Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Jan. 26, 2017 | |
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 | 68,195,101 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 54,444 | $ 61,726 |
Short-term investments | 49,148 | 46,433 |
Accounts receivable, net of allowances of $630 and $678 as of December 31, 2016 and June 30, 2016, respectively | 25,698 | 32,902 |
Inventories | 15,765 | 12,488 |
Prepaid expenses and other current assets | 11,308 | 13,420 |
Total current assets | 156,363 | 166,969 |
Property and equipment, net | 20,819 | 21,551 |
Goodwill | 129,449 | 129,449 |
Intangible assets, net | 14,635 | 18,788 |
Other assets | 5,688 | 5,581 |
Total assets | 326,954 | 342,338 |
Current liabilities: | ||
Accounts payable | 14,835 | 14,932 |
Accrued liabilities and other | 13,767 | 20,397 |
Accrued employee compensation | 14,185 | 18,925 |
Accrued taxes and surcharges | 4,096 | 3,917 |
Deferred revenue | 56,929 | 56,765 |
Total current liabilities | 103,812 | 114,936 |
Long-term deferred revenue | 20,505 | 20,940 |
Other long-term liabilities | 3,373 | 3,733 |
Total liabilities | 127,690 | 139,609 |
Commitments and contingencies (Note 14) | ||
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; 68,571 shares issued and 68,105 shares outstanding as of Demember 31, 2016 and 67,517 shares issued and 67,391 shares outstanding as of June 30, 2016 | 387,357 | 379,871 |
Treasury stock, at cost | (3,117) | (819) |
Accumulated other comprehensive income (loss) | (70) | 36 |
Accumulated deficit | (184,906) | (176,359) |
Total stockholders' equity | 199,264 | 202,729 |
Total liabilities and stockholders' equity | $ 326,954 | $ 342,338 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Current assets: | ||
Accounts receivable, allowances | $ 630 | $ 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) | 68,571 | 67,517 |
Common stock, outstanding (in shares) | 68,105 | 67,391 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | ||||
Product | $ 32,280 | $ 41,048 | $ 64,129 | $ 82,581 |
Hosted and related services | 36,694 | 30,484 | 72,316 | 59,886 |
Support and services | 19,060 | 18,899 | 37,863 | 37,989 |
Total revenue | 88,034 | 90,431 | 174,308 | 180,456 |
Cost of revenue: | ||||
Product | 10,803 | 13,692 | 20,992 | 27,173 |
Hosted and related services | 17,689 | 14,119 | 34,792 | 27,946 |
Support and services | 4,038 | 4,735 | 8,697 | 9,440 |
Total cost of revenue | 32,530 | 32,546 | 64,481 | 64,559 |
Gross profit | 55,504 | 57,885 | 109,827 | 115,897 |
Operating expenses: | ||||
Research and development | 16,082 | 13,793 | 32,773 | 27,630 |
Sales and marketing | 30,648 | 30,272 | 63,137 | 61,115 |
General and administrative | 11,111 | 9,703 | 21,562 | 19,818 |
Acquisition-related costs | 0 | 534 | 0 | 534 |
Settlements and defense fees | 40 | 0 | (11) | 0 |
Total operating expenses | 57,881 | 54,302 | 117,461 | 109,097 |
Income (loss) from operations | (2,377) | 3,583 | (7,634) | 6,800 |
Other income (expense): | ||||
Interest expense | (111) | (115) | (228) | (238) |
Interest income and other (expense), net | (193) | (560) | (326) | (1,137) |
Total other expense | (304) | (675) | (554) | (1,375) |
Income (loss) before provision for income taxes | (2,681) | 2,908 | (8,188) | 5,425 |
Provision for income taxes | 235 | 363 | 359 | 766 |
Net income (loss) | $ (2,916) | $ 2,545 | $ (8,547) | $ 4,659 |
Net income (loss) per share - basic (in dollars per share) | $ (0.04) | $ 0.04 | $ (0.13) | $ 0.07 |
Net income (loss) per share - diluted (in dollars per share) | $ (0.04) | $ 0.04 | $ (0.13) | $ 0.07 |
Shares used in computing net income (loss) per share - basic (in shares) | 68,044 | 66,184 | 67,826 | 65,725 |
Shares used in computing net income (loss) per share - diluted (in shares) | 68,044 | 68,074 | 67,826 | 67,471 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract] | ||||
Net income (loss) | $ (2,916) | $ 2,545 | $ (8,547) | $ 4,659 |
Other comprehensive loss, net of tax: | ||||
Unrealized loss on short-term investments | (64) | (20) | (106) | (25) |
Other comprehensive loss | (64) | (20) | (106) | (25) |
Comprehensive income (loss) | $ (2,980) | $ 2,525 | $ (8,653) | $ 4,634 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (8,547) | $ 4,659 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 10,857 | 9,769 |
Stock-based compensation expense | 5,493 | 4,932 |
Amortization of premium on investments | 193 | 70 |
Loss on disposal of property and equipment | 20 | 0 |
Provision for doubtful accounts receivable | 67 | 102 |
Changes in assets and liabilities, net of the effect of business acquisitions: | ||
Accounts receivable | 7,137 | 7,815 |
Inventories | (3,294) | 1,010 |
Prepaid expenses and other current assets | 2,112 | 1,548 |
Other assets | (128) | (76) |
Accounts payable | (519) | (2,175) |
Accrued liabilities and other | (6,514) | (1,844) |
Accrued employee compensation | (4,740) | 1,217 |
Accrued taxes and surcharges | 179 | (5,608) |
Deferred revenue | (271) | 1,791 |
Net cash provided by operating activities | 2,045 | 23,210 |
CASH FLOWS FROM INVESTING ACTIVITES: | ||
Purchases of property and equipment | (5,994) | (5,736) |
Purchases of investments | (15,618) | (7,776) |
Proceeds from sales/maturities of investments | 12,604 | 5,686 |
Cost of acquisition of businesses, net of cash acquired | 0 | (5,886) |
Net cash used in investing activities | (9,008) | (13,712) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock | 3,342 | 6,352 |
Taxes paid related to net share settlement of vested and released restricted stock units | (1,349) | (1,083) |
Repurchases of common stock | (2,298) | 0 |
Payments made under capital leases | (14) | (24) |
Net cash provided by (used in) financing activities | (319) | 5,245 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (7,282) | 14,743 |
