ShoreTel (SHOR) 10-Q 4 Nov 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2016	Oct. 27, 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		67,944,678
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 54,284	$ 61,726
Short-term investments	49,242	46,433
Accounts receivable, net of allowances of $631 and $678 as of September 30, 2016 and June 30, 2016, respectively	24,159	32,902
Inventories	15,475	12,488
Prepaid expenses and other current assets	15,404	13,420
Total current assets	158,564	166,969
Property and equipment, net	21,096	21,551
Goodwill	129,449	129,449
Intangible assets, net	16,675	18,788
Other assets	5,760	5,581
Total assets	331,544	342,338
Current liabilities:
Accounts payable	16,128	14,932
Accrued liabilities and other	14,765	20,397
Accrued employee compensation	14,493	18,925
Accrued taxes and surcharges	4,367	3,917
Deferred revenue	57,404	56,765
Total current liabilities	107,157	114,936
Long-term deferred revenue	20,520	20,940
Other long-term liabilities	3,741	3,733
Total liabilities	131,418	139,609
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; 68,044 shares issued and 67,918 shares outstanding as of September 30, 2016 and 67,517 shares issued and 67,391 shares outstanding as of June 30, 2016	382,940	379,871
Treasury stock, at cost	(819)	(819)
Accumulated other comprehensive income (loss)	(5)	36
Accumulated deficit	(181,990)	(176,359)
Total stockholders' equity	200,126	202,729
Total liabilities and stockholders' equity	$ 331,544	$ 342,338

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Current assets:
Accounts receivable, allowances	$ 631	$ 678
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)	68,044	67,517
Common stock, outstanding (in shares)	67,918	67,391

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Revenue:
Product	$ 31,849	$ 41,533
Hosted and related services	35,622	29,402
Support and services	18,803	19,090
Total revenue	86,274	90,025
Cost of revenue:
Product	10,189	13,481
Hosted and related services	17,103	13,827
Support and services	4,659	4,705
Total cost of revenue	31,951	32,013
Gross profit	54,323	58,012
Operating expenses:
Research and development	16,691	13,837
Sales and marketing	32,489	30,843
General and administrative	10,451	10,115
Settlements and defense fees	(51)	0
Total operating expenses	59,580	54,795
Income (loss) from operations	(5,257)	3,217
Other income (expense):
Interest expense	(117)	(124)
Interest income and other (expense), net	(133)	(576)
Total other expense	(250)	(700)
Income (loss) before provision for income taxes	(5,507)	2,517
Provision for income taxes	124	403
Net income (loss)	$ (5,631)	$ 2,114
Net income (loss) per share - basic (in dollars per share)	$ (0.08)	$ 0.03
Net income (loss) per share - diluted (in dollars per share)	$ (0.08)	$ 0.03
Shares used in computing net income (loss) per share - basic (in shares)	67,609	65,266
Shares used in computing net income (loss) per share - diluted (in shares)	67,609	66,978

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract]
Net income (loss)	$ (5,631)	$ 2,114
Other comprehensive loss, net of tax:
Unrealized loss on short-term investments	(41)	(5)
Other comprehensive loss	(41)	(5)
Comprehensive income (loss)	$ (5,672)	$ 2,109

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (5,631)	$ 2,114
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	5,409	4,833
Stock-based compensation expense	3,207	2,772
Amortization of premium on investments	92	29
Provision for doubtful accounts receivable	20	75
Changes in assets and liabilities, net of the effect of acquisitions:
Accounts receivable	8,723	7,917
Inventories	(3,008)	1,699
Prepaid expenses and other current assets	(1,984)	383
Other assets	(200)	(611)
Accounts payable	1,303	(1,100)
Accrued liabilities and other	(5,306)	724
Accrued employee compensation	(4,432)	(713)
Accrued taxes and surcharges	450	(1,417)
Deferred revenue	219	2,861
Net cash provided by (used in) operating activities	(1,138)	19,566
CASH FLOWS FROM INVESTING ACTIVITES:
Purchases of property and equipment	(3,215)	(3,513)
Purchases of investments	(8,808)	(4,217)
Proceeds from sales/maturities of investments	5,866	2,611
Net cash used in investing activities	(6,157)	(5,119)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	1,107	904
Taxes paid related to net share settlement of vested and released restricted stock units	(1,245)	(967)
Payments made under capital leases	(9)	(14)
Net cash used in financing activities	(147)	(77)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(7,442)	14,370
CASH AND CASH EQUIVALENTS - Beginning of period	61,726	82,162
CASH AND CASH EQUIVALENTS - End of period	54,284	96,532
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Cash paid for interest	6	12
Cash paid for taxes	270	648
NONCASH INVESTING AND FINANCING ACTIVITIES:
Unpaid portion of property and equipment purchases included in period-end accruals	$ 534	$ 116

