Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Aug. 24, 2017 | Dec. 31, 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 Public Float | $ 482.8 | ||
Entity Common Stock, Shares Outstanding | 69,152,947 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2017 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 67,223 | $ 61,726 |
Short-term investments | 48,665 | 46,433 |
Accounts receivable, net of allowances of $500 and $678 as of June 30, 2017 and 2016, respectively | 31,393 | 32,902 |
Inventories | 11,624 | 12,488 |
Prepaid expenses and other current assets | 13,019 | 13,420 |
Total current assets | 171,924 | 166,969 |
Property and equipment, net | 19,066 | 21,551 |
Goodwill | 129,449 | 129,449 |
Intangible assets, net | 12,087 | 18,788 |
Other assets | 6,926 | 5,581 |
Total assets | 339,452 | 342,338 |
Current liabilities: | ||
Accounts payable | 14,011 | 14,932 |
Accrued liabilities and other | 15,633 | 20,397 |
Accrued employee compensation | 16,740 | 18,925 |
Accrued taxes and surcharges | 3,614 | 3,917 |
Deferred revenue | 61,524 | 56,765 |
Total current liabilities | 111,522 | 114,936 |
Long-term deferred revenue | 21,245 | 20,940 |
Other long-term liabilities | 4,492 | 3,733 |
Total liabilities | 137,259 | 139,609 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock, par value $.001 per share, authorized 5,000 shares; none issued and outstanding | 0 | 0 |
Common stock and additional paid-in capital, par value $.001 per share, authorized 500,000; 69,122 shares issued and 68,657 shares outstanding as of June 30, 2017 and 67,517 shares issued and 67,391 shares outstanding as of June 30, 2016 | 394,184 | 379,871 |
Treasury stock, at cost | (3,117) | (819) |
Accumulated other comprehensive income (loss) | (72) | 36 |
Accumulated deficit | (188,802) | (176,359) |
Total stockholders' equity | 202,193 | 202,729 |
Total liabilities and stockholders' equity | $ 339,452 | $ 342,338 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets: | ||
Accounts receivable, allowances | $ 500 | $ 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) | 69,122 | 67,517 |
Common stock, outstanding (in shares) | 68,657 | 67,391 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue: | |||
Hosted and related services | $ 150,242 | $ 126,670 | $ 105,381 |
Product | 131,174 | 158,232 | 181,272 |
Support and services | 76,343 | 75,382 | 73,017 |
Total revenue | 357,759 | 360,284 | 359,670 |
Cost of revenue: | |||
Hosted and related services | 70,406 | 61,384 | 60,401 |
Product | 43,543 | 51,881 | 63,253 |
Support and services | 17,194 | 19,199 | 17,453 |
Total cost of revenue | 131,143 | 132,464 | 141,107 |
Gross profit | 226,616 | 227,820 | 218,563 |
Operating expenses: | |||
Research and development | 67,068 | 60,509 | 53,352 |
Sales and marketing | 127,637 | 126,123 | 118,931 |
General and administrative | 43,532 | 41,778 | 39,778 |
Settlements and defense fees | (30) | 56 | 8,475 |
Acquisition-related costs | 0 | 1,489 | 0 |
Total operating expenses | 238,207 | 229,955 | 220,536 |
Income (loss) from operations | (11,591) | (2,135) | (1,973) |
Other income (expense): | |||
Interest expense | (455) | (469) | (531) |
Interest income and other (expense), net | 541 | (1,628) | (939) |
Total other income (expense) | 86 | (2,097) | (1,470) |
Loss before provision for income taxes | (11,505) | (4,232) | (3,443) |
Provision for income taxes | 938 | 560 | 961 |
Net loss | $ (12,443) | $ (4,792) | $ (4,404) |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.18) | $ (0.07) | $ (0.07) |
Shares used in computing net loss per common share, basic and diluted (in shares) | 68,100 | 66,405 | 63,953 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Net loss | $ (12,443) | $ (4,792) | $ (4,404) |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on short-term investments, net | (108) | 32 | 3 |
Other comprehensive income (loss) | (108) | 32 | 3 |
Comprehensive loss | $ (12,551) | $ (4,760) | $ (4,401) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock and Additional Paid-In-Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
BALANCE at Jun. 30, 2014 | $ 344,546 | $ 0 | $ 1 | $ (167,163) | $ 177,384 |
BALANCE (in shares) at Jun. 30, 2014 | 62,824,000 | ||||
Common stock issued under stock-based compensation plans, net of taxes paid | $ 8,068 | 8,068 | |||
Common stock issued under stock-based compensation plans, net of taxes paid (in shares) | 2,231,000 | ||||
Stock-based compensation expense | $ 8,413 | $ 8,413 | |||
Repurchase of common stock (in shares) | 0 | ||||
Fair value of escrow settlement modification | 664 | $ 664 | |||
Unrealized gain (loss) on short term investments, net | 3 | 3 | |||
Net loss | (4,404) | (4,404) | |||
BALANCE at Jun. 30, 2015 | $ 361,691 | 0 | 4 | (171,567) | 190,128 |
BALANCE (in shares) at Jun. 30, 2015 | 65,055,000 | ||||
Common stock issued under stock-based compensation plans, net of taxes paid | $ 9,309 | 9,309 | |||
Common stock issued under stock-based compensation plans, net of taxes paid (in shares) | 2,462,000 | ||||
Stock-based compensation expense | $ 8,871 | 8,871 | |||
Repurchases of common stock | (819) | $ (819) | |||
Repurchase of common stock (in shares) | (126,000) | (126,000) | |||
Fair value of escrow settlement modification | $ 0 | ||||
Unrealized gain (loss) on short term investments, net | 32 | 32 | |||
Net loss | (4,792) | (4,792) | |||
BALANCE at Jun. 30, 2016 | $ 379,871 | (819) | 36 | (176,359) | $ 202,729 |
BALANCE (in shares) at Jun. 30, 2016 | 67,391,000 | 67,391,000 | |||
Common stock issued under stock-based compensation plans, net of taxes paid | $ 4,524 | $ 4,524 | |||
Common stock issued under stock-based compensation plans, net of taxes paid (in shares) | 1,605,000 | ||||
Stock-based compensation expense | $ 9,789 | 9,789 | |||
Repurchases of common stock | (2,298) | $ (2,298) | |||
Repurchase of common stock (in shares) | (339,000) | (339,000) | |||
Fair value of escrow settlement modification | $ 0 | ||||
Unrealized gain (loss) on short term investments, net | (108) | (108) | |||
Net loss | (12,443) | (12,443) | |||
BALANCE at Jun. 30, 2017 | $ 394,184 | $ (3,117) | $ (72) | $ (188,802) | $ 202,193 |
BALANCE (in shares) at Jun. 30, 2017 | 68,657,000 | 68,657,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (12,443) | $ (4,792) | $ (4,404) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 20,597 | 20,506 | 19,072 |
Stock-based compensation expense | 9,789 | 8,871 | 8,413 |
Amortization of premium on investments | 374 | 161 | 120 |
Loss on disposal of property, equipment and other assets | 56 | 145 | 97 |
Provision for doubtful accounts receivable | 217 | 216 | 182 |
Impairment of indemnification asset | 0 | 0 | 3,584 |
Fair value of escrow settlement modification | 0 | 0 | 664 |
Gain on non-marketable investments | (920) | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | 1,292 | 3,683 | (2,918) |
Inventories | 711 | 2,910 | 11,413 |
Indemnification asset | 0 | 0 | 2,022 |
Prepaid expenses and other current assets | 605 | 2,109 | (4,249) |
Other assets | (215) | (4) | (34) |
Accounts payable | (1,079) | (701) | (795) |
Accrued liabilities and other | (5,127) | (1,249) | 7,687 |
Accrued employee compensation | (2,185) | 3,101 | (1,216) |
Accrued taxes and surcharges | (303) | (5,985) | (2,284) |
Deferred revenue | 5,064 | 6,115 | 3,791 |
Net cash provided by operating activities | 16,433 | 35,086 | 41,145 |
Cash flows from investing activities: | |||
Purchases of investments | (31,994) | (48,210) | (12,176) |
Proceeds from sale/maturities of investments | 29,280 | 9,673 | 5,757 |
Purchases of property and equipment | (10,937) | (10,834) | (11,393) |
Cost of acquisition of businesses, net of cash acquired | 0 | (14,322) | 0 |
Purchase of software licenses, patents and other intangible assets | (567) | 0 | (1,692) |
Proceeds from sales/maturities of non-marketable investments | 1,074 | 0 | 0 |
Net cash used in investing activities | (13,144) | (63,693) | (19,504) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 6,067 | 10,589 | 9,294 |
Taxes paid on vested and released stock awards | (1,543) | (1,280) | (1,226) |
Repurchases of common stock | (2,298) | (819) | 0 |
Payments made under capital leases | (18) | (319) | (393) |
Debt issuance costs | 0 | 0 | (626) |
Net cash provided by (used in) financing activities | 2,208 | 8,171 | 7,049 |
Net increase (decrease) in cash and cash equivalents | 5,497 | (20,436) | 28,690 |
Cash and cash equivalents at beginning of year | 61,726 | 82,162 | 53,472 |
Cash and cash equivalents at end of year | 67,223 | 61,726 | 82,162 |
Supplemental cash flow disclosure: | |||
Cash paid for interest | 12 | 26 | 298 |
Cash paid for income taxes | 785 | 1,209 | 885 |
Noncash financing and investing activities: | |||
Purchase of patents included in period-end liabilities | 0 | 0 | 333 |
Unpaid portion of property and equipment purchases included in period-end accounts payable | $ 317 | $ 998 | $ 1,318 |
THE COMPANY AND SIGNIFICANT ACC
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2017 | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | 1. THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES The Company On July 26, 2017, the Company entered into a definitive Agreement and Plan of Merger (“Merger Agreement”) with Mitel US Holdings, Inc., a Delaware corporation, Shelby Acquisition Corporation, a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”) and, with respect to certain obligations set forth in the Merger Agreement, Mitel Networks Corporation, a Canadian corporation. See Note 18 for additional details regarding this definitive agreement. Fiscal Year End Principles of Consolidation - Use of Estimates Concentration of Credit Risk Fair Value of Financial Instruments - Cash and Cash Equivalents Investments The Company recognizes an impairment charge when a decline in the fair value of its investments is considered to be other-than-temporary. An impairment is considered other-than-temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of its entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost of the security. If an impairment is considered other-than-temporary based on (i) or (ii) described above, the entire difference between the amortized cost and the fair value of the security is recognized in earnings. If an impairment is considered other-than-temporary based on condition (iii), the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security, will be recognized in earnings and the amount relating to all other factors will be recognized in other comprehensive income (“OCI”). In estimating the amount and timing of cash flows expected to be collected, the Company considers all available information including past events, current conditions, the remaining payment terms of the security, the financial condition of the issuer, expected defaults, and the value of underlying collateral. The Company has determined that gross unrealized losses on short-term investments at June 30, 2017 and 2016 are temporary in nature because each investment meets our investment policy and credit quality requirements. The Company has the ability and intent to hold these investments until they recover their unrealized losses, which may not be until maturity. Evidence that we will recover our investments outweighs evidence to the contrary. Allowance for Doubtful Accounts - The change in allowance for doubtful accounts is summarized as follows (in thousands): June 30, 2017 2016 2015 Allowance for doubtful accounts - beginning $ 678 $ 631 $ 636 Current period provision 217 216 182 Provision related to the acquisition of a business — 79 — Write-offs charged to allowance, net of recoveries (395 ) (248 ) (187 ) Allowance for doubtful accounts - ending $ 500 $ 678 $ 631 Inventories Property and Equipment Software to be Sold, Leased or Marketed Business Combinations Goodwill and Purchased-Intangible Assets Purchased-intangible assets are amortized on a straight-line basis over the periods of benefit, ranging from two to eight years. The Company performs a review of purchased-intangible assets whenever events or changes in circumstances indicate that the useful life is shorter than it had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, the Company assesses the recoverability of purchased-intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life of the asset is shorter than originally estimated, the Company accelerates the rate of amortization and amortizes the remaining carrying value over the new shorter useful life. There was no impairment of purchased-intangible assets identified in fiscal 2017, 2016 and 2015. Long-Lived Assets Treasury Shares Revenue Recognition When a sales arrangement contains multiple elements, such as hardware and software products and/or services, we allocate revenue to each element based on relative selling prices. The relative selling price is determined