CASH AND CASH EQUIVALENTS - Beginning of period | 61,726 | 82,162 |
CASH AND CASH EQUIVALENTS - End of period | 54,444 | 96,905 |
SUPPLEMENTAL CASH FLOW DISCLOSURE: | ||
Cash paid for interest | 9 | 14 |
Cash paid for taxes | 514 | 804 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Unpaid portion of property and equipment purchases included in period-end accruals | $ 864 | $ 211 |
Description of Business
Description of Business | 6 Months Ended |
Dec. 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 (“the Company”) provides businesses with communication solutions , comprised of integrated voice, video, data and mobile applications based on Internet Protocol (“IP”) technologies, that make interactions simple. The Company focuses on the small and medium sized businesses seeking Unified Communications (“UC”) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Dec. 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 December 31, 2016, and for the three and six months ended December 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, 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 and six months ended December 31, 2016 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future periods. 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 (loss) by the weighted average number of common shares used in the basic income (loss) 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 5.9 million weighted shares and 4.9 million weighted shares were not included in the computation of diluted net loss per share for the three and six months ended December 31, 2016, respectively, because such securities were anti-dilutive. Dilutive securities of 1.9 million weighted shares and 2.2 million weighted shares were not included in the computation of diluted net income per share for the three and six months ended December 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 December 31, 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 rom March through December 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606):Identifying Performance Obligations and Licensing, ASU No. 2016-11, 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, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. These amendments are intended to improve and clarify the implementation guidance of Topic 606. 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. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements , which includes numerous technical corrections and clarifications to GAAP that are designed to remove inconsistencies in the board’s accounting guidance. Several provisions in this accounting guidance are effective immediately which did not have an impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, |
Business Combinations
Business Combinations | 6 Months Ended |
Dec. 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 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 (in years) 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%. Purchase Price Allocation The total purchase price was 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 following is the purchase price allocation (in thousands): (in thousands) Estimated useful lives (in years) 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
Balance Sheet Details | 6 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Details [Abstract] | |
Balance Sheet Details | 4. Balance Sheet Details Balance sheet components consist of the following: December 31, June 30, 2016 2016 (in thousands) Inventories: Raw materials $ 57 $ 57 Distributor inventory 1,138 1,677 Finished goods 14,570 10,754 Total inventories $ 15,765 $ 12,488 Property and equipment: Computer equipment and tooling $ 34,909 $ 33,739 Computer rental equipment 20,358 17,194 Software 7,771 7,328 Furniture and fixtures 3,805 3,880 Leasehold improvements and others 9,698 8,836 Total property and equipment 76,541 70,977 Less accumulated depreciation and amortization (55,722 ) (49,426 ) Property and equipment, net $ 20,819 $ 21,551 Deferred revenue: Product $ 3,763 $ 5,433 Support and services 59,953 59,465 Hosted and related services 13,718 12,807 Total deferred revenue $ 77,434 $ 77,705 Depreciation expense for the three months ended December 31, 2016 and 2015 was $3.4 million and $2.8 million, respectively. Depreciation expense for the six months ended December 31, 2016 and 2015 was $6.6 million and $5.7 million, respectively. Intangible Assets: Intangible assets consist of the following (in thousands): December 31, 2016 June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 4,446 $ (4,027 ) $ 419 $ 4,446 $ (3,919 ) $ 527 Technology 31,434 (25,763 ) 5,671 31,434 (23,523 ) 7,911 Customer relationships 24,700 (16,303 ) 8,397 24,700 (14,513 ) 10,187 Intangible assets in process and other 178 (30 ) 148 178 (15 ) 163 Intangible assets $ 60,758 $ (46,123 ) $ 14,635 $ 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 December 31, 2016 and 2015 was $2.1 million and $2.0 million, respectively. Amortization of intangible assets for the six months ended December 31, 2016 and 2015 was $4.2 million and $3.9 million, respectively. The estimated amortization expenses for intangible assets as of December 31, 2016 for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2017 (remaining 6 months) $ 3,355 2018 5,513 2019 4,010 2020 1,267 2021 477 Thereafter 13 Total $ 14,635 Short-Term Investments: The following tables summarize the Company’s short-term investments (in thousands): December 31, 2016 Amortized Gross Unrealized Gross Unrealized Fair Value Corporate bonds and commercial paper $ 20,002 $ - $ (37 ) $ 19,965 U.S. Government agency securities 29,216 - (33 ) 29,183 Total short-term investments $ 49,218 $ - $ (70 ) $ 49,148 June 30, 2016 Amortized Gross Unrealized Gross Unrealized Fair Value 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): December 31, 2016 Amortized Cost Fair Value Less than 1 year $ 35,041 $ 35,008 Due in 1 to 3 years 14,177 14,140 Total $ 49,218 $ 49,148 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 | 6 Months Ended |