Description of Business

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

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Sep. 30, 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 September 30, 2016, and for the three months ended September 30, 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, 2016. 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, 2016 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, 2016. The results of operations for the three months ended September 30, 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 months ended September 30, 2015. As a result, hosted and related services revenue and cost of revenue were decreased by $0.1 million for the three months ended September 30, 2015. The correction did not affect the net cash provided by operating activities, net cash used in investing activities or net cash used in financing activities for the three months ended September 30, 2015. The correction did not affect the net income per share for the three months ended September 30, 2015. The foregoing corrections are not considered material by the Company. Computation of Net Income (Loss) per Share Basic net income (loss) per share is determined by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) 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 5.2 million weighted shares and 3.0 million weighted shares were not included in the computation of diluted net income per share for the three months ended September 30, 2016 and 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 September 30, 2016, all of the Company’s cash, cash equivalents and short-term investments were managed by multiple 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, 2016 the same value-added distributor accounted for 42% 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, 2016. Recent Accounting Pronouncements Recent Accounting Standards or Updates Not Yet Effective In May 2014, the FASB issued ASU No. 2014-9 Revenue from Contracts with Customers (Topic 606) Topic 605, Revenue Recognition Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 pursuant to Staff announcements at the March 3, 2016 EITF Meeting Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory 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, In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities for certain cash receipts and cash payments. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The guidance is effective for financial reporting periods beginning after December 15, 2017 with early adoption permitted. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.

Business Combinations

Business Combinations	3 Months Ended
	Sep. 30, 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 a 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 Purchase Price Allocation The total purchase price was 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 following is the purchase price allocation (in thousands): (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 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%. Preliminary Purchase Price Allocation 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 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.

Balance Sheet Details

Balance Sheet Details	3 Months Ended
	Sep. 30, 2016
Balance Sheet Details [Abstract]
Balance Sheet Details	4. Balance Sheet Details Balance sheet components consist of the following: September 30, June 30, 2016 2016 (in thousands) Inventories: Raw materials $ 57 $ 57 Distributor inventory 1,558 1,677 Finished goods 13,860 10,754 Total inventories $ 15,475 $ 12,488 Property and equipment: Computer equipment and tooling $ 53,070 $ 50,933 Software 7,772 7,328 Furniture and fixtures 3,800 3,880 Leasehold improvements and others 8,820 8,836 Total property and equipment 73,462 70,977 Less accumulated depreciation and amortization (52,366 ) (49,426 ) Property and equipment, net $ 21,096 $ 21,551 Deferred revenue: Product $ 5,279 $ 5,433 Support and services 59,423 59,465 Hosted and related services 13,222 12,807 Total deferred revenue $ 77,924 $ 77,705 Depreciation expense for the three months ended September 30, 2016 and 2015 was $3.2 million and $2.9 million, respectively. Intangible Assets: Intangible assets consist of the following (in thousands): September 30, 2016 June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortiza tion Net Carrying Amount Patents $ 4,446 $ (3,982 ) $ 464 $ 4,446 $ (3,919 ) $ 527 Technology 31,434 (24,671 ) 6,763 31,434 (23,523 ) 7,911 Customer relationships 24,700 (15,408 ) 9,292 24,700 (14,513 ) 10,187 Intangible assets in process and other 178 (22 ) 156 178 (15 ) 163 Intangible assets $ 60,758 $ (44,083 ) $ 16,675 $ 60,758 $ (41,970 ) $ 18,788 The intangible assets that are amortizable have estimated useful lives of two to eight years. Amortization of intangible assets for the three months ended September 30, 2016 and 2015 was $2.1 million and $1.9 million, respectively. The estimated amortization expenses for intangible assets as of September 30, 2016 for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2017 (remaining 9 months) $ 5,395 2018 5,513 2019 4,010 2020 1,267 2021 477 Thereafter 13 Total $ 16,675 Short-Term Investments: The following tables summarize the Company’s short-term investments (in thousands): September 30, 2016 Amortized Gross Unrealized Gross Unrealized Fair Value Corporate bonds and commercial paper $ 24,071 $ 4 $ (17 ) $ 24,058 U.S. Government agency securities 25,176 11 (3 ) 25,184 Total short-term investments $ 49,247 $ 15 $ (20 ) $ 49,242 June 30, 2016 Corporate bonds and commercial paper $ 26,359 $ 9 $ (5 ) $ 26,363 U.S. Government agency securities 20,038 32 - 20,070 Total short-term investments $ 46,397 $ 41 $ (5 ) $ 46,433 The following table summarizes the maturities of the Company’s fixed income securities (in thousands): September 30, 2016 Amortized Cost Fair Value Less than 1 year $ 29,529 $ 29,519 Due in 1 to 3 years 19,718 19,723 Total $ 49,247 $ 49,242 June 30, 2016 Amortized Cost Fair Value Less than 1 year $ 28,107 $ 28,114 Due in 1 to 3 years 18,290 18,319 Total $ 46,397 $ 46,433 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	3 Months Ended
	Sep. 30, 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): September 30, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 718 $ 718 $ - $ - Short-term investments: Corporate notes and commercial paper 24,058 - 24,058 - U.S. Government agency securities 25,184 - 25,184 - Total assets measured and recorded at fair value $ 49,960 $ 718 $ 49,242 $ - The above table excludes $53.6 million of cash balances on deposit at banks. June 30, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 3,533 $ 3,533 $ - $ - Short-term investments: Corporate notes and commercial paper 26,363 - 26,363 - U.S. Government agency securities 20,070 - 20,070 - Total assets measured and recorded at fair value $ 49,966 $ 3,533 $ 46,433 $ - The above table excludes $58.2 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 U.S. government agency securities, corporate notes and commercial paper. The Company reviewed financial and non-financial assets and liabilities and concluded that there were no other-than-temporary impairment charges during the three months ended September 30, 2016 and 2015 . 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 during the three months ended September 30, 2016 and 2015

