ShoreTel (SHOR) 10-Q 6 Nov 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2015	Oct. 23, 2015
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 Common Stock, Shares Outstanding		65,592,401
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 96,532	$ 82,162
Short-term investments	9,597	8,025
Accounts receivable, net of allowances of $631 as of both September 30, 2015 and June 30, 2015	28,502	36,494
Inventories	13,453	15,053
Prepaid expenses and other current assets	11,180	11,616
Total current assets	159,264	153,350
Property and equipment, net	19,759	20,419
Goodwill	122,750	122,750
Intangible assets, net	20,302	22,217
Other assets	4,325	3,793
Total assets	326,400	322,529
Current liabilities:
Accounts payable	14,150	16,452
Accrued liabilities and other	19,742	19,374
Accrued employee compensation	14,598	15,311
Accrued taxes and surcharges	8,485	9,902
Deferred revenue	52,134	49,624
Total current liabilities	109,109	110,663
Long-term deferred revenue	17,815	17,624
Other long-term liabilities	4,402	4,014
Total liabilities	$ 131,326	$ 132,301
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, par value $.001 per share, authorized 5,000 shares; no shares issued and outstanding	$ 0	$ 0
Common stock and additional paid-in capital, par value $.001 per share, authorized 500,000; issued and outstanding, 65,506 and 65,055 shares as of September 30, 2015 and June 30, 2015, respectively	364,400	361,691
Accumulated other comprehensive income (loss)	(1)	4
Accumulated deficit	(169,325)	(171,467)
Total stockholders' equity	195,074	190,228
Total liabilities and stockholders' equity	$ 326,400	$ 322,529

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Current assets:
Accounts receivable, allowances	$ 631	$ 631
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)	65,506	65,055
Common stock, outstanding (in shares)	65,506	65,055

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Product	$ 41,533	$ 47,707
Hosted and related services	29,562	24,891
Support and services	19,090	17,833
Total revenue	90,185	90,431
Cost of revenue:
Product	13,481	16,779
Hosted and related services	13,959	15,593
Support and services	4,705	4,281
Total cost of revenue	32,145	36,653
Gross profit	58,040	53,778
Operating expenses:
Research and development	13,837	13,661
Sales and marketing	30,843	29,016
General and administrative	10,115	9,991
Total operating expenses	54,795	52,668
Income from operations	3,245	1,110
Other income (expense):
Interest expense	(124)	(152)
Interest income and other (expense), net	(576)	(214)
Total other expense	(700)	(366)
Income before provision for income taxes	2,545	744
Provision for income taxes	403	378
Net income	$ 2,142	$ 366
Net income per share - basic (in dollars per share)	$ 0.03	$ 0.01
Net income per share - diluted (in dollars per share)	$ 0.03	$ 0.01
Shares used in computing net income per share - basic (in shares)	65,266	62,967
Shares used in computing net income per share - diluted (in shares)	66,978	64,571

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net income	$ 2,142	$ 366
Other comprehensive loss, net of tax:
Unrealized loss on short-term investments	(5)	(7)
Other comprehensive loss	(5)	(7)
Comprehensive income	$ 2,137	$ 359

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,142	$ 366
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,833	5,014
Stock-based compensation expense	2,772	2,539
Amortization of premium on investments	29	14
Provision for doubtful accounts receivable	75	25
Changes in assets and liabilities:
Accounts receivable	7,917	6,098
Inventories	1,699	2,340
Indemnification asset	0	(53)
Prepaid expenses and other current assets	436	(2,788)
Other assets	(532)	(8)
Accounts payable	(1,100)	(3,224)
Accrued liabilities and other	724	1,685
Accrued employee compensation	(713)	(2,803)
Accrued taxes and surcharges	(1,417)	(786)
Deferred revenue	2,701	2,691
Net cash provided by operating activities	19,566	11,110
CASH FLOWS FROM INVESTING ACTIVITES:
Purchases of property and equipment	(3,513)	(3,259)
Purchases of investments	(4,217)	(4,197)
Proceeds from sale/maturities of investments	2,611	1,450
Purchases of patents, technology and internally developed software	0	(568)
Net cash used in investing activities	(5,119)	(6,574)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	904	333
Taxes paid on vested and released stock awards	(967)	(837)
Payments made under capital leases	(14)	(221)
Net cash used in financing activities	(77)	(725)
NET INCREASE IN CASH AND CASH EQUIVALENTS	14,370	3,811
CASH AND CASH EQUIVALENTS - Beginning of period	82,162	53,472
CASH AND CASH EQUIVALENTS - End of period	96,532	57,283
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Cash paid for interest	12	131
Cash paid for taxes	648	221
NONCASH INVESTING AND FINANCING ACTIVITIES:
Unpaid portion of property and equipment purchases included in period-end accruals	$ 116	$ 69