using vendor specific objective evidence of fair value (“VSOE”) when available. When VSOE cannot be established, the Company attempts to determine the third party evidence of selling price (“TPE”) for the deliverables. TPE is determined based on competitor prices for similar deliverables when sold separately by the competitors. Generally, our product offerings differ from those of our competitors and comparable pricing of our competitors is often not available. Therefore, we are typically not able to determine TPE. When we are unable to establish selling price using VSOE or TPE, we use estimated selling prices (“ESP”) in our allocation of arrangement fees. The ESP for a deliverable is determined as the price at which we would transact if the products or services were sold on a stand-alone basis. Hosted and Related Services Revenues: The Company’s hosted and related services and solutions consist primarily of our proprietary hosted voice over Internet Protocol (“VoIP”) UC system as well as other services such as foreign and domestic calling plans, certain UC applications, internet service provisioning, training and other professional services. Additionally, the Company offers their customers the ability to purchase phones from them directly or rent such phones as part of their service agreements. The customers are not required to purchase phones from the Company directly as they can independently purchase such equipment. Customers enter into a one to three-year service agreement whereby they are billed for such services on a monthly basis. Monthly recurring hosted services are recognized on a straight line basis in the period when the service is delivered. The installation fees are recognized on a straight-line basis over the estimated customer life. The Company bills most of the monthly recurring hosted service revenue a month in advance. Any amounts billed and collected, but for which the service is not yet delivered, are included in deferred revenue. These amounts are recognized as revenues only when the service is delivered. The Company maintains a reserve for credits provided to customers for outages, quality issues, billing disputes or changes in the service levels that are included in the amounts that were billed in advance. The reserve for such credits is based on historical experiences and trends. The Company also maintains a reserve for amounts that are deemed as uncollectible. Product and Support and Services Revenues: The sale of IP telecommunication systems includes hardware, primarily phones and voice switches, software components and may also include training, installation, professional services and post-contractual support for the products. The Company’s business strategy is centered on selling to enterprise customers through channel partners rather than directly. Channel partners include resellers as well as value-added distributors who in turn sell to the resellers. Sales to value-added distributors allow the Company to leverage its existing distribution infrastructure and sales personnel. The typical system includes a combination of IP phones, switches and UC software applications. For sales transactions made both direct and to resellers revenue is recognized at the time of shipment provided that all the provisions of revenue recognition have been met. For sales to value-added distributors, revenue is initially deferred and is recognized at the time of sale by the distributor to their customer, provided all the provisions of revenue recognition have been met. The Company refers to this distribution approach as its two-tier distribution model and the recognition of revenue at the time of sale by the distributor as the sell through method. The Company recognizes revenue when persuasive evidence of an arrangement exists, product has shipped or delivery has occurred (depending on when title passes), the sales price is fixed or determinable and free of contingencies and significant uncertainties, and collection is reasonably assured. The fee is considered fixed or determinable at the execution of an agreement, based on specific products and quantities to be delivered at specified prices. The agreements with reseller partners generally do not include rights of return or acceptance provisions. Even though substantially all of the contractual agreements do not provide return privileges, there are circumstances for which the Company will accept a return. The Company maintains a reserve for such returns based on historical experience with reseller partners. The agreements with the Company’s value-added distributors allow for limited rights of return of products generally purchased within the previous 90 days. In addition to such return rights, the Company generally offers price protection provisions to its distributors when there is a permanent reduction of its sales prices. In such cases, the Company is obligated to grant the distributor a credit for the difference between the changes in the aggregate price of any amounts that have been purchased but unsold by the distributor as of the effective date of such decrease. In addition, certain of the Company’s distributors stock phones and switches and purchase licenses only upon sale to a value added reseller or end customer. Revenue is deferred for distributors until the distributor sells the hardware and license to their customer which would constitute a complete configuration of our system. To the extent that the Company’s agreements contain acceptance terms, the Company recognizes revenue upon product acceptance, unless the acceptance provision is deemed to be perfunctory. Payment terms to customers generally range from net 30 to net 60 days. In the event payment terms are extended materially from the Company’s standard business practices, the fees are deemed to not be fixed or determinable and revenue is recognized when the payment becomes due. The Company assesses the ability to collect from its customers based on a number of factors, including credit worthiness and past transaction history of the customer. If the customer is not deemed credit worthy, the Company defers all revenue from the arrangement until payment is received and all other revenue recognition criteria have been met. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of product revenue. Provisions for return allowances are recorded at the time revenue is recognized based on the Company’s historical experience. The provision for return allowances is recorded as a reduction to revenues on the statement of operations and is included as a reduction to accounts receivable on the balance sheet. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from the Company’s transactions and are recognized as the revenue recognition criteria are met. Nearly all of the Company’s system sales include the purchase of post-contractual support contracts with terms of up to five years, and the renewal rates on these contracts have been high historically. The Company recognizes support revenue on a ratable basis over the term of the support contract. Since the Company receives payment for support in advance of recognizing the related revenue, the Company carries a deferred revenue balance on the consolidated balance sheet. Most of the products and services included in an onsite-based system qualify as separate units of accounting. Many of the Company’s products have both software and non-software components that function together to deliver the essential functionality of the integrated system product. The Company analyzes all of its software and non-software products and services and considers the features and functionalities of the individual elements and the stand alone sales of those individual components among other factors, to determine which elements are essential or non-essential to the overall functionality of the integrated system product. The Company recognizes revenue related to installation services and training upon delivery of the service. The Company’s core software, which we refer to as “essential software,” is integrated with hardware and is essential to the functionality of the integrated system product. The Company also sells additional software which provides increased features and functions, but is not essential to the overall functionality of the integrated system products, which we refer to as “non-essential software.” At the initial purchase, the customer generally bundles together the hardware, essential software, non-essential software, as needed, and up to five years of post-contractual support. Thereafter, if the enterprise customer increases its end users and system functionality, it may add more hardware, both essential and non-essential software components, and related post-contractual support by purchasing them separately. The revenue for these multiple element arrangements is allocated to the non-essential software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the accounting guidance. The non-essential software deliverables included in a multiple element arrangement are subject to the industry specific software revenue recognition guidance. As the Company has not been able to obtain VSOE for all of the non-essential software deliverables in the arrangement, revenue allocated to the delivered non-essential software elements is recognized using the residual method in accordance with industry specific software revenue recognition guidance. Under the residual method, the amount of revenue recognized for the delivered non-essential software elements equaled the total allocated consideration less the VSOE of any undelivered elements bundled with such non-essential software elements. The Company has been able to establish VSOE for its professional and post contractual support services mainly based on the volume and the pricing of the stand-alone sales for these services within a narrow range. The Company establishes its ESP for products by considering factors including, but not limited to, geographies, customer segments and pricing practices. The determination of ESP is made through consultation with and formal approval by the Company’s management. The Company regularly reviews VSOE, TPE and ESP and maintains internal controls over the establishment and updates of these estimates. Channel Partner Programs and Incentives - Warranties Research and Development Costs Income and Telecom Taxes As a provider of communication services, the Company assesses whether to include the taxes and surcharges collected from customers and remitted to government authorities, including Universal Service Fund charges, sales, use, and various surcharges, in the Company’s revenues and expenses. This assessment includes whether the Company is the primary obligor or principal taxpayer for the taxes assessed in each jurisdiction where the Company does business. In jurisdictions where the Company determines that it is the principal taxpayer, the Company records the surcharges these within revenues and cost of hosted and related services in the Consolidated Statements of Operations as well as within accrued taxes and surcharges in the Consolidated Balance Sheets. In jurisdictions where the Company determines that it is merely a collection agent for the government authority, the Company does not include them in our revenues and cost of hosted and related services. Stock-Based Compensation th The following table shows total stock-based compensation expense included in the accompanying Consolidated Statements of Operations for the years ended June 30, 2017, 2016 and 2015 (in thousands): Year Ended June 30, 2017 2016 2015 Cost of hosted and related services revenue $ 261 $ 1,272 $ 1,215 Cost of product revenue 53 64 74 Cost of support and services revenue 370 590 497 Research and development 2,256 1,854 1,928 Sales and marketing 2,909 2,569 2,391 General and administrative 3,940 2,522 2,308 Total stock-based compensation expense $ 9,789 $ 8,871 $ 8,413 Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Recent Accounting Pronouncements New Accounting Updates Recently Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings, Recent Accounting Standards or Updates Not Yet Effective In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606) Topic 605, Revenue Recognition . The Company is in the process of evaluating the impact of its pending adoption of this guidance on its revenue transactions, including any impacts on associated processes, systems, and internal controls. The Company has started reviewing each of its revenue streams that may be impacted by the adoption of this guidance, including the determination whether the performance obligations will change as compared to current generally accepted accounting principles in the United States of America (“GAAP”), as well as determining the stand-alone selling price of each performance obligation. The Company is also assessing if sales commissions will need to be capitalized upon adoption of the new ASU and evaluating the proper period over which to amortize these capitalized costs. In addition, the Company is evaluating revenue recognition related to sales made to resellers and value-added distributors. The Company continues to evaluate the impact of this guidance on its consolidated financial statements and any preliminary assessments are subject to change. 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 ): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | 2. 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 The Company recognized $0.3 million associated with legal, accounting, consulting and other costs directly related to the acquisition as acquisition-related costs within the Consolidated Statement of Operations for fiscal 2016. 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 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 The Company recognized $1.2 million associated with legal, accounting, consulting and other costs directly related to the acquisition as acquisition-related costs within the Consolidated Statement of Operations for fiscal 2016. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Jun. 30, 2017 | |
