Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | Apr. 21, 2016 | |
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 | 67,036,569 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 86,765 | $ 82,162 |
Short-term investments | 13,269 | 8,025 |
Accounts receivable, net of allowances of $690 and $631 as of March 31, 2016 and June 30, 2015, respectively | 25,254 | 36,494 |
Inventories | 15,469 | 15,053 |
Prepaid expenses and other current assets | 15,227 | 14,315 |
Total current assets | 155,984 | 156,049 |
Property and equipment, net | 21,302 | 20,419 |
Goodwill | 129,449 | 122,750 |
Intangible assets, net | 21,012 | 22,217 |
Other assets | 5,422 | 5,021 |
Total assets | 333,169 | 326,456 |
Current liabilities: | ||
Accounts payable | 14,194 | 16,452 |
Accrued liabilities and other | 18,087 | 19,374 |
Accrued employee compensation | 17,976 | 15,311 |
Accrued taxes and surcharges | 4,120 | 9,902 |
Deferred revenue | 53,628 | 50,616 |
Total current liabilities | 108,005 | 111,655 |
Long-term deferred revenue | 20,558 | 20,659 |
Other long-term liabilities | 4,506 | 4,014 |
Total liabilities | $ 133,069 | $ 136,328 |
Commitments and contingencies (Note 13) | ||
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, 67,008 and 65,055 shares as of March 31, 2016 and June 30, 2015, respectively | 375,713 | 361,691 |
Accumulated other comprehensive income | 2 | 4 |
Accumulated deficit | (175,615) | (171,567) |
Total stockholders' equity | 200,100 | 190,128 |
Total liabilities and stockholders' equity | $ 333,169 | $ 326,456 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Current assets: | ||
Accounts receivable, allowances | $ 690 | $ 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) | 67,008 | 65,055 |
Common stock, outstanding (in shares) | 67,008 | 65,055 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue: | ||||
Product | $ 33,919 | $ 39,461 | $ 116,500 | $ 134,081 |
Hosted and related services | 32,768 | 26,961 | 92,654 | 77,076 |
Support and services | 18,549 | 18,321 | 56,538 | 54,345 |
Total revenue | 85,236 | 84,743 | 265,692 | 265,502 |
Cost of revenue: | ||||
Product | 11,164 | 15,646 | 38,337 | 48,038 |
Hosted and related services | 16,582 | 14,641 | 44,528 | 45,392 |
Support and services | 5,054 | 4,534 | 14,494 | 13,116 |
Total cost of revenue | 32,800 | 34,821 | 97,359 | 106,546 |
Gross profit | 52,436 | 49,922 | 168,333 | 158,956 |
Operating expenses: | ||||
Research and development | 16,504 | 13,557 | 44,134 | 40,490 |
Sales and marketing | 32,537 | 29,249 | 93,652 | 87,566 |
General and administrative | 11,277 | 9,328 | 31,095 | 29,881 |
Settlements and defense fees | 0 | 53 | 0 | 8,475 |
Acquisition-related costs | 822 | 0 | 1,356 | 0 |
Total operating expenses | 61,140 | 52,187 | 170,237 | 166,412 |
Loss from operations | (8,704) | (2,265) | (1,904) | (7,456) |
Other income (expense): | ||||
Interest expense | (114) | (130) | (353) | (390) |
Interest income and other (expense), net | (162) | (262) | (1,298) | (818) |
Total other expense | (276) | (392) | (1,651) | (1,208) |
Loss before provision for (benefit from) income taxes | (8,980) | (2,657) | (3,555) | (8,664) |
Provision for (benefit from) income taxes | (273) | (36) | 493 | 467 |
Net loss | $ (8,707) | $ (2,621) | $ (4,048) | $ (9,131) |
Net loss per share - basic and diluted (in dollars per share) | $ (0.13) | $ (0.04) | $ (0.06) | $ (0.14) |
Shares used in computing net loss per share - basic and diluted (in shares) | 66,886 | 64,297 | 66,109 | 63,660 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract] | ||||
Net loss | $ (8,707) | $ (2,621) | $ (4,048) | $ (9,131) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on short-term investments | 23 | 3 | (2) | (5) |
Other comprehensive income (loss) | 23 | 3 | (2) | (5) |
Comprehensive loss | $ (8,684) | $ (2,618) | $ (4,050) | $ (9,136) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (4,048) | $ (9,131) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 15,094 | 14,338 |
Stock-based compensation expense | 6,861 | 6,310 |
Amortization of premium on investments | 105 | 86 |
Loss on disposal of property and equipment | 6 | 12 |
Provision for doubtful accounts receivable | 151 | 75 |
Impairment of indemnification asset | 0 | 3,584 |
Fair value of escrow settlement modification | 0 | 664 |
Changes in assets and liabilities, net of the effect of acquisitions: | ||
Accounts receivable | 11,396 | 11,026 |
Inventories | (6) | 9,479 |
Indemnification asset | 0 | 2,022 |
Prepaid expenses and other current assets | 302 | (6,015) |
Other assets | 97 | (75) |
Accounts payable | (1,360) | (2,576) |
Accrued liabilities and other | (2,252) | 6,439 |
Accrued employee compensation | 2,152 | (1,631) |
Accrued taxes and surcharges | (5,782) | (2,583) |
Deferred revenue | 2,596 | 2,661 |
Net cash provided by operating activities | 25,312 | 34,685 |
CASH FLOWS FROM INVESTING ACTIVITES: | ||
Purchases of property and equipment | (8,103) | (9,393) |
Purchases of investments | (12,915) | (9,566) |
Proceeds from sales/maturities of investments | 7,564 | 4,007 |
Cost of acquisition of businesses, net of cash acquired | (14,322) | 0 |
Purchases of patents, technology and internally developed software | 0 | (1,405) |
Net cash used in investing activities | (27,776) | (16,357) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock | 8,283 | 6,431 |
Taxes paid on vested and released stock awards | (1,122) | (1,003) |
Debt issuance costs | 0 | (611) |
Payments made under capital leases | (94) | (374) |
Net cash provided by financing activities | 7,067 | 4,443 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 4,603 | 22,771 |
CASH AND CASH EQUIVALENTS - Beginning of period | 82,162 | 53,472 |
CASH AND CASH EQUIVALENTS - End of period | 86,765 | 76,243 |
SUPPLEMENTAL CASH FLOW DISCLOSURE: | ||
Cash paid for interest | 18 | 226 |
Cash paid for taxes | 901 | 656 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Unpaid portion of property and equipment purchases included in period-end accruals | $ 205 | $ 61 |
Description of Business
Description of Business | 9 Months Ended |
Mar. 31, 2016 | |
