Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jul. 31, 2016 | Dec. 31, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | ALPHA & OMEGA SEMICONDUCTOR Ltd | ||
Entity Central Index Key | 1,387,467 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K/A | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
Entity Common Stock, Shares Outstanding | 22,755,936 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 162 | ||
Amendment Description | This Amendment No. 1 on Form 10-K/A (this “Form 10-K/A”) to the Annual Report on Form 10-K of Alpha and Omega Semiconductor Limited (the “Company”) for the fiscal year ended June 30, 2016, filed with the Securities and Exchange Commission (the “SEC”) on August 26, 2016 (the “Original 10-K”) is being filed solely for the purpose of adding the following disclosures in Item 9A on Part II of Form 10-K that were inadvertently omitted in the Original 10-K; (i) a description of the framework under which the management assessed the Company’s internal control over financial reporting; and (ii) an explicit statement of management’s conclusion that the Company’s internal control over financial reporting was effective. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 87,774 | $ 106,085 |
Restricted cash | 188 | 368 |
Accounts receivable, net | 26,594 | 38,781 |
Inventories | 68,848 | 64,175 |
Other current assets | 4,526 | 4,279 |
Total current assets | 187,930 | 213,688 |
Property, plant and equipment, net | 116,084 | 119,579 |
Deferred income tax assets - long term | 12,132 | 12,340 |
Other long-term assets | 2,359 | 2,297 |
Total assets | 318,505 | 347,904 |
Current liabilities: | ||
Accounts payable | 42,718 | 44,083 |
Accrued liabilities | 22,590 | 19,225 |
Income taxes payable | 2,356 | 1,372 |
Deferred margin | 997 | 716 |
Capital leases | 819 | 941 |
Total current liabilities | 69,480 | 66,337 |
Income taxes payable - long term | 1,577 | 1,601 |
Deferred income tax liabilities | 2,973 | 2,310 |
Other long term liabilities | 2,436 | 1,017 |
Total liabilities | 76,466 | 71,265 |
Commitments and contingencies (Note 13) | ||
Preferred shares, par value $0.002 per share: | ||
Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2016 and 2015 | 0 | 0 |
Common shares, par value $0.002 per share: | ||
Authorized: 50,000 shares; Issued and outstanding: 28,405 shares and 22,754 shares at June 30, 2016 and 27,314 shares and 26,316 shares at June 30, 2015 | 57 | 55 |
Treasury shares at cost; 5,651 shares at June 30, 2016 and 998 shares at June 30, 2015 | (50,199) | (8,593) |
Additional paid-in capital | 191,444 | 181,040 |
Accumulated other comprehensive income | 769 | 905 |
Retained earnings | 100,071 | 103,232 |
Total Alpha and Omega Semiconductor Limited shareholders’ equity | 242,142 | 276,639 |
Noncontrolling interest | (103) | 0 |
Total equity | 242,039 | 276,639 |
Total liabilities and equity | $ 318,505 | $ 347,904 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Common shares, par value (in dollars per share) | $ 0.002 | $ 0.002 |
Common shares, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 28,405,000 | 27,314,000 |
Common stock, shares outstanding (in shares) | 22,754,000 | 26,316,000 |
Preferred stock, par value (in dollars per share) | $ 0.002 | $ 0.002 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury shares (in shares) | 5,651,000 | 998,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 335,661 | $ 327,935 | $ 318,121 |
Cost of goods sold | 269,839 | 267,453 | 259,050 |
Gross profit | 65,822 | 60,482 | 59,071 |
Operating expenses: | |||
Research and development | 26,006 | 27,075 | 24,409 |
Selling, general and administrative | 37,874 | 37,625 | 34,554 |
Impairment of long-lived assets | 432 | 0 | 0 |
Total operating expenses | 64,312 | 64,700 | 58,963 |
Operating income (loss) | 1,510 | (4,218) | 108 |
Interest income and other income (loss), net | (498) | 533 | (177) |
Interest expense | (23) | (181) | (266) |
Income (loss) before income taxes | 989 | (3,866) | (335) |
Income tax expense | 4,021 | 3,897 | 2,769 |
Net loss including noncontrolling interest | (3,032) | (7,763) | (3,104) |
Net loss attributable to noncontrolling interest | (104) | 0 | 0 |
Net loss attributable to Alpha and Omega Semiconductor Limited | $ (2,928) | $ (7,763) | $ (3,104) |
Net loss per common share attributable to Alpha and Omega Semiconductor Limited | |||
Basic (in dollars per share) | $ (0.13) | $ (0.29) | $ (0.12) |
Diluted (in dollars per share) | $ (0.13) | $ (0.29) | $ (0.12) |
Weighted average number of common share attributable to Alpha and Omega Semiconductor Limited used to compute net loss per share: | |||
Basic (in shares) | 22,452 | 26,429 | 25,952 |
Diluted (in shares) | 22,452 | 26,429 | 25,952 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss including noncontrolling interest | $ (3,032) | $ (7,763) | $ (3,104) |
Other comprehensive income, net of tax, foreign currency translation adjustment | (135) | (128) | 76 |
Comprehensive loss | (3,167) | (7,891) | (3,028) |
Noncontrolling interest | (103) | 0 | 0 |
Comprehensive loss attributable to Alpha and Omega Semiconductor Limited | $ (3,064) | $ (7,891) | $ (3,028) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total AOS Shareholders' Equity [Member] | Convertible Preferred Shares [Member] | Common Shares [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Total equity | $ 281,600 | ||||||||
Balance (in shares) at Jun. 30, 2013 | 0 | ||||||||
Balance (in shares) at Jun. 30, 2013 | 25,882,000 | ||||||||
Balance (in shares) at Jun. 30, 2013 | (226,000) | ||||||||
Balance at Jun. 30, 2013 | $ 281,600 | $ 0 | $ 51 | $ (2,054) | $ 168,352 | $ 957 | $ 114,294 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of common stock options and release of RSUs (in shares) | 552,000 | ||||||||
Exercise of common stock options and release of RSUs | 1,099 | 1,099 | $ 1 | 1,098 | |||||
Reissuance of Treasury Stock (in shares) | 6,000 | ||||||||
Reissuance of Treasury Stock | 83 | 0 | $ 83 | (83) | |||||
Reissuance of treasury stock and tax withholding on RSUs | 0 | ||||||||
Shares Paid for Tax Withholding for Share Based Compensation | (41,000) | ||||||||
Adjustments Related to Tax Withholding for Share-based Compensation | (316) | (316) | (316) | ||||||
Issuance of common shares under Employee Stock Purchase Plan (in shares) | 251,000 | ||||||||
Issuance of common shares under Employee Stock Purchase Plan | $ 1,576 | 1,576 | $ 1 | 1,575 | |||||
Repurchase of common shares under shares repurchase program (in shares) | (119,594) | (120,000) | |||||||
Repurchase of common shares under shares repurchase program | $ (918) | (918) | $ (918) | ||||||
Share-based compensation expense | 3,375 | 3,375 | 3,375 | ||||||
Net loss | (3,104) | (3,104) | (3,104) | ||||||
Cumulative translation adjustment | 76 | ||||||||
Balance (in shares) at Jun. 30, 2014 | 0 | ||||||||
Balance (in shares) at Jun. 30, 2014 | 26,644,000 | ||||||||
Balance (in shares) at Jun. 30, 2014 | (340,000) | ||||||||
Balance at Jun. 30, 2014 | 283,388 | $ 0 | $ 53 | $ (2,889) | 174,084 | 1,033 | 111,107 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | |||||||
Net loss including noncontrolling interest | (3,104) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 76 | 76 | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 76 | ||||||||
Total equity | 283,388 | ||||||||
Exercise of common stock options and release of RSUs (in shares) | 475,000 | ||||||||
Exercise of common stock options and release of RSUs | 1,409 | 1,409 | $ 1 | 1,408 | |||||
Reissuance of Treasury Stock (in shares) | 8,000 | ||||||||
Reissuance of Treasury Stock | 112 | 0 | $ 112 | (112) | |||||
Reissuance of treasury stock and tax withholding on RSUs | 0 | ||||||||
Shares Paid for Tax Withholding for Share Based Compensation | (61,000) | ||||||||
Adjustments Related to Tax Withholding for Share-based Compensation | (539) | (539) | (539) | ||||||
Issuance of common shares under Employee Stock Purchase Plan (in shares) | 256,000 | ||||||||
Issuance of common shares under Employee Stock Purchase Plan | $ 1,598 | 1,598 | $ 1 | 1,597 | |||||
Repurchase of common shares under shares repurchase program (in shares) | (666,230) | (666,000) | |||||||
Repurchase of common shares under shares repurchase program | $ (5,816) | (5,816) | $ (5,816) | ||||||
Share-based compensation expense | 4,490 | 4,490 | 4,490 | ||||||
Net loss | (7,763) | (7,763) | (7,763) | ||||||
Cumulative translation adjustment | $ (128) | ||||||||
Balance (in shares) at Jun. 30, 2015 | 0 | 0 | |||||||
Balance (in shares) at Jun. 30, 2015 | 27,314,000 | 27,314,000 | |||||||
Balance (in shares) at Jun. 30, 2015 | (998,000) | (998,000) | |||||||
Balance at Jun. 30, 2015 | $ 276,639 | 276,639 | $ 0 | $ 55 | $ (8,593) | 181,040 | 905 | 103,232 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to noncontrolling interest | 0 | 0 | |||||||
Net loss including noncontrolling interest | (7,763) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | (128) | (128) | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (128) | ||||||||
Total equity | 276,639 | ||||||||
Exercise of common stock options and release of RSUs (in shares) | 926,000 | ||||||||
Exercise of common stock options and release of RSUs | 5,330 | 5,330 | $ 1 | 5,329 | |||||
Reissuance of Treasury Stock (in shares) | 42,000 | ||||||||
Reissuance of Treasury Stock | 233 | 242 | $ 475 | (233) | |||||
Reissuance of treasury stock and tax withholding on RSUs | 242 | ||||||||
Shares Paid for Tax Withholding for Share Based Compensation | (93,000) | ||||||||
Adjustments Related to Tax Withholding for Share-based Compensation | (1,036) | (1,036) | (1,036) | ||||||
Issuance of common shares under Employee Stock Purchase Plan (in shares) | 258,000 | ||||||||
Issuance of common shares under Employee Stock Purchase Plan | $ 1,799 | 1,799 | $ 1 | 1,798 | |||||
Repurchase of common shares under shares repurchase program (in shares) | (4,695,499) | (4,695,000) | |||||||
Repurchase of common shares under shares repurchase program | $ (42,081) | (42,081) | $ (42,081) | ||||||
Share-based compensation expense | 4,313 | 4,313 | 4,313 | ||||||
Net loss | (2,928) | (2,928) | (2,928) | ||||||
Cumulative translation adjustment | $ (135) | ||||||||
Balance (in shares) at Jun. 30, 2016 | 0 | 0 | |||||||
Balance (in shares) at Jun. 30, 2016 | 28,405,000 | 28,405,000 | |||||||
Balance (in shares) at Jun. 30, 2016 | (5,651,000) | (5,651,000) | |||||||
Balance at Jun. 30, 2016 | $ 242,142 | 242,142 | $ 0 | $ 57 | $ (50,199) | $ 191,444 | 769 | $ 100,071 | (103) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to noncontrolling interest | (104) | (104) | |||||||
Net loss including noncontrolling interest | (3,032) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | $ (136) | $ (136) | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | $ 1 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (135) | ||||||||
Total equity | $ 242,039 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | |||
Net loss including noncontrolling interest | $ (3,032) | $ (7,763) | $ (3,104) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 27,303 | 27,547 | 27,876 |
Allowance for doubtful accounts | 0 | 0 | (363) |
Share-based compensation expense | 4,313 | 4,490 | 3,375 |
Deferred income taxes, net | 871 | 785 | 574 |
(Gain) loss on disposal of property and equipment | 95 | (103) | (160) |
Impairment of long-lived assets | 432 | 0 | 0 |
Government grant via forgiven loan | 0 | (250) | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | 12,187 | (2,247) | 2,126 |
Inventories | (4,674) | 2,386 | 1,779 |
Other current and long-term assets | (310) | (517) | (1,429) |
Accounts payable | (1,162) | 3,335 | 5,517 |
Income taxes payable | 960 | (1,276) | (916) |
Accrued and other liabilities | 3,199 | 1,282 | 2,685 |
Net cash provided by operating activities | 40,182 | 27,669 | 37,960 |
Cash flows from investing activities | |||
Purchase of property and equipment | (21,901) | (21,492) | (9,395) |
Proceeds from sale of property and equipment | 0 | 272 | 244 |
(Increase) decrease in restricted cash | 180 | (125) | (40) |
Net cash used in investing activities | (21,721) | (21,345) | (9,191) |
Cash flows from financing activities | |||
Withholding tax on restricted stock units | (1,036) | (539) | (316) |
Proceeds from exercise of stock options and ESPP | 7,371 | 3,007 | 2,675 |
Payment for repurchase of common shares | (42,081) | (5,816) | (918) |
Repayments of borrowings | 0 | (13,571) | (3,571) |
Principal payments on capital leases | (940) | (1,061) | (1,267) |
Net cash used in financing activities | (36,686) | (17,980) | (3,397) |
Effect of exchange rate changes on cash and cash equivalents | (86) | (47) | 10 |
Net increase (decrease) in cash and cash equivalents | (18,311) | (11,703) | 25,382 |
Cash and cash equivalents at beginning of year | 106,085 | 117,788 | 92,406 |
Cash and cash equivalents at end of year | 87,774 | 106,085 | 117,788 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 9 | 171 | 304 |
Cash paid for income taxes | 3,139 | 4,813 | 2,585 |
Supplemental disclosures of non-cash investing and financing information: | |||
Property and equipment purchased but not yet paid | 5,711 | 5,728 | 3,390 |
Property and equipment acquired under capital leases | 2,449 | 0 | 1,921 |
Reissuance of Treasury Stock | $ 233 | $ 112 | $ 83 |
The Company and Significant Acc
The Company and Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Significant Accounting Policies | The Company and Significant Accounting Policies The Company Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”, "AOS", "we" or "us") design, develop and supply a broad range of power semiconductors. The Company's portfolio of products targets high-volume applications, including personal computers, flat panel TVs, LED lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. The Company conducts its operations primarily in the United States of America (“USA”), Hong Kong, China, Taiwan, Korea and Japan. Basis of Preparation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest after elimination of inter-company balances and transactions. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Reclassification The Company has reclassified certain amounts previously reported in its financial statements to conform to the current presentation. These reclassifications did not have a material impact on our consolidated financial statements. Correction of Errors In this Annual Report on Form 10-K, certain prior year financial information has been restated due to an accounting correction. During the quarter ended March 31, 2016, the Company identified and recorded immaterial errors related to the fiscal years ended June 30, 2015, 2014 and 2013. The immaterial errors resulted from overstatement of long-term deferred income tax liabilities and income tax expenses. The overall impact of the errors on the Company's consolidated financial position and results of operations is not material and as such, previously filed Annual Reports on Form 10-K for the years affected by the errors have not been amended. The adjustments resulted in a decrease in net loss of $172,000 , $204,000 and $149,000 for the years ended June 30, 2015, 2014 and 2013, respectively and a decrease in basic and diluted net loss per common share of $0.01 for the years ended June 30, 2015, 2014 and 2013. The impact to the consolidated balance sheets as of June 30, 2015, 2014 and 2013 was a decrease in deferred income tax liabilities of $525,000 , $353,000 and $149,000 , respectively and an increase in retained earnings by the same amounts. Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets. Foreign Currency Transactions and Translation Most of the Company's principal subsidiaries use U.S. dollars as their functional currency because their transactions are primarily conducted and settled in U.S. dollars. All of their revenues and a significant portion of their operating expenses are denominated in U.S. dollars. The functional currencies for the Company's in-house packaging and testing facilities in China are U.S. dollars, and a significant majority of their capital expenditures are denominated in U.S. dollars. Foreign currency transactions are translated into the functional currencies using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses, resulting from the settlement of such transactions and from the remeasurement of monetary assets and liabilities denominated in foreign currencies using exchange rates at balance sheet date and non-monetary assets and liabilities using historical exchange rates, are recognized in the consolidated statements of operations. For the Company's subsidiaries which use the local currency as their functional currency, their results and financial position are translated into U.S. dollars using exchange rates at balance sheet dates for assets and liabilities and using average exchange rates for income and expenses items. The resulting translation differences are presented as a separate component of accumulated other comprehensive income (loss) and noncontrolling interest in the consolidated statements of equity. Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on hand and short-term bank deposits with original maturities of three months or less. Cash equivalents are highly liquid investments with stated maturities of three months or less as of the dates of purchase. The carrying amounts reported for cash and cash equivalents are considered to approximate fair values based upon their short maturities. Cash and cash equivalents are maintained with reputable major financial institutions. If, due to current economic conditions or other factors, one or more of the financial institutions with which the Company maintains deposits fails, the Company's cash and cash equivalents may be at risk. Deposits with these banks may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, therefore, bear minimal risk. Accounts Receivable The allowance for doubtful accounts is based on assessment of the collectibility of accounts receivable from customers. The Company reviews the allowance by considering factors such as historical collection experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer's ability to pay. The Company writes off a receivable and charges against its recorded allowance when it has exhausted its collection efforts without success. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Fair Value of Financial Instruments The fair value of cash equivalents are based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure and terms of the debts. Inventories The Company carries inventories at the lower of cost (determined on a first-in, first-out basis) or market value. Cost includes semiconductor wafer and raw materials, labor, depreciation expenses and other manufacturing expenses and overhead, and packaging and testing fees paid to third parties if subcontractors are used. Inventory reserves are made based on the Company's periodic review of inventory quantities on hand as compared with its sales forecasts, historical usage, aging of inventories, production yield levels and current product selling prices. If actual market conditions are less favorable than those forecasted by management, additional future inventory write-downs may be required that could adversely affect the Company's operating results. Inventory reserves once established are not reversed until the related inventory has been sold or scrapped. Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditures that are directly attributable to the acquisition of the items and the costs incurred to make the assets ready for their intended use. Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 years Manufacturing machinery and equipment 3 to 10 years Equipment and tooling 5 years Computer equipment and software 3 to 5 years Office furniture and equipment 5 years Leasehold improvements 2 to 15 years based on shorter of expected economic useful life or the lease term Equipment and construction in progress represent equipment received but necessary installation has not been fully performed or leasehold improvements have been started but not yet completed. Equipment and construction in progress are stated at cost and transferred to respective asset class when fully completed and ready for their intended use. Internal-use software development costs are capitalized to the extent that the costs are directly associated with the development of identifiable and unique software products controlled by the Company that will probably generate economic benefits beyond one year. Costs incurred during the application development stage are required to be capitalized. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Costs included employee costs incurred and fees paid to outside consultants for the software development and implementation. Internal developed software is amortized over its estimated useful life of five years starting from the date when it is ready for its intended use. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized as selling, general and administrative expenses in the consolidated statements of operations. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Impairment of Long-Lived Assets Long-lived assets or asset groups are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. Factors that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. Where such factors indicate potential impairment, the recoverability of an asset or asset group is assessed by determining if the carrying value of the asset or asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life. The impairment loss is measured based on the difference between the carrying amount and estimated fair value. Goodwill Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually, or whenever changes in circumstances indicate that the carrying amount of goodwill or intangible assets may not be recoverable. These tests are performed at the reporting unit level using a two-step, fair-value based approach. In testing for a potential impairment of goodwill, the Company first compares the carrying value of assets and liabilities to the estimated fair value. If estimated fair value is less than carrying value, then potential impairment exists. The amount of any impairment is then calculated by determining the implied fair value of goodwill using a hypothetical purchase price allocation, similar to that which would be applied if it were an acquisition and the purchase price was equivalent to fair value as calculated in the first step. Impairment is equivalent to any excess of goodwill carrying value over its implied fair value. The process of evaluating the potential impairment of goodwill requires significant judgment at many points during the analysis, including calculating fair value of each reporting unit based on estimated future cash flows and discount rates to be applied. The Company re-evaluates its intangible assets and goodwill for impairment during the fourth quarter of fiscal year. Goodwill is recorded in other long-term assets in the Company's consolidated balance sheets. Intangible Assets Intangible assets are stated at cost less accumulated amortization. Intangible assets include patents and exclusive technology rights, trade names and customer relationships. Intangible assets with finite lives are amortized on a straight-line basis over the estimated periods of benefit, as follows: Patents and exclusive technology rights 3 to 7 years Trade name 3 years Customer relationships 4 years The Company evaluates its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future undiscounted net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and fair value less costs to sell. Intangible assets are recorded in other long-term assets in the Company's consolidated balance sheets. Joint Venture In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China to form a joint venture for a new state-of-the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing (the "Joint Venture"). The initial capitalization of the Joint Venture under the agreement is $330.0 million , which includes cash contribution from the Chongqing funds and contributions of cash, equipments and intangible assets from the Company. The Company owns 51% and the Chongqing funds owns 49% of the equity interest of the Joint Venture. The Joint Venture is accounted under the provisions of the consolidation guidance since the Company has controlling financial interest. Revenue Recognition The Company recognizes revenue when there is persuasive evidence that an arrangement exists, delivery has occurred, the price to the buyer is fixed or determinable and when collectability is reasonably assured. The Company recognizes revenue when product is shipped to the customer, net of estimated stock rotation returns and price adjustments that it expects to provide to certain distributors. The Company sells its products primarily to distributors, who in turn sell the products globally to various end customers. The Company allows stock rotation returns from certain distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by distributors during a specified period. The Company records an allowance for stock rotation returns based on historical returns and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company's products. The Company estimates the expected price adjustments at the time revenue is recognized based on distributor inventory levels, pre-approved future distributor selling prices, distributor margins and demand for its products. If actual stock rotation returns or price adjustments differ from their estimates, adjustments are recorded in the period when the actual information is known. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the consolidated balance sheets. Revenue from certain distributors is deferred until the distributor resells the products to end customers due to price protection adjustments and right of returns that cannot be reliably measured. The deferred revenue, net of the associated deferred cost of the inventory, is recorded as deferred margin on the consolidated balance sheets. Packaging and testing services revenue is recognized upon shipment of serviced products to the customer. Product Warranty The Company provides a standard one-year warranty for the products it sells. The Company accrues for estimated warranty costs at the time revenue is recognized. The Company's warranty obligation is affected by product failure rates, labor and material costs for replacing defective parts, related freight costs for failed parts and other quality assurance costs. The Company monitors its product returns for warranty claims and maintains warranty reserves based on historical experiences and anticipated warranty claims known at the time of estimation. Shipping and Handling Costs Shipping and handling costs are included in cost of goods sold. Research and Development Research and development costs are expensed as incurred. Provision for Income Taxes Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts. The Company is subject to income taxes in a number of jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company establishes accruals for certain tax contingencies based on estimates of whether additional taxes may be due. While the final tax outcome of these matters may differ from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or research and experimentation tax credit carryforwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that cannot be realized. We consider all available positive and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not that deferred tax assets are recoverable. We consider evidence such as our past operating results, the existence of cumulative losses in recent years and our forecast of future taxable income. The Financial Accounting Standards Board, or FASB, issued guidance which clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely to be realized upon ultimate settlement. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. If the ultimate resolution of tax uncertainties is different from what is currently estimated, a material impact on income tax expense could result. Our provision for income taxes is subject to volatility and could be adversely impacted by changes in earnings or tax laws and regulations in various jurisdictions. We are subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of changes to reserves, as well as the related net interest and penalties. Share-based Compensation Expense The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant using the Black-Scholes option valuation model. Share-based compensation expense is recognized on the accelerated vesting attribution basis over the requisite service period of the award, which generally equals the vesting period. The Company maintains an equity-settled, share-based compensation plan which grants share options and restricted share units (the "RSUs") to employees, directors and consultants. In May 2010, the Company adopted the Employee Share Purchase Plan (the "ESPP"). The fair value of RSUs is based on the fair value of the Company's common share on the date of grant. The fair values of stock options and common stock issued under the ESPP are determined at the date of grant using the Black-Scholes option valuation model. The Company determined the weighted average valuation assumptions as follows: • Expected term is determined by using the historical data of industry peers as adjusted for expected changes in future exercise patterns. Starting July 2016, expected term will be estimated using the Company’s historical exercise behavior and expected future exercise behavior. • Forfeiture rate is estimated based on the historical average period of time that the awards were outstanding and forfeited. The estimate of forfeitures is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. Changes in estimated forfeitures are recognized in the period of change and impact the amount of stock compensation expenses to be recognized in future periods, which could be material if actual results differ significantly from our estimates. • Volatility is estimated based on combining both the Company's historical volatility and the volatility of industry peers over a period equivalent to the expected term of the stock awards granted. Starting July 2016, the Company's publicly traded shares history will be solely used in estimating the volatility rate. • Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the awards granted. • Dividend yield is zero as the Company has never declared or paid any dividends and currently has no intention to pay dividends in the foreseeable future. Advertising Advertising expenditures are expensed as incurred. Advertising expense was $0.4 million , $0.5 million , and $0.3 million for the fiscal years ended June 30, 2016 , 2015 , and 2014 , respectively. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. Leases Leases entered into by the Company as a lessee are classified as capital or operating leases. Leases that transfer to the Company substantially the entire risks and benefits incidental to ownership are classified as capital leases. At the inception of a capital lease, an asset and an obligation are recorded at an amount equal to the lesser of the present value of the minimum lease payments and the asset’s fair market value at the beginning of each lease. Rental payments under operating leases are expensed as incurred. Risks and Uncertainties The Company is subject to certain risks and uncertainties. The Company believes changes in any of the following areas could have a material adverse effect on the Company's future financial position or results of operations or cash flows: new product development, including market receptiveness, operation of in-house manufacturing facilities, litigation or claims against the Company based on intellectual property, patent, product regulatory or other factors, competition from other products, general economic conditions, the ability to attract and retain qualified employees, the ability to successfully operate joint venture and ultimately to sustain profitable operations. The semiconductor industry is characterized by rapid technological change, competition, competitive pricing pressures and cyclical market patterns. The Company's financial results are affected by a wide variety of factors, including general economic conditions specific to the semiconductor industry and the Company's particular market, such as the personal computing (PC) markets, the timely implementation of new products, new manufacturing process technology and the ability to safeguard patents and intellectual property in a rapidly evolving market. In addition, the semiconductor market has historically been cyclical and subject to significant economic downturns. As a result, the Company may experience significant period-to-period fluctuations in operating results due to the factors mentioned above or other factors. The Company transitioned from a fabless to a “fab-lite” business model by completing the acquisition of the Oregon fab on January 31, 2012. Under this model, the Company allocates its wafer manufacturing requirements to both in-house capacity and selected third-party foundries. The Company also deploys and implements its proprietary power discrete processes and equipment at third-party foundries to maximize the performance and quality of its products. The Company's revenue may be impacted by its ability to obtain adequate wafer supplies from third-party foundries and utilize wafer production and packaging and testing capacity from its in-house facilities. Currently the Company's main third-party foundry is Shanghai Hua Hong Grace Electronic Company Limited, or HHGrace, located in Shanghai, China. HHGrace has been manufacturing wafers for the Company since 2002. HHGrace manufactured 25.0% and 25.0% of the wafers used in the Company's products for the fiscal year ended June 30, 2016 and 2015 , respectively. Although the Company believes that its volume of production allows the Company to secure favorable pricing and priority in allocation of capacity in its third-party foundries, if the foundries' capacities are constrained due to market demands, HHGrace, together with other foundries from which the Company purchases wafers, may not be willing or able to satisfy all of the Company's manufacturing requirements on a timely basis and/or at favorable prices. The Company is also subject to the risks of service disruptions and raw material shortages by its foundries. Such disruptions, shortages and price increases could harm the Company's operating results. In addition, manufacturing facilities' capacity affects the Company's gross margin because the Company has certain fixed costs associated with its Oregon fab and in-house packaging and testing facilities. If the Company fails to utilize its manufacturing facilities' capacity at a desirable level, its financial condition and results of operations will be adversely effected. Recent Accounting Pronouncements In May 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-12, "Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients." ASU 2016-12 provides additional guidance established by the FASB-IASB Joint Transition Resource Group for Revenue Recognition regarding the implementation of certain aspects of the new revenue recognition guidance. More specifically, the amendment provides additional guidance regarding assessing the collectibility criterion, the presentation of sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications or completed contracts at transition of the new revenue recognition guidance and technical corrections. The effective date is consistent with the effective date of ASU 2014-09. The Company is currently evaluating the impact the adoption of ASU 2016-12 will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ("ASU 2016-10"). ASU 2016-10 clarify two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The update is effective for annual periods beginning after December 15, 2017 including interim reporting periods therein. The Company is currently evaluating the impact the adoption of ASU 2016-10 will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued No. 2016-02, Leases ("ASU 2016-02"). This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In July 2015, the FASB issued No. 2015-11, Inventory - Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 is additional guidance regarding the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. This guidance is effective for fiscal years and interim periods begin |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding, plus potential shares of common stock during the period. Potential shares of common stock include dilutive shares attributable to the assumed exercise of share options, ESPP shares and vesting of RSUs using the treasury stock method and contingent issuances of common shares related to convertible preferred shares, if dilutive. Under the treasury stock method, potential common shares outstanding are not included in the computation of diluted net income per share if their effect is anti-dilutive. The following table presents the calculation of basic and diluted net loss per share attributable to common shareholders: Year Ended June 30, 2016 2015 2014 (in thousands, except per share data) Numerator: Net loss attributable to Alpha and Omega Semiconductor Limited $ (2,928 ) $ (7,763 ) $ (3,104 ) Denominator: Basic: Weighted average number of common shares used to compute basic net loss per share 22,452 26,429 25,952 Diluted: Weighted average number of common shares used to compute diluted net loss per share 22,452 26,429 25,952 Net loss per share attributable to Alpha and Omega Semiconductor Limited: Basic $ (0.13 ) $ (0.29 ) $ (0.12 ) Diluted $ (0.13 ) $ (0.29 ) $ (0.12 ) The following potential dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been anti-dilutive: Year Ended June 30, 2016 2015 2014 (in thousands) Employee stock options and RSUs 3,206 3,737 3,940 ESPP 414 380 601 Total potential dilutive securities 3,620 4,117 4,541 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jun. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts receivable June 30, 2016 2015 (in thousands) Accounts receivable $ 43,324 $ 58,249 Less: Allowance for price adjustments (16,700 ) (19,438 ) Less: Allowance for doubtful accounts (30 ) (30 ) Accounts receivable, net $ 26,594 $ 38,781 Inventories June 30, 2016 2015 (in thousands) Raw materials $ 23,982 $ 19,423 Work in-process 32,446 31,269 Finished goods 12,420 13,483 $ 68,848 $ 64,175 Property, plant and equipment, net June 30, 2016 2015 (in thousands) Land $ 4,877 $ 4,877 Building 4,323 4,243 Manufacturing machinery and equipment 193,164 172,467 Equipment and tooling 12,289 11,261 Computer equipment and software 23,448 20,602 Office furniture and equipment 1,822 1,762 Leasehold improvements 28,660 27,568 268,583 242,780 Less accumulated depreciation (168,687 ) (141,883 ) 99,896 100,897 Equipment and construction in progress 16,188 18,682 Property, plant and equipment, net $ 116,084 $ 119,579 Total depreciation expense was $27.3 million , $27.4 million and $27.5 million for fiscal year 2016 , 2015 and 2014 , respectively. The gross amount of computer software recorded under capital leases was $8.3 million and $5.8 million and the related accumulated depreciation was $5.6 million and $4.5 million , respectively, at June 30, 2016 and 2015 . The Company capitalized $ 0.2 million , $ 1.0 million and $1.1 million of software development costs for fiscal year 2016 , 2015 and 2014 , respectively. Amortization of capitalized software development costs was $ 0.6 million , $ 0.5 million and $0.4 million for fiscal year 2016 , 2015 and 2014 , respectively. Unamortized capitalized software development costs at June 30, 2016 and 2015 were $ 1.4 million and $ 1.8 million , respectively. Impairment of long-lived assets, intangible assets, and goodwill The Company re-evaluates its long-lived assets, intangible assets and goodwill for impairment during the fourth quarter of every fiscal year. During the fiscal year of 2016 , the Company identified certain manufacturing equipments purchased for projects that were subsequently canceled. Because the equipments had no alternative uses, the Company recorded an asset impairment expense of approximately of $0.4 million related to these equipments. There was no impairment of long-lived assets for the fiscal year of 2015 and 2014. Also there was no indication of intangible assets and goodwill impairment for the fiscal year of 2016 , 2015 and 2014 . Other long-term assets June 30, 2016 2015 (in thousands) Prepayments for property and equipment $ 548 $ 692 Investment in a privately held company 100 100 Office leases deposits 1,427 1,215 Other — 4 Intangible assets 15 17 Goodwill 269 269 $ 2,359 $ 2,297 Intangible assets June 30, 2016 2015 (in thousands) Patents and exclusive technology rights $ 1,248 $ 1,248 Trade name 268 268 Customer relationships 1,150 1,150 2,666 2,666 Less accumulated amortization (2,651 ) (2,649 ) Intangible assets, net $ 15 $ 17 Amortization expense for intangible assets was $2,000 , $0.1 million and $0.4 million for the years ended June 30, 2016 , 2015 and 2014 , respectively. Future minimum amortization expense of intangible assets is as follows (in thousand): Year ending June 30, 2017 $ 2 2018 2 2019 2 2020 2 2021 2 Thereafter 5 $ 15 Goodwill The changes in the carrying value of goodwill is as follows (in thousands): (in thousands) Balance at June 30, 2014 $ 269 Addition: — Balance at June 30, 2015 269 Addition: — Balance at June 30, 2016 $ 269 Accrued liabilities June 30, 2016 2015 (in thousands) Accrued compensation and benefits $ 10,211 $ 8,582 Warranty accrual 1,495 1,957 Stock rotation accrual 1,988 1,894 Accrued professional fees 1,867 1,402 Accrued inventory 918 697 Accrued facilities related expenses 1,544 1,367 Other accrued expenses 4,567 3,326 $ 22,590 $ 19,225 The activity in the warranty accrual, included in accrued liabilities is as follows: Year Ended June 30, 2016 2015 2014 (in thousands) Beginning balance $ 1,957 $ 1,346 $ 1,428 Addition 881 2,395 1,267 Utilization (1,343 ) (1,784 ) (1,349 ) Ending balance $ 1,495 $ 1,957 $ 1,346 The activity in the stock rotation accrual, included in accrued liabilities is as follows: Year Ended June 30, 2016 2015 2014 (in thousands) Beginning balance $ 1,894 $ 1,645 $ 1,572 Addition 6,578 5,781 5,006 Utilization (6,484 ) (5,532 ) (4,933 ) Ending balance $ 1,988 $ 1,894 $ 1,645 Deferred margin Deferred margin consists of the following: June 30, 2016 2015 (in thousands) Deferred revenue $ 1,494 $ 1,104 Deferred costs (497 ) (388 ) Deferred margin $ 997 $ 716 Capital leases Long-term capital leases were included in the other long term liabilities in the consolidated balance sheets. Capital lease liabilities as of June 30, 2016 and 2015 consisted of the following: June 30, 2016 2015 (in thousands) Computer software $ 2,449 $ 923 Exclusive technology rights 65 82 2,514 1,005 Less current portion (819 ) (941 ) Capital leases - long-term portion $ 1,695 $ 64 The computer software and exclusive technology rights under capital leases were included in property, plant and equipment and intangible assets, respectively. Future minimum lease payments at June 30, 2016 are as follows (in thousand): Year ending June 30, 2017 $ 892 2018 892 2019 892 Total minimum lease payments 2,676 Less amount representing interest (162 ) Total capital lease liabilities $ 2,514 |
Concentration of Credit Risk an
Concentration of Credit Risk and Significant Customers | 12 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers. Credit sales, which are mainly on credit terms of 30 to 60 days , are only made to customers who meet the Company's credit standards, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its financial assets to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available. Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts: Year Ended June 30, Percentage of revenue 2016 2015 2014 Customer A 23.8 % 25.4 % 21.6 % Customer B 37.2 % 36.1 % 43.1 % Customer C 12.3 % 11.7 % 11.6 % June 30, Percentage of accounts receivable 2016 2015 Customer A 21.3 % 29.4 % Customer B 16.7 % 27.7 % Customer C 27.2 % 14.7 % |
Debt
Debt | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt On May 11, 2012, the Company entered into a loan agreement with a financial institution that provided a term loan of $20.0 million for general purposes and a $10.0 million non-revolving credit line for the purchase of equipment. Both the term loan and equipment credit line were fully repayable in May 2015. The borrowings could have been made in the form of either Eurodollar loans or Base Rate loans. Eurodollar loans accrued interest based on an adjusted London Interbank Offered Rate ("LIBOR") as defined in the agreement, plus a margin of 1.00% to 1.75% . Base Rate loans accrued interest at the highest of (a) the lender's Prime Rate, (b) the Federal Funds Rate plus 0.5% and (c) the Eurodollar Rate (for a one-month interest period) plus 1% ; plus a margin of -0.5% to 0.25% . The applicable margins for both Eurodollar loans and Base Rate loans varied from time to time in the foregoing ranges based on the cash and cash equivalent balances maintained by the Company and its subsidiaries with the lender. In May 2013, the equipment credit line expired and there was no outstanding balance. In May 2015, the Company repaid the term loan in full. During July 2012, the Company entered into a loan agreement with the State of Oregon for an amount of $0.3 million. The loan was required to be used for training new and re-training existing employees of the Oregon fab. The loan bore a compound annual interest rate of 5.0% and was to be repaid in April 2014 if the required conditions were not met. In September 2014, the State of Oregon forgave the outstanding balance in full as the Company had satisfied the conditions. The $0.3 million loan forgiven was recorded as a reduction of costs of goods sold in our condensed consolidated statements of operations. |