Dec. 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): December 31, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 831 $ 831 $ - $ - Short-term investments: Corporate notes and commercial paper 19,965 - 19,965 - U.S. Government agency securities 29,183 - 29,183 - Total assets measured and recorded at fair value $ 49,979 $ 831 $ 49,148 $ - 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 and six months ended December 31, 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 and six months ended December 31, 2016 and 2015 |
Line of Credit
Line of Credit | 6 Months Ended |
Dec. 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 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 December 31, 2016. As of December 31, 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 | 6 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 7. Income Taxes The Company recorded an income tax provision of $0.2 million and $0.4 million for the three months ended December 31, 2016 and 2015, respectively, and $0.4 million and $0.8 million for the six months ended December 31, 2016 and 2015, respectively. The Company maintains liabilities for uncertain tax positions. As of December 31, 2016 and June 30, 2016, the total amount of unrecognized tax benefits was $6.7 million and $6.3 million, respectively. Of the total of $6.7 million of unrecognized tax benefit as of December 31, 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 | 6 Months Ended |
Dec. 31, 2016 | |
Common Stock [Abstract] | |
Common Stock | 8. Common Stock Common Shares Reserved for Issuance At December 31, 2016, the Company has reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 4,030 Reserved under employee stock purchase plan 3,500 Total 7,530 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 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 six months ended December 31, 2016 and 2015 (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2016 2015 2016 2015 Cost of product revenue $ 9 $ 12 $ 34 $ 41 Cost of hosted and related services revenue 52 283 137 667 Cost of support and services revenue 88 135 214 347 Research and development 512 433 1,188 920 Sales and marketing 663 569 1,622 1,431 General and administrative 962 728 2,298 1,526 Total $ 2,286 $ 2,160 $ 5,493 $ 4,932 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 December 31, Six Months Ended December 31, 2016 2015 2016 2015 Expected life from grant date of option (in years) 5.16 5.09 5.15 - 5.16 5.09 - 5.13 Expected life from grant date of ESPP (in years) 0.50 0.50 0.50 0.50 Risk free interest rate for options 1.61% 1.59% 1.13% - 1.61% 1.55% - 1.59% Risk free interest rate for ESPP 0.40% 0.41% 0.40% 0.14% - 0.41% Expected volatility for options 42% 47% 42% - 45% 47% - 48% Expected volatility for ESPP 37% 29% 37% 29% - 35% 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 December 31, 2016, total unrecognized compensation cost related to stock-based options and awards granted to employees and non-employee directors was $11.4 million. This cost will be amortized on a ratable basis over a weighted-average vesting period of approximately 2.9 years. |
Stock Option Plan
Stock Option Plan | 6 Months Ended |
Dec. 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, 2016 6,268 $ 6.31 Options granted (weighted average fair value $3.25 per share) 1,416 7.98 Options exercised (296 ) 4.83 Options cancelled/forfeited (309 ) 6.87 Balance at December 31, 2016 7,079 $ 6.69 7.05 $ 6,303 Vested and expected to vest at December 31, 2016 5,962 $ 6.51 6.67 $ 6,177 Options exercisable at December 31, 2016 3,917 $ 6.09 5.60 $ 5,575 The total pre-tax intrinsic value for options exercised during the three months ended December 31, 2016 and 2015 was $0.1 million and $2.9 million, respectively, and $0.9 million and $3.4 million for the six months ended December 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 | 6 Months Ended |
Dec. 31, 2016 | |
Employee Stock Purchase Plan [Abstract] | |
Employee Stock Purchase Plan | 11. Employee Stock Purchase Plan On November 9, 2016, the 2016 Employee Stock Purchase Plan (“2016 ESPP”) was approved by stockholders. The 2016 ESPP is the successor to the 2007 Employee Stock Purchase Plan (“2007 ESPP”) which terminated automatically in October 2016. A total of 3.5 million shares of the Company’s common stock were reserved for issuance under the 2016 ESPP. The 2016 ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions. Offering periods are six-months long commencing on May 1 st st The terms of the 2007 ESPP were substantially the same as the terms of the 2016 ESPP as explained in the paragraph above . |
Restricted Stock
Restricted Stock | 6 Months Ended |
Dec. 31, 2016 | |
Restricted Stock [Abstract] | |
Restricted Stock | 12. Restricted Stock Under the Company’s equity incentive plan, during the six months ended December 31, 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 six months ended December 31, 2016 and 2015 is as follows (in thousands): Six Months Ended December 31, 2016 2015 Beginning outstanding 1,927 1,452 Awarded 1,145 970 Released (552 ) (479 ) Forfeited (184 ) (111 ) Ending outstanding 2,336 1,832 Information regarding RSAs and RSUs outstanding at December 31, 2016 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Lives Aggregate Intrinsic Value (thousands) Shares outstanding 2,336 1.75 $ 16,703 Shares expected to vest 1,363 1.41 $ 9,746 |
Treasury Stock
Treasury Stock | 6 Months Ended |
Dec. 31, 2016 | |
Treasury Stock [Abstract] | |