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 to 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 | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016, and for the three and nine months ended March 31, 2016 and 2015 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 and nine months ended March 31, 2016 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future periods. Correction of Prior Period Error Subsequent to the issuance of the condensed consolidated financial statements as of and for the three months ended September 30, 2015, the Company determined installation revenue and related cost of revenue was being deferred and recognized over the contractual life for certain contracts that should have been recognized over the customer life. Accordingly, the accompanying condensed consolidated financial statements reflect the Company’s correction of the condensed consolidated statement of operations impact of the error for the three and nine months ended March 31, 2015, the nine months ended March 31, 2016 and the condensed consolidated balance sheet impact as of June 30, 2015. As a result, hosted and related services revenue and cost of revenue were decreased by $0.3 million and $0.8 million for the three and nine months ended March 31, 2015, respectively. Hosted and related services revenue and cost of revenue were decreased by $0.1 million for the nine months ended March 31, 2016. Prepaid expense and other current assets was increased by $2.7 million, other assets was increased by $1.2 million, deferred revenue was increased by $1.0 million and long-term deferred revenue was increased by $3.0 million as of June 30, 2015. The cumulative impact of the correction on preceding period earnings is an increase to accumulated deficit of $0.1 million as of June 30, 2015. The correction did not affect the net cash provided by operating activities, net cash used in investing activities or net cash provided by financing activities for the nine months ended March 31, 2016 and 2015. The correction did not affect the net loss per share for the three and nine months ended March 31, 2015 or the nine months ended March 31, 2016. The foregoing corrections are not considered material by the Company. Computation of Net Income (Loss) 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 3.4 million weighted shares and 5.3 million weighted shares were not included in the computation of diluted net income per share for the three and nine months ended March 31, 2016, respectively because such securities were anti-dilutive. Dilutive securities of 4.1 million weighted shares and 3.8 million weighted shares were not included in the computation of diluted net loss per share for the three and nine months ended March 31, 2015, 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 March 31, 2016, 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 New Accounting Updates Recently Adopted In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments This accounting standard was adopted by the Company beginning October 1, 2015 and it did not have an impact on the Company’s condensed consolidated financial statements. 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 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, |
Business Combinations
Business Combinations | 9 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | 3. Business Combinations M5 Networks Australia Pty Ltd Acquisition On November 16, 2015, the Company acquired all of the outstanding common stock of M5 Networks Australia Pty Ltd. (“M5 Australia”), a privately-held company based in Australia and a provider of hosted unified communications solutions, for total cash consideration of $6.1 million (8.5 million Australian dollars). The acquisition accelerates the Company’s growth and expansion of providing hosted unified communications services in Australia. In accordance with ASC 805, Business Combinations Preliminary Purchase Price Allocation The total purchase price was preliminarily allocated to M5 Australia’s net tangible and identifiable intangible assets based on their estimated fair values as of November 16, 2015 as set forth below. The primary areas of the purchase price allocation that are not yet finalized relate to deferred taxes and goodwill. The following is the preliminary purchase price allocation (in thousands): Estimated useful lives Cash acquired $ 224 Other current assets 386 Intangible assets: Customer relationships 1,300 5 Goodwill 5,210 Other long-term assets 164 Other liabilities assumed (1,174 ) $ 6,110 Valuing certain components of the acquisition, including intangible assets required the Company to make estimates that may be adjusted in the future, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. Consequently, the purchase price allocation is considered preliminary. Final determination of these estimates could result in an adjustment to the preliminary purchase price allocation, with an offsetting adjustment to goodwill. Measurement period adjustments will be recorded in the period in which the adjustment amounts are determined. The Company recorded $0.1 million and $0.3 million for legal, accounting, consulting and other costs directly related to the acquisition as acquisition-related costs during the three and nine months ended March 31, 2016, respectively. The results of operations of M5 Australia have been included in the Company's consolidated statements of operations from the acquisition date, though revenue and gross margin from M5 Australia were not material for the three and nine months March 31, 2016. Due to the continued integration of the combined business, it is impractical to determine the earnings from M5 Australia beyond the measure of gross profit. Corvisa LLC Acquisition On January 6, 2016, the Company acquired all of the outstanding membership interest in Corvisa LLC (“Corvisa”), a provider of cloud-based communications solutions, for total cash consideration of $8.7 million. The acquisition accelerates the Company’s growth and expansion of its hosted unified communications service offering. In accordance with ASC 805, Business Combinations The fair value of purchased identifiable intangible assets was derived from model-based valuations from significant unobservable inputs (“Level 3 inputs”) determined by management. The fair value of purchased identifiable intangible assets was determined using the Company’s discounted cash flow models from operating projections prepared by management using a market participant rate of 35.0%. The total purchase price was preliminarily allocated to Corvisa’s net tangible and identifiable intangible assets based on their estimated fair values as of January 6, 2016 as set forth below. The primary areas of the purchase price allocation that are not yet finalized relate to property and equipment, contingency accruals, deferred taxes and goodwill. The following is the preliminary purchase price allocation (in thousands): (in thousands) Estimated useful lives Cash acquired $ 227 Other current assets 933 Intangible assets: Existing technology 3,400 5 Customer relationships 100 3 Favorable leases 178 6 Goodwill 1,489 Other long-term assets 3,301 Other liabilities assumed (966 ) $ 8,662 Valuing certain components of the acquisition, including intangible assets required us to make estimates that may be adjusted in the future, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. Consequently, the purchase price allocation