Joint Venture (Notes)
Joint Venture (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Ventures | 6. Joint Venture On March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds affiliated with the municipalities of Chongqing (the “Chongqing Funds”), pursuant to which the Company and Chongqing Funds form a joint venture, (the “JV Company”), for the purpose of constructing a power semiconductor packaging, testing and 12-inch wafer fabrication facility in the Liangjiang New Area of Chongqing, China (the “JV Transaction”). The total initial capitalization of the JV Company is $330.0 million (the “Initial Capitalization”), which includes cash contribution from the Chongqing funds and contributions of cash, equipments and intangible assets from the Company. The Initial Capitalization will be completed in stages commencing on the incorporation of the JV Company. The Company owns 51% , and the Chongqing Funds owns 49% , of the equity interest in the JV Company. The Company expects the JV company to commence its initial production in the first half of fiscal 2018. The Company began consolidating the expenses of the JV Company during the quarter ended June 30, 2016. The Company and the Chongqing Funds did not make any capital contributions to the JV Company as of June 30, 2016. Within one year from June 30, 2016, the Company is expected to contribute certain intangible assets, a portion of the packaging equipments currently being used in the Company's Shanghai facility, and cash of $10.0 million pursuant to the terms of the JV agreement. In July 2016, the Chongqing Funds contributed $33.0 million initial capital to the JV Company. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Shares The Company's bye-laws, as amended, authorized the Company to issue 50,000,000 common shares with par value of $0.002 . Each common share is entitled to one vote. The holders of common shares are also entitled to receive dividends whenever funds are legally available and when and if declared by the board of directors, subject to the prior rights of holders of all classes of shares outstanding. No dividends had been declared as of June 30, 2016 . On October 22, 2010, the Company's board of directors authorized a $25.0 million share repurchase program. Under this repurchase program the Company was authorized to repurchase shares from the open market or in privately negotiated transactions, from time to time, subject to supervision and oversight by the board. The Company accounts for treasury stock under the cost method. Shares repurchased are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. From time to time, treasury shares may be reissued as part of the Company's stock-based compensation programs. Gains on re-issuance of treasury stock are credited to additional paid-in capital; losses are charged to additional paid-in capital to offset the net gains, if any, from previous sales or re-issuance of treasury stock. Any remaining balance of the losses are charged to retained earnings. On May 8, 2014, the Company's Board of Directors approved to reactivate the share repurchase program with a remaining balance of $22.7 million . In April 2015, the Board of Directors approved an increase in the remaining available amount under the Company’s share repurchase program from approximately $17.8 million to $50.0 million . In June 2015, the Company commenced a modified Dutch auction tender offer (the "Tender Offer") to repurchase an aggregate of $30.0 million of its outstanding common shares with a price range between $8.50 and $9.20 per share. In July 2015, the Company completed the Tender Offer in which it purchased 3,296,703 shares of its common shares, at a purchase price of $9.10 per share, for an aggregate purchase price of $30.0 million , excluding fees and expenses relating to the Tender Offer. These shares represent approximately 12.53% of the total number of the Company's common shares issued and outstanding as of June 30, 2015. The Tender Offer was part of the $50.0 million share repurchase program approved by the Board in April 15, 2015. Immediately following the completion of the Tender Offer, approximately $18.2 million remained available under the share repurchase program. During fiscal years 2016 , 2015 and 2014 , the Company repurchased an aggregate of 4,695,499 shares, 666,230 shares and 119,594 shares, respectively, from the open market for a total cost of approximately $41.8 million, $5.8 million and $0.9 million, excluding fees and related expenses, at an average price of $8.90 , $8.70 and $7.66 per share, respectively. As of June 30, 2016 , the Company had repurchased an aggregate of 5,723,093 shares for a total cost of $50.8 million, at an average price of $8.87 per share, excluding fees and related expenses, since inception of the program. No repurchased shares have been retired. Of the 5,723,093 repurchased shares, 71,803 shares with a weighted average repurchase price of $12.33 per share, were reissued at an average price of $4.28 per share for option exercises and vested restricted stock units ("RSU"). As of June 30, 2016 , $6.4 million remain available under the share repurchase program. Convertible Preferred Shares On May 4, 2010, concurrent with the closing of the Company's initial public offering, all of the Company's outstanding preferred shares including 5,050,000 Series A convertible preferred shares, 2,488,094 Series B convertible preferred shares and 3,174,000 Series C convertible preferred shares, were automatically converted into 10,712,094 shares of common shares and the then-existing classes of preferred stock ceased to exist. At June 30, 2016 and 2015 , the Company had no preferred shares outstanding and had 10,000,000 authorized undesignated preferred shares. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | Share-based Compensation 2000 Share Plan The 2000 Share Plan (the “2000 Plan”), as amended, authorized the board of directors to grant incentive share options and non-statutory share options to employees, directors and consultants of the Company and its subsidiaries for up to 5,425,000 common shares. Under the 2000 Plan, incentive share options and non-statutory share options were to be granted at a price that was not less than 100% and 85% of the fair value of the common share at the date of grant for employees and consultants, respectively. Options generally vest over a five -year period, 20% on the first anniversary from the grant date and ratably each month over the remaining 48 -month period, and are exercisable for a maximum period of ten years after the date of grant. Incentive share options granted to shareholders who own more than 10% of the outstanding shares of all classes of shares of the Company at the time of grant must be issued at an exercise price not less than 110% of the fair value of the common shares on the date of grant. In connection with the adoption of the 2009 Share Option/Share Issuance Plan on September 18, 2009, the 2000 Share Plan was terminated and no further awards were granted under the 2000 Share Plan. 2009 Share Option/Share Issuance Plan The 2009 Share Option/Share Issuance Plan (the “2009 Plan”), as approved in September 2009 at the annual general meeting of shareholders, and as amended and restated in connection with the Company's IPO, authorized the board of directors to grant incentive share options, non-statutory share options and restricted shares to employees, directors, and consultants of the Company and its subsidiaries for up to 1,250,000 common shares. The number of common shares available for issuance under the 2009 Plan shall automatically increase in January each calendar year during the term of the 2009 Plan, beginning with calendar year 2011, by the lesser of 3% of the total number of common shares outstanding or 750,000 shares. This increase was 668,915 shares, 750,000 shares and 750,000 shares for the years ended June 30, 2016, 2015 and 2014 , respectively. As of June 30, 2016, 2,527,000 shares were available for grant under the 2009 Plan. The 2009 Plan is divided into three incentive compensation programs: Discretionary Grant Program, Share Issuance Program and Automatic Grant Program. Under the Discretionary Grant Program, eligible individuals may be granted options to purchase common shares and share appreciation rights tied to the value of the Company's common shares. Under the Share Issuance Program, eligible individuals may be issued common shares pursuant to restricted share awards, restricted share units, performance shares or other share-based awards which vest upon the attainment of pre-established performance milestones or the completion of a designated service period. Under the Automatic Grant Program, eligible non-employee board members will automatically receive options to purchase common shares at designated intervals over their period of continued board service. Each non-employee board members was granted an option to purchase 7,500 common shares on April 28, 2010 with exercise price equal to the IPO price. On the date of each annual shareholders meeting beginning in 2010 and ending in 2013, each individual who commence service as a non-employee board member by reason of his or her election to the board at such meeting and each individual who continues to serve as a non-employee board member was automatically granted an option to purchase 7,500 common shares. Beginning with the 2014 Annual Shareholders Meeting, on the date of each annual shareholders meeting, each individual who commences service as a non-employee Board member by reason of his or her election to the Board at such annual meeting and each individual who is to continue to serve as a non-employee Board member, whether or not that individual is standing for re-election to the Board at that particular annual meeting, will automatically be granted an award in the form of restricted share units ("RSU") covering that number of common shares determined by dividing forty-two thousand dollars ( $42,000 ) by the average fair market value per share for the ninety (90)-day period preceding the grant date (the “Annual RSU Grant”). Under the 2009 Plan, incentive share options and RSU are to be granted at a price that is not less than 100% and nonstatutory share options are to be granted not less than 85% of the fair value of the common shares, at the date of grant for employees and consultants. Options and RSUs generally vest over a four -year to five -year period, and are exercisable for a maximum period of ten years after the date of grant. Incentive share options granted to shareholders who own more than 10% of the outstanding shares of all classes of shares of the Company at the time of grant must be issued at an exercise price not less than 110% of the fair value of the common shares on the date of grant. A summary of the stock option activities under the 2000 Plan and 2009 Plan is as follows: Weighted Weighted Weighted Average Average Average Grant Date Remaining Number of Exercise Price Fair Value Contractual Aggregate Shares Per Share Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2013 3,593,854 $ 10.24 5.46 Granted 764,375 $ 7.49 $ 3.85 Exercised (421,456 ) $ 2.60 $ 2,222,155 Canceled or forfeited (697,989 ) $ 11.65 Outstanding at June 30, 2014 3,238,784 $ 10.28 5.79 Granted 10,000 $ 9.07 $ 4.42 Exercised (269,861 ) $ 5.22 $ 1,088,061 Canceled or forfeited (142,706 ) $ 10.08 Outstanding at June 30, 2015 2,836,217 $ 10.77 4.64 Granted — $ — $ — Exercised (666,445 ) $ 8.36 $ 1,746,173 Canceled or forfeited (310,512 ) $ 12.34 Outstanding at June 30, 2016 1,859,260 $ 11.37 4.71 $ 5,959,720 Options vested and expected to vest 1,840,261 $ 11.41 4.68 $ 5,839,323 Exercisable at June 30, 2016 1,595,992 $ 12.00 4.22 $ 4,296,568 The aggregate intrinsic value for options outstanding at June 30, 2016 in the table above is based on the Company’s common stock closing price on June 30, 2016 . Information with respect to stock options outstanding and exercisable as of June 30, 2016 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted-Average Weighted-Average Number Weighted-Average $7.21 - $7.21 6,875 7.58 $ 7.21 6,875 $ 7.21 $7.44 - $7.44 436,147 7.71 $ 7.44 226,146 $ 7.44 $7.47 - $9.90 399,788 5.71 $ 8.84 346,521 $ 8.92 $10.22 - $13.00 646,450 2.55 $ 12.31 646,450 $ 12.31 $14.14 - $18.00 370,000 3.81 $ 17.20 370,000 $ 17.20 $7.21 - $18.00 1,859,260 4.71 $ 11.37 1,595,992 $ 12.00 The Company did not grant any stock options during the year ended June 30, 2016. The fair value of stock options granted during the years ended June 30, 2015 and 2014 were estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions: Year Ended June 30, 2016 2015 2014 Volatility rate —% 40.9% - 43.5% 46.9% - 49.2% Risk-free interest rate —% 1.6% - 1.8% 1.0% - 1.7% Expected option life — 5.5 years 5.5 years Dividend yield —% —% —% Restricted Stock Units ("RSU") The following table summarizes the Company's RSU activities: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Aggregate Intrinsic Value Nonvested at June 30, 2013 549,553 $ 9.50 1.87 $ 4,198,585 Granted 368,554 $ 7.54 Vested (136,581 ) $ 9.46 Forfeited (125,152 ) $ 9.54 Nonvested at June 30, 2014 656,374 $ 8.40 1.77 $ 6,084,587 Granted 493,622 $ 8.92 Vested (213,180 ) $ 8.65 Forfeited (62,870 ) $ 8.35 Nonvested at June 30, 2015 873,946 $ 8.64 1.77 $ 7,638,288 Granted 466,255 $ 11.28 Vested (301,695 ) $ 10.97 Forfeited (105,443 ) $ 8.85 Nonvested at June 30, 2016 933,063 $ 9.18 1.73 $ 12,997,568 Employee Share Purchase Plan The Employee Share Purchase Plan (“Purchase Plan” or “ESPP”) was established in May 2010 upon the completion of the Company's IPO. The Purchase Plan provided for a series of overlapping offering periods with a duration of 24 months, with new offering periods, generally beginning on May 15 and November 15 of each year. The Purchase Plan allows employees to purchase common shares through payroll deductions of up to 15% of their eligible compensation. Such deductions will accumulate over a six-month accumulation period without interest. After such accumulation period, common shares will be purchased at a price equal to 85% of the fair market value per share on either the first day of the offering period or the last date of the accumulation period, whichever is less. The maximum number of shares that may be purchased on any purchase date may not exceed 875 shares for a total of 3,500 shares per a 24 -month offering period. In addition, no participant may purchase more than $25,000 worth of common stock in any one calendar year period. The Company initially reserved 600,000 common shares for issuance under the ESPP. The share reserve will automatically increase in January of each calendar year during the term of the ESPP, beginning with calendar year 2011, by the lesser of 0.75% of the outstanding common shares or 250,000 shares. This increase was 167,229 shares, 192,000 shares and 192,000 shares for the years ended June 30, 2016 , 2015 and 2014 , respectively. The ESPP is compensatory and results in compensation expense. The fair values of common shares to be issued under the ESPP were determined using the Black-Scholes option valuation model with the following assumptions: Year Ended June 30, 2016 2015 2014 Volatility rate 32.2% - 34.8% 31.4% - 50.0% 50.0% Risk-free interest rate 0.3% - 0.9% 0.1% - 0.6% 0.1% - 0.4% Expected term 1.3 years 1.3 years 1.3 years Dividend yield —% —% —% The weighted-average estimated fair value of employee stock purchase rights granted pursuant to the ESPP during the years ended June 30, 2016 , 2015 and 2014 was $2.85 , $2.80 and $2.89 per share, respectively. Share-based Compensation Expenses T he total share-based compensation expense related to stock options, ESPP and RSUs described above, recognized in the consolidated statements of operations for the years presented was as follows: Year Ended June 30, 2016 2015 2014 (in thousands) Cost of goods sold $ 636 $ 669 $ 614 Research and development 1,115 779 786 Selling, general and administrative 2,562 3,042 1,975 $ 4,313 $ 4,490 $ 3,375 Total unrecognized share-based compensation expense as of June 30, 2016 was $5.8 million including estimated forfeitures, which is expected to be recognized over a weighted-average period of 1.6 years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company maintains a 401(k) retirement plan for the benefit of qualified employees in the U.S.. Employees who participate may elect to make salary deferral contributions to the plan up to 100% of the employees' eligible salary subject to annual Internal Revenue Code maximum limitations. The employer's contribution is discretionary. The Company had not made any contributions for eligible employees as of June 30, 2016 . The Company makes mandatory contributions for its employees to the respective local governments in terms of retirement, medical insurance and unemployment insurance, where applicable, according to labor and social security laws and regulations of the countries and areas in which the Company operates. The contribution rates for retirement are 7.7% , 13.0% to 20.0% and 6.0% for employees in the U.S., China and Taiwan, respectively. The Company has no obligations for the payment of such social benefits beyond the required contributions as set out above. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is comprised of: Year Ended June 30, 2016 2015 2014 (in thousands) U.S. federal taxes: Current $ 152 $ 66 $ (65 ) Deferred 650 852 1,144 Non-U.S. taxes: Current 3,382 3,059 2,316 Deferred (169 ) (15 ) (608 ) State taxes, net of federal benefit: Current 6 (65 ) (38 ) Deferred — — 20 Total provision for income taxes $ 4,021 $ 3,897 $ 2,769 The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows (in percentage): Year Ended June 30, 2016 2015 2014 United States statutory rate 34.0 % 34.0 % 34.0 % State taxes, net of federal benefit 0.4 1.2 2 Stock based compensation (0.4 ) 0.4 3.2 Foreign taxes, net 440.3 (145.7 ) (900.2 ) Research and development credit (69.3 ) 10 45.4 Non-deductible expenses 1.7 (0.7 ) (8.7 ) Other (0.1 ) — (2.3 ) 406.6 % (100.8 )% (826.6 )% The domestic and foreign components of income (loss) before taxes are: Year Ended June 30, 2016 2015 2014 (in thousands) U.S. operations $ 4,259 $ 4,614 $ 4,184 Non-U.S. operations (3,270 ) (8,480 ) (4,519 ) Income (loss) before income taxes $ 989 $ (3,866 ) $ (335 ) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: June 30, 2016 2015 (in thousands) Deferred tax assets: Accrued compensation $ 2,267 $ 1,915 Net operating loss carryforwards 67 81 Depreciation 10,345 11,079 Tax credits 6,069 5,171 Accruals and reserves 934 658 Total deferred tax assets 19,682 18,904 Valuation allowance (2,894 ) (2,700 ) Total deferred tax assets, net of valuation allowance 16,788 16,204 Deferred tax liabilities: Depreciation and amortization (7,388 ) (5,651 ) Accruals and reserves (241 ) (523 ) Total deferred tax liabilities (7,629 ) (6,174 ) Net deferred tax assets $ 9,159 $ 10,030 The breakdown between current and non-current deferred tax assets and liabilities is as follows: June 30, 2016 2015 (in thousands) Long-term deferred tax assets $ 12,132 $ 12,340 Long-term deferred tax liabilities (2,973 ) (2,310 ) Net deferred tax assets $ 9,159 $ 10,030 At June 30, 2016 and 2015 , the Company provided a valuation allowance for its state research and development credit carryforward deferred tax assets, as it generated more state tax credits each year than it can utilize. The Company intends to maintain a partial valuation allowance equal to the state research and development credit carryfowards until sufficient positive evidence exists to support reversal of the valuation allowance. At June 30, 2016 , the Company had federal tax credit carryforwards of approximately $3.0 million . The federal tax credits begin to expire in 2029 , if not utilized. At June 30, 2016 , the Company had no state net operating loss carryforwards and had tax credit carryforwards of approximately $4.6 million . Approximately $0.2 million of the state tax credits begin to expire in 2018, if not utilized. The remaining $4.4 million of the state tax credits carryforward indefinitely. The Company has not provided for withholding taxes on the undistributed earnings of its foreign subsidiaries because it intends to reinvest such earnings indefinitely. As of June 30, 2016 , the cumulative amount of undistributed earnings of its foreign entities considered permanently reinvested is $82.2 million . The determination of the unrecognized deferred tax liability on these earnings is not practicable. Should the Company decide to remit this income to its Bermuda parent company in a future period, its provision for income taxes may increase materially in that period. At June 30, 2016 , the Company had approximately $6.7 million in total unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2014 to June 30, 2016 is as follows: Year Ended June 30, 2016 2015 2014 (in thousands) Balance at beginning of year $ 6,412 $ 6,760 $ 7,668 Additions based on tax positions related to the current year 388 297 329 Additions (reductions) based on tax positions related to prior years — 4 (18 ) Reductions due to lapse of applicable statute of limitations (57 ) (649 ) (1,219 ) Balance at end of year $ 6,743 $ 6,412 $ 6,760 At June 30, 2016 , the total unrecognized tax benefits of $6.7 million included $5.4 million of unrecognized tax benefits that have been netted against the related deferred tax assets. The remaining $1.3 million of unrecognized tax benefits was recorded within long-term income tax payable on the Company's consolidated balance sheet as of June 30, 2016 . The total unrecognized tax benefits of $6.7 million at June 30, 2016 included $4.4 million that, if recognized, would reduce the effective income tax rate in future periods. It is reasonably possible that the Company will recognize approximately $0.6 million reduction to its uncertain tax positions during the next twelve months. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. The amount of interest and penalties accrued at June 30, 2016 was $0.3 million , of which $0.03 million was recognized in the year ended June 30, 2016 . The amount of interest and penalties accrued at June 30, 2015 was $0.2 million , of which $(0.1) million was recognized in the year ended June 30, 2015 . The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2016 remain open to examination by U.S. federal and state tax authorities. The tax years 2009 to 2016 remain open to examination by foreign tax authorities. The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. |
