Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 27, 2015 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ShoreTel Inc | ||
Entity Central Index Key | 1,388,133 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 465.8 | ||
Entity Common Stock, Shares Outstanding | 65,327,141 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 82,162 | $ 53,472 |
Short-term investments | 8,025 | 2,673 |
Accounts receivable, net of allowances of $631 and $636 as of June 30, 2015 and 2014, respectively | 36,494 | 33,758 |
Inventories | 15,053 | 26,501 |
Indemnification asset | 0 | 5,606 |
Prepaid expenses and other current assets | 11,616 | 7,991 |
Total current assets | 153,350 | 130,001 |
Property and equipment - net | 20,419 | 19,601 |
Goodwill | 122,750 | 122,750 |
Intangible assets - net | 22,217 | 28,479 |
Other assets | 3,793 | 3,119 |
Total assets | 322,529 | 303,950 |
Current liabilities: | ||
Accounts payable | 16,452 | 16,975 |
Accrued liabilities and other | 19,374 | 13,399 |
Accrued employee compensation | 15,311 | 16,527 |
Accrued taxes and surcharges | 9,902 | 12,186 |
Deferred revenue | 49,624 | 46,937 |
Total current liabilities | 110,663 | 106,024 |
Long-term deferred revenue | 17,624 | 17,539 |
Other long-term liabilities | 4,014 | 2,994 |
Total liabilities | $ 132,301 | $ 126,557 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, par value $.001 per share, authorized 5,000 shares; none issued and outstanding | $ 0 | $ 0 |
Common stock and additional paid-in capital, par value $.001 per share, authorized 500,000; issued and outstanding, 65,055 and 62,824 shares as of June 30, 2015 and 2014, respectively | 361,691 | 344,546 |
Accumulated other comprehensive income | 4 | 1 |
Accumulated deficit | (171,467) | (167,154) |
Total stockholders' equity | 190,228 | 177,393 |
Total liabilities and stockholders' equity | $ 322,529 | $ 303,950 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Accounts receivable, allowances | $ 631 | $ 636 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000 | 5,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 500,000 | 500,000 |
Common stock, issued (in shares) | 65,055 | 62,824 |
Common stock, outstanding (in shares) | 65,055 | 62,824 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenue: | |||
Product | $ 181,272 | $ 184,952 | $ 186,190 |
Hosted and related services | 106,400 | 89,128 | 70,277 |
Support and services | 73,017 | 65,712 | 57,076 |
Total revenue | 360,689 | 339,792 | 313,543 |
Cost of revenue: | |||
Product | 63,253 | 65,470 | 63,941 |
Hosted and related services | 61,329 | 55,535 | 44,526 |
Support and services | 17,453 | 16,866 | 16,624 |
Total cost of revenue | 142,035 | 137,871 | 125,091 |
Gross profit | 218,654 | 201,921 | 188,452 |
Operating expenses: | |||
Research and development | 53,352 | 49,758 | 52,992 |
Sales and marketing | 118,931 | 110,977 | 120,222 |
General and administrative | 39,778 | 40,356 | 38,102 |
Settlements and defense fees | 8,475 | 0 | 0 |
Total operating expenses | 220,536 | 201,091 | 211,316 |
Income (loss) from operations | (1,882) | 830 | (22,864) |
Other income (expense): | |||
Interest expense | (531) | (643) | (1,722) |
Interest income and other (expense), net | (939) | (637) | (690) |
Total other income (expense) | (1,470) | (1,280) | (2,412) |
Loss before provision for income tax | (3,352) | (450) | (25,276) |
Provision for income taxes | 961 | 586 | 426 |
Net loss | $ (4,313) | $ (1,036) | $ (25,702) |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.07) | $ (0.02) | $ (0.44) |
Shares used in computing net loss per common share, basic and diluted (in shares) | 63,953 | 61,191 | 58,633 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Net loss | $ (4,313) | $ (1,036) | $ (25,702) |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on short-term investments | 3 | 3 | (4) |
Other comprehensive income (loss) | 3 | 3 | (4) |
Comprehensive loss | $ (4,310) | $ (1,033) | $ (25,706) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock and Additional Paid-In-Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
BALANCE at Jun. 30, 2012 | $ 310,646 | $ 2 | $ (140,416) | $ 170,232 |
BALANCE (in shares) at Jun. 30, 2012 | 58,057 | |||
Common stock issued under stock-based compensation plans, net of taxes paid | $ 1,009 | 1,009 | ||
Common stock issued under stock-based compensation plans, net of taxes paid (in shares) | 1,111 | |||
Stock-based compensation expense | $ 10,605 | 10,605 | ||
Fair value of escrow settlement modification | 0 | |||
Unrealized gain (loss) on short-term investments, net | (4) | (4) | ||
Net loss | (25,702) | (25,702) | ||
BALANCE at Jun. 30, 2013 | $ 322,260 | (2) | (166,118) | 156,140 |
BALANCE (in shares) at Jun. 30, 2013 | 59,168 | |||
Common stock issued under stock-based compensation plans, net of taxes paid | $ 14,970 | 14,970 | ||
Common stock issued under stock-based compensation plans, net of taxes paid (in shares) | 3,656 | |||
Stock-based compensation expense | $ 7,316 | 7,316 | ||
Fair value of escrow settlement modification | 0 | |||
Unrealized gain (loss) on short-term investments, net | 3 | 3 | ||
Net loss | (1,036) | (1,036) | ||
BALANCE at Jun. 30, 2014 | $ 344,546 | 1 | (167,154) | $ 177,393 |
BALANCE (in shares) at Jun. 30, 2014 | 62,824 | 62,824 | ||
Common stock issued under stock-based compensation plans, net of taxes paid | $ 8,068 | $ 8,068 | ||
Common stock issued under stock-based compensation plans, net of taxes paid (in shares) | 2,231 | |||
Stock-based compensation expense | $ 8,413 | 8,413 | ||
Fair value of escrow settlement modification | 664 | 664 | ||
Unrealized gain (loss) on short-term investments, net | 3 | 3 | ||
Net loss | (4,313) | (4,313) | ||
BALANCE at Jun. 30, 2015 | $ 361,691 | $ 4 | $ (171,467) | $ 190,228 |
BALANCE (in shares) at Jun. 30, 2015 | 65,055 | 65,055 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (4,313) | $ (1,036) | $ (25,702) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 19,072 | 18,286 | 15,816 |
Amortization of premium on investments | 120 | 114 | 191 |
Stock-based compensation expense | 8,413 | 7,316 | 10,605 |
Loss on disposal of property and equipment and other assets | 97 | 466 | 95 |
Provision for doubtful accounts receivable | 182 | 200 | 140 |
Change in fair value of purchase consideration | 0 | 111 | 874 |
Impairment of indemnification asset | 3,584 | 0 | 0 |
Fair value of escrow settlement modification | 664 | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (2,918) | 3,160 | (3,060) |
Inventories | 11,413 | (7,536) | 1,557 |
Indemnification asset | 2,022 | 671 | 293 |
Prepaid expenses and other current assets | (3,607) | (1,574) | (942) |
Other assets | 252 | 176 | (356) |
Accounts payable | (795) | 6,209 | 307 |
Accrued liabilities and other | 7,687 | (4,097) | 1,371 |
Accrued employee compensation | (1,216) | 3,368 | 1,008 |
Accrued taxes and surcharges | (2,284) | 874 | 3,460 |
Purchase consideration | 0 | (320) | (868) |
Deferred revenue | 2,772 | 9,490 | 5,474 |
Net cash provided by operating activities | 41,145 | 35,878 | 10,263 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (11,393) | (11,689) | (11,541) |
Purchases of investments | (12,176) | (923) | (11,210) |
Proceeds from sale/maturities of investments | 5,757 | 5,640 | 21,889 |
Purchase of software licenses, patents and other intangible assets | (1,692) | 0 | (2,321) |
Net cash used in investing activities | (19,504) | (6,972) | (3,183) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 9,294 | 15,832 | 1,901 |
Taxes paid on vested and released stock awards | (1,226) | (862) | (892) |
Borrowings from line of credit | 0 | 0 | 25,982 |
Payments made under the line of credit | 0 | (29,332) | (17,008) |
Payments made under capital leases | (393) | (1,479) | (1,276) |
Debt issuance costs | (626) | 0 | 0 |
Payments of contingent consideration related to prior business combination | 0 | (3,368) | (9,132) |
Net cash provided by (used in) financing activities | 7,049 | (19,209) | (425) |
Net increase in cash and cash equivalents | 28,690 | 9,697 | 6,655 |
Cash and cash equivalents at beginning of year | 53,472 | 43,775 | 37,120 |
Cash and cash equivalents at end of year | 82,162 | 53,472 | 43,775 |
Supplemental cash flow disclosure: | |||
Cash paid for interest | 298 | 462 | 949 |
Cash paid for income taxes | 885 | 894 | 283 |
Noncash financing and investing activities: | |||
Property and equipment acquired on capital lease | 0 | 144 | 379 |
Purchase of patents included in period-end liabilities | 333 | 160 | 0 |
Unpaid portion of property and equipment purchases included in period-end accounts payable | $ 1,318 | $ 1,032 | $ 20 |
THE COMPANY AND SIGNIFICANT ACC
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2015 | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | 1. THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES The Company - ShoreTel, Inc. was incorporated in California on September 17, 1996 and reincorporated in Delaware on June 22, 2007. ShoreTel, Inc. and its subsidiaries (referred herein as “the Company”) Fiscal Year End Principles of Consolidation - Use of Estimates Concentration of Credit Risk Fair Value of Financial Instruments - Cash and Cash Equivalents Investments The Company recognizes an impairment charge when a decline in the fair value of its investments is considered to be other-than-temporary. An impairment is considered other-than-temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of its entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost of the security. If an impairment is considered other-than-temporary based on (i) or (ii) described above, the entire difference between the amortized cost and the fair value of the security is recognized in earnings. If an impairment is considered other-than-temporary based on condition (iii), the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security, will be recognized in earnings and the amount relating to all other factors will be recognized in other comprehensive income (“OCI”). In estimating the amount and timing of cash flows expected to be collected, the Company considers all available information including past events, current conditions, the remaining payment terms of the security, the financial condition of the issuer, expected defaults, and the value of underlying collateral. Allowance for Doubtful Accounts - The change in allowance for doubtful accounts is summarized as follows (in thousands): June 30, 2015 2014 2013 Allowance for doubtful accounts - beginning $ 636 $ 639 $ 774 Current period provision 182 200 140 Write-offs charged to allowance, net of recoveries (187 ) (203 ) (275 ) Allowance for doubtful accounts - ending $ 631 $ 636 $ 639 Inventories Property and Equipment Goodwill and Purchased-Intangible Assets Purchased-intangible assets are amortized on a straight-line basis over the periods of benefit, ranging from two to eight years. The Company performs a review of purchased-intangible assets whenever events or changes in circumstances indicate that the useful life is shorter than it had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, the Company assesses the recoverability of purchased-intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life of the asset is shorter than originally estimated, the Company accelerates the rate of amortization and amortizes the remaining carrying value over the new shorter useful life. There was no impairment of purchased-intangible assets identified in the fiscal years ended June 30, 2015, 2014 and 2013. Long-Lived Assets Revenue Recognition When a sales arrangement contains multiple elements, such as hardware and software products and/or services, we allocate revenue to each element based on relative selling prices. The relative selling price is determined using vendor specific objective evidence of fair value (“VSOE”) when available. When VSOE cannot be established, the Company attempts to determine the third party evidence of selling price (“TPE”) for the deliverables. TPE is determined based on competitor prices for similar deliverables when sold separately by the competitors. Generally our product offerings differ from those of our competitors and comparable pricing of our competitors is often not available. Therefore, we are typically not able to determine TPE. When we are unable to establish selling price using VSOE or TPE, we use estimated selling prices (“ESP”) in our allocation of arrangement fees. The ESP for a deliverable is determined as the price at which we would transact if the products or services were sold on a stand-alone basis. Product and Support and Services Revenues: The sale of IP telecommunication systems include hardware, primarily phones and voice switches, software components and may also include training, installation and post-contractual support for the products. The Company’s business strategy is centered on selling to enterprise customers through channel partners rather than directly. Channel partners include resellers as well as value-added distributors who in turn sell to the resellers. Sales to value-added distributors allow the Company to leverage its existing distribution infrastructure and sales personnel. The typical system includes a combination of IP phones, switches and UC software applications. For sales transactions made both direct and to resellers revenue is recognized at the time of shipment provided that all the provisions of revenue recognition have been met. For sales to value-added distributors, revenue is initially deferred and is recognized at the time of sale by the distributor to their customer, provided all the provisions of revenue recognition have been met. The Company refers to this distribution approach as its two-tier distribution model and the recognition of revenue at the time of sale by the distributor as the sell through method. The Company recognizes revenue when persuasive evidence of an arrangement exists, product has shipped or delivery has occurred (depending on when title passes), the sales price is fixed or determinable and free of contingencies and significant uncertainties, and collection is probable. The fee is considered fixed or determinable at the execution of an agreement, based on specific products and quantities to be delivered at specified prices. The agreements with reseller partners generally do not include rights of return or acceptance provisions. Even though substantially all of the contractual agreements do not provide return privileges, there are circumstances for which the Company will accept a return. The Company maintains a reserve for such returns based on historical experience with reseller partners. The agreements with the Company’s value-added distributors allow for limited rights of return of products generally purchased within the previous 90 days. In addition to such return rights, the Company generally offers price protection provisions to its distributors when there is a permanent reduction of its sales prices. In such cases, the Company is obligated to grant the distributor a credit for the difference between the change in the aggregate price of any amounts that have been purchased but unsold by the distributor as of the effective date of such decrease. In addition, certain of the Company’s distributors stock phones and switches and purchase licenses only upon sale to a value added reseller or end customer. Revenue is deferred for distributors until the distributor sells the hardware and license to their customer. To the extent that the Company’s agreements contain acceptance terms, the Company recognizes revenue upon product acceptance, unless the acceptance provision is deemed to be perfunctory. Payment terms to customers generally range from net 30 to net 60 days. In the event payment terms are extended materially from the Company’s standard business practices, the fees are deemed to not be fixed or determinable and revenue is recognized when the payment becomes due. The Company assesses the ability to collect from its customers based on a number of factors, including credit worthiness and past transaction history of the customer. If the customer is not deemed credit worthy, the Company defers all revenue from the arrangement until payment is received and all other revenue recognition criteria have been met. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of product revenue. Provisions for return allowances are recorded at the time revenue is recognized based on the Company’s historical experience. The provision for return allowances is recorded as a reduction to revenues on the statement of operations and is included as a reduction to accounts receivable on the balance sheet. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from the Company’s transactions and are recognized as the revenue recognition criteria are met. Nearly all of the Company’s system sales include the purchase of post-contractual support contracts with terms of up to five years, and the renewal rates on these contracts have been high historically. The Company recognizes support revenue on a ratable basis over the term of the support contract. Since the Company receives payment for support in advance of recognizing the related revenue, the Company carries a deferred revenue balance on the consolidated balance sheet. Most of the products and services included in a premise-based system qualify as separate units of accounting. Many of the Company’s products have both software and non-software components that function together to deliver the essential functionality of the integrated system product. The Company analyzes all of its software and non-software products and services and considers the features and functionalities of the individual elements and the stand alone sales of those individual components among other factors, to determine which elements are essential or non-essential to the overall functionality of the integrated system product. The Company recognizes revenue related to installation services and training upon delivery of the service. The Company’s core software, which we refer to as “essential software,” is integrated with hardware and is essential to the functionality of the integrated system product. The Company also sells additional software which provides increased features and functions, but is not essential to the overall functionality of the integrated system products, which we refer to as “non-essential software.” At the initial purchase, the customer generally bundles together the hardware, essential software, non-essential software, as needed, and up to five years of post-contractual support. Thereafter, if the enterprise customer increases its end users and system functionality, it may add more hardware, both essential and non-essential software components, and related post-contractual support by purchasing them separately. The revenue for these multiple element arrangements is allocated to the non-essential software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the accounting guidance. The non-essential software deliverables included in a multiple element arrangement are subject to the industry specific software revenue recognition guidance. As the Company has not been able to obtain VSOE for all of the non-essential software deliverables in the arrangement, revenue allocated to the delivered non-essential software elements is recognized using the residual method in accordance with industry specific software revenue recognition guidance. Under the residual method, the amount of revenue recognized for the delivered non-essential software elements equaled the total allocated consideration less the VSOE of any undelivered elements bundled with such non-essential software elements. The Company has been able to establish VSOE for its professional and post contractual support services mainly based on the volume and the pricing of the stand-alone sales for these services within a narrow range. The Company establishes its ESP for products by considering factors including, but not limited to, geographies, customer segments and pricing practices. The determination of ESP is made through consultation with and formal approval by the Company’s management. The Company regularly reviews VSOE, TPE and ESP and maintains internal controls over the establishment and updates of these estimates. Hosted and Related Services Revenues: The Company’s hosted and related services and solutions consist primarily of our proprietary hosted voice over Internet Protocol (“VoIP”) UC system as well as other services such as foreign and domestic calling plans, certain UC applications, internet service provisioning, training and other professional services. Additionally, the Company offers their customers the ability to purchase phones from them directly or rent such phones as part of their service agreements. The customers are not required to purchase phones from the Company directly as they can independently purchase such equipment. Customers typically enter into a 12 month service agreement whereby they are billed for such services on a monthly basis. Monthly recurring hosted services are recognized on a straight line basis in the period when the service is delivered. The installation fees are recognized based on customer contractual period or on a straight-line basis over the estimated customer life. The Company bills most of the monthly recurring hosted service revenue a month in advance. Any amounts billed and collected, but for which the service is not yet delivered, are included in deferred revenue. These amounts are recognized as revenues only when the service is delivered. The Company maintains a reserve for credits provided to customers for outages, quality issues, billing disputes or changes in the service levels that are included in the amounts that were billed in advance. The reserve for such credits is based on historical experiences and trends. The Company also maintains a reserve for amounts that are deemed as uncollectible. Channel Partner Programs and Incentives - The Company records estimated reductions to revenues for channel partner programs and incentive offerings including special pricing agreements, promotions and other volume-based incentives. The Company also accrues for co-op marketing funds as a marketing expense if the Company receives an identifiable benefit in exchange and can reasonably estimate the fair value of the identifiable benefit received; otherwise, it is recorded as a reduction to revenues. Warranties Research and Development Costs Income and Telecom Taxes As a provid Consolidated Statements of Operations Consolidated Balance Sheets. Stock-Based Compensation th The following table shows total stock-based compensation expense included in the accompanying Consolidated Statements of Operations for the years ended June 30, 2015, 2014 and 2013 (in thousands): Year Ended June 30, 2015 2014 2013 Cost of product revenue $ 74 $ 69 $ 110 Cost of hosted and related services revenue 1,215 626 188 Cost of support and services revenue 497 569 760 Research and development 1,928 1,704 2,789 Sales and marketing 2,391 1,996 2,921 General and administrative 2,308 2,352 3,837 Total stock-based compensation expense $ 8,413 $ 7,316 $ 10,605 Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Recent Accounting Pronouncements (a) New Accounting Updates Recently Adopted In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-5, Foreign Currency Matters (Topic 830) In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Topic 835-30) (b) Recent Accounting Standards or Updates Not Yet Effective In May 2014, the FASB issued ASU No. 2014-9 Revenue from Contracts with Customers (Topic 606) Topic 605, Revenue Recognition Revenue from Contracts with Customers (Topic 606) Deferral of Effective Date In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Jun. 30, 2015 | |
BALANCE SHEET COMPONENTS [Abstract] | |
BALANCE SHEET COMPONENTS | 2. BALANCE SHEET COMPONENTS Balance sheet components consisted of the following: As of June 30, 2015 2014 (Amounts in thousands) Inventories: Raw materials $ 92 $ 120 Distributor inventory 965 1,535 Finished goods 13,996 24,846 Total inventories $ 15,053 $ 26,501 Property and equipment: Computer equipment and tooling $ 41,532 $ 33,286 Software 5,211 4,077 Furniture and fixtures 3,421 3,331 Leasehold improvements & others 8,149 6,554 Total property and equipment 58,313 47,248 Less accumulated depreciation and amortization (37,894 ) (27,647 ) Property and equipment – net $ 20,419 $ 19,601 Deferred revenue: Product $ 2,912 $ 6,281 Support and services 57,967 53,290 Hosted and related services 6,369 4,905 Total deferred revenue $ 67,248 $ 64,476 Depreciation expense for the years ended June 30, 2015, 2014 and 2013 was $10.6 million, $8.4 million and $6.2 million, respectively. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Jun. 30, 2015 | |
SHORT-TERM INVESTMENTS [Abstract] | |
SHORT-TERM INVESTMENTS | 3. SHORT-TERM INVESTMENTS The following is a summary of the Company’s short-term investments (in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate notes and commercial paper $ 8,021 $ 4 $ - $ 8,025 Total short-term investments $ 8,021 $ 4 $ - $ 8,025 June 30, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate notes and commercial paper $ 2,672 $ 1 $ - $ 2,673 Total short-term investments $ 2,672 $ 1 $ - $ 2,673 The following table summarizes the maturities of the Company’s short-term investments by contractual maturity (in thousands): June 30, 2015 Amortized Cost Fair Value Less than 1 year $ 6,696 $ 6,702 Due in 1 to 3 years 1,325 1,323 $ 8,021 $ 8,025 June 30, 2014 Amortized Cost Fair Value Less than 1 year $ 2,672 $ 2,673 $ 2,672 $ 2,673 Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2015 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 4. GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of tangible and intangible assets acquired. Goodwill amounts are not amortized. The carrying value of goodwill was $122.8 million as of June 30, 2015, 2014 and 2013. Intangible assets The following is a summary of the Company’s intangible assets (in thousands): June 30, 2015 June 30, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 4,446 $ (3,640 ) $ 806 $ 3,970 $ (3,185 ) $ 785 Technology 26,644 (18,874 ) 7,770 26,644 (14,486 ) 12,158 Customer relationships 23,300 (11,049 ) 12,251 23,300 (7,764 ) 15,536 Intangible assets in process and other 1,390 - 1,390 - - - Intangible assets $ 55,780 $ (33,563 ) $ 22,217 $ 53,914 $ (25,435 ) $ 28,479 The intangible assets are being amortized over useful lives ranging from 2 years to 8 years. Amortization of intangible assets for the years ended June 30, 2015, 2014 and 2013 was $8.1 million, $9.8 million and $9.5 million, respectively. The estimated future amortization expenses for intangible assets, excluding intangible assets in process and other, for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2016 $ 7,532 2017 6,042 2018 4,047 2019 2,910 2020 296 Thereafter - Total $ 20,827 |
FAIR VALUE DISCLOSURE
FAIR VALUE DISCLOSURE | 12 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE DISCLOSURE [Abstract] | |
FAIR VALUE DISCLOSURE | 5. FAIR VALUE DISCLOSURE Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. Further, entities are required to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: · Level 1 — Quoted prices in active markets for identical assets or liabilities. · Level 2 — Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means. · Level 3 — Unobservable inputs that are supported by little or no market activity, are significant to the fair value of the assets or liabilities, and reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The tables below set forth the Company’s cash equivalents and short-term investments measured at fair value on a recurring basis (in thousands): June 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 4,025 $ 4,025 $ - $ - Short-term investments: Corporate notes and commercial paper 8,025 - 8,025 - Total assets measured and recorded at fair value $ 12,050 $ 4,025 $ 8,025 $ - The above table excludes $78.1 million of cash balances on deposit at banks. June 30, 2014 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 11,011 $ 11,011 $ - $ - Short-term investments: Corporate notes and commercial paper 2,673 - 2,673 - Total assets measured and recorded at fair value $ 13,684 $ 11,011 $ 2,673 $ - The above table excludes $42.5 million of cash balances on deposit at banks. There were foreign exchange forward contracts (see Note 13) outstanding as of June 30, 2015 and 2014 which were entered into by the Company on the last day of the period. This fair value is not material. Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. Short-term investments are classified within Level 2 of the fair value hierarchy because they are valued based on other observable inputs, including broker or dealer quotations, or alternative pricing sources. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from independent pricing services. Non-binding quotes are based on proprietary valuation models prepared by independent pricing services. These models use algorithms based on inputs such as observable market data, quoted market prices for similar instruments, historical pricing trends of a security as relative to its peers, internal assumptions of the independent pricing service and statistically supported models. The Company corroborates the reasonableness of non-binding quotes received from the independent pricing service by comparing them to the (a) actual experience gained from the purchases and redemption of investment securities, (b) quotes received on similar securities obtained when purchasing securities and (c) monitoring changes in ratings of similar securities and the related impact on the fair value. The types of instruments valued based on other observable inputs include corporate notes and commercial paper. We reviewed our financial and non-financial assets and liabilities for the years ended June 30, 2015 and 2014 and concluded that there were no material impairment charges during each of these years. The Company reviews the fair value hierarchy on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels of certain securities within the fair value hierarchy. The Company recognizes transfers into and out of levels within the fair value hierarchy as of the date in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between levels of the fair value hierarchy for any of the periods presented The purchase consideration for the Company’s acquisition of M5 included a contingent portion ranging from zero to $13.7 million and was subject to the achievement of certain revenue targets. As these revenue targets were met in full on December 31, 2012, the Company paid $10.0 million in March 2013 and paid the full remaining $3.7 million in January 2014. The change in the fair value of the purchase consideration liability is as follows (in thousands): Fair Value As of June 30, 2013 $ 3,577 Add: Adjustment to purchase consideration 111 Less: Payment of purchase consideration (3,688 ) As of June 30, 2014 $ - There was no activity in the purchase consideration liability during fiscal 2015. Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis Non-financial assets such as goodwill, intangible assets, and property, plant, and equipment are evaluated for impairment and adjusted to fair value using Level 3 inputs, only when an impairment is recognized. Fair values are considered Level 3 when management makes significant assumptions in developing a discounted cash flow model based upon a number of considerations including projections of revenues, earnings and a discount rate. In addition, in evaluating the fair value of goodwill impairment, further corroboration is obtained using our market capitalization. There was no impairment recorded in the years ended June 30, 2015, 2014 and 2013. |
