Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-33383 | |
Entity Registrant Name | Super Micro Computer, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0353939 | |
Entity Address, Address Line One | 980 Rock Avenue | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95131 | |
City Area Code | 408 | |
Local Phone Number | 503-8000 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | SMCI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 51,906,873 | |
Entity Central Index Key | 0001375365 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 247,424 | $ 232,266 |
Accounts receivable, net of allowances of $1,776 and $2,591 at March 31, 2022 and June 30, 2021, respectively (including accounts receivable from related parties of $34,084 and $8,678 at March 31, 2022 and June 30, 2021, respectively) | 679,785 | 463,834 |
Inventories | 1,588,542 | 1,040,964 |
Prepaid expenses and other current assets (including receivables from related parties of $29,561 and $23,837 at March 31, 2022 and June 30, 2021, respectively) | 162,964 | 130,195 |
Total current assets | 2,678,715 | 1,867,259 |
Investment in equity investee | 4,778 | 4,578 |
Property, plant and equipment, net | 282,319 | 274,713 |
Deferred income taxes, net | 66,518 | 63,288 |
Other assets | 38,847 | 32,126 |
Total assets | 3,071,177 | 2,241,964 |
Current liabilities: | ||
Accounts payable (including amounts due to related parties of $87,266 and $70,096 at March 31, 2022 and June 30, 2021, respectively) | 779,561 | 612,336 |
Accrued liabilities (including amounts due to related parties of $15,315 and $18,528 at March 31, 2022 and June 30, 2021, respectively) | 181,448 | 178,850 |
Income taxes payable | 17,413 | 12,741 |
Short-term debt | 403,045 | 63,490 |
Deferred revenue | 114,688 | 101,479 |
Total current liabilities | 1,496,155 | 968,896 |
Deferred revenue, non-current | 115,063 | 100,838 |
Long-term debt | 144,423 | 34,700 |
Other long-term liabilities | 41,617 | 41,132 |
Total liabilities | 1,797,258 | 1,145,566 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital, $0.001 par value Authorized shares: 100,000; Outstanding shares: 51,509 and 50,582 at March 31, 2022 and June 30, 2021, respectively Issued shares: 51,509 and 50,582 at March 31, 2022 and June 30, 2021, respectively | 471,088 | 438,012 |
Accumulated other comprehensive income | 554 | 453 |
Retained earnings | 802,101 | 657,760 |
Total Super Micro Computer, Inc. stockholders’ equity | 1,273,743 | 1,096,225 |
Noncontrolling interest | 176 | 173 |
Total stockholders’ equity | 1,273,919 | 1,096,398 |
Total liabilities and stockholders’ equity | $ 3,071,177 | $ 2,241,964 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Stockholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares outstanding (in shares) | 51,870 | 50,582 |
Common stock, shares issued (in shares) | 51,870 | 50,582 |
Affiliated | ||
Current assets: | ||
Accounts receivable, allowance for credit loss | $ 1,776 | $ 2,591 |
Accounts receivable | 34,084 | 8,678 |
Prepaid expenses, related party | 29,561 | 23,837 |
Current liabilities: | ||
Accounts payable | 87,266 | 70,096 |
Accrued liabilities, related party | $ 15,315 | $ 18,528 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Net sales (including related party sales of $47,669 and $20,432 in the three months ended March 31, 2022 and 2021, respectively, and $120,206 and $58,853 in the nine months ended March 31, 2022 and 2021, respectively) | $ 1,355,490 | $ 895,881 | $ 3,560,639 | $ 2,488,437 |
Cost of sales (including related party purchases of $95,479 and $57,454 in the three months ended March 31, 2022 and 2021, respectively, and $279,893 and $167,845 in the nine months ended March 31, 2022 and 2021, respectively) | 1,144,715 | 772,864 | 3,047,982 | 2,099,410 |
Gross profit | 210,775 | 123,017 | 512,657 | 389,027 |
Operating expenses: | ||||
Research and development | 70,869 | 57,912 | 201,483 | 165,439 |
Sales and marketing | 22,356 | 21,826 | 65,940 | 62,858 |
General and administrative | 27,773 | 26,224 | 75,280 | 75,864 |
Total operating expenses | 120,998 | 105,962 | 342,703 | 304,161 |
Income from operations | 89,777 | 17,055 | 169,954 | 84,866 |
Other (expense) income, net | 4,663 | 2,017 | 4,106 | (1,363) |
Interest expense | (1,531) | (607) | (3,485) | (1,850) |
Income before income tax provision | 92,909 | 18,465 | 170,575 | 81,653 |
Income tax benefit (provision) | (16,192) | 227 | (27,116) | (8,541) |
Share of income (loss) from equity investee, net of taxes | 255 | (264) | 882 | (409) |
Net income | $ 76,972 | $ 18,428 | $ 144,341 | $ 72,703 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 1.49 | $ 0.36 | $ 2.82 | $ 1.41 |
Diluted (in dollars per share) | $ 1.43 | $ 0.35 | $ 2.70 | $ 1.35 |
Weighted-average shares used in calculation of net income per common share: | ||||
Basic (in shares) | 51,708 | 50,553 | 51,269 | 51,465 |
Diluted (in shares) | 53,786 | 53,218 | 53,401 | 53,747 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - Affiliated - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Related party sales | $ 47,669 | $ 20,432 | $ 120,206 | $ 58,853 |
Related party purchases | $ 95,479 | $ 57,454 | $ 279,893 | $ 167,845 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 76,972 | $ 18,428 | $ 144,341 | $ 72,703 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) | 5 | (34) | 101 | 514 |
Total other comprehensive income (loss) | 5 | (34) | 101 | 514 |
Total comprehensive income | $ 76,977 | $ 18,394 | $ 144,442 | $ 73,217 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income | Retained Earnings | Non-controlling Interest |
Beginning balance (in shares) at Jun. 30, 2020 | 53,741,828 | 1,333,125 | ||||
Beginning balance at Jun. 30, 2020 | $ 1,065,707 | $ 389,972 | $ (20,491) | $ (152) | $ 696,211 | $ 167 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options, net of taxes (in shares) | 1,195,414 | |||||
Exercise of stock options, net of taxes | 20,344 | $ 20,344 | ||||
Release of common stock shares upon vesting of restricted stock units (in shares) | 596,570 | |||||
Shares withheld for the withholding tax on vesting of restricted stock units (in shares) | (191,279) | |||||
Shares withheld for the withholding tax on vesting of restricted stock units | (5,780) | $ (5,780) | ||||
Stock repurchases and retirement (in shares) | (5,306,165) | (1,333,125) | ||||
Stock repurchases and retirement | (120,658) | $ (164) | $ (20,491) | (140,985) | ||
Stock-based compensation | 21,117 | $ 21,117 | ||||
Foreign currency translation gain (loss) | 514 | 514 | ||||
Net income | 72,704 | 72,703 | 1 | |||
Ending balance (in shares) at Mar. 31, 2021 | 50,036,368 | 0 | ||||
Ending balance at Mar. 31, 2021 | 1,053,948 | $ 425,489 | $ 0 | 362 | 627,929 | 168 |
Beginning balance (in shares) at Dec. 31, 2020 | 50,651,054 | 0 | ||||
Beginning balance at Dec. 31, 2020 | 1,064,220 | $ 410,522 | $ 0 | 396 | 653,129 | 173 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options, net of taxes (in shares) | 511,801 | |||||
Exercise of stock options, net of taxes | 9,577 | $ 9,577 | ||||
Release of common stock shares upon vesting of restricted stock units (in shares) | 186,034 | |||||
Shares withheld for the withholding tax on vesting of restricted stock units (in shares) | (61,982) | |||||
Shares withheld for the withholding tax on vesting of restricted stock units | (2,062) | $ (2,062) | ||||
Stock repurchases and retirement (in shares) | (1,250,539) | |||||
Stock repurchases and retirement | (43,670) | $ (42) | (43,628) | |||
Stock-based compensation | 7,494 | $ 7,494 | ||||
Foreign currency translation gain (loss) | (34) | (34) | ||||
Net income | 18,423 | 18,428 | (5) | |||
Ending balance (in shares) at Mar. 31, 2021 | 50,036,368 | 0 | ||||
Ending balance at Mar. 31, 2021 | $ 1,053,948 | $ 425,489 | $ 0 | 362 | 627,929 | 168 |
Beginning balance (in shares) at Jun. 30, 2021 | 50,582,000 | 50,582,078 | 0 | |||
Beginning balance at Jun. 30, 2021 | $ 1,096,398 | $ 438,012 | $ 0 | 453 | 657,760 | 173 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options, net of taxes (in shares) | 921,001 | 921,001 | ||||
Exercise of stock options, net of taxes | $ 15,951 | $ 15,951 | ||||
Release of common stock shares upon vesting of restricted stock units (in shares) | 535,469 | |||||
Shares withheld for the withholding tax on vesting of restricted stock units (in shares) | (168,375) | |||||
Shares withheld for the withholding tax on vesting of restricted stock units | (6,807) | $ (6,807) | ||||
Stock-based compensation | 23,932 | $ 23,932 | ||||
Foreign currency translation gain (loss) | 101 | 101 | ||||
Net income | $ 144,344 | 144,341 | 3 | |||
Ending balance (in shares) at Mar. 31, 2022 | 51,870,000 | 51,870,173 | 0 | |||
Ending balance at Mar. 31, 2022 | $ 1,273,919 | $ 471,088 | $ 0 | 554 | 802,101 | 176 |
Beginning balance (in shares) at Dec. 31, 2021 | 51,508,616 | 0 | ||||
Beginning balance at Dec. 31, 2021 | 1,186,845 | $ 460,990 | $ 0 | 549 | 725,129 | 177 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options, net of taxes (in shares) | 251,598 | |||||
Exercise of stock options, net of taxes | 4,363 | $ 4,363 | ||||
Release of common stock shares upon vesting of restricted stock units (in shares) | 161,873 | |||||
Shares withheld for the withholding tax on vesting of restricted stock units (in shares) | (51,914) | |||||
Shares withheld for the withholding tax on vesting of restricted stock units | (2,006) | $ (2,006) | ||||
Stock-based compensation | 7,741 | $ 7,741 | ||||
Foreign currency translation gain (loss) | 5 | 5 | ||||
Net income | $ 76,971 | 76,972 | (1) | |||
Ending balance (in shares) at Mar. 31, 2022 | 51,870,000 | 51,870,173 | 0 | |||
Ending balance at Mar. 31, 2022 | $ 1,273,919 | $ 471,088 | $ 0 | $ 554 | $ 802,101 | $ 176 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
OPERATING ACTIVITIES: | ||
Net income | $ 144,341 | $ 72,703 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24,049 | 21,304 |
Stock-based compensation expense | 23,932 | 21,117 |
Recovery of allowance for doubtful accounts | (815) | (629) |
Provision for excess and obsolete inventories | 13,875 | 4,844 |
Share of (income) loss from equity investee | (882) | 409 |
Foreign currency exchange (gain) loss | (8,157) | 1,097 |
Deferred income taxes, net | (3,230) | (2,726) |
Other | 1,007 | (792) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net (including changes in related party balances of $(25,405) and $(3,532) during the nine months ended March 31, 2022 and 2021, respectively) | (216,464) | (3,036) |
Inventories | (561,453) | (57,249) |
Prepaid expenses and other assets (including changes in related party balances of $(5,726) and $(442) during the nine months ended March 31, 2022 and 2021, respectively) | (32,750) | (25,039) |
Accounts payable (including changes in related party balances of $17,170 and $(18,296) during the nine months ended March 31, 2022 and 2021, respectively) | 173,031 | 45,301 |
Income taxes payable | 4,672 | 4,916 |
Deferred revenue | 27,434 | (13,726) |
Accrued liabilities (including changes in related party balances of $(3,213) and $(180) during the nine months ended March 31, 2022 and 2021, respectively) | 4,644 | (5,807) |
Other long-term liabilities (including changes in related party balances of $596 and $(1,699) during the nine months ended March 31, 2022 and 2021, respectively) | (8,892) | (3,295) |
Net cash provided by (used in) operating activities | (415,658) | 59,392 |
INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment (including payments to related parties of $2,505 and $5,845 during the nine months ended March 31, 2022 and 2021, respectively) | (34,157) | (44,627) |
Investment in a privately-held company | (1,100) | 0 |
Net cash used in investing activities | (35,257) | (44,627) |
FINANCING ACTIVITIES: | ||
Proceeds from borrowings, net of debt issuance costs | 938,075 | 62,225 |
Repayment of debt | (480,795) | (7,300) |
Proceeds from exercise of stock options, net of taxes | 15,951 | 20,344 |
Payment of withholding tax on vesting of restricted stock units | (6,807) | (5,780) |
Stock repurchases | 0 | (117,968) |
Payments of obligations under finance leases | (59) | 34 |
Net cash provided by (used in) by financing activities | 466,365 | (48,445) |
Effect of exchange rate fluctuations on cash | (304) | 362 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 15,146 | (33,318) |
Cash, cash equivalents and restricted cash at the beginning of the period | 233,449 | 212,390 |
Cash, cash equivalents and restricted cash at the end of the period | 248,595 | 179,072 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 2,990 | 1,400 |
Cash paid for taxes, net of refunds | 11,623 | 2,213 |
Non-cash investing and financing activities: | ||
Unpaid property, plant and equipment purchases (including due to related parties of $729 and $1,502 as of March 31, 2022 and 2021, respectively) | 7,464 | 7,662 |
Right of use ("ROU") assets obtained in exchange for operating lease commitments | 11,108 | 2,715 |
Unpaid stock repurchases | $ 0 | $ 2,690 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - Affiliated - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net cash provided by (used in) operating activities | ||
Increase (decrease) in accounts receivable, related parties | $ (25,405) | $ (3,532) |
Increase (decrease) in prepaid expenses and other current assets, related parties | (5,726) | (442) |
Increase (decrease) in accounts payable, related parties | 17,170 | (18,296) |
Increase (decrease) in accrued liability, related parties | (3,213) | (180) |
Increase (decrease) in other long-term liabilities, related parties | 596 | (1,699) |
Purchases of property, plant and equipment | 2,505 | 5,845 |
Unpaid property, plant and equipment purchases, related parties | $ 729 | $ 1,502 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Significant Accounting Policies and Estimates No material changes have been made to the significant accounting policies of Super Micro Computer, Inc., a corporation incorporated under the laws of Delaware, and its consolidated entities (together, the “Company”), disclosed in Note 1, "Organization and Summary of Significant Accounting Policies," in its Annual Report on Form 10-K, filed on August 27, 2021, for the year ended June 30, 2021. Management's estimates include, as applicable, the anticipated impacts of the coronavirus ("COVID-19") pandemic. Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements included herein reflect all adjustments, including normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, results of operations and cash flows for the periods presented. The consolidated results of operations for the three and nine months ended March 31, 2022 are not necessarily indicative of the results that may be expected for future quarters or for the fiscal year ending June 30, 2022. Concentration of Supplier Risk Certain materials used by the Company in the manufacturing of its products are available from a limited number of suppliers. Shortages could occur in these materials due to an interruption of supply or increased demand in the industry. Two suppliers accounted for 13.0% and 19.4% of total purchases for the three months ended March 31, 2022, and two suppliers accounted for 21.4% and 14.7% of total purchases for the three months ended March 31, 2021. Two suppliers accounted for 18.0% and 11.4% of total purchases for the nine months ended March 31, 2022, and two suppliers accounted for 21.1% and 13.8% of total purchases for the nine months ended March 31, 2021. Purchases from Ablecom, and Compuware, related parties of the Company (see Note 8, "Related Party Transactions") accounted for a combined 8.2% and 7.3% of total cost of sales for the three months ended March 31, 2022 and 2021, respectively, and a combined 9.0% and 7.9% of total cost of sales for the nine months ended March 31, 2022 and 2021, respectively. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, investment in an auction rate security and accounts receivable. One customer accounted for 10.2% of the net sales for the three months ended March 31, 2022 and no customer accounted for 10% or more of the net sales for the nine months ended March 31, 2022 or for the three and nine months ended March 31, 2021. No customer accounted for greater than 10% of the Company's accounts receivable, net as of March 31, 2022, whereas one customer accounted for 13.5% of accounts receivable, net as of June 30, 2021. Accounting Pronouncements Recently Adopted In December 2019, the FASB issued amended guidance, Simplifying the Accounting for Income Taxes , to remove certain exceptions to the general principles from ASC 740 - Income Taxes, and to improve consistent application of U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The guidance is effective for the Company from July 1, 2021. The adoption of the guidance did not have a material impact on its condensed consolidated financial statements and disclosures. Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued authoritative guidance, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The guidance also establishes (1) a general contract modification principle that entities can apply in other areas that may be affected by reference rate reform and (2) certain elective hedge accounting expedients. The amendments in this update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. In January 2021, the FASB issued further guidance on this topic, which clarified the scope and application of the original guidance. The amendments are effective for all entities on December 31, 2022, with early adoption permitted for an interim period beginning after March 12, 2020. The Company has loans and lines of credit with various financial institutions. Benchmark interest rates are used to calculate the interest on borrowings under the Chang Hwa Bank, CTBC, HSBC, Mega Bank Credit Facilities. LIBOR is used to calculate the interest on borrowings under the Company's 2018 Bank of America Credit Facility and E.SUN Credit Facility. The 2018 Bank of America Credit Facility was amended on June 28, 2021 which provided for a new maturity date of June 28, 2026 and fallback terms related to LIBOR replacement mechanics. On March 3, 2022, the 2018 Bank of America Credit Facility was amended to, among other items, increase the size of the facility from $200.0 million to $350.0 million and update provisions relating to payments and LIBOR replacement mechanics to secured overnight financing rate (“SOFR"). As these amendments had other contemporaneous changes to the facility including the amount and not just directly related to LIBOR replacement, optional expedients under this guidance cannot be elected. The Company is currently evaluating the overall impact of adoption of the guidance on its consolidated financial statements and disclosures. |
Revenue