Segment and Geographic informat
Segment and Geographic information | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company is organized as, and operates in, one operating segment: the design, development and supply of power semiconductor products for computing, consumer electronics, communication and industrial applications. The chief operating decision-maker is the Chief Executive Officer. The financial information presented to the Company's Chief Executive Officer is on a consolidated basis, accompanied by information about revenue by customer and geographic region, for purposes of evaluating financial performance and allocating resources. The Company has one business segment, and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. Accordingly, the Company reports as a single operating segment. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. Because the Company's distributors sell their products to end customers which may have global presence, revenue by geographical location is not necessarily representative of the geographical distribution of sales to end user markets. The revenue by geographical location in the following tables is based on the country or region in which the products were shipped to: Year Ended June 30, 2016 2015 2014 (in thousands) Hong Kong $ 290,555 $ 277,825 $ 271,728 China 37,444 42,103 38,740 South Korea 1,960 2,253 3,033 United States 3,110 2,942 1,976 Other countries 2,592 2,812 2,644 $ 335,661 $ 327,935 $ 318,121 The following is a summary of revenue by product type: Year Ended June 30, 2016 2015 2014 (in thousands) Power discrete $ 252,063 $ 248,716 $ 246,033 Power IC 69,344 63,529 53,993 Packaging and testing services 14,254 15,690 18,095 $ 335,661 $ 327,935 $ 318,121 Long-lived assets, consisting of property, plant and equipment by geographical area are as follows: June 30, 2016 2015 (in thousands) China $ 64,272 $ 71,618 United States 51,214 47,439 Other countries 598 522 $ 116,084 $ 119,579 |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Jun. 30, 2016 | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Restricted Net Assets | Restricted Net Assets Laws and regulations in China permit payments of dividends by the Company's subsidiaries in China only out of their retained earnings, if any, as determined in accordance with China accounting standards and regulations. Each China subsidiary is also required to set aside at least 10% of its after-tax profit, if any, based on China accounting standards each year to its statutory reserves until the cumulative amount of such reserves reaches 50% of its registered capital. As a result of these China laws and regulations, the Company's China subsidiaries are restricted in their abilities to transfer a portion of their net assets to the Company. As of June 30, 2016 and 2015 , such restricted portion amounted to approximately $84.2 million and $86.8 million, or 34.8% and 31.4% , of our total consolidated net assets, respectively. As the Company's China subsidiaries are not revenue generating operating units, the Company does not expect to repatriate funds in the form of dividends, loans or advances from its China subsidiaries for working capital and other funding purposes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating lease obligations The Company leases its office facilities and certain office equipment under non-cancelable operating leases that expire through 2023. Rent expense related to the Company's operating leases was $3.5 million , $3.5 million and $3.4 million for the fiscal years ended June 30, 2016 , 2015 and 2014 , respectively. Certain leases contain escalation clauses calling for increased rents. Future minimum lease payments of these leases at June 30, 2016 are as follows: Year ending June 30, Operating (in thousands) 2017 $ 3,200 2018 2,249 2019 1,849 2020 1,484 2021 554 Thereafter 574 $ 9,910 Purchase commitments As of June 30, 2016 and 2015 , the Company had approximately $39.6 million and $29.2 million , respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts and packaging and testing services. As of June 30, 2016 and 2015 , the Company had approximately $6.6 million and $3.7 million , respectively, of capital commitments for the purchase of property and equipment. Contingencies and indemnities The Company is currently not a party to any material legal proceedings. The Company has in the past, and may from time to time in the future, becomes involved in legal proceedings arising from the normal course of business activities. The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, the Company could incur significant costs in the defense thereof or could suffer adverse effects on its operations. The Company is a party to a variety of agreements that it contracted with various parties. Pursuant to these agreements, the Company may be obligated to indemnify another party to such an agreement with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold, certain intellectual property rights, specified environmental matters and certain income taxes. In these circumstances, payment by the Company is customarily conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claim. Further, the Company's obligations under these agreements maybe limited in time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. The Company has not historically paid or recorded any material indemnifications and no accrual was made at June 30, 2016 and 2015 . The Company has agreed to indemnify its directors and certain employees as permitted by law and pursuant to its bye-laws, and has entered into indemnification agreements with its directors and executive officers. The Company has not recorded a liability associated with these indemnification arrangements, as it historically has not incurred any material costs associated with such indemnification obligations. Costs associated with such indemnification obligations may be mitigated by insurance coverage that the Company maintains, however, such insurance may not cover any, or may cover only a portion of, the amounts the Company may be required to pay. In addition, the Company may not be able to maintain such insurance coverage in the future. Joint Venture In March 2016, we executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China to form a joint venture for a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Joint Venture is expected to commence its initial production in the first half of fiscal 2018. Under the Joint Venture agreement, the Company is required to contribute $10.0 million in cash, equipments and intangible assets within one year from June 30, 2016. Environmental matters The Company is subject to various federal, state, local, and foreign laws and regulations governing environmental matters, including the use, handling, discharge, and disposal of hazardous materials. The Company believes that it has been in material compliance with applicable environmental regulations and standards. Complying with current laws and regulations has not had a material adverse effect on the Company’s financial condition and results of operations. However, it is possible that additional environmental issues may arise in the future, which the Company cannot currently predict. |
Schedule I - Condensed Unconsol
Schedule I - Condensed Unconsolidated Balance Sheets | 12 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2016 2015 2014 Net loss including noncontrolling interest $ (3,032 ) $ (7,763 ) $ (3,104 ) Other comprehensive income, net of tax Foreign currency translation adjustment (135 ) (128 ) 76 Comprehensive loss (3,167 ) (7,891 ) (3,028 ) Noncontrolling interest (103 ) — — Comprehensive loss attributable to Alpha and Omega Semiconductor Limited $ (3,064 ) $ (7,891 ) $ (3,028 ) June 30, 2016 2015 ASSETS Current assets: Cash and cash equivalents $ 8,051 $ 17,397 Accounts receivable - Intercompany 13,385 39,004 Other current assets 268 291 Total current assets 21,704 56,692 Property, plant and equipments, net 1,308 1,786 Other long-term assets 100 100 Investment in subsidiaries 219,594 218,552 Total assets $ 242,706 $ 277,130 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 667 $ 491 Total liabilities 667 491 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2016 and 2015 — — Common shares, par value $0.002 per share: Authorized: 50,000 shares; Issued and outstanding: 28,405 shares and 22,754 shares at June 30, 2016 and 27,314 shares and 26,316 shares at June 30, 2015 57 55 Treasury shares at cost; 5,651 shares at June 30, 2016 and 998 shares at June 30, 2015 (50,199 ) (8,593 ) Additional paid-in capital 191,444 181,040 Accumulated other comprehensive income 769 905 Retained earnings 100,071 103,232 Total Alpha and Omega Semiconductor Limited shareholder's equity 242,142 276,639 Noncontrolling interest (103 ) — Total equity 242,039 276,639 Total liabilities and equity $ 242,706 $ 277,130 Year Ended June 30, 2016 2015 2014 Revenue $ 3,345 $ 3,332 $ 3,074 Cost of revenue — — — Gross profit 3,345 3,332 3,074 Operating expenses: Selling, general and administrative 3,438 3,477 3,171 Total operating expenses 3,438 3,477 3,171 Operating loss (93 ) (145 ) (97 ) Interest income 7 7 6 Interest expense — (2 ) (11 ) Loss on equity investment in subsidiaries (2,946 ) (7,623 ) (3,002 ) Net loss including noncontrolling interest (3,032 ) (7,763 ) (3,104 ) Net loss attributable to noncontrolling interest (104 ) — — Net loss attributable to Alpha and Omega Semiconductor Limited $ (2,928 ) $ (7,763 ) $ (3,104 ) Year Ended June 30, 2016 2015 2014 Cash flows from operating activities Net loss $ (3,032 ) $ (7,763 ) $ (3,104 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 545 587 366 Share-based compensation expense 190 242 187 Equity in net loss of subsidiaries 2,946 7,623 3,002 Changes in working capital, net of impact of acquisition: Accounts receivable - intercompany 25,620 15,664 (2,333 ) Other current assets 23 26 (124 ) Accounts payable and accrued liabilities 174 (101 ) (191 ) Net cash provided by (used in) operating activities 26,466 16,278 (2,197 ) Cash flows from investing activities Purchase of property and equipment (67 ) (625 ) (919 ) Net cash used in investing activities (67 ) (625 ) (919 ) Cash flows from financing activities Withholding tax on restricted stock units (1,036 ) (539 ) (316 ) Proceeds from exercise of stock options and ESPP 7,371 3,007 2,675 Payment for repurchase of common shares (42,080 ) (5,816 ) (918 ) Principal payments on capital leases — (95 ) (281 ) Net cash provided by (used in) financing activities (35,745 ) (3,443 ) 1,160 Net increase (decrease) in cash and cash equivalents (9,346 ) 12,210 (1,956 ) Cash and cash equivalents at beginning of year 17,397 5,187 7,143 Cash and cash equivalents at end of year $ 8,051 $ 17,397 $ 5,187 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China to form a joint venture for a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Joint Venture is expected to commence its initial production in the first half of fiscal 2018. Under the Joint Venture agreement, the Company is required to contribute $10.0 million in cash, equipments and intangible assets within one year from June 30, 2016. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule I - Condensed Uncons22
Schedule I - Condensed Unconsolidated Statements of Income | 12 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2016 2015 2014 Net loss including noncontrolling interest $ (3,032 ) $ (7,763 ) $ (3,104 ) Other comprehensive income, net of tax Foreign currency translation adjustment (135 ) (128 ) 76 Comprehensive loss (3,167 ) (7,891 ) (3,028 ) Noncontrolling interest (103 ) — — Comprehensive loss attributable to Alpha and Omega Semiconductor Limited $ (3,064 ) $ (7,891 ) $ (3,028 ) June 30, 2016 2015 ASSETS Current assets: Cash and cash equivalents $ 8,051 $ 17,397 Accounts receivable - Intercompany 13,385 39,004 Other current assets 268 291 Total current assets 21,704 56,692 Property, plant and equipments, net 1,308 1,786 Other long-term assets 100 100 Investment in subsidiaries 219,594 218,552 Total assets $ 242,706 $ 277,130 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 667 $ 491 Total liabilities 667 491 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2016 and 2015 — — Common shares, par value $0.002 per share: Authorized: 50,000 shares; Issued and outstanding: 28,405 shares and 22,754 shares at June 30, 2016 and 27,314 shares and 26,316 shares at June 30, 2015 57 55 Treasury shares at cost; 5,651 shares at June 30, 2016 and 998 shares at June 30, 2015 (50,199 ) (8,593 ) Additional paid-in capital 191,444 181,040 Accumulated other comprehensive income 769 905 Retained earnings 100,071 103,232 Total Alpha and Omega Semiconductor Limited shareholder's equity 242,142 276,639 Noncontrolling interest (103 ) — Total equity 242,039 276,639 Total liabilities and equity $ 242,706 $ 277,130 Year Ended June 30, 2016 2015 2014 Revenue $ 3,345 $ 3,332 $ 3,074 Cost of revenue — — — Gross profit 3,345 3,332 3,074 Operating expenses: Selling, general and administrative 3,438 3,477 3,171 Total operating expenses 3,438 3,477 3,171 Operating loss (93 ) (145 ) (97 ) Interest income 7 7 6 Interest expense — (2 ) (11 ) Loss on equity investment in subsidiaries (2,946 ) (7,623 ) (3,002 ) Net loss including noncontrolling interest (3,032 ) (7,763 ) (3,104 ) Net loss attributable to noncontrolling interest (104 ) — — Net loss attributable to Alpha and Omega Semiconductor Limited $ (2,928 ) $ (7,763 ) $ (3,104 ) Year Ended June 30, 2016 2015 2014 Cash flows from operating activities Net loss $ (3,032 ) $ (7,763 ) $ (3,104 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 545 587 366 Share-based compensation expense 190 242 187 Equity in net loss of subsidiaries 2,946 7,623 3,002 Changes in working capital, net of impact of acquisition: Accounts receivable - intercompany 25,620 15,664 (2,333 ) Other current assets 23 26 (124 ) Accounts payable and accrued liabilities 174 (101 ) (191 ) Net cash provided by (used in) operating activities 26,466 16,278 (2,197 ) Cash flows from investing activities Purchase of property and equipment (67 ) (625 ) (919 ) Net cash used in investing activities (67 ) (625 ) (919 ) Cash flows from financing activities Withholding tax on restricted stock units (1,036 ) (539 ) (316 ) Proceeds from exercise of stock options and ESPP 7,371 3,007 2,675 Payment for repurchase of common shares (42,080 ) (5,816 ) (918 ) Principal payments on capital leases — (95 ) (281 ) Net cash provided by (used in) financing activities (35,745 ) (3,443 ) 1,160 Net increase (decrease) in cash and cash equivalents (9,346 ) 12,210 (1,956 ) Cash and cash equivalents at beginning of year 17,397 5,187 7,143 Cash and cash equivalents at end of year $ 8,051 $ 17,397 $ 5,187 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China to form a joint venture for a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Joint Venture is expected to commence its initial production in the first half of fiscal 2018. Under the Joint Venture agreement, the Company is required to contribute $10.0 million in cash, equipments and intangible assets within one year from June 30, 2016. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule I - Condensed Uncons23
Schedule I - Condensed Unconsolidated Statements of Comprehensive Income (Loss) Schedule I - Condensed Unconsolidated Statements of Comprehensive Income (Loss) (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2016 2015 2014 Net loss including noncontrolling interest $ (3,032 ) $ (7,763 ) $ (3,104 ) Other comprehensive income, net of tax Foreign currency translation adjustment (135 ) (128 ) 76 Comprehensive loss (3,167 ) (7,891 ) (3,028 ) Noncontrolling interest (103 ) — — Comprehensive loss attributable to Alpha and Omega Semiconductor Limited $ (3,064 ) $ (7,891 ) $ (3,028 ) June 30, 2016 2015 ASSETS Current assets: Cash and cash equivalents $ 8,051 $ 17,397 Accounts receivable - Intercompany 13,385 39,004 Other current assets 268 291 Total current assets 21,704 56,692 Property, plant and equipments, net 1,308 1,786 Other long-term assets 100 100 Investment in subsidiaries 219,594 218,552 Total assets $ 242,706 $ 277,130 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 667 $ 491 Total liabilities 667 491 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2016 and 2015 — — Common shares, par value $0.002 per share: Authorized: 50,000 shares; Issued and outstanding: 28,405 shares and 22,754 shares at June 30, 2016 and 27,314 shares and 26,316 shares at June 30, 2015 57 55 Treasury shares at cost; 5,651 shares at June 30, 2016 and 998 shares at June 30, 2015 (50,199 ) (8,593 ) Additional paid-in capital 191,444 181,040 Accumulated other comprehensive income 769 905 Retained earnings 100,071 103,232 Total Alpha and Omega Semiconductor Limited shareholder's equity 242,142 276,639 Noncontrolling interest (103 ) — Total equity 242,039 276,639 Total liabilities and equity $ 242,706 $ 277,130 Year Ended June 30, 2016 2015 2014 Revenue $ 3,345 $ 3,332 $ 3,074 Cost of revenue — — — Gross profit 3,345 3,332 3,074 Operating expenses: Selling, general and administrative 3,438 3,477 3,171 Total operating expenses 3,438 3,477 3,171 Operating loss (93 ) (145 ) (97 ) Interest income 7 7 6 Interest expense — (2 ) (11 ) Loss on equity investment in subsidiaries (2,946 ) (7,623 ) (3,002 ) Net loss including noncontrolling interest (3,032 ) (7,763 ) (3,104 ) Net loss attributable to noncontrolling interest (104 ) — — Net loss attributable to Alpha and Omega Semiconductor Limited $ (2,928 ) $ (7,763 ) $ (3,104 ) Year Ended June 30, 2016 2015 2014 Cash flows from operating activities Net loss $ (3,032 ) $ (7,763 ) $ (3,104 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 545 587 366 Share-based compensation expense 190 242 187 Equity in net loss of subsidiaries 2,946 7,623 3,002 Changes in working capital, net of impact of acquisition: Accounts receivable - intercompany 25,620 15,664 (2,333 ) Other current assets 23 26 (124 ) Accounts payable and accrued liabilities 174 (101 ) (191 ) Net cash provided by (used in) operating activities 26,466 16,278 (2,197 ) Cash flows from investing activities Purchase of property and equipment (67 ) (625 ) (919 ) Net cash used in investing activities (67 ) (625 ) (919 ) Cash flows from financing activities Withholding tax on restricted stock units (1,036 ) (539 ) (316 ) Proceeds from exercise of stock options and ESPP 7,371 3,007 2,675 Payment for repurchase of common shares (42,080 ) (5,816 ) (918 ) Principal payments on capital leases — (95 ) (281 ) Net cash provided by (used in) financing activities (35,745 ) (3,443 ) 1,160 Net increase (decrease) in cash and cash equivalents (9,346 ) 12,210 (1,956 ) Cash and cash equivalents at beginning of year 17,397 5,187 7,143 Cash and cash equivalents at end of year $ 8,051 $ 17,397 $ 5,187 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China to form a joint venture for a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Joint Venture is expected to commence its initial production in the first half of fiscal 2018. Under the Joint Venture agreement, the Company is required to contribute $10.0 million in cash, equipments and intangible assets within one year from June 30, 2016. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule I - Condensed Uncons24
Schedule I - Condensed Unconsolidated Cash Flows | 12 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2016 2015 2014 Net loss including noncontrolling interest $ (3,032 ) $ (7,763 ) $ (3,104 ) Other comprehensive income, net of tax Foreign currency translation adjustment (135 ) (128 ) 76 Comprehensive loss (3,167 ) (7,891 ) (3,028 ) Noncontrolling interest (103 ) — — Comprehensive loss attributable to Alpha and Omega Semiconductor Limited $ (3,064 ) $ (7,891 ) $ (3,028 ) June 30, 2016 2015 ASSETS Current assets: Cash and cash equivalents $ 8,051 $ 17,397 Accounts receivable - Intercompany 13,385 39,004 Other current assets 268 291 Total current assets 21,704 56,692 Property, plant and equipments, net 1,308 1,786 Other long-term assets 100 100 Investment in subsidiaries 219,594 218,552 Total assets $ 242,706 $ 277,130 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 667 $ 491 Total liabilities 667 491 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2016 and 2015 — — Common shares, par value $0.002 per share: Authorized: 50,000 shares; Issued and outstanding: 28,405 shares and 22,754 shares at June 30, 2016 and 27,314 shares and 26,316 shares at June 30, 2015 57 55 Treasury shares at cost; 5,651 shares at June 30, 2016 and 998 shares at June 30, 2015 (50,199 ) (8,593 ) Additional paid-in capital 191,444 181,040 Accumulated other comprehensive income 769 905 Retained earnings 100,071 103,232 Total Alpha and Omega Semiconductor Limited shareholder's equity 242,142 276,639 Noncontrolling interest (103 ) — Total equity 242,039 276,639 Total liabilities and equity $ 242,706 $ 277,130 Year Ended June 30, 2016 2015 2014 Revenue $ 3,345 $ 3,332 $ 3,074 Cost of revenue — — — Gross profit 3,345 3,332 3,074 Operating expenses: Selling, general and administrative 3,438 3,477 3,171 Total operating expenses 3,438 3,477 3,171 Operating loss (93 ) (145 ) (97 ) Interest income 7 7 6 Interest expense — (2 ) (11 ) Loss on equity investment in subsidiaries (2,946 ) (7,623 ) (3,002 ) Net loss including noncontrolling interest (3,032 ) (7,763 ) (3,104 ) Net loss attributable to noncontrolling interest (104 ) — — Net loss attributable to Alpha and Omega Semiconductor Limited $ (2,928 ) $ (7,763 ) $ (3,104 ) Year Ended June 30, 2016 2015 2014 Cash flows from operating activities Net loss $ (3,032 ) $ (7,763 ) $ (3,104 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 545 587 366 Share-based compensation expense 190 242 187 Equity in net loss of subsidiaries 2,946 7,623 3,002 Changes in working capital, net of impact of acquisition: Accounts receivable - intercompany 25,620 15,664 (2,333 ) Other current assets 23 26 (124 ) Accounts payable and accrued liabilities 174 (101 ) (191 ) Net cash provided by (used in) operating activities 26,466 16,278 (2,197 ) Cash flows from investing activities Purchase of property and equipment (67 ) (625 ) (919 ) Net cash used in investing activities (67 ) (625 ) (919 ) Cash flows from financing activities Withholding tax on restricted stock units (1,036 ) (539 ) (316 ) Proceeds from exercise of stock options and ESPP 7,371 3,007 2,675 Payment for repurchase of common shares (42,080 ) (5,816 ) (918 ) Principal payments on capital leases — (95 ) (281 ) Net cash provided by (used in) financing activities (35,745 ) (3,443 ) 1,160 Net increase (decrease) in cash and cash equivalents (9,346 ) 12,210 (1,956 ) Cash and cash equivalents at beginning of year 17,397 5,187 7,143 Cash and cash equivalents at end of year $ 8,051 $ 17,397 $ 5,187 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China to form a joint venture for a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Joint Venture is expected to commence its initial production in the first half of fiscal 2018. Under the Joint Venture agreement, the Company is required to contribute $10.0 million in cash, equipments and intangible assets within one year from June 30, 2016. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule I - Notes to the Conde