LINE OF CREDIT
LINE OF CREDIT | 12 Months Ended |
Jun. 30, 2015 | |
LINE OF CREDIT [Abstract] | |
LINE OF CREDIT | 6. LINE OF CREDIT On October 22, 2014 the Company entered into an Amended and Restated Credit Agreement (“New Credit Facility”). The New Credit Facility was amended on December 1, 2014 and again on August 5, 2015. The New Credit Facility contains customary affirmative and negative covenants, including compliance with financial ratios and metrics. The New Credit Facility and the related amendment requires the Company to maintain a minimum ratio of liquidity to its indebtedness (each as defined in the New Credit Facility) and varying amounts of Liquidity and Consolidated EBITDA specified in the New Credit Facility throughout the term of the agreement. The Company was in compliance with all such covenants as of June 30, 2015. As of June 30, 2015, no amounts were outstanding under the Credit Facility. The Company amortizes deferred financing costs to interest expense on a straight-line basis over the term of the debt. |
NET LOSS PER COMMON SHARE
NET LOSS PER COMMON SHARE | 12 Months Ended |
Jun. 30, 2015 | |
NET LOSS PER COMMON SHARE [Abstract] | |
NET LOSS PER COMMON SHARE | 7. NET LOSS PER COMMON SHARE 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 common share is determined by dividing net loss by the weighted average number of common shares used in the basic net loss per common 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. The following table is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per common share (in thousands other than per share amounts): Year Ended June 30, 2015 2014 2013 Numerator: Net loss $ (4,313 ) $ (1,036 ) $ (25,702 ) Denominator: Weighted average common shares outstanding (basic and diluted) 63,953 61,191 58,633 Net loss per share Basic and diluted $ (0.07 ) $ (0.02 ) $ (0.44 ) Anti-dilutive weighted shares related to stock-based options and awards excluded from the calculation of diluted shares were approximately 2.2 million, 2.3 million, and 8.9 million for the years ended June 30, 2015, 2014 and 2013 respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 8. INCOME TAXES The components of loss before income taxes consist of the following (in thousands): Year Ended June 30, 2015 2014 2013 Domestic $ (4,325 ) $ (993 ) $ (25,568 ) Foreign 973 543 292 Total $ (3,352 ) $ (450 ) $ (25,276 ) The provision for income taxes consists of the following (in thousands): Year Ended June 30, 2015 2014 2013 Current: Federal $ 159 $ 74 $ - State 528 336 175 Foreign 299 166 108 Total current income tax 986 576 283 Deferred: Federal - - - State - - 135 Foreign (25 ) 10 8 Total deferred income tax (25 ) 10 143 Provision for income taxes $ 961 $ 586 $ 426 The difference between the provision for (benefit from) income taxes and the amount computed by applying the federal statutory income tax rate to loss before benefit from income tax is as follows (in thousands): Year Ended June 30, 2015 2014 2013 Benefit from income tax at federal statutory rate $ (1,140 ) $ (153 ) $ (8,593 ) Non deductible expenses 442 339 400 Federal Alternative Minimum Tax 159 166 - Stock-based compensation 314 84 203 Fair value of escrow settlement modification 225 - - Credits (574 ) (590 ) (695 ) State taxes 528 337 181 Other (56 ) (102 ) 145 Increase in valuation allowance 1,063 505 8,785 Total $ 961 $ 586 $ 426 Significant components of deferred tax assets consist of the following (in thousands): June 30, 2015 2014 Deferred Tax Assets Net operating loss carryforwards $ 26,990 $ 30,356 Tax credit carryforwards 17,176 15,287 Stock compensation 12,105 12,878 Other 14,309 12,534 Gross deferred tax assets 70,580 71,055 Valuation allowance (66,213 ) (64,080 ) Total deferred tax assets 4,367 6,975 Deferred Tax Liabilities Acquistion intangibles (4,282 ) (6,915 ) Total deferred tax liabilities (4,282 ) (6,915 ) Total net deferred tax assets $ 85 $ 60 During the year ended June 30, 2015, the decrease in the Company’s deferred tax assets of $0.5 million was primarily due to the utilization of gross net operating losses, partially offset by an increase in tax credit carryforwards. In addition, the decrease in the Company’s total deferred tax liabilities of $2.6 million was due to the amortization of the identifiable intangible property determined in the M5 acquisition. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will be realized. The realization of deferred tax assets is based on several factors, such as the Company’s history of past earnings, the scheduling of deferred tax liabilities and projected future income from operating activities. Except as noted below, as of June 30, 2015, management does not believe it is more likely than not that the net U.S. federal and state deferred tax assets are realizable. The Company intends to maintain the valuation allowance on its net deferred tax assets until sufficient positive evidence exists to support reversal of some or all of the allowance. The Company’s future income tax expense (benefit) will be affected in the event changes to the valuation allowance are required. The Company had federal net operating loss carryforwards of approximately $85.0 million as of June 30, 2015, which expire at various dates between 2023 and 2033. These net operating loss carryforwards include the effects of a favorable tax ruling determined under Section 382 by the Internal Revenue Service in March 2010 as well as federal net operating loss carryforwards available from the Agito Networks, Inc. (“Agito”) and M5 acquisitions. The Company has not completed Section 382 studies for net operating losses incurred in the years subsequent to July 2007. Upon the completion of these studies, the amount of net operating losses available for utilization may be limited. Included in the net operating loss carryforward is approximately $9.4 million (pretax) of net operating loss attributable to excess stock option deductions. The related tax benefit of $3.2 million, if realized, will be recorded as additional paid-in capital. Including the net operating loss carryforwards available from the Agito and M5 acquisitions, the Company had California and other state net operating loss carryforwards of approximately $13.5 million and $5.8 million, respectively, which expire at various dates between fiscal 2015 and 2034. As of June 30, 2015, the Company had Federal and California tax credit carryforwards of $12.6 million and $14.9 million, respectively. The federal tax credit carry forwards expire at various dates between 2023 and 2035. The California tax credits may be carried forward indefinitely. We have not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries because The “American Taxpayer Relief Act of 2012” (the “2012 Tax Act”) was enacted in January 2013. The 2012 Tax Act extended certain tax provisions that had previously expired under the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” (the “2010 Tax Act”). The Tax Increase Prevention Act of 2014 extended the Research and Development (“R&D”) credit for qualifying activities through December 31, 2014 and also extended the 50% bonus depreciation provisions on property acquired through December 31, 2014. The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available, including changes in tax regulations, the outcome of relevant court cases, and other pertinent information. As of June 30, 2015, 2014 and 2013, the Company's total amount of unrecognized tax benefit was approximately $5.1 million, $4.2 million and $4.1 million, respectively. The aggregate annual changes in the balance of gross unrecognized tax benefits are as follows (in thousands): Year Ended June 30, 2015 2014 2013 Beginning balance $ 4,165 $ 4,060 $ 3,576 Decrease in tax positions for prior years - (471 ) (22 ) Increase in tax positions for current year 900 576 506 Ending balance $ 5,065 $ 4,165 $ 4,060 As of June 30, 2015, the Company's total amount of unrecognized tax benefit was approximately $5.1 million; there would be no impact to the effective tax rate if these tax benefits were recognized while the Company maintains a full valuation allowance. The Company does not expect its unrecognized tax benefits to change materially over the next 12 months. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for taxes on the consolidated statements of operations. While management believes that the Company has adequately provided for all tax positions, amounts asserted by tax authorities could be greater or less than the recorded position. Accordingly, the Company’s provisions on federal, state and foreign tax-related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved. The Company’s primary tax jurisdiction is the United States. For federal and state tax purposes, the years 2002 through 2014 remain open and subject to tax examination by the appropriate federal or state taxing authorities. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Jun. 30, 2015 | |
COMMON STOCK [Abstract] | |
COMMON STOCK | 9. COMMON STOCK Common Shares Reserved for Issuance At June 30, 2015, the Company had reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 19,231 Reserved under employee stock purchase plan 722 Total 19,953 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2015 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
EMPLOYEE BENEFIT PLANS | 10. EMPLOYEE BENEFIT PLANS Equity Stock Incentive Plans The Company grants nonqualified (“NSO”) and incentive stock options (“ISOs”), restricted stock awards, and restricted stock units to officers, directors, employees and consultants under the 2007 Equity Incentive Plan (“2007 Plan”), which is the successor to the 1997 Plan. The 2007 Plan, provides for the granting of ISOs and NSOs for over a period not to exceed ten years and at exercise prices that are not less than 100% and 85%, respectively, of the estimated fair market value of the Company’s common stock on the date of grant as determined by the Board of Directors. Stock options issued under the 2007 Plan generally vest 25% at one year and then 1/36 th The 2007 Plan provides for automatic annual increases of shares available for issuance of up to 5% of the number of common shares then outstanding. In fiscal 2015 and 2014, the Board of Directors increased the number of shares authorized and available for issuance under the 2007 Plan by 3.2 million and 3.1 million shares, respectively, pursuant to the automatic increase provision. As of June 30, 2015, the Company had 11.5 million shares of common stock available for future issuance under the 2007 Plan. The following table summarizes the Company’s stock option activities for the fiscal year ended June 30, 2015 (in thousands, except per share amounts): Shares Subject to Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance at July 1, 2014 6,324 $ 5.37 Options granted 1,413 $ 6.69 Options exercised (1,110 ) $ 4.63 Options cancelled/forfeited (364 ) $ 6.68 Balance at June 30, 2015 6,263 $ 5.72 6.20 $ 8,620 Options exercisable at June 30, 2015 3,745 $ 5.66 4.67 $ 5,960 Vested and expected to vest at June 30, 2015 5,442 $ 5.68 5.84 $ 7,866 The weighted-average grant-date fair value of options granted during the years ended June 30, 2015, 2014, and 2013 was $3.02, $2.86, and $2.46, respectively. The total intrinsic value of options exercised in the years ended June 30, 2015, 2014, and 2013 was $3.2 million, $7.3 million, and $0.3 million, respectively, and represents the difference between the fair value of the Company’s common stock at the dates of exercise and the exercise price of the options. The following table summarizes information about outstanding and exercisable options at June 30, 2015 (in thousands, except years and exercise prices): Options Outstanding Options Exercisable Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $0.40 – 4.25 769 6.12 $ 3.79 467 $ 3.61 $4.31 720 7.72 4.31 400 4.31 $4.35 – 4.80 634 6.84 4.53 436 4.54 $4.82 676 0.61 4.82 677 4.82 $4.93 - 5.15 722 6.22 5.11 472 5.08 $5.25 - 6.50 560 4.80 6.00 460 5.95 $6.61 643 9.13 6.61 - - $6.62 - 7.41 649 8.60 6.82 90 6.90 $7.51 - 8.79 663 6.54 8.24 516 8.33 $9.00 – 13.73 227 3.87 10.93 227 10.93 Total Outstanding 6,263 6.20 $ 5.72 3,745 $ 5.66 Stock-based Compensation The Company estimates the fair value of stock options using the Black-Scholes option-pricing model, which requires the use of the following assumptions: (i) the expected volatility of the Company’s common stock, which is based on a blended rate of the Company’s own common stock volatility and the volatility data of certain peer companies; (ii) the expected term which is the period that the Company’s stock-based awards are expected to be outstanding based on Company’s actual historic grant, exercise, and post-vesting forfeiture data; (iii) an expected dividend yield, which is assumed to be 0% as the Company has not paid and, as of the date of grant, did not anticipate paying dividends in the foreseeable future; and (iv) a risk-free interest rate, which is based on the U.S. Treasury yield curve in effect on the date of grant for zero coupon U.S. Treasury notes with maturities approximately equal to expected term of the option award. The fair value of each option is estimated on the date of grant using the Black-Scholes option valuation method, with the following assumptions: Year Ended June 30, 2015 2014 2013 Expected life from grant date of option 5.04-5.09 years 4.98-5.44 years 5.32-5.48 years Risk-free interest rate 1.45-1.70 % 1.44-1.66 % 0.67-0.91 % Expected volatility 49-50 % 51-66 % 68-69 % Expected dividend yield 0 % 0 % 0 % As of June 30, 2015 total unrecognized compensation cost related to stock options granted to employees and non-employee directors was $2.7 million, net of estimated forfeitures, which the Company expects to recognize over 2.5 years. Employee Stock Purchase Plan On September 18, 2007, the Board of Directors approved the commencement of offering periods under a previously-approved employee stock purchase plan (the “ESPP”) which was further amended in November 2010. The ESPP allows eligible employees to purchase shares of the Company's common stock at a discount through payroll deductions. The ESPP consists of six-month offering periods commencing on May 1st and November 1st each year. Under the ESPP, employees purchase shares of the Company's common stock