Revenue | 9 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The Company disaggregates revenue by type of product and by geographical market in order to depict the nature, amount, and timing of revenue and cash flows. Service revenues, which are less than 10%, are not a significant component of total revenue, and are aggregated within the respective categories. The following is a summary of net sales by product type (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Server and storage systems $ 1,145,869 $ 693,339 $ 2,981,777 $ 1,953,838 Subsystems and accessories 209,621 202,542 578,862 534,599 Total $ 1,355,490 $ 895,881 $ 3,560,639 $ 2,488,437 Server and storage systems constitute an assembly and integration of subsystems and accessories, and related services. Subsystems and accessories are comprised of server boards, chassis and accessories. International net sales are based on the country and geographic region to which the products were shipped. The following is a summary for the three and nine months ended March 31, 2022 and 2021, of net sales by geographic region (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 United States $ 762,418 $ 499,061 $ 1,961,573 $ 1,458,249 Asia 309,972 207,204 857,165 495,326 Europe 205,444 162,285 600,589 429,193 Other 77,656 27,331 141,312 105,669 $ 1,355,490 $ 895,881 $ 3,560,639 $ 2,488,437 Contract Balances Generally, the payment terms of the Company’s offerings range from 30 to 60 days. In certain instances, customers may prepay for products and services in advance of delivery. Receivables relate to the Company’s unconditional right to consideration for performance obligations either partially or fully completed. Contract assets are rights to consideration in exchange for goods or services that the Company has transferred to a customer when such right is conditional on something other than the passage of time. Such contract assets are insignificant to the Company’s condensed consolidated financial statements. Contract liabilities consist of deferred revenue and relate to amounts invoiced to or advance consideration received from customers, which precede the Company’s satisfaction of the associated performance obligation(s). The Company’s deferred revenue primarily results from customer payments received upfront for extended warranties and on-site services because these performance obligations are satisfied over time. Additionally, at times, deferred revenue may fluctuate due to the timing of advance consideration received from non-cancellable non-refundable contract liabilities relating to the sale of future products. Revenue recognized during the three and nine months ended March 31, 2022, which was included in the deferred revenue balance as of June 30, 2021 of $202.3 million, was $23.0 million and $79.7 million, respectively. Deferred revenue increased $27.4 million as of March 31, 2022 as compared to the fiscal year ended June 30, 2021 mainly because the deferral on invoiced amounts for service contracts during the period exceeded the recognition of revenue from contracts entered into in prior periods. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent in aggregate the amount of transaction price that has been allocated to performance obligations not delivered, or only partially delivered, as of the end of the reporting period. The Company applies the exemption to not disclose information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less. These performance obligations generally consist of services, such as on-site services, including integration services and extended warranty services that are contracted for one year or less, and products for which control has not yet been transferred. The value of the transaction price allocated to remaining performance obligations as of March 31, 2022 was $229.8 million . The Company expects to recognize approximately 50% of remaining performance obligations as revenue in the next 12 months, and the remainder thereafter. Capitalized Contract Acquisition Costs and Fulfillment Cost Contract acquisition costs are those incremental costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Contract acquisition costs consist primarily of incentive bonuses. Contract acquisition costs are considered incremental and recoverable costs of obtaining and fulfilling a contract with a customer and are therefore capitalizable. The Company applies the practical expedient to expense incentive bonus costs as incurred if the amortization period would be one year or less, generally upon delivery of the associated server and storage systems or components. Where the amortization period of the contract cost would be more than a year, the Company applies judgment in the allocation of the incentive bonus cost asset between hardware and service performance obligations and expenses the cost allocated to the hardware performance obligations upon delivery of associated server and storage systems or components and amortizes the cost allocated to service performance obligations over the period the services are expected to be provided. Contract acquisition costs allocated to service performance obligations that are subject to capitalization are insignificant to the Company’s condensed consolidated financial statements. Contract fulfillment costs consist of costs paid in advance for outsourced services provided by third parties to the extent they are not in the scope of other guidance. Fulfillment costs paid in advance for outsourced services provided by third parties are capitalized and amortized over the period the services are expected to be provided. Such fulfillment costs are insignificant to the Company’s condensed consolidated financial statements. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share The following table shows the computation of basic and diluted net income per common share for the three and nine months ended March 31, 2022 and 2021 (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Numerator: Net income $ 76,972 $ 18,428 $ 144,341 $ 72,703 Denominator: Weighted-average shares outstanding 51,708 50,553 51,269 51,465 Effect of dilutive securities 2,079 2,665 2,132 2,282 Weighted-average diluted shares 53,786 53,218 53,401 53,747 Basic net income per common share $ 1.49 $ 0.36 $ 2.82 $ 1.41 Diluted net income per common share $ 1.43 $ 0.35 $ 2.70 $ 1.35 For the three and nine months ended March 31, 2022 and 2021, the Company had stock options, restricted stock units ("RSUs") and performance based restricted stock units ("PRSUs") outstanding that could potentially dilute basic earnings per share in the future, but were excluded from the computation of diluted net income per share in the periods presented, as their effect would have been anti-dilutive. The anti-dilutive common share equivalents resulting from outstanding equity awards were 452,611 and 578,892 for the three months ended March 31, 2022 and 2021, respectively, and 452,182 and 617,807 for the nine months ended March 31, 2022 and 2021, respectively. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components The following tables provide details of the selected balance sheet items (in thousands): Inventories: March 31, 2022 June 30, 2021 Finished goods $ 994,184 $ 761,694 Work in process 253,246 80,472 Purchased parts and raw materials 341,112 198,798 Total inventories $ 1,588,542 $ 1,040,964 During the three and nine months ended March 31, 2022, the Company recorded a net provision for excess and obsolete inventory to cost of sales totaling $10.2 million and $13.9 million, respectively, and $2.9 million and $4.6 million for the three and nine months ended March 31, 2021, respectively. The Company classifies subsystems and accessories that may be sold separately or incorporated into systems as finished goods. Prepaid Expenses and Other Current Assets: March 31, 2022 June 30, 2021 Other receivables (1) $ 139,380 $ 99,921 Prepaid expenses 7,302 6,719 Deferred service costs 5,365 4,900 Prepaid income tax 341 12,288 Restricted cash 251 251 Others 10,325 6,116 Total prepaid expenses and other current assets $ 162,964 $ 130,195 __________________________ (1) Includes other receivables from contract manufacturers based on certain buy-sell arrangements of $96.0 million and $76.2 million as of March 31, 2022 and June 30, 2021, respectively. Cash, cash equivalents and restricted cash: March 31, 2022 June 30, 2021 Cash and cash equivalents $ 247,424 $ 232,266 Restricted cash included in prepaid expenses and other current assets 251 251 Restricted cash included in other assets 920 932 Total cash, cash equivalents and restricted cash $ 248,595 $ 233,449 Property, Plant, and Equipment: March 31, 2022 June 30, 2021 Buildings $ 143,509 $ 86,930 Machinery and equipment 111,714 97,671 Land 84,616 76,421 Building and leasehold improvements 48,846 26,640 Furniture and fixtures 32,590 22,843 Software 23,333 22,592 Building construction in progress (1) 303 87,438 444,911 420,535 Accumulated depreciation and amortization (162,592) (145,822) Property, plant and equipment, net $ 282,319 $ 274,713 __________________________ (1) Primarily relates to the development and construction costs associated with the Company’s Green Computing Park located in San Jose, California, and a new building in Taiwan. Other Assets: March 31, 2022 June 30, 2021 Operating lease right-of-use asset $ 25,338 $ 20,047 Deferred service costs, non-current 6,170 5,421 Prepaid expense, non-current 1,911 1,973 Investment in auction rate security 1,556 1,556 Deposits 1,118 1,669 Restricted cash, non-current 920 932 Other 1,834 528 Total other assets $ 38,847 $ 32,126 Accrued Liabilities: March 31, 2022 June 30, 2021 Accrued payroll and related expenses $ 45,837 $ 45,770 Contract manufacturing liabilities 35,032 45,319 Customer deposits 23,810 32,419 Accrued warranty costs 9,322 10,185 Accrued cooperative marketing expenses 8,609 5,652 Operating lease liability 7,291 6,322 Accrued professional fees 3,381 2,737 Accrued legal liabilities 18,250 — Other 29,916 30,446 Total accrued liabilities $ 181,448 $ 178,850 Performance Awards Liability In March 2020, the Board of Directors (the “Board”) approved performance bonuses for the Chief Executive Officer, a senior executive and two members of the Board, which payments will be earned when specified market and performance conditions are achieved. The Chief Executive Officer’s total cash bonus opportunity was $8.1 million, divided into two equal tranches. Each tranche would be earned if the average closing price for the Company’s common stock reached specified targets. The Board retained the flexibility to reduce the amount payable under the first tranche (but not the second tranche) based on performance goals. Both price targets were reached during the fiscal year ended June 30, 2021, and the second tranche totaled $4.0 million was paid in full. As of June 30, 2021, the Company also expected it would likely pay the first tranche in full, and therefore recorded an expense of $3.6 million since March 2020 relating to the first tranche. In September 2021, after the Company had closed its books for the year ended June 30, 2021, the Board decided to exercise its discretion to reduce the amount to be paid to the Chief Executive for the first tranche to $2.0 million, which was paid in the quarter ended December 31, 2021. As a result of the Board’s decision to reduce the amount to be paid under the first tranche, the Company adjusted the $3.6 million expense previously recorded for the first tranche to the new amount of $2.0 million, which resulted in the Company recognizing a $1.6 million benefit from this adjustment during the quarter ended September 30, 2021. For the three months and nine months ended March 31, 2021, $2.5 million and $5.1 million of expense was recognized, respectively. There was no expense or benefit related to this bonus for the three months ended March 31, 2022 . For the nine months ended March 31, 2022 , the $1.6 million benefit described above is included. Other Long-term Liabilities: March 31, 2022 June 30, 2021 Accrued unrecognized tax benefits including related interests and penalties, non-current $ 19,427 $ 17,841 Operating lease liability, non-current 18,416 14,539 Accrued warranty costs, non-current 2,673 2,678 Other 1,101 6,074 Total other long-term liabilities $ 41,617 $ 41,132 Product Warranties: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Balance, beginning of the period $ 11,583 $ 13,503 $ 12,863 $ 12,379 Provision for warranty 7,514 6,791 19,956 22,250 Costs utilized (7,797) (7,441) (21,717) (22,501) Change in estimated liability for pre-existing warranties 695 672 893 1,397 Balance, end of the period 11,995 13,525 11,995 13,525 Current portion 9,322 10,813 9,322 10,813 Non-current portion $ 2,673 $ 2,712 $ 2,673 $ 2,712 |
Fair Value Disclosure
Fair Value Disclosure | 9 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value DisclosureThe financial instruments of the Company measured at fair value on a recurring basis are included in cash equivalents, other assets and accrued liabilities. The Company classifies its financial instruments, except for its investment in an auction rate security, within Level 1 or Level 2 in the fair value hierarchy because the Company uses quoted prices in active markets or alternative pricing sources and models using market observable inputs to determine their fair value. The Company’s investment in an auction rate security is classified within Level 3 of the fair value hierarchy as the determination of its fair value was not based on observable inputs as of March 31, 2022 and June 30, 2021. The Company is using the discounted cash flow method to estimate the fair value of the auction rate security at each period end and the following assumptions: (i) the expected yield based on observable market rate of similar securities, (ii) the security coupon rate that is reset monthly, (iii) the estimated holding period and (iv) a liquidity discount. The liquidity discount assumption is based on the management estimate of lack of marketability discount of similar securities and is determined based on the analysis of financial market trends over time, recent redemptions of securities and other market activities. The Company performed a sensitivity analysis and applying a change of either plus or minus 100 basis points in the liquidity discount does not result in a significantly higher or lower fair value measurement of the auction rate security as of March 31, 2022. Financial Assets and Liabilities Measured on a Recurring Basis The following table sets forth the Company’s financial instruments as of March 31, 2022 and June 30, 2021, which are measured at fair value on a recurring basis by level within the fair value hierarchy. These are classified based on the lowest level of input that is significant to the fair value measurement (in thousands): March 31, 2022 Level 1 Level 2 Level 3 Asset at Assets Money market funds (1) $ 152 $ — $ — $ 152 Certificates of deposit (2) — 847 — 847 Auction rate security — — 1,556 1,556 Total assets measured at fair value $ 152 $ 847 $ 1,556 $ 2,555 June 30, 2021 Level 1 Level 2 Level 3 Asset at Assets Money market funds (1) $ 151 $ — $ — $ 151 Certificates of deposit (2) — 863 — 863 Auction rate security — — 1,556 1,556 Total assets measured at fair value $ 151 $ 863 $ 1,556 $ 2,570 (1) $0.2 million and $0.2 million in money market funds are included in restricted cash, non-current in other assets in the condensed consolidated balance sheets as of March 31, 2022 and June 30, 2021, respectively. (2) $0.2 million and $0.2 million in certificates of deposit are included in cash and cash equivalents, $0.3 million and $0.3 million in certificates of deposit are included in prepaid expenses and other assets, and $0.4 million and $0.4 million in certificates of deposit are included in restricted cash, non-current in other assets in the condensed consolidated balance sheets as of March 31, 2022 and June 30, 2021, respectively. On a quarterly basis, the Company also evaluates the current expected credit loss by co nsidering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. For the three and nine months ended March 31, 2022, the credit losses related to the Company’s investments were not significant. There was no movement in the balances of the Company's financial assets measured at fair value on a recurring basis, consisting of investment in an auction rate security, using significant unobservable inputs (Level 3) for the three and nine months ended March 31, 2022 and 2021. There were no transfers between Level 1, Level 2 or Level 3 financial instruments in the three and nine months ended March 31, 2022 and 2021. The following is a summary of the Company’s investment in an auction rate security as of March 31, 2022 and June 30, 2021 (in thousands): Cost Basis Gross Gross Fair Value Auction rate security $ 1,750 $ — $ (194) $ 1,556 No gain or loss was recognized in other comprehensive income for the auction rate security for the three and nine months ended March 31, 2022 and 2021. The Company measures the fair value of outstanding debt for disclosure purposes on a recurring basis. As of March 31, 2022 and June 30, 2021, total debt of $547.5 million and $98.2 million, respectively, was reported at amortized cost. This outstanding debt was classified as Level 2 as it was not actively traded. The amortized cost of the outstanding debt approximates the fair value. Other Financial Assets - Investments into Non-Marketable Equity Securities The Company's non-marketable equity securities are investments in privately held companies without readily determinable fair values in the amount of $1.2 million and $0.1 million as of March 31, 2022 and June 30, 2021, respectively. The Company accounts for these investments at cost less impairment, if any, plus or minus changes from observable price changes in orderly transactions for the identical or similar investments by the same issuer. During the three and nine months ended March 31, 2022 and 2021, the Company did not record any upward or downward adjustments to the carrying values of the non-marketable equity securities related to observable price changes. The Company also did not record any impairment to the carrying values of the non-marketable equity securities during the three and nine months ended March 31, 2022 and 2021. |
Short-term and Long-term Debt
Short-term and Long-term Debt | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Short-term and Long-term Debt | Short-term and Long-term Debt Short-term and long-term debt obligations as of March 31, 2022 and June 30, 2021 consisted of the following (in thousands): March 31, June 30, 2022 2021 Line of credit: Bank of America $ 241,469 $ — CTBC Bank 101,000 18,000 HSBC Bank 30,000 — E.SUN Bank 23,000 20,400 Total line of credit 395,469 38,400 Term loans: CTBC Bank term loan, due August 31, 2022 $ — $ 25,090 CTBC Bank term loan, due June 4, 2030 41,718 34,700 CTBC Bank term loan, due December 27, 2027 5,505 — E.SUN Bank term loan, due September 15, 2026 28,138 — Mega Bank term loan, due September 15, 2026 41,803 — Chang Hwa Bank term loan due October 15, 2026 34,835 — Total term loans 151,999 59,790 Total debt 547,468 98,190 Short-term debt and current portion of long-term debt 403,045 63,490 Debt, non-current $ 144,423 $ 34,700 Activities under Revolving Lines of Credit and Term Loans Bank of America 2018 Bank of America Credit Facility In April 2018, the Company entered into a revolving line of credit with Bank of America for up to $250.0 million (as amended from time to time, the "2018 Bank of America Credit Facility"). On March 3, 2022, the 2018 Bank of America Credit Facility was amended to, among other items, increase the size of the facility from $200.0 million to $350.0 million and change provisions relating to payments and LIBOR replacement mechanics to secured overnight financing rate (“SOFR"). The obligations bear a base interest rate plus 0.5% to 1.5% based on the SOFR availability. The amendment was accounted for as a modification and the impact was immaterial to the consolidated financial statements. Prior to that, on June 28, 2021, the 2018 Bank of America Credit Facility was amended to, among other items, extend the maturity to June 28, 2026 and increase the maximum amount that the Company can request the facility be increased from $100 million to $150 million. Interest accrued on any loans under the 2018 Bank of America Credit Facility is due on the first day of each month, and the loans are due and payable in full on the termination date of the 2018 Bank of America Credit Facility. Voluntary prepayments are permitted without early repayment fees or penalties. Subject to customary exceptions, the 2018 Bank of America Credit Facility is secured by substantially all of Super Micro Computer’s assets, other than real property assets. Under the terms of the 2018 Bank of America Credit Facility, the Company is not permitted to pay any dividends. The 2018 Bank of America Credit Facility contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company and its subsidiaries and contains a financial covenant, which requires that the Company maintain a certain fixed charge coverage ratio, for each twelve-month period while in a Trigger Period, as defined in the agreement, is in effect. As of March 31, 2022, the total outstanding borrowings under the 2018 Bank of America Credit Facility were $241.5 million. As of June 30, 2021, the Company had no outstanding borrowings under the 2018 Bank of America Credit Facility. The interest rates under the 2018 Bank of America Credit Facility as of March 31, 2022 and June 30, 2021 range from 1.50% to 1.54%. The balance of debt issuance costs outstanding as of March 31, 2022 and June 30, 2021 was $0.8 