BALANCE SHEET COMPONENTS [Abstract] | |
BALANCE SHEET COMPONENTS | 3. BALANCE SHEET COMPONENTS Balance sheet components consisted of the following: As of June 30, 2017 2016 (Amounts in thousands) Inventories: Raw materials $ 52 $ 57 Distributor inventory 2,192 1,677 Finished goods 9,380 10,754 Total inventories $ 11,624 $ 12,488 Property and equipment: Computer equipment and tooling $ 35,872 $ 33,739 Customer premise equipment 23,522 17,194 Software 7,932 7,328 Furniture and fixtures 3,676 3,880 Leasehold improvements & others 9,643 8,836 Total property and equipment 80,645 70,977 Less accumulated depreciation and amortization (61,579 ) (49,426 ) Property and equipment – net $ 19,066 $ 21,551 Deferred revenue: Product $ 7,076 $ 5,433 Support and services 61,485 59,465 Hosted and related services 14,208 12,807 Total deferred revenue $ 82,769 $ 77,705 Depreciation expense for the years ended June 30, 2017, 2016 and 2015 was $12.9 million, $11.9 million and $10.6 million, respectively. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Jun. 30, 2017 | |
SHORT-TERM INVESTMENTS [Abstract] | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS The following is a summary of the Company’s short-term investments (in thousands): June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds and commercial paper $ 23,213 $ — $ (27 ) $ 23,186 U.S. Government agency securities 25,524 — (45 ) 25,479 Total short-term investments $ 48,737 $ — $ (72 ) $ 48,665 June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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 Tax amounts related to unrealized gains (losses) were immaterial for all periods presented. The following table summarizes the maturities of the Company’s short-term investments by contractual maturity (in thousands): June 30, 2017 Amortized Cost Fair Value Less than 1 year $ 43,058 $ 42,993 Due in 1 to 3 years 5,679 5,672 $ 48,737 $ 48,665 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 $ 46,397 $ 46,433 Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2017 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 5. GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of tangible and intangible assets acquired. Goodwill amounts are not amortized. The following table summarizes the changes in the carrying value of goodwill (in thousands): Total As of June 30, 2015 $ 122,750 Addition 6,699 As of June 30, 2016 $ 129,449 As of June 30, 2017 $ 129,449 Intangible assets The following is a summary of the Company’s intangible assets (in thousands): June 30, 2017 June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 5,296 $ (4,140 ) $ 1,156 $ 4,446 $ (3,919 ) $ 527 Technology 31,434 (27,243 ) 4,191 31,434 (23,523 ) 7,911 Customer relationships 24,700 (18,093 ) 6,607 24,700 (14,513 ) 10,187 Other 178 (45 ) 133 178 (15 ) 163 Intangible assets $ 61,608 $ (49,521 ) $ 12,087 $ 60,758 $ (41,970 ) $ 18,788 The intangible assets are being amortized over useful lives ranging from 2 years to 8 years. Amortization of intangible assets for the years ended June 30, 2017, 2016 and 2015 was $7.6 million, $8.4 million and $8.1 million, respectively. The estimated future amortization expenses for intangible assets, excluding intangible assets in process and other, for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2018 $ 5,683 2019 4,180 2020 1,437 2021 647 2022 140 Thereafter — Total $ 12,087 |
FAIR VALUE DISCLOSURE
FAIR VALUE DISCLOSURE | 12 Months Ended |
Jun. 30, 2017 | |
FAIR VALUE DISCLOSURE [Abstract] | |
FAIR VALUE DISCLOSURE | 6. 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): June 30, 2017 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 1,485 $ 1,485 $ — $ — Short-term investments: Corporate notes and commercial paper 23,186 — 23,186 — U.S. Government agency securities 25,479 — 25,479 — Total assets measured and recorded at fair value $ 50,150 $ 1,485 $ 48,665 $ — The above table excludes $65.7 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. There were foreign exchange forward contracts (see Note 15) outstanding as of June 30, 2017 and 2016 which were entered into by the Company on the last day of the period. This fair value is not material. 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 bonds, 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 fiscal 2017 and 2016. 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 value hierarchy as of the date in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1 and Level 2 of the fair value hierarchy for any of the periods presented. 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 fiscal 2017, 2016 and 2015 that required a nonrecurring fair value analysis to be performed on non-financial assets. |
LINE OF CREDIT
LINE OF CREDIT | 12 Months Ended |
Jun. 30, 2017 | |
LINE OF CREDIT [Abstract] | |
LINE OF CREDIT | 7. 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 (“Credit Facility”). This Credit Facility replaces the Company’s previous credit facility. The Credit Facility includes a revolving loan facility for an aggregate principal amount not exceeding $100.0 million. The Credit Facility matures on October 22, 2019 and is payable in full upon maturity. The amounts borrowed and repaid under the Credit Facility are available for future borrowings. The borrowings under the Credit Facility accrue interest (at the election of the Company) either at (i) the London interbank offered rate then in effect, plus a margin of between 1.50% and 2.25%, which is based on the Company’s consolidated EBITDA (as defined in the Credit Facility), or (ii) the higher of (a) the bank’s publicly-announced prime rate then in effect and (b) the federal funds rate plus 0.50%, in each case of (a) or (b), plus a margin of between 0.00% and 0.50%, which will be based upon the Company’s consolidated EBITDA. The Company also pays commitment fees during the term of the Credit Facility which vary depending on the Company’s consolidated EBITDA. The Credit Facility is secured by substantially all of the Company’s assets. As of June 30, 2017, the Company had $51.7 million available for borrowing under the Credit Facility. 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 June 30, 2017. As of June 30, 2017, 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. |
NET LOSS PER COMMON SHARE
NET LOSS PER COMMON SHARE | 12 Months Ended |
Jun. 30, 2017 | |
NET LOSS PER COMMON SHARE [Abstract] | |
NET LOSS PER COMMON SHARE | 8. NET LOSS PER COMMON SHARE Basic net loss per share is determined by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is determined by dividing net loss by the weighted average number of common shares used in the basic net loss per common 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. The following table is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per common share (in thousands other than per share amounts): Year Ended June 30, 2017 2016 2015 Numerator: Net loss $ (12,443 ) $ (4,792 ) $ (4,404 ) Denominator: Weighted average common shares outstanding (basic and diluted) 68,100 66,405 63,953 Net loss per share Basic and diluted $ (0.18 ) $ (0.07 ) $ (0.07 ) Anti-dilutive weighted shares related to stock-based options and awards excluded from the calculation of diluted shares were approximately 5.0 million, 4.9 million, and 3.8 million for the years ended June 30, 2016, 2015 and 2014 respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2017 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 9. INCOME TAXES The components of loss before income taxes consist of the following (in thousands): Year Ended June 30, 2017 2016 2015 Domestic $ (12,842 ) $ (5,375 ) $ (4,416 ) Foreign 1,337 1,143 973 Total $ (11,505 ) $ (4,232 ) $ (3,443 ) The provision for income taxes consists of the following (in thousands): Year Ended June 30, 2017 2016 2015 Current: Federal $ 1 $ (129 ) $ 159 State 272 100 528 Foreign 757 685 299 Total current income tax 1,030 656 986 Deferred: Federal 34 17 — State 5 2 — Foreign (131 ) (115 ) (25 ) Total deferred income tax (92 ) (96 ) (25 ) Provision for income taxes $ 938 $ 560 $ 961 The difference between the provision for income taxes and the amount computed by applying the federal statutory income tax rate to loss before benefit from income tax is as follows (in thousands): Year Ended June 30, 2017 2016 2015 Benefit from income tax at federal statutory rate $ (3,913 ) $ (1,439 ) $ (1,140 ) Non deductible expenses 302 385 442 Federal Alternative Minimum Tax 1 (129 ) 159 Stock-based compensation 306 273 314 Fair value of escrow settlement modification — — 225 Credits (976 ) (1,775 ) (574 ) State taxes 272 100 528 Other 211 201 (56 ) Increase in valuation allowance 4,735 2,944 1,063 Total $ 938 $ 560 $ 961 Significant components of deferred tax assets consist of the following (in thousands): June 30, 2017 2016 Deferred Tax Assets Net operating loss carryforwards $ 32,598 $ 29,015 Tax credit carryforwards 24,116 20,659 Stock compensation 5,782 11,295 Deferred revenue 3,337 3,330 Other 6,866 6,955 Gross deferred tax assets 72,699 71,254 Valuation allowance (72,158 ) (69,413 ) Total deferred tax assets 541 1,841 Deferred Tax Liabilities Acquistion intangibles (312 ) (1,927 ) Total deferred tax liabilities (312 ) (1,927 ) Total net deferred tax assets (liabilities) $ 229 $ (86 ) During the year ended June 30, 2017, the decrease in the Company’s deferred tax assets of $1.3 million was primarily due to changes in accruals, partially offset by an increase in tax credit and loss carryforwards. In addition, the decrease in the Company’s total deferred tax liabilities of $1.6 million was due to the amortization of the identifiable intangible property. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will be realized. The realization of deferred tax assets is based on several factors, such as the Company’s history of past earnings, the scheduling of deferred tax liabilities and projected future income from operating activities. As of June 30, 2017, management does not believe it is more likely than not that the net U.S. federal and state deferred tax assets are realizable. The Company intends to maintain the valuation allowance on its net deferred tax assets until sufficient positive evidence exists to support reversal of some or all of the allowance. The Company’s future income tax expense (benefit) will be affected in the event changes to the valuation allowance are required. The Company had federal net operating loss carryforwards of approximately $107.1 million as of June 30, 2017, which expire at various dates between 2023 and 2037. These net operating loss carryforwards include the effects of a favorable tax ruling determined under Section 382 by the Internal Revenue Service in March 2010 as well as federal net operating loss carryforwards available from prior acquisitions. The Company has not completed Section 382 studies for net operating losses incurred in the years subsequent to July 2007. Upon the completion of these studies, the amount of net operating losses available for utilization may be limited. Included in the net operating loss carryforward is approximately $13.1 million (pretax) of net operating loss attributable to excess stock option deductions. The related tax benefit of $4.4 million, if realized, will be recorded as additional paid-in capital. Including the net operating loss carryforwards available from prior acquisitions, the Company had California and other state net operating loss carryforwards of approximately $19.9 million and $9.8 million, respectively, which expire at various dates between fiscal 2018 and 2037. As of June 30, 2017, the Company had $17.5 million in both Federal and California