at 85% of the market value at either the beginning of the offering period or the end of the offering period, whichever price is lower. In February of fiscal 2015 and 2014, pursuant to the automatic increase provisions of the ESPP, the Company’s Board of Directors approved increases to the number of shares authorized and reserved for issuance under the ESPP by 641,464 shares and 611,987 shares, respectively. The fair value of stock purchase rights granted under the ESPP is estimated using the Black-Scholes option pricing model, based on the following assumptions: Year Ended June 30, 2015 2014 2013 Expected life from grant date of ESPP 0.50 years 0.50 years 0.50 years Risk-free interest rate 0.06-0.09 % 0.06-0.10 % 0.09-0.15 % Expected volatility 35-43 % 43-48 % 42-57 % Expected dividend yield 0 % 0 % 0 % Expenses related to shares issued under the ESPP are included in stock-based compensation expense. The Company issued 670,329 shares and 370,665 shares under the ESPP in fiscal 2015 and 2014, respectively, at a weighted average price per share of $6.19 and $4.82, respectively. As of June 30, 2015, total unrecognized compensation cost related to the ESPP plan was $0.5 million, which the Company expects to recognize over 0.5 years. Restricted Stock Awards and Restricted Stock Units Restricted stock award and restricted stock unit activity for the year ended June 30, 2015 is as follows (in thousands): Shares Weighted- Average Grant Date Fair Value Outstanding - July 1, 2014 1,394 $ 5.38 Awarded 917 6.80 Released (629 ) 5.68 Forfeited (230 ) 5.85 Outstanding - June 30, 2015 1,452 $ 6.07 The weighted average grant-date fair value of restricted stock units granted during fiscal 2015, 2014 and 2013 was $5.8 million, $4.5 million and $3.0 million, respectively. As permitted under the 2007 Plan, in fiscal 2015, the Company issued 62,979 shares of restricted stock awards, with a fair value of $0.4 million, to non-employee directors electing to receive them in lieu of an annual cash retainer. These shares were issued quarterly and vest immediately upon issuance. As of June 30, 2015, total unrecognized compensation cost related to restricted stock awards and units awarded to employees and directors was $2.5 million, net of estimated forfeitures, which the Company expects to recognize over 2.4 years. |
LITIGATION, COMMITMENTS AND CON
LITIGATION, COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2015 | |
LITIGATION, COMMITMENTS AND CONTINGENCIES [Abstract] | |
LITIGATION, COMMITMENTS AND CONTINGENCIES | 11. LITIGATION, COMMITMENTS AND CONTINGENCIES Litigation On September 15, 2011, a lawsuit was filed against the Company and several other companies in the United States District Court for the Eastern District of Texas by a patent holding company alleging patent infringement. On July 22, 2015, the Company and the plaintiff executed settlement and license agreements. On July 23, 2015, the Company and the plaintiff filed a stipulation with the Court to dismiss all claims and counterclaims with prejudice, which the Court granted on July 31, 2015. The Company recorded a $1.0 million Arbitration On February 19, 2015, the Company and Fortis entered into an agreement to settle the escrow claim with a payout in cash to the Company in the amount of $2.1 million, with all other cash and shares held in escrow being released to the former shareholders of M5. As the settlement payout ratio of cash and stock mix differed from the Purchase Agreement, the Company recognized a $0.7 million modification accounting charge related to the change in fair value of foregone stock per the Purchase Agreement. The fair value of the common stock was measured using the closing price of our common stock as of February 19, 2015, the final settlement date. Per the Purchase Agreement, the non-prevailing party was required to reimburse professional fees of the prevailing party. The arbitration ruling in December 2014 determined the former M5 shareholders to be the prevailing party, thus the Company was deemed to be required to reimburse professional fees incurred by former M5 shareholders related to the escrow proceedings. The Company and Fortis entered into an agreement to settle the professional fee reimbursement for $2.5 million, as such, the Company recognized this amount as a professional fee reimbursement charge classified as settlements and defense fees within the consolidated statement of operations for fiscal 2015. Indemnification asset — Contingencies — Settlements and defense fees professional fees incurred in connection with an unsolicited acquisition proposal Leases — Years Ending June 30, Operating leases Capital leases 2016 $ 6,180 $ 48 2017 6,220 12 2018 5,639 - 2019 4,390 - 2020 3,059 - Therafter 2,688 - Total minimum lease payments $ 28,176 60 Less: Amount representing interest - Present value of total minimum lease payments 60 Less: Current portion liability (48 ) Capital lease obligation, net of current portion $ 12 The current portion of the capital leases is included in accrued liabilities and other within the consolidated balance sheet. The non-current portion of the capital leases is included in other long-term liabilities on the consolidated balance sheet. Lease obligations for the Company’s foreign offices are denominated in foreign currencies, which were converted to U.S. dollars at the interbank exchange rate on June 30, 2015. Rent expense for the years ended June 30, 2015, 2014, and 2013, was $5.6 million, $4.2 million and $3.8 million, respectively. Purchase commitments Indemnification - The Company also has entered into customary indemnification agreements with each of its officers and directors. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2015 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 12. SEGMENT INFORMATION ASC Topic 280, Segment Reporting The Company’s chief operating decision-maker is its Chief Executive Officer (“CEO”). The CEO reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. On this basis, the Company is organized and operates in a single segment: the design, development, marketing, and sale of business communication solutions. Revenue by geographic region is based on the ship to address on the customer order. The following presents total revenue by geographic region (in thousands): Year Ended June 30, 2015 2014 2013 United States of America $ 331,337 $ 308,609 $ 283,276 International 29,352 31,183 30,267 Total $ 360,689 $ 339,792 $ 313,543 Revenue from one value-added distributor accounted for approximately 26%, 25% and 22% of the total revenue during the years ended June 30, 2015, 2014 and 2013, respectively.. The following presents a summary by geographic region of long-lived assets, excluding deferred tax assets, other assets, and intangible assets (in thousands): As at June 30, 2015 2014 United States of America $ 19,505 $ 18,704 International 914 897 Total $ 20,419 $ 19,601 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Jun. 30, 2015 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 13. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, the Company is exposed to fluctuations in interest rates and the exchange rates associated with foreign currencies. During the years ended June 30, 2015 and 2014, the Company used derivative instruments to reduce the volatility of earnings associated with changes in foreign currency exchange rates. The Company used foreign exchange forward contracts to mitigate the gains and losses generated from the re-measurement of certain foreign monetary assets and liabilities, primarily including cash balances, third party accounts receivable and intercompany transactions recorded on the balance sheet. These derivatives are not designated and do not qualify as hedge instruments. Accordingly, changes in the fair value of these instruments are recognized in other income and expenses during the period of change. The following table presents the gross notional value of all our foreign exchange forward contracts outstanding as of June 30, 2015 and 2014 (in thousands). June 30, 2015 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 2,420 $ 1,840 British pound £ 910 1,429 Canadian dollar $ 750 596 Euro € 1,550 1,708 Total $ 5,573 June 30, 2014 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 1,060 $ 986 British pound £ 2,540 4,303 Euro € 840 1,142 Total $ 6,431 |
EMPLOYEE 401(K) PLAN
EMPLOYEE 401(K) PLAN | 12 Months Ended |
Jun. 30, 2015 | |
EMPLOYEE 401(K) PLAN [Abstract] | |
EMPLOYEE 401(K) PLAN | 14. EMPLOYEE 401(K) PLAN Employee 401(k) Plan - Effective January 1, 2015, we match employee contributions to the Plan on a dollar for dollar basis up to a maximum amount of $1,500 per year. Employer matching contributions made vest immediately. Our employer matching contributions to the Plan were $0.5 million for fiscal 2015. There were no such contributions made during fiscal 2014 or 2013. |
QUARTERLY FINANCIAL DATA (Unaud
QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | 15. QUARTERLY FINANCIAL DATA (Unaudited) The following table summarizes the Company’s information on total revenue, gross profit, net loss and earnings per share by quarter for the fiscal years ended June 30, 2015 and 2014. This data was derived from the Company’s unaudited consolidated financial statements. Three Months Ended Jun. 30, 2015 Mar. 31, 2015 Dec. 31, 2014 Sept. 30, 2014 Jun. 30, 2014 Mar. 31, 2014 Dec. 31, 2013 Sept. 30, 2013 (In thousands, except per share amounts) Total revenue $ 94,389 $ 85,002 $ 90,867 $ 90,431 $ 88,619 $ 82,401 $ 84,485 $ 84,287 Gross profit 59,637 49,949 55,290 53,778 52,796 48,090 49,859 51,176 Net income (loss) 4,757 (2,594 ) (6,842 ) 366 2,143 (1,204 ) (940 ) (1,035 ) Basic net income (loss) per common share $ 0.07 $ (0.04 ) $ (0.11 ) $ 0.01 $ 0.03 $ (0.02 ) $ (0.02 ) $ (0.02 ) Diluted net income (loss) per common share $ 0.07 $ (0.04 ) $ (0.11 ) $ 0.01 $ 0.03 $ (0.02 ) $ (0.02 ) $ (0.02 ) |
THE COMPANY AND SIGNIFICANT A23
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Fiscal Year End | Fiscal Year End |
Principles of Consolidation | Principles of Consolidation - |
Use of Estimates | Use of Estimates |
Concentration of Credit Risk | Concentration of Credit Risk |
Fair Value of Financial Instruments | Fair Value of Financial Instruments - |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investments | Investments The Company recognizes an impairment charge when a decline in the fair value of its investments is considered to be other-than-temporary. An impairment is considered other-than-temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of its entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost of the security. If an impairment is considered other-than-temporary based on (i) or (ii) described above, the entire difference between the amortized cost and the fair value of the security is recognized in earnings. If an impairment is considered other-than-temporary based on condition (iii), the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security, will be recognized in earnings and the amount relating to all other factors will be recognized in other comprehensive income (“OCI”). In estimating the amount and timing of cash flows expected to be collected, the Company considers all available information including past events, current conditions, the remaining payment terms of the security, the financial condition of the issuer, expected defaults, and the value of underlying collateral. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts - The change in allowance for doubtful accounts is summarized as follows (in thousands): June 30, 2015 2014 2013 Allowance for doubtful accounts - beginning $ 636 $ 639 $ 774 Current period provision 182 200 140 Write-offs charged to allowance, net of recoveries (187 ) (203 ) (275 ) Allowance for doubtful accounts - ending $ 631 $ 636 $ 639 |
Inventories | Inventories |
Property and Equipment | Property and Equipment |
Goodwill and Purchased-Intangible Assets | Goodwill and Purchased-Intangible Assets Purchased-intangible assets are amortized on a straight-line basis over the periods of benefit, ranging from two to eight years. The Company performs a review of purchased-intangible assets whenever events or changes in circumstances indicate that the useful life is shorter than it had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, the Company assesses the recoverability of purchased-intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life of the asset is shorter than originally estimated, the Company accelerates the rate of amortization and amortizes the remaining carrying value over the new shorter useful life. There was no impairment of purchased-intangible assets identified in the fiscal years ended June 30, 2015, 2014 and 2013. |
Long-Lived Assets | Long-Lived Assets |
Revenue Recognition | Revenue Recognition When a sales arrangement contains multiple elements, such as hardware and software products and/or services, we allocate revenue to each element based on relative selling prices. The relative selling price is determined using vendor specific objective evidence of fair value (“VSOE”) when available. When VSOE cannot be established, the Company attempts to determine the third party evidence of selling price (“TPE”) for the deliverables. TPE is determined based on competitor prices for similar deliverables when sold separately by the competitors. Generally our product offerings differ from those of our competitors and comparable pricing of our competitors is often not available. Therefore, we are typically not able to determine TPE. When we are unable to establish selling price using VSOE or TPE, we use estimated selling prices (“ESP”) in our allocation of arrangement fees. The ESP for a deliverable is determined as the price at which we would transact if the products or services were sold on a stand-alone basis. Product and Support and Services Revenues: The sale of IP telecommunication systems include hardware, primarily phones and voice switches, software components and may also include training, installation and post-contractual support for the products. The Company’s business strategy is centered on selling to enterprise customers through channel partners rather than directly. Channel partners include resellers as well as value-added distributors who in turn sell to the resellers. Sales to value-added distributors allow the Company to leverage its existing distribution infrastructure and sales personnel. The typical system includes a combination of IP phones, switches and UC software applications. For sales transactions made both direct and to resellers revenue is recognized at the time of shipment provided that all the provisions of revenue recognition have been met. For sales to value-added distributors, revenue is initially deferred and is recognized at the time of sale by the distributor to their customer, provided all the provisions of revenue recognition have been met. The Company refers to this distribution approach as its two-tier distribution model and the recognition of revenue at the time of sale by the distributor as the sell through method. The Company recognizes revenue when persuasive evidence of an arrangement exists, product has shipped or delivery has occurred (depending on when title passes), the sales price is fixed or determinable and free of contingencies and significant uncertainties, and collection is probable. The fee is considered fixed or determinable at the execution of an agreement, based on specific products and quantities to be delivered at specified prices. The agreements with reseller partners generally do not include rights of return or acceptance provisions. Even though substantially all of the contractual agreements do not provide return privileges, there are circumstances for which the Company will accept a return. The Company maintains a reserve for such returns based on historical experience with reseller partners. The agreements with the Company’s value-added distributors allow for limited rights of return of products generally purchased within the previous 90 days. In addition to such return rights, the Company generally offers price protection provisions to its distributors when there is a permanent reduction of its sales prices. In such cases, the Company is obligated to grant the distributor a credit for the difference between the change in the aggregate price of any amounts that have been purchased but unsold by the distributor as of the effective date of such decrease. In addition, certain of the Company’s distributors stock phones and switches and purchase licenses only upon sale to a value added reseller or end customer. Revenue is deferred for distributors until the distributor sells the hardware and license to their customer. To the extent that the Company’s agreements contain acceptance terms, the Company recognizes revenue upon product acceptance, unless the acceptance provision is deemed to be perfunctory. Payment terms to customers generally range from net 30 to net 60 days. In the event payment terms are extended materially from the Company’s standard business practices, the fees are deemed to not be fixed or determinable and revenue is recognized when the payment becomes due. The Company assesses the ability to collect from its customers based on a number of factors, including credit worthiness and past transaction history of the customer. If the customer is not deemed credit worthy, the Company defers all revenue from the arrangement until payment is received and all other revenue recognition criteria have been met. