, 2016
Share-based Arrangements with Employees and Nonemployees [Abstract]
Stock Option Activity	Stock option activity for the six months ended December 31, 2016 is as follows: Number of Options (a) Weighted Average Exercise Price Options outstanding at June 30, 2016 606,879 $ 10.14 Options exercised (416,458 ) $ 10.51 Options expired (9,381 ) $ 8.83 Options outstanding at December 31, 2016 181,040 $ 9.38 (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 six months ended December 31, 2016 is as follows: Number of Shares Weighted Average Fair Value Restricted stock awards outstanding at June 30, 2016 957,689 $ 22.99 Restricted stock awards granted - time based 240,238 $ 21.57 Restricted stock awards granted - market conditions 336,826 $ 11.97 Restricted stock awards forfeited (382,050 ) $ 12.14 Restricted stock awards vested (242,861 ) $ 23.45 Restricted stock awards outstanding at December 31, 2016 909,842 $ 18.63

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	6 Months Ended
	Dec. 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 December 31, 2016 are as follows: Six months ended June 30, 2017 $ 302 Fiscal 2018 523 Fiscal 2019 471 Fiscal 2020 353 $ 1,649

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Dec. 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 Six Months Ended 2016 2015 2016 2015 Numerator Net income (loss) $ 1,043 $ (15,163 ) $ (815 ) $ (28,424 ) Undistributed earnings allocated to participating unvested time-based restricted stock awards (18 ) — — — Net income (loss) available to common stockholders $ 1,025 $ (15,163 ) $ (815 ) $ (28,424 ) Denominator Weighted average common shares outstanding – basic 32,189,981 32,553,991 32,060,973 32,382,433 Effect of dilutive stock options (1) 111,874 — — — Effect of dilutive restricted stock units (2) 313,820 — — — Effect of performance-based restricted stock awards (3) 188,630 — — — Weighted average common shares outstanding – diluted 32,804,305 32,553,991 32,060,973 32,382,433 Earnings per common share – basic $ 0.03 $ (0.47 ) $ (0.03 ) $ (0.88 ) Earnings per common share – diluted $ 0.03 $ (0.47 ) $ (0.03 ) $ (0.88 ) (1) At December 31, 2016 and 2015, 181,040 and 606,879 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 for the three months ended December 31, 2015 and the six months ended December 31, 2016 and 2015 because those shares are anti-dilutive. (2) At December 31, 2016 and 2015, 350,771 and 305,031 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 for the three months ended December 31, 2015 and the six months ended December 31, 2016 and 2015 because those shares are anti-dilutive. (3) At December 31, 2016, 336,826 performance-based restricted stock awards were outstanding. The effect of the shares that would be issued upon vesting of these awards has been excluded from the calculation of diluted loss per share for the three months ended December 31, 2015 and the six months ended December 31, 2016 and 2015 because those shares are anti-dilutive. Unvested time-based restricted stock awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to the Company are allocated between common stockholders and the participating awards, as if the awards were a second class of stock. During periods of net income, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of a net loss, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. During the three months ended December 31, 2016, undistributed earnings allocated to participating securities were based on 573,016 shares of time-based restricted stock awards.

Selected Consolidated Financi20

Selected Consolidated Financial Statement Information - Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Accounts Receivable
Accounts receivable	$ 26,173	$ 23,840
Less: Allowance for doubtful accounts	(775)	(712)
Accounts receivable, net	$ 25,398	$ 23,128

Selected Consolidated Financi21

Selected Consolidated Financial Statement Information - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Inventories
Raw materials	$ 6,992	$ 7,439
Work in process	614	1,142
Finished goods	8,563	8,859
Inventories	$ 16,169	$ 17,440

Selected Consolidated Financi22

Selected Consolidated Financial Statement Information - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Property and Equipment
Land	$ 500	$ 500
Building	22,575	22,575
Equipment	15,638	14,141
Furniture	2,709	2,709
Leasehold improvements	86	86
Construction in progress	709	1,533
Property and equipment, gross	42,217	41,544
Less: Accumulated depreciation	(11,013)	(9,073)
Property and equipment, net	31,204	$ 32,471
Facility Purchase Price	21,500
Base Annual Rent Under Facility Lease	$ 1,638
Annual Rent Escalation	3.00%

Selected Consolidated Financi23

Selected Consolidated Financial Statement Information - Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2016	Jun. 30, 2016
Accrued Expenses
Salaries and bonus		$ 6,076	$ 4,305
Commissions		6,824	7,788
Accrued vacation		3,414	3,498
Accrued excise, sales and other taxes		3,509	3,372
Clinical studies		952	1,757
Legal settlement		1,775	3,872
Restructuring		613	1,337
Other accrued expenses		1,599	1,064
Total Accrued expenses		24,762	26,993
Litigation Settlement, Amount			$ 8,000
Payments for Legal Settlements	$ 3,000
Loss Contingency Accrual		$ 5,000
Litigation Settlement Interest, Percentage		1.80%
Litigation Settlement, Number of Quarterly Installment Payment		11

Selected Consolidated Financi24

Selected Consolidated Financial Statement Information - Restructuring and CEO Departure (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 643	$ 1,521
Payments for Restructuring	(878)
Restructuring expense		2,364
Restructuring accrual	613	1,337
Restructuring accrual, non-current	30
Chief Executive Officer
Severance Costs [Line Items]
Total expense related to the CEO departure		$ 1,507
Accrued severance	701
Accrued severance, non-current	$ 76