tax credit carryforwards. The federal tax credit carry forwards expire at various dates between 2023 and 2037. The California tax credits may be carried forward indefinitely. The Company has not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries because it is management’s intention to permanently reinvest such undistributed earnings outside of the United States. The Company evaluates its circumstances and reassesses this determination on a periodic basis. As of June 30, 2017, the determination of the unrecorded deferred tax liability related to these earnings was not practicable. If circumstances change and it becomes apparent that some or all of the undistributed earnings of the Company's foreign subsidiaries will be remitted in the foreseeable future, the Company will be required to recognize a deferred tax liability on those amounts. The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available, including changes in tax regulations, the outcome of relevant court cases, and other pertinent information. As of June 30, 2017, 2016 and 2015, the Company's total amount of unrecognized tax benefit was approximately $6.0 million, $6.3 million and $5.1 million, respectively. The aggregate annual changes in the balance of gross unrecognized tax benefits are as follows (in thousands): Year Ended June 30, 2017 2016 2015 Beginning balance $ 6,274 $ 5,065 $ 4,165 Decrease in tax positions for prior years (1,210 ) (24 ) — Increase in tax positions for prior years 142 — — Increase in tax positions for current year 841 1,233 900 Ending balance $ 6,047 $ 6,274 $ 5,065 As of June 30, 2017, the Company's total amount of unrecognized tax benefit was approximately $6.0 million, of which, only $0.4 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 recorded position. Accordingly, the Company’s provisions on federal, state and foreign tax-related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved. The Company’s primary tax jurisdiction is the United States. For federal and state tax purposes, the tax years 2001 through 2015 remain open and subject to tax examination by the appropriate federal or state taxing authorities. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Jun. 30, 2017 | |
Common Stock [Abstract] | |
COMMON STOCK | 10. COMMON STOCK Common Shares Reserved for Issuance At June 30, 2017, the Company had reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 4,041 Reserved under employee stock purchase plan 3,189 Total 7,230 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2017 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
EMPLOYEE BENEFIT PLANS | 11. EMPLOYEE BENEFIT PLANS Equity Stock Incentive Plans The Company grants nonqualified (“NQSO”), restricted stock awards and restricted stock units to officers, directors, employees and consultants under the 2015 Equity Incentive Plan (“2015 Plan”). The 2015 Plan provides for the granting of incentive stock options and NQSOs for over a period not to exceed ten years and at exercise prices that are not less than 100% and 85%, respectively, of the estimated fair market value of the Company’s common stock on the date of grant as determined by the Board of Directors. Stock options issued under the 2015 Plan generally vest 25% at one year and then 1/36 th The following table summarizes the Company’s stock option activities for the fiscal year ended June 30, 2017 (in thousands, except per share amounts): 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 1,503 7.91 Options exercised (488 ) 4.95 Options cancelled/forfeited (741 ) 7.86 Balance at June 30, 2017 6,542 $ 6.61 6.54 $ 2,480 Vested and expected to vest at June 30, 2017 5,747 $ 6.47 6.25 $ 2,479 Options exercisable at June 30, 2017 4,043 $ 6.03 5.33 $ 2,434 The weighted-average grant-date fair value of options granted during the years ended June 30, 2017, 2016, and 2015 was $3.21, $3.22, and $3.02, respectively. The total intrinsic value of options exercised in the years ended June 30, 2017, 2016, and 2015 was $1.0 million, $4.9 million, and $3.2 million, respectively, and represents the difference between the fair value of the Company’s common stock at the dates of exercise and the exercise price of the options. The following table summarizes information about outstanding and exercisable options at June 30, 2017 (in thousands, except years and exercise prices): Options Outstanding Options Exercisable Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $3.50 - 4.25 322 5.10 $ 4.03 322 $ 4.03 $4.31 710 5.73 4.31 691 4.31 $4.35 - 5.15 812 4.24 4.79 795 4.79 $5.25 - 6.61 1,011 5.68 6.28 743 6.35 $6.64 - 7.23 664 7.10 6.87 366 6.81 $7.25 - 7.41 724 8.10 7.36 322 7.36 $7.42 - 8.02 1,063 7.53 7.77 403 7.70 $8.03 33 9.20 8.03 — — $8.04 760 9.13 8.04 — — $8.12 - 13.73 443 4.69 9.04 401 9.03 Total 6,542 6.54 $ 6.61 4,043 $ 6.03 Stock-based Compensation The Company estimates the fair value of stock options using the Black-Scholes option-pricing model, which requires the use of the following assumptions: (i) the expected volatility of the Company’s common stock, which is based on a blended rate of the Company’s own common stock volatility and the volatility data of certain peer companies; (ii) the expected term which is the period that the Company’s stock-based awards are expected to be outstanding based on Company’s actual historic grant, exercise, and post-vesting forfeiture data; (iii) an expected dividend yield, which is assumed to be 0% as the Company has not paid and, as of the date of grant, did not anticipate paying dividends in the foreseeable future; and (iv) a risk-free interest rate, which is based on the U.S. Treasury yield curve in effect on the date of grant for zero coupon U.S. Treasury notes with maturities approximately equal to expected term of the option award. The fair value of each option is estimated on the date of grant using the Black-Scholes option valuation method, with the following assumptions: Year Ended June 30, 2017 2016 2015 Expected life from grant date of option 5.15-5.17 years 5.09-5.13 years 5.04-5.09 years Risk-free interest rate 1.13-1.94% 1.24-1.59% 1.45-1.70% Expected volatility 39-45% 46-48% 49-50% Expected dividend yield 0% 0% 0% As of June 30, 2017, total unrecognized compensation cost related to stock options granted to employees and non-employee directors was $3.2 million, net of estimated forfeitures, which the Company expects to recognize over 2.6 years. Pursuant to the terms of the Merger Agreement, any unvested stock option will be cancelled upon consummation of the merger. 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 Pursuant to the definitive agreement entered into with Mitel, the Company’s ESPP was suspended on July 26, 2017, the date of the Merger Agreement, and the Company subsequently refunded contributions received from participating employees. The ESPP will be terminated upon the consummation of the merger. The Company expects that there will be no further offering periods under the ESPP prior to its termination in connection with the closing of the merger. Refer to Note 18 for additional details regarding this definitive agreement. The fair value of stock purchase rights granted under the ESPP is estimated using the Black-Scholes option pricing model, based on the following assumptions: Year Ended June 30, 2017 2016 2015 Expected life from grant date of ESPP 0.33-0.50 years 0.50 years 0.50 years Risk-free interest rate 0.40-1.08% 0.14-0.41% 0.06-0.09% Expected volatility 32-37% 29-37% 35-43% Expected dividend yield 0% 0% 0% Expenses related to shares issued under the ESPP are included in stock-based compensation expense. The Company issued 689,007 shares and 737,806 shares under the ESPP in fiscal 2017 and 2016, respectively, at a weighted average price per share of $5.30 and $5.51, respectively. As of June 30, 2017, total unrecognized compensation cost related to the ESPP plan was $0.4 million, which the Company expects to recognize over 0.5 years. Restricted Stock Awards and Restricted Stock Units Restricted stock award and restricted stock unit activity for the year ended June 30, 2017 is as follows (in thousands): Shares Weighted- Average Grant Date Fair Value Outstanding - July 1, 2016 1,927 $ 6.99 Awarded 1,302 7.73 Released (629 ) 6.83 Forfeited (398 ) 7.40 Outstanding - June 30, 2017 2,202 $ 7.39 The grant-date fair value of restricted stock units granted during fiscal 2017, 2016 and 2015 was $10.1 million, $9.3 million and $5.8 million, respectively. As permitted under the 2007 Plan, in fiscal 2016, the Company issued 26,773 shares of restricted stock awards, with a fair value of $0.2 million, to non-employee directors electing to receive them in lieu of an annual cash retainer. These shares were issued quarterly and vest immediately upon issuance. No restricted stock awards were issued in fiscal 2017. As of June 30, 2017, total unrecognized compensation cost related to restricted stock awards and units awarded to employees and directors was $5.0 million, net of estimated forfeitures, which the Company expects to recognize over 2.5 years. Pursuant to the terms of the Merger Agreement, any unvested restricted stock units will be cancelled upon consummation of the merger. |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Jun. 30, 2017 | |
TREASURY STOCK [Abstract] | |
TREASURY STOCK | 12. 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 our management. This stock repurchase authorization has no expiration date. Under these programs, 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: 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 $ — Authorization of repurchase shares in May 2016 20,000 Repurchase of common stock (126 ) $ 6.49 $ 819 (819 ) Balance as of June 30, 2016 19,181 Repurchase of common stock (339 ) $ 6.77 $ 2,298 (2,298 ) Balance as of June 30, 2017 $ 16,883 There were no share repurchases in fiscal 2015. There were no retirements of treasury stock during fiscal years 2017, 2016, and 2015. |
LITIGATION, COMMITMENTS AND CON
LITIGATION, COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2017 | |
LITIGATION, COMMITMENTS AND CONTINGENCIES [Abstract] | |
LITIGATION, COMMITMENTS AND CONTINGENCIES | 13. LITIGATION, COMMITMENTS AND CONTINGENCIES Litigation On September 15, 2011, a lawsuit was filed against the Company and several other companies in the United States District Court for the Eastern District of Texas by a patent holding company alleging patent infringement. On July 22, 2015, the Company and the plaintiff executed settlement and license agreements. On July 23, 2015, the Company and the plaintiff filed a stipulation with the Court to dismiss all claims and counterclaims with prejudice, which the Court granted on July 31, 2015. The Company recorded a $1.0 million charge related to past damages related to the settlement and license agreements. This charge is classified as product cost of revenue within the consolidated statement of operations for the fiscal year ended June 30, 2015. The settlement and license agreements also include an ongoing royalty on certain products which are not expected to have a material impact on the Company’s financial results. Arbitration On February 19, 2015, the Company and Fortis entered into an agreement to settle the escrow claim with a payout in cash to the Company in the amount of $2.1 million, with all other cash and shares held in escrow being released to the former shareholders of M5. As the settlement payout ratio of cash and stock mix differed from the Purchase Agreement, the Company recognized a $0.7 million modification accounting charge related to the change in fair value of foregone stock per the Purchase Agreement. The fair value of the common stock was measured using the closing price of our common stock as of February 19, 2015, the final settlement date. Per the Purchase Agreement, the non-prevailing party was required to reimburse professional fees of the prevailing party. The arbitration ruling in December 2014 determined the former M5 shareholders to be the prevailing party, thus the Company was deemed to be required to reimburse professional fees incurred by former M5 shareholders related to the escrow proceedings. The Company and Fortis entered into an agreement to settle the professional fee reimbursement for $2.5 million, as such, the Company recognized this amount as a professional fee reimbursement charge classified as settlements and defense fees within the consolidated statement of operations for the fiscal year ended June 30, 2015. Indemnification asset - Contingencies - Settlements and defense fees Leases Years Ending June 30, Operating Leases 2018 $ 7,095 2019 5,688 2020 4,287 2021 2,499 2022 1,610 Therafter 940 Total minimum lease payments $ 22,119 Minimum lease payments have not been reduced by minimum sublease rentals of $1.6 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 to U.S. dollars at the interbank exchange rate on June 30, 2017. Rent expense for the years ended June 30, 2017, 2016, and 2015, was $5.7 million, $5.4 million and $5.6 million, respectively. Purchase commitments Indemnification - The Company also has entered into customary indemnification agreements with each of its officers and directors. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2017 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | 14. SEGMENT INFORMATION ASC Topic 280, Segment Reporting 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): Year Ended June 30, 2017 2016 2015 United States of America $ 328,490 $ 330,841 $ 330,318 International 29,269 29,443 29,352 Total $ 357,759 $ 360,284 $ 359,670 Revenue from one value-added distributor accounted for approximately 26%, 27% and 26% of the total revenue during the years ended June 30, 2017, 2016 and 2015, respectively. The following presents a summary by geographic region of long-lived assets, excluding deferred tax assets, other assets, and intangible assets (in thousands): As at June 30, 2017 2016 United States of America $ 17,764 $ 20,323 International 1,302 1,228 Total $ 19,066 $ 21,551 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Jun. 30, 2017 | |