Line of Credit

Line of Credit	3 Months Ended
	Sep. 30, 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 Credit Facility contains customary affirmative and negative covenants, including compliance with financial ratios and metrics. The Credit Facility and the related amendment requires the Company to maintain a minimum ratio of liquidity to its indebtedness (each as defined in the Credit Facility) and varying amounts of Liquidity and Consolidated EBITDA specified in the Credit Facility throughout the term of the agreement. The Company was in compliance with all such covenants as of September 30, 2016. As of September 30, 2016, no amounts were outstanding under the Credit Facility. The Company amortizes deferred financing costs to interest expense on a straight-line basis over the term of the Credit Facility.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2016
Income Taxes [Abstract]
Income Taxes	7. Income Taxes The Company recorded an income tax provision of $0.1 million and $0.4 million for the three months ended September 30, 2016 and 2015, respectively. These income tax provisions are primarily comprised of 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 September 30, 2016 and June 30, 2016, the Company’s total amount of unrecognized tax benefits was $6.5 million and $6.3 million, respectively. Of the total of $6.5 million of unrecognized tax benefit as of September 30, 2016, $0.2 million, 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 2015 remain open and subject to tax examination by the appropriate federal or state taxing authorities.

Common Stock

Common Stock	3 Months Ended
	Sep. 30, 2016
Common Stock [Abstract]
Common Stock	8. Common Stock Common Shares Reserved for Issuance At September 30, 2016, the Company has reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 4,191 Reserved under employee stock purchase plan 378 Total 4,569

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Sep. 30, 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 months ended September 30, 2016 and 2015 (in thousands): Three Months Ended 2016 2015 Cost of product revenue $ 25 $ 29 Cost of hosted and related services revenue 85 384 Cost of support and services revenue 126 212 Research and development 676 487 Sales and marketing 959 862 General and administrative 1,336 798 Total $ 3,207 $ 2,772 The Company estimated the grant date fair value of stock option awards and purchase rights under the 2007 Employee Stock Purchase Plan (“2007 ESPP”) rights using the Black-Scholes option valuation model with the following assumptions: Three Months Ended September 30, 2016 2015 Expected life from grant date of option (in years) 5.15 5.13 Expected life from grant date of ESPP (in years) 0.50 0.50 Risk free interest rate for options 1.13 % 1.55 % Risk free interest rate for ESPP 0.40 % 0.14 % Expected volatility for options 45 % 48 % Expected volatility for ESPP 37 % 35 % Expected dividend yield 0 % 0 % Compensation expense is recognized only for the portion of stock options that are expected to vest, assuming an expected forfeiture rate in determining stock-based compensation expense, which could affect the stock-based compensation expense recorded if there is a significant difference between actual and estimated forfeiture rates. As of September 30, 2016, total unrecognized compensation cost related to stock-based options and awards granted to employees and non-employee directors was $12.4 million. This cost will be amortized on a ratable basis over a weighted-average vesting period of approximately 3.0 years.

Stock Option Plan

Stock Option Plan	3 Months Ended
	Sep. 30, 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, 2016 6,268 $ 6.31 Options granted (weighted average fair value $3.27 per share) 1,352 8.00 Options exercised (232 ) 4.77 Options cancelled/forfeited (222 ) 6.66 Balance at September 30, 2016 7,166 $ 6.67 7.23 $ 10,460 Vested and expected to vest at September 30, 2016 5,889 $ 6.48 6.81 $ 9,826 Options exercisable at September 30, 2016 3,741 $ 6.04 5.66 $ 8,047 The total pre-tax intrinsic value for options exercised during the three months ended September 30, 2016 and 2015 was $0.6 million and $0.5 million, 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	3 Months Ended
	Sep. 30, 2016
Employee Stock Purchase Plan [Abstract]
Employee Stock Purchase Plan	11. Employee Stock Purchase Plan The 2007 ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The 2007 ESPP consists of six-month offering periods commencing on May 1 st st Under the ESPP, employees purchase shares of the Company's common stock at 85% of the market value at either the beginning of the offering period or the end of the offering period, whichever price is lower.

Restricted Stock

Restricted Stock	3 Months Ended
	Sep. 30, 2016
Restricted Stock [Abstract]
Restricted Stock	12. Restricted Stock Under the Company’s equity incentive plan, during the three months ended September 30, 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 three months ended September 30, 2016 and 2015 is as follows (in thousands): Three Months Ended 2016 2015 Beginning outstanding 1,927 1,452 Awarded 982 822 Released (452 ) (386 ) Forfeited (127 ) (53 ) Ending outstanding 2,330 1,835 Information regarding RSAs and RSUs outstanding at September 30, 2016 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Lives Aggregate Intrinsic Value Shares outstanding 2,330 1.93 $ 18,641 Shares expected to vest 1,298 1.56 $ 10,388

Litigation, Commitments, Contin

Litigation, Commitments, Contingencies and Leases	3 Months Ended
	Sep. 30, 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 2017 (remaining 9 months) $ 5,774 2018 6,770 2019 5,297 2020 3,884 2021 2,102 Therafter 1,724 Total minimum lease payments $ 25,551 Lease obligations for the Company’s foreign offices are denominated in foreign currencies, which were converted in the above table to U.S. dollars at the interbank exchange rate on September 30, 2016. Rent expense for the three months ended September 30, 2016 and 2015 was $1.5 million and $1.2 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 September 30, 2016. Indemnification — The Company also has entered into customary indemnification agreements with each of its officers and directors.