is considered preliminary. Final determination of these estimates could result in an adjustment to the preliminary purchase price allocation, with an offsetting adjustment to goodwill. Measurement period adjustments will be recorded in the period in which the adjustment amounts are determined. The Company recorded $0.7 million and $1.1 million for legal, accounting, consulting and other costs directly related to the acquisition as acquisition-related costs during the three and nine months ended March 31, 2016, respectively. The results of operations of Corvisa have been included in the Company's consolidated statements of operations from the acquisition date, though revenue and gross margin from Corvisa were not material for the three and nine months March 31, 2016. Due to the continued integration of the combined business, it is impractical to determine the earnings from Corvisa beyond the measure of gross profit. The unaudited pro forma financial information in the table below summarizes the combined results of operations for the Company and its Corvisa acquisition as though Corvisa was combined as of the beginning of fiscal 2015. The pro forma financial information for the period presented also includes the business combination accounting effects resulting from the acquisition primarily related to amortization charges from acquired intangible assets. The pro forma financial information below is also adjusted to exclude the Company’s non-recurring acquisition-related costs of $0.7 million and $1.1 million incurred in the three and nine months ended March 31, 2016, respectively, and included the year to date total in the nine months ended March 31, 2015. The pro forma financial information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the Corvisa acquisition had taken place at the beginning of fiscal 2015. (Unaudited) Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands, except per share amounts) Total revenue $ 85,236 $ 85,110 $ 266,721 $ 266,825 Net loss (7,967 ) (8,413 ) (16,365 ) (24,825 ) Basic and diluted net loss per share $ (0.12 ) $ (0.13 ) $ (0.25 ) $ (0.39 ) |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Details [Abstract] | |
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. |
Fair Value Disclosure
Fair Value Disclosure | 9 Months Ended |
Mar. 31, 2016 | |
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 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): March 31, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 36,709 $ 36,709 $ - $ - Short-term investments: Corporate notes and commercial paper 10,517 - 10,517 - U.S. Government agency securities 2,752 - 2,752 - Total assets measured and recorded at fair value $ 49,978 $ 36,709 $ 13,269 $ - The above table excludes $50.1 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 and nine months ended March 31, 2016 and 2015, 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 and nine months ended March 31, 2016 that required a nonrecurring fair value analysis to be performed on non-financial assets. |
Line of Credit
Line of Credit | 9 Months Ended |
Mar. 31, 2016 | |
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 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 March 31, 2016. As of March 31, 2016, 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 | 9 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 7. Income Taxes The Company recorded an income tax benefit of $0.3 million and $36,000 for the three months ended March 31, 2016 and 2015, respectively and an income tax provision of $0.5 million for both the nine months ended March 31, 2016 and 2015. These income tax benefits and provisions are primarily comprised of United States federal alternative minimum tax, state taxes and foreign income taxes. 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’s resulting effective tax rate differs from the applicable statutory rate primarily due to the valuation allowance against its deferred tax assets in select jurisdictions . The Company maintains liabilities for uncertain tax positions. As of March 31, 2016 and June 30, 2015, the Company’s total amount of unrecognized tax benefits was $5.3 million and $5.1 million, respectively. Of the total of $5.3 million of unrecognized tax benefit as of March 31, 2016, 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 tax years 2002 through 2014 remain open and subject to tax examination by the appropriate federal or state taxing authorities. The Protecting Americans from Tax Hikes (PATH) Act (“Act”) was signed into law on December 18, 2015. The Act contains a number of provisions including, most notably, permanent extension of the United States federal research tax credit. The Act did not have a material impact on our effective tax rate for fiscal 2016 due to the effect of the valuation allowance on the Company's deferred tax assets. |
Common Stock
Common Stock | 9 Months Ended |
Mar. 31, 2016 | |
Common Stock [Abstract] | |
Common Stock | 8. Common Stock Common Shares Reserved for Issuance At March 31, 2016, the Company has reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 24,630 Reserved under employee stock purchase plan 763 Total 25,393 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Mar. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation The following table shows total non-cash stock-based compensation expense included in the accompanying condensed consolidated statements of operation for the three and nine months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2016 2015 2016 2015 Cost of product revenue $ 12 $ 12 $ 53 $ 61 Cost of hosted and related services revenue 288 285 955 921 Cost of support and services revenue 121 96 468 394 Research and development 439 381 1,359 1,500 Sales and marketing 572 530 2,003 1,826 General and administrative 497 421 2,023 1,608 $ 1,929 $ 1,725 $ 6,861 $ 6,310 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 March 31, Nine Months Ended March 31, 2016 2015 2016 2015 Expected life from grant date of option (in years) 5.09 5.04 5.09 - 5.13 5.04 - 5.09 Expected life from grant date of ESPP (in years) 0.50 0.50 0.50 0.50 Risk free interest rate for options 1.37% 1.45% 1.37% - 1.59% 1.45% - 1.70% Risk free interest rate for ESPP 0.41% 0.09% 0.14% - 0.41% 0.06% - 0.09% Expected volatility for options 47% 50% 47% - 48% 50% Expected volatility for ESPP 29% 43% 29% - 35% 43% Expected dividend yield 0% 0% 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 March 31, 2016, total unrecognized compensation cost related to stock-based options and awards granted to employees and non-employee directors was $9.0 million. This cost will be amortized on a ratable basis over a weighted-average vesting period of approximately 2.8 years. |
Stock Option Plan
Stock Option Plan | 9 Months Ended |