Description of Business

Description of Business	3 Months Ended
	Sep. 30, 2015
Description of Business [Abstract]
Description of Business	1. Description of Business 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 “ShoreTel” or “the Company”) is a leading provider of brilliantly simple business communication solutions, comprised of integrated voice, video, data and mobile applications based on Internet Protocol (“IP”) technologies.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Sep. 30, 2015
Basis of Presentation and Significant Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	2. Basis of Presentation and Significant Accounting Policies The accompanying condensed consolidated financial statements as of September 30, 2015, and for the three months ended September 30, 2015 and 2014 have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement have been included. The condensed consolidated balance sheet as of June 30, 2015 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015. The results of operations for the three months ended September 30, 2015 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future periods. Computation of Net Income per Share Basic net income per share is determined by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is determined by dividing net income by the weighted average number of common shares used in the basic income per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding under the treasury stock method. Dilutive securities of 3.0 million weighted shares and 2.6 million weighted shares were not included in the computation of diluted net income per share for the three months ended September 30, 2015 and 2014, respectively because such securities were anti-dilutive. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, cash equivalents, short-term investments and accounts receivable. As of September 30, 2015, all of the Company’s cash, cash equivalents and short-term investments were managed by several financial institutions. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. At June 30, 2015 the same value-added distributor accounted for 33% of the total accounts receivable Significant Accounting Policies The Company’s significant accounting policies are included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. Recent Accounting Pronouncements 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) In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)

Balance Sheet Details

Balance Sheet Details	3 Months Ended
	Sep. 30, 2015
Balance Sheet Details [Abstract]
Balance Sheet Details	3. Balance Sheet Details Balance sheet components consist of the following: September 30, 2015 June 30, 2015 (in thousands) Inventories: Raw materials $ 88 $ 92 Distributor inventory 1,511 965 Finished goods 11,854 13,996 Total inventories $ 13,453 $ 15,053 Property and equipment: Computer equipment and tooling $ 43,387 $ 41,532 Software 5,449 5,211 Furniture and fixtures 3,430 3,421 Leasehold improvements and others 8,119 8,149 Total property and equipment 60,385 58,313 Less accumulated depreciation and amortization (40,626 ) (37,894 ) Property and equipment, net $ 19,759 $ 20,419 Deferred revenue: Product $ 5,640 $ 2,912 Support and services 58,371 57,967 Hosted and related services 5,938 6,369 Total deferred revenue $ 69,949 $ 67,248 Depreciation expense for the three months ended September 30, 2015 and 2014 was $2.9 million and $2.6 million, respectively. Intangible Assets: Intangible assets consist of the following (in thousands): September 30, 2015 June 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 4,446 $ (3,730 ) $ 716 $ 4,446 $ (3,640 ) $ 806 Technology 28,034 (19,877 ) 8,157 26,644 (18,874 ) 7,770 Customer relationships 23,300 (11,871 ) 11,429 23,300 (11,049 ) 12,251 Intangible assets in process and other - - - 1,390 - 1,390 Intangible assets $ 55,780 $ (35,478 ) $ 20,302 $ 55,780 $ (33,563 ) $ 22,217 The intangible assets that are amortizable have estimated useful lives of two to eight years. Research and development costs are expensed as incurred. In accordance with ASC 985-20, Costs of Computer Software to be Sold, Leased, or Marketed Certain internally developed software became available for general release to customers during the three months ended September 30, 2015; at which time, an aggregate of $1.4 million in software development costs were transferred from intangible assets in process and other to technology in the table above, and the amortization expense is being recognized related to these capitalized software costs. Amortization of intangible assets for the three months ended September 30, 2015 and 2014 was $1.9 million and $2.2 million, respectively. The estimated amortization expenses for intangible assets as of September 30, 2015 for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2016 (remaining 9 months) $ 5,969 2017 6,505 2018 4,510 2019 3,022 2020 296 Thereafter - Total $ 20,302 Short-Term Investments: The following tables summarize the Company’s short-term investments (in thousands): Amortized Gross Unrealized Gross Unrealized Fair Value As of September 30, 2015 Corporate notes and commercial paper $ 9,598 $ 4 $ (5 ) $ 9,597 Total short-term investments $ 9,598 $ 4 $ (5 ) $ 9,597 As of June 30, 2015 Corporate notes and commercial paper $ 8,021 $ 4 $ - $ 8,025 Total short-term investments $ 8,021 $ 4 $ - $ 8,025 The following table summarizes the maturities of the Company’s fixed income securities (in thousands): Amortized Cost Fair Value As of September 30, 2015 Less than 1 year $ 6,452 $ 6,451 Due in 1 to 3 years 3,146 3,146 Total $ 9,598 $ 9,597 Amortized Cost Fair Value As of June 30, 2015 Less than 1 year $ 6,696 $ 6,702 Due in 1 to 3 years 1,325 1,323 $ 8,021 $ 8,025 Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations.

Fair Value Disclosure

Fair Value Disclosure	3 Months Ended
	Sep. 30, 2015
Fair Value Disclosure [Abstract]
Fair Value Disclosure	4. 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 the Company’s 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 financial instruments and liabilities measured at fair value on a recurring basis (in thousands): September 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 2,437 $ 2,437 $ - $ - Short-term investments: Corporate notes and commercial paper 9,597 - 9,597 - Total assets measured and recorded at fair value $ 12,034 $ 2,437 $ 9,597 $ - The above table excludes $94.1 million of cash balances on deposit at banks. 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. 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 and U.S. Government agency securities. The Company reviewed financial and non-financial assets and liabilities and concluded that there were no other-than-temporary impairment charges during the three months ended September 30, 2015 and 2014, respectively. 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 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 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 the Company’s market capitalization. There were no indicators of impairment in the three months ended September 30, 2015 that required a nonrecurring fair value analysis to be performed on non-financial assets.