Segment Information

Segment Information	3 Months Ended
	Sep. 30, 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 enterprise 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 2016 2015 United States of America $ 79,580 $ 82,671 International 6,694 7,354 Total $ 86,274 $ 90,025 Revenue from one value-added distributor accounted for approximately 24% and 26% of the total revenue during the three months ended September 30, 2016 and 2015, respectively. The Company’s assets are primarily located in the United States of America and not allocated to any specific region; furthermore, the Company does not measure the performance of its geographic regions based upon asset-based metrics. The following presents a summary of long-lived assets, excluding deferred tax assets, other assets, goodwill and intangible assets (in thousands): September 30, June 30, United States of America $ 19,922 $ 20,323 International 1,174 1,228 Total $ 21,096 $ 21,551

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Sep. 30, 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 months ended September 30, 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 September 30, 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 September 30, 2016 and June 30, 2016 (in thousands): September 30, 2016 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 1,480 $ 1,117 British pound £ 1,810 $ 2,336 Canadian dollar $ 790 $ 599 Euro € 840 $ 941 Total $ 4,993 June 30, 2016 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 1,800 $ 1,316 British pound £ 830 1,088 Canadian dollar $ 940 718 Euro € 1,500 1,650 Total $ 4,772

Subsequent Event

Subsequent Event	3 Months Ended
	Sep. 30, 2016
Subsequent Event [Abstract]
Subsequent Event	15. Subsequent Event On August 18, 2016, the Board of Directors approved the 2016 Employee Stock Purchase Plan (“2016 ESPP”), subject to stockholder approval at the annual meeting on November 9, 2016. The 2016 ESPP is the successor to the 2007 ESPP which terminated automatically in October 2016 upon the issuance of all shares of our common stock reserved for issuance thereunder. A total of 3.5 million shares of our common stock will be reserved for issuance under the 2016 ESPP and the automatic share reserve, also known as an “evergreen” provision, which was in the 2007 ESPP, will be eliminated. Offering periods are six-months long and employees will be able to purchase shares of our common stock at a purchase price of the lower of 85% of the fair market value of our common stock on the first day of an offering period or on the purchase date (the last day of the applicable offering period).

Basis of Presentation and Sig23

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 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 months ended September 30, 2015. As a result, hosted and related services revenue and cost of revenue were decreased by $0.1 million for the three months ended September 30, 2015. The correction did not affect the net cash provided by operating activities, net cash used in investing activities or net cash used in financing activities for the three months ended September 30, 2015. The correction did not affect the net income per share for the three months ended September 30, 2015. 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 (loss) per share is determined by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) 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 5.2 million weighted shares and 3.0 million weighted shares were not included in the computation of diluted net income per share for the three months ended September 30, 2016 and 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 September 30, 2016, all of the Company’s cash, cash equivalents and short-term investments were managed by multiple 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, 2016 the same value-added distributor accounted for 42% 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, 2016.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent Accounting Standards or Updates Not Yet Effective In May 2014, the FASB issued ASU No. 2014-9 Revenue from Contracts with Customers (Topic 606) Topic 605, Revenue Recognition Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 pursuant to Staff announcements at the March 3, 2016 EITF Meeting Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory 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, In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities for certain cash receipts and cash payments. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The guidance is effective for financial reporting periods beginning after December 15, 2017 with early adoption permitted. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Sep. 30, 2016
M5 Networks Australia Pty Ltd [Member]
Business Acquisition [Line Items]
Summary of preliminary purchase price allocation	The following is the purchase price allocation (in thousands): (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

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	3 Months Ended
	Sep. 30, 2016
Balance Sheet Details [Abstract]
Balance sheet components	Balance sheet components consist of the following: September 30, June 30, 2016 2016 (in thousands) Inventories: Raw materials $ 57 $ 57 Distributor inventory 1,558 1,677 Finished goods 13,860 10,754 Total inventories $ 15,475 $ 12,488 Property and equipment: Computer equipment and tooling $ 53,070 $ 50,933 Software 7,772 7,328 Furniture and fixtures 3,800 3,880 Leasehold improvements and others 8,820 8,836 Total property and equipment 73,462 70,977 Less accumulated depreciation and amortization (52,366 ) (49,426 ) Property and equipment, net $ 21,096 $ 21,551 Deferred revenue: Product $ 5,279 $ 5,433 Support and services 59,423 59,465 Hosted and related services 13,222 12,807 Total deferred revenue $ 77,924 $ 77,705
Summary of intangible assets	Intangible assets consist of the following (in thousands): September 30, 2016 June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortiza tion Net Carrying Amount Patents $ 4,446 $ (3,982 ) $ 464 $ 4,446 $ (3,919 ) $ 527 Technology 31,434 (24,671 ) 6,763 31,434 (23,523 ) 7,911 Customer relationships 24,700 (15,408 ) 9,292 24,700 (14,513 ) 10,187 Intangible assets in process and other 178 (22 ) 156 178 (15 ) 163 Intangible assets $ 60,758 $ (44,083 ) $ 16,675 $ 60,758 $ (41,970 ) $ 18,788
Estimated amortization expenses for intangible assets	The estimated amortization expenses for intangible assets as of September 30, 2016 for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2017 (remaining 9 months) $ 5,395 2018 5,513 2019 4,010 2020 1,267 2021 477 Thereafter 13 Total $ 16,675
Summary of short-term investments	The following tables summarize the Company’s short-term investments (in thousands): September 30, 2016 Amortized Gross Unrealized Gross Unrealized Fair Value Corporate bonds and commercial paper $ 24,071 $ 4 $ (17 ) $ 24,058 U.S. Government agency securities 25,176 11 (3 ) 25,184 Total short-term investments $ 49,247 $ 15 $ (20 ) $ 49,242 June 30, 2016 Corporate bonds and commercial paper $ 26,359 $ 9 $ (5 ) $ 26,363 U.S. Government agency securities 20,038 32 - 20,070 Total short-term investments $ 46,397 $ 41 $ (5 ) $ 46,433
Schedule of maturities of fixed income securities	The following table summarizes the maturities of the Company’s fixed income securities (in thousands): September 30, 2016 Amortized Cost Fair Value Less than 1 year $ 29,529 $ 29,519 Due in 1 to 3 years 19,718 19,723 Total $ 49,247 $ 49,242 June 30, 2016 Amortized Cost Fair Value Less than 1 year $ 28,107 $ 28,114 Due in 1 to 3 years 18,290 18,319 Total $ 46,397 $ 46,433