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | 12 Months Ended |
Jun. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2016 2015 2014 Net loss including noncontrolling interest $ (3,032 ) $ (7,763 ) $ (3,104 ) Other comprehensive income, net of tax Foreign currency translation adjustment (135 ) (128 ) 76 Comprehensive loss (3,167 ) (7,891 ) (3,028 ) Noncontrolling interest (103 ) — — Comprehensive loss attributable to Alpha and Omega Semiconductor Limited $ (3,064 ) $ (7,891 ) $ (3,028 ) June 30, 2016 2015 ASSETS Current assets: Cash and cash equivalents $ 8,051 $ 17,397 Accounts receivable - Intercompany 13,385 39,004 Other current assets 268 291 Total current assets 21,704 56,692 Property, plant and equipments, net 1,308 1,786 Other long-term assets 100 100 Investment in subsidiaries 219,594 218,552 Total assets $ 242,706 $ 277,130 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 667 $ 491 Total liabilities 667 491 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2016 and 2015 — — Common shares, par value $0.002 per share: Authorized: 50,000 shares; Issued and outstanding: 28,405 shares and 22,754 shares at June 30, 2016 and 27,314 shares and 26,316 shares at June 30, 2015 57 55 Treasury shares at cost; 5,651 shares at June 30, 2016 and 998 shares at June 30, 2015 (50,199 ) (8,593 ) Additional paid-in capital 191,444 181,040 Accumulated other comprehensive income 769 905 Retained earnings 100,071 103,232 Total Alpha and Omega Semiconductor Limited shareholder's equity 242,142 276,639 Noncontrolling interest (103 ) — Total equity 242,039 276,639 Total liabilities and equity $ 242,706 $ 277,130 Year Ended June 30, 2016 2015 2014 Revenue $ 3,345 $ 3,332 $ 3,074 Cost of revenue — — — Gross profit 3,345 3,332 3,074 Operating expenses: Selling, general and administrative 3,438 3,477 3,171 Total operating expenses 3,438 3,477 3,171 Operating loss (93 ) (145 ) (97 ) Interest income 7 7 6 Interest expense — (2 ) (11 ) Loss on equity investment in subsidiaries (2,946 ) (7,623 ) (3,002 ) Net loss including noncontrolling interest (3,032 ) (7,763 ) (3,104 ) Net loss attributable to noncontrolling interest (104 ) — — Net loss attributable to Alpha and Omega Semiconductor Limited $ (2,928 ) $ (7,763 ) $ (3,104 ) Year Ended June 30, 2016 2015 2014 Cash flows from operating activities Net loss $ (3,032 ) $ (7,763 ) $ (3,104 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 545 587 366 Share-based compensation expense 190 242 187 Equity in net loss of subsidiaries 2,946 7,623 3,002 Changes in working capital, net of impact of acquisition: Accounts receivable - intercompany 25,620 15,664 (2,333 ) Other current assets 23 26 (124 ) Accounts payable and accrued liabilities 174 (101 ) (191 ) Net cash provided by (used in) operating activities 26,466 16,278 (2,197 ) Cash flows from investing activities Purchase of property and equipment (67 ) (625 ) (919 ) Net cash used in investing activities (67 ) (625 ) (919 ) Cash flows from financing activities Withholding tax on restricted stock units (1,036 ) (539 ) (316 ) Proceeds from exercise of stock options and ESPP 7,371 3,007 2,675 Payment for repurchase of common shares (42,080 ) (5,816 ) (918 ) Principal payments on capital leases — (95 ) (281 ) Net cash provided by (used in) financing activities (35,745 ) (3,443 ) 1,160 Net increase (decrease) in cash and cash equivalents (9,346 ) 12,210 (1,956 ) Cash and cash equivalents at beginning of year 17,397 5,187 7,143 Cash and cash equivalents at end of year $ 8,051 $ 17,397 $ 5,187 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China to form a joint venture for a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Joint Venture is expected to commence its initial production in the first half of fiscal 2018. Under the Joint Venture agreement, the Company is required to contribute $10.0 million in cash, equipments and intangible assets within one year from June 30, 2016. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Allowance Allowance Allowance for Doubtful for Price for Deferred Accounts Adjustments Tax Assets June 30, 2013 $ 752 $ 13,152 $ 2,127 Additions — 64,987 268 Reductions (722 ) (63,576 ) — June 30, 2014 30 14,563 2,395 Additions — 87,189 305 Reductions — (82,314 ) — June 30, 2015 30 19,438 2,700 Additions — 90,967 194 Reductions — (93,705 ) — June 30, 2016 $ 30 $ 16,700 $ 2,894 |
The Company and Significant A27
The Company and Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest after elimination of inter-company balances and transactions. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Joint Venture is accounted under the provisions of the consolidation guidance since the Company has controlling financial interest. |
Reclassification | Reclassification The Company has reclassified certain amounts previously reported in its financial statements to conform to the current presentation. These reclassifications did not have a material impact on our consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation Most of the Company's principal subsidiaries use U.S. dollars as their functional currency because their transactions are primarily conducted and settled in U.S. dollars. All of their revenues and a significant portion of their operating expenses are denominated in U.S. dollars. The functional currencies for the Company's in-house packaging and testing facilities in China are U.S. dollars, and a significant majority of their capital expenditures are denominated in U.S. dollars. Foreign currency transactions are translated into the functional currencies using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses, resulting from the settlement of such transactions and from the remeasurement of monetary assets and liabilities denominated in foreign currencies using exchange rates at balance sheet date and non-monetary assets and liabilities using historical exchange rates, are recognized in the consolidated statements of operations. For the Company's subsidiaries which use the local currency as their functional currency, their results and financial position are translated into U.S. dollars using exchange rates at balance sheet dates for assets and liabilities and using average exchange rates for income and expenses items. The resulting translation differences are presented as a separate component of accumulated other comprehensive income (loss) and noncontrolling interest in the consolidated statements of equity. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on hand and short-term bank deposits with original maturities of three months or less. Cash equivalents are highly liquid investments with stated maturities of three months or less as of the dates of purchase. The carrying amounts reported for cash and cash equivalents are considered to approximate fair values based upon their short maturities. Cash and cash equivalents are maintained with reputable major financial institutions. If, due to current economic conditions or other factors, one or more of the financial institutions with which the Company maintains deposits fails, the Company's cash and cash equivalents may be at risk. Deposits with these banks may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, therefore, bear minimal risk. |
Accounts Receivable | Accounts Receivable The allowance for doubtful accounts is based on assessment of the collectibility of accounts receivable from customers. The Company reviews the allowance by considering factors such as historical collection experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer's ability to pay. The Company writes off a receivable and charges against its recorded allowance when it has exhausted its collection efforts without success. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of cash equivalents are based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure and terms of the debts. |
Inventories | Inventories The Company carries inventories at the lower of cost (determined on a first-in, first-out basis) or market value. Cost includes semiconductor wafer and raw materials, labor, depreciation expenses and other manufacturing expenses and overhead, and packaging and testing fees paid to third parties if subcontractors are used. Inventory reserves are made based on the Company's periodic review of inventory quantities on hand as compared with its sales forecasts, historical usage, aging of inventories, production yield levels and current product selling prices. If actual market conditions are less favorable than those forecasted by management, additional future inventory write-downs may be required that could adversely affect the Company's operating results. Inventory reserves once established are not reversed until the related inventory has been sold or scrapped. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditures that are directly attributable to the acquisition of the items and the costs incurred to make the assets ready for their intended use. Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 years Manufacturing machinery and equipment 3 to 10 years Equipment and tooling 5 years Computer equipment and software 3 to 5 years Office furniture and equipment 5 years Leasehold improvements 2 to 15 years based on shorter of expected economic useful life or the lease term Equipment and construction in progress represent equipment received but necessary installation has not been fully performed or leasehold improvements have been started but not yet completed. Equipment and construction in progress are stated at cost and transferred to respective asset class when fully completed and ready for their intended use. Internal-use software development costs are capitalized to the extent that the costs are directly associated with the development of identifiable and unique software products controlled by the Company that will probably generate economic benefits beyond one year. Costs incurred during the application development stage are required to be capitalized. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Costs included employee costs incurred and fees paid to outside consultants for the software development and implementation. Internal developed software is amortized over its estimated useful life of five years starting from the date when it is ready for its intended use. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized as selling, general and administrative expenses in the consolidated statements of operations. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets or asset groups are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. Factors that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. Where such factors indicate potential impairment, the recoverability of an asset or asset group is assessed by determining if the carrying value of the asset or asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life. The impairment loss is measured based on the difference between the carrying amount and estimated fair value. |
Goodwill and Intangible assets | Goodwill Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually, or whenever changes in circumstances indicate that the carrying amount of goodwill or intangible assets may not be recoverable. These tests are performed at the reporting unit level using a two-step, fair-value based approach. In testing for a potential impairment of goodwill, the Company first compares the carrying value of assets and liabilities to the estimated fair value. If estimated fair value is less than carrying value, then potential impairment exists. The amount of any impairment is then calculated by determining the implied fair value of goodwill using a hypothetical purchase price allocation, similar to that which would be applied if it were an acquisition and the purchase price was equivalent to fair value as calculated in the first step. Impairment is equivalent to any excess of goodwill carrying value over its implied fair value. The process of evaluating the potential impairment of goodwill requires significant judgment at many points during the analysis, including calculating fair value of each reporting unit based on estimated future cash flows and discount rates to be applied. The Company re-evaluates its intangible assets and goodwill for impairment during the fourth quarter of fiscal year. Goodwill is recorded in other long-term assets in the Company's consolidated balance sheets. Intangible Assets Intangible assets are stated at cost less accumulated amortization. Intangible assets include patents and exclusive technology rights, trade names and customer relationships. Intangible assets with finite lives are amortized on a straight-line basis over the estimated periods of benefit, as follows: Patents and exclusive technology rights 3 to 7 years Trade name 3 years Customer relationships 4 years The Company evaluates its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future undiscounted net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and fair value less costs to sell. Intangible assets are recorded in other long-term assets in the Company's consolidated balance sheets. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when there is persuasive evidence that an arrangement exists, delivery has occurred, the price to the buyer is fixed or determinable and when collectability is reasonably assured. The Company recognizes revenue when product is shipped to the customer, net of estimated stock rotation returns and price adjustments that it expects to provide to certain distributors. The Company sells its products primarily to distributors, who in turn sell the products globally to various end customers. The Company allows stock rotation returns from certain distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by distributors during a specified period. The Company records an allowance for stock rotation returns based on historical returns and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company's products. The Company estimates the expected price adjustments at the time revenue is recognized based on distributor inventory levels, pre-approved future distributor selling prices, distributor margins and demand for its products. If actual stock rotation returns or price adjustments differ from their estimates, adjustments are recorded in the period when the actual information is known. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the consolidated balance sheets. Revenue from certain distributors is deferred until the distributor resells the products to end customers due to price protection adjustments and right of returns that cannot be reliably measured. The deferred revenue, net of the associated deferred cost of the inventory, is recorded as deferred margin on the consolidated balance sheets. Packaging and testing services revenue is recognized upon shipment of serviced products to the customer. |
Product Warranty | Product Warranty The Company provides a standard one-year warranty for the products it sells. The Company accrues for estimated warranty costs at the time revenue is recognized. The Company's warranty obligation is affected by product failure rates, labor and material costs for replacing defective parts, related freight costs for failed parts and other quality assurance costs. The Company monitors its product returns for warranty claims and maintains warranty reserves based on historical experiences and anticipated warranty claims known at the time of estimation. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in cost of goods sold. |
Research and Development | Research and Development Research and development costs are expensed as incurred. |
Provision for Income Taxes | Provision for Income Taxes Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts. The Company is subject to income taxes in a number of jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company establishes accruals for certain tax contingencies based on estimates of whether additional taxes may be due. While the final tax outcome of these matters may differ from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or research and experimentation tax credit carryforwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that cannot be realized. We consider all available positive and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not that deferred tax assets are recoverable. We consider evidence such as our past operating results, the existence of cumulative losses in recent years and our forecast of future taxable income. The Financial Accounting Standards Board, or FASB, issued guidance which clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely to be realized upon ultimate settlement. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. If the ultimate resolution of tax uncertainties is different from what is currently estimated, a material impact on income tax expense could result. Our provision for income taxes is subject to volatility and could be adversely impacted by changes in earnings or tax laws and regulations in various jurisdictions. We are subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of changes to reserves, as well as the related net interest and penalties. |
Share-based Compensation Expense | Share-based Compensation Expense The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant using the Black-Scholes option valuation model. Share-based compensation expense is recognized on the accelerated vesting attribution basis over the requisite service period of the award, which generally equals the vesting period. The Company maintains an equity-settled, share-based compensation plan which grants share options and restricted share units (the "RSUs") to employees, directors and consultants. In May 2010, the Company adopted the Employee Share Purchase Plan (the "ESPP"). The fair value of RSUs is based on the fair value of the Company's common share on the date of grant. The fair values of stock options and common stock issued under the ESPP are determined at the date of grant using the Black-Scholes option valuation model. The Company determined the weighted average valuation assumptions as follows: • Expected term is determined by using the historical data of industry peers as adjusted for expected changes in future exercise patterns. Starting July 2016, expected term will be estimated using the Company’s historical exercise behavior and expected future exercise behavior. • Forfeiture rate is estimated based on the historical average period of time that the awards were outstanding and forfeited. The estimate of forfeitures is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. Changes in estimated forfeitures are recognized in the period of change and impact the amount of stock compensation expenses to be recognized in future periods, which could be material if actual results differ significantly from our estimates. • Volatility is estimated based on combining both the Company's historical volatility and the volatility of industry peers over a period equivalent to the expected term of the stock awards granted. Starting July 2016, the Company's publicly traded shares history will be solely used in estimating the volatility rate. • Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the awards granted. • Dividend yield is zero as the Company has never declared or paid any dividends and currently has no intention to pay dividends in the foreseeable future. |
Advertising | Advertising Advertising expenditures are expensed as incurred. Advertising expense was $0.4 million , $0.5 million , and $0.3 million for the fiscal years ended June 30, 2016 , 2015 , and 2014 , respectively. |
Comprehensive Income (loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. |
