Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2014 |
Basis of Presentation and Significant Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies | ' |
2. Basis of Presentation and Significant Accounting Policies |
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The accompanying condensed consolidated financial statements as of March 31, 2014, and for the three and nine months ended March 31, 2014 and 2013 have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013. In the opinion of management, all adjustments (primarily consisting of normal recurring adjustments) considered necessary for a fair statement have been included. |
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The condensed consolidated balance sheet at June 30, 2013 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2013. The results of operations for the three and nine months ended March 31, 2014 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future periods. |
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Correction of Prior Period Error |
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Subsequent to the issuance of the condensed consolidated financial statements as of and for the three and nine months ended March 31, 2013, the Company determined that the $9.1 million payment of contingent purchase consideration associated with the M5 Networks, Inc. (“M5”) acquisition classified as investing activities in the condensed consolidated statements of cash flows for the nine months ended March 31, 2013 should have been classified as financing activities in the condensed consolidated statements of cash flows for the nine months ended March 31, 2013. Accordingly, the Company corrected the error for the nine months ended March 31, 2013 in the accompanying condensed consolidated financial statements. Net cash used in investing activities for the nine months ended March 31, 2013 originally reported of $14.2 million was corrected to $5.0 million. Net cash provided by financing activities for the nine months ended March 31, 2013 originally reported of $9.4 million was corrected to $0.3 million. The corrections did not affect the net cash provided by operating activities nor the net increase (decrease) in cash and cash equivalents. The Company will also correct the error for the year ended June 30, 2013 in the Company’s Annual Report on Form 10-K for the year ending June 30, 2014. The foregoing corrections are not considered material by the Company. |
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Computation of Net Loss per Share |
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Basic net loss per share is determined by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is determined by dividing net loss by the weighted average number of common shares used in the basic loss per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding under the treasury stock method. Dilutive securities of 8.3 million and 11.2 million shares were not included in the computation of diluted net loss per share for the three and nine months ended March 31, 2014 and 2013, respectively, because such securities were anti-dilutive. |
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Concentration of Credit Risk |
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Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, cash equivalents, short-term investments and accounts receivable. As of March 31, 2014, all of the Company’s cash, cash equivalents and short-term investments were managed by several financial institutions. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Accounts receivable from one value-added distributor accounted for 32% of total accounts receivable at March 31, 2014. At June 30, 2013 one value-added distributor accounted for 27% of the total accounts receivable. |
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Revenue Recognition |
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The Company’s revenue recognition policy from products and services of its premise and hosted segments is included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013. |
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Recent Accounting Pronouncements |
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| (a) | New Accounting Updates Recently Adopted |
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In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (ASU) No. 2011-11, Balance Sheet (Topic 210) - Disclosures about Offsetting Assets and Liabilities (ASU 2011-11), that requires an entity to disclose additional information about offsetting and related arrangements to enable users of the financial statements to understand the effect of those arrangements on the financial position. ASU 2011-11 was adopted by the Company beginning July 1, 2013. The adoption of ASU 2011-11 did not impact disclosures or the Company’s consolidated financial statements. |
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In June 2011, the FASB issued ASU No. 2011-5, Comprehensive Income (Topic 220) - Presentation of Comprehensive Income, which requires companies to present the total of comprehensive income (loss), the components of net income (loss), and the components of other comprehensive income (loss) either as a single continuous statement of comprehensive income (loss) or in two separate but consecutive statements. This update eliminates the option to present the components of other comprehensive income (loss) as part of the statement of changes in stockholders’ equity. In December 2011, the FASB deferred the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income (loss) to net income (loss) alongside their respective components of net income (loss) and other comprehensive income (loss). The deferred provision was adopted by the Company beginning July 1, 2013 and did not have an impact on the Company’s consolidated financial statements. |
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In July 2012, the FASB issued ASU No. 2012-2, Intangibles - Goodwill and Other (Topic 350) - Testing Goodwill for Impairment (ASU 2012-2), an accounting standard update intended to simplify how an entity tests indefinite-lived intangible assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. This accounting standard update was adopted by the Company beginning July 1, 2013 and did not have an impact on the Company's consolidated financial statements. |
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| (b) | Recent Accounting Standards or Updates Not Yet Effective |
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In March 2013, the FASB issued ASU No. 2013-5, Foreign Currency Matters (Topic 830) - an accounting standard update requiring an entity to release into net income the entire amount of a cumulative translation adjustment related to its investment in a foreign entity when as a parent it either sells a part or all of its investment in the foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within the foreign entity. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2015. The Company does not expect the adoption of this accounting standard will have a material impact on its consolidated financial statements. |
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In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) - an accounting standard update that provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. Under the new standard update, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, is to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2015 and applied prospectively with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. |