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 fiscal 2017 and 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 June 30, 2017 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 our foreign exchange forward contracts outstanding as of June 30, 2017 and 2016 (in thousands). June 30, 2017 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 2,870 $ 2,177 British pound £ 2,250 2,904 Canadian dollar $ 860 657 Euro € 1,010 1,143 Total $ 6,881 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 |
EMPLOYEE 401(K) PLAN
EMPLOYEE 401(K) PLAN | 12 Months Ended |
Jun. 30, 2017 | |
EMPLOYEE 401(K) PLAN [Abstract] | |
EMPLOYEE 401(K) PLAN | 16. EMPLOYEE 401(K) PLAN Employee 401(k) Plan - |
QUARTERLY FINANCIAL DATA (Unaud
QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended |
Jun. 30, 2017 | |
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | 17. QUARTERLY FINANCIAL DATA (Unaudited) The following table summarizes the Company’s information on total revenue, gross profit, net income (loss) and earnings per share by quarter for the fiscal years ended June 30, 2017 and 2016. This data was derived from the Company’s unaudited consolidated financial statements. Three Months Ended Jun. 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 Jun. 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 (In thousands, except per share amounts) Total revenue $ 95,721 $ 87,730 $ 88,034 $ 86,274 $ 94,592 $ 85,236 $ 90,431 $ 90,025 Gross profit 60,567 56,222 55,504 54,323 59,487 52,436 57,885 58,012 Net income (loss) (956 ) (2,940 ) (2,916 ) (5,631 ) (744 ) (8,707 ) 2,545 2,114 Basic net income (loss) per common share $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.01 ) $ (0.13 ) $ 0.04 $ 0.03 Diluted net income (loss) per common share $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.01 ) $ (0.13 ) $ 0.04 $ 0.03 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Jun. 30, 2017 | |
SUBSEQUENT EVENT [Abstract] | |
SUBSEQUENT EVENT | 18. SUBSEQUENT EVENT On July 26, 2017, the Company entered into a definitive Agreement and Plan of Merger with Mitel US Holdings, Inc., a Delaware corporation, Shelby Acquisition Corporation, a Delaware corporation and a wholly owned subsidiary of Parent and, with respect to certain obligations set forth in the Merger Agreement, Mitel Networks Corporation, a Canadian corporation. Pursuant to and subject to the terms and conditions of the Merger Agreement, Merger Sub has commenced an all-cash tender offer for any and all of ShoreTel’s outstanding shares of common stock, par value $0.001 per share, at a purchase price of $7.50 per share, net to the seller in cash, without interest, and subject to any required withholding of taxes. The transaction is subject to certain conditions, including the tender of at least one share more than half of all the Company’s common stock outstanding as well as regulatory and other related approvals. The Company has agreed to operate its business in the ordinary course during the period between the execution of the Merger Agreement and the effective time of the merger and has agreed to certain other customary restrictions on its operations, as set forth in the Merger Agreement. On August 21, 2017, Louis Scarantino, a purported stockholder of the Company, filed a putative stockholder class action complaint in United States District Court in the Northern District of California against the Company, the individual members of the ShoreTel Board, the Offeror, Parent and Mitel, captioned Scarantino v. ShoreTel, Inc., et al. On August 22, 2017, Noradura Frydman, a purported stockholder of the Company, filed a putative stockholder class action complaint in United States District Court in the Northern District of California against the Company and the individual members of the ShoreTel Board, captioned Frydman v. ShoreTel, Inc., et al. On August 23, 2017, Joseph Mozee, a purported stockholder of the Company, filed a putative stockholder class action complaint in the United States District Court in the Northern District of California against the Company, the individual members of the ShoreTel Board, the Offeror, Parent and Mitel, captioned Mozee v. ShoreTel, Inc., et al. On August 24, 2017, David H. Simonson, a purported stockholder of the Company, filed a putative stockholder class action complaint in the United States District Court in the Northern District of California against the Company, the individual members of the ShoreTel Board, the Offeror, Parent and Mitel, captioned Simonson v. ShoreTel, Inc., et al. On August 28, 2017, Armando Herrera, a purported stockholder of the Company, filed a putative stockholder class action complaint in United States District Court in the Northern District of California against the Company, the individual members of the ShoreTel Board, the Offeror, Parent and Mitel, captioned Herrera v. ShoreTel, Inc., et al. On August 31, 2017, Gianfranca De Angelis, a purported stockholder of the Company, filed a putative stockholder class action complaint in the United States District Court in the Northern District of California against the Company and the individual members of the ShoreTel Board, captioned De Angelis v. ShoreTel, Inc., et al. The Scarantino, Frydman, Simonson and De Angelis Complaints each assert that defendants violated Sections 14(e), 14(d)(4), and 20(a) of the Exchange Act by making untrue statements of material fact and omitting certain material facts related to the Merger Agreement and related transactions (“Transactions”) in the Company’s Schedule 14D-9. The Mozee and Herrera Complaints likewise assert that defendants violated Sections 14(e) and 20(a) of the Exchange Act by making untrue statements of material fact and omitting certain material facts related to the Transactions in the Company’s Schedule 14D-9. The Mozee Complaint also alleges that the members of the ShoreTel Board breached their fiduciary duties in connection with the Transactions because the Transactions do not appropriately value the Company, were the result of a flawed sale process, the Merger Agreement includes preclusive deal terms, and the Company’s officers and directors have potential conflicts. The Complaints seek, among other things, an order enjoining defendants from consummating the Transactions, money damages and an award of attorneys’ and experts’ fees. The Company believes that the lawsuits are without merit and, if the lawsuits are pursued, the Company will vigorously defend itself. The Company is unable to estimate a reasonably possible loss or range of loss, if any, at the current time. As contemplated by the proposed resolution of the litigations described above, the Company has provided certain additional disclosures that are supplemental to those contained in the Schedule 14D-9. |
THE COMPANY AND SIGNIFICANT A26
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Fiscal Year End | Fiscal Year End |
Principles of Consolidation | Principles of Consolidation - |
Use of Estimates | Use of Estimates |
Concentration of Credit Risk | Concentration of Credit Risk |
Fair Value of Financial Instruments | Fair Value of Financial Instruments - |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investments | Investments The Company recognizes an impairment charge when a decline in the fair value of its investments is considered to be other-than-temporary. An impairment is considered other-than-temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of its entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost of the security. If an impairment is considered other-than-temporary based on (i) or (ii) described above, the entire difference between the amortized cost and the fair value of the security is recognized in earnings. If an impairment is considered other-than-temporary based on condition (iii), the amount representing credit losses, defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security, will be recognized in earnings and the amount relating to all other factors will be recognized in other comprehensive income (“OCI”). In estimating the amount and timing of cash flows expected to be collected, the Company considers all available information including past events, current conditions, the remaining payment terms of the security, the financial condition of the issuer, expected defaults, and the value of underlying collateral. The Company has determined that gross unrealized losses on short-term investments at June 30, 2017 and 2016 are temporary in nature because each investment meets our investment policy and credit quality requirements. The Company has the ability and intent to hold these investments until they recover their unrealized losses, which may not be until maturity. Evidence that we will recover our investments outweighs evidence to the contrary. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts - The change in allowance for doubtful accounts is summarized as follows (in thousands): June 30, 2017 2016 2015 Allowance for doubtful accounts - beginning $ 678 $ 631 $ 636 Current period provision 217 216 182 Provision related to the acquisition of a business — 79 — Write-offs charged to allowance, net of recoveries (395 ) (248 ) (187 ) Allowance for doubtful accounts - ending $ 500 $ 678 $ 631 |
Inventories | Inventories |
Property and Equipment | Property and Equipment |
Software to be Sold, Leased or Marketed | Software to be Sold, Leased or Marketed |
Business Combinations | Business Combinations |
Goodwill and Purchased-Intangible Assets | Goodwill and Purchased-Intangible Assets Purchased-intangible assets are amortized on a straight-line basis over the periods of benefit, ranging from two to eight years. The Company performs a review of purchased-intangible assets whenever events or changes in circumstances indicate that the useful life is shorter than it had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, the Company assesses the recoverability of purchased-intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life of the asset is shorter than originally estimated, the Company accelerates the rate of amortization and amortizes the remaining carrying value over the new shorter useful life. There was no impairment of purchased-intangible assets identified in fiscal 2017, 2016 and 2015. |
Long-Lived Assets | Long-Lived Assets |
Treasury Shares | Treasury Shares |