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of product revenue. Provisions for return allowances are recorded at the time revenue is recognized based on the Company’s historical experience. The provision for return allowances is recorded as a reduction to revenues on the statement of operations and is included as a reduction to accounts receivable on the balance sheet. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from the Company’s transactions and are recognized as the revenue recognition criteria are met. Nearly all of the Company’s system sales include the purchase of post-contractual support contracts with terms of up to five years, and the renewal rates on these contracts have been high historically. The Company recognizes support revenue on a ratable basis over the term of the support contract. Since the Company receives payment for support in advance of recognizing the related revenue, the Company carries a deferred revenue balance on the consolidated balance sheet. Most of the products and services included in a premise-based system qualify as separate units of accounting. Many of the Company’s products have both software and non-software components that function together to deliver the essential functionality of the integrated system product. The Company analyzes all of its software and non-software products and services and considers the features and functionalities of the individual elements and the stand alone sales of those individual components among other factors, to determine which elements are essential or non-essential to the overall functionality of the integrated system product. The Company recognizes revenue related to installation services and training upon delivery of the service. The Company’s core software, which we refer to as “essential software,” is integrated with hardware and is essential to the functionality of the integrated system product. The Company also sells additional software which provides increased features and functions, but is not essential to the overall functionality of the integrated system products, which we refer to as “non-essential software.” At the initial purchase, the customer generally bundles together the hardware, essential software, non-essential software, as needed, and up to five years of post-contractual support. Thereafter, if the enterprise customer increases its end users and system functionality, it may add more hardware, both essential and non-essential software components, and related post-contractual support by purchasing them separately. The revenue for these multiple element arrangements is allocated to the non-essential software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the accounting guidance. The non-essential software deliverables included in a multiple element arrangement are subject to the industry specific software revenue recognition guidance. As the Company has not been able to obtain VSOE for all of the non-essential software deliverables in the arrangement, revenue allocated to the delivered non-essential software elements is recognized using the residual method in accordance with industry specific software revenue recognition guidance. Under the residual method, the amount of revenue recognized for the delivered non-essential software elements equaled the total allocated consideration less the VSOE of any undelivered elements bundled with such non-essential software elements. The Company has been able to establish VSOE for its professional and post contractual support services mainly based on the volume and the pricing of the stand-alone sales for these services within a narrow range. The Company establishes its ESP for products by considering factors including, but not limited to, geographies, customer segments and pricing practices. The determination of ESP is made through consultation with and formal approval by the Company’s management. The Company regularly reviews VSOE, TPE and ESP and maintains internal controls over the establishment and updates of these estimates. Hosted and Related Services Revenues: The Company’s hosted and related services and solutions consist primarily of our proprietary hosted voice over Internet Protocol (“VoIP”) UC system as well as other services such as foreign and domestic calling plans, certain UC applications, internet service provisioning, training and other professional services. Additionally, the Company offers their customers the ability to purchase phones from them directly or rent such phones as part of their service agreements. The customers are not required to purchase phones from the Company directly as they can independently purchase such equipment. Customers typically enter into a 12 month service agreement whereby they are billed for such services on a monthly basis. Monthly recurring hosted services are recognized on a straight line basis in the period when the service is delivered. The installation fees are recognized based on customer contractual period or on a straight-line basis over the estimated customer life. The Company bills most of the monthly recurring hosted service revenue a month in advance. Any amounts billed and collected, but for which the service is not yet delivered, are included in deferred revenue. These amounts are recognized as revenues only when the service is delivered. The Company maintains a reserve for credits provided to customers for outages, quality issues, billing disputes or changes in the service levels that are included in the amounts that were billed in advance. The reserve for such credits is based on historical experiences and trends. The Company also maintains a reserve for amounts that are deemed as uncollectible. Channel Partner Programs and Incentives - The Company records estimated reductions to revenues for channel partner programs and incentive offerings including special pricing agreements, promotions and other volume-based incentives. The Company also accrues for co-op marketing funds as a marketing expense if the Company receives an identifiable benefit in exchange and can reasonably estimate the fair value of the identifiable benefit received; otherwise, it is recorded as a reduction to revenues. |
Warranties | Warranties |
Research and Development Costs | Research and Development Costs |
Income and Telecom Taxes | Income and Telecom Taxes As a provid Consolidated Statements of Operations Consolidated Balance Sheets. |
Stock-Based Compensation | Stock-Based Compensation th The following table shows total stock-based compensation expense included in the accompanying Consolidated Statements of Operations for the years ended June 30, 2015, 2014 and 2013 (in thousands): Year Ended June 30, 2015 2014 2013 Cost of product revenue $ 74 $ 69 $ 110 Cost of hosted and related services revenue 1,215 626 188 Cost of support and services revenue 497 569 760 Research and development 1,928 1,704 2,789 Sales and marketing 2,391 1,996 2,921 General and administrative 2,308 2,352 3,837 Total stock-based compensation expense $ 8,413 $ 7,316 $ 10,605 |
Foreign Currency Translation | Foreign Currency Translation |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements (a) New Accounting Updates Recently Adopted In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-5, Foreign Currency Matters (Topic 830) In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Topic 835-30) (b) Recent Accounting Standards or Updates Not Yet Effective In May 2014, the FASB issued ASU No. 2014-9 Revenue from Contracts with Customers (Topic 606) Topic 605, Revenue Recognition Revenue from Contracts with Customers (Topic 606) Deferral of Effective Date In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) |
THE COMPANY AND SIGNIFICANT A24
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Change in allowance for doubtful accounts | The change in allowance for doubtful accounts is summarized as follows (in thousands): June 30, 2015 2014 2013 Allowance for doubtful accounts - beginning $ 636 $ 639 $ 774 Current period provision 182 200 140 Write-offs charged to allowance, net of recoveries (187 ) (203 ) (275 ) Allowance for doubtful accounts - ending $ 631 $ 636 $ 639 |
Stock-based compensation expense | The following table shows total stock-based compensation expense included in the accompanying Consolidated Statements of Operations for the years ended June 30, 2015, 2014 and 2013 (in thousands): Year Ended June 30, 2015 2014 2013 Cost of product revenue $ 74 $ 69 $ 110 Cost of hosted and related services revenue 1,215 626 188 Cost of support and services revenue 497 569 760 Research and development 1,928 1,704 2,789 Sales and marketing 2,391 1,996 2,921 General and administrative 2,308 2,352 3,837 Total stock-based compensation expense $ 8,413 $ 7,316 $ 10,605 |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
BALANCE SHEET COMPONENTS [Abstract] | |
Balance sheet components | Balance sheet components consisted of the following: As of June 30, 2015 2014 (Amounts in thousands) Inventories: Raw materials $ 92 $ 120 Distributor inventory 965 1,535 Finished goods 13,996 24,846 Total inventories $ 15,053 $ 26,501 Property and equipment: Computer equipment and tooling $ 41,532 $ 33,286 Software 5,211 4,077 Furniture and fixtures 3,421 3,331 Leasehold improvements & others 8,149 6,554 Total property and equipment 58,313 47,248 Less accumulated depreciation and amortization (37,894 ) (27,647 ) Property and equipment – net $ 20,419 $ 19,601 Deferred revenue: Product $ 2,912 $ 6,281 Support and services 57,967 53,290 Hosted and related services 6,369 4,905 Total deferred revenue $ 67,248 $ 64,476 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
SHORT-TERM INVESTMENTS [Abstract] | |
Summary of short-term investments | The following is a summary of the Company’s short-term investments (in thousands): June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate notes and commercial paper $ 8,021 $ 4 $ - $ 8,025 Total short-term investments $ 8,021 $ 4 $ - $ 8,025 June 30, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate notes and commercial paper $ 2,672 $ 1 $ - $ 2,673 Total short-term investments $ 2,672 $ 1 $ - $ 2,673 |
Short term investments by contractual maturity | The following table summarizes the maturities of the Company’s short-term investments by contractual maturity (in thousands): June 30, 2015 Amortized Cost Fair Value Less than 1 year $ 6,696 $ 6,702 Due in 1 to 3 years 1,325 1,323 $ 8,021 $ 8,025 June 30, 2014 Amortized Cost Fair Value Less than 1 year $ 2,672 $ 2,673 $ 2,672 $ 2,673 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Summary of intangible assets | The following is a summary of the Company’s intangible assets (in thousands): June 30, 2015 June 30, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 4,446 $ (3,640 ) $ 806 $ 3,970 $ (3,185 ) $ 785 Technology 26,644 (18,874 ) 7,770 26,644 (14,486 ) 12,158 Customer relationships 23,300 (11,049 ) 12,251 23,300 (7,764 ) 15,536 Intangible assets in process and other 1,390 - 1,390 - - - Intangible assets $ 55,780 $ (33,563 ) $ 22,217 $ 53,914 $ (25,435 ) $ 28,479 |
Estimated future amortization expenses for intangible assets | The estimated future amortization expenses for intangible assets, excluding intangible assets in process and other, for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2016 $ 7,532 2017 6,042 2018 4,047 2019 2,910 2020 296 Thereafter - Total $ 20,827 |
FAIR VALUE DISCLOSURE (Tables)
FAIR VALUE DISCLOSURE (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE DISCLOSURE [Abstract] | |
Schedule of financial instruments and liabilities measured at fair value on a recurring basis | The tables below set forth the Company’s cash equivalents and short-term investments measured at fair value on a recurring basis (in thousands): June 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 4,025 $ 4,025 $ - $ - Short-term investments: Corporate notes and commercial paper 8,025 - 8,025 - Total assets measured and recorded at fair value $ 12,050 $ 4,025 $ 8,025 $ - The above table excludes $78.1 million of cash balances on deposit at banks. June 30, 2014 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 11,011 $ 11,011 $ - $ - Short-term investments: Corporate notes and commercial paper 2,673 - 2,673 - Total assets measured and recorded at fair value $ 13,684 $ 11,011 $ 2,673 $ - |
Change in the fair value of the contingent consideration | The change in the fair value of the purchase consideration liability is as follows (in thousands): Fair Value As of June 30, 2013 $ 3,577 Add: Adjustment to purchase consideration 111 Less: Payment of purchase consideration (3,688 ) As of June 30, 2014 $ - |
NET LOSS PER COMMON SHARE (Tabl
NET LOSS PER COMMON SHARE (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
NET LOSS PER COMMON SHARE [Abstract] | |
Reconciliation of net loss per common share | The following table is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per common share (in thousands other than per share amounts): Year Ended June 30, 2015 2014 2013 Numerator: Net loss $ (4,313 ) $ (1,036 ) $ (25,702 ) Denominator: Weighted average common shares outstanding (basic and diluted) 63,953 61,191 58,633 Net loss per share Basic and diluted $ (0.07 ) $ (0.02 ) $ (0.44 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