Leases | Leases Leases entered into by the Company as a lessee are classified as capital or operating leases. Leases that transfer to the Company substantially the entire risks and benefits incidental to ownership are classified as capital leases. At the inception of a capital lease, an asset and an obligation are recorded at an amount equal to the lesser of the present value of the minimum lease payments and the asset’s fair market value at the beginning of each lease. Rental payments under operating leases are expensed as incurred. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to certain risks and uncertainties. The Company believes changes in any of the following areas could have a material adverse effect on the Company's future financial position or results of operations or cash flows: new product development, including market receptiveness, operation of in-house manufacturing facilities, litigation or claims against the Company based on intellectual property, patent, product regulatory or other factors, competition from other products, general economic conditions, the ability to attract and retain qualified employees, the ability to successfully operate joint venture and ultimately to sustain profitable operations. The semiconductor industry is characterized by rapid technological change, competition, competitive pricing pressures and cyclical market patterns. The Company's financial results are affected by a wide variety of factors, including general economic conditions specific to the semiconductor industry and the Company's particular market, such as the personal computing (PC) markets, the timely implementation of new products, new manufacturing process technology and the ability to safeguard patents and intellectual property in a rapidly evolving market. In addition, the semiconductor market has historically been cyclical and subject to significant economic downturns. As a result, the Company may experience significant period-to-period fluctuations in operating results due to the factors mentioned above or other factors. The Company transitioned from a fabless to a “fab-lite” business model by completing the acquisition of the Oregon fab on January 31, 2012. Under this model, the Company allocates its wafer manufacturing requirements to both in-house capacity and selected third-party foundries. The Company also deploys and implements its proprietary power discrete processes and equipment at third-party foundries to maximize the performance and quality of its products. The Company's revenue may be impacted by its ability to obtain adequate wafer supplies from third-party foundries and utilize wafer production and packaging and testing capacity from its in-house facilities. Currently the Company's main third-party foundry is Shanghai Hua Hong Grace Electronic Company Limited, or HHGrace, located in Shanghai, China. HHGrace has been manufacturing wafers for the Company since 2002. HHGrace manufactured 25.0% and 25.0% of the wafers used in the Company's products for the fiscal year ended June 30, 2016 and 2015 , respectively. Although the Company believes that its volume of production allows the Company to secure favorable pricing and priority in allocation of capacity in its third-party foundries, if the foundries' capacities are constrained due to market demands, HHGrace, together with other foundries from which the Company purchases wafers, may not be willing or able to satisfy all of the Company's manufacturing requirements on a timely basis and/or at favorable prices. The Company is also subject to the risks of service disruptions and raw material shortages by its foundries. Such disruptions, shortages and price increases could harm the Company's operating results. In addition, manufacturing facilities' capacity affects the Company's gross margin because the Company has certain fixed costs associated with its Oregon fab and in-house packaging and testing facilities. If the Company fails to utilize its manufacturing facilities' capacity at a desirable level, its financial condition and results of operations will be adversely effected. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-12, "Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients." ASU 2016-12 provides additional guidance established by the FASB-IASB Joint Transition Resource Group for Revenue Recognition regarding the implementation of certain aspects of the new revenue recognition guidance. More specifically, the amendment provides additional guidance regarding assessing the collectibility criterion, the presentation of sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications or completed contracts at transition of the new revenue recognition guidance and technical corrections. The effective date is consistent with the effective date of ASU 2014-09. The Company is currently evaluating the impact the adoption of ASU 2016-12 will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ("ASU 2016-10"). ASU 2016-10 clarify two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The update is effective for annual periods beginning after December 15, 2017 including interim reporting periods therein. The Company is currently evaluating the impact the adoption of ASU 2016-10 will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued No. 2016-02, Leases ("ASU 2016-02"). This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In July 2015, the FASB issued No. 2015-11, Inventory - Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 is additional guidance regarding the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In April 2015, the FASB issued ASU No. 2015-03, Interest -Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts and the accounting for debt issue costs under IFRS. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. ASU 2015-03 is effective for the annual period beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In February 2015, the FASB issued ASU No. 2015-2, “Consolidation (Topic 820): Amendments to the Consolidation Analysis.” ASU 2015-2 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-2 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In August 2014, the FASB issued amended standards No. 2014-15, Presentation of Financial Statements - Going Concern ("ASU 2014-15"), to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures requirement. The amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation for each annual and interim reporting period, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. In August 2015, the FASB issued an accounting standard update for a one-year deferral of the effective date of ASU 2014-09 to annual and interim periods beginning after December 15, 2017 and permits entities to early adopt the standard of ASU 2014-09 for annual and interim reporting periods beginning after December 15, 2016. Companies are permitted to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the timing of its adoption and the impact of adoption on its consolidated financial statements. Impact of Recent Accounting Pronouncements Adoption In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which eliminates the requirement for companies to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, upon adoption, companies are required to classify all deferred tax assets and liabilities as non-current. The Company elected to early adopt the new guidance in the fourth quarter of fiscal year 2016 and has made the necessary conforming reclassifications to the accompanying June 30, 2016 consolidated balance sheet and related footnote disclosures. The application of the provisions of ASU 2015-17 resulted in a $2.2 million reduction in current deferred tax assets, a $1.5 million increase in long-term deferred income tax assets and a $0.7 million reduction in non-current deferred income tax liabilities at June 30, 2015. |
The Company and Significant A28
The Company and Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 years Manufacturing machinery and equipment 3 to 10 years Equipment and tooling 5 years Computer equipment and software 3 to 5 years Office furniture and equipment 5 years Leasehold improvements 2 to 15 years based on shorter of expected economic useful life or the lease term Property, plant and equipment, net June 30, 2016 2015 (in thousands) Land $ 4,877 $ 4,877 Building 4,323 4,243 Manufacturing machinery and equipment 193,164 172,467 Equipment and tooling 12,289 11,261 Computer equipment and software 23,448 20,602 Office furniture and equipment 1,822 1,762 Leasehold improvements 28,660 27,568 268,583 242,780 Less accumulated depreciation (168,687 ) (141,883 ) 99,896 100,897 Equipment and construction in progress 16,188 18,682 Property, plant and equipment, net $ 116,084 $ 119,579 |
Schedule of Finite-Lived Intangible Assets | Intangible Assets Intangible assets are stated at cost less accumulated amortization. Intangible assets include patents and exclusive technology rights, trade names and customer relationships. Intangible assets with finite lives are amortized on a straight-line basis over the estimated periods of benefit, as follows: Patents and exclusive technology rights 3 to 7 years Trade name 3 years Customer relationships 4 years Intangible assets June 30, 2016 2015 (in thousands) Patents and exclusive technology rights $ 1,248 $ 1,248 Trade name 268 268 Customer relationships 1,150 1,150 2,666 2,666 Less accumulated amortization (2,651 ) (2,649 ) Intangible assets, net $ 15 $ 17 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net loss per share attributable to common shareholders: Year Ended June 30, 2016 2015 2014 (in thousands, except per share data) Numerator: Net loss attributable to Alpha and Omega Semiconductor Limited $ (2,928 ) $ (7,763 ) $ (3,104 ) Denominator: Basic: Weighted average number of common shares used to compute basic net loss per share 22,452 26,429 25,952 Diluted: Weighted average number of common shares used to compute diluted net loss per share 22,452 26,429 25,952 Net loss per share attributable to Alpha and Omega Semiconductor Limited: Basic $ (0.13 ) $ (0.29 ) $ (0.12 ) Diluted $ (0.13 ) $ (0.29 ) $ (0.12 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potential dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been anti-dilutive: Year Ended June 30, 2016 2015 2014 (in thousands) Employee stock options and RSUs 3,206 3,737 3,940 ESPP 414 380 601 Total potential dilutive securities 3,620 4,117 4,541 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable June 30, 2016 2015 (in thousands) Accounts receivable $ 43,324 $ 58,249 Less: Allowance for price adjustments (16,700 ) (19,438 ) Less: Allowance for doubtful accounts (30 ) (30 ) Accounts receivable, net $ 26,594 $ 38,781 |
Schedule of Inventory, Current | Inventories June 30, 2016 2015 (in thousands) Raw materials $ 23,982 $ 19,423 Work in-process 32,446 31,269 Finished goods 12,420 13,483 $ 68,848 $ 64,175 |
Property, Plant and Equipment | Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 years Manufacturing machinery and equipment 3 to 10 years Equipment and tooling 5 years Computer equipment and software 3 to 5 years Office furniture and equipment 5 years Leasehold improvements 2 to 15 years based on shorter of expected economic useful life or the lease term Property, plant and equipment, net June 30, 2016 2015 (in thousands) Land $ 4,877 $ 4,877 Building 4,323 4,243 Manufacturing machinery and equipment 193,164 172,467 Equipment and tooling 12,289 11,261 Computer equipment and software 23,448 20,602 Office furniture and equipment 1,822 1,762 Leasehold improvements 28,660 27,568 268,583 242,780 Less accumulated depreciation (168,687 ) (141,883 ) 99,896 100,897 Equipment and construction in progress 16,188 18,682 Property, plant and equipment, net $ 116,084 $ 119,579 |
Schedule of Other Assets, Noncurrent | Other long-term assets June 30, 2016 2015 (in thousands) Prepayments for property and equipment $ 548 $ 692 Investment in a privately held company 100 100 Office leases deposits 1,427 1,215 Other — 4 Intangible assets 15 17 Goodwill 269 269 $ 2,359 $ 2,297 |
Schedule of Finite-Lived Intangible Assets | Intangible Assets Intangible assets are stated at cost less accumulated amortization. Intangible assets include patents and exclusive technology rights, trade names and customer relationships. Intangible assets with finite lives are amortized on a straight-line basis over the estimated periods of benefit, as follows: Patents and exclusive technology rights 3 to 7 years Trade name 3 years Customer relationships 4 years Intangible assets June 30, 2016 2015 (in thousands) Patents and exclusive technology rights $ 1,248 $ 1,248 Trade name 268 268 Customer relationships 1,150 1,150 2,666 2,666 Less accumulated amortization (2,651 ) (2,649 ) Intangible assets, net $ 15 $ 17 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future minimum amortization expense of intangible assets is as follows (in thousand): Year ending June 30, 2017 $ 2 2018 2 2019 2 2020 2 2021 2 Thereafter 5 $ 15 |
Schedule of Goodwill | Goodwill The changes in the carrying value of goodwill is as follows (in thousands): (in thousands) Balance at June 30, 2014 $ 269 Addition: — Balance at June 30, 2015 269 Addition: — Balance at June 30, 2016 $ 269 |
Schedule of Accrued Liabilities | Accrued liabilities June 30, 2016 2015 (in thousands) Accrued compensation and benefits $ 10,211 $ 8,582 Warranty accrual 1,495 1,957 Stock rotation accrual 1,988 1,894 Accrued professional fees 1,867 1,402 Accrued inventory 918 697 Accrued facilities related expenses 1,544 1,367 Other accrued expenses 4,567 3,326 $ 22,590 $ 19,225 |
Schedule of Product Warranty Liability | The activity in the warranty accrual, included in accrued liabilities is as follows: Year Ended June 30, 2016 2015 2014 (in thousands) Beginning balance $ 1,957 $ 1,346 $ 1,428 Addition 881 2,395 1,267 Utilization (1,343 ) (1,784 ) (1,349 ) Ending balance $ 1,495 $ 1,957 $ 1,346 |
Stock Rotation Accrual | The activity in the stock rotation accrual, included in accrued liabilities is as follows: Year Ended June 30, 2016 2015 2014 (in thousands) Beginning balance $ 1,894 $ 1,645 $ 1,572 Addition 6,578 5,781 5,006 Utilization (6,484 ) (5,532 ) (4,933 ) Ending balance $ 1,988 $ 1,894 $ 1,645 |
Deferred Margin | Deferred margin Deferred margin consists of the following: June 30, 2016 2015 (in thousands) Deferred revenue $ 1,494 $ 1,104 Deferred costs (497 ) (388 ) Deferred margin $ 997 $ 716 |
Schedule of Capital Lease | Capital leases Long-term capital leases were included in the other long term liabilities in the consolidated balance sheets. Capital lease liabilities as of June 30, 2016 and 2015 consisted of the following: June 30, 2016 2015 (in thousands) Computer software $ 2,449 $ 923 Exclusive technology rights 65 82 2,514 1,005 Less current portion (819 ) (941 ) Capital leases - long-term portion $ 1,695 $ 64 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments at June 30, 2016 are as follows (in thousand): Year ending June 30, 2017 $ 892 2018 892 2019 892 Total minimum lease payments 2,676 Less amount representing interest (162 ) Total capital lease liabilities $ 2,514 |
Concentration of Credit Risk 31
Concentration of Credit Risk and Significant Customers (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts: Year Ended June 30, Percentage of revenue 2016 2015 2014 Customer A 23.8 % 25.4 % 21.6 % Customer B 37.2 % 36.1 % 43.1 % Customer C 12.3 % 11.7 % 11.6 % June 30, Percentage of accounts receivable 2016 2015 Customer A 21.3 % 29.4 % Customer B 16.7 % 27.7 % Customer C 27.2 % 14.7 % |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
Summary of Stock Option Activities | A summary of the stock option activities under the 2000 Plan and 2009 Plan is as follows: Weighted Weighted Weighted Average Average Average Grant Date Remaining Number of Exercise Price Fair Value Contractual Aggregate Shares Per Share Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2013 3,593,854 $ 10.24 5.46 Granted 764,375 $ 7.49 $ 3.85 Exercised (421,456 ) $ 2.60 $ 2,222,155 Canceled or forfeited (697,989 ) $ 11.65 Outstanding at June 30, 2014 3,238,784 $ 10.28 5.79 Granted 10,000 $ 9.07 $ 4.42 Exercised (269,861 ) $ 5.22 $ 1,088,061 Canceled or forfeited (142,706 ) $ 10.08 Outstanding at June 30, 2015 2,836,217 $ 10.77 4.64 Granted — $ — $ — Exercised (666,445 ) $ 8.36 $ 1,746,173 Canceled or forfeited (310,512 ) $ 12.34 Outstanding at June 30, 2016 1,859,260 $ 11.37 4.71 $ 5,959,720 Options vested and expected to vest 1,840,261 $ 11.41 4.68 $ 5,839,323 Exercisable at June 30, 2016 1,595,992 $ 12.00 4.22 $ 4,296,568 |
Shares Authorized under Stock Option Plans, by Exercise Price Range | Weighted Weighted Weighted Average Average Average Grant Date Remaining Number of Exercise Price Fair Value Contractual Aggregate Shares Per Share Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2013 3,593,854 $ 10.24 5.46 Granted 764,375 $ 7.49 $ 3.85 Exercised (421,456 ) $ 2.60 $ 2,222,155 Canceled or forfeited (697,989 ) $ 11.65 Outstanding at June 30, 2014 3,238,784 $ 10.28 5.79 Granted 10,000 $ 9.07 $ 4.42 Exercised (269,861 ) $ 5.22 $ 1,088,061 Canceled or forfeited (142,706 ) $ 10.08 Outstanding at June 30, 2015 2,836,217 $ 10.77 4.64 Granted — $ — $ — Exercised (666,445 ) $ 8.36 $ 1,746,173 Canceled or forfeited (310,512 ) $ 12.34 Outstanding at June 30, 2016 1,859,260 $ 11.37 4.71 $ 5,959,720 Options vested and expected to vest 1,840,261 $ 11.41 4.68 $ 5,839,323 Exercisable at June 30, 2016 1,595,992 $ 12.00 4.22 $ 4,296,568 The aggregate intrinsic value for options outstanding at June 30, 2016 in the table above is based on the Company’s common stock closing price on June 30, 2016 . Information with respect to stock options outstanding and exercisable as of June 30, 2016 is as follows: |
Stock Options, Valuation Assumptions | The fair value of stock options granted during the years ended June 30, 2015 and 2014 were estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions: Year Ended June 30, 2016 2015 2014 Volatility rate —% 40.9% - 43.5% 46.9% - 49.2% Risk-free interest rate —% 1.6% - 1.8% 1.0% - 1.7% Expected option life — 5.5 years 5.5 years Dividend yield —% —% —% |
Restricted Stock Units Activity | Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Aggregate Intrinsic Value Nonvested at June 30, 2013 549,553 $ 9.50 1.87 $ 4,198,585 Granted 368,554 $ 7.54 Vested (136,581 ) $ 9.46 Forfeited (125,152 ) $ 9.54 Nonvested at June 30, 2014 656,374 $ 8.40 1.77 $ 6,084,587 Granted 493,622 $ 8.92 Vested (213,180 ) $ 8.65 Forfeited (62,870 ) $ 8.35 Nonvested at June 30, 2015 873,946 $ 8.64 1.77 $ 7,638,288 Granted 466,255 $ 11.28 Vested (301,695 ) $ 10.97 Forfeited (105,443 ) $ 8.85 Nonvested at June 30, 2016 933,063 $ 9.18 1.73 $ 12,997,568 |
Employee Stock Purchase Plan, Valuation Assumptions | The ESPP is compensatory and results in compensation expense. The fair values of common shares to be issued under the ESPP were determined using the Black-Scholes option valuation model with the following assumptions: Year Ended June 30, 2016 2015 2014 Volatility rate 32.2% - 34.8% 31.4% - 50.0% 50.0% Risk-free interest rate 0.3% - 0.9% 0.1% - 0.6% 0.1% - 0.4% Expected term 1.3 years 1.3 years 1.3 years Dividend yield —% —% —% |
Share-based Compensation, Allocation of Recognized Period Costs | T he total share-based compensation expense related to stock options, ESPP and RSUs described above, recognized in the consolidated statements of operations for the years presented was as follows: Year Ended June 30, 2016 2015 2014 (in thousands) Cost of goods sold $ 636 $ 669 $ 614 Research and development 1,115 779 786 Selling, general and administrative 2,562 3,042 1,975 $ 4,313 $ 4,490 $ 3,375 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for (benefit from) income taxes | The provision for income taxes is comprised of: Year Ended June 30, 2016 2015 2014 (in thousands) U.S. federal taxes: Current $ 152 $ 66 $ (65 ) Deferred 650 852 1,144 Non-U.S. taxes: Current 3,382 3,059 2,316 Deferred (169 ) (15 ) (608 ) State taxes, net of federal benefit: Current 6 (65 ) (38 ) Deferred — — 20 Total provision for income taxes $ 4,021 $ 3,897 $ 2,769 |
Effective income tax rate reconciliation | The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows (in percentage): Year Ended June 30, 2016 2015 2014 United States statutory rate 34.0 % 34.0 % 34.0 % State taxes, net of federal benefit 0.4 1.2 2 Stock based compensation (0.4 ) 0.4 3.2 Foreign taxes, net 440.3 (145.7 ) (900.2 ) Research and development credit (69.3 ) 10 45.4 Non-deductible expenses 1.7 (0.7 ) (8.7 ) Other (0.1 ) — (2.3 ) 406.6 % (100.8 )% (826.6 )% |
Domestic and foreign components of income (loss) | The domestic and foreign components of income (loss) before taxes are: Year Ended June 30, 2016 2015 2014 (in thousands) U.S. operations $ 4,259 $ 4,614 $ 4,184 Non-U.S. operations (3,270 ) (8,480 ) (4,519 ) Income (loss) before income taxes $ 989 $ (3,866 ) $ (335 ) |
Components of deferred tax assets and liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: June 30, 2016 2015 (in thousands) Deferred tax assets: Accrued compensation $ 2,267 $ 1,915 Net operating loss carryforwards 67 81 Depreciation 10,345 11,079 Tax credits 6,069 5,171 Accruals and reserves 934 658 Total deferred tax assets 19,682 18,904 Valuation allowance (2,894 ) (2,700 ) Total deferred tax assets, net of valuation allowance 16,788 16,204 Deferred tax liabilities: Depreciation and amortization (7,388 ) (5,651 ) Accruals and reserves (241 ) (523 ) Total deferred tax liabilities (7,629 ) (6,174 ) Net deferred tax assets $ 9,159 $ 10,030 |
Schedule of deferred tax assets and liabilities, current and noncurrent | The breakdown between current and non-current deferred tax assets and liabilities is as follows: June 30, 2016 2015 (in thousands) Long-term deferred tax assets $ 12,132 $ 12,340 Long-term deferred tax liabilities (2,973 ) (2,310 ) Net deferred tax assets $ 9,159 $ 10,030 |
Unrecognized tax benefits rollforward | At June 30, 2016 , the Company had approximately $6.7 million in total unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2014 to June 30, 2016 is as follows: Year Ended June 30, 2016 2015 2014 (in thousands) Balance at beginning of year $ 6,412 $ 6,760 $ 7,668 Additions based on tax positions related to the current year 388 297 329 Additions (reductions) based on tax positions related to prior years — 4 (18 ) Reductions due to lapse of applicable statute of limitations (57 ) (649 ) (1,219 ) Balance at end of year $ 6,743 $ 6,412 $ 6,760 At June 30, 2016 , the total unrecognized tax benefits of $6.7 million included $5.4 million of unrecognized tax benefits that have been netted against the related deferred tax assets. The remaining $1.3 million of unrecognized tax benefits was recorded within long-term income tax payable on the Company's consolidated balance sheet as of June 30, 2016 . The total unrecognized tax benefits of $6.7 million at June 30, 2016 included $4.4 million that, if recognized, would reduce the effective income tax rate in future periods. |
Segment and Geographic inform34
Segment and Geographic information (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Long-lived assets, consisting of property, plant and equipment by geographical area are as follows: June 30, 2016 2015 (in thousands) China $ 64,272 $ 71,618 United States 51,214 47,439 Other countries 598 522 $ 116,084 $ 119,579 The revenue by geographical location in the following tables is based on the country or region in which the products were shipped to: Year Ended June 30, 2016 2015 2014 (in thousands) Hong Kong $ 290,555 $ 277,825 $ 271,728 China 37,444 42,103 38,740 South Korea 1,960 2,253 3,033 United States 3,110 2,942 1,976 Other countries 2,592 2,812 2,644 $ 335,661 $ 327,935 $ 318,121 |
Revenue from External Customers by Products and Services | The following is a summary of revenue by product type: Year Ended June 30, 2016 2015 2014 (in thousands) Power discrete $ 252,063 $ 248,716 $ 246,033 Power IC 69,344 63,529 53,993 Packaging and testing services 14,254 15,690 18,095 $ 335,661 $ 327,935 $ 318,121 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, future minimum lease payments | Future minimum lease payments of these leases at June 30, 2016 are as follows: Year ending June 30, Operating (in thousands) 2017 $ 3,200 2018 2,249 2019 1,849 2020 1,484 2021 554 Thereafter 574 $ 9,910 |
The Company and Significant A36
The Company and Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Significant Accounting Policies [Line Items] | |||
Net loss | $ (2,928,000) | $ (7,763,000) | $ (3,104,000) |
Length of product warranty | 1 year | ||
Advertising expense | $ 400,000 | 500,000 | 300,000 |
Impairment of long-lived assets | 400,000 | ||
Deferred income tax liabilities | $ 2,973,000 | 2,310,000 | |
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
Significant Accounting Policies [Line Items] | |||
Deferred income tax liabilities | (700,000) | ||
Deferred tax assets, current | 2,200,000 | ||
Deferred tax assets, noncurrent | $ 1,500,000 | ||
Building [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Equipment and tooling [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Office furntiture and equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Internally developed software [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Length of economic benefit to capitalize internal use software development costs | 1 year | ||
Minimum [Member] | Manufacturing machinery and equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum [Member] | Computer equipment and software [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum [Member] | Leasehold improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 2 years | ||