million and $0.5 million, respectively. The Company is in compliance with all the covenants under the 2018 Bank of America Credit Facility, and as of March 31, 2022, the Company's available borrowing capacity was $108.5 million , subject to the borrowing base limitation and compliance with other applicable terms. On March 23, 2022 (the “Effective Date”), the Company through its Taiwan subsidiary entered into an Uncommitted Facility Agreement for credit lines with Bank of America – Taipei Branch (the “2022 Bank of America Credit Facility”), for an amount not to exceed in aggregate $20.0 million. The interest rate will be quoted by Bank of America – Taipei Branch for each drawdown. As of March 31, 2022, there were no outstanding borrowings under this Bank of America Credit Facility. CTBC Bank 2021 CTBC Credit Lines The Company through its Taiwan subsidiary was party to (i) that certain credit agreement, dated May 6, 2020, with CTBC Bank Co., Ltd. (“CTBC Bank”), which provided for a ten-year, non-revolving term loan facility (the “2020 CTBC Term Loan Facility”) to obtain up to NTD 1,200.0 million ($40.7 million U.S. dollar equivalent) and (ii) that certain credit agreement, dated August 24, 2020, with CTBC Bank (the “CTBC Credit Facility”), which provided for total borrowings of up to $50.0 million (collectively, the “Prior CTBC Credit Lines”). On July 20, 2021 (the “Effective Date”), the Company through its Taiwan subsidiary entered into a general agreement for omnibus credit lines with CTBC Bank (the “2021 CTBC Credit Lines), which replaced the Prior CTBC Credit Lines in their entirety and permit borrowings, from time to time, pursuant to (i) a term loan facility of up to NTD 1,550.0 million ($55.4 million U.S. dollar equivalents) including the existing 2020 CTBC Term Loan Facility of NTD 1,200.0 million ($42.9 million U.S. dollar equivalents) and a new 75-month, non-revolving term loan facility of NTD 350.0 million ($12.5 million U.S. dollar equivalents) to use to purchase machinery and equipment for the Company’s Bade Manufacturing Facility located in Taiwan (the “2021 CTBC Machine Loan”), and (ii) a line of credit facility of up to $105.0 million (the “2021 CTBC Credit Facility”), which increased the borrowing capacity of CTBC Credit Facility. The 2021 CTBC Credit Facility provides ( i) a 12-month NTD 1,250.0 million ($44.7 million U.S. dollar equivalent) term loan facility secured by the land and building located in Bade, Taiwan with an interest rate equal to the lender's established NTD interest rate plus 0.50% per annum which is adjusted monthly, which term loan facility also includes a 12-month guarantee of up to NTD 100.0 million ($3.6 million U.S. dollar equivalent) with an annual fee equal to 0.50% per annum, and (ii) a 12-month revolving line of credit of up to 100% of eligible accounts receivable in an aggregate amount of up to $105.0 million with an interest rate equal to the lender's established USD interest rate plus 0.70% to 0.75% per annum which is adjusted monthly. Interest rates are to be established according to individual credit arrangements established pursuant to the 2021 CTBC Credit Lines, which interest rates shall be subject to adjustment depending on the satisfaction of certain conditions. Term loans made pursuant to the 2021 CTBC Credit Lines are secured by certain of the Taiwan subsidiary’s assets, including certain property, land, plant, and equipment. There are various financial covenants under the 2021 CTBC Credit Lines, including current ratio, debt service coverage ratio, and financial debt ratio requirements. Amounts outstanding under the Prior CTBC Credit Lines on the Effective Date were assumed by the 2021 CTBC Credit Lines. As of March 31, 2022 and June 30, 2021, the amounts outstanding under the 2020 CTBC Term Loan Facility were $41.7 million and $34.7 million, respectively. The interest rates for these loans were 0.70% per annum as of March 31, 2022, and 0.45% as of June 30, 2021. Under the 2021 CTBC Machine Loan, the amounts outstanding were $5.5 million on March 31, 2022. The interest rates for this loan was 0.90% per annum as of March 31, 2022. As of June 30, 2021, there were no outstanding borrowings under the 2021 CTBC Machine Loan. The total outstanding borrowings under the 2021 CTBC Credit Facility term loan were denominated in NTD and remeasured into U.S. dollars of $0.0 million and $25.1 million at March 31, 2022 and June 30, 2021, respectively. The 2021 CTBC Credit Facility term loan was repaid on October 26, 2021. The interest rate for the 2021 CTBC Credit Facility term loan was 0.75% per annum as of June 30, 2021. As of March 31, 2022 and June 30, 2021, the outstanding borrowings under the 2021 CTBC Credit Facility revolving line of credit were $101.0 million and $18.0 million, respectively. The interest rates for these loans ranges from 0.94% to 1.40% per annum as of March 31, 2022 and 0.98% per annum as of June 30, 2021. As of March 31, 2022, the amount available for future borrowing under the 2021 CTBC Credit Facility was $4.0 million. As of March 31, 2022, the net book value of land and building located in Bade, Taiwan, collateralizing the 2021 CTBC Credit Lines was $77.7 million. The financial covenants under the 2021 CTBC Credit Lines will be reviewed by CTBC Bank every six months on June 30 and December 31. E.SUN Bank 2021 E.SUN Bank Credit Facility The Company through its Taiwan subsidiary was party to that certain General Credit Agreement, dated December 2, 2020, with E.SUN Bank (“E.SUN Bank”), which provided for the issuance of loans, advances, acceptances, bills, bank guarantees, overdrafts, letters of credit, and other types of drawdown instruments up to a credit limit of US$30.0 million (the “Prior E.SUN Bank Credit Facility”). The term of the Prior E.SUN Bank Credit Facility expired on September 18, 2021. On September 13, 2021 (the “E.SUN Bank Effective Date”), the Company through its Taiwan subsidiary entered into a new General Credit Agreement with E.SUN Bank, which replaced the Prior E.SUN Bank Credit Facility (the “2021 E.SUN Bank Credit Facility”). The 2021 E.SUN Bank Credit Facility permits borrowings of up to (i) NTD 1,600.0 million ($57.6 million U.S. dollar equivalent) and (ii) $30.0 million as loans, advances, acceptances, bills, bank guarantees, overdrafts, letters of credit, and other types of drawdown instruments. Other terms of the 2021 E.SUN Bank Credit Facility are substantially identical to the Prior E.SUN Bank Credit Facility. Generally, interest for base rate loans made under the 2021 E.SUN Bank Credit Facility are based upon an average interbank overnight call loan rate in the finance industry (such as LIBOR or TAIFX) plus a fixed margin, and is subject to occasional adjustment. The 2021 E.SUN Bank Credit Facility has customary default provisions permitting E.SUN Bank to terminate or reduce the credit limit, shorten the credit period, or deem all liabilities due and payable, including in the event the Taiwan subsidiary has an overdue liability at another financial organization. There are various financial covenants under the 2021 E.SUN Bank Credit Facility, including current ratio, net debt ratio, and interest coverage requirements to be reviewed on a yearly basis at fiscal year end. Terms for specific drawdown instruments issued under the 2021 E.SUN Bank Credit Facility, such as credit amount, term of use, mode of drawdown, specific lending rate, and other relevant terms, are to be set forth in Notifications and Confirmation of Credit Conditions (a “Notification and Confirmation”) negotiated with E.SUN Bank. A Notification and Confirmation was entered into on the E.SUN Bank Effective Date for (i) a five-year, non-revolving term loan facility to obtain up to NTD 1,600.0 million ($57.6 million U.S. dollar equivalent) in financing for use in research and development activities (the “Term Loan”), and (ii) a $30.0 million import loan (the “Import Loan”) with a tenor of 120 days. As of March 31, 2022, the total outstanding borrowings under the Term Loan were denominated in NTD and remeasured into U.S. dollars of $28.1 million and the interest rates for these loans were 1.245% per annum. As of March 31, 2022 and June 30, 2021 , the amounts outstanding under the Import Loan were $23.0 million and $20.4 million, respectively. The interest rate for the quarter ended March 31, 2022 ranges from 1.09% to 1.33% per annum. The interest rate for the quarter ended June 30, 2021 ranges from 1.00% to 1.29% per annum . At March 31, 2022, the amount available for future borrowing under the Import Loan was $7.0 million . Mega Bank Mega Bank Credit Facilities On September 13, 2021 (the “Mega Bank Effective Date”), the Company through its Taiwan subsidiary entered into a NTD 1,200.0 million ($43.2 million U.S. dollar equivalent) credit facility (the “Mega Bank Credit Facility”) with Mega International Commercial Bank (“Mega Bank”). The Mega Bank Credit Facility will be used to support manufacturing activities (such as purchase of materials and components), and to provide medium-term working capital (the “Permitted Uses”). Drawdowns under the Mega Bank Credit Facility may be made through December 31, 2024, with the first drawdown date not later than November 5, 2021. The first drawdown date was on October 4, 2021. Drawdowns may be in amounts of up to 80% of Permitted Uses certified to the Bank in drawdown certificates. The interest rate depends upon the amount borrowed under Mega Bank Credit Facility, and as of the Mega Bank Effective Date, ranged from 0.645% to 0.845% per annum. The interest rate is subject to adjustment in certain circumstances, such as events of default. Interest is payable monthly. Principal payments for amounts borrowed commence on the 15 th day of the month following two years after the first drawdown, and are repaid in monthly installments over a period of three years thereafter. The Mega Bank Credit Facility is unsecured and has customary default provisions permitting Mega Bank to reduce or cancel the extension of credit, or declare all principal and interest amounts immediately due and payable. As of March 31, 2022, the total outstanding borrowings under the Mega Bank Credit Facility were denominated in NTD and remeasured into U.S. dollars of $41.8 million and the interest rates ranged from 0.895% to 1.095% per annum. Credit Agreement with Mega Bank On April 25, 2022, the Company through its Taiwan subsidiary, entered into a $20.0 million (or foreign currency equivalent) (the “Credit Limit”) Omnibus Credit Authorization Agreement (the “Omnibus Credit Authorization Agreement”) with Mega Bank. The Omnibus Credit Authorization Agreement permits individual credit authorizations subject to specified drawdown conditions up to the Credit Limit (on a revolving basis) to be used as loans for the purchase of materials or supplies. During the loan period, the Company is required to maintain 100% direct or indirect share ownership of the Taiwan subsidiary. Pursuant to the Omnibus Credit Authorization Agreement, the Taiwan subsidiary also entered into both a Credit Authorization Agreement (the “Credit Authorization Agreement”) and Credit Authorization Approval Notice (the “Credit Authorization Approval Notice”) with Mega Bank and associated branch of Mega Bank, respectively. Pursuant to such Agreement and Notice, Mega Bank permits the Taiwan subsidiary to make drawdowns up to the Credit Limit for short-term loans for material purchases with a tenor not to exceed 120 days on a revolving basis. Drawdowns under the Mega Bank facility may be made through March 2023. The interest rate for each individual credit authorization is adjusted according to the Mega Bank’s USD basic loan interest rate at the time of signing the agreement which was 0.90% per annum. Interest on such drawdowns is based upon TAIFX OFFER for six months plus 0.23% and divided by 0.946, subject to periodic adjustment and adjustment in certain other circumstances, such as failure to maintain a sufficient balance in a demand deposit account with Mega Bank which are subject to the bank’s right of set off. The interest rate shall be adjusted once every month but shall not be lower than the USD basic loan interest rate plus 0.1%. If the loan involves the acceptance of bill of exchange, the Company would pay handling fee at the annual rate of 0.75% calculated based on the number of actual acceptance days. The fee is paid in full upon acceptance and a minimum handling fee of NTD 400 is charged for each transaction. Amounts borrowed are otherwise unsecured, and the Credit Authorization Agreement has customary default provisions permitting Mega Bank to reduce the extension of credit, shorten the term for loan repayment or declare all of the amounts immediately due and payable. The Company is not a guarantor under the Credit Authorization Agreement or Credit Authorization Approval Notice. Chang Hwa Bank Chang Hwa Bank Credit Facility On October 5, 2021 (the “Chang Hwa Bank Effective Date”), the Company through its Taiwan subsidiary entered into a credit facility (the “Chang Hwa Bank Credit Facility”) with Chang Hwa Commercial Bank, Ltd. (“Chang Hwa Bank”). The Chang Hwa Bank Credit Facility permits borrowings of up to NTD 1,000.0 million ($36.0 million U.S. dollar equivalent), including up to $20.0 million as loans, advances, acceptances, bills, bank guarantees, overdrafts, letters of credit, and other types of drawdown instruments. The Chang Hwa Bank Credit Facility has customary default provisions permitting Chang Hwa Bank to terminate or reduce the credit limit, shorten the credit period, or deem all liabilities due and payable, including in cross-default provisions with respect to the other Taiwan subsidiary debt obligations. Under the Chang Hwa Bank Credit Facility, Chang Hwa Bank has the right to demand collateral for debts owed. As of March 31, 2022, the total outstanding borrowings under the Chang Hwa Bank Credit Facility were denominated in NTD and remeasured into U.S. dollars of $34.8 million and the interest rate is 1.05% per annum. Terms for specific drawdown instruments issued under the Chang Hwa Bank Credit Facility, such as credit amount, term of use, mode of drawdown, specific lending rate, and other relevant terms, are to be set forth in separate loan contracts (each, a “Loan Contract”) negotiated with Chang Hwa Bank. On the Chang Hwa Bank Effective Date, three Loan Contracts were entered into. None of the three Loan Contracts are secured and there are no financial covenants. HSBC Bank HSBC Bank Credit Facility On January 7, 2022 (the “HSBC Bank Effective Date”), the Company through its Taiwan subsidiary entered into a General Loan, Export/Import Financing, Overdraft Facilities and Securities Agreement (the “Loan Agreement”) with the Taiwan affiliate of HSBC Bank (“HSBC Bank”). The Loan Agreement provides for borrowings in the form of loans, export/import financings, overdrafts, commercial paper guaranties, and other types of drawdown instruments. The Loan Agreement has customary default provisions permitting HSBC Bank to terminate or reduce the credit limit, shorten the credit period, or deem all liabilities due and payable, including in the event its Taiwan subsidiary fails to make payment of sums under another agreement which permits acceleration of maturity of such indebtedness. The Company is not a guarantor of the Loan Agreement. Terms for specific drawdown instruments issued under the Loan Agreement, such as credit amount, term of use, mode of drawdown, specific lending rate, and other relevant terms, may be set forth in Facility Letters (a “Facility Letter”) negotiated with the HSBC Bank. Under a Facility Letter entered into on the HSBC Bank Effective Date, the Taiwan subsidiary and the HSBC Bank have agreed to a $30.0 million export/seller trade facility under the Loan Agreement with a tenor of 120 days. The interest rate thereunder is based on the HSBC Bank’s base rate plus a fixed margin, subject to adjustment under certain circumstances. Interest payments are due on a monthly basis, and principal is repayable on the due date. As of March 31, 2022, the outstanding borrowings under the 2022 HSBC Bank Credit Facility revolving line of credit were $30.0 million. The interest rates for these loans were approximately 0.96% per annum as of March 31, 2022. As of March 31, 2022, there was no amount available for future borrowing under the 2022 HSBC Bank Credit Facility. Principal payments on short-term and long-term obligations are due as follows (in thousands): Fiscal Year: Principal Payments 2022 $ 377,969 2023 29,853 2024 33,530 2025 37,014 2026 37,014 2027 and thereafter 32,088 Total short-term and long-term debt $ 547,468 |
Leases
Leases | 9 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases offices, warehouses and other premises, vehicles and certain equipment leased under non-cancelable operating leases. Operating lease expense recognized and supplemental cash flow information related to operating leases for the three and nine months ended March 31, 2022 and 2021 were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Operating lease expense (including expense for lease agreements with related parties of $143 and $568 for the three and nine months ended March 31, 2022, respectively, and $347 and $1,040 for the three and nine months ended March 31, 2021, respectively) $ 2,017 $ 1,952 $ 6,183 $ 5,900 Cash payments for operating leases (including payments to related parties of $141 and $631 for the three and nine months ended March 31, 2022, respectively, and $347 and $1,040 for the three and nine months ended March 31, 2021, respectively) 1,854 1,994 6,067 5,951 New operating lease assets obtained in exchange for operating lease liabilities 3,730 22 11,108 2,715 During the three and nine months ended March 31, 2022 and 2021, the Company's costs related to short-term lease arrangements for real estate and non-real estate assets were immaterial. Variable payments expensed in the three and nine months ended March 31, 2022 were $0.2 million and $0.7 million, respectively. Variable payments expensed in the three and nine months ended March 31, 2021 were $0.4 million and $1.2 million, respectively. As of March 31, 2022, the weighted average remaining lease term for operating leases was 4.0 years and the weighted average discount rate was 3.0%. Maturities of operating lease liabilities under noncancelable operating lease arrangements as of March 31, 2022 were as follows (in thousands): Fiscal Year: Minimum lease payments 2022 $ 2,004 2023 7,817 2024 6,524 2025 6,122 2026 2,644 2027 and beyond 2,084 Total future lease payments $ 27,195 Less: Imputed interest (1,489) Present value of operating lease liabilities $ 25,706 As of March 31, 2022, commitments under short-term lease arrangements, and operating and financing leases that have not yet commenced were immaterial. The Company has entered into lease agreements with related parties. See Note 8, "Related Party Transactions," for discussion. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has a variety of business relationships with Ablecom and Compuware. Ablecom and Compuware are both Taiwan corporations. Ablecom is one of the Company’s major contract manufacturers; Compuware is both a distributor of the Company’s products and a contract manufacturer for the Company. Ablecom’s Chief Executive Officer, Steve Liang, is the brother of Charles Liang, the Company’s President, Chief Executive Officer and Chairman of the Board. Steve Liang and his family members owned approximately 28.8% of Ablecom’s stock and Charles Liang and his spouse, Sara Liu, who is also an officer and director of the Company, collectively owned approximately 10.5% of Ablecom’s capital stock as of March 31, 2022. Bill Liang, a brother of both Charles Liang and Steve Liang, is a member of the Board of Directors of Ablecom. Bill Liang is also the Chief Executive Officer of Compuware, a member of Compuware’s Board of Directors and a holder of a significant equity interest in Compuware. Steve Liang is also a member of Compuware’s Board of Directors and is an equity holder of Compuware. Charles Liang and Sara Liu do not own any capital stock of Compuware and the Company does not own any of Ablecom or Compuware’s capital stock. Dealings with Ablecom The Company has entered into a series of agreements with Ablecom, including multiple product development, production and service agreements, product manufacturing agreements, manufacturing services agreements and lease agreements for warehouse space. Under these agreements, the Company outsources to Ablecom a portion of its design activities and a significant part of its server chassis manufacturing as well as an immaterial portion of other components. Ablecom manufactured approximately 88.8% and 92.5% of the chassis included in the products sold by the Company during the three months ended March 31, 2022 and 2021, respectively, and 82.5% and 92.5% of the chassis included in the products sold by the Company during the nine months ended March 31, 2022 and 2021, respectively. With respect to design activities, Ablecom generally agrees to design certain agreed-upon products according to the Company’s specifications, and further agrees to build the tools needed to manufacture the products. The Company pays Ablecom for the design and engineering services, and further agrees to pay Ablecom for the tooling. The Company retains full ownership of any intellectual property resulting from the design of these products and tooling. With respect to the manufacturing aspects of the relationship, Ablecom purchases most of materials needed to manufacture the chassis from third parties and the Company provides certain components used in the manufacturing process (such as power supplies) to Ablecom through consignment or sales transactions. Ablecom uses these materials and components to manufacture the completed chassis and then sell them back to the Company. For the components purchased from the Company, Ablecom sells the components back to the Company at a price equal to the price at which the Company sold the components to Ablecom. The Company and Ablecom frequently review and negotiate the prices of the chassis the Company purchases from Ablecom. In addition to inventory purchases, the Company also incurs other costs associated with design services, tooling and other miscellaneous costs from Ablecom. The Company’s exposure to financial loss as a result of its involvement with Ablecom is limited to potential losses on its purchase orders in the event of an unforeseen decline in the market price and/or demand of the Company’s products such that the Company incurs a loss on the sale or cannot sell the products. Outstanding cancellable and non-cancellable purchase orders from the Company to Ablecom on March 31, 2022 were $44.6 million and $40.5 million, respectively, and outstanding cancellable and non-cancellable purchase orders from the Company to Ablecom on June 30, 2021 were $44.9 million and $40.2 million, respectively, effectively representing the exposure to financial loss. The Company does not directly or indirectly guarantee any obligations of Ablecom, or any losses that the equity holders of Ablecom may suffer. Since Ablecom manufactures substantially all the chassis that the Company incorporates into its products, if Ablecom were to suddenly be unable to manufacture chassis for the Company, the Company’s business could suffer if the Company is unable to quickly qualify substitute suppliers who can supply high-quality chassis to the Company in volume and at acceptable prices. Dealings with Compuware The Company has entered into a distribution agreement with Compuware, under which the Company appointed Compuware as a non-exclusive distributor of the Company’s products in Taiwan, China and Australia. Compuware assumes the responsibility to install the Company's products at the site of the end customer, if required, and administers customer support in exchange for a discount from the Company's standard price for its purchases. The Company also has entered into a series of agreements with Compuware, including multiple product development, production and service agreements, product manufacturing agreements, and lease agreements for office space. Under these agreements, the Company outsources to Compuware a portion of its design activities and a significant part of its power supplies manufacturing as well as an immaterial portion of other components. With respect to design activities, Compuware generally agrees to design certain agreed-upon products according to the Company’s specifications, and further agrees to build the tools needed to manufacture the products. The Company pays Compuware for the design and engineering services, and further agrees to pay Compuware for the tooling. The Company retains full ownership of any intellectual property resulting from the design of these products and tooling. With respect to the manufacturing aspects of the relationship, Compuware purchases most of materials needed to manufacture the power supplies from outside markets and uses these materials to manufacture the products and then sell those products to the Company. The Company and Compuware frequently review and negotiate the prices of the power supplies the Company purchases from Compuware. Compuware also manufactures motherboards, backplanes and other components used on printed circuit boards for the Company. The Company sells to Compuware most of the components needed to manufacture the above products. Compuware uses the components to manufacture the products and then sells the products back to the Company at a purchase price equal to the price at which the Company sold the components to Compuware, plus a “manufacturing value added” fee and other miscellaneous charges and costs including overhead and labor. The Company and Compuware frequently review and negotiate the amount of the “manufacturing value added” fee that will be included in the price of the products the Company purchases from Compuware. In addition to the inventory purchases, the Company also incurs costs associated with design services, tooling assets, and miscellaneous costs. The Company’s exposure to financial loss as a result of its involvement with Compuware is limited to potential losses on its purchase orders in the event of an unforeseen decline in the market price and/or demand of the Company’s products such that the Company incurs a loss on the sale or cannot sell the products. Outstanding cancellable and non-cancellable purchase orders from the Company to Compuware on March 31, 2022 were $192.4 million and $42.3 million, respectively and outstanding cancellable and non-cancellable purchase orders from the Company to Compuware on June 30, 2021 were $123.3 million and $71.0 million, respectively, effectively representing the exposure to financial loss. The Company does not directly or indirectly guarantee any obligations of Compuware, or any losses that the equity holders of Compuware may suffer. Dealings with Investment in a Corporate Venture In October 2016, the Company entered into agreements pursuant to which the Company contributed certain technology rights in connection with an investment in a privately-held company (the "Corporate Venture") located in China to expand the Company's presence in China. The Corporate Venture is 30% owned by the Company and 70% owned by another company in China. The transaction was closed in the third fiscal quarter of 2017 and the investment is accounted for using the equity method. As such, the Corporate Venture is also a related party. The Company recorded a deferred gain related to the contribution of certain technology rights. As of March 31, 2022 and June 30, 2021, the Company had unamortized deferred gain balance of $0 million and $1.0 million, respectively, in accrued liabilities in the Company’s condensed consolidated balance sheets. The Company monitors the investment for events or circumstances indicative of potential impairment and makes appropriate reductions in carrying values if it determines that an impairment charge is required. In June 2020, the third-party parent company that controls the Corporate Venture was placed on a U.S. government export control list, along with several of the third-party parent's related entities and a separate listing for one of its subsidiaries. The Corporate Venture is not itself a restricted party. The Company has concluded that the Corporate Venture is in compliance with the new restrictions. The Company does not believe that the equity investment carrying value is impacted as of March 31, 2022. No impairment charge was recorded for the three and nine months ended March 31, 2022 and 2021, respectively. The Company sold products to the Corporate Venture and the Company’s share of intra-entity profits on the products that remained unsold by the Corporate Venture have been eliminated and have reduced the carrying value of the Company’s investment in the Corporate Venture. To the extent that the elimination of intra-entity profits reduces the investment balance below zero, such amounts are recorded within accrued liabilities. Dealings with Monolithic Power Systems, Inc. The Company procures certain semiconductor products from Monolithic Power Systems, Inc. (“MPS”), a fabless manufacturer of high-performance analog and mixed-signal semiconductors, for use in its products. A member of the Board of Directors, also serves as an officer of MPS. The Company had the following balances related to transactions with its related parties as of March 31, 2022 and June 30, 2021 (in thousands): Ablecom Compuware Corporate Venture MPS Total March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 Accounts receivable $ 1 $ 2 $ 381 $ 198 $ 33,702 $ 8,478 $ — $ — $ 34,084 $ 8,678 Other receivable (1) $ 2,415 $ 5,575 $ 27,105 $ 18,173 $ — $ — $ 41 $ 89 $ 29,561 $ 23,837 Accounts payable $ 38,966 $ 38,152 $ 48,300 $ 31,944 $ — $ — $ — $ — $ 87,266 $ 70,096 Accrued liabilities (2) $ 982 $ 3,042 $ 14,333 $ 14,486 $ — $ 1,000 $ — $ — $ 15,315 $ 18,528 (1) Other receivables include receivables from vendors included in prepaid and other current assets. (2) Includes current portion of operating lease liabilities included in other current liabilities. The Company's results from transactions with its related parties for each of the three months ended March 31, 2022 and 2021, are as follows (in thousands): Ablecom Compuware Corporate Venture MPS Total Three months ended March 31, Three months ended March 31, Three months ended March 31, Three months ended March 31, Three months ended March 31, 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Net sales $ 2 $ 2 $ 3,928 $ 3,580 $ 43,739 $ 16,850 $ — $ — $ 47,669 $ 20,432 Purchases - inventory $ 49,472 $ 32,150 $ 43,989 $ 24,115 $ — $ — $ 2,018 $ 1,189 $ 95,479 $ 57,454 Purchases - other miscellaneous items $ 1,687 $ 2,002 $ 404 $ 475 $ — $ — $ — $ — $ 2,091 $ 2,477 The Company's results from transactions with its related parties for each of the nine months ended March 31, 2022 and 2021, are as follows (in thousands): Ablecom Compuware Corporate Venture MPS Total Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Net sales $ 12 $ (25) $ 22,932 $ 22,451 $ 97,262 $ 36,427 $ — $ — $ 120,206 $ 58,853 Purchases - inventory $ 147,780 $ 77,838 $ 126,039 $ 87,330 $ — $ — $ 6,074 $ 2,677 $ 279,893 $ 167,845 Purchases - other miscellaneous items $ 6,671 $ 7,482 $ 1,090 $ 1,434 $ — $ — $ — $ — $ 7,761 $ 8,916 The Company’s cash flow impact from transactions with its related parties for each of the nine months ended March 31, 2022 and 2021, are as follows (in thousands): Ablecom Compuware Corporate Venture MPS Total Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Changes in accounts receivable 1 $ (30) $ (182) $ 133 $ (25,224) $ (3,635) $ — $ — $ (25,405) $ (3,532) Changes in other receivable $ 3,159 $ (211) $ (8,933) $ (296) $ — $ — $ 48 $ 65 $ (5,726) $ (442) Changes in accounts payable $ 814 $ (8,768) $ 16,356 $ (9,528) $ — $ — $ — $ — $ 17,170 $ (18,296) Changes in accrued liabilities $ (2,060) $ 955 $ (153) $ (635) $ (1,000) $ (500) $ — $ — $ (3,213) $ (180) Changes in other long-term liabilities $ — $ (513) $ 596 $ (186) $ — $ (1,000) $ — $ — $ 596 $ (1,699) Purchases of property, plant and equipment $ 2,365 $ 5,675 $ 140 $ 170 $ — $ — $ — $ — $ 2,505 $ 5,845 Unpaid property, plant and equipment $ 681 $ 1,434 $ 48 68 $ — $ — $ — $ — $ 729 $ 1,502 Tripartite Agreement On November 8, 2021, Super Micro Computer Inc., Taiwan (the “Subsidiary”), a Taiwan corporation and wholly-owned subsidiary of the Company, entered into a Tripartite Agreement (the “Agreement”) with Ablecom and Compuware related to a three-way purchase of land. |
Stock-based Compensation and St
Stock-based Compensation and Stockholders' Equity | 9 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation and Stockholders' Equity | Stock-based Compensation and Stockholders' Equity Equity Incentive Plan On June 5, 2020, the stockholders of the Company approved the 2020 Equity and Incentive Compensation Plan (the "2020 Plan"). The maximum number of shares available under the 2020 Plan is 5,000,000 plus 1,045,000 shares of common stock that remained available for future awards under the 2016 Equity Incentive Plan (the “2016 Plan”), at the time of adoption of the 2020 Plan. No other awards can be granted under the 2016 Plan. 7,246,000 shares of common stock remain reserved for outstanding awards issued under the 2016 Plan at the time of adoption of the 2020 Plan. As of March 31, 2022, the Company had 1,979,112 authorized shares available for future issuance under the 2020 Plan. Common Stock Repurchase On January 29, 2021, a duly authorized subcommittee of the Board of Directors approved a share repurchase program to repurchase up to an aggregate of $200.0 million of the Company's common stock at market prices. The program is effective until the earlier of July 31, 2022 or the date when the maximum amount of common stock is repurchased. The Company had $150.0 million of remaining availability under the share repurchase program as of March 31, 2022. There were no shares repurchased under the share repurchase program during the three and nine months ended March 31, 2022. Determining Fair Value The Company's fair value of RSUs and PRSUs is based on the closing market price of the Company's common stock on the date of grant. The Company estimates the fair value of stock options granted using the Black-Scholes-option-pricing model. This fair value is then amortized ratably over the requisite service periods of the awards, which is generally the vesting period. The key inputs in using the Black-Scholes-option-pricing model were as follows: Expected Term—The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on the Company's historical experience. Expected Volatility—Expected volatility is based on the Company's historical volatility. Expected Dividend—The Black-Scholes valuation model calls for a single expected dividend yield as an input and the Company has no plans to pay dividends. Risk-Free Interest Rate—The risk-free interest rate used in the Black-Scholes valuation method is based on the United States Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of option. The fair value of stock option grants for the three and nine months ended March 31, 2022 and 2021 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Risk-free interest rate 1.65% 0.58% 0.81% - 1.65% 0.27% - 0.58% Expected term 6.09 years 5.98 years 6.09 years 5.98 years Dividend yield —% —% —% —% Volatility 49.99% 50.32% 49.69% - 49.99% 50.32% - 50.43% Weighted-average fair value $19.31 $15.91 $18.09 $13.57 The following table shows total stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended March 31, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of sales $ 460 $ 402 $ 1,378 $ 1,312 Research and development 4,141 3,328 12,124 10,369 Sales and marketing 504 503 1,517 1,517 General and administrative 2,636 3,261 8,913 7,919 Stock-based compensation expense before taxes 7,741 7,494 23,932 21,117 Income tax impact (2,431) (2,389) (8,077) (6,080) Stock-based compensation expense, net $ 5,310 $ 5,105 $ 15,855 $ 15,037 As of March 31, 2022, $9.6 million of unrecognized compensation expense related to stock options is expected to be recognized over a weighted-average period of 3.57 years, $53.0 million of unrecognized compensation cost related to unvested RSUs is expected to be recognized over a weighted-average period of 2.72 years and unrecognized compensation cost of $0.1 million related to unvested PRSUs was recognized during the nine months ended March 31, 2022. Additionally, as described below, $5.2 million of unrecognized compensation cost related to the 2021 CEO Performance Stock Option is expected to be recognized over a period of 2.75 years. Stock Option Activity In March 2021, the Company’s Compensation Committee of the Board of Directors (the “Compensation Committee”) approved the grant of a stock option award for 1,000,000 common stock shares to the Company’s CEO (the “2021 CEO Performance Stock Option”). The 2021 CEO Performance Stock Option has five vesting tranches with a vesting schedule based entirely on the attainment of operational milestones (performance conditions) and market conditions, assuming (1) continued employment either as the CEO or in such capacity as agreed upon between the Company’s CEO and the Board of Directors and (2) service through each vesting date. Each of the five vesting tranches of the 2021 CEO Performance Stock Option will vest upon certification by the Compensation Committee that both (i) the market price milestone for such tranche, which begins at $45.00 per share for the first tranche and increases up to $120.00 per share thereafter (based on a 60 calendar day trailing average, counting only trading days), has been achieved, and (ii) any one of the following five operational milestones focused on total revenue, as reported under U.S. GAAP, have been achieved for the previous four consecutive fiscal quarters. Upon vesting and exercise, including the payment of the exercise price of $45.00 per share, prior to March 2, 2024, the Company’s CEO must hold shares that he acquires until March 2, 2024, other than those shares sold pursuant to a cashless exercise where shares are simultaneously sold to pay for the exercise price and any required tax withholding. The achievement status of the operational and stock price milestones as of March 31, 2022 was as follows: Annualized Revenue Milestone Achievement Status Stock Price Milestone Achievement Status (in billions) $4.0 Achieved $45 Not met $4.8 Probable $60 Not met $5.8 Probable $75 Not met $6.8 Probable $95 Not met $8.0 Improbable $120 Not met On the grant date, a Monte Carlo simulation was used to determine for each tranche (i) a fixed expense amount for such tranche and (ii) the future time when the market price milestone for such tranche was expected to be achieved, or its “expected market price milestone achievement time.” Separately, based on a subjective assessment of the Company’s future financial performance, each quarter, the Company will determine whether achievement is probable for each operational milestone that has not previously been achieved or deemed probable of achievement, and, if so, the future time when the Company expects to achieve that operational milestone, or its “expected operational milestone achievement time.” When the Company first determines that an operational milestone has become probable of being achieved, the Company will allocate the entire expense for the related tranche over the number of quarters between the grant date and the then-applicable “expected vesting time.” The “expected vesting time” at any given time is the later of (i) the expected operational milestone achievement time (if the related operational milestone has not yet been achieved) and (ii) the expected market price milestone achievement time (if the related market price milestone has not yet been achieved). The Company will immediately recognize a catch-up expense for all accumulated expenses from the grant date through the quarter in which the operational milestone was first deemed probable of being achieved. Each quarter thereafter, the Company will recognize the prorated portion of the then-remaining expense for the tranche based on the number of quarters between such quarter and the then-applicable expected vesting time, except that upon vesting of a tranche, all remaining expenses for that tranche will be immediately recognized. During the three and nine months