INCOME TAXES [Abstract] | |
Components of loss before income taxes | The components of loss before income taxes consist of the following (in thousands): Year Ended June 30, 2015 2014 2013 Domestic $ (4,325 ) $ (993 ) $ (25,568 ) Foreign 973 543 292 Total $ (3,352 ) $ (450 ) $ (25,276 ) |
Provision for income taxes | The provision for income taxes consists of the following (in thousands): Year Ended June 30, 2015 2014 2013 Current: Federal $ 159 $ 74 $ - State 528 336 175 Foreign 299 166 108 Total current income tax 986 576 283 Deferred: Federal - - - State - - 135 Foreign (25 ) 10 8 Total deferred income tax (25 ) 10 143 Provision for income taxes $ 961 $ 586 $ 426 |
Reconciliation of income tax provision (benefit) to the federal statutory income tax rate | The difference between the provision for (benefit from) income taxes and the amount computed by applying the federal statutory income tax rate to loss before benefit from income tax is as follows (in thousands): Year Ended June 30, 2015 2014 2013 Benefit from income tax at federal statutory rate $ (1,140 ) $ (153 ) $ (8,593 ) Non deductible expenses 442 339 400 Federal Alternative Minimum Tax 159 166 - Stock-based compensation 314 84 203 Fair value of escrow settlement modification 225 - - Credits (574 ) (590 ) (695 ) State taxes 528 337 181 Other (56 ) (102 ) 145 Increase in valuation allowance 1,063 505 8,785 Total $ 961 $ 586 $ 426 |
Components of deferred tax assets | Significant components of deferred tax assets consist of the following (in thousands): June 30, 2015 2014 Deferred Tax Assets Net operating loss carryforwards $ 26,990 $ 30,356 Tax credit carryforwards 17,176 15,287 Stock compensation 12,105 12,878 Other 14,309 12,534 Gross deferred tax assets 70,580 71,055 Valuation allowance (66,213 ) (64,080 ) Total deferred tax assets 4,367 6,975 Deferred Tax Liabilities Acquistion intangibles (4,282 ) (6,915 ) Total deferred tax liabilities (4,282 ) (6,915 ) Total net deferred tax assets $ 85 $ 60 |
Reconciliation of unrecognized tax benefits | The aggregate annual changes in the balance of gross unrecognized tax benefits are as follows (in thousands): Year Ended June 30, 2015 2014 2013 Beginning balance $ 4,165 $ 4,060 $ 3,576 Decrease in tax positions for prior years - (471 ) (22 ) Increase in tax positions for current year 900 576 506 Ending balance $ 5,065 $ 4,165 $ 4,060 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
COMMON STOCK [Abstract] | |
Reserved shares of common stock for issuance | At June 30, 2015, the Company had reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 19,231 Reserved under employee stock purchase plan 722 Total 19,953 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Schedule of stock options activity | The following table summarizes the Company’s stock option activities for the fiscal year ended June 30, 2015 (in thousands, except per share amounts): Shares Subject to Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance at July 1, 2014 6,324 $ 5.37 Options granted 1,413 $ 6.69 Options exercised (1,110 ) $ 4.63 Options cancelled/forfeited (364 ) $ 6.68 Balance at June 30, 2015 6,263 $ 5.72 6.20 $ 8,620 Options exercisable at June 30, 2015 3,745 $ 5.66 4.67 $ 5,960 Vested and expected to vest at June 30, 2015 5,442 $ 5.68 5.84 $ 7,866 |
Outstanding and exercisable options | The following table summarizes information about outstanding and exercisable options at June 30, 2015 (in thousands, except years and exercise prices): Options Outstanding Options Exercisable Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $0.40 – 4.25 769 6.12 $ 3.79 467 $ 3.61 $4.31 720 7.72 4.31 400 4.31 $4.35 – 4.80 634 6.84 4.53 436 4.54 $4.82 676 0.61 4.82 677 4.82 $4.93 - 5.15 722 6.22 5.11 472 5.08 $5.25 - 6.50 560 4.80 6.00 460 5.95 $6.61 643 9.13 6.61 - - $6.62 - 7.41 649 8.60 6.82 90 6.90 $7.51 - 8.79 663 6.54 8.24 516 8.33 $9.00 – 13.73 227 3.87 10.93 227 10.93 Total Outstanding 6,263 6.20 $ 5.72 3,745 $ 5.66 |
Assumptions for estimating fair value of stock options | The fair value of each option is estimated on the date of grant using the Black-Scholes option valuation method, with the following assumptions: Year Ended June 30, 2015 2014 2013 Expected life from grant date of option 5.04-5.09 years 4.98-5.44 years 5.32-5.48 years Risk-free interest rate 1.45-1.70 % 1.44-1.66 % 0.67-0.91 % Expected volatility 49-50 % 51-66 % 68-69 % Expected dividend yield 0 % 0 % 0 % |
Assumptions for estimating fair value of stock purchase rights | The fair value of stock purchase rights granted under the ESPP is estimated using the Black-Scholes option pricing model, based on the following assumptions: Year Ended June 30, 2015 2014 2013 Expected life from grant date of ESPP 0.50 years 0.50 years 0.50 years Risk-free interest rate 0.06-0.09 % 0.06-0.10 % 0.09-0.15 % Expected volatility 35-43 % 43-48 % 42-57 % Expected dividend yield 0 % 0 % 0 % |
Restricted stock award and restricted stock unit activity | Restricted stock award and restricted stock unit activity for the year ended June 30, 2015 is as follows (in thousands): Shares Weighted- Average Grant Date Fair Value Outstanding - July 1, 2014 1,394 $ 5.38 Awarded 917 6.80 Released (629 ) 5.68 Forfeited (230 ) 5.85 Outstanding - June 30, 2015 1,452 $ 6.07 |
LITIGATION, COMMITMENTS AND C33
LITIGATION, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
LITIGATION, COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of future minimum payments under noncancelable capital and operating leases | Future minimum lease payments under the noncancelable capital and operating leases as of June 30, 2015, are as follows (in thousands): Years Ending June 30, Operating leases Capital leases 2016 $ 6,180 $ 48 2017 6,220 12 2018 5,639 - 2019 4,390 - 2020 3,059 - Therafter 2,688 - Total minimum lease payments $ 28,176 60 Less: Amount representing interest - Present value of total minimum lease payments 60 Less: Current portion liability (48 ) Capital lease obligation, net of current portion $ 12 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
SEGMENT INFORMATION [Abstract] | |
Total revenue and long-lived assets, excluding deferred tax assets, other assets, and intangible assets by geographic region | Revenue by geographic region is based on the ship to address on the customer order. The following presents total revenue by geographic region (in thousands): Year Ended June 30, 2015 2014 2013 United States of America $ 331,337 $ 308,609 $ 283,276 International 29,352 31,183 30,267 Total $ 360,689 $ 339,792 $ 313,543 The following presents a summary by geographic region of long-lived assets, excluding deferred tax assets, other assets, and intangible assets (in thousands): As at June 30, 2015 2014 United States of America $ 19,505 $ 18,704 International 914 897 Total $ 20,419 $ 19,601 |
DERIVATIVE INSTRUMENTS AND HE35
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |
Notional amounts of outstanding derivative positions | The following table presents the gross notional value of all our foreign exchange forward contracts outstanding as of June 30, 2015 and 2014 (in thousands). June 30, 2015 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 2,420 $ 1,840 British pound £ 910 1,429 Canadian dollar $ 750 596 Euro € 1,550 1,708 Total $ 5,573 June 30, 2014 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 1,060 $ 986 British pound £ 2,540 4,303 Euro € 840 1,142 Total $ 6,431 |
QUARTERLY FINANCIAL DATA (Una36
QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract] | |
Quarterly financial information | The following table summarizes the Company’s information on total revenue, gross profit, net loss and earnings per share by quarter for the fiscal years ended June 30, 2015 and 2014. This data was derived from the Company’s unaudited consolidated financial statements. Three Months Ended Jun. 30, 2015 Mar. 31, 2015 Dec. 31, 2014 Sept. 30, 2014 Jun. 30, 2014 Mar. 31, 2014 Dec. 31, 2013 Sept. 30, 2013 (In thousands, except per share amounts) Total revenue $ 94,389 $ 85,002 $ 90,867 $ 90,431 $ 88,619 $ 82,401 $ 84,485 $ 84,287 Gross profit 59,637 49,949 55,290 53,778 52,796 48,090 49,859 51,176 Net income (loss) 4,757 (2,594 ) (6,842 ) 366 2,143 (1,204 ) (940 ) (1,035 ) Basic net income (loss) per common share $ 0.07 $ (0.04 ) $ (0.11 ) $ 0.01 $ 0.03 $ (0.02 ) $ (0.02 ) $ (0.02 ) Diluted net income (loss) per common share $ 0.07 $ (0.04 ) $ (0.11 ) $ 0.01 $ 0.03 $ (0.02 ) $ (0.02 ) $ (0.02 ) |
THE COMPANY AND SIGNIFICANT A37
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015USD ($)UserInstitution | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
The Company [Abstract] | |||
Maximum users for small and medium sized businesses | User | 5,000 | ||
Cash and Cash Equivalents [Abstract] | |||
Original or remaining maturity period to be cash equivalents, maximum | 3 months | ||
Investments [Abstract] | |||
Number of financial institutions for short-term investments custody | Institution | 1 | ||
Allowance for doubtful accounts [Roll Forward] | |||
Allowance for doubtful accounts - beginning | $ 636 | $ 639 | $ 774 |
Current period provision | 182 | 200 | 140 |
Write-offs charged to allowance, net of recoveries | (187) | (203) | (275) |
Allowance for doubtful accounts - ending | $ 631 | $ 636 | $ 639 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 2 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 5 years | ||
Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (in hundredths) | 33.00% | 31.00% |
THE COMPANY AND SIGNIFICANT A38
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES, Goodwill and Intangible Asset Impairment (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Goodwill and Purchased-Intangible Assets [Abstract] | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Impairment of purchased intangible assets | $ 0 | 0 | 0 |
Revenue Recognition [Abstract] | |||
Standard product return policy | The agreements with reseller partners generally do not include rights of return or acceptance provisions. Even though substantially all of the contractual agreements do not provide return privileges, there are circumstances for which the Company will accept a return. The Company maintains a reserve for such returns based on historical experience with reseller partners. The agreements with the Company’s value-added distributors allow for limited rights of return of products generally purchased within the previous 90 days. In addition to such return rights, the Company generally offers price protection provisions to its distributors when there is a permanent reduction of its sales prices. | ||
Payment terms | Payment terms to customers generally range from net 30 to net 60 days. | ||
Period of service agreements entered by customers | 12 months | ||
Warranties [Abstract] | |||
Limited manufacturer's warranty description | The majority of the Company's products are covered by a one-year limited manufacturer's warranty. | ||
Income and Telecom Taxes [Abstract] | |||
Probability of realization of tax benefit upon settlement (in hundredths) | 50.00% | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 8,413,000 | 7,316,000 | 10,605,000 |
2007 Plan [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Stock option awards | The Company grants nonqualified (“NSO”) and incentive stock options (“ISOs”), restricted stock awards, and restricted stock units to officers, directors, employees and consultants under the 2007 Equity Incentive Plan (“2007 Plan”), which is the successor to the 1997 Plan. The 2007 Plan, provides for the granting of ISOs and NSOs for over a period not to exceed ten years and at exercise prices that are not less than 100% and 85%, respectively, of the estimated fair market value of the Company’s common stock on the date of grant as determined by the Board of Directors. Stock options issued under the 2007 Plan generally vest 25% at one year and then 1/36th monthly thereafter, and restricted stock units issued under the 2007 Plan generally vest 25% at one, two, three and four years. | ||
Minimum [Member] | |||
Goodwill and Purchased-Intangible Assets [Abstract] | |||
Useful lives of intangible assets | 2 years | ||
Revenue Recognition [Abstract] | |||
Payment terms to customers | 30 days | ||
Maximum [Member] | |||
Goodwill and Purchased-Intangible Assets [Abstract] | |||
Useful lives of intangible assets | 8 years | ||
Revenue Recognition [Abstract] | |||
Payment terms to customers | 60 days | ||
Term of post-contractual support | 5 years | ||
Cost of Product Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 74,000 | 69,000 | 110,000 |
Cost of Hosted and Related Service Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,215,000 | 626,000 | 188,000 |
Cost of Support and Services Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 497,000 | 569,000 | 760,000 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,928,000 | 1,704,000 | 2,789,000 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 2,391,000 | 1,996,000 | 2,921,000 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 2,308,000 | $ 2,352,000 | $ 3,837,000 |
Stock Options [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Stock option awards | The Company has a stock-based employee compensation plan (Option Plan). Generally, stock options granted to employees vest 25% at one year and then 1/36th monthly thereafter, and restricted stock units issued under the 2007 Plan generally vest 25% at one, two, three and four years, and have a term of ten years. | ||
Stock Options [Member] | Vesting Period One [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Stock Options [Member] | 2007 Plan [Member] | Vesting Period One [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Restricted Stock Units [Member] | 2007 Plan [Member] | Vesting Period One [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Restricted Stock Units [Member] | 2007 Plan [Member] | Vesting Period Two [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Restricted Stock Units [Member] | 2007 Plan [Member] | Vesting Period Three [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Restricted Stock Units [Member] | 2007 Plan [Member] | Vesting Period Four [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% |
BALANCE SHEET COMPONENTS (Detai
BALANCE SHEET COMPONENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Inventories [Abstract] | |||
Raw materials | $ 92 | $ 120 | |
Distributor inventory | 965 | 1,535 | |
Finished goods | 13,996 | 24,846 | |
Total inventories | 15,053 | 26,501 | |
Property and equipment [Abstract] | |||
Total property and equipment | 58,313 | 47,248 | |
Less accumulated depreciation and amortization | (37,894) | (27,647) | |
Property and equipment - net | 20,419 | 19,601 | |
Depreciation expense | 10,600 | 8,400 | $ 6,200 |
Deferred revenue [Abstract] | |||
Total deferred revenue | 67,248 | 64,476 | |
Computer Equipment and Tooling [Member] | |||
Property and equipment [Abstract] | |||
Total property and equipment | 41,532 | 33,286 | |
Software [Member] | |||
Property and equipment [Abstract] | |||
Total property and equipment | 5,211 | 4,077 | |
Furniture and Fixtures [Member] | |||
Property and equipment [Abstract] | |||
Total property and equipment | 3,421 | 3,331 | |
Leaseholds Improvements & Others [Member] | |||
Property and equipment [Abstract] | |||
Total property and equipment | 8,149 | 6,554 | |