Revenue Recognition | Revenue Recognition When a sales arrangement contains multiple elements, such as hardware and software products and/or services, we allocate revenue to each element based on relative selling prices. The relative selling price is determined using vendor specific objective evidence of fair value (“VSOE”) when available. When VSOE cannot be established, the Company attempts to determine the third party evidence of selling price (“TPE”) for the deliverables. TPE is determined based on competitor prices for similar deliverables when sold separately by the competitors. Generally, our product offerings differ from those of our competitors and comparable pricing of our competitors is often not available. Therefore, we are typically not able to determine TPE. When we are unable to establish selling price using VSOE or TPE, we use estimated selling prices (“ESP”) in our allocation of arrangement fees. The ESP for a deliverable is determined as the price at which we would transact if the products or services were sold on a stand-alone basis. Hosted and Related Services Revenues: The Company’s hosted and related services and solutions consist primarily of our proprietary hosted voice over Internet Protocol (“VoIP”) UC system as well as other services such as foreign and domestic calling plans, certain UC applications, internet service provisioning, training and other professional services. Additionally, the Company offers their customers the ability to purchase phones from them directly or rent such phones as part of their service agreements. The customers are not required to purchase phones from the Company directly as they can independently purchase such equipment. Customers enter into a one to three-year service agreement whereby they are billed for such services on a monthly basis. Monthly recurring hosted services are recognized on a straight line basis in the period when the service is delivered. The installation fees are recognized on a straight-line basis over the estimated customer life. The Company bills most of the monthly recurring hosted service revenue a month in advance. Any amounts billed and collected, but for which the service is not yet delivered, are included in deferred revenue. These amounts are recognized as revenues only when the service is delivered. The Company maintains a reserve for credits provided to customers for outages, quality issues, billing disputes or changes in the service levels that are included in the amounts that were billed in advance. The reserve for such credits is based on historical experiences and trends. The Company also maintains a reserve for amounts that are deemed as uncollectible. Product and Support and Services Revenues: The sale of IP telecommunication systems includes hardware, primarily phones and voice switches, software components and may also include training, installation, professional services and post-contractual support for the products. The Company’s business strategy is centered on selling to enterprise customers through channel partners rather than directly. Channel partners include resellers as well as value-added distributors who in turn sell to the resellers. Sales to value-added distributors allow the Company to leverage its existing distribution infrastructure and sales personnel. The typical system includes a combination of IP phones, switches and UC software applications. For sales transactions made both direct and to resellers revenue is recognized at the time of shipment provided that all the provisions of revenue recognition have been met. For sales to value-added distributors, revenue is initially deferred and is recognized at the time of sale by the distributor to their customer, provided all the provisions of revenue recognition have been met. The Company refers to this distribution approach as its two-tier distribution model and the recognition of revenue at the time of sale by the distributor as the sell through method. The Company recognizes revenue when persuasive evidence of an arrangement exists, product has shipped or delivery has occurred (depending on when title passes), the sales price is fixed or determinable and free of contingencies and significant uncertainties, and collection is reasonably assured. The fee is considered fixed or determinable at the execution of an agreement, based on specific products and quantities to be delivered at specified prices. The agreements with reseller partners generally do not include rights of return or acceptance provisions. Even though substantially all of the contractual agreements do not provide return privileges, there are circumstances for which the Company will accept a return. The Company maintains a reserve for such returns based on historical experience with reseller partners. The agreements with the Company’s value-added distributors allow for limited rights of return of products generally purchased within the previous 90 days. In addition to such return rights, the Company generally offers price protection provisions to its distributors when there is a permanent reduction of its sales prices. In such cases, the Company is obligated to grant the distributor a credit for the difference between the changes in the aggregate price of any amounts that have been purchased but unsold by the distributor as of the effective date of such decrease. In addition, certain of the Company’s distributors stock phones and switches and purchase licenses only upon sale to a value added reseller or end customer. Revenue is deferred for distributors until the distributor sells the hardware and license to their customer which would constitute a complete configuration of our system. To the extent that the Company’s agreements contain acceptance terms, the Company recognizes revenue upon product acceptance, unless the acceptance provision is deemed to be perfunctory. Payment terms to customers generally range from net 30 to net 60 days. In the event payment terms are extended materially from the Company’s standard business practices, the fees are deemed to not be fixed or determinable and revenue is recognized when the payment becomes due. The Company assesses the ability to collect from its customers based on a number of factors, including credit worthiness and past transaction history of the customer. If the customer is not deemed credit worthy, the Company defers all revenue from the arrangement until payment is received and all other revenue recognition criteria have been met. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of product revenue. Provisions for return allowances are recorded at the time revenue is recognized based on the Company’s historical experience. The provision for return allowances is recorded as a reduction to revenues on the statement of operations and is included as a reduction to accounts receivable on the balance sheet. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from the Company’s transactions and are recognized as the revenue recognition criteria are met. Nearly all of the Company’s system sales include the purchase of post-contractual support contracts with terms of up to five years, and the renewal rates on these contracts have been high historically. The Company recognizes support revenue on a ratable basis over the term of the support contract. Since the Company receives payment for support in advance of recognizing the related revenue, the Company carries a deferred revenue balance on the consolidated balance sheet. Most of the products and services included in an onsite-based system qualify as separate units of accounting. Many of the Company’s products have both software and non-software components that function together to deliver the essential functionality of the integrated system product. The Company analyzes all of its software and non-software products and services and considers the features and functionalities of the individual elements and the stand alone sales of those individual components among other factors, to determine which elements are essential or non-essential to the overall functionality of the integrated system product. The Company recognizes revenue related to installation services and training upon delivery of the service. The Company’s core software, which we refer to as “essential software,” is integrated with hardware and is essential to the functionality of the integrated system product. The Company also sells additional software which provides increased features and functions, but is not essential to the overall functionality of the integrated system products, which we refer to as “non-essential software.” At the initial purchase, the customer generally bundles together the hardware, essential software, non-essential software, as needed, and up to five years of post-contractual support. Thereafter, if the enterprise customer increases its end users and system functionality, it may add more hardware, both essential and non-essential software components, and related post-contractual support by purchasing them separately. The revenue for these multiple element arrangements is allocated to the non-essential software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the accounting guidance. The non-essential software deliverables included in a multiple element arrangement are subject to the industry specific software revenue recognition guidance. As the Company has not been able to obtain VSOE for all of the non-essential software deliverables in the arrangement, revenue allocated to the delivered non-essential software elements is recognized using the residual method in accordance with industry specific software revenue recognition guidance. Under the residual method, the amount of revenue recognized for the delivered non-essential software elements equaled the total allocated consideration less the VSOE of any undelivered elements bundled with such non-essential software elements. The Company has been able to establish VSOE for its professional and post contractual support services mainly based on the volume and the pricing of the stand-alone sales for these services within a narrow range. The Company establishes its ESP for products by considering factors including, but not limited to, geographies, customer segments and pricing practices. The determination of ESP is made through consultation with and formal approval by the Company’s management. The Company regularly reviews VSOE, TPE and ESP and maintains internal controls over the establishment and updates of these estimates. |
Channel Partner Programs and Incentives | Channel Partner Programs and Incentives - |
Warranties | Warranties |
Research and Development Costs | Research and Development Costs |
Income and Telecom Taxes | Income and Telecom Taxes As a provider of communication services, the Company assesses whether to include the taxes and surcharges collected from customers and remitted to government authorities, including Universal Service Fund charges, sales, use, and various surcharges, in the Company’s revenues and expenses. This assessment includes whether the Company is the primary obligor or principal taxpayer for the taxes assessed in each jurisdiction where the Company does business. In jurisdictions where the Company determines that it is the principal taxpayer, the Company records the surcharges these within revenues and cost of hosted and related services in the Consolidated Statements of Operations as well as within accrued taxes and surcharges in the Consolidated Balance Sheets. In jurisdictions where the Company determines that it is merely a collection agent for the government authority, the Company does not include them in our revenues and cost of hosted and related services. |
Stock-Based Compensation | Stock-Based Compensation th The following table shows total stock-based compensation expense included in the accompanying Consolidated Statements of Operations for the years ended June 30, 2017, 2016 and 2015 (in thousands): Year Ended June 30, 2017 2016 2015 Cost of hosted and related services revenue $ 261 $ 1,272 $ 1,215 Cost of product revenue 53 64 74 Cost of support and services revenue 370 590 497 Research and development 2,256 1,854 1,928 Sales and marketing 2,909 2,569 2,391 General and administrative 3,940 2,522 2,308 Total stock-based compensation expense $ 9,789 $ 8,871 $ 8,413 |
Foreign Currency Translation | Foreign Currency Translation |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Updates Recently Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings, Recent Accounting Standards or Updates Not Yet Effective In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606) Topic 605, Revenue Recognition . The Company is in the process of evaluating the impact of its pending adoption of this guidance on its revenue transactions, including any impacts on associated processes, systems, and internal controls. The Company has started reviewing each of its revenue streams that may be impacted by the adoption of this guidance, including the determination whether the performance obligations will change as compared to current generally accepted accounting principles in the United States of America (“GAAP”), as well as determining the stand-alone selling price of each performance obligation. The Company is also assessing if sales commissions will need to be capitalized upon adoption of the new ASU and evaluating the proper period over which to amortize these capitalized costs. In addition, the Company is evaluating revenue recognition related to sales made to resellers and value-added distributors. The Company continues to evaluate the impact of this guidance on its consolidated financial statements and any preliminary assessments are subject to change. 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 ): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting |
THE COMPANY AND SIGNIFICANT A27
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Change in allowance for doubtful accounts | The change in allowance for doubtful accounts is summarized as follows (in thousands): June 30, 2017 2016 2015 Allowance for doubtful accounts - beginning $ 678 $ 631 $ 636 Current period provision 217 216 182 Provision related to the acquisition of a business — 79 — Write-offs charged to allowance, net of recoveries (395 ) (248 ) (187 ) Allowance for doubtful accounts - ending $ 500 $ 678 $ 631 |