Line of Credit

Line of Credit	3 Months Ended
	Sep. 30, 2015
Line of Credit [Abstract]
Line of Credit	5. Line of Credit On October 22, 2014 the Company entered into an Amended and Restated Credit Agreement which was further 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 September 30, 2015. As of September 30, 2015, no amounts were outstanding under the New Credit Facility. The Company amortizes deferred financing costs to interest expense on a straight-line basis over the term of the New Credit Facility.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2015
Income Taxes [Abstract]
Income Taxes	6. Income Taxes The Company recorded an income tax provision of $0.4 million for both the three months ended September 30, 2015 and 2014. The tax provision primarily consists of income tax provisions for federal alternative minimum tax, tax provisions for profitable foreign jurisdictions based upon income earned during the period and state tax provisions, including certain states that are determined on a basis other than income earned. No income tax benefit was accrued for jurisdictions where the Company anticipates incurring a loss during the full fiscal year as the related deferred tax assets were fully offset by a valuation allowance. The Company maintains liabilities for uncertain tax positions. As of both September 30, 2015 and June 30, 2015, the Company’s total amount of unrecognized tax benefit was $5.1 million. Of the total of $5.1 million of unrecognized tax benefit as of September 30, 2015, none, if recognized, would impact the effective tax rate. The Company does not expect its unrecognized tax benefits to change materially over the next 12 months. 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 Company’s current position. Accordingly, the Company’s provisions for federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or as the underlying matters are settled or otherwise resolved. The Company’s primary tax jurisdiction is in 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	3 Months Ended
	Sep. 30, 2015
Common Stock [Abstract]
Common Stock	7. Common Stock Common Shares Reserved for Issuance At September 30, 2015, the Company has reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 18,780 Reserved under employee stock purchase plan 722 Total 19,502

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Sep. 30, 2015
Stock-Based Compensation [Abstract]
Stock-Based Compensation	8. Stock-Based Compensation The following table shows total non-cash stock-based compensation expense included in the accompanying Condensed Consolidated Statements Income for the three months ended September 30, 2015 and 2014 (in thousands): Three Months Ended 2015 2014 Cost of product revenue $ 29 $ 36 Cost of hosted and related services revenue 384 343 Cost of support and services revenue 212 180 Research and development 487 658 Sales and marketing 862 711 General and administrative 798 611 $ 2,772 $ 2,539 The Company estimated the grant date fair value of stock option awards and Employee Stock Purchase Plan (“ESPP”) rights using the Black-Scholes option valuation model with the following assumptions: Three Months Ended 2015 2014 Expected life from grant date of option (in years) 5.13 5.09 Expected life from grant date of ESPP (in years) 0.50 0.50 Risk free interest rate for options 1.55% 1.70% Risk free interest rate for ESPP 0.14% 0.06% Expected volatility for options 48% 50% Expected volatility for ESPP 35% 43% Expected dividend yield 0% 0% Compensation expense is recognized only for the portion of stock options that are expected to vest, assuming an expected forfeiture rate in determining stock-based compensation expense, which could affect the stock-based compensation expense recorded if there is a significant difference between actual and estimated forfeiture rates. As of September 30, 2015, total unrecognized compensation cost related to stock-based options and awards granted to employees and non-employee directors was $9.9 million. This cost will be amortized on a ratable basis over a weighted-average vesting period of approximately 3.0 years.

Stock Option Plan

Stock Option Plan	3 Months Ended
	Sep. 30, 2015
Stock Option Plan [Abstract]
Stock Option Plan	9. Stock Option Plan Transactions under the 1997 and 2007 option plans are summarized as follows (in thousands, except per share data and contractual term): Options Outstanding Shares Subject to Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance at July 1, 2015 6,263 $ 5.72 Options granted (weighted average fair value $3.19 per share) 1,395 7.30 Options exercised (193 ) 4.66 Options cancelled/forfeited (106 ) 6.48 Balance at September 30, 2015 7,359 $ 6.04 6.75 $ 11,837 Vested and expected to vest at September 30, 2015 6,138 $ 5.90 6.26 $ 10,875 Options exercisable at September 30, 2015 4,039 $ 5.72 4.93 $ 8,279 The total pre-tax intrinsic value for options exercised during the three months ended September 30, 2015 and 2014 was $0.5 million and $0.1 million, respectively ,

Employee Stock Purchase Plan

Employee Stock Purchase Plan	3 Months Ended
	Sep. 30, 2015
Employee Stock Purchase Plan [Abstract]
Employee Stock Purchase Plan	10. Employee Stock Purchase Plan 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 1 st st 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.