Fair Value Disclosure (Tables)

Fair Value Disclosure (Tables)	3 Months Ended
	Sep. 30, 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): September 30, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 718 $ 718 $ - $ - Short-term investments: Corporate notes and commercial paper 24,058 - 24,058 - U.S. Government agency securities 25,184 - 25,184 - Total assets measured and recorded at fair value $ 49,960 $ 718 $ 49,242 $ - The above table excludes $53.6 million of cash balances on deposit at banks. June 30, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 3,533 $ 3,533 $ - $ - Short-term investments: Corporate notes and commercial paper 26,363 - 26,363 - U.S. Government agency securities 20,070 - 20,070 - Total assets measured and recorded at fair value $ 49,966 $ 3,533 $ 46,433 $ -

Common Stock (Tables)

Common Stock (Tables)	3 Months Ended
	Sep. 30, 2016
Common Stock [Abstract]
Reserved shares of common stock for issuance	At September 30, 2016, the Company has reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 4,191 Reserved under employee stock purchase plan 378 Total 4,569

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 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 months ended September 30, 2016 and 2015 (in thousands): Three Months Ended 2016 2015 Cost of product revenue $ 25 $ 29 Cost of hosted and related services revenue 85 384 Cost of support and services revenue 126 212 Research and development 676 487 Sales and marketing 959 862 General and administrative 1,336 798 Total $ 3,207 $ 2,772
Estimated grant date fair value of stock option awards and purchase rights under the 2007 Employee Stock Purchase Plan ("2007 ESPP) rights using the Black-Scholes option valuation model	The Company estimated the grant date fair value of stock option awards and purchase rights under the 2007 Employee Stock Purchase Plan (“2007 ESPP”) rights using the Black-Scholes option valuation model with the following assumptions: Three Months Ended September 30, 2016 2015 Expected life from grant date of option (in years) 5.15 5.13 Expected life from grant date of ESPP (in years) 0.50 0.50 Risk free interest rate for options 1.13 % 1.55 % Risk free interest rate for ESPP 0.40 % 0.14 % Expected volatility for options 45 % 48 % Expected volatility for ESPP 37 % 35 % Expected dividend yield 0 % 0 %

Stock Option Plan (Tables)

Stock Option Plan (Tables)	3 Months Ended
	Sep. 30, 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, 2016 6,268 $ 6.31 Options granted (weighted average fair value $3.27 per share) 1,352 8.00 Options exercised (232 ) 4.77 Options cancelled/forfeited (222 ) 6.66 Balance at September 30, 2016 7,166 $ 6.67 7.23 $ 10,460 Vested and expected to vest at September 30, 2016 5,889 $ 6.48 6.81 $ 9,826 Options exercisable at September 30, 2016 3,741 $ 6.04 5.66 $ 8,047

Restricted Stock (Tables)

Restricted Stock (Tables)	3 Months Ended
	Sep. 30, 2016
Restricted Stock [Abstract]
RSA and RSU activity	RSA and RSU activity for the three months ended September 30, 2016 and 2015 is as follows (in thousands): Three Months Ended 2016 2015 Beginning outstanding 1,927 1,452 Awarded 982 822 Released (452 ) (386 ) Forfeited (127 ) (53 ) Ending outstanding 2,330 1,835
Information regarding RSAs and RSUs outstanding	Information regarding RSAs and RSUs outstanding at September 30, 2016 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Lives Aggregate Intrinsic Value Shares outstanding 2,330 1.93 $ 18,641 Shares expected to vest 1,298 1.56 $ 10,388

Litigation, Commitments, Cont31

Litigation, Commitments, Contingencies and Leases (Tables)	3 Months Ended
	Sep. 30, 2016
Litigation, Commitments, Contingencies and Leases [Abstract]
Schedule of future minimum payments under noncancelable operating leases	Future minimum lease payments under the noncancelable operating leases as of September 30, 2016, are as follows (in thousands): Years Ending June 30, Operating Leases 2017 (remaining 9 months) $ 5,774 2018 6,770 2019 5,297 2020 3,884 2021 2,102 Therafter 1,724 Total minimum lease payments $ 25,551