Selected Consolidated Financi25

Selected Consolidated Financial Statement Information - Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Other Liabilities
Legal settlement	$ 3,225	$ 4,128
Deferred compensation	368	684
Employee-related Liabilities, Noncurrent	105	610
Other liabilities	568	588
Total Other liabilities	$ 4,266	$ 6,010

Selected Consolidated Financi26

Selected Consolidated Financial Statement Information - Deferred Revenue (Details) $ in Thousands	Dec. 31, 2016USD ($)
Other Liabilities Disclosure [Abstract]
Deferred Revenue	$ 10,000

Deferred Compensation Plan - In

Deferred Compensation Plan - Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 644	$ 644
Unrealized Gains	77	40
Unrealized Losses	0	0
Fair Value	721	684
Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	644	644
Unrealized Gains	77	40
Unrealized Losses	0	0
Fair Value	$ 721	$ 684

Deferred Compensation Plan - Av

Deferred Compensation Plan - Available-for-sale Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	$ 721	$ 684
Mutual funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	721	684
Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	721	684
Recurring | Mutual funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	721	684
Recurring | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	460	425
Recurring | Level 1 | Mutual funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	460	425
Recurring | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	261	259
Recurring | Level 2 | Mutual funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total short-term investments	261	259
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 ($)	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2016
Deferred Compensation Arrangements [Abstract]
Deferred Compensation Liability, Current	$ 353,000
Deferred compensation	368,000		$ 684,000
Purchases of available-for-sale securities	0	$ 37,000
Proceeds from Sale 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%

Stock Options and Restricted 30

Stock Options and Restricted Stock Awards - Narrative (Details) - USD ($) $ in Thousands	Aug. 10, 2015	Sep. 30, 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]
Grant Date Fair Value of Restricted Stock Awards, Market Conditions		$ 4,032
Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares based on thresholds measuring total shareholder return	336,826

Stock Options and Restricted 31

Stock Options and Restricted Stock Awards - Stock Option Activity (Details)	6 Months Ended
	Dec. 31, 2016$ / sharesshares
Number of Options
Options outstanding, balance at beginning of period (in shares) | shares	606,879
Options exercised (in shares) | shares	(416,458)
Options expired (in shares) | shares	(9,381)
Options outstanding, balance at end of period (in shares) | shares	181,040
Weighted Average Exercise Price
Options outstanding at beginning of period (per share) | $ / shares	$ 10.14
Options exercised (per share) | $ / shares	10.51
Options expired (per share) | $ / shares	8.83
Options outstanding at end of period (per share) | $ / shares	$ 9.38

Stock Options and Restricted 32

Stock Options and Restricted Stock Awards - Restricted Stock Award Activity (Details)	6 Months Ended
	Dec. 31, 2016$ / sharesshares
Restricted Stock
Number of Shares
Awards outstanding, balance at beginning of period (in shares) | shares	957,689
Awards granted (in shares) | shares	240,238
Awards forfeited (in shares) | shares	(382,050)
Awards vested (in shares) | shares	(242,861)
Awards outstanding, balance at end of period (in shares) | shares	909,842
Weighted Average Fair Value
Awards outstanding, balance at beginning of period (per share) | $ / shares	$ 22.99
Awards granted (per share) | $ / shares	21.57
Awards forfeited (per share) | $ / shares	12.14
Awards vested (per share) | $ / shares	23.45
Awards outstanding, balance at end of period (per share) | $ / shares	$ 18.63
Performance Shares
Number of Shares
Awards granted (in shares) | shares	336,826
Weighted Average Fair Value
Awards granted (per share) | $ / shares	$ 11.97

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Rental expense	$ 149		$ 299	$ 321	$ 641
Lease expiration date		Mar. 31, 2020
Future Minimum Lease Payments:
Six months ended June 30, 2017	302			302
Fiscal 2,018	523			523
Fiscal 2,019	471			471
Fiscal 2,020	353			353
Future minimum lease payments	$ 1,649			$ 1,649

Earnings Per Share - EPS Reconc

Earnings Per Share - EPS Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Numerator
Net loss	$ 1,043	$ (15,163)	$ (815)	$ (28,424)
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic	(18)	0	0	0
Income From Continuing Operations Available to Common Stockholders	$ 1,025	$ (15,163)	$ (815)	$ (28,424)
Denominator
Weighted average shares outstanding, Basic	32,189,981	32,553,991	32,060,973	32,382,433
Weighted average common shares outstanding – diluted	32,804,305	32,553,991	32,060,973	32,382,433
Income (loss) per common share, basic	$ 0.03	$ (0.47)	$ (0.03)	$ (0.88)
Income (loss) per common share, diluted	$ 0.03	$ (0.47)	$ (0.03)	$ (0.88)
Stock Options
Denominator
Effect of dilutive share-based payment arrangements (in shares)	111,874	0	0	0
Restricted Stock Units
Denominator
Effect of dilutive share-based payment arrangements (in shares)	313,820	0	0	0
Performance Shares
Denominator
Effect of dilutive share-based payment arrangements (in shares)	188,630	0	0	0

Earnings Per Share - EPS Reco35

Earnings Per Share - EPS Reconciliation (Additional Information) (Details) - shares	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation (in shares)	181,040	606,879
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation (in shares)	350,771	305,031
Performance Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation (in shares)	336,826