Treasury Stock | 13. Treasury Stock In May 2016, the board of directors authorized the repurchase of up to $20.0 million of the Company's common stock from time to time at the discretion of the Company’s management. The stock repurchase authorization has no expiration date. Under this program, the Company may repurchase shares in the open market and through privately negotiated transactions. Repurchases are funded with cash and cash generated from operations. The timing and amount of specific repurchase transactions will depend upon market conditions, corporate considerations and applicable legal and regulatory requirements. The Company accounts for repurchased shares of common stock as treasury stock. Treasury shares are recorded at cost and are included as a component of stockholders’ equity in our consolidated balance sheet. A summary of the approved and active share buyback program is shown in the following table (in thousands, excluding transaction costs): Shares Repurchased Average Price per Share Value of Shares Repurchased Remaining Amount Authorized (In thousands, except per share amounts) Balance as of July 1, 2016 $ 19,181 Repurchase of common stock 339 $ 6.77 $ 2,298 (2,298 ) Balance as of December 31, 2016 $ 16,883 There were no share repurchases in the three or six months ended December 31, 2015. There were no retirements of treasury stock during the three or six months ended December 31, 2016 and 2015. |
Litigation, Commitments, Contin
Litigation, Commitments, Contingencies and Leases | 6 Months Ended |
Dec. 31, 2016 | |
Litigation, Commitments, Contingencies and Leases [Abstract] | |
Litigation, Commitments, Contingencies and Leases | 14. Litigation, Commitments, Contingencies and Leases Litigation Contingencies — Leases Years Ending June 30, Operating Leases 2017 (remaining 6 months) $ 3,800 2018 6,745 2019 5,284 2020 3,872 2021 2,098 Therafter 2,194 Total minimum lease payments $ 23,993 Minimum lease payments have not been reduced by minimum sublease rentals of $1.7 million due in the future under a noncancelable sublease. 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 December 31, 2016. Rent expense for the three months ended December 31, 2016 and 2015 was $1.4 million and $1.3 million, respectively. Rent expense for the six months ended December 31, 2016 and 2015 was $2.9 million and $2.5 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 December 31, 2016. Indemnification — The Company also has entered into customary indemnification agreements with each of its officers and directors. |
Segment Information
Segment Information | 6 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Segment Information | 15. 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 December 31, Six Months Ended December 31, 2016 2015 2016 2015 United States of America $ 79,888 $ 82,711 $ 159,468 $ 165,382 International 8,146 7,720 14,840 15,074 Total $ 88,034 $ 90,431 $ 174,308 $ 180,456 Revenue from one value-added distributor accounted for approximately 23% and 26% of the total revenue during the three months ended December 31, 2016 and 2015, respectively, and 24% and 26% of the total revenue during the six months ended December 31, 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): December 31, 2016 June 30, 2016 United States of America $ 19,608 $ 20,323 International 1,211 1,228 Total $ 20,819 $ 21,551 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | 16. 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 six months ended December 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 December 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 December 31, 2016 and June 30, 2016 (in thousands): December 31, 2016 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 830 $ 590 British pound £ 1,390 1,698 Canadian dollar $ 1,980 1,457 Euro € 1,230 1,282 Total $ 5,027 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 Sig23
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2016 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
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 (loss) by the weighted average number of common shares used in the basic income (loss) 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 5.9 million weighted shares and 4.9 million weighted shares were not included in the computation of diluted net loss per share for the three and six months ended December 31, 2016, respectively, because such securities were anti-dilutive. Dilutive securities of 1.9 million weighted shares and 2.2 million weighted shares were not included in the computation of diluted net income per share for the three and six months ended December 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 December 31, 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 rom March through December 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606):Identifying Performance Obligations and Licensing, ASU No. 2016-11, 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, ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. These amendments are intended to improve and clarify the implementation guidance of Topic 606. 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. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements , which includes numerous technical corrections and clarifications to GAAP that are designed to remove inconsistencies in the board’s accounting guidance. Several provisions in this accounting guidance are effective immediately which did not have an impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Dec. 31, 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 (in years) 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 purchase price allocation (in thousands): (in thousands) Estimated useful lives (in years) 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) | 6 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Details [Abstract] | |