Maximum [Member] | Manufacturing machinery and equipment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum [Member] | Computer equipment and software [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Maximum [Member] | Leasehold improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 15 years | ||
Patents and exclusive technology rights [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 3 years | ||
Patents and exclusive technology rights [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 7 years | ||
Trade name [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 3 years | ||
Customer relationships [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 4 years | ||
Supplier Concentration Risk [Member] | Cost of Goods, Product Line [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percent of wafers manufactured | 25.00% | 25.00% | |
Scenario, Adjustment [Member] | Adjustment on Overstatement of Long-Term Deferred Income Tax Liability and Income Tax Expense [Member] | |||
Significant Accounting Policies [Line Items] | |||
Net loss | $ 172,000 | $ 204,000 | 149,000 |
Earnings Per Share, Basic and Diluted | $ 0.01 | ||
Scenario, Adjustment [Member] | Adjustment on Overstatement of Long-Term Deferred Income Tax Liability and Retained Earnings [Member] [Domain] | |||
Significant Accounting Policies [Line Items] | |||
Deferred income tax liabilities | $ 525,000 | 353,000 | 149,000 |
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') [Member] | |||
Significant Accounting Policies [Line Items] | |||
Investments in and Advances to Affiliates, at Fair Value | 330,000,000 | ||
Parent Company [Member] | |||
Significant Accounting Policies [Line Items] | |||
Net loss | $ (2,928,000) | $ (7,763,000) | $ (3,104,000) |
Parent Company [Member] | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') [Member] | |||
Significant Accounting Policies [Line Items] | |||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 51.00% | ||
Chongqing Funds [Member] | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') [Member] | |||
Significant Accounting Policies [Line Items] | |||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 49.00% |
Net Income (Loss) Per Share -
Net Income (Loss) Per Share - Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (2,928) | $ (7,763) | $ (3,104) |
Basic: | |||
Weighted average number of common shares used to compute basic net income per share | 22,452 | 26,429 | 25,952 |
Diluted: | |||
Weighted average number of common shares used to compute diluted net income per share | 22,452 | 26,429 | 25,952 |
Net income per share attributable to common shareholders: | |||
Basic (in dollars per share) | $ (0.13) | $ (0.29) | $ (0.12) |
Diluted (in dollars per share) | $ (0.13) | $ (0.29) | $ (0.12) |
Net Income (Loss) Per Share 38
Net Income (Loss) Per Share - Potential Dilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential dilutive securities (in shares) | 3,620 | 4,117 | 4,541 |
Employee stock options and RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential dilutive securities (in shares) | 3,206 | 3,737 | 3,940 |
ESPP [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential dilutive securities (in shares) | 414 | 380 | 601 |
Balance Sheet Components - Acc
Balance Sheet Components - Accounts receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 43,324 | $ 58,249 |
Less: Allowance for price adjustments | (16,700) | (19,438) |
Less: Allowance for doubtful accounts | (30) | (30) |
Less: Allowance for doubtful accounts | $ 26,594 | $ 38,781 |
Concentration of Credit Risk 40
Concentration of Credit Risk and Significant Customers (Details) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Minimum [Member] | |||
Concentration Risk | |||
Terms of credit sales, (in days) | 30 days | ||
Maximum [Member] | |||
Concentration Risk | |||
Terms of credit sales, (in days) | 60 days | ||
Customer A [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 23.80% | 25.40% | 21.60% |
Customer A [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 21.30% | 29.40% | |
Customer B [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 37.20% | 36.10% | 43.10% |
Customer B [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 16.70% | 27.70% | |
Customer C [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 12.30% | 11.70% | 11.60% |
Customer C [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 27.20% | 14.70% |
Balance Sheet Components - Inv
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 23,982 | $ 19,423 |
Work in-process | 32,446 | 31,269 |
Finished goods | 12,420 | 13,483 |
Inventories | $ 68,848 | $ 64,175 |
Balance Sheet Components - Pro
Balance Sheet Components - Property, plant, and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | $ 268,583 | $ 242,780 | |
Less accumulated depreciation | (168,687) | (141,883) | |
Property, plant and equipment excluding equipment and construction in progress, net | 99,896 | 100,897 | |
Equipment and construction in progress | 16,188 | 18,682 | |
Property, plant and equipment, net | 116,084 | 119,579 | |
Depreciation expense | 27,300 | 27,400 | $ 27,500 |
Capitalized software development costs | 200 | 1,000 | 1,100 |
Amortization of capitalized software development costs | 600 | 500 | $ 400 |
Unamortized capitalized software development costs | 1,400 | 1,800 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 4,877 | 4,877 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 4,323 | 4,243 | |
Manufacturing machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 193,164 | 172,467 | |
Equipment and tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 12,289 | 11,261 | |
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 23,448 | 20,602 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 1,822 | 1,762 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 28,660 | 27,568 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross amount of computer software recorded under capital lease | 8,300 | 5,800 | |
Accumulated depreciation on computer software recorded under capital lease | $ 5,600 | $ 4,500 |
Balance Sheet Components - Impa
Balance Sheet Components - Impairment of long-lived assets, intangible assets, and goodwill (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Balance Sheet Related Disclosures [Abstract] | |||
Impairment of long-lived assets | $ 400,000 | ||
Impairment of intangible assets | 0 | $ 0 | $ 0 |
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Balance Sheet Components - Int
Balance Sheet Components - Intangible assets (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 2,666,000 | $ 2,666,000 | |
Less accumulated amortization | (2,651,000) | (2,649,000) | |
Intangible assets, net | 15,000 | 17,000 | |
Amortization expense | 2,000 | 100,000 | $ 400,000 |
Patents and exclusive technology rights [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 1,248,000 | 1,248,000 | |
Trade name [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 268,000 | 268,000 | |
Customer relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 1,150,000 | $ 1,150,000 |
Balance Sheet Components Future
Balance Sheet Components Future amortization expense of intangible assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 2 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 5 | |
Intangible assets, net | $ 15 | $ 17 |
Balance Sheet Components - Goo
Balance Sheet Components - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 269 | $ 269 |
Addition: | 0 | 0 |
Ending balance | $ 269 | $ 269 |
Balance Sheet Components - Othe
Balance Sheet Components - Other long term assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Balance Sheet Related Disclosures [Abstract] | |||
Prepayments for property and equipment | $ 548 | $ 692 | |
Investment in a privately held company | 100 | 100 | |
Office leases deposits | 1,427 | 1,215 | |
Other | 0 | 4 | |
Intangible assets | 15 | 17 | |
Goodwill | 269 | 269 | $ 269 |
Other long-term assets | $ 2,359 | $ 2,297 |
Balance Sheet Components - A48
Balance Sheet Components - Accrued liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued compensation and benefits | $ 10,211 | $ 8,582 | ||
Warranty accrual | 1,495 | 1,957 | $ 1,346 | $ 1,428 |
Stock rotation accrual | 1,988 | 1,894 | $ 1,645 | $ 1,572 |
Accrued professional fees | 1,867 | 1,402 | ||
Accrued inventory | 918 | 697 | ||
Accrued facilities related expenses | 1,544 | 1,367 | ||
Other accrued expenses | 4,567 | 3,326 | ||
Accrued liabilities | $ 22,590 | $ 19,225 |
Balance Sheet Components - P49
Balance Sheet Components - Product Warranty Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning balance | $ 1,957 | $ 1,346 | $ 1,428 |
Addition | 881 | 2,395 | 1,267 |
Utilization | (1,343) | (1,784) | (1,349) |
Ending balance | $ 1,495 | $ 1,957 | $ 1,346 |
Balance Sheet Components - Stoc
Balance Sheet Components - Stock Rotation Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stock Rotation Accrual Increae (Decrease) [Roll Forward] | |||
Beginning balance | $ 1,894 | $ 1,645 | $ 1,572 |
Addition | 6,578 | 5,781 | 5,006 |
Utilization | (6,484) | (5,532) | 4,933 |
Ending balance | $ 1,988 | $ 1,894 | $ 1,645 |
Balance Sheet Components - Defe
Balance Sheet Components - Deferred Margin (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred revenue | $ 1,494 | $ 1,104 |
Deferred costs | (497) | (388) |
Deferred margin | $ 997 | $ 716 |
Balance Sheet Components - Capi
Balance Sheet Components - Capital Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Capital Leased Assets [Line Items] | ||
Capital lease obligations | $ 2,514 | $ 1,005 |
Less current portion | (819) | (941) |
Capital leases - long term | 1,695 | 64 |
Computer software | ||
Capital Leased Assets [Line Items] | ||
Capital lease obligations | 2,449 | 923 |
Exclusive technology rights | ||
Capital Leased Assets [Line Items] | ||
Capital lease obligations | $ 65 | $ 82 |
Balance Sheet Components - Futu
Balance Sheet Components - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 892 | |
2,018 | 892 | |
2,019 | 892 | |
Total minimum lease payments | 2,676 | |
Less amount representing interest | (162) | |
Capital lease obligations | $ 2,514 | $ 1,005 |
Debt (Details)
Debt (Details) - USD ($) | May 11, 2012 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | May 31, 2013 | Jul. 17, 2012 |
Debt Instrument [Line Items] | |||||||
Government grant via forgiven loan | $ 300,000 | $ 0 | $ (250,000) | $ 0 | |||
Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum limit | $ 10,000,000 | ||||||
Long-term Line of Credit | $ 0 | ||||||
Variable Interest Rate Term Loan Maturing May 2015 [Member] | Secured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term loan | $ 20,000,000 | ||||||
State of Oregon Loan [Member] | Loans Payable [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term loan | $ 300,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||
Eurodollar [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||
Eurodollar Additional Margin [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | (0.50%) | ||||||
Eurodollar Additional Margin [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||
Federal Funds Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Joint Venture (Details)
Joint Venture (Details) - Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments in and Advances to Affiliates, at Fair Value | $ 330 | ||
Parent Company [Member] | |||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 51.00% | ||
Parent Company [Member] | Scenario, Forecast [Member] | Subsequent Event [Member] | |||
Payments to Acquire Interest in Joint Venture | $ 10 | ||
Chongqing Funds [Member] | |||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 49.00% | ||
Chongqing Funds [Member] | Subsequent Event [Member] | |||
Payments to Acquire Interest in Joint Venture | $ 33 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | Jul. 07, 2015USD ($)$ / sharesshares | May 04, 2010shares | Jun. 30, 2016USD ($)votes$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jul. 08, 2015USD ($) | Jun. 07, 2015USD ($)$ / shares | Apr. 30, 2015USD ($) | Mar. 31, 2015USD ($) | May 08, 2014USD ($) | Oct. 22, 2010USD ($) |
Common Shares | ||||||||||||
Common shares, authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Common shares, par value (in dollars per share) | $ / shares | $ 0.002 | $ 0.002 | $ 0.002 | |||||||||
Common stock, dividends declared per share | $ / shares | $ 0 | |||||||||||
Number of Votes Per Each Common Share | votes | 1 | |||||||||||
Treasury Shares | ||||||||||||
Share repurchase program, authorized amount | $ | $ 25,000 | |||||||||||
Share repurchase program, remaining authorized amount | $ | $ 6,400 | $ 6,400 | $ 18,200 | $ 50,000 | $ 17,800 | $ 22,700 | ||||||
Treasury stock acquired, shares repurchased (in shares) | 4,695,499 | 666,230 | 119,594 | 5,723,093 | ||||||||
Treasury stock acquired less handling fees | $ | $ 41,800 | $ 5,800 | $ 900 | |||||||||
Treasury stock acquired | $ | $ 42,081 | $ 5,816 | $ 918 | $ 50,800 | ||||||||
Treasury stock acquired, average price per share (in dollars per share) | $ / shares | $ 8.90 | $ 8.70 | $ 7.66 | $ 8.87 | ||||||||
Treasury stock retired (in shares) | 0 | |||||||||||
Treasury stock reissued average price per share | $ / shares | $ 4.28 | |||||||||||
Convertible Preferred Shares | ||||||||||||
Conversion of preferred shares upon the initial public offering (in shares) | 10,712,094 | |||||||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |||||||||
Treasury Stock Reissued [Member] | ||||||||||||
Treasury Shares | ||||||||||||
Treasury stock acquired, average price per share (in dollars per share) | $ / shares | $ 12.33 | |||||||||||
Treasury stock reissued (in shares) | 71,803 | |||||||||||
Series A Preferred Stock [Member] | ||||||||||||
Convertible Preferred Shares | ||||||||||||
Preferred stock converted to common stock (in shares) | 5,050,000 | |||||||||||
Series B Preferred Stock [Member] | ||||||||||||
Convertible Preferred Shares | ||||||||||||
Preferred stock converted to common stock (in shares) | 2,488,094 | |||||||||||
Series C Preferred Stock [Member] | ||||||||||||
Convertible Preferred Shares | ||||||||||||
Preferred stock converted to common stock (in shares) | 3,174,000 | |||||||||||
Dutch Auction Tender Offer [Member] | Common Shares [Member] | ||||||||||||
Treasury Shares | ||||||||||||
Share repurchase program, authorized amount | $ | $ 30,000 | |||||||||||
Treasury stock acquired, shares repurchased (in shares) | 3,296,703 | |||||||||||
Treasury stock acquired | $ | $ 30,000 | |||||||||||
Treasury stock acquired, average price per share (in dollars per share) | $ / shares | $ 9.10 | |||||||||||
Treasury stock acquired, percentage of the Company's common stock issued and outstanding | 12.53% | 12.53% | ||||||||||
Dutch Auction Tender Offer [Member] | Minimum [Member] | Common Shares [Member] | ||||||||||||
Treasury Shares | ||||||||||||
Treasury stock acquired, authorized cost (in dollars per share) | $ / shares | $ 8.50 | |||||||||||
Dutch Auction Tender Offer [Member] | Maximum [Member] | Common Shares [Member] | ||||||||||||
Treasury Shares | ||||||||||||
Treasury stock acquired, authorized cost (in dollars per share) | $ / shares | $ 9.20 |
Share-based Compensation (Detai
Share-based Compensation (Details) | Apr. 28, 2010shares | Jun. 30, 2016USD ($)programs$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2013$ / sharesshares | Dec. 31, 2013shares | Jan. 31, 2015shares | Sep. 18, 2009shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate intrinsic value of options vested and expected to vest | $ | $ 5,839,323 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,595,992 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 12 | |||||||
Aggregate intrinsic value options exercisable | $ | $ 4,296,568 | |||||||
Weighted average remaining contractual term of options exercisable | 4 years 2 months 19 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||||
Outstanding (in shares) | 2,836,217 | 3,238,784 | 3,593,854 | |||||
Granted (in shares) | 0 | 10,000 | 764,375 | |||||
Exercised (in shares) | (666,445) | (269,861) | (421,456) | |||||
Canceled or forfeited (in shares) | (310,512) | (142,706) | (697,989) | |||||
Outstanding (in shares) | 1,859,260 | 2,836,217 | 3,238,784 | 3,593,854 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||||||
Outstanding (in dollars per share) | $ / shares | $ 10.77 | $ 10.28 | $ 10.24 | |||||
Granted (in dollars per share) | $ / shares | 0 | 9.07 | 7.49 | |||||
Exercised (in dollars per share) | $ / shares | 8.36 | 5.22 | 2.60 | |||||
Canceled or forfeited (in dollars per share) | $ / shares | 12.34 | 10.08 | 11.65 | |||||
Outstanding (in dollars per share) | $ / shares | 11.37 | 10.77 | 10.28 | $ 10.24 | ||||
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | $ 0 | $ 4.42 | $ 3.85 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 8 months 16 days | 4 years 7 months 21 days | 5 years 9 months 15 days | 5 years 5 months 16 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ | $ 1,746,173 | $ 1,088,061 | $ 2,222,155 | |||||
Aggregate Intrinsic Value, Outstanding | $ | $ 5,959,720 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,840,261 | |||||||
Weighted average exercise price per share of options vested and expected to vest | $ / shares | $ 11.41 | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 8 months 5 days | |||||||
2009 Option/Share Issuance Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of incentive compensation programs | programs | 3 | |||||||
Employee stock options and RSUs [Member] | 2009 Option/Share Issuance Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options exercisable term (in years) | 10 years | |||||||
Annual increase in shares authorized, percent (lesser of 3%) | 3.00% | |||||||
Annual increase in shares authorized (in shares) | 750,000 | |||||||
Number of additional shares authorized | 668,915 | 750,000 | 750,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,527,000 | |||||||
Monthly vesting schedule (in months) | 48 months | |||||||
Employee stock options and RSUs [Member] | Maximum [Member] | 2009 Option/Share Issuance Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period (in years) | 5 years | |||||||
Shares authorized under plan (in shares) | 1,250,000 | |||||||
Employee stock options and RSUs [Member] | Minimum [Member] | 2009 Option/Share Issuance Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period (in years) | 4 years | |||||||
Stock Options [Member] | 2000 Share Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period (in years) | 5 years | |||||||
Shares authorized under plan (in shares) | 5,425,000 | |||||||
Award vesting period percentage | 20.00% | |||||||
Stock options exercisable term (in years) | 10 years | |||||||
Monthly vesting schedule (in months) | 48 months | |||||||
Performance Shares [Member] | Minimum [Member] | 2000 Share Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant price, percent of fair value of common stock at date of grant | 100.00% | |||||||
Exercise price as percent of fair value of common stock for shareholders with more than 10% of outstanding shares of all share classes | 110.00% | |||||||
Performance Shares [Member] | Minimum [Member] | 2009 Option/Share Issuance Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant price, percent of fair value of common stock at date of grant | 100.00% | |||||||
Exercise price as percent of fair value of common stock for shareholders with more than 10% of outstanding shares of all share classes | 110.00% | |||||||
Nonstatutory Stock Options [Member] | Minimum [Member] | 2000 Share Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant price, percent of fair value of common stock at date of grant | 85.00% | |||||||
Nonstatutory Stock Options [Member] | Minimum [Member] | 2009 Option/Share Issuance Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant price, percent of fair value of common stock at date of grant | 85.00% | |||||||
External Board Members [Member] | 2009 Option/Share Issuance Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||||
Granted (in shares) | 7,500 | 7,500 | ||||||
External Board Members [Member] | Restricted Stock Units (RSUs) [Member] | 2009 Option/Share Issuance Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, value | $ | $ 42,000 |
Share-based Compensation - Sto
Share-based Compensation - Stock Options Outstanding and Exercisable (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 12 | ||
Aggregate intrinsic value of options vested and expected to vest | $ 5,839,323 | ||
Weighted average remaining contractual term of options exercisable | 4 years 2 months 19 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,840,261 | ||
Weighted average exercise price per share of options vested and expected to vest | $ 11.41 | ||
Price Range $7.21 - 7.21 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number Outstanding (in shares) | 6,875 | ||
Weighted-Average Remaining Contractual Life (Years) | 7 years 6 months 29 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 7.21 | ||
Number Exercisable (in shares) | 6,875 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 7.21 | ||
Exercise price, upper range limit (in dollars per share) | 7.21 | ||
Exercise price, lower range limit (in dollars per share) | $ 7.21 | ||
Price Range $7.44 - 7.44 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number Outstanding (in shares) | 436,147 | ||
Weighted-Average Remaining Contractual Life (Years) | 7 years 8 months 16 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 7.44 | ||
Number Exercisable (in shares) | 226,146 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 7.44 | ||
Exercise price, upper range limit (in dollars per share) | 7.44 | ||
Exercise price, lower range limit (in dollars per share) | $ 7.44 | ||
Price Range $7.47 - 9.90 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number Outstanding (in shares) | 399,788 | ||
Weighted-Average Remaining Contractual Life (Years) | 5 years 8 months 16 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 8.84 | ||
Number Exercisable (in shares) | 346,521 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 8.92 | ||
Exercise price, upper range limit (in dollars per share) | 9.90 | ||
Exercise price, lower range limit (in dollars per share) | $ 7.47 | ||
Price Range $10.22 - 13.00 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number Outstanding (in shares) | 646,450 | ||
Weighted-Average Remaining Contractual Life (Years) | 2 years 6 months 18 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 12.31 | ||
Number Exercisable (in shares) | 646,450 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 12.31 | ||
Exercise price, upper range limit (in dollars per share) | 13 | ||
Exercise price, lower range limit (in dollars per share) | $ 10.22 | ||