Mar. 31, 2016 | |
Stock Option Plan [Abstract] | |
Stock Option Plan | 10. Stock Option Plan Transactions under the Company’s equity incentive 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 $3.23 per share) 1,773 7.45 Options exercised (1,255 ) 4.96 Options cancelled/forfeited (311 ) 7.02 Balance at March 31, 2016 6,470 $ 6.28 7.12 $ 8,888 Vested and expected to vest at March 31, 2016 5,420 $ 6.14 6.75 $ 8,323 Options exercisable at March 31, 2016 3,356 $ 5.83 5.59 $ 6,460 The total pre-tax intrinsic value for options exercised during the three months ended March 31, 2016 and 2015 was $1.2 million and $0.9 million, respectively, and $4.7 million and $2.8 million for the nine months ended March 31, 2016 and 2015, respectively, representing the difference between the fair values of the Company’s common stock underlying these options at the dates of exercise and the exercise prices paid. |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 9 Months Ended |
Mar. 31, 2016 | |
Employee Stock Purchase Plan [Abstract] | |
Employee Stock Purchase Plan | 11. 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 | 9 Months Ended |
Mar. 31, 2016 | |
Restricted Stock [Abstract] | |
Restricted Stock | 12. Restricted Stock Under the Company’s equity incentive plan, during the nine months ended March 31, 2016 and 2015 the Company issued fully vested restricted stock awards (“RSAs”) to certain non-employee directors electing to receive them in lieu of an annual cash retainer. In addition, restricted stock units (“RSUs”) can be issued to eligible employees. RSA and RSU activity for the nine months ended March 31, 2016 and 2015 is as follows (in thousands): Nine Months Ended March 31, 2016 2015 Beginning outstanding 1,452 1,394 Awarded 1,199 790 Released (493 ) (526 ) Forfeited (153 ) (133 ) Ending outstanding 2,005 1,525 Information regarding RSAs and RSUs outstanding at March 31, 2016 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Lives Aggregate Intrinsic Value Shares outstanding 2,005 1.60 $ 14,920 Shares expected to vest 1,225 1.23 $ 9,112 |
Litigation, Commitments, Contin
Litigation, Commitments, Contingencies and Leases | 9 Months Ended |
Mar. 31, 2016 | |
Litigation, Commitments, Contingencies and Leases [Abstract] | |
Litigation, Commitments, Contingencies and Leases | 13. Litigation, Commitments, Contingencies and Leases Litigation Contingencies — Leases Years Ending June 30, Operating Leases Capital Leases 2016 (remaining 3 months) $ 2,002 152 2017 7,745 82 2018 6,785 12 2019 5,312 - 2020 3,888 - Therafter 3,827 - Total minimum lease payments $ 29,559 246 Less: amount representing interest (3 ) Present value of total minimum lease payments 243 Less: current portion liability (223 ) Capital lease obligation, net of current portion $ 20 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 March 31, 2016. Rent expense for the three months ended March 31, 2016 and 2015 was $1.4 million and $1.2 million, respectively. Rent expense for the nine months ended March 31, 2016 and 2015 was $4.0 million and $4.1 million, respectively. Purchase commitments and with technology firms for usage of software licenses Letters of credit — Outstanding letters of credit maintained by the Company totaled $635,000 as of March 31, 2016. Indemnification — The Company also has entered into customary indemnification agreements with each of its officers and directors. |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2016 | |
Segment Information [Abstract] | |
Segment Information | 14. 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 March 31, Nine Months Ended March 31, 2016 2015 2016 2015 United States of America $ 78,433 $ 77,804 $ 243,815 $ 243,904 International 6,803 6,939 21,877 21,598 Total $ 85,236 $ 84,743 $ 265,692 $ 265,502 Revenue from one value-added distributor accounted for approximately 26% of the total revenue during both the three months ended March 31, 2016 and 2015, and 26% of the total revenue during both the nine months ended March 31, 2016 and 2015. 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): March 31, 2016 June 30, 2015 United States of America $ 20,169 $ 19,505 International 1,133 914 Total $ 21,302 $ 20,419 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | 15. 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 and nine months ended March 31, 2016, 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 March 31, 2016 were 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 March 31, 2016 and June 30, 2015 (in thousands): March 31, 2016 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 2,200 $ 1,673 British pound £ 1,300 $ 1,861 Canadian dollar $ 870 $ 665 Euro € 1,440 $ 1,628 Total $ 5,827 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 | 9 Months Ended |
Mar. 31, 2016 | |
Subsequent Event [Abstract] | |
Subsequent Event | 16. Subsequent Event On May 2, 2016, the Company’s Board of Directors authorized a share repurchase program pursuant to which the Company may repurchase up to $20.0 million of its common stock. |
Basis of Presentation and Sig23
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Correction of Prior Period Error | Correction of Prior Period Error Subsequent to the issuance of the condensed consolidated financial statements as of and for the three months ended September 30, 2015, the Company determined installation revenue and related cost of revenue was being deferred and recognized over the contractual life for certain contracts that should have been recognized over the customer life. Accordingly, the accompanying condensed consolidated financial statements reflect the Company’s correction of the condensed consolidated statement of operations impact of the error for the three and nine months ended March 31, 2015, the nine months ended March 31, 2016 and the condensed consolidated balance sheet impact as of June 30, 2015. As a result, hosted and related services revenue and cost of revenue were decreased by $0.3 million and $0.8 million for the three and nine months ended March 31, 2015, respectively. Hosted and related services revenue and cost of revenue were decreased by $0.1 million for the nine months ended March 31, 2016. Prepaid expense and other current assets was increased by $2.7 million, other assets was increased by $1.2 million, deferred revenue was increased by $1.0 million and long-term deferred revenue was increased by $3.0 million as of June 30, 2015. The cumulative impact of the correction on preceding period earnings is an increase to accumulated deficit of $0.1 million as of June 30, 2015. The correction did not affect the net cash provided by operating activities, net cash used in investing activities or net cash provided by financing activities for the nine months ended March 31, 2016 and 2015. The correction did not affect the net loss per share for the three and nine months ended March 31, 2015 or the nine months ended March 31, 2016. The foregoing corrections are not considered material by the Company. |