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Sep. 30, 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 2016 2015 United States of America $ 79,580 $ 82,671 International 6,694 7,354 Total $ 86,274 $ 90,025 The following presents a summary of long-lived assets, excluding deferred tax assets, other assets, goodwill and intangible assets (in thousands): September 30, June 30, United States of America $ 19,922 $ 20,323 International 1,174 1,228 Total $ 21,096 $ 21,551

Derivative Instruments and He33

Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Sep. 30, 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 September 30, 2016 and June 30, 2016 (in thousands): September 30, 2016 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 1,480 $ 1,117 British pound £ 1,810 $ 2,336 Canadian dollar $ 790 $ 599 Euro € 840 $ 941 Total $ 4,993 June 30, 2016 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 1,800 $ 1,316 British pound £ 830 1,088 Canadian dollar $ 940 718 Euro € 1,500 1,650 Total $ 4,772

Basis of Presentation and Sig34

Basis of Presentation and Significant Accounting Policies (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016
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)	5.2	3
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	38.00%		42.00%
Immaterial Prior Period Adjustment [Member]
Correction of Prior Period Error [Abstract]
Decrease in revenue from hosted and related services		$ (0.1)
Decrease in cost of revenue from hosted and related services		$ (0.1)

Business Combinations - M5 Netw

Business Combinations - M5 Networks Australia Pty Ltd. (Details) AUD in Thousands, $ in Thousands	Nov. 16, 2015USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Nov. 16, 2015AUD
Purchase Price Allocation [Abstract]
Goodwill		$ 129,449	$ 129,449
M5 Networks Australia Pty Ltd [Member]
Business Acquisition [Line Items]
Acquisition agreement date		Nov. 16, 2015
Purchase Price Allocation [Abstract]
Cash acquired	$ 224
Other current assets	386
Goodwill	5,210
Other long-term assets	164
Other liabilities assumed	(1,174)
Purchase price allocation	6,110			AUD 8,500
Customer Relationships [Member] | M5 Networks Australia Pty Ltd [Member]
Purchase Price Allocation [Abstract]
Intangible assets	$ 1,300
Estimated useful lives of intangible assets	5 years

Business Combinations - Corvisa

Business Combinations - Corvisa LLC (Details) - USD ($) $ in Thousands	Jan. 06, 2016	Sep. 30, 2016	Jun. 30, 2016
Preliminary Purchase Price Allocation [Abstract]
Goodwill		$ 129,449	$ 129,449
Corvisa LLC [Member]
Business Acquisition [Line Items]
Acquisition agreement date		Jan. 6, 2016
Business acquisition, market participant rate assumption		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)
Purchase price allocation	8,662
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] | 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
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016
Inventories [Abstract]
Raw materials	$ 57		$ 57
Distributor inventory	1,558		1,677
Finished goods	13,860		10,754
Total inventories	15,475		12,488
Property and equipment [Abstract]
Total property and equipment	73,462		70,977
Less accumulated depreciation and amortization	(52,366)		(49,426)
Property and equipment, net	21,096		21,551
Depreciation expense	3,200	$ 2,900
Deferred revenue [Abstract]
Total deferred revenue	77,924		77,705
Intangible Assets [Abstract]
Gross Carrying Amount	60,758		60,758
Accumulated Amortization	(44,083)		(41,970)
Net Carrying Amount	16,675		18,788
Amortization of intangible assets	2,100	$ 1,900
Estimated future amortization expenses for intangible assets [Abstract]
2017 (remaining 9 months)	5,395
2,018	5,513
2,019	4,010
2,020	1,267
2,021	477
Thereafter	13
Net Carrying Amount	16,675		18,788
Short-term investments [Abstract]
Amortized Cost	49,247		46,397
Gross Unrealized Gains	15		41
Gross Unrealized Losses	(20)		(5)
Fair Value	49,242		46,433
Amortized Cost [Abstract]
Less than 1 year	29,529		28,107
Due in 1 to 3 years	19,718		18,290
Amortized Cost	49,247		46,397
Fair Value [Abstract]
Less than 1 year	29,519		28,114
Due in 1 to 3 years	19,723		18,319
Fair Value	$ 49,242		46,433
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	$ 53,070		50,933
Software [Member]
Property and equipment [Abstract]
Total property and equipment	7,772		7,328
Furniture and Fixtures [Member]
Property and equipment [Abstract]
Total property and equipment	3,800		3,880
Leaseholds Improvements and Others [Member]
Property and equipment [Abstract]
Total property and equipment	8,820		8,836
Corporate Bonds and Commercial Paper [Member]
Short-term investments [Abstract]
Amortized Cost	24,071		26,359
Gross Unrealized Gains	4		9
Gross Unrealized Losses	(17)		(5)
Fair Value	24,058		26,363
Amortized Cost [Abstract]
Amortized Cost	24,071		26,359
Fair Value [Abstract]
Fair Value	24,058		26,363
U.S. Government Agency Securities [Member]
Short-term investments [Abstract]
Amortized Cost	25,176		20,038
Gross Unrealized Gains	11		32
Gross Unrealized Losses	(3)		0
Fair Value	25,184		20,070
Amortized Cost [Abstract]
Amortized Cost	25,176		20,038
Fair Value [Abstract]
Fair Value	25,184		20,070
Patents [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	4,446		4,446
Accumulated Amortization	(3,982)		(3,919)
Net Carrying Amount	464		527
Estimated future amortization expenses for intangible assets [Abstract]
Net Carrying Amount	464		527
Technology [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	31,434		31,434
Accumulated Amortization	(24,671)		(23,523)
Net Carrying Amount	6,763		7,911
Estimated future amortization expenses for intangible assets [Abstract]
Net Carrying Amount	6,763		7,911
Customer Relationships [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	24,700		24,700
Accumulated Amortization	(15,408)		(14,513)
Net Carrying Amount	9,292		10,187
Estimated future amortization expenses for intangible assets [Abstract]
Net Carrying Amount	9,292		10,187
Intangible Assets in Process and Other [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	178		178
Accumulated Amortization	(22)		(15)
Net Carrying Amount	156		163
Estimated future amortization expenses for intangible assets [Abstract]
Net Carrying Amount	156		163
Product [Member]
Deferred revenue [Abstract]
Total deferred revenue	5,279		5,433
Support and Services [Member]
Deferred revenue [Abstract]
Total deferred revenue	59,423		59,465
Hosted and Related Services [Member]
Deferred revenue [Abstract]
Total deferred revenue	$ 13,222		$ 12,807