ended March 31, 2022, the Company recognized compensation expense related to the 2021 CEO Performance Stock Option of $1.5 million and $5.3 million, respectively. During the three and nine months ended March 31, 2021, the Company recognized compensation expense related to the 2021 CEO Performance Stock Option of $0.3 million and $0.3 million, respectively. As of March 31, 2022 and June 30, 2021, the Company had $5.2 million and $10.5 million, respectively, in unrecognized compensation cost related to the 2021 CEO Performance Stock Option. The unrecognized compensation cost as of March 31, 2022 is expected to be recognized over a period of more than 2.75 years. The following table summarizes stock option activity during the nine months ended March 31, 2022 under all plans: Options Weighted Weighted Balance as of June 30, 2021 5,175,554 $ 26.17 Granted 286,000 $ 37.72 Exercised (921,001) $ 17.32 Forfeited/Cancelled (123,113) $ 29.48 Balance as of March 31, 2022 4,417,440 $ 28.64 5.50 Options vested and exercisable at March 31, 2022 2,700,170 $ 21.61 3.38 RSU and PRSU Activity In March 2020, the Compensation Committee granted a PRSU award to one of the Company's senior executives. The award vests in two tranches and includes service and performance conditions. Each tranche has 15,000 RSUs that vest in May 2021 and November 2021 based on service conditions only. Additional units can be earned based on revenue growth percentage in fiscal year 2020 compared to fiscal year 2019, which units would vest in May 2021, and based on revenue growth percentage in fiscal year 2021 compared to fiscal year 2020, which units have vested in November 2021. No additional units were earned for fiscal year 2020 as revenue decreased from fiscal year 2019. An additional 2,939 units were earned for fiscal year 2021 that vested on November 10, 2021. The following table summarizes RSU and PRSU activity during the nine months ended March 31, 2022 under all plans: Time-Based RSUs Weighted PRSUs Weighted Balance as of June 30, 2021 1,854,956 $ 26.79 15,000 $ 34.27 Granted 840,435 $ 37.44 2,939 $ 34.27 Released (517,530) $ 22.92 (17,939) $ 34.27 Forfeited (274,972) $ 29.44 — $ — Balance as of March 31, 2022 1,902,889 $ 32.09 — $ — |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded a provision for income taxes of $16.2 million and $27.1 million for the three and nine months ended March 31, 2022, respectively. The Company recorded a benefit for income taxes of $0.2 million for the three months ended March 31, 2021, and a provision for income taxes of $8.5 million for the nine months ended March 31, 2021. The effective tax rate was 17.4% and 15.9% for the three and nine months ended March 31, 2022, respectively, and (1.2)% and 10.5% for the three and nine months ended March 31, 2021, respectively. The effective tax rate for the three and nine months ended March 31, 2022 is higher than that for the same periods ended March 31, 2021, primarily due to a significant increase in pre-tax income in fiscal 2022 and corresponding decreases in the effective tax rate benefits from R&D credits, deductions for foreign sales, and windfall tax benefits. As of March 31, 2022, the Company had gross unrecognized tax benefits of $38.9 million, of which, $15.7 million if recognized, would affect the Company's effective tax rate. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for taxes on the condensed consolidated statements of operations. As of March 31, 2022, the Company had accrued $3.1 million of interest and penalties relating to unrecognized tax benefits. Under the 2017 Tax Reform Act, starting on July 1, 2018, the Company is no longer subject to federal income tax on earnings remitted from its foreign subsidiaries. As a result of the 2017 Tax Reform Act, the Company has determined that its foreign undistributed earnings are indefinitely reinvested except for undistributed earnings related to the Company's operations in the Netherlands. The Company may repatriate certain foreign earnings from the Netherlands that have been previously taxed in the U.S. The tax impact of such repatriation is estimated to be immaterial. The Company believes that it has adequately provided reserves for all uncertain tax positions; however, amounts asserted by tax authorities could be greater or less than the Company’s current position. Accordingly, the Company’s provision on federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or as the underlying matters are settled or otherwise resolved. The federal statute of limitations remains open in general for tax years ended June 30, 2019 through 2021. Various states statutes of limitations remain open in general for tax years ended June 30, 2018 through 2021. Certain statutes of limitations in major foreign jurisdictions remain open in general for the tax years ended June 30, 2016 through 2021. It is reasonably possible that the Company's gross unrecognized tax benefits will decrease by approximately $1.0 million, in the next 12 months, due to the lapse of the statute of limitations. These adjustments, if recognized, would positively impact the Company's effective tax rate, and would be recognized as additional tax benefits. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Claims— On February 8, 2018, two putative class action complaints were filed against the Company, the Company's Chief Executive Officer, and the Company's former Chief Financial Officer in the U.S. District Court for the Northern District of California ( Hessefort v. Super Micro Computer, Inc., et al. , No. 18-cv-00838 and United Union of Roofers v. Super Micro Computer, Inc., et al. , No. 18-cv-00850 ). The complaints contain similar allegations, claiming that the defendants violated Section 10(b) of the Securities Exchange Act due to alleged misrepresentations and/or omissions in public statements regarding recognition of revenue. The court subsequently appointed New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund as lead plaintiff. The lead plaintiff then filed an amended complaint naming the Company's Senior Vice President of Investor Relations as an additional defendant. On June 21, 2019, the lead plaintiff filed a further amended complaint naming the Company's former Senior Vice President of International Sales, Corporate Secretary, and Director as an additional defendant. On July 26, 2019, the Company filed a motion to dismiss the complaint. On March 23, 2020, the Court granted the Company’s motion to dismiss the complaint, with leave for lead plaintiff to file an amended complaint within 30 days. On April 22, 2020, lead plaintiff filed a further amended complaint. On June 15, 2020, the Company filed a motion to dismiss the further amended complaint, the hearing for which was calendared for September 23, 2020; however, the Court held a conference on September 15 to discuss how the Court could efficiently address the recent SEC settlement agreement. The parties stipulated to allow plaintiffs to further amend the complaint solely to add allegations relating to the SEC settlement. On October 14, 2020, plaintiffs filed a Fourth Amended Complaint. On October 28, 2020, defendants filed a supplemental motion to dismiss. On March 29, 2021, the Court granted in part and denied in part defendants’ motions to dismiss. Plaintiffs’ claims under Sections 10(b) and 20 of the Exchange Act were dismissed with prejudice as against the Company’s former head of Investor Relations, Perry Hayes. Plaintiffs’ Section 10(b) claim, but not the Section 20 claim, was likewise dismissed as to Wally Liaw, a founder, former director, and former SVP of International Sales. The Court denied the motions to dismiss the Section 10(b) and Section 20 claims against the Company, Charles Liang, and Howard Hideshima, the Company’s former CFO. On March 11, 2022, the Company, together with the individual defendants, entered into an agreement in principle with plaintiff’s counsel to settle the action. On April 8, 2022, the parties entered into a stipulation of settlement with plaintiff's counsel. Pursuant to the terms of the stipulation of settlement, and subject to Court approval, plaintiff will dismiss with prejudice and release on behalf of a class of shareholders all claims against defendants, including the Company, in exchange for payment of $18,250,000, of which sum $2,000,000 will be funded by the Company. This settlement, if approved by the Court, will fully resolve the action. A hearing on preliminary approval of the proposed settlement is scheduled for June 2, 2022. As of March 31, 2022, the Company recorded a liability of $18,250,000 for the Hessefort case settlement in accrued liabilities and $16,250,000 of litigation settlement costs recovery in other receivables in its condensed consolidated balance sheets. The net Hessefort litigation settlement costs of $2,000,000 is recorded as a charge to general and administrative expense in the Company's condensed consolidated statement of operations for the three and nine months ended March 31, 2022. On October 27, 2020, certain current and former directors and officers of the Company were named as defendants in a putative derivative lawsuit filed in the Superior Court of the State of California, County of Santa Clara (the “Court”), captioned Barry v. Liang, et al., 20-CV-372190. The Company was also named as a nominal defendant. The complaint purports to allege claims for breaches of fiduciary duties, waste of corporate assets, and unjust enrichment arising out of allegations that the Company’s officers and directors caused the Company to issue false and misleading statements about recognition of revenue and the effectiveness of its internal controls, failed to adopt and implement effective internal controls, and failed to timely file various reports with the Securities and Exchange Commission. Defendants filed demurrers, which were set for hearing on August 4, 2021, but which were continued to September 15, 2021. Following this continuance, on July 21, 2021, Plaintiffs' counsel filed an amended complaint in lieu of responding to the demurrer. The amended complaint added no new claims; primarily, the amendment added allegations describing the March 29, 2021 motion to dismiss decision in the Hessefort class action. Defendants demurred to the amended complaint on August 24, 2021. Following a March 23, 2022 hearing, on March 25, 2022, the Court granted defendants’ demurrers on the grounds that plaintiffs had failed to allege demand futility and the Court dismissed the amended complaint, but with leave to amend by May 20, 2022. The case is otherwise currently stayed. The Company intends to defend the lawsuit vigorously if a second amended complaint is filed. On May 5, 2021, certain current and former directors and officers of the Company were named as defendants in a putative derivative lawsuit filed in the U.S. District Court for the Northern District of California, captioned Stein v. Liang, et al ., Case No. 3:21-cv-03357-KAW (the “Stein Derivative Action”). The Company was also named as a nominal defendant. The complaint purports to allege claims for breaches of fiduciary duties, waste of corporate assets, unjust enrichment, and contribution for violations of federal securities laws arising out of allegations that the Company’s officers and directors caused the Company to issue false and misleading statements about recognition of revenue and the effectiveness of its internal controls, failed to adopt and implement effective internal controls, and failed to timely file various reports with the Securities and Exchange Commission. The plaintiff seeks unspecified compensatory damages and other equitable relief. Defendants filed motions to dismiss the complaint on August 6, 2021. Rather than oppose defendants’ motions, plaintiff informed defendants that plaintiff was prepared to dismiss his action with prejudice. On September 29, 2021, the parties submitted a stipulation for dismissal with prejudice as to the named plaintiff to the Court for its approval. On December 16, 2021, the Court issued an order for the parties to submit within 30 days a plan of notice of dismissal for the Court’s approval. The Company provided notice as required by the Court on December 21, 2021. No shareholder sought to intervene during the 45-day notice period ending on February 4, 2022, and on March 24, 2022, the Court issued an order dismissing the lawsuit with prejudice as to the named plaintiff. SEC Matter— The Company cooperated with the SEC in its investigation of marketing expenses that contained certain irregularities discovered by Company management, which irregularities were disclosed on August 31, 2015, and the Company cooperated with the SEC in its further investigation of the matters underlying the Company’s inability to timely file its Form 10-K for the fiscal year ended June 30, 2017 and concerning the publication of a false and widely discredited news article in October 2018 concerning the Company’s products. On August 25, 2020, to fully resolve all matters under investigation, the Company consented to entry of an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (“Order”), as announced by the SEC. The Company admitted the SEC’s jurisdiction over the Company and the subject matter of the proceedings, but otherwise neither admitted nor denied the SEC’s findings, as described in the Order. The Company agreed to cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and (3) of the Securities Act and Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B), of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. The Company agreed and paid a civil money penalty of $17,500,000 during the three months ended September 30, 2020, which was recorded to general and administrative expense in the Company's condensed consolidated statement of operations in the first quarter of fiscal 2021. In addition, the Company’s Chief Executive Officer concluded a settlement with the SEC on August 25, 2020, as announced by the SEC. The Company’s Chief Executive Officer paid the Company the sum of $2,122,000 as reimbursement of profits from certain stock sales during the relevant period, pursuant to Section 304 of the Sarbanes-Oxley Act of 2002. The settlement amount was paid during the first quarter of fiscal 2021 and the Company recorded the payment as a credit to general and administrative expense in the first quarter of fiscal 2021. Other legal proceedings and indemnifications From time to time, the Company has been involved in various legal proceedings arising from the normal course of business activities. The resolution of any such matters have not had a material impact on the Company’s consolidated financial condition, results of operations or liquidity as of March 31, 2022 and any prior periods. The Company has entered into indemnification agreements with its current and former directors and executive officers. Under these agreements, the Company has agreed to indemnify such individuals to the fullest extent permitted by law against liabilities that arise by reason of their status as directors or officers and to advance expenses incurred by such individuals in connection with related legal proceedings. It is not possible to determine the maximum potential amount of payments the Company could be required to make under these agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each claim. However, the Company maintains directors and officers liability insurance coverage to reduce its exposure to such obligations. Purchase Commitments — The Company has agreements to purchase inventory and non-inventory items primarily through the next 12 months. As of March 31, 2022, these remaining noncancelable commitments were $628.6 million, including $82.8 million for related parties. Lease Commitments - See Note 7, "Leases," for a discussion of the Company's operating lease and financing lease commitments. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company operates in one operating segment that develops and provides high performance server solutions based upon an innovative, modular and open-standard architecture. The Company’s chief operating decision maker is the Chief Executive Officer. The following is a summary of property, plant and equipment, net (in thousands): March 31, June 30, 2022 2021 Long-lived assets: United States $ 176,012 $ 180,143 Asia 103,476 91,640 Europe 2,831 2,930 $ 282,319 $ 274,713 The Company’s revenue is presented on a disaggregated basis in Note 2, “Revenue,” by type of product and by geographical market. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements included herein reflect all adjustments, including normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, results of operations and cash flows for the periods presented. The consolidated results of operations for the three and nine months ended March 31, 2022 are not necessarily indicative of the results that may be expected for future quarters or for the fiscal year ending June 30, 2022. |
Concentration of Supplier and Credit Risk | Concentration of Supplier RiskCertain materials used by the Company in the manufacturing of its products are available from a limited number of suppliers.Concentration of Credit RiskFinancial instruments which potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, investment in an auction rate security and accounts receivable. |
Accounting Pronouncements Recently Adopted and Not Yet Adopted | Accounting Pronouncements Recently Adopted In December 2019, the FASB issued amended guidance, Simplifying the Accounting for Income Taxes , to remove certain exceptions to the general principles from ASC 740 - Income Taxes, and to improve consistent application of U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The guidance is effective for the Company from July 1, 2021. The adoption of the guidance did not have a material impact on its condensed consolidated financial statements and disclosures. Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued authoritative guidance, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The guidance also establishes (1) a general contract modification principle that entities can apply in other areas that may be affected by reference rate reform and (2) certain elective hedge accounting expedients. The amendments in this update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. In January 2021, the FASB issued further guidance on this topic, which clarified the scope and application of the original guidance. The amendments are effective for all entities on December 31, 2022, with early adoption permitted for an interim period beginning after March 12, 2020. The Company has loans and lines of credit with various financial institutions. Benchmark interest rates are used to calculate the interest on borrowings under the Chang Hwa Bank, CTBC, HSBC, Mega Bank Credit Facilities. LIBOR is used to calculate the interest on borrowings under the Company's 2018 Bank of America Credit Facility and E.SUN Credit Facility. The 2018 Bank of America Credit Facility was amended on June 28, 2021 which provided for a new maturity date of June 28, 2026 and fallback terms related to LIBOR replacement mechanics. On March 3, 2022, the 2018 Bank of America Credit Facility was amended to, among other items, increase the size of the facility from $200.0 million to $350.0 million and update provisions relating to payments and LIBOR replacement mechanics to secured overnight financing rate (“SOFR"). As these amendments had other contemporaneous changes to the facility including the amount and not just directly related to LIBOR replacement, optional expedients under this guidance cannot be elected. The Company is currently evaluating the overall impact of adoption of the guidance on its consolidated financial statements and disclosures. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following is a summary of net sales by product type (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Server and storage systems $ 1,145,869 $ 693,339 $ 2,981,777 $ 1,953,838 Subsystems and accessories 209,621 202,542 578,862 534,599 Total $ 1,355,490 $ 895,881 $ 3,560,639 $ 2,488,437 Three Months Ended Nine Months Ended 2022 2021 2022 2021 United States $ 762,418 $ 499,061 $ 1,961,573 $ 1,458,249 Asia 309,972 207,204 857,165 495,326 Europe 205,444 162,285 600,589 429,193 Other 77,656 27,331 141,312 105,669 $ 1,355,490 $ 895,881 $ 3,560,639 $ 2,488,437 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following table shows the computation of basic and diluted net income per common share for the three and nine months ended March 31, 2022 and 2021 (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Numerator: Net income $ 76,972 $ 18,428 $ 144,341 $ 72,703 Denominator: Weighted-average shares outstanding 51,708 50,553 51,269 51,465 Effect of dilutive securities 2,079 2,665 2,132 2,282 Weighted-average diluted shares 53,786 53,218 53,401 53,747 Basic net income per common share $ 1.49 $ 0.36 $ 2.82 $ 1.41 Diluted net income per common share $ 1.43 $ 0.35 $ 2.70 $ 1.35 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventories | The following tables provide details of the selected balance sheet items (in thousands): Inventories: March 31, 2022 June 30, 2021 Finished goods $ 994,184 $ 761,694 Work in process 253,246 80,472 Purchased parts and raw materials 341,112 198,798 Total inventories $ 1,588,542 $ 1,040,964 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets: March 31, 2022 June 30, 2021 Other receivables (1) $ 139,380 $ 99,921 Prepaid expenses 7,302 6,719 Deferred service costs 5,365 4,900 Prepaid income tax 341 12,288 Restricted cash 251 251 Others 10,325 6,116 Total prepaid expenses and other current assets $ 162,964 $ 130,195 __________________________ (1) Includes other receivables from contract manufacturers based on certain buy-sell arrangements of $96.0 million |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash: March 31, 2022 June 30, 2021 Cash and cash equivalents $ 247,424 $ 232,266 Restricted cash included in prepaid expenses and other current assets 251 251 Restricted cash included in other assets 920 932 Total cash, cash equivalents and restricted cash $ 248,595 $ 233,449 |