Computation of Net Income (Loss) per Share | Computation of Net Income (Loss) 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 3.4 million weighted shares and 5.3 million weighted shares were not included in the computation of diluted net income per share for the three and nine months ended March 31, 2016, respectively because such securities were anti-dilutive. Dilutive securities of 4.1 million weighted shares and 3.8 million weighted shares were not included in the computation of diluted net loss per share for the three and nine months ended March 31, 2015, 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 March 31, 2016, 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 New Accounting Updates Recently Adopted In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments This accounting standard was adopted by the Company beginning October 1, 2015 and it did not have an impact on the Company’s condensed consolidated financial statements. 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 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
M5 Networks Australia Pty Ltd [Member] | |
Business Acquisition [Line Items] | |
Summary of preliminary purchase price allocation | The following is the preliminary purchase price allocation (in thousands): Estimated useful lives Cash acquired $ 224 Other current assets 386 Intangible assets: Customer relationships 1,300 5 Goodwill 5,210 Other long-term assets 164 Other liabilities assumed (1,174 ) $ 6,110 |
Corvisa LLC [Member] | |
Business Acquisition [Line Items] | |
Summary of preliminary purchase price allocation | The following is the preliminary purchase price allocation (in thousands): (in thousands) Estimated useful lives Cash acquired $ 227 Other current assets 933 Intangible assets: Existing technology 3,400 5 Customer relationships 100 3 Favorable leases 178 6 Goodwill 1,489 Other long-term assets 3,301 Other liabilities assumed (966 ) $ 8,662 |
Summary of pro forma financial information | The pro forma financial information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the Corvisa acquisition had taken place at the beginning of fiscal 2015. (Unaudited) Three Months Ended Nine Months Ended 2016 2015 2016 2015 (in thousands, except per share amounts) Total revenue $ 85,236 $ 85,110 $ 266,721 $ 266,825 Net loss (7,967 ) (8,413 ) (16,365 ) (24,825 ) Basic and diluted net loss per share $ (0.12 ) $ (0.13 ) $ (0.25 ) $ (0.39 ) |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Details [Abstract] | |
Balance sheet components | 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 |
Summary of 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 |
Estimated amortization expenses for intangible assets | 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 |
Changes in the carrying value of goodwill | 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 |
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 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 |
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 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 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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): March 31, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 36,709 $ 36,709 $ - $ - Short-term investments: Corporate notes and commercial paper 10,517 - 10,517 - U.S. Government agency securities 2,752 - 2,752 - Total assets measured and recorded at fair value $ 49,978 $ 36,709 $ 13,269 $ - The above table excludes $50.1 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) | 9 Months Ended |
Mar. 31, 2016 | |
Common Stock [Abstract] | |
Reserved shares of common stock for issuance | At March 31, 2016, the Company has reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 24,630 Reserved under employee stock purchase plan 763 Total 25,393 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 of operation for the three and nine months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2016 2015 2016 2015 Cost of product revenue $ 12 $ 12 $ 53 $ 61 Cost of hosted and related services revenue 288 285 955 921 Cost of support and services revenue 121 96 468 394 Research and development 439 381 1,359 1,500 Sales and marketing 572 530 2,003 1,826 General and administrative 497 421 2,023 1,608 $ 1,929 $ 1,725 $ 6,861 $ 6,310 |
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 March 31, Nine Months Ended March 31, 2016 2015 2016 2015 Expected life from grant date of option (in years) 5.09 5.04 5.09 - 5.13 5.04 - 5.09 Expected life from grant date of ESPP (in years) 0.50 0.50 0.50 0.50 Risk free interest rate for options 1.37% 1.45% 1.37% - 1.59% 1.45% - 1.70% Risk free interest rate for ESPP 0.41% 0.09% 0.14% - 0.41% 0.06% - 0.09% Expected volatility for options 47% 50% 47% - 48% 50% Expected volatility for ESPP 29% 43% 29% - 35% 43% Expected dividend yield 0% 0% 0% 0% |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Stock Option Plan [Abstract] | |
Schedule of stock options activity | Transactions under the Company’s equity incentive 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 $3.23 per share) 1,773 7.45 Options exercised (1,255 ) 4.96 Options cancelled/forfeited (311 ) 7.02 Balance at March 31, 2016 6,470 $ 6.28 7.12 $ 8,888 Vested and expected to vest at March 31, 2016 5,420 $ 6.14 6.75 $ 8,323 Options exercisable at March 31, 2016 3,356 $ 5.83 5.59 $ 6,460 |
Restricted Stock (Tables)
Restricted Stock (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Restricted Stock [Abstract] | |
RSA and RSU activity | RSA and RSU activity for the nine months ended March 31, 2016 and 2015 is as follows (in thousands): Nine Months Ended March 31, 2016 2015 Beginning outstanding 1,452 1,394 Awarded 1,199 790 Released (493 ) (526 ) Forfeited (153 ) (133 ) Ending outstanding 2,005 1,525 |
Information regarding RSAs and RSUs outstanding | Information regarding RSAs and RSUs outstanding at March 31, 2016 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Lives Aggregate Intrinsic Value Shares outstanding 2,005 1.60 $ 14,920 Shares expected to vest 1,225 1.23 $ 9,112 |
Litigation, Commitments, Cont31
Litigation, Commitments, Contingencies and Leases (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016, are as follows (in thousands): Years Ending June 30, Operating Leases Capital Leases 2016 (remaining 3 months) $ 2,002 152 2017 7,745 82 2018 6,785 12 2019 5,312 - 2020 3,888 - Therafter 3,827 - Total minimum lease payments $ 29,559 246 Less: amount representing interest (3 ) Present value of total minimum lease payments 243 Less: current portion liability (223 ) Capital lease obligation, net of current portion $ 20 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Segment Information [Abstract] | |