Balance sheet components | Balance sheet components consist of the following: December 31, June 30, 2016 2016 (in thousands) Inventories: Raw materials $ 57 $ 57 Distributor inventory 1,138 1,677 Finished goods 14,570 10,754 Total inventories $ 15,765 $ 12,488 Property and equipment: Computer equipment and tooling $ 34,909 $ 33,739 Computer rental equipment 20,358 17,194 Software 7,771 7,328 Furniture and fixtures 3,805 3,880 Leasehold improvements and others 9,698 8,836 Total property and equipment 76,541 70,977 Less accumulated depreciation and amortization (55,722 ) (49,426 ) Property and equipment, net $ 20,819 $ 21,551 Deferred revenue: Product $ 3,763 $ 5,433 Support and services 59,953 59,465 Hosted and related services 13,718 12,807 Total deferred revenue $ 77,434 $ 77,705 |
Summary of intangible assets | Intangible assets consist of the following (in thousands): December 31, 2016 June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 4,446 $ (4,027 ) $ 419 $ 4,446 $ (3,919 ) $ 527 Technology 31,434 (25,763 ) 5,671 31,434 (23,523 ) 7,911 Customer relationships 24,700 (16,303 ) 8,397 24,700 (14,513 ) 10,187 Intangible assets in process and other 178 (30 ) 148 178 (15 ) 163 Intangible assets $ 60,758 $ (46,123 ) $ 14,635 $ 60,758 $ (41,970 ) $ 18,788 |
Estimated amortization expenses for intangible assets | The estimated amortization expenses for intangible assets as of December 31, 2016 for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2017 (remaining 6 months) $ 3,355 2018 5,513 2019 4,010 2020 1,267 2021 477 Thereafter 13 Total $ 14,635 |
Summary of short-term investments | The following tables summarize the Company’s short-term investments (in thousands): December 31, 2016 Amortized Gross Unrealized Gross Unrealized Fair Value Corporate bonds and commercial paper $ 20,002 $ - $ (37 ) $ 19,965 U.S. Government agency securities 29,216 - (33 ) 29,183 Total short-term investments $ 49,218 $ - $ (70 ) $ 49,148 June 30, 2016 Amortized Gross Unrealized Gross Unrealized Fair Value 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): December 31, 2016 Amortized Cost Fair Value Less than 1 year $ 35,041 $ 35,008 Due in 1 to 3 years 14,177 14,140 Total $ 49,218 $ 49,148 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) | 6 Months Ended |
Dec. 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): December 31, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 831 $ 831 $ - $ - Short-term investments: Corporate notes and commercial paper 19,965 - 19,965 - U.S. Government agency securities 29,183 - 29,183 - Total assets measured and recorded at fair value $ 49,979 $ 831 $ 49,148 $ - 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) | 6 Months Ended |
Dec. 31, 2016 | |
Common Stock [Abstract] | |
Reserved shares of common stock for issuance | At December 31, 2016, the Company has reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 4,030 Reserved under employee stock purchase plan 3,500 Total 7,530 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 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 six months ended December 31, 2016 and 2015 (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2016 2015 2016 2015 Cost of product revenue $ 9 $ 12 $ 34 $ 41 Cost of hosted and related services revenue 52 283 137 667 Cost of support and services revenue 88 135 214 347 Research and development 512 433 1,188 920 Sales and marketing 663 569 1,622 1,431 General and administrative 962 728 2,298 1,526 Total $ 2,286 $ 2,160 $ 5,493 $ 4,932 |
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 December 31, Six Months Ended December 31, 2016 2015 2016 2015 Expected life from grant date of option (in years) 5.16 5.09 5.15 - 5.16 5.09 - 5.13 Expected life from grant date of ESPP (in years) 0.50 0.50 0.50 0.50 Risk free interest rate for options 1.61% 1.59% 1.13% - 1.61% 1.55% - 1.59% Risk free interest rate for ESPP 0.40% 0.41% 0.40% 0.14% - 0.41% Expected volatility for options 42% 47% 42% - 45% 47% - 48% Expected volatility for ESPP 37% 29% 37% 29% - 35% Expected dividend yield 0% 0% 0% 0% |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 6 Months Ended |
Dec. 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, 2016 6,268 $ 6.31 Options granted (weighted average fair value $3.25 per share) 1,416 7.98 Options exercised (296 ) 4.83 Options cancelled/forfeited (309 ) 6.87 Balance at December 31, 2016 7,079 $ 6.69 7.05 $ 6,303 Vested and expected to vest at December 31, 2016 5,962 $ 6.51 6.67 $ 6,177 Options exercisable at December 31, 2016 3,917 $ 6.09 5.60 $ 5,575 |
Restricted Stock (Tables)
Restricted Stock (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Restricted Stock [Abstract] | |
RSA and RSU activity | RSA and RSU activity for the six months ended December 31, 2016 and 2015 is as follows (in thousands): Six Months Ended December 31, 2016 2015 Beginning outstanding 1,927 1,452 Awarded 1,145 970 Released (552 ) (479 ) Forfeited (184 ) (111 ) Ending outstanding 2,336 1,832 |
Information regarding RSAs and RSUs outstanding | Information regarding RSAs and RSUs outstanding at December 31, 2016 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Lives Aggregate Intrinsic Value (thousands) Shares outstanding 2,336 1.75 $ 16,703 Shares expected to vest 1,363 1.41 $ 9,746 |
Treasury Stock (Tables)
Treasury Stock (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Treasury Stock [Abstract] | |
Approved and active share buyback program | A summary of the approved and active share buyback program is shown in the following table (in thousands, excluding transaction costs): Shares Repurchased Average Price per Share Value of Shares Repurchased Remaining Amount Authorized (In thousands, except per share amounts) Balance as of July 1, 2016 $ 19,181 Repurchase of common stock 339 $ 6.77 $ 2,298 (2,298 ) Balance as of December 31, 2016 $ 16,883 |