Schedule of Property, Plant, and Equipment | Property, Plant, and Equipment: March 31, 2022 June 30, 2021 Buildings $ 143,509 $ 86,930 Machinery and equipment 111,714 97,671 Land 84,616 76,421 Building and leasehold improvements 48,846 26,640 Furniture and fixtures 32,590 22,843 Software 23,333 22,592 Building construction in progress (1) 303 87,438 444,911 420,535 Accumulated depreciation and amortization (162,592) (145,822) Property, plant and equipment, net $ 282,319 $ 274,713 __________________________ (1) Primarily relates to the development and construction costs associated with the Company’s Green Computing Park located in San Jose, California, and a new building in Taiwan. |
Schedule of Other Assets | Other Assets: March 31, 2022 June 30, 2021 Operating lease right-of-use asset $ 25,338 $ 20,047 Deferred service costs, non-current 6,170 5,421 Prepaid expense, non-current 1,911 1,973 Investment in auction rate security 1,556 1,556 Deposits 1,118 1,669 Restricted cash, non-current 920 932 Other 1,834 528 Total other assets $ 38,847 $ 32,126 |
Schedule of Accrued Liabilities | Accrued Liabilities: March 31, 2022 June 30, 2021 Accrued payroll and related expenses $ 45,837 $ 45,770 Contract manufacturing liabilities 35,032 45,319 Customer deposits 23,810 32,419 Accrued warranty costs 9,322 10,185 Accrued cooperative marketing expenses 8,609 5,652 Operating lease liability 7,291 6,322 Accrued professional fees 3,381 2,737 Accrued legal liabilities 18,250 — Other 29,916 30,446 Total accrued liabilities $ 181,448 $ 178,850 |
Schedule of Other Long-term Liabilities | Other Long-term Liabilities: March 31, 2022 June 30, 2021 Accrued unrecognized tax benefits including related interests and penalties, non-current $ 19,427 $ 17,841 Operating lease liability, non-current 18,416 14,539 Accrued warranty costs, non-current 2,673 2,678 Other 1,101 6,074 Total other long-term liabilities $ 41,617 $ 41,132 |
Reconciliation of the Changes in Accrued Warranty Costs | Product Warranties: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Balance, beginning of the period $ 11,583 $ 13,503 $ 12,863 $ 12,379 Provision for warranty 7,514 6,791 19,956 22,250 Costs utilized (7,797) (7,441) (21,717) (22,501) Change in estimated liability for pre-existing warranties 695 672 893 1,397 Balance, end of the period 11,995 13,525 11,995 13,525 Current portion 9,322 10,813 9,322 10,813 Non-current portion $ 2,673 $ 2,712 $ 2,673 $ 2,712 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash Equivalents and Long-term Investments Measured at Fair value on a Recurring Basis | The following table sets forth the Company’s financial instruments as of March 31, 2022 and June 30, 2021, which are measured at fair value on a recurring basis by level within the fair value hierarchy. These are classified based on the lowest level of input that is significant to the fair value measurement (in thousands): March 31, 2022 Level 1 Level 2 Level 3 Asset at Assets Money market funds (1) $ 152 $ — $ — $ 152 Certificates of deposit (2) — 847 — 847 Auction rate security — — 1,556 1,556 Total assets measured at fair value $ 152 $ 847 $ 1,556 $ 2,555 June 30, 2021 Level 1 Level 2 Level 3 Asset at Assets Money market funds (1) $ 151 $ — $ — $ 151 Certificates of deposit (2) — 863 — 863 Auction rate security — — 1,556 1,556 Total assets measured at fair value $ 151 $ 863 $ 1,556 $ 2,570 (1) $0.2 million and $0.2 million in money market funds are included in restricted cash, non-current in other assets in the condensed consolidated balance sheets as of March 31, 2022 and June 30, 2021, respectively. |
Summary of Long-term Investments | The following is a summary of the Company’s investment in an auction rate security as of March 31, 2022 and June 30, 2021 (in thousands): Cost Basis Gross Gross Fair Value Auction rate security $ 1,750 $ — $ (194) $ 1,556 |
Short-term and Long-term Debt (
Short-term and Long-term Debt (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Debt Obligations | Short-term and long-term debt obligations as of March 31, 2022 and June 30, 2021 consisted of the following (in thousands): March 31, June 30, 2022 2021 Line of credit: Bank of America $ 241,469 $ — CTBC Bank 101,000 18,000 HSBC Bank 30,000 — E.SUN Bank 23,000 20,400 Total line of credit 395,469 38,400 Term loans: CTBC Bank term loan, due August 31, 2022 $ — $ 25,090 CTBC Bank term loan, due June 4, 2030 41,718 34,700 CTBC Bank term loan, due December 27, 2027 5,505 — E.SUN Bank term loan, due September 15, 2026 28,138 — Mega Bank term loan, due September 15, 2026 41,803 — Chang Hwa Bank term loan due October 15, 2026 34,835 — Total term loans 151,999 59,790 Total debt 547,468 98,190 Short-term debt and current portion of long-term debt 403,045 63,490 Debt, non-current $ 144,423 $ 34,700 |
Schedule of Maturities of Short-term and Long-term Debt Obligations | Principal payments on short-term and long-term obligations are due as follows (in thousands): Fiscal Year: Principal Payments 2022 $ 377,969 2023 29,853 2024 33,530 2025 37,014 2026 37,014 2027 and thereafter 32,088 Total short-term and long-term debt $ 547,468 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of Operating Lease Expense Recognized and Supplemental Cash Flow Information | Operating lease expense recognized and supplemental cash flow information related to operating leases for the three and nine months ended March 31, 2022 and 2021 were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Operating lease expense (including expense for lease agreements with related parties of $143 and $568 for the three and nine months ended March 31, 2022, respectively, and $347 and $1,040 for the three and nine months ended March 31, 2021, respectively) $ 2,017 $ 1,952 $ 6,183 $ 5,900 Cash payments for operating leases (including payments to related parties of $141 and $631 for the three and nine months ended March 31, 2022, respectively, and $347 and $1,040 for the three and nine months ended March 31, 2021, respectively) 1,854 1,994 6,067 5,951 New operating lease assets obtained in exchange for operating lease liabilities 3,730 22 11,108 2,715 |
Summary of Future Minimum Lease Payments Under Noncancelable Operating Lease Arrangements | Maturities of operating lease liabilities under noncancelable operating lease arrangements as of March 31, 2022 were as follows (in thousands): Fiscal Year: Minimum lease payments 2022 $ 2,004 2023 7,817 2024 6,524 2025 6,122 2026 2,644 2027 and beyond 2,084 Total future lease payments $ 27,195 Less: Imputed interest (1,489) Present value of operating lease liabilities $ 25,706 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The Company had the following balances related to transactions with its related parties as of March 31, 2022 and June 30, 2021 (in thousands): Ablecom Compuware Corporate Venture MPS Total March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 March 31, 2022 June 30, 2021 Accounts receivable $ 1 $ 2 $ 381 $ 198 $ 33,702 $ 8,478 $ — $ — $ 34,084 $ 8,678 Other receivable (1) $ 2,415 $ 5,575 $ 27,105 $ 18,173 $ — $ — $ 41 $ 89 $ 29,561 $ 23,837 Accounts payable $ 38,966 $ 38,152 $ 48,300 $ 31,944 $ — $ — $ — $ — $ 87,266 $ 70,096 Accrued liabilities (2) $ 982 $ 3,042 $ 14,333 $ 14,486 $ — $ 1,000 $ — $ — $ 15,315 $ 18,528 (1) Other receivables include receivables from vendors included in prepaid and other current assets. (2) Includes current portion of operating lease liabilities included in other current liabilities. The Company's results from transactions with its related parties for each of the three months ended March 31, 2022 and 2021, are as follows (in thousands): Ablecom Compuware Corporate Venture MPS Total Three months ended March 31, Three months ended March 31, Three months ended March 31, Three months ended March 31, Three months ended March 31, 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Net sales $ 2 $ 2 $ 3,928 $ 3,580 $ 43,739 $ 16,850 $ — $ — $ 47,669 $ 20,432 Purchases - inventory $ 49,472 $ 32,150 $ 43,989 $ 24,115 $ — $ — $ 2,018 $ 1,189 $ 95,479 $ 57,454 Purchases - other miscellaneous items $ 1,687 $ 2,002 $ 404 $ 475 $ — $ — $ — $ — $ 2,091 $ 2,477 The Company's results from transactions with its related parties for each of the nine months ended March 31, 2022 and 2021, are as follows (in thousands): Ablecom Compuware Corporate Venture MPS Total Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Net sales $ 12 $ (25) $ 22,932 $ 22,451 $ 97,262 $ 36,427 $ — $ — $ 120,206 $ 58,853 Purchases - inventory $ 147,780 $ 77,838 $ 126,039 $ 87,330 $ — $ — $ 6,074 $ 2,677 $ 279,893 $ 167,845 Purchases - other miscellaneous items $ 6,671 $ 7,482 $ 1,090 $ 1,434 $ — $ — $ — $ — $ 7,761 $ 8,916 The Company’s cash flow impact from transactions with its related parties for each of the nine months ended March 31, 2022 and 2021, are as follows (in thousands): Ablecom Compuware Corporate Venture MPS Total Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, Nine months ended March 31, 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Changes in accounts receivable 1 $ (30) $ (182) $ 133 $ (25,224) $ (3,635) $ — $ — $ (25,405) $ (3,532) Changes in other receivable $ 3,159 $ (211) $ (8,933) $ (296) $ — $ — $ 48 $ 65 $ (5,726) $ (442) Changes in accounts payable $ 814 $ (8,768) $ 16,356 $ (9,528) $ — $ — $ — $ — $ 17,170 $ (18,296) Changes in accrued liabilities $ (2,060) $ 955 $ (153) $ (635) $ (1,000) $ (500) $ — $ — $ (3,213) $ (180) Changes in other long-term liabilities $ — $ (513) $ 596 $ (186) $ — $ (1,000) $ — $ — $ 596 $ (1,699) Purchases of property, plant and equipment $ 2,365 $ 5,675 $ 140 $ 170 $ — $ — $ — $ — $ 2,505 $ 5,845 Unpaid property, plant and equipment $ 681 $ 1,434 $ 48 68 $ — $ — $ — $ — $ 729 $ 1,502 |
Stock-based Compensation and _2
Stock-based Compensation and Stockholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Assumptions Used to Estimate Fair Value of Stock Options Granted Using Black-Scholes Option Pricing Model | The fair value of stock option grants for the three and nine months ended March 31, 2022 and 2021 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Risk-free interest rate 1.65% 0.58% 0.81% - 1.65% 0.27% - 0.58% Expected term 6.09 years 5.98 years 6.09 years 5.98 years Dividend yield —% —% —% —% Volatility 49.99% 50.32% 49.69% - 49.99% 50.32% - 50.43% Weighted-average fair value $19.31 $15.91 $18.09 $13.57 |
Schedule of Stock-based Compensation Expense | The following table shows total stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended March 31, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of sales $ 460 $ 402 $ 1,378 $ 1,312 Research and development 4,141 3,328 12,124 10,369 Sales and marketing 504 503 1,517 1,517 General and administrative 2,636 3,261 8,913 7,919 Stock-based compensation expense before taxes 7,741 7,494 23,932 21,117 Income tax impact (2,431) (2,389) (8,077) (6,080) Stock-based compensation expense, net $ 5,310 $ 5,105 $ 15,855 $ 15,037 |
Summary Of Operational And Stock Price Milestones | The achievement status of the operational and stock price milestones as of March 31, 2022 was as follows: Annualized Revenue Milestone Achievement Status Stock Price Milestone Achievement Status (in billions) $4.0 Achieved $45 Not met $4.8 Probable $60 Not met $5.8 Probable $75 Not met $6.8 Probable $95 Not met $8.0 Improbable $120 Not met |
Summary of Stock Option Activity | The following table summarizes stock option activity during the nine months ended March 31, 2022 under all plans: Options Weighted Weighted Balance as of June 30, 2021 5,175,554 $ 26.17 Granted 286,000 $ 37.72 Exercised (921,001) $ 17.32 Forfeited/Cancelled (123,113) $ 29.48 Balance as of March 31, 2022 4,417,440 $ 28.64 5.50 Options vested and exercisable at March 31, 2022 2,700,170 $ 21.61 3.38 |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU and PRSU activity during the nine months ended March 31, 2022 under all plans: Time-Based RSUs Weighted PRSUs Weighted Balance as of June 30, 2021 1,854,956 $ 26.79 15,000 $ 34.27 Granted 840,435 $ 37.44 2,939 $ 34.27 Released (517,530) $ 22.92 (17,939) $ 34.27 Forfeited (274,972) $ 29.44 — $ — Balance as of March 31, 2022 1,902,889 $ 32.09 — $ — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Property, Plant and Equipment | The following is a summary of property, plant and equipment, net (in thousands): March 31, June 30, 2022 2021 Long-lived assets: United States $ 176,012 $ 180,143 Asia 103,476 91,640 Europe 2,831 2,930 $ 282,319 $ 274,713 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Mar. 03, 2022 | Mar. 02, 2022 | Apr. 30, 2018 | |
Revolving Credit Facility | Bank of America 2018 Credit Agreement | Bank of America | Line of Credit | ||||||||
Concentration Risk [Line Items] | ||||||||
Credit facility, maximum borrowing capacity | $ 350,000,000 | $ 200,000,000 | $ 250,000,000 | |||||
Supplier concentration risk | Purchases, Total | Two Supplier | Supplier One | ||||||||
Concentration Risk [Line Items] | ||||||||
Concentration risk percentage | 13.00% | 21.40% | 18.00% | 21.10% | ||||
Supplier concentration risk | Purchases, Total | Two Supplier | Supplier Two | ||||||||
Concentration Risk [Line Items] | ||||||||
Concentration risk percentage | 19.40% | 14.70% | 11.40% | 13.80% | ||||
Supplier concentration risk | Purchases | Ablecom And Compuware | ||||||||
Concentration Risk [Line Items] | ||||||||
Concentration risk percentage | 8.20% | 7.30% | 9.00% | 7.90% | ||||
Customer concentration risk | Revenue Benchmark | One Customer | ||||||||
Concentration Risk [Line Items] | ||||||||
Concentration risk percentage | 10.20% | |||||||
Customer concentration risk | Accounts receivable | One Customer | ||||||||
Concentration Risk [Line Items] | ||||||||
Concentration risk percentage | 13.50% |
Revenue - Summary of Net Sales
Revenue - Summary of Net Sales by Product Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,355,490 | $ 895,881 | $ 3,560,639 | $ 2,488,437 |
Server and storage systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,145,869 | 693,339 | 2,981,777 | 1,953,838 |
Subsystems and accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 209,621 | $ 202,542 | $ 578,862 | $ 534,599 |
Revenue - Summary of Net Sale_2
Revenue - Summary of Net Sales by Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,355,490 | $ 895,881 | $ 3,560,639 | $ 2,488,437 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 762,418 | 499,061 | 1,961,573 | 1,458,249 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 309,972 | 207,204 | 857,165 | 495,326 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 205,444 | 162,285 | 600,589 | 429,193 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 77,656 | $ 27,331 | $ 141,312 | $ 105,669 |
Revenue - Contract Balances Nar
Revenue - Contract Balances Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Description of payment terms | Generally, the payment terms of the Company’s offerings range from 30 to 60 days. | ||
Deferred revenue | $ 202.3 | ||
Contract with customer liability, revenue recognized in the period | $ 23 | $ 79.7 | |
Increase in deferred revenue | $ 27.4 |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) $ in Millions | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining revenue performance obligation, amount | $ 229.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining revenue performance obligation, percent to be recognized | 50.00% |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||||
Net income | $ 76,972 | $ 18,428 | $ 144,341 | $ 72,703 |
Denominator: | ||||
Weighted-average shares outstanding (in shares) | 51,708,000 | 50,553,000 | 51,269,000 | 51,465,000 |
Effect of dilutive securities (in shares) | 2,079,000 | 2,665,000 | 2,132,000 | 2,282,000 |
Weighted-average diluted shares (in shares) | 53,786,000 | 53,218,000 | 53,401,000 | 53,747,000 |
Basic net income per common share (in dollars per share) | $ 1.49 | $ 0.36 | $ 2.82 | $ 1.41 |
Diluted net income per common share (in dollars per share) | $ 1.43 | $ 0.35 | $ 2.70 | $ 1.35 |
Employee stock options and restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive outstanding equity awards (in shares) | 452,611,000 | 578,892,000 | 452,182,000 | 617,807,000 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Inventory, Net [Abstract] | |||||
Finished goods | $ 994,184 | $ 994,184 | $ 761,694 | ||
Work in process | 253,246 | 253,246 | 80,472 | ||
Purchased parts and raw materials | 341,112 | 341,112 | 198,798 | ||
Total inventories | 1,588,542 | 1,588,542 | $ 1,040,964 | ||
Provision for excess and obsolete inventory | $ 10,200 | $ 2,900 | $ 13,900 | $ 4,600 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Prepaid Expense and Other Current Assets [Abstract] | ||
Other receivables | $ 139,380 | $ 99,921 |
Prepaid expenses | 7,302 | 6,719 |
Deferred service costs | 5,365 | 4,900 |
Prepaid income tax | 341 | 12,288 |
Restricted cash | 251 | 251 |
Others | 10,325 | 6,116 |
Total prepaid expenses and other current assets | 162,964 | 130,195 |
Receivables from contract manufacturers, buy-sell arrangement | $ 96,000 | $ 76,200 |
Balance Sheet Components - Cash
Balance Sheet Components - Cash, Cash Equivalents, Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 247,424 | $ 232,266 | ||
Restricted cash included in prepaid expenses and other current assets | 251 | 251 | ||
Restricted cash included in other assets | 920 | 932 | ||
Total cash, cash equivalents and restricted cash | $ 248,595 | $ 233,449 | $ 179,072 | $ 212,390 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 444,911 | $ 420,535 |
Accumulated depreciation and amortization | (162,592) | (145,822) |
Property, plant and equipment, net | 282,319 | 274,713 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 143,509 | 86,930 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 111,714 | 97,671 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 84,616 | 76,421 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 48,846 | 26,640 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 32,590 | 22,843 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 23,333 | 22,592 |
Building construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 303 | $ 87,438 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Other Assets [Abstract] | ||
Operating lease right-of-use asset | $ 25,338 | $ 20,047 |
Deferred service costs, non-current | 6,170 | 5,421 |
Prepaid expense, non-current | 1,911 | 1,973 |