Total revenue and long-lived assets, excluding deferred tax assets, other assets, and intangible assets by geographic region | The following presents total revenue by geographic region (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2016 2015 2016 2015 United States of America $ 78,433 $ 77,804 $ 243,815 $ 243,904 International 6,803 6,939 21,877 21,598 Total $ 85,236 $ 84,743 $ 265,692 $ 265,502 The following presents a summary of long-lived assets, excluding deferred tax assets, other assets, goodwill and intangible assets (in thousands): March 31, 2016 June 30, 2015 United States of America $ 20,169 $ 19,505 International 1,133 914 Total $ 21,302 $ 20,419 |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and June 30, 2015 (in thousands): March 31, 2016 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 2,200 $ 1,673 British pound £ 1,300 $ 1,861 Canadian dollar $ 870 $ 665 Euro € 1,440 $ 1,628 Total $ 5,827 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 |
Basis of Presentation and Sig34
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | 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) | 3.4 | 4.1 | 5.3 | 3.8 | |
Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 35.00% | 33.00% | |||
Immaterial Prior Period Adjustment [Member] | |||||
Correction of Prior Period Error [Abstract] | |||||
Decrease in revenue from hosted and related services | $ (0.3) | $ (0.1) | $ (0.8) | ||
Decrease in cost of revenue from hosted and related services | $ (0.3) | $ (0.1) | $ (0.8) | ||
Increase in prepaid expense and other current assets | $ 2.7 | ||||
Increase in other assets | 1.2 | ||||
Increase in deferred revenue | 1 | ||||
Increase in long-term deferred revenue | 3 | ||||
Increase in accumulated deficit | $ 0.1 |
Business Combinations (Details)
Business Combinations (Details) $ / shares in Units, AUD in Thousands, $ in Thousands | Jan. 06, 2016USD ($) | Nov. 16, 2015USD ($) | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Nov. 16, 2015AUD | Jun. 30, 2015USD ($) |
Preliminary Purchase Price Allocation [Abstract] | ||||||||
Goodwill | $ 129,449 | $ 129,449 | $ 122,750 | |||||
Acquisition-related costs | 822 | $ 0 | $ 1,356 | $ 0 | ||||
M5 Networks Australia Pty Ltd [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition agreement date | Nov. 16, 2015 | |||||||
Preliminary Purchase Price Allocation [Abstract] | ||||||||
Cash acquired | $ 224 | |||||||
Other current assets | 386 | |||||||
Goodwill | 5,210 | |||||||
Other long-term assets | 164 | |||||||
Other liabilities assumed | (1,174) | |||||||
Preliminary purchase price allocation | 6,110 | AUD 8,500 | ||||||
Acquisition-related costs | 100 | $ 300 | ||||||
Corvisa LLC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition agreement date | Jan. 6, 2016 | |||||||
Business acquisition, percentage of participant rate for identifiable intangible assets | 35.00% | |||||||
Preliminary Purchase Price Allocation [Abstract] | ||||||||
Cash acquired | $ 227 | |||||||
Other current assets | 933 | |||||||
Goodwill | 1,489 | |||||||
Other long-term assets | 3,301 | |||||||
Other liabilities assumed | (966) | |||||||
Preliminary purchase price allocation | 8,662 | |||||||
Acquisition-related costs | 700 | $ 1,100 | ||||||
Pro Forma Financial Information [Abstract] | ||||||||
Total revenue | 85,236 | 85,110 | 266,721 | 266,825 | ||||
Net loss | $ (7,967) | $ (8,413) | $ (16,365) | $ (24,825) | ||||
Basic and diluted net loss per share (in dollars per share) | $ / shares | $ (0.12) | $ (0.13) | $ (0.25) | $ (0.39) | ||||
Existing Technology [Member] | Corvisa LLC [Member] | ||||||||
Preliminary Purchase Price Allocation [Abstract] | ||||||||
Intangible assets | $ 3,400 | |||||||
Estimated useful lives of intangible assets | 5 years | |||||||
Customer Relationships [Member] | M5 Networks Australia Pty Ltd [Member] | ||||||||
Preliminary Purchase Price Allocation [Abstract] | ||||||||
Intangible assets | $ 1,300 | |||||||
Estimated useful lives of intangible assets | 5 years | |||||||
Customer Relationships [Member] | Corvisa LLC [Member] | ||||||||
Preliminary Purchase Price Allocation [Abstract] | ||||||||
Intangible assets | $ 100 | |||||||
Estimated useful lives of intangible assets | 3 years | |||||||
Favorable Leases [Member] | Corvisa LLC [Member] | ||||||||
Preliminary Purchase Price Allocation [Abstract] | ||||||||
Intangible assets | $ 178 | |||||||
Estimated useful lives of intangible assets | 6 years |
Balance Sheet Details (Details)
Balance Sheet Details (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Inventories [Abstract] | |||||
Raw materials | $ 62 | $ 62 | $ 92 | ||
Distributor inventory | 1,375 | 1,375 | 965 | ||
Finished goods | 14,032 | 14,032 | 13,996 | ||
Total inventories | 15,469 | 15,469 | 15,053 | ||
Property and equipment [Abstract] | |||||
Total property and equipment | 67,725 | 67,725 | 58,313 | ||
Less accumulated depreciation and amortization | (46,423) | (46,423) | (37,894) | ||
Property and equipment, net | 21,302 | 21,302 | 20,419 | ||
Depreciation expense | 3,100 | $ 2,700 | 8,800 | $ 7,900 | |
Deferred revenue [Abstract] | |||||
Total deferred revenue | 74,186 | 74,186 | 71,275 | ||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 60,758 | 60,758 | 55,780 | ||
Accumulated Amortization | (39,746) | (39,746) | (33,563) | ||
Net Carrying Amount | 21,012 | 21,012 | 22,217 | ||
Transferred from intangible assets in process and other to technology | 1,400 | ||||
Capitalized software development costs | 0 | 300 | 0 | 1,200 | |
Amortization of intangible assets | 2,200 | $ 1,900 | 6,200 | $ 6,200 | |
Estimated future amortization expenses for intangible assets [Abstract] | |||||
2016 (remaining 3 months) | 2,224 | 2,224 | |||
2,017 | 7,508 | 7,508 | |||
2,018 | 5,513 | 5,513 | |||
2,019 | 4,010 | 4,010 | |||
2,020 | 1,267 | 1,267 | |||
Thereafter | 490 | 490 | |||
Total | 21,012 | 21,012 | |||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | 122,750 | ||||
Goodwill, addition | 6,699 | ||||
Goodwill, ending balance | 129,449 | 129,449 | |||
Short-term investments [Abstract] | |||||
Amortized Cost | 13,267 | 13,267 | 8,021 | ||
Gross Unrealized Gains | 5 | 5 | 4 | ||
Gross Unrealized Losses | (3) | (3) | 0 | ||
Fair Value | 13,269 | 13,269 | 8,025 | ||
Amortized Cost [Abstract] | |||||
Less than 1 year | 10,611 | 10,611 | 6,696 | ||
Due in 1 to 3 years | 2,656 | 2,656 | 1,325 | ||
Amortized Cost | 13,267 | 13,267 | 8,021 | ||
Fair Value [Abstract] | |||||
Less than 1 year | 10,612 | 10,612 | 6,702 | ||
Due in 1 to 3 years | 2,657 | 2,657 | 1,323 | ||