Litigation, Commitments, Cont32
Litigation, Commitments, Contingencies and Leases (Tables) | 6 Months Ended |
Dec. 31, 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 December 31, 2016, are as follows (in thousands): Years Ending June 30, Operating Leases 2017 (remaining 6 months) $ 3,800 2018 6,745 2019 5,284 2020 3,872 2021 2,098 Therafter 2,194 Total minimum lease payments $ 23,993 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Total revenue and long-lived assets, excluding deferred tax assets, other assets, and intangible assets by geographic region | Revenue by geographic region is based on the ship to address on the customer order. The following presents total revenue by geographic region (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2016 2015 2016 2015 United States of America $ 79,888 $ 82,711 $ 159,468 $ 165,382 International 8,146 7,720 14,840 15,074 Total $ 88,034 $ 90,431 $ 174,308 $ 180,456 The following presents a summary of long-lived assets, excluding deferred tax assets, other assets, goodwill and intangible assets (in thousands): December 31, 2016 June 30, 2016 United States of America $ 19,608 $ 20,323 International 1,211 1,228 Total $ 20,819 $ 21,551 |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Dec. 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 December 31, 2016 and June 30, 2016 (in thousands): December 31, 2016 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 830 $ 590 British pound £ 1,390 1,698 Canadian dollar $ 1,980 1,457 Euro € 1,230 1,282 Total $ 5,027 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 Sig35
Basis of Presentation and Significant Accounting Policies (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 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) | 5.9 | 1.9 | 4.9 | 2.2 | |
Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 26.00% | 42.00% |
Business Combinations - M5 Netw
Business Combinations - M5 Networks Australia Pty Ltd. (Details) AUD in Thousands, $ in Thousands | Nov. 16, 2015USD ($) | Dec. 31, 2016USD ($) | 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 | Dec. 31, 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 | 6 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Inventories [Abstract] | |||||
Raw materials | $ 57 | $ 57 | $ 57 | ||
Distributor inventory | 1,138 | 1,138 | 1,677 | ||
Finished goods | 14,570 | 14,570 | 10,754 | ||
Total inventories | 15,765 | 15,765 | 12,488 | ||
Property and equipment [Abstract] | |||||
Total property and equipment | 76,541 | 76,541 | 70,977 | ||
Less accumulated depreciation and amortization | (55,722) | (55,722) | (49,426) | ||
Property and equipment, net | 20,819 | 20,819 | 21,551 | ||
Depreciation expense | 3,400 | $ 2,800 | 6,600 | $ 5,700 | |
Deferred revenue [Abstract] | |||||
Total deferred revenue | 77,434 | 77,434 | 77,705 | ||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 60,758 | 60,758 | 60,758 | ||
Accumulated Amortization | (46,123) | (46,123) | (41,970) | ||
Net Carrying Amount | 14,635 | 14,635 | 18,788 | ||
Amortization of intangible assets | 2,100 | $ 2,000 | 4,200 | $ 3,900 | |
Estimated future amortization expenses for intangible assets [Abstract] | |||||
2017 (remaining 6 months) | 3,355 | 3,355 | |||
2,018 | 5,513 | 5,513 | |||
2,019 | 4,010 | 4,010 | |||
2,020 | 1,267 | 1,267 | |||
2,021 | 477 | 477 | |||
Thereafter | 13 | 13 | |||
Net Carrying Amount | 14,635 | 14,635 | 18,788 | ||
Short-term investments [Abstract] | |||||
Amortized Cost | 49,218 | 49,218 | 46,397 | ||
Gross Unrealized Gains | 0 | 0 | 41 | ||
Gross Unrealized Losses | (70) | (70) | (5) | ||
Fair Value | 49,148 | 49,148 | 46,433 | ||
Amortized Cost [Abstract] | |||||
Less than 1 year | 35,041 | 35,041 | 28,107 | ||
Due in 1 to 3 years | 14,177 | 14,177 | 18,290 | ||
Amortized Cost | 49,218 | 49,218 | 46,397 | ||
Fair Value [Abstract] | |||||
Less than 1 year | 35,008 | 35,008 | 28,114 | ||
Due in 1 to 3 years | 14,140 | 14,140 | 18,319 | ||
Fair Value | 49,148 | $ 49,148 | 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 | 34,909 | $ 34,909 | 33,739 | ||
Computer Rental Equipment [Member] | |||||
Property and equipment [Abstract] | |||||
Total property and equipment | 20,358 | 20,358 | 17,194 | ||
Software [Member] | |||||
Property and equipment [Abstract] | |||||
Total property and equipment | 7,771 | 7,771 | 7,328 | ||
Furniture and Fixtures [Member] | |||||
Property and equipment [Abstract] | |||||
Total property and equipment | 3,805 | 3,805 | 3,880 | ||
Leaseholds Improvements and Others [Member] | |||||
Property and equipment [Abstract] | |||||
Total property and equipment | 9,698 | 9,698 | 8,836 | ||
Corporate Bonds and Commercial Paper [Member] | |||||
Short-term investments [Abstract] | |||||
Amortized Cost | 20,002 | 20,002 | 26,359 | ||
Gross Unrealized Gains | 0 | 0 | 9 | ||
Gross Unrealized Losses | (37) | (37) | (5) | ||
Fair Value | 19,965 | 19,965 | 26,363 | ||
Amortized Cost [Abstract] | |||||
Amortized Cost | 20,002 | 20,002 | 26,359 | ||
Fair Value [Abstract] | |||||
Fair Value | 19,965 | 19,965 | 26,363 | ||
U.S. Government Agency Securities [Member] | |||||
Short-term investments [Abstract] | |||||
Amortized Cost | 29,216 | 29,216 | 20,038 | ||
Gross Unrealized Gains | 0 | 0 | 32 | ||
Gross Unrealized Losses | (33) | (33) | 0 | ||
Fair Value | 29,183 | 29,183 | 20,070 | ||
Amortized Cost [Abstract] | |||||
Amortized Cost | 29,216 | 29,216 | 20,038 | ||
Fair Value [Abstract] | |||||
Fair Value | 29,183 | 29,183 | 20,070 | ||
Patents [Member] | |||||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 4,446 | 4,446 | 4,446 | ||
Accumulated Amortization | (4,027) | (4,027) | (3,919) | ||