Price Range $14.14 - $18.00 (Member) | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number Outstanding (in shares) | 370,000 | ||
Weighted-Average Remaining Contractual Life (Years) | 3 years 9 months 22 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 17.20 | ||
Number Exercisable (in shares) | 370,000 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 17.20 | ||
Exercise price, upper range limit (in dollars per share) | 18 | ||
Exercise price, lower range limit (in dollars per share) | $ 14.14 | ||
Price Range $7.21 - 18.00 Member | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number Outstanding (in shares) | 1,859,260 | ||
Weighted-Average Remaining Contractual Life (Years) | 4 years 8 months 16 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 11.37 | ||
Number Exercisable (in shares) | 1,595,992 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 12 | ||
Exercise price, upper range limit (in dollars per share) | 18 | ||
Exercise price, lower range limit (in dollars per share) | $ 7.21 | ||
Employee stock options and RSUs [Member] | 2009 Option/Share Issuance Plan [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of additional shares authorized | 668,915 | 750,000 | 750,000 |
Share-based Compensation - Fai
Share-based Compensation - Fair Value of Stock Options Weighted Average Assumptions (Details) - Stock Options [Member] | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 6 months | 5 years 6 months |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility rate | 40.90% | 46.90% |
Risk-free interest rate | 1.60% | 1.00% |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility rate | 43.50% | 49.20% |
Risk-free interest rate | 1.80% | 1.70% |
Share-based Compensation - Res
Share-based Compensation - Restricted Stock Activity (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Weighted Average Remaining Recognition Period (Years) | 1 year 7 months 6 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested | 873,946 | 656,374 | 549,553 | |
Granted | 466,255 | 493,622 | 368,554 | |
Vested | (301,695) | (213,180) | (136,581) | |
Forfeited | (105,443) | (62,870) | (125,152) | |
Nonvested | 933,063 | 873,946 | 656,374 | 549,553 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Nonvested | $ 8.64 | $ 8.40 | $ 9.50 | |
Granted | 11.28 | 8.92 | 7.54 | |
Vested | 10.97 | 8.65 | 9.46 | |
Forfeited | 8.85 | 8.35 | 9.54 | |
Nonvested | $ 9.18 | $ 8.64 | $ 8.40 | $ 9.50 |
Weighted Average Remaining Recognition Period (Years) | 1 year 8 months 23 days | 1 year 9 months 7 days | 1 year 9 months 7 days | 1 year 10 months 13 days |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 12,997,568 | $ 7,638,288 | $ 6,084,587 | $ 4,198,585 |
Share-based Compensation - Emp
Share-based Compensation - Employee Share Purchase Plan (Details) - Employee Stock [Member] - USD ($) | 12 Months Ended | 49 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Duration of offering periods for ESPP (in months) | 24 months | |||
Percent of compensation allowed for purchase of options | 15.00% | |||
Payroll deduction accumulation period (in months) | 6 months | |||
Grant price, percent of fair value of common stock at date of grant | 85.00% | |||
Shares authorized under plan (in shares) | 600,000 | |||
Number of additional shares authorized | 167,229 | 192,000 | 192,000 | |
Weighted-average grant date fair value | $ 2.85 | $ 2.80 | $ 2.89 | |
Fair Value Assumptions For ESPP | ||||
Volatility rate | 50.00% | |||
Expected option life (in years) | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 3 months 18 days | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Minimum [Member] | ||||
Fair Value Assumptions For ESPP | ||||
Volatility rate | 32.20% | 31.40% | ||
Risk-free interest rate | 0.30% | 0.10% | 0.10% | |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of common shares that may be purchased on any purchase date (in shares) | 875 | |||
Maximum number of common shares that may be purchased per a 24-month offering period (in shares) | 3,500 | |||
Maximum value of common stock that may be purchased in any one calendar year | $ 25,000 | |||
Annual increase in shares authorized, percent | 0.75% | |||
Annual increase in shares authorized (in shares) | 250,000 | |||
Fair Value Assumptions For ESPP | ||||
Volatility rate | 34.80% | 50.00% | ||
Risk-free interest rate | 0.90% | 0.60% | 0.40% |
Share-based Compensation - Sha
Share-based Compensation - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated share-based compensation expense | $ 4,313 | $ 4,490 | $ 3,375 |
Unrecognized compensation expense | $ 5,800 | ||
Recognition period of share-based compensation expense (in years) | 1 year 7 months 6 days | ||
Cost of goods sold [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated share-based compensation expense | $ 636 | 669 | 614 |
Research and development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated share-based compensation expense | 1,115 | 779 | 786 |
Selling, general and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated share-based compensation expense | $ 2,562 | $ 3,042 | $ 1,975 |
Stock Options [Member] | 2000 Share Plan [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Award vesting period (in years) | 5 years | ||
Employee stock options and RSUs [Member] | 2009 Option/Share Issuance Plan [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Number of additional shares authorized | 668,915 | 750,000 | 750,000 |
Maximum [Member] | Employee stock options and RSUs [Member] | 2009 Option/Share Issuance Plan [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Award vesting period (in years) | 5 years | ||
Minimum [Member] | Employee stock options and RSUs [Member] | 2009 Option/Share Issuance Plan [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Award vesting period (in years) | 4 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($)shares | |
Defined Benefit Plan Disclosure [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 1,595,992 |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 7.70% |
Taiwan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 6.00% |
Minimum [Member] | China | |
Defined Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 13.00% |
Maximum [Member] | China | |
Defined Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 20.00% |
United States Postretirement Benefit Plan of US Entity [Member] | Retirement Plan, 401-K [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employee maximum salary deferral contribution, percent | 100.00% |
Company contributions to retirement plan | $ | $ 0 |
Income Taxes - Narrative (Deta
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Tax Credit Carryforward [Line Items] | ||||
Undistributed earnings of foreign subsidiaries | $ 82,200,000 | |||
Unrecognized tax benefits | 6,743,000 | $ 6,412,000 | $ 6,760,000 | $ 7,668,000 |
Unrecognized tax benefit, amount netted against deferred tax assets | 5,400,000 | |||
Unrecognized tax benefits that would reduce effective income tax rate | 4,400,000 | |||
Decrease in unrecognized tax benefits is reasonably possible | 600,000 | |||
Income tax interest and penalties accrued | 300,000 | 200,000 | ||
Income tax interest and penalties expense | 0 | $ (100,000) | ||
Federal [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 3,000,000 | |||
State [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 4,600,000 | |||
Tax credit carryforward, subject to expiration | 200,000 | |||
Tax credit carryforward, not subject to expiration | 4,400,000 | |||
Net operating loss carryforwards | 0 | |||
Long-term Income Tax Payable [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Unrecognized tax benefits | $ 1,300,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
U.S. federal taxes: | |||
Current | $ 152 | $ 66 | $ (65) |
Deferred | 650 | 852 | 1,144 |
Non-U.S. taxes: | |||
Current | 3,382 | 3,059 | 2,316 |
Deferred | (169) | (15) | (608) |
State taxes, net of federal benefit: | |||
Current | 6 | (65) | (38) |
Deferred | 0 | 0 | 20 |
Total provision for income taxes | $ 4,021 | $ 3,897 | $ 2,769 |
Effective income tax rate reconciliation | |||
United States statutory rate | 34.00% | 34.00% | 34.00% |
State taxes, net of federal benefit | 0.40% | 1.20% | 2.00% |
Stock based compensation | (0.40%) | 0.40% | 3.20% |
Foreign taxes, net | 440.30% | (145.70%) | (900.20%) |
Research and development credit | (69.30%) | 10.00% | 45.40% |
Non-deductible expenses | 1.70% | (0.70%) | (8.70%) |
Other | (0.10%) | 0.00% | (2.30%) |
Effective income tax rate | 406.60% | (100.80%) | (826.60%) |
Domestic and foreign components of income (loss) before taxes | |||
U.S. operations | $ 4,259 | $ 4,614 | $ 4,184 |
Non-U.S. operations | (3,270) | (8,480) | (4,519) |
Income (loss) before income taxes | 989 | (3,866) | (335) |
Deferred tax assets: | |||
Accrued compensation | 2,267 | 1,915 | |
Net operating loss carryforwards | 67 | 81 | |
Depreciation | 10,345 | 11,079 | |
Tax credits | 6,069 | 5,171 | |
Accruals and reserves | 934 | 658 | |
Total deferred tax assets | 19,682 | 18,904 | |
Valuation allowance | (2,894) | (2,700) | |
Total deferred tax assets, net of valuation allowance | 16,788 | 16,204 | |
Deferred tax liabilities: | |||
Depreciation and amortization | (7,388) | (5,651) | |
Accruals and reserves | (241) | (523) | |
Total deferred tax liabilities | (7,629) | (6,174) | |
Net deferred tax assets | 9,159 | 10,030 | |
Current and non-current deferred tax assets and liabilities | |||
Long-term deferred tax assets | 12,132 | 12,340 | |
Long-term deferred tax liabilities | (2,973) | (2,310) | |
Net deferred tax assets | 9,159 | 10,030 | |
Unrecognized tax benefits rollforward | |||
Balance at beginning of year | 6,412 | 6,760 | 7,668 |
Additions based on tax positions related to the current year | 388 | 297 | 329 |
Additions (reductions) based on tax positions related to prior years | 0 | (18) | |
Additions based on tax positions related to prior years | 4 | ||
Reductions due to lapse of applicable statute of limitations | (57) | (649) | (1,219) |
Balance at end of year | $ 6,743 | $ 6,412 | $ 6,760 |
Segment and Geographic inform66
Segment and Geographic information Segment Narrative (Details) | 12 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 1 |
Segment and Geographic Inform67
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 335,661 | $ 327,935 | $ 318,121 |
Power discrete [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 252,063 | 248,716 | 246,033 |
Power IC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 69,344 | 63,529 | 53,993 |
Packaging and testing services [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 14,254 | 15,690 | 18,095 |
Hong Kong | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 290,555 | 277,825 | 271,728 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 37,444 | 42,103 | 38,740 |
South Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,960 | 2,253 | 3,033 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 3,110 | 2,942 | 1,976 |
Other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 2,592 | $ 2,812 | $ 2,644 |
Segment and Geographic inform68
Segment and Geographic information Location and Net Book Value of Long-Lived Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 116,084 | $ 119,579 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 64,272 | 71,618 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 51,214 | 47,439 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 598 | $ 522 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - China - Subsidiaries [Member] - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Restricted Statutory Reserves [Line Items] | ||
Foreign subsidiaries, restricted statutory reserves | $ 84.2 | $ 86.8 |
Foreign subsidiaries, restricted statutory reserves percent of parent consolidated net assets | 34.80% | 31.40% |
Minimum [Member] | ||
Restricted Statutory Reserves [Line Items] | ||
Foreign subsidiaries, minimum percent of after-tax profit required annually in statutory reserves | 10.00% | |
Maximum [Member] | ||
Restricted Statutory Reserves [Line Items] | ||
Foreign subsidiaries, statutory reserves maximum cumulative amount as a percent of registered capital | 50.00% |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense, Net | $ 3,500 | $ 3,500 | $ 3,400 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | 3,200 | ||
2,018 | 2,249 | ||
2,019 | 1,849 | ||
2,020 | 1,484 | ||
2,021 | 554 | ||
Thereafter | 574 | ||
Future minimum payments due | $ 9,910 |
Commitments and Contingencies
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Jun. 30, 2015 |
Raw materials, wafers, and packaging and testing services purchase commitments [Member] | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 39.6 | $ 29.2 |
Property and equipment purchase commitments [Member] | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 6.6 | $ 3.7 |
Commitments and Contingencies72
Commitments and Contingencies - Contingencies and Indemnities (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Indemnification Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Indemnification accrual | $ 0 | $ 0 |
Commitments and Contingencies O
Commitments and Contingencies Other Investments (Details) - Subsequent Event [Member] - Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jul. 31, 2016 | Jun. 30, 2017 | |
Chongqing Funds [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Payments to Acquire Interest in Joint Venture | $ 33 | |
Scenario, Forecast [Member] | Parent Company [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Payments to Acquire Interest in Joint Venture | $ 10 |
Schedule I - Condensed Uncons74
Schedule I - Condensed Unconsolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 87,774 | $ 106,085 | $ 117,788 | $ 92,406 |
Other current assets | 4,526 | 4,279 | ||
Total current assets | 187,930 | 213,688 | ||
Property, plant and equipment, net | 116,084 | 119,579 | ||
Other long-term assets | 2,359 | 2,297 | ||
Total assets | 318,505 | 347,904 | ||
Current liabilities: | ||||
Total liabilities | 76,466 | 71,265 | ||
Preferred shares, par value $0.002 per share: | ||||
Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2016 and 2015 | 0 | 0 | ||
Common shares, par value $0.002 per share: | ||||
Authorized: 50,000 shares; Issued and outstanding: 28,405 shares and 22,754 shares at June 30, 2016 and 27,314 shares and 26,316 shares at June 30, 2015 | 57 | 55 | ||
Treasury shares at cost; 5,651 shares at June 30, 2016 and 998 shares at June 30, 2015 | (50,199) | (8,593) | ||
Additional paid-in capital | 191,444 | 181,040 | ||
Accumulated other comprehensive income | 769 | 905 | ||
Retained earnings | 100,071 | 103,232 | ||
Total Alpha and Omega Semiconductor Limited shareholder's equity | 242,142 | 276,639 | ||
Noncontrolling interest | (103) | 0 | ||
Total equity | 242,039 | 276,639 | 283,388 | 281,600 |
Total liabilities and equity | 318,505 | 347,904 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 8,051 | 17,397 | $ 5,187 | $ 7,143 |
Accounts receivable - Intercompany | 13,385 | 39,004 | ||
Other current assets | 268 | 291 | ||
Total current assets | 21,704 | 56,692 | ||
Property, plant and equipment, net | 1,308 | 1,786 | ||
Other long-term assets | 100 | 100 | ||
Investment in subsidiaries | 219,594 | 218,552 | ||
Total assets | 242,706 | 277,130 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 667 | 491 | ||
Total liabilities | 667 | 491 | ||
Preferred shares, par value $0.002 per share: | ||||
Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2016 and 2015 | 0 | 0 | ||
Common shares, par value $0.002 per share: | ||||
Authorized: 50,000 shares; Issued and outstanding: 28,405 shares and 22,754 shares at June 30, 2016 and 27,314 shares and 26,316 shares at June 30, 2015 | 57 | 55 | ||
Treasury shares at cost; 5,651 shares at June 30, 2016 and 998 shares at June 30, 2015 | (50,199) | (8,593) | ||
Additional paid-in capital | 191,444 | 181,040 | ||
Accumulated other comprehensive income | 769 | 905 | ||
Retained earnings | 100,071 | 103,232 | ||
Total Alpha and Omega Semiconductor Limited shareholder's equity | 242,142 | 276,639 | ||
Noncontrolling interest | (103) | 0 | ||
Total equity | 242,039 | 276,639 | ||
Total liabilities and equity | $ 242,706 | $ 277,130 |
Schedule I - Condensed Uncons75
Schedule I - Condensed Unconsolidated Balance Sheets (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Noncontrolling interest | $ (103) | $ 0 |
Common Stock, Par or Stated Value Per Share | $ 0.002 | $ 0.002 |
Common shares, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 28,405,000 | 27,314,000 |
Common stock, shares outstanding (in shares) | 22,754,000 | 26,316,000 |
Preferred stock, par value (in dollars per share) | $ 0.002 | $ 0.002 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury Stock, Shares | 5,651,000 | 998,000 |
Parent Company [Member] | ||
Noncontrolling interest | $ (103) | $ 0 |
Schedule I - Condensed Uncons76
Schedule I - Condensed Unconsolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Gross profit | $ 65,822 | $ 60,482 | $ 59,071 |
Operating expenses: | |||
Selling, general and administrative | 37,874 | 37,625 | 34,554 |
Total operating expenses | 64,312 | 64,700 | 58,963 |
Operating loss | 1,510 | (4,218) | 108 |
Interest expense | (23) | (181) | (266) |
Net loss including noncontrolling interest | (3,032) | (7,763) | (3,104) |
Net loss attributable to noncontrolling interest | (104) | 0 | 0 |
Net loss attributable to Alpha and Omega Semiconductor Limited | (2,928) | (7,763) | (3,104) |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenue | 3,345 | 3,332 | 3,074 |
Cost of revenue | 0 | 0 | 0 |
Gross profit | 3,345 | 3,332 | 3,074 |
Operating expenses: | |||
Selling, general and administrative | 3,438 | 3,477 | 3,171 |
Total operating expenses | 3,438 | 3,477 | 3,171 |
Operating loss | (93) | (145) | (97) |
Interest income | 7 | 7 | 6 |
Interest expense | 0 | (2) | (11) |
Loss on equity investment in subsidiaries | (2,946) | (7,623) | (3,002) |
Net loss including noncontrolling interest | (3,032) | (7,763) | (3,104) |
Net loss attributable to noncontrolling interest | (104) | 0 | 0 |
Net loss attributable to Alpha and Omega Semiconductor Limited | $ (2,928) | $ (7,763) | $ (3,104) |
Schedule I - Condensed Uncons77
Schedule I - Condensed Unconsolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net loss including noncontrolling interest | $ (3,032) | $ (7,763) | $ (3,104) |
Net Income (Loss) Attributable to Parent | (2,928) | (7,763) | (3,104) |
Other comprehensive income, net of tax, foreign currency translation adjustment | (135) | (128) | 76 |
Comprehensive loss | (3,167) | (7,891) | (3,028) |
Noncontrolling interest | (103) | 0 | 0 |
Comprehensive loss attributable to Alpha and Omega Semiconductor Limited | (3,064) | (7,891) | (3,028) |
Parent Company [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net loss including noncontrolling interest | (3,032) | (7,763) | (3,104) |
Net Income (Loss) Attributable to Parent | (2,928) | (7,763) | (3,104) |
Other comprehensive income, net of tax, foreign currency translation adjustment | (135) | (128) | 76 |
Comprehensive loss | (3,167) | (7,891) | (3,028) |
Noncontrolling interest | (103) | 0 | 0 |
Comprehensive loss attributable to Alpha and Omega Semiconductor Limited | $ (3,064) | $ (7,891) | $ (3,028) |
Schedule I - Condensed Uncons78
Schedule I - Condensed Unconsolidated Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | |||
Net loss including noncontrolling interest | $ (3,032) | $ (7,763) | $ (3,104) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation | 27,300 | 27,400 | 27,500 |
Share-based compensation expense | 4,313 | 4,490 | 3,375 |
Changes in working capital, net of impact of acquisition: | |||
Net cash provided by operating activities | 40,182 | 27,669 | 37,960 |
Cash flows from investing activities | |||
Purchase of property and equipment | (21,901) | (21,492) | (9,395) |
Net cash used in investing activities | (21,721) | (21,345) | (9,191) |
Cash flows from financing activities | |||
Withholding tax on restricted stock units | (1,036) | (539) | (316) |
Proceeds from exercise of stock options and ESPP | 7,371 | 3,007 | 2,675 |
Payment for repurchase of common shares | (42,081) | (5,816) | (918) |
Principal payments on capital leases | (940) | (1,061) | (1,267) |
Net cash used in financing activities | (36,686) | (17,980) | (3,397) |
Net increase (decrease) in cash and cash equivalents | (18,311) | (11,703) | 25,382 |
Cash and cash equivalents at beginning of year | 106,085 | 117,788 | 92,406 |
Cash and cash equivalents at end of year | 87,774 | 106,085 | 117,788 |
Parent Company [Member] | |||
Cash flows from operating activities | |||
Net loss including noncontrolling interest | (3,032) | (7,763) | (3,104) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation | 545 | 587 | 366 |
Share-based compensation expense | 190 | 242 | 187 |
Equity in net loss of subsidiaries | 2,946 | 7,623 | 3,002 |
Changes in working capital, net of impact of acquisition: | |||
Accounts receivable - intercompany | 25,620 | 15,664 | (2,333) |
Other current assets | 23 | 26 | (124) |
Accounts payable and accrued liabilities | 174 | (101) | (191) |
Net cash provided by operating activities | 26,466 | 16,278 | (2,197) |
Cash flows from investing activities | |||
Purchase of property and equipment | (67) | (625) | (919) |
Net cash used in investing activities | (67) | (625) | (919) |
Cash flows from financing activities | |||
Withholding tax on restricted stock units | (1,036) | (539) | (316) |
Proceeds from exercise of stock options and ESPP | 7,371 | 3,007 | 2,675 |
Payment for repurchase of common shares | (42,080) | (5,816) | (918) |
Principal payments on capital leases | 0 | (95) | (281) |
Net cash used in financing activities | (35,745) | (3,443) | 1,160 |
Net increase (decrease) in cash and cash equivalents | (9,346) | 12,210 | (1,956) |
Cash and cash equivalents at beginning of year | 17,397 | 5,187 | 7,143 |
Cash and cash equivalents at end of year | $ 8,051 | $ 17,397 | $ 5,187 |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent Company (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule I - Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Restricted Net Assets Threshold for Condensed Parent Company Financial Statements, Percent Requirement | 25.00% |
Schedule II - Valuation and Q80
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | $ 30 | $ 30 | $ 752 |
Additions | 0 | 0 | 0 |
Reductions | 0 | 0 | (722) |
Balance | 30 | 30 | 30 |
Allowance for Price Adjustments [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | 19,438 | 14,563 | 13,152 |
Additions | 90,967 | 87,189 | 64,987 |
Reductions | (93,705) | (82,314) | (63,576) |
Balance | 16,700 | 19,438 | 14,563 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | 2,700 | 2,395 | 2,127 |
Additions | 194 | 305 | 268 |
Reductions | 0 | 0 | 0 |
Balance | $ 2,894 | $ 2,700 | $ 2,395 |