Fair Value | 13,269 | $ 13,269 | 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 | 49,133 | $ 49,133 | 41,532 | ||
Software [Member] | |||||
Property and equipment [Abstract] | |||||
Total property and equipment | 6,191 | 6,191 | 5,211 | ||
Furniture and Fixtures [Member] | |||||
Property and equipment [Abstract] | |||||
Total property and equipment | 3,828 | 3,828 | 3,421 | ||
Leaseholds Improvements and Others [Member] | |||||
Property and equipment [Abstract] | |||||
Total property and equipment | 8,573 | 8,573 | 8,149 | ||
Corporate Notes and Commercial Paper [Member] | |||||
Short-term investments [Abstract] | |||||
Amortized Cost | 10,517 | 10,517 | 8,021 | ||
Gross Unrealized Gains | 3 | 3 | 4 | ||
Gross Unrealized Losses | (3) | (3) | 0 | ||
Fair Value | 10,517 | 10,517 | 8,025 | ||
Amortized Cost [Abstract] | |||||
Amortized Cost | 10,517 | 10,517 | 8,021 | ||
Fair Value [Abstract] | |||||
Fair Value | 10,517 | 10,517 | 8,025 | ||
U.S. Government Agency Securities [Member] | |||||
Short-term investments [Abstract] | |||||
Amortized Cost | 2,750 | 2,750 | |||
Gross Unrealized Gains | 2 | 2 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value | 2,752 | 2,752 | |||
Amortized Cost [Abstract] | |||||
Amortized Cost | 2,750 | 2,750 | |||
Fair Value [Abstract] | |||||
Fair Value | 2,752 | 2,752 | |||
Patents [Member] | |||||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 4,446 | 4,446 | 4,446 | ||
Accumulated Amortization | (3,856) | (3,856) | (3,640) | ||
Net Carrying Amount | 590 | 590 | 806 | ||
Technology [Member] | |||||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 31,434 | 31,434 | 26,644 | ||
Accumulated Amortization | (22,264) | (22,264) | (18,874) | ||
Net Carrying Amount | 9,170 | 9,170 | 7,770 | ||
Customer Relationships [Member] | |||||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 24,700 | 24,700 | 23,300 | ||
Accumulated Amortization | (13,619) | (13,619) | (11,049) | ||
Net Carrying Amount | 11,081 | 11,081 | 12,251 | ||
Intangible Assets in Process and Other [Member] | |||||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 178 | 178 | 1,390 | ||
Accumulated Amortization | (7) | (7) | 0 | ||
Net Carrying Amount | 171 | 171 | 1,390 | ||
Product [Member] | |||||
Deferred revenue [Abstract] | |||||
Total deferred revenue | 4,290 | 4,290 | 2,912 | ||
Support and Services [Member] | |||||
Deferred revenue [Abstract] | |||||
Total deferred revenue | 57,794 | 57,794 | 57,967 | ||
Hosted and Related Services [Member] | |||||
Deferred revenue [Abstract] | |||||
Total deferred revenue | $ 12,102 | $ 12,102 | $ 10,396 |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Assets [Abstract] | ||
Short-term investments | $ 13,269 | $ 8,025 |
Total assets measured and recorded at fair value | 49,978 | 12,050 |
Cash balances on deposit at banks | 50,100 | 78,100 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Total assets measured and recorded at fair value | 36,709 | 4,025 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Total assets measured and recorded at fair value | 13,269 | 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 | 36,709 | 4,025 |
Money Market Funds [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 36,709 | 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 | 10,517 | 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 | 10,517 | 8,025 |
Corporate Notes and Commercial Paper [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | $ 0 |
U.S. Government Agency Securities [Member] | ||
Assets [Abstract] | ||
Short-term investments | 2,752 | |
U.S. Government Agency Securities [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | |
U.S. Government Agency Securities [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Short-term investments | 2,752 | |
U.S. Government Agency Securities [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Short-term investments | $ 0 |
Line of Credit (Details)
Line of Credit (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2016USD ($) | |
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 | $ 86 |
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 | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Income Tax Contingency [Line Items] | |||||
Income tax provision | $ (273) | $ (36) | $ 493 | $ 467 | |
Unrecognized tax benefits | 5,300 | 5,300 | $ 5,100 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | 0 | 0 | |||
Expected change in unrecognized tax benefits in next fiscal year | $ 0 | $ 0 | |||
Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open tax years | 2,002 | ||||
Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open tax years | 2,014 |
Common Stock (Details)
Common Stock (Details) shares in Thousands | Mar. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance (in shares) | 25,393 |
Reserved Under Stock Option Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance (in shares) | 24,630 |
Reserved Under Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance (in shares) | 763 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 1,929 | $ 1,725 | $ 6,861 | $ 6,310 |
Black-Scholes option valuation assumptions [Abstract] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Unrecognized compensation cost related to stock options and awards granted to employees and non-employee directors | $ 9,000 | $ 9,000 | ||
Period to recognize unrecognized compensation cost | 2 years 9 months 18 days | |||
Cost of Product Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 12 | $ 12 | $ 53 | $ 61 |
Cost of Hosted and Related Services Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 288 | 285 | 955 | 921 |
Cost of Support and Services Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 121 | 96 | 468 | 394 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 439 | 381 | 1,359 | 1,500 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 572 | 530 | 2,003 | 1,826 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 497 | $ 421 | $ 2,023 | $ 1,608 |
Stock Options [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Expected life from grant date | 5 years 1 month 2 days | 5 years 14 days | ||
Risk free interest rate | 1.37% | 1.45% | ||
Expected volatility | 47.00% | 50.00% | 50.00% | |
Stock Options [Member] | Minimum [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Expected life from grant date | 5 years 1 month 2 days | 5 years 14 days | ||
Risk free interest rate | 1.37% | 1.45% | ||
Expected volatility | 47.00% | |||
Stock Options [Member] | Maximum [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 | 1.59% | 1.70% | ||
Expected volatility | 48.00% | |||
Employee Stock Purchase Plan [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Expected life from grant date | 6 months | 6 months | 6 months | 6 months |
Risk free interest rate | 0.41% | 0.09% | ||
Expected volatility | 29.00% | 43.00% | 43.00% | |