Restricted Stock

Restricted Stock	3 Months Ended
	Sep. 30, 2015
Restricted Stock [Abstract]
Restricted Stock	11. Restricted Stock Under the 2007 Plan, during the three months ended September 30, 2015 and 2014 the Company issued fully vested restricted stock awards to non-employee directors electing to receive them in lieu of an annual cash retainer. In addition, restricted stock units can be issued under the 2007 Plan to eligible employees. Restricted stock award and restricted stock unit activity for the three months ended September 30, 2015 and 2014 is as follows (in thousands): Three Months Ended 2015 2014 Beginning outstanding 1,452 1,394 Awarded 822 693 Released (386 ) (367 ) Forfeited (53 ) (55 ) Ending outstanding 1,835 1,665 Information regarding restricted stock awards and restricted stock units outstanding at September 30, 2015 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Lives Aggregate Intrinsic Value Shares outstanding 1,835 1.88 $ 13,708 Shares expected to vest 1,044 1.52 $ 7,799

Litigation, Commitments, Contin

Litigation, Commitments, Contingencies and Leases	3 Months Ended
	Sep. 30, 2015
Litigation, Commitments, Contingencies and Leases [Abstract]
Litigation, Commitments, Contingencies and Leases	12. Litigation, Commitments, Contingencies and Leases Litigation Contingencies — Leases Years Ending June 30, Operating Leases Capital Leases 2016 (remaining 9 months) $ 4,844 36 2017 6,391 10 2018 5,808 - 2019 4,479 - 2020 3,035 - Therafter 2,682 - Total minimum lease payments $ 27,239 46 Less: amount representing interest - Present value of total minimum lease payments 46 Less: current portion liability (36 ) Capital lease obligation, net of current portion $ 10 The current portion of the capital leases is included in accrued liabilities and other on the condensed consolidated balance sheet. The non-current portion of the capital leases is included in the 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 in the above table to U.S. dollars at the interbank exchange rate on September 30, 2015. Rent expense for the three months September 30, 2015 and 2014 was $1.2 million and $1.1 million, respectively. Purchase commitments Letters of credit — Outstanding letters of credit maintained by the Company totaled $635,000 as of September 30, 2015. Indemnification — The Company also has entered into customary indemnification agreements with each of its officers and directors.

Segment Information

Segment Information	3 Months Ended
	Sep. 30, 2015
Segment Information [Abstract]
Segment Information	13. 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): Three Months Ended September 30, 2015 2014 United States of America $ 82,831 $ 83,467 International 7,354 6,964 Total $ 90,185 $ 90,431 Revenue from one value-added distributor accounted for approximately 26% and 28% of the total revenue during the three months ended September 30, 2015 and 2014, respectively. The Company’s assets are primarily located in the United States of America and not allocated to any specific region; furthermore, the Company does not measure the performance of its geographic regions based upon asset-based metrics. The following presents a summary of long-lived assets, excluding deferred tax assets, other assets, goodwill and intangible assets (in thousands): September 30, 2015 June 30, 2015 United States of America $ 18,928 $ 19,505 International 831 914 Total $ 19,759 $ 20,419

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Sep. 30, 2015
Derivative Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities	14. 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 three months ended September 30, 2015, 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. These derivatives have maturities of approximately one month. The foreign exchange forward contracts outstanding as of September 30, 2015 are entered into by the Company on the last business day of the period. Given the relatively short duration such contracts are outstanding in relation to changes in potential market rates, the change in the fair value is not material and is not reflected either as an asset or a liability. The following table presents the gross notional value of all of the Company’s foreign exchange forward contracts outstanding as of September 30, 2015 and June 30, 2015 (in thousands): September 30, 2015 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 2,270 $ 1,578 British pound £ 1,270 1,905 Canadian dollar $ 560 417 Euro £ 1,450 1,610 Total $ 5,510 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

Subsequent Event

Subsequent Event	3 Months Ended
	Sep. 30, 2015
Subsequent Event [Abstract]
Subsequent Event	15. Subsequent Event On November 1, 2015, the Company entered into a Share Purchase Agreement for the acquisition of M5 Networks Australia Pty., a provider of hosted unified communication systems. The aggregate consideration for the acquisition consists of 8.5 million Australian dollars (approximately $6.1 million). The acquisition is anticipated to close during the three months ended December 31, 2015.