Investment in auction rate security | 1,556 | 1,556 |
Deposits | 1,118 | 1,669 |
Restricted cash, non-current | 920 | 932 |
Other | 1,834 | 528 |
Total other assets | $ 38,847 | $ 32,126 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 |
Accrued Liabilities [Abstract] | |||
Accrued payroll and related expenses | $ 45,837 | $ 45,770 | |
Contract manufacturing liabilities | 35,032 | 45,319 | |
Customer deposits | 23,810 | 32,419 | |
Accrued warranty costs | 9,322 | 10,185 | $ 10,813 |
Accrued cooperative marketing expenses | 8,609 | 5,652 | |
Operating lease liability | 7,291 | 6,322 | |
Accrued professional fees | 3,381 | 2,737 | |
Accrued legal liabilities | 18,250 | 0 | |
Other | 29,916 | 30,446 | |
Total accrued liabilities | $ 181,448 | $ 178,850 |
Balance Sheet Components - Perf
Balance Sheet Components - Performance Awards Liability (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021USD ($) | Mar. 31, 2020USD ($)tranche | Mar. 31, 2022USD ($) | Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||
Performance bonus, liability tranche two | $ 4,000,000 | ||||||
Performance bonus, liability tranche one | $ 2,000,000 | $ 2,000,000 | $ 3,600,000 | ||||
Reduction in payment for performance bonus, tranche one | $ 2,000,000 | ||||||
Benefit from adjustment | $ 1,600,000 | ||||||
Bonus compensation expense | $ 0 | $ 2,500,000 | $ 5,100,000 | ||||
Chief Executive Officer | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||
Performance bonuses approved | $ 8,100,000 | ||||||
Performance bonus, number of tranches | tranche | 2 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 |
Other Long-term Liabilities [Abstract] | |||
Accrued unrecognized tax benefits including related interests and penalties, non-current | $ 19,427 | $ 17,841 | |
Operating lease liability, non-current | 18,416 | 14,539 | |
Accrued warranty costs, non-current | 2,673 | 2,678 | $ 2,712 |
Other | 1,101 | 6,074 | |
Total other long-term liabilities | $ 41,617 | $ 41,132 |
Balance Sheet Components - Prod
Balance Sheet Components - Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Product Warranties: | |||||
Balance, beginning of the period | $ 11,583 | $ 13,503 | $ 12,863 | $ 12,379 | |
Provision for warranty | 7,514 | 6,791 | 19,956 | 22,250 | |
Costs utilized | (7,797) | (7,441) | (21,717) | (22,501) | |
Change in estimated liability for pre-existing warranties | 695 | 672 | 893 | 1,397 | |
Balance, end of the period | 11,995 | 13,525 | 11,995 | 13,525 | |
Current portion | 9,322 | 10,813 | 9,322 | 10,813 | $ 10,185 |
Non-current portion | $ 2,673 | $ 2,712 | $ 2,673 | $ 2,712 | $ 2,678 |
Fair Value Disclosure - Cash Eq
Fair Value Disclosure - Cash Equivalents and Long-term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Auction rate security | ||
Asset at Fair Value | ||
Auction rate security | $ 1,556 | $ 1,556 |
Fair Value, Measurements, Recurring | ||
Asset at Fair Value | ||
Total assets measured at fair value | 2,555 | 2,570 |
Fair Value, Measurements, Recurring | Auction rate security | ||
Asset at Fair Value | ||
Auction rate security | 1,556 | 1,556 |
Fair Value, Measurements, Recurring | Level 1 | ||
Asset at Fair Value | ||
Total assets measured at fair value | 152 | 151 |
Fair Value, Measurements, Recurring | Level 1 | Auction rate security | ||
Asset at Fair Value | ||
Auction rate security | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Asset at Fair Value | ||
Total assets measured at fair value | 847 | 863 |
Fair Value, Measurements, Recurring | Level 2 | Auction rate security | ||
Asset at Fair Value | ||
Auction rate security | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Asset at Fair Value | ||
Total assets measured at fair value | 1,556 | 1,556 |
Fair Value, Measurements, Recurring | Level 3 | Auction rate security | ||
Asset at Fair Value | ||
Auction rate security | 1,556 | 1,556 |
Money Market Funds | ||
Asset at Fair Value | ||
Restricted cash and equivalents | 200 | 200 |
Money Market Funds | Fair Value, Measurements, Recurring | ||
Asset at Fair Value | ||
Cash and cash equivalents | 152 | 151 |
Money Market Funds | Fair Value, Measurements, Recurring | Level 1 | ||
Asset at Fair Value | ||
Cash and cash equivalents | 152 | 151 |
Money Market Funds | Fair Value, Measurements, Recurring | Level 2 | ||
Asset at Fair Value | ||
Cash and cash equivalents | 0 | 0 |
Money Market Funds | Fair Value, Measurements, Recurring | Level 3 | ||
Asset at Fair Value | ||
Cash and cash equivalents | 0 | 0 |
Certificates of Deposit | ||
Asset at Fair Value | ||
Cash and cash equivalents | 200 | 200 |
Restricted cash and equivalents | 400 | 400 |
Prepaid expense and other assets | 300 | 300 |
Certificates of Deposit | Fair Value, Measurements, Recurring | ||
Asset at Fair Value | ||
Cash and cash equivalents | 847 | 863 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Level 1 | ||
Asset at Fair Value | ||
Cash and cash equivalents | 0 | 0 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Level 2 | ||
Asset at Fair Value | ||
Cash and cash equivalents | 847 | 863 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Level 3 | ||
Asset at Fair Value | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Disclosure - Long-te
Fair Value Disclosure - Long-term Investments (Details) - Auction rate security - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Cost Basis | $ 1,750 | $ 1,750 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | (194) | (194) |
Fair Value | $ 1,556 | $ 1,556 |
Fair Value Disclosure - Narrati
Fair Value Disclosure - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities without readily determinable fair value, amount | $ 1,200,000 | $ 1,200,000 | $ 100,000 | ||
Auction rate security | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain (loss) on auction rate security | 0 | $ 0 | 0 | $ 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of debt outstanding | $ 547,500,000 | $ 547,500,000 | $ 98,200,000 |
Short-term and Long-term Debt -
Short-term and Long-term Debt - Schedule of Short-term and Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 403,045 | $ 63,490 |
Long-term debt | 144,423 | 34,700 |
Total debt | 547,468 | 98,190 |
Short-term debt and current portion of long-term debt | 403,045 | 63,490 |
Debt, non-current | 144,423 | 34,700 |
Revolving Credit Facility | Line of Credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 395,469 | 38,400 |
Revolving Credit Facility | CTBC Bank | Line of Credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 101,000 | 18,000 |
Revolving Credit Facility | HSBC Bank | Line of Credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 30,000 | 0 |
Revolving Credit Facility | E.SUN Bank | Line of Credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 23,000 | 20,400 |
Revolving Credit Facility | Line of Credit | Bank of America | ||
Short-term Debt [Line Items] | ||
Short-term debt | 241,469 | 0 |
Secured debt | Term loan | ||
Short-term Debt [Line Items] | ||
Long-term debt | 151,999 | 59,790 |
Secured debt | CTBC Bank term loan, due June 4, 2030 | Term loan | ||
Short-term Debt [Line Items] | ||
Long-term debt | 41,718 | 34,700 |
Secured debt | CTBC Bank term loan, due December 27, 2027 | Term loan | ||
Short-term Debt [Line Items] | ||
Long-term debt | 5,505 | 0 |
Secured debt | E.SUN Bank term loan, due September 15, 2026 | Term loan | ||
Short-term Debt [Line Items] | ||
Long-term debt | 28,138 | 0 |
Secured debt | Mega Bank term loan, due September 15, 2026 | Term loan | ||
Short-term Debt [Line Items] | ||
Long-term debt | 41,803 | 0 |
Secured debt | Chang Hwa Bank term loan due October 15, 2026 | Term loan | ||
Short-term Debt [Line Items] | ||
Long-term debt | 34,835 | 0 |
Secured debt | Term loan | CTBC Bank | ||
Short-term Debt [Line Items] | ||
Short-term debt | 0 | $ 25,090 |
Secured debt | Term loan | E.SUN Bank | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 28,100 |
Short-term and Long-term Debt_2
Short-term and Long-term Debt - Bank of America Credit Facility Narrative (Details) - USD ($) | 1 Months Ended | |||||
Apr. 30, 2018 | Mar. 31, 2022 | Mar. 23, 2022 | Mar. 03, 2022 | Mar. 02, 2022 | Jun. 30, 2021 | |
Short-term Debt [Line Items] | ||||||
Short-term debt | $ 403,045,000 | $ 63,490,000 | ||||
Revolving Credit Facility | Bank of America | Line of Credit | Bank of America 2018 Credit Agreement | ||||||
Short-term Debt [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 250,000,000 | $ 350,000,000 | $ 200,000,000 | |||
Line of credit facility, accordion feature, increase limit | $ 100,000,000 | $ 150,000,000 | ||||
Short-term debt | 241,500,000 | 0 | ||||
Debt issuance costs | 800,000 | $ 500,000 | ||||
Credit facility, remaining borrowing capacity | $ 108,500,000 | |||||
Revolving Credit Facility | Bank of America | Line of Credit | Bank of America 2018 Credit Agreement | Minimum | ||||||
Short-term Debt [Line Items] | ||||||
Interest rate (as a percent) | 1.50% | 1.50% | ||||
Revolving Credit Facility | Bank of America | Line of Credit | Bank of America 2018 Credit Agreement | Minimum | SOFR | ||||||
Short-term Debt [Line Items] | ||||||
Credit facility, basis spread on variable rate (as a percent) | 0.50% | |||||
Revolving Credit Facility | Bank of America | Line of Credit | Bank of America 2018 Credit Agreement | Maximum | ||||||
Short-term Debt [Line Items] | ||||||
Interest rate (as a percent) | 1.54% | 1.54% | ||||
Revolving Credit Facility | Bank of America | Line of Credit | Bank of America 2018 Credit Agreement | Maximum | SOFR | ||||||
Short-term Debt [Line Items] | ||||||
Credit facility, basis spread on variable rate (as a percent) | 1.50% | |||||
Revolving Credit Facility | Bank of America | Line of Credit | 2022 Bank of America Credit Facility | ||||||
Short-term Debt [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 20,000,000 | |||||
Short-term debt | $ 0 |
Short-term and Long-term Debt_3
Short-term and Long-term Debt - CTBC Bank Narrative (Details) | Jul. 20, 2021USD ($) | May 06, 2020USD ($) | Mar. 31, 2022USD ($) | Jul. 20, 2021TWD ($) | Jun. 30, 2021USD ($) | Aug. 24, 2020USD ($) | May 06, 2020TWD ($) |
Short-term Debt [Line Items] | |||||||
Long-term debt | $ 144,423,000 | $ 34,700,000 | |||||
Short-term debt | 403,045,000 | $ 63,490,000 | |||||
Secured debt | Term loan | CTBC Bank | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 0.75% | ||||||
Short-term debt | 0 | $ 25,090,000 | |||||
Credit facility, remaining borrowing capacity | 4,000,000 | ||||||
Secured debt | CTBC Bank | Term loan | Two Thousand Twenty CTBC Term Loan Facility | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, term | 10 years | ||||||
Credit facility, maximum borrowing capacity | $ 42,900,000 | $ 40,700,000 | $ 1,200,000,000 | $ 50,000,000 | $ 1,200,000,000 | ||
Secured debt | CTBC Bank | Term loan | Two Thousand Twenty One CTBC Term Loan Facility | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, term | 75 months | ||||||
Credit facility, maximum borrowing capacity | $ 55,400,000 | 1,550,000,000 | |||||
Secured debt | CTBC Bank | Term loan | Two Thousand Twenty One CTBC Machine Loan | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 12,500,000 | 350,000,000 | |||||
Secured debt | CTBC Bank | Term loan | CTBC Credit Facility, 12 Month, Up To 0.50% Interest | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, term | 12 months | ||||||
Credit facility, maximum borrowing capacity | $ 44,700,000 | 1,250,000,000 | |||||
Secured debt | CTBC Bank | Term loan | CTBC Bank | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 0.98% | ||||||
Long-term debt | 101,000,000 | $ 18,000,000 | |||||
Revolving Credit Facility | Line of Credit | CTBC Bank | |||||||
Short-term Debt [Line Items] | |||||||
Collateral amount | $ 77,700,000 | ||||||
Revolving Credit Facility | CTBC Bank | Line of Credit | Two Thousand Twenty One CTBC Term Loan Facility | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 105,000,000 | ||||||
Customs Bond | CTBC Bank | Term loan | CTBC Credit Facility, 12 Month, Up To 0.50% Interest | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, term | 12 months | ||||||
Credit facility, maximum borrowing capacity | $ 3,600,000 | $ 100,000,000 | |||||
Interest rate, stated percentage | 0.50% | 0.50% | |||||
Customs Bond | CTBC Bank | Line of Credit | CTBC Credit Facility, 12 Month, Up To 100% Of Eligible Accounts Receivable, Between 0.70% And 0.75% Interest | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, term | 12 months | ||||||
Credit facility, maximum borrowing capacity | $ 105,000,000 | ||||||
Percent of eligible accounts receivable | 100.00% | 100.00% | |||||
CTBC's Established NTD Interest Rate | Secured debt | CTBC Bank | Term loan | CTBC Credit Facility, 12 Month, Up To 0.50% Interest | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, basis spread on variable rate (as a percent) | 0.50% | ||||||
Minimum | Secured debt | CTBC Bank | Term loan | CTBC Bank | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 0.70% | 0.94% | 0.70% | ||||
Maximum | Secured debt | CTBC Bank | Term loan | CTBC Bank | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 0.75% | 1.40% | 0.75% | ||||
Term loan | Secured debt | |||||||
Short-term Debt [Line Items] | |||||||
Long-term debt | $ 151,999,000 | 59,790,000 | |||||
Term loan | Secured debt | Two Thousand Twenty CTBC Term Loan Facility | |||||||
Short-term Debt [Line Items] | |||||||
Long-term debt | 41,700,000 | 34,700,000 | |||||
Term loan | Secured debt | Two Thousand Twenty One CTBC Machine Loan | |||||||
Short-term Debt [Line Items] | |||||||
Long-term debt | $ 5,500,000 | $ 0 | |||||
Term loan | Secured debt | CTBC Bank | Two Thousand Twenty CTBC Term Loan Facility | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 0.70% | 0.45% | |||||
Term loan | Secured debt | CTBC Bank | Two Thousand Twenty One CTBC Machine Loan | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 0.90% |
Short-term and Long-term Debt_4
Short-term and Long-term Debt - E.SUN Bank and Mega Bank Credit Facility Narrative (Details) | Apr. 25, 2022USD ($) | Sep. 13, 2021USD ($) | Apr. 25, 2022TWD ($) | Mar. 31, 2022USD ($) | Sep. 13, 2021TWD ($) | Jun. 30, 2021USD ($) | Dec. 02, 2020USD ($) |
Short-term Debt [Line Items] | |||||||
Short-term debt | $ 403,045,000 | $ 63,490,000 | |||||
Revolving Credit Facility | E.SUN Bank | E.SUN Bank | Line of Credit | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 57,600,000 | 23,000,000 | $ 1,600,000,000 | $ 20,400,000 | $ 30,000,000 | ||
Credit facility, term | 120 days | ||||||
Credit facility, remaining borrowing capacity | $ 7,000,000 | ||||||
Revolving Credit Facility | E.SUN Bank | E.SUN Bank | Line of Credit | Minimum | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 1.09% | 1.00% | |||||
Revolving Credit Facility | E.SUN Bank | E.SUN Bank | Line of Credit | Maximum | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 1.33% | 1.29% | |||||
Revolving Credit Facility | E.SUN Bank | E.SUN Bank | Draw Down Instruments | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 30,000,000 | ||||||
Revolving Credit Facility | E.SUN Bank | E.SUN Bank | Import Loan | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, maximum borrowing capacity | 30,000,000 | ||||||
Revolving Credit Facility | Mega Bank Credit Facility | Mega Bank | Line of Credit | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 43,200,000 | $ 41,800,000 | $ 1,200,000,000 | ||||
Drawdowns percentage | 80.00% | ||||||
Revolving Credit Facility | Mega Bank Credit Facility | Mega Bank | Line of Credit | Minimum | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 0.645% | 0.895% | 0.645% | ||||
Revolving Credit Facility | Mega Bank Credit Facility | Mega Bank | Line of Credit | Maximum | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 0.845% | 1.095% | 0.845% | ||||
Revolving Credit Facility | Omnibus Credit Authorization Agreement | Mega Bank | Line of Credit | Subsequent Event | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 20,000,000 | ||||||
Share ownership percentage | 100.00% | ||||||
Revolving Credit Facility | Credit Authorization Agreement | Mega Bank | Line of Credit | Subsequent Event | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, term | 120 days | ||||||
Interest rate (as a percent) | 0.75% | 0.75% | |||||
Interest rate, stated percentage | 0.90% | 0.90% | |||||
Drawdowns period | 6 months | ||||||
Debt instrument fee | $ 400 | ||||||
Revolving Credit Facility | Credit Authorization Agreement | Mega Bank | Line of Credit | Subsequent Event | TAIFX OFFER | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, basis spread on variable rate (as a percent) | 0.23% | ||||||
Basis spread on variable rate, divided by amount | 0.946 | ||||||
Revolving Credit Facility | Credit Authorization Agreement | Mega Bank | Line of Credit | Subsequent Event | US Basic Loan Rate | |||||||
Short-term Debt [Line Items] | |||||||
Interest rate (as a percent) | 0.10% | 0.10% | |||||
Secured debt | E.SUN Bank | Term loan | |||||||
Short-term Debt [Line Items] | |||||||
Short-term debt | $ 28,100,000 | ||||||
Interest rate (as a percent) | 1.245% | ||||||
Secured debt | E.SUN Bank | E.SUN Bank | Line of Credit | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility, term | 5 years |
Short-term and Long-term Debt_5
Short-term and Long-term Debt - Chang Hwa Bank Narrative (Details) - Chang Hwa Bank Credit Facility - Chang Hwa Bank | Mar. 31, 2022USD ($) | Oct. 05, 2021USD ($)contract | Oct. 05, 2021TWD ($)contract |
Short-term Debt [Line Items] | |||
Loan contracts | contract | 3 | 3 | |
Revolving Credit Facility | Line of Credit | |||
Short-term Debt [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 34,800,000 | $ 36,000,000 | $ 1,000,000,000 |
Interest rate (as a percent) | 1.05% | ||
Revolving Credit Facility | Draw Down Instruments | |||
Short-term Debt [Line Items] | |||
Credit facility, maximum borrowing capacity | $ | $ 20,000,000 |
Short-term and Long-term Debt_6
Short-term and Long-term Debt - HSBC Bank Credit Facility Narrative (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 403,045,000 | $ 63,490,000 |
Revolving Credit Facility | HSBC Bank Credit Facility | HSBC Bank | Export Seller Trade Loan | ||
Short-term Debt [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 30,000,000 | |
Credit facility, term | 120 days | |
Revolving Credit Facility | HSBC Bank Credit Facility | HSBC Bank | Line of Credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 30,000,000 | |
Interest rate (as a percent) | 0.96% | |
Credit facility, remaining borrowing capacity | $ 0 |
Short-term and Long-term Debt_7
Short-term and Long-term Debt - Maturities of Short-term and Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Debt Disclosure [Abstract] | ||
2022 | $ 377,969 | |
2023 | 29,853 | |
2024 | 33,530 | |
2025 | 37,014 | |
2026 | 37,014 | |
2027 and thereafter | 32,088 | |
Total debt | $ 547,468 | $ 98,190 |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs and Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
Operating lease expense (including expense for lease agreements with related parties of $143 and $568 for the three and nine months ended March 31, 2022, respectively, and $347 and $1,040 for the three and nine months ended March 31, 2021, respectively) | $ 2,017 | $ 1,952 | $ 6,183 | $ 5,900 |
Cash payments for operating leases (including payments to related parties of $141 and $631 for the three and nine months ended March 31, 2022, respectively, and $347 and $1,040 for the three and nine months ended March 31, 2021, respectively) | 1,854 | 1,994 | 6,067 | 5,951 |
New operating lease assets obtained in exchange for operating lease liabilities | 3,730 | 22 | 11,108 | 2,715 |
Affiliated | ||||
Related Party Transaction [Line Items] | ||||
Operating lease expense (including expense for lease agreements with related parties of $143 and $568 for the three and nine months ended March 31, 2022, respectively, and $347 and $1,040 for the three and nine months ended March 31, 2021, respectively) | 143 | 347 | 568 | 1,040 |
Cash payments for operating leases (including payments to related parties of $141 and $631 for the three and nine months ended March 31, 2022, respectively, and $347 and $1,040 for the three and nine months ended March 31, 2021, respectively) | $ 141 | $ 347 | $ 631 | $ 1,040 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||||