Fair Value Disclosure (Details)

Fair Value Disclosure (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Assets [Abstract]
Short-term investments	$ 49,242	$ 46,433
Total assets measured and recorded at fair value	49,960	49,966
Cash balances on deposit at banks	53,600	58,200
Level 1 [Member]
Assets [Abstract]
Total assets measured and recorded at fair value	718	3,533
Level 2 [Member]
Assets [Abstract]
Total assets measured and recorded at fair value	49,242	46,433
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	718	3,533
Money Market Funds [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents	718	3,533
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 Bonds and Commercial Paper [Member]
Assets [Abstract]
Short-term investments	24,058	26,363
Corporate Bonds and Commercial Paper [Member] | Level 1 [Member]
Assets [Abstract]
Short-term investments	0	0
Corporate Bonds and Commercial Paper [Member] | Level 2 [Member]
Assets [Abstract]
Short-term investments	24,058	26,363
Corporate Bonds 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	25,184	20,070
U.S. Government Agency Securities [Member] | Level 1 [Member]
Assets [Abstract]
Short-term investments	0	0
U.S. Government Agency Securities [Member] | Level 2 [Member]
Assets [Abstract]
Short-term investments	25,184	20,070
U.S. Government Agency Securities [Member] | Level 3 [Member]
Assets [Abstract]
Short-term investments	$ 0	$ 0

Line of Credit (Details)

Line of Credit (Details) $ in Millions	3 Months Ended
	Sep. 30, 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	$ 54
Line of credit facility, amount outstanding	$ 0
Federal Funds Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Minimum [Member] | Federal Funds Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.00%
Minimum [Member] | London Interbank Offered Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.50%
Minimum [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.00%
Maximum [Member] | Federal Funds Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Maximum [Member] | London Interbank Offered Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	2.25%
Maximum [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.50%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016
Income Tax Contingency [Line Items]
Income tax provision	$ 124	$ 403
Unrecognized tax benefits	6,500		$ 6,300
Unrecognized tax benefits that would impact effective tax rate if recognized	200
Expected change in unrecognized tax benefits in next fiscal year	$ 0
Minimum [Member]
Income Tax Contingency [Line Items]
Open tax years	2,002
Maximum [Member]
Income Tax Contingency [Line Items]
Open tax years	2,015

Common Stock (Details)

Common Stock (Details) shares in Thousands	Sep. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for issuance (in shares)	4,569
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)	4,191
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)	378

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 3,207	$ 2,772
Black-Scholes option valuation assumptions [Abstract]
Expected dividend yield	0.00%	0.00%
Unrecognized compensation cost related to stock options and awards granted to employees and non-employee directors	$ 12,400
Period to recognize unrecognized compensation cost	3 years
Cost of Product Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 25	$ 29
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	85	384
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	126	212
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	676	487
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	959	862
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 1,336	$ 798
Stock Options [Member]
Black-Scholes option valuation assumptions [Abstract]
Expected life from grant date	5 years 1 month 24 days	5 years 1 month 17 days
Risk free interest rate	1.13%	1.55%
Expected volatility	45.00%	48.00%
Employee Stock Purchase Plan [Member]
Black-Scholes option valuation assumptions [Abstract]
Expected life from grant date	6 months	6 months
Risk free interest rate	0.40%	0.14%
Expected volatility	37.00%	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
	Sep. 30, 2016	Sep. 30, 2015
Shares Subject to Options Outstanding [Roll Forward]
Balance (in shares)	6,268
Options granted (weighted average fair value $3.27 per share) (in shares)	1,352
Options exercised (in shares)	(232)
Options cancelled/forfeited (in shares)	(222)
Balance (in shares)	7,166
Vested and expected to vest (in shares)	5,889
Options exercisable (in shares)	3,741
Weighted-Average Exercise Price [Roll Forward]
Balance (in dollars per share)	$ 6.31
Options granted (weighted average fair value $3.27 per share) (in dollars per share)	8
Options exercised (in dollars per share)	4.77
Options cancelled/forfeited (in dollars per share)	6.66
Balance (in dollars per share)	6.67
Vested and expected to vest (in dollars per share)	6.48
Options exercisable (in dollars per share)	$ 6.04
Weighted Average Remaining Contractual Term [Abstract]
Balance	7 years 2 months 23 days
Vested and expected to vest	6 years 9 months 22 days
Options exercisable	5 years 7 months 28 days
Aggregate Intrinsic Value [Abstract]
Balance	$ 10,460
Vested and expected to vest	9,826
Options exercisable	$ 8,047
Weighted Average Grant Date Fair Value [Abstract]
Weighted average grant date fair value of options granted (in dollars per share)	$ 3.27
Total pre-tax intrinsic value for options exercised	$ 600	$ 500