Basis of Presentation and Sig22

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2015
Basis of Presentation and Significant Accounting Policies [Abstract]
Computation of Net Income per Share	Computation of Net Income per Share Basic net income per share is determined by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is determined by dividing net income by the weighted average number of common shares used in the basic income per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding under the treasury stock method. Dilutive securities of 3.0 million weighted shares and 2.6 million weighted shares were not included in the computation of diluted net income per share for the three months ended September 30, 2015 and 2014, respectively because such securities were anti-dilutive.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, cash equivalents, short-term investments and accounts receivable. As of September 30, 2015, all of the Company’s cash, cash equivalents and short-term investments were managed by several financial institutions. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. At June 30, 2015 the same value-added distributor accounted for 33% of the total accounts receivable
Significant Accounting Policies	Significant Accounting Policies The Company’s significant accounting policies are included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015.
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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) In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	3 Months Ended
	Sep. 30, 2015
Balance Sheet Details [Abstract]
Balance sheet components	Balance sheet components consist of the following: September 30, 2015 June 30, 2015 (in thousands) Inventories: Raw materials $ 88 $ 92 Distributor inventory 1,511 965 Finished goods 11,854 13,996 Total inventories $ 13,453 $ 15,053 Property and equipment: Computer equipment and tooling $ 43,387 $ 41,532 Software 5,449 5,211 Furniture and fixtures 3,430 3,421 Leasehold improvements and others 8,119 8,149 Total property and equipment 60,385 58,313 Less accumulated depreciation and amortization (40,626 ) (37,894 ) Property and equipment, net $ 19,759 $ 20,419 Deferred revenue: Product $ 5,640 $ 2,912 Support and services 58,371 57,967 Hosted and related services 5,938 6,369 Total deferred revenue $ 69,949 $ 67,248
Summary of intangible assets	Intangible assets consist of the following (in thousands): September 30, 2015 June 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 4,446 $ (3,730 ) $ 716 $ 4,446 $ (3,640 ) $ 806 Technology 28,034 (19,877 ) 8,157 26,644 (18,874 ) 7,770 Customer relationships 23,300 (11,871 ) 11,429 23,300 (11,049 ) 12,251 Intangible assets in process and other - - - 1,390 - 1,390 Intangible assets $ 55,780 $ (35,478 ) $ 20,302 $ 55,780 $ (33,563 ) $ 22,217
Estimated amortization expenses for intangible assets	The estimated amortization expenses for intangible assets as of September 30, 2015 for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2016 (remaining 9 months) $ 5,969 2017 6,505 2018 4,510 2019 3,022 2020 296 Thereafter - Total $ 20,302
Summary of short-term investments	The following tables summarize the Company’s short-term investments (in thousands): Amortized Gross Unrealized Gross Unrealized Fair Value As of September 30, 2015 Corporate notes and commercial paper $ 9,598 $ 4 $ (5 ) $ 9,597 Total short-term investments $ 9,598 $ 4 $ (5 ) $ 9,597 As of June 30, 2015 Corporate notes and commercial paper $ 8,021 $ 4 $ - $ 8,025 Total short-term investments $ 8,021 $ 4 $ - $ 8,025
Schedule of maturities of fixed income securities	The following table summarizes the maturities of the Company’s fixed income securities (in thousands): Amortized Cost Fair Value As of September 30, 2015 Less than 1 year $ 6,452 $ 6,451 Due in 1 to 3 years 3,146 3,146 Total $ 9,598 $ 9,597 Amortized Cost Fair Value As of June 30, 2015 Less than 1 year $ 6,696 $ 6,702 Due in 1 to 3 years 1,325 1,323 $ 8,021 $ 8,025

Fair Value Disclosure (Tables)

Fair Value Disclosure (Tables)	3 Months Ended
	Sep. 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 financial instruments and liabilities measured at fair value on a recurring basis (in thousands): September 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 2,437 $ 2,437 $ - $ - Short-term investments: Corporate notes and commercial paper 9,597 - 9,597 - Total assets measured and recorded at fair value $ 12,034 $ 2,437 $ 9,597 $ - The above table excludes $94.1 million of cash balances on deposit at banks. 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 $ -

Common Stock (Tables)

Common Stock (Tables)	3 Months Ended
	Sep. 30, 2015
Common Stock [Abstract]
Reserved shares of common stock for issuance	At September 30, 2015, the Company has reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 18,780 Reserved under employee stock purchase plan 722 Total 19,502

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2015
Stock-Based Compensation [Abstract]
Stock-based compensation expense	The following table shows total non-cash stock-based compensation expense included in the accompanying Condensed Consolidated Statements Income for the three months ended September 30, 2015 and 2014 (in thousands): Three Months Ended 2015 2014 Cost of product revenue $ 29 $ 36 Cost of hosted and related services revenue 384 343 Cost of support and services revenue 212 180 Research and development 487 658 Sales and marketing 862 711 General and administrative 798 611 $ 2,772 $ 2,539
Estimated grant date fair value of stock option awards and Employee Stock Purchase Plan (ESPP) rights using the Black-Scholes option valuation model	The Company estimated the grant date fair value of stock option awards and Employee Stock Purchase Plan (“ESPP”) rights using the Black-Scholes option valuation model with the following assumptions: Three Months Ended 2015 2014 Expected life from grant date of option (in years) 5.13 5.09 Expected life from grant date of ESPP (in years) 0.50 0.50 Risk free interest rate for options 1.55% 1.70% Risk free interest rate for ESPP 0.14% 0.06% Expected volatility for options 48% 50% Expected volatility for ESPP 35% 43% Expected dividend yield 0% 0%

Stock Option Plan (Tables)

Stock Option Plan (Tables)	3 Months Ended
	Sep. 30, 2015
Stock Option Plan [Abstract]
Schedule of stock options activity	Transactions under the 1997 and 2007 option plans are summarized as follows (in thousands, except per share data and contractual term): Options Outstanding Shares Subject to Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance at July 1, 2015 6,263 $ 5.72 Options granted (weighted average fair value $3.19 per share) 1,395 7.30 Options exercised (193 ) 4.66 Options cancelled/forfeited (106 ) 6.48 Balance at September 30, 2015 7,359 $ 6.04 6.75 $ 11,837 Vested and expected to vest at September 30, 2015 6,138 $ 5.90 6.26 $ 10,875 Options exercisable at September 30, 2015 4,039 $ 5.72 4.93 $ 8,279