Product [Member] | |||
Deferred revenue [Abstract] | |||
Total deferred revenue | 2,912 | 6,281 | |
Support and Services [Member] | |||
Deferred revenue [Abstract] | |||
Total deferred revenue | 57,967 | 53,290 | |
Hosted and Related Services [Member] | |||
Deferred revenue [Abstract] | |||
Total deferred revenue | $ 6,369 | $ 4,905 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Summary of short-term investments [Abstract] | ||
Amortized cost | $ 8,021 | $ 2,672 |
Gross unrealized gains | 4 | 1 |
Gross unrealized losses | 0 | 0 |
Fair value | 8,025 | 2,673 |
Amortized Cost [Abstract] | ||
Less than 1 year | 6,696 | 2,672 |
Due in 1 to 3 years | 1,325 | |
Amortized cost | 8,021 | 2,672 |
Fair Value [Abstract] | ||
Less than 1 year | 6,702 | 2,673 |
Due in 1 to 3 years | 1,323 | |
Fair value | 8,025 | 2,673 |
Corporate Notes and Commercial Paper [Member] | ||
Summary of short-term investments [Abstract] | ||
Amortized cost | 8,021 | 2,672 |
Gross unrealized gains | 4 | 1 |
Gross unrealized losses | 0 | 0 |
Fair value | 8,025 | 2,673 |
Amortized Cost [Abstract] | ||
Amortized cost | 8,021 | 2,672 |
Fair Value [Abstract] | ||
Fair value | $ 8,025 | $ 2,673 |
GOODWILL AND INTANGIBLE ASSET41
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 122,750 | $ 122,750 | $ 122,800 |
Intangible Assets [Abstract] | |||
Gross Carrying Amount | 55,780 | 53,914 | |
Accumulated Amortization | (33,563) | (25,435) | |
Net Carrying Amount | 22,217 | 28,479 | |
Amortization of intangible assets | 8,100 | 9,800 | $ 9,500 |
Estimated future amortization expenses for intangible assets [Abstract] | |||
2,016 | 7,532 | ||
2,017 | 6,042 | ||
2,018 | 4,047 | ||
2,019 | 2,910 | ||
2,020 | 296 | ||
Thereafter | 0 | ||
Total | $ 20,827 | ||
Minimum [Member] | |||
Intangible Assets [Abstract] | |||
Useful lives of intangible assets | 2 years | ||
Maximum [Member] | |||
Intangible Assets [Abstract] | |||
Useful lives of intangible assets | 8 years | ||
Patents [Member] | |||
Intangible Assets [Abstract] | |||
Gross Carrying Amount | $ 4,446 | 3,970 | |
Accumulated Amortization | (3,640) | (3,185) | |
Net Carrying Amount | 806 | 785 | |
Technology [Member] | |||
Intangible Assets [Abstract] | |||
Gross Carrying Amount | 26,644 | 26,644 | |
Accumulated Amortization | (18,874) | (14,486) | |
Net Carrying Amount | 7,770 | 12,158 | |
Customer Relationships [Member] | |||
Intangible Assets [Abstract] | |||
Gross Carrying Amount | 23,300 | 23,300 | |
Accumulated Amortization | (11,049) | (7,764) | |
Net Carrying Amount | 12,251 | 15,536 | |
Intangible Assets in Process and Other [Member] | |||
Intangible Assets [Abstract] | |||
Gross Carrying Amount | 1,390 | 0 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | $ 1,390 | $ 0 |
FAIR VALUE DISCLOSURE (Details)
FAIR VALUE DISCLOSURE (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 23, 2012 | |
Assets: [Abstract] | ||||||
Short-term investments | $ 8,025 | $ 2,673 | ||||
Total assets measured and recorded at fair value | 12,050 | 13,684 | ||||
Cash balances on deposit at banks | 78,100 | 42,500 | ||||
Change in the fair value of our purchase consideration liability [Abstract] | ||||||
As of beginning of period | 0 | 3,577 | ||||
Add: Adjustment to purchase consideration | 0 | 111 | $ 874 | |||
Less: Payment of purchase consideration | (3,688) | |||||
As of ending of period | 0 | $ 3,577 | ||||
M5 Networks, Inc. [Member] | ||||||
Quantitative information about the inputs and valuation methodologies used for our fair value measurements [Abstract] | ||||||
Acquisition related consideration first installment paid | $ 10,000 | |||||
Acquisition related consideration second installment paid | $ 3,700 | |||||
M5 Networks, Inc. [Member] | Minimum [Member] | ||||||
Quantitative information about the inputs and valuation methodologies used for our fair value measurements [Abstract] | ||||||
Earn-out liability | $ 0 | |||||
M5 Networks, Inc. [Member] | Maximum [Member] | ||||||
Quantitative information about the inputs and valuation methodologies used for our fair value measurements [Abstract] | ||||||
Earn-out liability | $ 13,700 | |||||
Level 1 [Member] | ||||||
Assets: [Abstract] | ||||||
Total assets measured and recorded at fair value | 4,025 | 11,011 | ||||
Level 2 [Member] | ||||||
Assets: [Abstract] | ||||||
Total assets measured and recorded at fair value | 8,025 | 2,673 | ||||
Level 3 [Member] | ||||||
Assets: [Abstract] | ||||||
Total assets measured and recorded at fair value | 0 | 0 | ||||
Money Market Funds [Member] | ||||||
Assets: [Abstract] | ||||||
Cash and cash equivalents | 4,025 | 11,011 | ||||
Money Market Funds [Member] | Level 1 [Member] | ||||||
Assets: [Abstract] | ||||||
Cash and cash equivalents | 4,025 | 11,011 | ||||
Money Market Funds [Member] | Level 2 [Member] | ||||||
Assets: [Abstract] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Money Market Funds [Member] | Level 3 [Member] | ||||||
Assets: [Abstract] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Corporate Notes and Commercial Paper [Member] | ||||||
Assets: [Abstract] | ||||||
Short-term investments | 8,025 | 2,673 | ||||
Corporate Notes and Commercial Paper [Member] | Level 1 [Member] | ||||||
Assets: [Abstract] | ||||||
Short-term investments | 0 | 0 | ||||
Corporate Notes and Commercial Paper [Member] | Level 2 [Member] | ||||||
Assets: [Abstract] | ||||||
Short-term investments | 8,025 | 2,673 | ||||
Corporate Notes and Commercial Paper [Member] | Level 3 [Member] | ||||||
Assets: [Abstract] | ||||||
Short-term investments | $ 0 | $ 0 |
LINE OF CREDIT (Details)
LINE OF CREDIT (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Line of Credit Facility [Line Items] | |
Credit facility revolving loan facility for aggregate principal amount | $ 100 |
Line of credit facility, maturity date | Oct. 22, 2019 |
Line of credit facility, remaining borrowing capacity | $ 99.4 |
Line of credit facility, amount outstanding | $ 0 |
Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate (in hundredths) | 0.50% |
Minimum [Member] | Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate (in hundredths) | 0.00% |
Minimum [Member] | London Interbank Bank Offered Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate (in hundredths) | 1.50% |
Maximum [Member] | Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate (in hundredths) | 0.50% |
Maximum [Member] | London Interbank Bank Offered Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt instrument, basis spread on variable rate (in hundredths) | 2.25% |
NET LOSS PER COMMON SHARE (Deta
NET LOSS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Numerator [Abstract] | |||||||||||
Net loss | $ 4,757 | $ (2,594) | $ (6,842) | $ 366 | $ 2,143 | $ (1,204) | $ (940) | $ (1,035) | $ (4,313) | $ (1,036) | $ (25,702) |
Denominator [Abstract] | |||||||||||
Weighted average common shares outstanding (basic and diluted) (in shares) | 63,953 | 61,191 | 58,633 | ||||||||
Net loss per share - Basic and diluted (in dollars per share) | $ (0.07) | $ (0.02) | $ (0.44) | ||||||||
Antidilutive weighted shares excluded from calculation of diluted shares (in shares) | 2,200 | 2,300 | 8,900 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Components of loss before income taxes [Abstract] | |||
Domestic | $ (4,325) | $ (993) | $ (25,568) |
Foreign | 973 | 543 | 292 |
Loss before provision for (benefit from) income tax | (3,352) | (450) | (25,276) |
Current [Abstract] | |||
Federal | 159 | 74 | 0 |
State | 528 | 336 | 175 |
Foreign | 299 | 166 | 108 |
Total current income tax | 986 | 576 | 283 |
Deferred [Abstract] | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 135 |
Foreign | (25) | 10 | 8 |
Total deferred income tax | (25) | 10 | 143 |
Total | 961 | 586 | 426 |
Reconciliation of income tax provision (benefit) to the federal statutory income tax rate [Abstract] | |||
Benefit from income tax at federal statutory rate | (1,140) | (153) | (8,593) |
Non deductible expenses | 442 | 339 | 400 |
Federal Alternative Minimum Tax | 159 | 166 | 0 |
Stock-based compensation | 314 | 84 | 203 |
Fair value of escrow settlement modification | 225 | 0 | 0 |
Credits | (574) | (590) | (695) |
State taxes | 528 | 337 | 181 |
Other | (56) | (102) | 145 |
Increase in valuation allowance | 1,063 | 505 | 8,785 |
Total | 961 | 586 | $ 426 |
Deferred Tax Assets [Abstract] | |||
Net operating loss carryforwards | 26,990 | 30,356 | |
Tax credit carryforwards | 17,176 | 15,287 | |
Stock compensation | 12,105 | 12,878 | |
Other | 14,309 | 12,534 | |
Gross deferred tax assets | 70,580 | 71,055 | |
Valuation allowance | (66,213) | (64,080) | |
Total deferred tax assets | 4,367 | 6,975 | |
Deferred Tax Liabilities [Abstract] | |||
Acquisition intangibles | (4,282) | (6,915) | |
Total deferred tax liabilities | (4,282) | (6,915) | |
Total net deferred tax assets | 85 | $ 60 | |
Decrease in deferred tax assets | 500 | ||
Decrease in deferred tax liabilities | 2,600 | ||
Deferred tax assets, excess stock option deductions | 3,200 | ||
Deferred tax assets, excess stock option deductions, pretax | $ 9,400 | ||
Tax Credit Carryforward [Line Items] | |||
Undistributed earnings from foreign subsidiaries | The undistributed earnings from the Company’s foreign subsidiaries are not subject to a U.S. tax provision because it is management’s intention to permanently reinvest such undistributed earnings outside of the United States. The Company evaluates its circumstances and reassesses this determination on a periodic basis. As of June 30, 2015, the determination of the unrecorded deferred tax liability related to these earnings was not practicable. If circumstances change and it becomes apparent that some or all of the undistributed earnings of the Company's foreign subsidiaries will be remitted in the foreseeable future, the Company will be required to recognize a deferred tax liability on those amounts. | ||
Federal [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards | $ 12,600 | ||
Expiration of tax credit carryforward | Between 2023 and 2035 | ||
California [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards | $ 14,900 | ||
Expiration of tax credit carryforward | indefinitely | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 85,000 | ||
Net operating loss carryforwards expiration dates | Between 2023 and 2033 | ||
California [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 13,500 | ||
Net operating loss carryforwards expiration dates | Between 2015 and 2034 | ||
Other States [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 5,800 | ||
Net operating loss carryforwards expiration dates | Between 2015 and 2034 |
INCOME TAXES, Examinations (Det
INCOME TAXES, Examinations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
INCOME TAXES [Abstract] | |||
Other information pertaining to income taxes | The “American Taxpayer Relief Act of 2012” (the “2012 Tax Act”) was enacted in January 2013. The 2012 Tax Act extended certain tax provisions that had previously expired under the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” (the “2010 Tax Act”). The Tax Increase Prevention Act of 2014 extended the Research and Development (“R&D”) credit for qualifying activities through December 31, 2014 and also extended the 50% bonus depreciation provisions on property acquired through December 31, 2014. | ||
Reconciliation of the beginning and ending balances of unrecognized tax benefits [Rollforward] | |||
Beginning balance | $ 4,165 | $ 4,060 | $ 3,576 |
Decrease in tax positions for prior years | 0 | (471) | (22) |
Increase in tax positions for current year | 900 | 576 | 506 |
Ending balance | 5,065 | $ 4,165 | $ 4,060 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 0 | ||
Expected change in unrecognized tax benefits in next fiscal year | $ 0 | ||
Period for unrecognized tax benefits to change materially | 12 months | ||
Open tax years | 2002 through 2014 |
COMMON STOCK (Details)
COMMON STOCK (Details) shares in Thousands | Jun. 30, 2015shares |
Share-based Compensation Awards [Line Items] | |
Common stock shares reserved for issuance (in shares) | 19,953 |
Reserved Under Stock Option Plans [Member] | |
Share-based Compensation Awards [Line Items] | |
Common stock shares reserved for issuance (in shares) | 19,231 |
Reserved Under Employee Stock Purchase Plan [Member] | |
Share-based Compensation Awards [Line Items] | |
Common stock shares reserved for issuance (in shares) | 722 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stock option activity [Roll Forward] | |||
Balance (in shares) | 6,324,000 | ||
Options granted (in shares) | 1,413,000 | ||
Options exercised (in shares) | (1,110,000) | ||
Options cancelled/forfeited (in shares) | (364,000) | ||
Balance (in shares) | 6,263,000 | 6,324,000 | |
Options exercisable (in shares) | 3,745,000 | ||
Vested and expected to vest (in shares) | 5,442,000 | ||
Weighted-Average Exercise Price [Roll Forward] | |||
Balance (in dollars per share) | $ 5.37 | ||
Options granted (in dollars per share) | 6.69 | ||
Options exercised (in dollars per share) | 4.63 | ||
Options cancelled/forfeited (in dollars per share) | 6.68 | ||
Balance (in dollars per share) | 5.72 | $ 5.37 | |
Options exercisable (in dollars per share) | 5.66 | ||
Vested and expected to vest (in dollars per share) | $ 5.68 | ||
Weighted Average Remaining Contractual Term [Abstract] | |||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 6 years 2 months 12 days | ||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1 | 4 years 8 months 1 day | ||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1 | 5 years 10 months 2 days | ||
Weighted Average Intrinsic Value [Abstract] | |||
Balance | $ 8,620 | ||
Options exercisable | 5,960 | ||
Vested and expected to vest | $ 7,866 | ||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Options Outstanding (in shares) | 6,263,000 | ||
Weighted Average Remaining Contractual Life | 6 years 2 months 12 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 5.72 | ||
Options Exercisable (in shares) | 3,745,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 5.66 | ||
2007 Equity Incentive Plan [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Plan description and terms | The Company grants nonqualified (“NSO”) and incentive stock options (“ISOs”), restricted stock awards, and restricted stock units to officers, directors, employees and consultants under the 2007 Equity Incentive Plan (“2007 Plan”), which is the successor to the 1997 Plan. The 2007 Plan, provides for the granting of ISOs and NSOs for over a period not to exceed ten years and at exercise prices that are not less than 100% and 85%, respectively, of the estimated fair market value of the Company’s common stock on the date of grant as determined by the Board of Directors. Stock options issued under the 2007 Plan generally vest 25% at one year and then 1/36th monthly thereafter, and restricted stock units issued under the 2007 Plan generally vest 25% at one, two, three and four years. | ||
Increase in number of shares authorized and available for issuance (in shares) | 3,200,000 | 3,100,000 | |
Common stock available for issuance (in shares) | 11,500,000 | ||
2007 Equity Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Annual increase of shares available for issuance as a percentage of outstanding shares (in hundredths) | 5.00% | ||
Range $ 0.40 - 4.25 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $ 0.40 | ||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 4.25 | ||