Stock-based compensation expense | The following table shows total stock-based compensation expense included in the accompanying Consolidated Statements of Operations for the years ended June 30, 2017, 2016 and 2015 (in thousands): Year Ended June 30, 2017 2016 2015 Cost of hosted and related services revenue $ 261 $ 1,272 $ 1,215 Cost of product revenue 53 64 74 Cost of support and services revenue 370 590 497 Research and development 2,256 1,854 1,928 Sales and marketing 2,909 2,569 2,391 General and administrative 3,940 2,522 2,308 Total stock-based compensation expense $ 9,789 $ 8,871 $ 8,413 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
M5 Networks Australia Pty Ltd [Member] | |
Business Acquisition [Line Items] | |
Summary of 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 [Member] | |
Business Acquisition [Line Items] | |
Summary of 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 COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
BALANCE SHEET COMPONENTS [Abstract] | |
Balance sheet components | Balance sheet components consisted of the following: As of June 30, 2017 2016 (Amounts in thousands) Inventories: Raw materials $ 52 $ 57 Distributor inventory 2,192 1,677 Finished goods 9,380 10,754 Total inventories $ 11,624 $ 12,488 Property and equipment: Computer equipment and tooling $ 35,872 $ 33,739 Customer premise equipment 23,522 17,194 Software 7,932 7,328 Furniture and fixtures 3,676 3,880 Leasehold improvements & others 9,643 8,836 Total property and equipment 80,645 70,977 Less accumulated depreciation and amortization (61,579 ) (49,426 ) Property and equipment – net $ 19,066 $ 21,551 Deferred revenue: Product $ 7,076 $ 5,433 Support and services 61,485 59,465 Hosted and related services 14,208 12,807 Total deferred revenue $ 82,769 $ 77,705 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
SHORT-TERM INVESTMENTS [Abstract] | |
Summary of short-term investments | The following is a summary of the Company’s short-term investments (in thousands): June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds and commercial paper $ 23,213 $ — $ (27 ) $ 23,186 U.S. Government agency securities 25,524 — (45 ) 25,479 Total short-term investments $ 48,737 $ — $ (72 ) $ 48,665 June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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 |
Short term investments by contractual maturity | The following table summarizes the maturities of the Company’s short-term investments by contractual maturity (in thousands): June 30, 2017 Amortized Cost Fair Value Less than 1 year $ 43,058 $ 42,993 Due in 1 to 3 years 5,679 5,672 $ 48,737 $ 48,665 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 $ 46,397 $ 46,433 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Schedule of goodwill | The following table summarizes the changes in the carrying value of goodwill (in thousands): Total As of June 30, 2015 $ 122,750 Addition 6,699 As of June 30, 2016 $ 129,449 As of June 30, 2017 $ 129,449 |
Summary of intangible assets | The following is a summary of the Company’s intangible assets (in thousands): June 30, 2017 June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 5,296 $ (4,140 ) $ 1,156 $ 4,446 $ (3,919 ) $ 527 Technology 31,434 (27,243 ) 4,191 31,434 (23,523 ) 7,911 Customer relationships 24,700 (18,093 ) 6,607 24,700 (14,513 ) 10,187 Other 178 (45 ) 133 178 (15 ) 163 Intangible assets $ 61,608 $ (49,521 ) $ 12,087 $ 60,758 $ (41,970 ) $ 18,788 |
Estimated future amortization expenses for intangible assets | The estimated future amortization expenses for intangible assets, excluding intangible assets in process and other, for the next five years and thereafter are as follows (in thousands): Years Ending June 30, 2018 $ 5,683 2019 4,180 2020 1,437 2021 647 2022 140 Thereafter — Total $ 12,087 |
FAIR VALUE DISCLOSURE (Tables)
FAIR VALUE DISCLOSURE (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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): June 30, 2017 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 1,485 $ 1,485 $ — $ — Short-term investments: Corporate notes and commercial paper 23,186 — 23,186 — U.S. Government agency securities 25,479 — 25,479 — Total assets measured and recorded at fair value $ 50,150 $ 1,485 $ 48,665 $ — The above table excludes $65.7 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 $ — |
NET LOSS PER COMMON SHARE (Tabl
NET LOSS PER COMMON SHARE (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
NET LOSS PER COMMON SHARE [Abstract] | |
Reconciliation of net loss per common share | The following table is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per common share (in thousands other than per share amounts): Year Ended June 30, 2017 2016 2015 Numerator: Net loss $ (12,443 ) $ (4,792 ) $ (4,404 ) Denominator: Weighted average common shares outstanding (basic and diluted) 68,100 66,405 63,953 Net loss per share Basic and diluted $ (0.18 ) $ (0.07 ) $ (0.07 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
INCOME TAXES [Abstract] | |
Components of loss before income taxes | The components of loss before income taxes consist of the following (in thousands): Year Ended June 30, 2017 2016 2015 Domestic $ (12,842 ) $ (5,375 ) $ (4,416 ) Foreign 1,337 1,143 973 Total $ (11,505 ) $ (4,232 ) $ (3,443 ) |
Provision for income taxes | The provision for income taxes consists of the following (in thousands): Year Ended June 30, 2017 2016 2015 Current: Federal $ 1 $ (129 ) $ 159 State 272 100 528 Foreign 757 685 299 Total current income tax 1,030 656 986 Deferred: Federal 34 17 — State 5 2 — Foreign (131 ) (115 ) (25 ) Total deferred income tax (92 ) (96 ) (25 ) Provision for income taxes $ 938 $ 560 $ 961 |
Reconciliation of income tax provision to federal statutory income tax rate | The difference between the provision for income taxes and the amount computed by applying the federal statutory income tax rate to loss before benefit from income tax is as follows (in thousands): Year Ended June 30, 2017 2016 2015 Benefit from income tax at federal statutory rate $ (3,913 ) $ (1,439 ) $ (1,140 ) Non deductible expenses 302 385 442 Federal Alternative Minimum Tax 1 (129 ) 159 Stock-based compensation 306 273 314 Fair value of escrow settlement modification — — 225 Credits (976 ) (1,775 ) (574 ) State taxes 272 100 528 Other 211 201 (56 ) Increase in valuation allowance 4,735 2,944 1,063 Total $ 938 $ 560 $ 961 |
Components of deferred tax assets | Significant components of deferred tax assets consist of the following (in thousands): June 30, 2017 2016 Deferred Tax Assets Net operating loss carryforwards $ 32,598 $ 29,015 Tax credit carryforwards 24,116 20,659 Stock compensation 5,782 11,295 Deferred revenue 3,337 3,330 Other 6,866 6,955 Gross deferred tax assets 72,699 71,254 Valuation allowance (72,158 ) (69,413 ) Total deferred tax assets 541 1,841 Deferred Tax Liabilities Acquistion intangibles (312 ) (1,927 ) Total deferred tax liabilities (312 ) (1,927 ) Total net deferred tax assets (liabilities) $ 229 $ (86 ) |
Reconciliation of unrecognized tax benefits | The aggregate annual changes in the balance of gross unrecognized tax benefits are as follows (in thousands): Year Ended June 30, 2017 2016 2015 Beginning balance $ 6,274 $ 5,065 $ 4,165 Decrease in tax positions for prior years (1,210 ) (24 ) — Increase in tax positions for prior years 142 — — Increase in tax positions for current year 841 1,233 900 Ending balance $ 6,047 $ 6,274 $ 5,065 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Common Stock [Abstract] | |
Reserved shares of common stock for issuance | At June 30, 2017, the Company had reserved shares of common stock for issuance as follows (in thousands): Reserved under stock option plans 4,041 Reserved under employee stock purchase plan 3,189 Total 7,230 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Schedule of stock options activity | The following table summarizes the Company’s stock option activities for the fiscal year ended June 30, 2017 (in thousands, except per share amounts): 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 1,503 7.91 Options exercised (488 ) 4.95 Options cancelled/forfeited (741 ) 7.86 Balance at June 30, 2017 6,542 $ 6.61 6.54 $ 2,480 Vested and expected to vest at June 30, 2017 5,747 $ 6.47 6.25 $ 2,479 Options exercisable at June 30, 2017 4,043 $ 6.03 5.33 $ 2,434 |
Outstanding and exercisable options | The following table summarizes information about outstanding and exercisable options at June 30, 2017 (in thousands, except years and exercise prices): Options Outstanding Options Exercisable Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $3.50 - 4.25 322 5.10 $ 4.03 322 $ 4.03 $4.31 710 5.73 4.31 691 4.31 $4.35 - 5.15 812 4.24 4.79 795 4.79 $5.25 - 6.61 1,011 5.68 6.28 743 6.35 $6.64 - 7.23 664 7.10 6.87 366 6.81 $7.25 - 7.41 724 8.10 7.36 322 7.36 $7.42 - 8.02 1,063 7.53 7.77 403 7.70 $8.03 33 9.20 8.03 — — $8.04 760 9.13 8.04 — — $8.12 - 13.73 443 4.69 9.04 401 9.03 Total 6,542 6.54 $ 6.61 4,043 $ 6.03 |
Assumptions for estimating fair value of stock options | The fair value of each option is estimated on the date of grant using the Black-Scholes option valuation method, with the following assumptions: Year Ended June 30, 2017 2016 2015 Expected life from grant date of option 5.15-5.17 years 5.09-5.13 years 5.04-5.09 years Risk-free interest rate 1.13-1.94% 1.24-1.59% 1.45-1.70% Expected volatility 39-45% 46-48% 49-50% Expected dividend yield 0% 0% 0% |
Fair value of stock purchase rights granted under the ESPP estimated using the Black-Scholes option pricing model | The fair value of stock purchase rights granted under the ESPP is estimated using the Black-Scholes option pricing model, based on the following assumptions: Year Ended June 30, 2017 2016 2015 Expected life from grant date of ESPP 0.33-0.50 years 0.50 years 0.50 years Risk-free interest rate 0.40-1.08% 0.14-0.41% 0.06-0.09% Expected volatility 32-37% 29-37% 35-43% Expected dividend yield 0% 0% 0% |
RSA and RSU activity | Restricted stock award and restricted stock unit activity for the year ended June 30, 2017 is as follows (in thousands): Shares Weighted- Average Grant Date Fair Value Outstanding - July 1, 2016 1,927 $ 6.99 Awarded 1,302 7.73 Released (629 ) 6.83 Forfeited (398 ) 7.40 Outstanding - June 30, 2017 2,202 $ 7.39 |
TREASURY STOCK (Tables)
TREASURY STOCK (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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: 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 $ — Authorization of repurchase shares in May 2016 20,000 Repurchase of common stock (126 ) $ 6.49 $ 819 (819 ) Balance as of June 30, 2016 19,181 Repurchase of common stock (339 ) $ 6.77 $ 2,298 (2,298 ) Balance as of June 30, 2017 $ 16,883 |
LITIGATION, COMMITMENTS AND C38
LITIGATION, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
LITIGATION, COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of future minimum payments under noncancelable capital and operating leases | Future minimum lease payments under the noncancelable operating leases as of June 30, 2017, are as follows (in thousands): Years Ending June 30, Operating Leases 2018 $ 7,095 2019 5,688 2020 4,287 2021 2,499 2022 1,610 Therafter 940 Total minimum lease payments $ 22,119 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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): Year Ended June 30, 2017 2016 2015 United States of America $ 328,490 $ 330,841 $ 330,318 International 29,269 29,443 29,352 Total $ 357,759 $ 360,284 $ 359,670 The following presents a summary by geographic region of long-lived assets, excluding deferred tax assets, other assets, and intangible assets (in thousands): As at June 30, 2017 2016 United States of America $ 17,764 $ 20,323 International 1,302 1,228 Total $ 19,066 $ 21,551 |
DERIVATIVE INSTRUMENTS AND HE40
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |
Notional amounts of outstanding derivative positions | The following table presents the gross notional value of all our foreign exchange forward contracts outstanding as of June 30, 2017 and 2016 (in thousands). June 30, 2017 Local Currency Amount Notional Contract Amount (USD) Australian dollar $ 2,870 $ 2,177 British pound £ 2,250 2,904 Canadian dollar $ 860 657 Euro € 1,010 1,143 Total $ 6,881 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 |
QUARTERLY FINANCIAL DATA (Una41
QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract] | |