Employee Stock Purchase Plan (D

Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan [Member]	3 Months Ended
	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Offering period for ESPP	6 months
Percentage of market value for purchasing shares of common stock by employees	85.00%

Restricted Stock (Details)

Restricted Stock (Details) - Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") [Member] - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
Restricted stock award and restricted stock unit activity [Roll Forward]
Outstanding - beginning balance (in shares)	1,927	1,452
Awarded (in shares)	982	822
Released (in shares)	(452)	(386)
Forfeited (in shares)	(127)	(53)
Outstanding - ending balance (in shares)	2,330	1,835
Information regarding restricted stock awards and restricted stock units outstanding [Abstract]
Shares outstanding, number of shares (in shares)	1,927	1,452	2,330
Shares expected to vest, number of shares (in shares)			1,298
Shares outstanding, weighted average remaining contractual lives	1 year 11 months 5 days
Shares expected to vest, weighted average remaining contractual lives	1 year 6 months 22 days
Shares outstanding, aggregate intrinsic value			$ 18,641
Shares expected to vest, aggregate intrinsic value			$ 10,388

Litigation, Commitments, Cont46

Litigation, Commitments, Contingencies and Leases (Details) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating Leases [Abstract]
2017 (remaining 9 months)	$ 5,774,000
2,018	6,770,000
2,019	5,297,000
2,020	3,884,000
2,021	2,102,000
Thereafter	1,724,000
Total minimum lease payments	25,551,000
Rent expense	1,500,000	$ 1,200,000
Purchase commitments [Abstract]
Purchase commitment with contract manufacturers	16,700,000		$ 15,400,000
Outstanding letters of credit	$ 635,000
Maximum [Member]
Income Tax Contingency [Line Items]
Calendar year for withholding tax audit	2,012
Minimum [Member]
Income Tax Contingency [Line Items]
Calendar year for withholding tax audit	2,008
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
Accrued liability for withholding tax audit			$ 100,000	$ 1,100,000
Amount reversal due to final settlement	$ 100,000
Contingencies final settlement amount	$ 1,100,000

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2016USD ($)Customer	Sep. 30, 2015USD ($)Customer	Jun. 30, 2016USD ($)
Revenue by geographic region [Abstract]
Total revenue	$ 86,274	$ 90,025
Number of major customers | Customer	1	1
Geographic Areas, Long-Lived Assets [Abstract]
Total	$ 21,096		$ 21,551
Revenue [Member]
Revenue by geographic region [Abstract]
Revenue from one value added distributor accounted more than 10%	24.00%	26.00%
Reportable Geographical Components [Member] | United States of America [Member]
Revenue by geographic region [Abstract]
Total revenue	$ 79,580	$ 82,671
Geographic Areas, Long-Lived Assets [Abstract]
Total	19,922		20,323
Reportable Geographical Components [Member] | International [Member]
Revenue by geographic region [Abstract]
Total revenue	6,694	$ 7,354
Geographic Areas, Long-Lived Assets [Abstract]
Total	$ 1,174		$ 1,228

Derivative Instruments and He48

Derivative Instruments and Hedging Activities (Details) € in Thousands, £ in Thousands, CAD in Thousands, AUD in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2016AUD	Sep. 30, 2016CAD	Sep. 30, 2016GBP (£)	Sep. 30, 2016EUR (€)	Jun. 30, 2016USD ($)	Jun. 30, 2016AUD	Jun. 30, 2016CAD	Jun. 30, 2016GBP (£)	Jun. 30, 2016EUR (€)
Derivative [Line Items]
Derivative maturity period	1 month
Notional contract amount	$ 4,993					$ 4,772
Australian Dollar [Member]
Derivative [Line Items]
Notional contract amount	1,117	AUD 1,480				1,316	AUD 1,800
British Pound [Member]
Derivative [Line Items]
Notional contract amount	2,336			£ 1,810		1,088			£ 830
Canadian Dollar [Member]
Derivative [Line Items]
Notional contract amount	599		CAD 790			718		CAD 940
Euro [Member]
Derivative [Line Items]
Notional contract amount	$ 941				€ 840	$ 1,650				€ 1,500

Subsequent Event (Details)

Subsequent Event (Details) - shares shares in Thousands	Aug. 18, 2016	Sep. 30, 2016
Subsequent Event [Line Items]
Common stock shares reserved for issuance (in shares)		4,569
2016 Employee Stock Purchase Plan [Member]
Subsequent Event [Line Items]
Common stock shares reserved for issuance (in shares)	3,500
Offering period for ESPP	6 months
Percentage of market value for purchasing shares of common stock by employees	85.00%