Balance Sheet Details | 4. Balance Sheet Details Balance sheet components consist of the following: March 31, June 30, 2016 2015 (in thousands) Inventories: Raw materials $ 62 $ 92 Distributor inventory 1,375 965 Finished goods 14,032 13,996 Total inventories $ 15,469 $ 15,053 Property and equipment: Computer equipment and tooling $ 49,133 $ 41,532 Software 6,191 5,211 Furniture and fixtures 3,828 3,421 Leasehold improvements and others 8,573 8,149 Total property and equipment 67,725 58,313 Less accumulated depreciation and amortization (46,423 ) (37,894 ) Property and equipment, net $ 21,302 $ 20,419 Deferred revenue: Product $ 4,290 $ 2,912 Support and services 57,794 57,967 Hosted and related services 12,102 10,396 Total deferred revenue $ 74,186 $ 71,275 Depreciation expense for the three months ended March 31, 2016 and 2015 was $3.1 million and $2.7 million, respectively. Depreciation expense for the nine months ended March 31, 2016 and 2015 was $8.8 million and $7.9 million, respectively. Intangible Assets: Intangible assets consist of the following (in thousands): March 31, 2016 June 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 4,446 $ (3,856 ) $ 590 $ 4,446 $ (3,640 ) $ 806 Technology 31,434 (22,264 ) 9,170 26,644 (18,874 ) 7,770 Customer relationships 24,700 (13,619 ) 11,081 23,300 (11,049 ) 12,251 Intangible assets in process and other 178 (7 ) 171 1,390 - 1,390 Intangible assets $ 60,758 $ (39,746 ) $ 21,012 $ 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 However, during the three and nine months ended March 31, 2015, the Company capitalized $0.3 million and $1.2 million, respectively, of such software related to ongoing development of a product that had yet to be released to the market. The Company did not capitalize any software development costs for the three and nine months ended March 31, 2016. Certain internally developed software became available for general release to customers during the nine months ended March 31, 2016; at which time, an aggregate of $1.4 million in software development costs were transferred from intangible assets in process 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 March 31, 2016 and 2015 was $2.2 million and $1.9 million, respectively. Amortization of intangible assets for both the nine months ended March 31, 2016 and 2015 was $6.2 million. The estimated amortization expenses for intangible assets as of March 31, 2016 for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2016 (remaining 3 months) $ 2,224 2017 7,508 2018 5,513 2019 4,010 2020 1,267 Thereafter 490 Total $ 21,012 The following presents the changes in the carrying value of goodwill (in thousands): Total As of June 30, 2015 $ 122,750 Addition (See Note 3) 6,699 As of March 31, 2016 $ 129,449 Short-Term Investments: The following tables summarize the Company’s short-term investments (in thousands): Amortized Gross Unrealized Gross Unrealized Fair Value As of March 31, 2016 Corporate notes and commercial paper $ 10,517 $ 3 $ (3 ) $ 10,517 U.S. Government agency securities 2,750 2 - 2,752 Total short-term investments $ 13,267 $ 5 $ (3 ) $ 13,269 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 March 31, 2016 Less than 1 year $ 10,611 $ 10,612 Due in 1 to 3 years 2,656 2,657 Total $ 13,267 $ 13,269 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 All available-for-sale securities have been classified as current based on management’s ability to use the funds in current operations. Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. |