Net Carrying Amount | 419 | 419 | 527 | ||
Estimated future amortization expenses for intangible assets [Abstract] | |||||
Net Carrying Amount | 419 | 419 | 527 | ||
Technology [Member] | |||||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 31,434 | 31,434 | 31,434 | ||
Accumulated Amortization | (25,763) | (25,763) | (23,523) | ||
Net Carrying Amount | 5,671 | 5,671 | 7,911 | ||
Estimated future amortization expenses for intangible assets [Abstract] | |||||
Net Carrying Amount | 5,671 | 5,671 | 7,911 | ||
Customer Relationships [Member] | |||||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 24,700 | 24,700 | 24,700 | ||
Accumulated Amortization | (16,303) | (16,303) | (14,513) | ||
Net Carrying Amount | 8,397 | 8,397 | 10,187 | ||
Estimated future amortization expenses for intangible assets [Abstract] | |||||
Net Carrying Amount | 8,397 | 8,397 | 10,187 | ||
Intangible Assets in Process and Other [Member] | |||||
Intangible Assets [Abstract] | |||||
Gross Carrying Amount | 178 | 178 | 178 | ||
Accumulated Amortization | (30) | (30) | (15) | ||
Net Carrying Amount | 148 | 148 | 163 | ||
Estimated future amortization expenses for intangible assets [Abstract] | |||||
Net Carrying Amount | 148 | 148 | 163 | ||
Product [Member] | |||||
Deferred revenue [Abstract] | |||||
Total deferred revenue | 3,763 | 3,763 | 5,433 | ||
Support and Services [Member] | |||||
Deferred revenue [Abstract] | |||||
Total deferred revenue | 59,953 | 59,953 | 59,465 | ||
Hosted and Related Services [Member] | |||||
Deferred revenue [Abstract] | |||||
Total deferred revenue | $ 13,718 | $ 13,718 | $ 12,807 |
Fair Value Disclosure (Details)
Fair Value Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Assets [Abstract] | ||
Short-term investments | $ 49,148 | $ 46,433 |
Total assets measured and recorded at fair value | 49,979 | 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 | 831 | 3,533 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Total assets measured and recorded at fair value | 49,148 | 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 | 831 | 3,533 |
Money Market Funds [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 831 | 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 | 19,965 | 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 | 19,965 | 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 | 29,183 | 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 | 29,183 | 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 | 6 Months Ended |
Dec. 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 | $ 40.1 |
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 | 6 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | |||||
Income tax provision | $ 235 | $ 363 | $ 359 | $ 766 | |
Unrecognized tax benefits | 6,700 | 6,700 | $ 6,300 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | 200 | 200 | |||
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 | 2,015 |
Common Stock (Details)
Common Stock (Details) shares in Thousands | Dec. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance (in shares) | 7,530 |
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) | 4,030 |
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) | 3,500 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 2,286 | $ 2,160 | $ 5,493 | $ 4,932 |
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 | $ 11,400 | $ 11,400 | ||
Period to recognize unrecognized compensation cost | 2 years 10 months 24 days | |||
Cost of Product Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 9 | $ 12 | $ 34 | $ 41 |
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 | 52 | 283 | 137 | 667 |
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 | 88 | 135 | 214 | 347 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 512 | 433 | 1,188 | 920 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 663 | 569 | 1,622 | 1,431 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 962 | $ 728 | $ 2,298 | $ 1,526 |
Stock Options [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Expected life from grant date | 5 years 1 month 28 days | 5 years 1 month 2 days | ||
Risk free interest rate | 1.61% | 1.59% | ||
Expected volatility | 42.00% | 47.00% | ||
Stock Options [Member] | Minimum [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Expected life from grant date | 5 years 1 month 24 days | 5 years 1 month 2 days | ||
Risk free interest rate | 1.13% | 1.55% | ||
Expected volatility | 42.00% | 47.00% | ||
Stock Options [Member] | Maximum [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Expected life from grant date | 5 years 1 month 28 days | 5 years 1 month 17 days | ||
Risk free interest rate | 1.61% | 1.59% | ||
Expected volatility | 45.00% | 48.00% | ||
2016 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 | 0.40% | 0.41% | 0.40% | |
Expected volatility | 37.00% | 29.00% | 37.00% | |
2016 Employee Stock Purchase Plan [Member] | Minimum [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Risk free interest rate | 0.14% | |||
Expected volatility | 29.00% | |||
2016 Employee Stock Purchase Plan [Member] | Maximum [Member] | ||||
Black-Scholes option valuation assumptions [Abstract] | ||||
Risk free interest rate | 0.41% | |||
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 | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares Subject to Options Outstanding [Roll Forward] | ||||
Balance (in shares) | 6,268 | |||
Options granted (weighted average fair value $3.25 per share) (in shares) | 1,416 | |||
Options exercised (in shares) | (296) | |||
Options cancelled/forfeited (in shares) | (309) | |||
Balance (in shares) | 7,079 | 7,079 | ||
Vested and expected to vest (in shares) | 5,962 | 5,962 | ||
Options exercisable (in shares) | 3,917 | 3,917 | ||
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) | 7.98 | |||