Restricted Stock (Tables)

Restricted Stock (Tables)	3 Months Ended
	Sep. 30, 2015
Restricted Stock [Abstract]
Restricted stock award and restricted stock unit activity	Restricted stock award and restricted stock unit activity for the three months ended September 30, 2015 and 2014 is as follows (in thousands): Three Months Ended 2015 2014 Beginning outstanding 1,452 1,394 Awarded 822 693 Released (386 ) (367 ) Forfeited (53 ) (55 ) Ending outstanding 1,835 1,665
Information regarding restricted stock awards and restricted stock units outstanding	Information regarding restricted stock awards and restricted stock units outstanding at September 30, 2015 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Lives Aggregate Intrinsic Value Shares outstanding 1,835 1.88 $ 13,708 Shares expected to vest 1,044 1.52 $ 7,799

Litigation, Commitments, Cont29

Litigation, Commitments, Contingencies and Leases (Tables)	3 Months Ended
	Sep. 30, 2015
Litigation, Commitments, Contingencies and Leases [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 September 30, 2015, are as follows (in thousands): Years Ending June 30, Operating Leases Capital Leases 2016 (remaining 9 months) $ 4,844 36 2017 6,391 10 2018 5,808 - 2019 4,479 - 2020 3,035 - Therafter 2,682 - Total minimum lease payments $ 27,239 46 Less: amount representing interest - Present value of total minimum lease payments 46 Less: current portion liability (36 ) Capital lease obligation, net of current portion $ 10

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Sep. 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): Three Months Ended September 30, 2015 2014 United States of America $ 82,831 $ 83,467 International 7,354 6,964 Total $ 90,185 $ 90,431 The following presents a summary of long-lived assets, excluding deferred tax assets, other assets, goodwill and intangible assets (in thousands): September 30, 2015 June 30, 2015 United States of America $ 18,928 $ 19,505 International 831 914 Total $ 19,759 $ 20,419

Derivative Instruments and He31

Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Sep. 30, 2015
Derivative Instruments and Hedging Activities [Abstract]
Notional amounts of outstanding derivative positions	The following table presents the gross notional value of all of the Company’s foreign exchange forward contracts outstanding as of September 30, 2015 and June 30, 2015 (in thousands): September 30, 2015 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 2,270 $ 1,578 British pound £ 1,270 1,905 Canadian dollar $ 560 417 Euro £ 1,450 1,610 Total $ 5,510 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

Description of Business (Detail

Description of Business (Details)	Sep. 30, 2015User
Description of Business [Abstract]
Maximum users for small and medium sized businesses	5,000

Basis of Presentation and Sig33

Basis of Presentation and Significant Accounting Policies (Details) - shares shares in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Computation of Net Income (Loss) per Share [Abstract]
Diluted securities not included in computation of diluted net loss per share as result would have been anti-dilutive (in shares)	3	2.6
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	37.00%		33.00%

Balance Sheet Details (Details)

Balance Sheet Details (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Inventories [Abstract]
Raw materials	$ 88		$ 92
Distributor inventory	1,511		965
Finished goods	11,854		13,996
Total inventories	13,453		15,053
Property and equipment [Abstract]
Total property and equipment	60,385		58,313
Less accumulated depreciation and amortization	(40,626)		(37,894)
Property and equipment, net	19,759		20,419
Depreciation expense	2,900	$ 2,600
Deferred revenue [Abstract]
Total deferred revenue	69,949		67,248
Intangible Assets [Abstract]
Gross Carrying Amount	55,780		55,780
Accumulated Amortization	(35,478)		(33,563)
Net Carrying Amount	20,302		22,217
Transferred from intangible assets in process and other to technology	1,400
Amortization of intangible assets	1,900	$ 2,200
Estimated future amortization expenses for intangible assets [Abstract]
2016 (remaining 9 months)	5,969
2,017	6,505
2,018	4,510
2,019	3,022
2,020	296
Thereafter	0
Total	20,302
Short-term investments [Abstract]
Amortized Cost	9,598		8,021
Gross Unrealized Gains	4		4
Gross Unrealized Losses	(5)		0
Fair Value	9,597		8,025
Amortized Cost [Abstract]
Less than 1 year	6,452		6,696
Due in 1 to 3 years	3,146		1,325
Amortized Cost	9,598		8,021
Fair Value [Abstract]
Less than 1 year	6,451		6,702
Due in 1 to 3 years	3,146		1,323
Fair Value	$ 9,597		8,025
Minimum [Member]
Intangible Assets [Abstract]
Useful lives of intangible assets	2 years
Maximum [Member]
Intangible Assets [Abstract]
Useful lives of intangible assets	8 years
Computer Equipment and Tooling [Member]
Property and equipment [Abstract]
Total property and equipment	$ 43,387		41,532
Software [Member]
Property and equipment [Abstract]
Total property and equipment	5,449		5,211
Furniture and Fixtures [Member]
Property and equipment [Abstract]
Total property and equipment	3,430		3,421
Leaseholds Improvements and Others [Member]
Property and equipment [Abstract]
Total property and equipment	8,119		8,149
Corporate Notes and Commercial Paper [Member]
Short-term investments [Abstract]
Amortized Cost	9,598		8,021
Gross Unrealized Gains	4		4
Gross Unrealized Losses	(5)		0
Fair Value	9,597		8,025
Amortized Cost [Abstract]
Amortized Cost	9,598		8,021
Fair Value [Abstract]
Fair Value	9,597		8,025
Patents [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	4,446		4,446
Accumulated Amortization	(3,730)		(3,640)
Net Carrying Amount	716		806
Technology [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	28,034		26,644
Accumulated Amortization	(19,877)		(18,874)
Net Carrying Amount	8,157		7,770
Customer Relationships [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	23,300		23,300
Accumulated Amortization	(11,871)		(11,049)
Net Carrying Amount	11,429		12,251
Intangible Assets in Process and Other [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	0		1,390
Accumulated Amortization	0		0
Net Carrying Amount	0		1,390
Product [Member]
Deferred revenue [Abstract]
Total deferred revenue	5,640		2,912
Support and Services [Member]
Deferred revenue [Abstract]
Total deferred revenue	58,371		57,967
Hosted and Related Services [Member]
Deferred revenue [Abstract]
Total deferred revenue	$ 5,938		$ 6,369