Options Outstanding (in shares) | 769,000 | ||
Weighted Average Remaining Contractual Life | 6 years 1 month 13 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 3.79 | ||
Options Exercisable (in shares) | 467,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 3.61 | ||
Range $ 4.31 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 4.31 | ||
Options Outstanding (in shares) | 720,000 | ||
Weighted Average Remaining Contractual Life | 7 years 8 months 19 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 4.31 | ||
Options Exercisable (in shares) | 400,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 4.31 | ||
Range $ 4.35 - 4.80 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 4.35 | ||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 4.80 | ||
Options Outstanding (in shares) | 634,000 | ||
Weighted Average Remaining Contractual Life | 6 years 10 months 2 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 4.53 | ||
Options Exercisable (in shares) | 436,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 4.54 | ||
Range $4.82 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 4.82 | ||
Options Outstanding (in shares) | 676,000 | ||
Weighted Average Remaining Contractual Life | 7 months 10 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 4.82 | ||
Options Exercisable (in shares) | 677,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 4.82 | ||
Range $4.93 - 5.15 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 4.93 | ||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 5.15 | ||
Options Outstanding (in shares) | 722,000 | ||
Weighted Average Remaining Contractual Life | 6 years 2 months 19 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 5.11 | ||
Options Exercisable (in shares) | 472,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 5.08 | ||
Range $5.25 - 6.50 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 5.25 | ||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 6.50 | ||
Options Outstanding (in shares) | 560,000 | ||
Weighted Average Remaining Contractual Life | 4 years 9 months 18 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 6 | ||
Options Exercisable (in shares) | 460,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 5.95 | ||
Range $6.61 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 6.61 | ||
Options Outstanding (in shares) | 643,000 | ||
Weighted Average Remaining Contractual Life | 9 years 1 month 17 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 6.61 | ||
Options Exercisable (in shares) | 0 | ||
Weighted Average Exercise Price (in dollars per share) | $ 0 | ||
Range $6.62 - 7.41 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 6.62 | ||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 7.41 | ||
Options Outstanding (in shares) | 649,000 | ||
Weighted Average Remaining Contractual Life | 8 years 7 months 6 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 6.82 | ||
Options Exercisable (in shares) | 90,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 6.90 | ||
Range $7.51 - 8.79 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 7.51 | ||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 8.79 | ||
Options Outstanding (in shares) | 663,000 | ||
Weighted Average Remaining Contractual Life | 6 years 6 months 14 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 8.24 | ||
Options Exercisable (in shares) | 516,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 8.33 | ||
Range $9.00 - 13.73 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 9 | ||
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 13.73 | ||
Options Outstanding (in shares) | 227,000 | ||
Weighted Average Remaining Contractual Life | 3 years 10 months 13 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 10.93 | ||
Options Exercisable (in shares) | 227,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 10.93 | ||
Stock Options [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Plan description and terms | The Company has a stock-based employee compensation plan (Option Plan). Generally, stock options granted to employees vest 25% at one year and then 1/36th monthly thereafter, and restricted stock units issued under the 2007 Plan generally vest 25% at one, two, three and four years, and have a term of ten years. | ||
Vesting rights | Stock options issued under the 2007 Plan generally vest 25% at one year and then 1/36th monthly thereafter | ||
Weighted Average Intrinsic Value [Abstract] | |||
Weighted average grant date fair value of options granted (in dollars per share) | $ 3.02 | $ 2.86 | $ 2.46 |
Intrinsic value for options exercised | $ 3,200 | $ 7,300 | $ 300 |
Fair value assumptions - stock options [Abstract] | |||
Expected dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% |
Unrecognized compensation cost related to stock options granted to employees and non-employee directors | $ 2,700 | ||
Period to recognize unrecognized compensation cost (in years) | 2 years 6 months | ||
Stock Options [Member] | Vesting Period One [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Stock Options [Member] | Minimum [Member] | |||
Fair value assumptions - stock options [Abstract] | |||
Expected life from grant date of option | 5 years 14 days | 4 years 11 months 23 days | 5 years 3 months 25 days |
Risk-free interest rate, minimum (in hundredths) | 1.45% | 1.44% | 0.67% |
Expected volatility, minimum (in hundredths) | 49.00% | 51.00% | 68.00% |
Stock Options [Member] | Maximum [Member] | |||
Fair value assumptions - stock options [Abstract] | |||
Expected life from grant date of option | 5 years 1 month 2 days | 5 years 5 months 8 days | 5 years 5 months 23 days |
Risk-free interest rate, maximum (in hundredths) | 1.70% | 1.66% | 0.91% |
Expected volatility, maximum (in hundredths) | 50.00% | 66.00% | 69.00% |
Stock Options [Member] | 2007 Equity Incentive Plan [Member] | Vesting Period One [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Plan description and terms | On September 18, 2007, the Board of Directors approved the commencement of offering periods under a previously-approved employee stock purchase plan (the “ESPP”) which was further amended in November 2010. The ESPP allows eligible employees to purchase shares of the Company's common stock at a discount through payroll deductions. The ESPP consists of six-month offering periods commencing on May 1st and November 1st each year | ||
Increase in number of shares authorized and available for issuance (in shares) | 641,464 | 611,987 | |
Fair value assumptions - stock options [Abstract] | |||
Expected life from grant date of option | 6 months | 6 months | 6 months |
Expected dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% |
Period to recognize unrecognized compensation cost (in years) | 6 months | ||
Employee Stock Purchase Plan [Abstract] | |||
Shares issued (in shares) | 670,329 | 370,665 | |
Weighted average purchase price (in dollars per share) | $ 6.19 | $ 4.82 | |
Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Unrecognized compensation cost | $ 500 | ||
Employee Stock Purchase Plan [Member] | Minimum [Member] | |||
Fair value assumptions - stock options [Abstract] | |||
Risk-free interest rate, minimum (in hundredths) | 0.06% | 0.06% | 0.09% |
Expected volatility, minimum (in hundredths) | 35.00% | 43.00% | 42.00% |
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||
Fair value assumptions - stock options [Abstract] | |||
Risk-free interest rate, maximum (in hundredths) | 0.09% | 0.10% | 0.15% |
Expected volatility, maximum (in hundredths) | 43.00% | 48.00% | 57.00% |
Restricted Stock Units [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting rights | restricted stock units issued under the 2007 Plan generally vest 25% at one, two, three and four years | ||
Fair value assumptions - stock options [Abstract] | |||
Period to recognize unrecognized compensation cost (in years) | 2 years 4 months 24 days | ||
Restricted stock award and restricted stock unit activity [Roll Forward] | |||
Outstanding - Beginning Balance (in shares) | 1,394,000 | ||
Awarded (in shares) | 917,000 | ||
Released (in shares) | (629,000) | ||
Forfeited (in shares) | (230,000) | ||
Outstanding - Ending Balance (in shares) | 1,452,000 | 1,394,000 | |
Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Outstanding - Beginning Balance (in dollars per share) | $ 5.38 | ||
Awarded (in dollars per share) | 6.80 | ||
Released (in dollars per share) | 5.68 | ||
Forfeited (in dollars per share) | 5.85 | ||
Outstanding - Ending Balance (in dollars per share) | $ 6.07 | $ 5.38 | |
Total fair value of restricted stock awards and units granted | $ 5,800 | $ 4,500 | $ 3,000 |
Unrecognized compensation cost | $ 2,500 | ||
Restricted Stock Units [Member] | 2007 Equity Incentive Plan [Member] | Vesting Period One [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Restricted Stock Units [Member] | 2007 Equity Incentive Plan [Member] | Vesting Period Two [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Restricted Stock Units [Member] | 2007 Equity Incentive Plan [Member] | Vesting Period Three [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Restricted Stock Units [Member] | 2007 Equity Incentive Plan [Member] | Vesting period Four [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Vesting percentage of stock awards granted to employees (in hundredths) | 25.00% | ||
Non-employee Director Annual Retainer [Member] | |||
Restricted stock award and restricted stock unit activity [Roll Forward] | |||
Awarded (in shares) | 62,979 | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Total fair value of restricted stock awards and units granted | $ 400 | ||
Incentive Stock Options [Member] | 2007 Equity Incentive Plan [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Stock option exercise price percentage (in hundredths) | 100.00% | ||
Stock options granted expiration period | 10 years | ||
Nonqualified Stock Option [Member] | 2007 Equity Incentive Plan [Member] | |||
Share-based Compensation Awards [Line Items] | |||
Stock option exercise price percentage (in hundredths) | 85.00% | ||
Stock options granted expiration period | 10 years |
LITIGATION, COMMITMENTS AND C49
LITIGATION, COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
LITIGATION, COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Settlement amount related to settlement and license agreements | $ 1,000 | ||
Settlement amount in respect of escrow claim | 2,100 | ||
Fair value of escrow settlement modification | 664 | $ 0 | $ 0 |
Professional fee reimbursement expense | 2,500 | ||
Impairment of indemnification asset charge | 3,584 | 0 | 0 |
Indemnification asset | 0 | 5,606 | |
Settlements and defense fees | 8,475 | 0 | 0 |
Professional fees related to unsolicited acquisition proposal | 600 | ||
Operating Leases [Abstract] | |||
2,016 | 6,180 | ||
2,017 | 6,220 | ||
2,018 | 5,639 | ||
2,019 | 4,390 | ||
2,020 | 3,059 | ||
Thereafter | 2,688 | ||
Total minimum lease payments | 28,176 | ||
Capital Leases [Abstract] | |||
2,016 | 48 | ||
2,017 | 12 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
Thereafter | 0 | ||
Total minimum lease payments | 60 | ||
Less: Amount representing interest | 0 | ||
Present value of total minimum lease payments | 60 | ||
Less: Current portion liability | (48) | ||
Capital lease obligation, net of current portion | 12 | ||
Rent expense | 5,600 | $ 4,200 | $ 3,800 |
Purchase commitments [Abstract] | |||
Purchase commitment with contract manufacturers | $ 14,900 | ||
Internal Revenue Service (IRS) [Member] | |||
Income Tax Contingency [Line Items] | |||
Calendar Years for withholding tax audit | 2008 through 2012 | ||
Potential liability for withholding tax audit | $ 2,000 | ||
Estimated interest and penalties | 1,300 | ||
Probable liability for withholding tax audit | $ 1,100 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2015USD ($)Customer | Jun. 30, 2014USD ($)Customer | Jun. 30, 2013USD ($)Customer | |
Revenue by geographic region [Abstract] | |||||||||||
Total revenues | $ 94,389 | $ 85,002 | $ 90,867 | $ 90,431 | $ 88,619 | $ 82,401 | $ 84,485 | $ 84,287 | $ 360,689 | $ 339,792 | $ 313,543 |
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Total | 20,419 | 19,601 | $ 20,419 | $ 19,601 | |||||||
Number of major customers | Customer | 1 | 1 | 1 | ||||||||
Revenue [Member] | |||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Revenue from one value added distributor accounted more than 10% (in hundredths) | 26.00% | 25.00% | 22.00% | ||||||||
Reportable Geographical Components [Member] | United States of America [Member] | |||||||||||
Revenue by geographic region [Abstract] | |||||||||||
Total revenues | $ 331,337 | $ 308,609 | $ 283,276 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Total | 19,505 | 18,704 | 19,505 | 18,704 | |||||||
Reportable Geographical Components [Member] | International [Member] | |||||||||||
Revenue by geographic region [Abstract] | |||||||||||
Total revenues | 29,352 | 31,183 | $ 30,267 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Total | $ 914 | $ 897 | $ 914 | $ 897 |
DERIVATIVE INSTRUMENTS AND HE51
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) € in Thousands, £ in Thousands, CAD in Thousands, AUD in Thousands, $ in Thousands | Jun. 30, 2015USD ($) | Jun. 30, 2015AUD | Jun. 30, 2015GBP (£) | Jun. 30, 2015EUR (€) | Jun. 30, 2015CAD | Jun. 30, 2014USD ($) | Jun. 30, 2014AUD | Jun. 30, 2014GBP (£) | Jun. 30, 2014EUR (€) |
Derivative [Line Items] | |||||||||
Notional contract amount | $ 5,573 | $ 6,431 | |||||||
Australian Dollar [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional contract amount | 1,840 | AUD 2,420 | 986 | AUD 1,060 | |||||
British Pound [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional contract amount | 1,429 | £ 910 | 4,303 | £ 2,540 | |||||
Canadian Dollar [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional contract amount | 596 | CAD 750 | |||||||
Euro [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional contract amount | $ 1,708 | € 1,550 | $ 1,142 | € 840 |
EMPLOYEE 401(K) PLAN (Details)
EMPLOYEE 401(K) PLAN (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
EMPLOYEE 401(K) PLAN [Abstract] | |||
Minimum voluntary tax deferred contributions of gross compensation (in hundredths) | 1.00% | ||
Maximum voluntary tax deferred contributions of gross compensation (in hundredths) | 20.00% | ||
Employer matching contributions | $ 500,000 | $ 0 | $ 0 |
Employer matching contributions, maximum amount per employee | $ 1,500 |
QUARTERLY FINANCIAL DATA (Una53
QUARTERLY FINANCIAL DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract] | |||||||||||
Total revenues | $ 94,389 | $ 85,002 | $ 90,867 | $ 90,431 | $ 88,619 | $ 82,401 | $ 84,485 | $ 84,287 | $ 360,689 | $ 339,792 | $ 313,543 |
Gross profit | 59,637 | 49,949 | 55,290 | 53,778 | 52,796 | 48,090 | 49,859 | 51,176 | 218,654 | 201,921 | 188,452 |
Net income (loss) | $ 4,757 | $ (2,594) | $ (6,842) | $ 366 | $ 2,143 | $ (1,204) | $ (940) | $ (1,035) | $ (4,313) | $ (1,036) | $ (25,702) |
Basic net income (loss) per common share (in dollars per share) | $ 0.07 | $ (0.04) | $ (0.11) | $ 0.01 | $ 0.03 | $ (0.02) | $ (0.02) | $ (0.02) | |||
Diluted net income (loss) per common share (in dollars per share) | $ 0.07 | $ (0.04) | $ (0.11) | $ 0.01 | $ 0.03 | $ (0.02) | $ (0.02) | $ (0.02) |