Options exercised (in dollars per share) | 4.83 | |||
Options cancelled/forfeited (in dollars per share) | 6.87 | |||
Balance (in dollars per share) | $ 6.69 | 6.69 | ||
Vested and expected to vest (in dollars per share) | 6.51 | 6.51 | ||
Options exercisable (in dollars per share) | $ 6.09 | $ 6.09 | ||
Weighted Average Remaining Contractual Term [Abstract] | ||||
Balance | 7 years 18 days | |||
Vested and expected to vest | 6 years 8 months 1 day | |||
Options exercisable | 5 years 7 months 6 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Balance | $ 6,303 | $ 6,303 | ||
Vested and expected to vest | 6,177 | 6,177 | ||
Options exercisable | 5,575 | $ 5,575 | ||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 3.25 | |||
Total pre-tax intrinsic value for options exercised | $ 100 | $ 2,900 | $ 900 | $ 3,400 |
Employee Stock Purchase Plan (D
Employee Stock Purchase Plan (Details) shares in Thousands | 6 Months Ended |
Dec. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance (in shares) | 7,530 |
2016 Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [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% |
Restricted Stock (Details)
Restricted Stock (Details) - Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") [Member] - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Restricted stock award and restricted stock unit activity [Roll Forward] | |||
Outstanding - beginning balance (in shares) | 1,927 | 1,452 | |
Awarded (in shares) | 1,145 | 970 | |
Released (in shares) | (552) | (479) | |
Forfeited (in shares) | (184) | (111) | |
Outstanding - ending balance (in shares) | 2,336 | 1,832 | |
Information regarding restricted stock awards and restricted stock units outstanding [Abstract] | |||
Shares outstanding, number of shares (in shares) | 1,927 | 1,452 | 2,336 |
Shares expected to vest, number of shares (in shares) | 1,363 | ||
Shares outstanding, weighted average remaining contractual lives | 1 year 9 months | ||
Shares expected to vest, weighted average remaining contractual lives | 1 year 4 months 28 days | ||
Shares outstanding, aggregate intrinsic value | $ 16,703 | ||
Shares expected to vest, aggregate intrinsic value | $ 9,746 |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | May 31, 2016 | |
Treasury Stock [Abstract] | ||||||
Repurchase of common stock (in shares) | 0 | 339,000 | 0 | |||
Average price per share (in dollars per share) | $ 6.77 | |||||
Repurchase of common stock | $ 2,298 | |||||
Increase (decrease) in authorized repurchase amount | (2,298) | |||||
Remaining amount authorized | $ 16,883 | $ 16,883 | $ 19,181 | $ 20,000 | ||
Retirements of treasury stock (in shares) | 0 | 0 | 0 | 0 |
Litigation, Commitments, Cont48
Litigation, Commitments, Contingencies and Leases (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Leases [Abstract] | ||||||
2017 (remaining 6 months) | $ 3,800,000 | $ 3,800,000 | ||||
2,018 | 6,745,000 | 6,745,000 | ||||
2,019 | 5,284,000 | 5,284,000 | ||||
2,020 | 3,872,000 | 3,872,000 | ||||
2,021 | 2,098,000 | 2,098,000 | ||||
Thereafter | 2,194,000 | 2,194,000 | ||||
Total minimum lease payments | 23,993,000 | 23,993,000 | ||||
Minimum sublease rentals under noncancelable sublease | 1,700,000 | 1,700,000 | ||||
Rent expense | 1,400,000 | $ 1,300,000 | 2,900,000 | $ 2,500,000 | ||
Purchase commitments [Abstract] | ||||||
Purchase commitment with contract manufacturers | 9,800,000 | 9,800,000 | $ 15,400,000 | |||
Outstanding letters of credit | $ 635,000 | $ 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 | $ (11,000) | $ 100,000 | $ 1,100,000 | |||
Contingencies final settlement amount | $ 1,200,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($)Customer | Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($)Customer | Jun. 30, 2016USD ($) | |
Revenue by geographic region [Abstract] | |||||
Total revenue | $ 88,034 | $ 90,431 | $ 174,308 | $ 180,456 | |
Number of major customers | Customer | 1 | 1 | 1 | 1 | |
Geographic Areas, Long-Lived Assets [Abstract] | |||||
Total | $ 20,819 | $ 20,819 | $ 21,551 | ||
Revenue [Member] | |||||
Revenue by geographic region [Abstract] | |||||
Revenue from one value added distributor accounted more than 10% | 23.00% | 26.00% | 24.00% | 26.00% | |
Reportable Geographical Components [Member] | United States of America [Member] | |||||
Revenue by geographic region [Abstract] | |||||
Total revenue | $ 79,888 | $ 82,711 | $ 159,468 | $ 165,382 | |
Geographic Areas, Long-Lived Assets [Abstract] | |||||
Total | 19,608 | 19,608 | 20,323 | ||
Reportable Geographical Components [Member] | International [Member] | |||||
Revenue by geographic region [Abstract] | |||||
Total revenue | 8,146 | $ 7,720 | 14,840 | $ 15,074 | |
Geographic Areas, Long-Lived Assets [Abstract] | |||||
Total | $ 1,211 | $ 1,211 | $ 1,228 |
Derivative Instruments and He50
Derivative Instruments and Hedging Activities (Details) € in Thousands, £ in Thousands, CAD in Thousands, AUD in Thousands, $ in Thousands | 6 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Dec. 31, 2016AUD | Dec. 31, 2016CAD | Dec. 31, 2016EUR (€) | Dec. 31, 2016GBP (£) | Jun. 30, 2016USD ($) | Jun. 30, 2016AUD | Jun. 30, 2016CAD | Jun. 30, 2016EUR (€) | Jun. 30, 2016GBP (£) | |
Derivative [Line Items] | ||||||||||
Derivative maturity period | 1 month | |||||||||
Notional contract amount | $ 5,027 | $ 4,772 | ||||||||
Australian Dollar [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | 590 | AUD 830 | 1,316 | AUD 1,800 | ||||||
British Pound [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | 1,698 | £ 1,390 | 1,088 | £ 830 | ||||||
Canadian Dollar [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | 1,457 | CAD 1,980 | 718 | CAD 940 | ||||||
Euro [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | $ 1,282 | € 1,230 | $ 1,650 | € 1,500 |