Variable lease payments | $ 0.2 | $ 0.4 | $ 0.7 | $ 1.2 |
Operating lease, weighted average remaining lease term | 4 years | 4 years | ||
Incremental borrowing rate | 3.00% | 3.00% |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Liability Payments (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 2,004 |
2023 | 7,817 |
2024 | 6,524 |
2025 | 6,122 |
2026 | 2,644 |
2027 and beyond | 2,084 |
Total future lease payments | 27,195 |
Less: Imputed interest | (1,489) |
Present value of operating lease liabilities | $ 25,706 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||||
Outstanding purchase order | $ 628,600,000 | $ 628,600,000 | |||
Corporate Venture | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 30.00% | 30.00% | |||
Impairment on investments | $ 0 | $ 0 | $ 0 | $ 0 | |
Corporate Venture | Accrued Liabilities | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, unamortized deferred gain from sale | 0 | 0 | $ 1,000,000 | ||
Affiliated | |||||
Related Party Transaction [Line Items] | |||||
Outstanding purchase order | $ 82,800,000 | $ 82,800,000 | |||
Investor in China | Corporate Venture | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 70.00% | 70.00% | |||
Ablecom | |||||
Related Party Transaction [Line Items] | |||||
Related party, product sold percent | 88.80% | 92.50% | 82.50% | 92.50% | |
Ablecom | Affiliated | Cancellable Purchase Obligation | |||||
Related Party Transaction [Line Items] | |||||
Outstanding purchase order | $ 44,600,000 | $ 44,600,000 | 44,900,000 | ||
Ablecom | Affiliated | No-Cancellable Purchase Obligation | |||||
Related Party Transaction [Line Items] | |||||
Outstanding purchase order | $ 40,500,000 | $ 40,500,000 | 40,200,000 | ||
Ablecom | Steve Liang and other family members | Management and immediate family member of management | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 28.80% | 28.80% | |||
Ablecom | Charles Liang and wife | Investee | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 10.50% | 10.50% | |||
Compuware | Affiliated | Cancellable Purchase Obligation | |||||
Related Party Transaction [Line Items] | |||||
Outstanding purchase order | $ 192,400,000 | $ 192,400,000 | 123,300,000 | ||
Compuware | Affiliated | No-Cancellable Purchase Obligation | |||||
Related Party Transaction [Line Items] | |||||
Outstanding purchase order | $ 42,300,000 | $ 42,300,000 | $ 71,000,000 |
Related Party Transactions - Tr
Related Party Transactions - Transactions (Details) - Affiliated - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||||
Accounts receivable | $ 34,084 | $ 34,084 | $ 8,678 | ||
Other receivable | 29,561 | 29,561 | 23,837 | ||
Accounts payable | 87,266 | 87,266 | 70,096 | ||
Accrued liabilities | 15,315 | 15,315 | 18,528 | ||
Net sales | 47,669 | $ 20,432 | 120,206 | $ 58,853 | |
Purchases - inventory | 95,479 | 57,454 | 279,893 | 167,845 | |
Purchases - other miscellaneous items | 2,091 | 2,477 | 7,761 | 8,916 | |
Changes in accounts receivable | (25,405) | (3,532) | |||
Changes in other receivable | (5,726) | (442) | |||
Changes in accounts payable | 17,170 | (18,296) | |||
Changes in accrued liabilities | (3,213) | (180) | |||
Changes in other long-term liabilities | 596 | (1,699) | |||
Purchases of property, plant and equipment | 2,505 | 5,845 | |||
Unpaid property, plant and equipment | 729 | 1,502 | |||
Ablecom | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable | 1 | 1 | 2 | ||
Other receivable | 2,415 | 2,415 | 5,575 | ||
Accounts payable | 38,966 | 38,966 | 38,152 | ||
Accrued liabilities | 982 | 982 | 3,042 | ||
Net sales | 2 | 2 | 12 | (25) | |
Purchases - inventory | 49,472 | 32,150 | 147,780 | 77,838 | |
Purchases - other miscellaneous items | 1,687 | 2,002 | 6,671 | 7,482 | |
Changes in accounts receivable | 1 | (30) | |||
Changes in other receivable | 3,159 | (211) | |||
Changes in accounts payable | 814 | (8,768) | |||
Changes in accrued liabilities | (2,060) | 955 | |||
Changes in other long-term liabilities | 0 | (513) | |||
Purchases of property, plant and equipment | 2,365 | 5,675 | |||
Unpaid property, plant and equipment | 681 | 1,434 | |||
Compuware | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable | 381 | 381 | 198 | ||
Other receivable | 27,105 | 27,105 | 18,173 | ||
Accounts payable | 48,300 | 48,300 | 31,944 | ||
Accrued liabilities | 14,333 | 14,333 | 14,486 | ||
Net sales | 3,928 | 3,580 | 22,932 | 22,451 | |
Purchases - inventory | 43,989 | 24,115 | 126,039 | 87,330 | |
Purchases - other miscellaneous items | 404 | 475 | 1,090 | 1,434 | |
Changes in accounts receivable | (182) | 133 | |||
Changes in other receivable | (8,933) | (296) | |||
Changes in accounts payable | 16,356 | (9,528) | |||
Changes in accrued liabilities | (153) | (635) | |||
Changes in other long-term liabilities | 596 | (186) | |||
Purchases of property, plant and equipment | 140 | 170 | |||
Unpaid property, plant and equipment | 48 | 68 | |||
Corporate Venture | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable | 33,702 | 33,702 | 8,478 | ||
Other receivable | 0 | 0 | 0 | ||
Accounts payable | 0 | 0 | 0 | ||
Accrued liabilities | 0 | 0 | 1,000 | ||
Net sales | 43,739 | 16,850 | 97,262 | 36,427 | |
Purchases - inventory | 0 | 0 | 0 | 0 | |
Purchases - other miscellaneous items | 0 | 0 | 0 | 0 | |
Changes in accounts receivable | (25,224) | (3,635) | |||
Changes in other receivable | 0 | 0 | |||
Changes in accounts payable | 0 | 0 | |||
Changes in accrued liabilities | (1,000) | (500) | |||
Changes in other long-term liabilities | 0 | (1,000) | |||
Purchases of property, plant and equipment | 0 | 0 | |||
Unpaid property, plant and equipment | 0 | 0 | |||
MPS | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable | 0 | 0 | 0 | ||
Other receivable | 41 | 41 | 89 | ||
Accounts payable | 0 | 0 | 0 | ||
Accrued liabilities | 0 | 0 | $ 0 | ||
Net sales | 0 | 0 | 0 | 0 | |
Purchases - inventory | 2,018 | 1,189 | 6,074 | 2,677 | |
Purchases - other miscellaneous items | $ 0 | $ 0 | 0 | 0 | |
Changes in accounts receivable | 0 | 0 | |||
Changes in other receivable | 48 | 65 | |||
Changes in accounts payable | 0 | 0 | |||
Changes in accrued liabilities | 0 | 0 | |||
Changes in other long-term liabilities | 0 | 0 | |||
Purchases of property, plant and equipment | 0 | 0 | |||
Unpaid property, plant and equipment | $ 0 | $ 0 |
Related Party Transactions - _2
Related Party Transactions - Tripartite Agreement (Details) - Nov. 08, 2021 - Tripartite Agreement $ in Millions, $ in Millions | Total | USD ($) | TWD ($) | Total | m² | a |
Related Party Transaction [Line Items] | ||||||
Land to be acquired by subsidiary (percent) | 33.33% | |||||
Total land to be acquired | 137,225.97 | 34 | ||||
Related party transaction completion period | 12 months | |||||
Line of Credit | Land | ||||||
Related Party Transaction [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 28.3 | $ 789 | ||||
Affiliated | Compuware | ||||||
Related Party Transaction [Line Items] | ||||||
Land acquired by related party (percent) | 17.21% | |||||
Affiliated | Ablecom | ||||||
Related Party Transaction [Line Items] | ||||||
Land acquired by related party (percent) | 49.46% |
Stock-based Compensation and _3
Stock-based Compensation and Stockholders' Equity - Equity Incentive Plan Narrative (Details) - shares | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 05, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for outstanding awards (in shares) | 4,417,440 | 5,175,554 | |
Equity Incentive Plan, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of awards authorized (in shares) | 5,000,000 | ||
Shares reserved for future issuance (in shares) | 1,045,000 | ||
Authorized shares available for future issuance (in shares) | 1,979,112 | ||
Equity Incentive Plan, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized shares available for future issuance (in shares) | 0 | ||
Shares reserved for outstanding awards (in shares) | 7,246,000 |
Stock-based Compensation and _4
Stock-based Compensation and Stockholders' Equity - Common Stock Repurchase Narrative (Details) - January 2021 Share Repurchase Program - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2022 | Jan. 29, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock repurchase program, authorized amount | $ 200,000,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 150,000,000 | $ 150,000,000 | |
Stock repurchases (in shares) | 0 | 0 |
Stock-based Compensation and _5
Stock-based Compensation and Stockholders' Equity - Fair Value Assumptions and Expense (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Stock-based compensation expense before taxes | $ 7,741 | $ 7,494 | $ 23,932 | $ 21,117 | |
Income tax impact | (2,431) | (2,389) | (8,077) | (6,080) | |
Stock-based compensation expense, net | 5,310 | 5,105 | 15,855 | 15,037 | |
Stock-based compensation expense before taxes | 7,741 | 7,494 | 23,932 | 21,117 | |
Cost of sales | |||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Stock-based compensation expense before taxes | 460 | 402 | 1,378 | 1,312 | |
Stock-based compensation expense before taxes | 460 | 402 | 1,378 | 1,312 | |
Research and development | |||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Stock-based compensation expense before taxes | 4,141 | 3,328 | 12,124 | 10,369 | |
Stock-based compensation expense before taxes | 4,141 | 3,328 | 12,124 | 10,369 | |
Sales and marketing | |||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Stock-based compensation expense before taxes | 504 | 503 | 1,517 | 1,517 | |
Stock-based compensation expense before taxes | 504 | 503 | 1,517 | 1,517 | |
General and administrative | |||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Stock-based compensation expense before taxes | 2,636 | 3,261 | 8,913 | 7,919 | |
Stock-based compensation expense before taxes | $ 2,636 | $ 3,261 | $ 8,913 | $ 7,919 | |
Employee stock option | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Risk-free interest rate | 1.65% | 0.58% | |||
Risk-free interest rate, minimum | 0.81% | 0.27% | |||
Risk-free interest rate, maximum | 1.65% | 0.58% | |||
Expected term | 6 years 1 month 2 days | 5 years 11 months 23 days | 6 years 1 month 2 days | 5 years 11 months 23 days | |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |
Volatility | 49.99% | 50.32% | |||
Volatility, minimum | 49.69% | 50.32% | |||
Volatility, maximum | 49.99% | 50.43% | |||
Weighted-average fair value (in dollars per share) | $ 19.31 | $ 15.91 | $ 18.09 | $ 13.57 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Unrecognized compensation cost related to non-vested stock-based awards | $ 9,600 | $ 9,600 | |||
Unrecognized compensation cost related to non-vested stock based awards, period for recognition (in years) | 3 years 6 months 25 days | ||||
Restricted stock units (RSUs) | |||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Unrecognized compensation cost related to non-vested stock-based awards | 53,000 | $ 53,000 | |||
Unrecognized compensation cost related to non-vested stock based awards, period for recognition (in years) | 2 years 8 months 19 days | ||||
Performance-Based Restricted Stock Units (PRSUs) | |||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Stock-based compensation expense before taxes | $ 100 | ||||
Stock-based compensation expense before taxes | 100 | ||||
2021 CEO Performance Stock Option | |||||
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||||
Stock-based compensation expense before taxes | 1,500 | $ 300 | 5,300 | $ 300 | |
Unrecognized compensation cost related to non-vested stock-based awards | 5,200 | $ 5,200 | $ 10,500 | ||
Unrecognized compensation cost related to non-vested stock based awards, period for recognition (in years) | 2 years 9 months | ||||
Stock-based compensation expense before taxes | $ 1,500 | $ 300 | $ 5,300 | $ 300 |
Stock-based Compensation and _6
Stock-based Compensation and Stockholders' Equity - Stock Option Activity Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021trancheoperationalMilestonetradingDayconsecutiveQuarter$ / sharesshares | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants in period (in shares) | shares | 286,000 | |||||
Stock-based compensation expense before taxes | $ 7,741 | $ 7,494 | $ 23,932 | $ 21,117 | ||
2021 CEO Performance Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants in period (in shares) | shares | 1,000,000 | |||||
Number of vesting tranches | tranche | 5 | |||||
Market price milestone, number of trading days | tradingDay | 60 | |||||
Number of operational milestones | operationalMilestone | 5 | |||||
Consecutive fiscal quarters for operational milestones | consecutiveQuarter | 4 | |||||
Stock-based compensation expense before taxes | 1,500 | $ 300 | 5,300 | $ 300 | ||
Unrecognized compensation cost related to non-vested stock-based awards | $ 5,200 | $ 5,200 | $ 10,500 | |||
Unrecognized compensation cost related to non-vested stock based awards, period for recognition (more than) (in years) | 2 years 9 months | |||||
2021 CEO Performance Stock Option | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Market price milestone (USD per share) | $ / shares | $ 45 | |||||
2021 CEO Performance Stock Option | Tranche Five | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Market price milestone (USD per share) | $ / shares | $ 120 |
Stock-based Compensation and _7
Stock-based Compensation and Stockholders' Equity - Summary of Operational and Stock Price Milestones (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net sales | $ 1,355,490 | $ 895,881 | $ 3,560,639 | $ 2,488,437 |
Milestone One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net sales | 4,000,000 | |||
Milestone Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net sales | 4,800,000 | |||
Milestone Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net sales | 5,800,000 | |||
Milestone Four | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net sales | 6,800,000 | |||
Milestone Five | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net sales | $ 8,000,000 | |||
2021 CEO Performance Stock Option | Milestone One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Price Milestone (in dollars per share) | $ 45 | $ 45 | ||
2021 CEO Performance Stock Option | Milestone Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Price Milestone (in dollars per share) | 60 | 60 | ||
2021 CEO Performance Stock Option | Milestone Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Price Milestone (in dollars per share) | 75 | 75 | ||
2021 CEO Performance Stock Option | Milestone Four | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Price Milestone (in dollars per share) | 95 | 95 | ||
2021 CEO Performance Stock Option | Milestone Five | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Price Milestone (in dollars per share) | $ 120 | $ 120 |
Stock-based Compensation and _8
Stock-based Compensation and Stockholders' Equity - Stock Option Activity (Details) - $ / shares | 9 Months Ended |
Mar. 31, 2022 | |
Options Outstanding | |
Balance at beginning of period (in shares) | 5,175,554 |
Granted (in shares) | 286,000 |
Exercised (in shares) | (921,001) |
Forfeited/Cancelled (in shares) | (123,113) |
Balance at end of period (in shares) | 4,417,440 |
Options vested and exercisable (in shares) | 2,700,170 |
Weighted Average Exercise Price per Share | |
Balance at beginning of period (in dollars per share) | $ 26.17 |
Granted (in dollars per share) | 37.72 |
Exercised (in dollars per share) | 17.32 |
Forfeited/Cancelled (in dollars per share) | 29.48 |
Balance at end of period (in dollars per share) | 28.64 |
Options vested and exercisable (in dollars per share) | $ 21.61 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Weighted average remaining contractual term, options outstanding (in years) | 5 years 6 months |
Weighted average remaining contractual term, options vested and exercisable (in years) | 3 years 4 months 17 days |
Stock-based Compensation and _9
Stock-based Compensation and Stockholders' Equity - RSU and PRSU Activity Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2020trancheshares | Jun. 30, 2021shares | Jun. 30, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of tranches | tranche | 2 | ||
Performance-Based Restricted Stock Units (PRSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of units per vesting tranche (in shares) | 15,000 | ||
Units earned in period (in shares) | 2,939 | 0 |
Stock-based Compensation and_10
Stock-based Compensation and Stockholders' Equity - RSU and PRSU Activity (Details) | 9 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Restricted stock units (RSUs) | |
Time-Based RSUs Outstanding | |
Balance at beginning of period (in shares) | shares | 1,854,956 |
Granted (in shares) | shares | 840,435 |
Released (in shares) | shares | (517,530) |
Forfeited (in shares) | shares | (274,972) |
Balance at end of period (in shares) | shares | 1,902,889 |
Weighted Average Grant-Date Fair Value per Share | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 26.79 |
Granted (in dollars per share) | $ / shares | 37.44 |
Released (in dollars per share) | $ / shares | 22.92 |
Forfeited (in dollars per share) | $ / shares | 29.44 |
Balance at end of period (in dollars per share) | $ / shares | $ 32.09 |
Performance-Based Restricted Stock Units (PRSUs) | |
Time-Based RSUs Outstanding | |
Balance at beginning of period (in shares) | shares | 15,000 |
Granted (in shares) | shares | 2,939 |
Released (in shares) | shares | (17,939) |
Forfeited (in shares) | shares | 0 |
Balance at end of period (in shares) | shares | 0 |
Weighted Average Grant-Date Fair Value per Share | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 34.27 |
Granted (in dollars per share) | $ / shares | 34.27 |
Released (in dollars per share) | $ / shares | 34.27 |
Forfeited (in dollars per share) | $ / shares | 0 |
Balance at end of period (in dollars per share) | $ / shares | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ 16,192 | $ (227) | $ 27,116 | $ 8,541 |
Effective tax rate (as a percent) | 17.40% | (1.20%) | 15.90% | 10.50% |
Unrecognized tax benefits | $ 38,900 | $ 38,900 | ||
Unrecognized tax benefits that would impact tax rate | 15,700 | 15,700 | ||
Interest and penalties relating to unrecognized tax benefits | 3,100 | 3,100 | ||
Expected decrease in unrecognized tax benefits over next twelve months | $ 1,000 | $ 1,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Mar. 11, 2022USD ($) | Mar. 31, 2022USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2022USD ($) | Dec. 16, 2021 | Jun. 30, 2021USD ($) | Feb. 08, 2018claim |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||||
Number of putative class action complaints | claim | 2 | ||||||
Litigation settlement amount | $ 18,250,000 | ||||||
Liabilities | $ 1,797,258,000 | $ 1,797,258,000 | $ 1,145,566,000 | ||||
Notice of dismissal period | 30 days | ||||||
Notice period for shareholders consent | 45 days | 45 days | |||||
Civil money penalty payment | $ 17,500,000 | ||||||
Purchase commitments, total | $ 628,600,000 | $ 628,600,000 | |||||
Accrued Liabilities | |||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||||
Liabilities | 18,250,000 | 18,250,000 | |||||
Other Receivables | |||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||||
Litigation settlement costs recovery | 16,250,000 | 16,250,000 | |||||
Super Micro Computer, Inc. | |||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||||
Litigation settlement amount | $ 2,000,000 | ||||||
Super Micro Computer, Inc. | General and administrative | |||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||||
Litigation settlement amount | 2,000,000 | 2,000,000 | |||||
Chief Executive Officer | |||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||||
Payment received from CEO for settlement | $ 2,122,000 | ||||||
Affiliated | |||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||||
Purchase commitments, total | $ 82,800,000 | $ 82,800,000 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Reporting - Property, P
Segment Reporting - Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 282,319 | $ 274,713 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 176,012 | 180,143 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 103,476 | 91,640 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 2,831 | $ 2,930 |