Fair Value Disclosure (Details)

Fair Value Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Assets [Abstract]
Short-term investments	$ 9,597	$ 8,025
Total assets measured and recorded at fair value	12,034	12,050
Cash balances on deposit at banks	94,100	78,100
Level 1 [Member]
Assets [Abstract]
Total assets measured and recorded at fair value	2,437	4,025
Level 2 [Member]
Assets [Abstract]
Total assets measured and recorded at fair value	9,597	8,025
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	2,437	4,025
Money Market Funds [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents	2,437	4,025
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	9,597	8,025
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	9,597	8,025
Corporate Notes and Commercial Paper [Member] | Level 3 [Member]
Assets [Abstract]
Short-term investments	$ 0	$ 0

Line of Credit (Details)

Line of Credit (Details) $ in Millions	3 Months Ended
	Sep. 30, 2015USD ($)
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	0.50%
Minimum [Member] | Federal Funds Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.00%
Minimum [Member] | London Interbank Offered Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.50%
Minimum [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.00%
Maximum [Member] | Federal Funds Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Maximum [Member] | London Interbank Offered Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	2.25%
Maximum [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.50%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Income Tax Contingency [Line Items]
Income tax provision	$ 403	$ 378
Unrecognized tax benefits	5,100		$ 5,100
Unrecognized tax benefits that would impact effective tax rate if recognized	0
Expected change in unrecognized tax benefits in next fiscal year	$ 0
Maximum [Member]
Income Tax Contingency [Line Items]
Open tax years	2,014
Minimum [Member]
Income Tax Contingency [Line Items]
Open tax years	2,002

Common Stock (Details)

Common Stock (Details) shares in Thousands	Sep. 30, 2015shares
Share-based Compensation Awards [Line Items]
Common stock shares reserved for issuance (in shares)	19,502
Reserved Under Stock Option Plans [Member]
Share-based Compensation Awards [Line Items]
Common stock shares reserved for issuance (in shares)	18,780
Reserved Under Employee Stock Purchase Plan [Member]
Share-based Compensation Awards [Line Items]
Common stock shares reserved for issuance (in shares)	722

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 2,772	$ 2,539
Black-Scholes option valuation assumptions [Abstract]
Expected dividend yield	0.00%	0.00%
Unrecognized compensation cost related to stock options and awards granted to employees and non-employee directors	$ 9,900
Period to recognize unrecognized compensation cost	3 years
Cost of Product Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 29	$ 36
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	384	343
Cost of Support and Services Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	212	180
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	487	658
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	862	711
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 798	$ 611
Stock Options [Member]
Black-Scholes option valuation assumptions [Abstract]
Expected life from grant date	5 years 1 month 17 days	5 years 1 month 2 days
Risk free interest rate	1.55%	1.70%
Expected volatility	48.00%	50.00%
Employee Stock Purchase Plan [Member]
Black-Scholes option valuation assumptions [Abstract]
Expected life from grant date	6 months	6 months
Risk free interest rate	0.14%	0.06%
Expected volatility	35.00%	43.00%

Stock Option Plan (Details)

Stock Option Plan (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Shares Subject to Options Outstanding [Roll Forward]
Balance (in shares)	6,263
Options granted (weighted average fair value $3.19 per share) (in shares)	1,395
Options exercised (in shares)	(193)
Options cancelled/forfeited (in shares)	(106)
Balance (in shares)	7,359
Vested and expected to vest (in shares)	6,138
Options exercisable (in shares)	4,039
Weighted-Average Exercise Price [Roll Forward]
Balance (in dollars per share)	$ 5.72
Options granted (weighted average fair value $3.19 per share) (in dollars per share)	7.30
Options exercised (in dollars per share)	4.66
Options cancelled/forfeited (in dollars per share)	6.48
Balance (in dollars per share)	6.04
Vested and expected to vest (in dollars per share)	5.90
Options exercisable (in dollars per share)	$ 5.72
Weighted Average Remaining Contractual Term [Abstract]
Balance	6 years 9 months
Vested and expected to vest	6 years 3 months 4 days
Options exercisable	4 years 11 months 5 days
Aggregate Intrinsic Value [Abstract]
Balance	$ 11,837
Vested and expected to vest	10,875
Options exercisable	$ 8,279
Weighted Average Grant Date Fair Value [Abstract]
Weighted average grant date fair value of options granted (in dollars per share)	$ 3.19
Total pre-tax intrinsic value for options exercised	$ 500	$ 100