Employee Stock Purchase Plan [Member] | Minimum [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Risk free interest rate | 0.14% | 0.06% | ||
Expected volatility | 29.00% | |||
Employee Stock Purchase Plan [Member] | Maximum [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Risk free interest rate | 0.41% | 0.09% | ||
Expected volatility | 35.00% |
Stock Option Plan (Details)
Stock Option Plan (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Shares Subject to Options Outstanding [Roll Forward] | ||||
Balance (in shares) | 6,263 | |||
Options granted (weighted average fair value $3.23 per share) (in shares) | 1,773 | |||
Options exercised (in shares) | (1,255) | |||
Options cancelled/forfeited (in shares) | (311) | |||
Balance (in shares) | 6,470 | 6,470 | ||
Vested and expected to vest (in shares) | 5,420 | 5,420 | ||
Options exercisable (in shares) | 3,356 | 3,356 | ||
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) | 7.45 | |||
Options exercised (in dollars per share) | 4.96 | |||
Options cancelled/forfeited (in dollars per share) | 7.02 | |||
Balance (in dollars per share) | $ 6.28 | 6.28 | ||
Vested and expected to vest (in dollars per share) | 6.14 | 6.14 | ||
Options exercisable (in dollars per share) | $ 5.83 | $ 5.83 | ||
Weighted Average Remaining Contractual Term [Abstract] | ||||
Balance | 7 years 1 month 13 days | |||
Vested and expected to vest | 6 years 9 months | |||
Options exercisable | 5 years 7 months 2 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Balance | $ 8,888 | $ 8,888 | ||
Vested and expected to vest | 8,323 | 8,323 | ||
Options exercisable | 6,460 | $ 6,460 | ||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 3.23 | |||
Total pre-tax intrinsic value for options exercised | $ 1,200 | $ 900 | $ 4,700 | $ 2,800 |
Employee Stock Purchase Plan (D
Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan [Member] | 9 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Offering period for ESPP | 6 months |
Purchase price of share | 85.00% |
Restricted Stock (Details)
Restricted Stock (Details) - Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") [Member] - USD ($) shares in Thousands, $ in Thousands | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | |
Restricted stock award and restricted stock unit activity [Roll Forward] | |||
Beginning outstanding (in shares) | 1,452 | 1,394 | |
Awarded (in shares) | 1,199 | 790 | |
Released (in shares) | (493) | (526) | |
Forfeited (in shares) | (153) | (133) | |
Ending outstanding (in shares) | 2,005 | 1,525 | |
Information regarding restricted stock awards and restricted stock units outstanding [Abstract] | |||
Shares outstanding, Number of Shares (in shares) | 1,452 | 1,394 | 2,005 |
Shares expected to vest, Number of Shares (in shares) | 1,225 | ||
Shares outstanding, Weighted Average Remaining Contractual Lives | 1 year 7 months 6 days | ||
Shares expected to vest, Weighted Average Remaining Contractual Lives | 1 year 2 months 23 days | ||
Shares outstanding, Aggregate Intrinsic Value | $ 14,920 | ||
Shares expected to vest, Aggregate Intrinsic Value | $ 9,112 |
Litigation, Commitments, Cont45
Litigation, Commitments, Contingencies and Leases (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Operating Leases [Abstract] | |||||
2016 (remaining 3 months) | $ 2,002,000 | $ 2,002,000 | |||
2,017 | 7,745,000 | 7,745,000 | |||
2,018 | 6,785,000 | 6,785,000 | |||
2,019 | 5,312,000 | 5,312,000 | |||
2,020 | 3,888,000 | 3,888,000 | |||
Thereafter | 3,827,000 | 3,827,000 | |||
Total minimum lease payments | 29,559,000 | 29,559,000 | |||
Capital Leases [Abstract] | |||||
2016 (remaining 3 months) | 152,000 | 152,000 | |||
2,017 | 82,000 | 82,000 | |||
2,018 | 12,000 | 12,000 | |||
2,019 | 0 | 0 | |||
2,020 | 0 | 0 | |||
Thereafter | 0 | 0 | |||
Total minimum lease payments | 246,000 | 246,000 | |||
Less: amount representing interest | (3,000) | (3,000) | |||
Present value of total minimum lease payments | 243,000 | 243,000 | |||
Less: current portion liability | (223,000) | (223,000) | |||
Capital lease obligation, net of current portion | 20,000 | 20,000 | |||
Rent expense | 1,400,000 | $ 1,200,000 | 4,000,000 | $ 4,100,000 | |
Purchase commitments [Abstract] | |||||
Purchase commitment with contract manufacturers | 13,400,000 | 13,400,000 | $ 14,900,000 | ||
Outstanding letters of credit | 635,000 | 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 | $ 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 | 9 Months Ended | |||
Mar. 31, 2016USD ($)Customer | Mar. 31, 2015USD ($)Customer | Mar. 31, 2016USD ($)Customer | Mar. 31, 2015USD ($)Customer | Jun. 30, 2015USD ($) | |
Revenue by geographic region [Abstract] | |||||
Total | $ 85,236 | $ 84,743 | $ 265,692 | $ 265,502 | |
Number of major customers | Customer | 1 | 1 | 1 | 1 | |
Geographic Areas, Long-Lived Assets [Abstract] | |||||
Total | $ 21,302 | $ 21,302 | $ 20,419 | ||
Revenue [Member] | |||||
Revenue by geographic region [Abstract] | |||||
Revenue from one value added distributor | 26.00% | 26.00% | 26.00% | 26.00% | |
Reportable Geographical Components [Member] | United States of America [Member] | |||||
Revenue by geographic region [Abstract] | |||||
Total | $ 78,433 | $ 77,804 | $ 243,815 | $ 243,904 | |
Geographic Areas, Long-Lived Assets [Abstract] | |||||
Total | 20,169 | 20,169 | 19,505 | ||
Reportable Geographical Components [Member] | International [Member] | |||||
Revenue by geographic region [Abstract] | |||||
Total | 6,803 | $ 6,939 | 21,877 | $ 21,598 | |
Geographic Areas, Long-Lived Assets [Abstract] | |||||
Total | $ 1,133 | $ 1,133 | $ 914 |
Derivative Instruments and He47
Derivative Instruments and Hedging Activities (Details) € in Thousands, £ in Thousands, CAD in Thousands, AUD in Thousands, $ in Thousands | 9 Months Ended | |||||||||
Mar. 31, 2016USD ($) | Mar. 31, 2016AUD | Mar. 31, 2016GBP (£) | Mar. 31, 2016EUR (€) | Mar. 31, 2016CAD | Jun. 30, 2015USD ($) | Jun. 30, 2015AUD | Jun. 30, 2015GBP (£) | Jun. 30, 2015EUR (€) | Jun. 30, 2015CAD | |
Derivative [Line Items] | ||||||||||
Derivative maturity period | 1 month | |||||||||
Notional contract amount | $ 5,827 | $ 5,573 | ||||||||
Australian Dollar [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | 1,673 | AUD 2,200 | 1,840 | AUD 2,420 | ||||||
British Pound [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | 1,861 | £ 1,300 | 1,429 | £ 910 | ||||||
Canadian Dollar [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | 665 | CAD 870 | 596 | CAD 750 | ||||||
Euro [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | $ 1,628 | € 1,440 | $ 1,708 | € 1,550 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | May. 02, 2016USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Authorized amount of common stock repurchase | $ 20 |