Employee Stock Purchase Plan (D

Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan [Member]	3 Months Ended
	Sep. 30, 2015
Share-based Compensation Awards [Line Items]
Offering period for ESPP	6 months
Purchase price of share	85.00%

Restricted Stock (Details)

Restricted Stock (Details) - Restricted Stock Awards and Restricted Stock Units [Member] - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015
Restricted stock award and restricted stock unit activity [Roll Forward]
Beginning outstanding (in shares)	1,452	1,394
Awarded (in shares)	822	693
Released (in shares)	(386)	(367)
Forfeited (in shares)	(53)	(55)
Ending outstanding (in shares)	1,835	1,665
Information regarding restricted stock awards and restricted stock units outstanding [Abstract]
Shares outstanding, Number of Shares (in shares)	1,452	1,394	1,835
Shares expected to vest, Number of Shares (in shares)			1,044
Shares outstanding, Weighted Average Remaining Contractual Lives	1 year 10 months 17 days
Shares expected to vest, Weighted Average Remaining Contractual Lives	1 year 6 months 7 days
Shares outstanding, Aggregate Intrinsic Value			$ 13,708
Shares expected to vest, Aggregate Intrinsic Value			$ 7,799

Litigation, Commitments, Cont43

Litigation, Commitments, Contingencies and Leases (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Operating Leases [Abstract]
2016 (remaining 9 months)	$ 4,844,000
2,017	6,391,000
2,018	5,808,000
2,019	4,479,000
2,020	3,035,000
Thereafter	2,682,000
Total minimum lease payments	27,239,000
Capital Leases [Abstract]
2016 (remaining 9 months)	36,000
2,017	10,000
2,018	0
2,019	0
2,020	0
Thereafter	0
Total minimum lease payments	46,000
Less: amount representing interest	0
Present value of total minimum lease payments	46,000
Less: current portion liability	(36,000)
Capital lease obligation, net of current portion	10,000
Rent expense	1,200,000	$ 1,100,000
Purchase commitments [Abstract]
Purchase commitment with contract manufacturers	17,700,000		$ 14,900,000
Outstanding letters of credit	635,000
Internal Revenue Service (IRS) [Member]
Income Tax Contingency [Line Items]
Potential liability for withholding tax audit	2,000,000
Estimated interest and penalties	1,300,000
Probable liability for withholding tax audit	$ 1,100,000
Internal Revenue Service (IRS) [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Calendar year for withholding tax audit	2,012
Internal Revenue Service (IRS) [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Calendar year for withholding tax audit	2,008

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2015USD ($)Customer	Sep. 30, 2014USD ($)Customer	Jun. 30, 2015USD ($)
Revenue by geographic region [Abstract]
Total	$ 90,185	$ 90,431
Number of major customers | Customer	1	1
Geographic Areas, Long-Lived Assets [Abstract]
Total	$ 19,759		$ 20,419
Revenue [Member]
Revenue by geographic region [Abstract]
Revenue from one value added distributor	26.00%	28.00%
Reportable Geographical Components [Member] | United States of America [Member]
Revenue by geographic region [Abstract]
Total	$ 82,831	$ 83,467
Geographic Areas, Long-Lived Assets [Abstract]
Total	18,928		19,505
Reportable Geographical Components [Member] | International [Member]
Revenue by geographic region [Abstract]
Total	7,354	$ 6,964
Geographic Areas, Long-Lived Assets [Abstract]
Total	$ 831		$ 914

Derivative Instruments and He45

Derivative Instruments and Hedging Activities (Details) € in Thousands, £ in Thousands, CAD in Thousands, AUD in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2015AUD	Sep. 30, 2015CAD	Sep. 30, 2015EUR (€)	Sep. 30, 2015GBP (£)	Jun. 30, 2015USD ($)	Jun. 30, 2015AUD	Jun. 30, 2015CAD	Jun. 30, 2015EUR (€)	Jun. 30, 2015GBP (£)
Derivative [Line Items]
Derivative maturity period	1 month
Notional contract amount	$ 5,510					$ 5,573
Australian Dollar [Member]
Derivative [Line Items]
Notional contract amount	1,578	AUD 2,270				1,840	AUD 2,420
British Pound [Member]
Derivative [Line Items]
Notional contract amount	1,905				£ 1,270	1,429				£ 910
Canadian Dollar [Member]
Derivative [Line Items]
Notional contract amount	417		CAD 560			596		CAD 750
Euro [Member]
Derivative [Line Items]
Notional contract amount	$ 1,610			€ 1,450		$ 1,708			€ 1,550

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event [Member] AUD in Millions, $ in Millions	Nov. 01, 2015USD ($)	Nov. 01, 2015AUD
Subsequent Event [Line Items]
Acquisition agreement date	Nov. 1, 2015	Nov. 1, 2015
Aggregate consideration for acquisition	$ 6.1	AUD 8.5