Quarterly financial information | The following table summarizes the Company’s information on total revenue, gross profit, net income (loss) and earnings per share by quarter for the fiscal years ended June 30, 2017 and 2016. This data was derived from the Company’s unaudited consolidated financial statements. Three Months Ended Jun. 30, 2017 Mar. 31, 2017 Dec. 31, 2016 Sept. 30, 2016 Jun. 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015 (In thousands, except per share amounts) Total revenue $ 95,721 $ 87,730 $ 88,034 $ 86,274 $ 94,592 $ 85,236 $ 90,431 $ 90,025 Gross profit 60,567 56,222 55,504 54,323 59,487 52,436 57,885 58,012 Net income (loss) (956 ) (2,940 ) (2,916 ) (5,631 ) (744 ) (8,707 ) 2,545 2,114 Basic net income (loss) per common share $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.01 ) $ (0.13 ) $ 0.04 $ 0.03 Diluted net income (loss) per common share $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.01 ) $ (0.13 ) $ 0.04 $ 0.03 |
THE COMPANY AND SIGNIFICANT A42
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Part 1) (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017USD ($)DistributorInstitution | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Concentration Risk [Line Items] | |||
Number of distributors accounting for more than 10% of accounts receivable | Distributor | 1 | ||
Investments [Abstract] | |||
Number of financial institutions for short-term investments custody | Institution | 2 | ||
Allowance for doubtful accounts [Roll Forward] | |||
Allowance for doubtful accounts - beginning | $ 678 | $ 631 | $ 636 |
Current period provision | 217 | 216 | 182 |
Provision related to the acquisition of a business | 0 | 79 | 0 |
Write-offs charged to allowance, net of recoveries | (395) | (248) | (187) |
Allowance for doubtful accounts - ending | $ 500 | $ 678 | $ 631 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 2 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life of property and equipment | 5 years | ||
Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 50.00% | 42.00% |
THE COMPANY AND SIGNIFICANT A43
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Part 2) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill and Purchased-Intangible Assets [Abstract] | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Impairment of purchased intangible assets | 0 | 0 | 0 |
Impairment of identified long-lived assets | $ 0 | 0 | 0 |
Revenue Recognition [Abstract] | |||
Number of days to return purchased products | 90 days | ||
Warranties [Abstract] | |||
Limited manufacturer's warranty description | The majority of the Company's products are covered by a one-year limited manufacturer's warranty. | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 9,789,000 | 8,871,000 | 8,413,000 |
Minimum [Member] | |||
Goodwill and Purchased-Intangible Assets [Abstract] | |||
Useful lives of intangible assets | 2 years | ||
Revenue Recognition [Abstract] | |||
Period of service agreements entered by customers | 1 year | ||
Payment terms to customers | 30 days | ||
Maximum [Member] | |||
Goodwill and Purchased-Intangible Assets [Abstract] | |||
Useful lives of intangible assets | 8 years | ||
Revenue Recognition [Abstract] | |||
Period of service agreements entered by customers | 3 years | ||
Payment terms to customers | 60 days | ||
Term of post-contractual support | 5 years | ||
Cost of Hosted and Related Services Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 261,000 | 1,272,000 | 1,215,000 |
Cost of Product Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 53,000 | 64,000 | 74,000 |
Cost of Support and Services Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 370,000 | 590,000 | 497,000 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 2,256,000 | 1,854,000 | 1,928,000 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 2,909,000 | 2,569,000 | 2,391,000 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 3,940,000 | $ 2,522,000 | $ 2,308,000 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option and restricted stock unit awards | The Company has a stock-based employee compensation plan. Generally, stock options granted to employees vest 25% at one year and then 1/36th monthly thereafter, and restricted stock units issued generally vest 25% at one, two, three and four years, and have a term of ten years. | ||
Term period of stock awards granted to employees | 10 years | ||
Stock Options [Member] | Vesting Period at One Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% | ||
Stock Options [Member] | Vesting Period after One Year till Forty Eight Months [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 75.00% | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option and restricted stock unit awards | The Company has a stock-based employee compensation plan. Generally, stock options granted to employees vest 25% at one year and then 1/36th monthly thereafter, and restricted stock units issued generally vest 25% at one, two, three and four years, and have a term of ten years. | ||
Term period of stock awards granted to employees | 10 years | ||
Restricted Stock Units [Member] | Vesting Period at One Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% | ||
Restricted Stock Units [Member] | Vesting Period at Two Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% | ||
Restricted Stock Units [Member] | Vesting Period at Three Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% | ||
Restricted Stock Units [Member] | Vesting Period at Four Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) AUD in Thousands, $ in Thousands | Jan. 06, 2016USD ($) | Nov. 16, 2015USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Nov. 16, 2015AUD |
Purchase Price Allocation [Abstract] | ||||||
Goodwill | $ 129,449 | $ 129,449 | $ 122,750 | |||
Acquisition-related costs | $ 0 | 1,489 | $ 0 | |||
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 | ||||
Acquisition-related costs | 300 | |||||
Corvisa LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition agreement date | Jan. 6, 2016 | |||||
Business acquisition, market participant rate assumption | 35.00% | |||||
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 | |||||
Acquisition-related costs | $ 1,200 | |||||
Existing Technology [Member] | Corvisa LLC [Member] | ||||||
Purchase Price Allocation [Abstract] | ||||||
Intangible assets | $ 3,400 | |||||
Estimated useful lives of intangible assets | 5 years | |||||
Customer Relationships [Member] | M5 Networks Australia Pty Ltd [Member] | ||||||
Purchase Price Allocation [Abstract] | ||||||
Intangible assets | $ 1,300 | |||||
Estimated useful lives of intangible assets | 5 years | |||||
Customer Relationships [Member] | Corvisa LLC [Member] | ||||||
Purchase Price Allocation [Abstract] | ||||||
Intangible assets | $ 100 | |||||
Estimated useful lives of intangible assets | 3 years | |||||
Favorable Leases [Member] | Corvisa LLC [Member] | ||||||
Purchase Price Allocation [Abstract] | ||||||
Intangible assets | $ 178 | |||||
Estimated useful lives of intangible assets | 6 years |
BALANCE SHEET COMPONENTS (Detai
BALANCE SHEET COMPONENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Inventories [Abstract] | |||
Raw materials | $ 52 | $ 57 | |
Distributor inventory | 2,192 | 1,677 | |
Finished goods | 9,380 | 10,754 | |
Total inventories | 11,624 | 12,488 | |
Property and equipment [Abstract] | |||
Total property and equipment | 80,645 | 70,977 | |
Less accumulated depreciation and amortization | (61,579) | (49,426) | |
Property and equipment - net | 19,066 | 21,551 | |
Depreciation expense | 12,900 | 11,900 | $ 10,600 |
Deferred revenue [Abstract] | |||
Total deferred revenue | 82,769 | 77,705 | |
Computer Equipment and Tooling [Member] | |||
Property and equipment [Abstract] | |||
Total property and equipment | 35,872 | 33,739 | |
Customer Premise Equipment [Member] | |||
Property and equipment [Abstract] | |||
Total property and equipment | 23,522 | 17,194 | |
Software [Member] | |||
Property and equipment [Abstract] | |||
Total property and equipment | 7,932 | 7,328 | |
Furniture and Fixtures [Member] | |||
Property and equipment [Abstract] | |||
Total property and equipment | 3,676 | 3,880 | |
Leaseholds Improvements & Others [Member] | |||
Property and equipment [Abstract] | |||
Total property and equipment | 9,643 | 8,836 | |
Product [Member] | |||
Deferred revenue [Abstract] | |||
Total deferred revenue | 7,076 | 5,433 | |
Support and Services [Member] | |||
Deferred revenue [Abstract] | |||
Total deferred revenue | 61,485 | 59,465 | |
Hosted and Related Services [Member] | |||
Deferred revenue [Abstract] | |||
Total deferred revenue | $ 14,208 | $ 12,807 |
SHORT-TERM INVESTMENTS, Summary
SHORT-TERM INVESTMENTS, Summary of Short-Term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Summary of short-term investments [Abstract] | ||
Amortized cost | $ 48,737 | $ 46,397 |
Gross unrealized gains | 0 | 41 |
Gross unrealized losses | (72) | (5) |
Fair value | 48,665 | 46,433 |
Corporate Bonds and Commercial Paper [Member] | ||
Summary of short-term investments [Abstract] | ||
Amortized cost | 23,213 | 26,359 |
Gross unrealized gains | 0 | 9 |
Gross unrealized losses | (27) | (5) |
Fair value | 23,186 | 26,363 |
U.S. Government Agency Securities [Member] | ||
Summary of short-term investments [Abstract] | ||
Amortized cost | 25,524 | 20,038 |
Gross unrealized gains | 0 | 32 |
Gross unrealized losses | (45) | 0 |
Fair value | $ 25,479 | $ 20,070 |
SHORT-TERM INVESTMENTS, Short T
SHORT-TERM INVESTMENTS, Short Term Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Amortized Cost [Abstract] | ||
Less than 1 year | $ 43,058 | $ 28,107 |
Due in 1 to 3 years | 5,679 | 18,290 |
Amortized cost | 48,737 | 46,397 |
Fair Value [Abstract] | ||
Less than 1 year | 42,993 | 28,114 |
Due in 1 to 3 years | 5,672 | 18,319 |
Fair value | $ 48,665 | $ 46,433 |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, Goodwill (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 122,750 |
Goodwill, addition | 6,699 |
Goodwill, ending balance | $ 129,449 |
GOODWILL AND INTANGIBLE ASSET49
GOODWILL AND INTANGIBLE ASSETS, Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Intangible Assets [Abstract] | |||
Gross Carrying Amount | $ 61,608 | $ 60,758 | |
Accumulated Amortization | (49,521) | (41,970) | |
Net Carrying Amount | 12,087 | 18,788 | |
Amortization of intangible assets | $ 7,600 | 8,400 | $ 8,100 |
Minimum [Member] | |||
Intangible Assets [Abstract] | |||
Useful lives of intangible assets | 2 years | ||
Maximum [Member] | |||
Intangible Assets [Abstract] | |||
Useful lives of intangible assets | 8 years | ||
Patents [Member] | |||
Intangible Assets [Abstract] | |||
Gross Carrying Amount | $ 5,296 | 4,446 | |
Accumulated Amortization | (4,140) | (3,919) | |
Net Carrying Amount | 1,156 | 527 | |
Technology [Member] | |||
Intangible Assets [Abstract] | |||
Gross Carrying Amount | 31,434 | 31,434 | |
Accumulated Amortization | (27,243) | (23,523) | |
Net Carrying Amount | 4,191 | 7,911 | |
Customer Relationships [Member] | |||
Intangible Assets [Abstract] | |||
Gross Carrying Amount | 24,700 | 24,700 | |
Accumulated Amortization | (18,093) | (14,513) | |
Net Carrying Amount | 6,607 | 10,187 | |
Other [Member] | |||
Intangible Assets [Abstract] | |||
Gross Carrying Amount | 178 | 178 | |
Accumulated Amortization | (45) | (15) | |
Net Carrying Amount | $ 133 | $ 163 |
GOODWILL AND INTANGIBLE ASSET50
GOODWILL AND INTANGIBLE ASSETS, Estimated Future Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Estimated future amortization expenses for intangible assets [Abstract] | ||
2,018 | $ 5,683 | |
2,019 | 4,180 | |
2,020 | 1,437 | |
2,021 | 647 | |
2,022 | 140 | |
Thereafter | 0 | |
Net Carrying Amount | $ 12,087 | $ 18,788 |
FAIR VALUE DISCLOSURE (Details)
FAIR VALUE DISCLOSURE (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Assets [Abstract] | ||
Short-term investments | $ 48,665 | $ 46,433 |
Total assets measured and recorded at fair value | 50,150 | 49,966 |
Cash balances on deposit at banks | 65,700 | 58,200 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Total assets measured and recorded at fair value | 1,485 | 3,533 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Total assets measured and recorded at fair value | 48,665 | 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 | 1,485 | 3,533 |
Money Market Funds [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 1,485 | 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 Notes and Commercial Paper [Member] | ||
Assets [Abstract] | ||
Short-term investments | 23,186 | 26,363 |
Corporate Notes and Commercial Paper [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | 0 |
Corporate Notes and Commercial Paper [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Short-term investments | 23,186 | 26,363 |
Corporate Notes and Commercial Paper [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | 0 |
U.S. Government Agency Securities [Member] | ||
Assets [Abstract] | ||
Short-term investments | 25,479 | 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 | 25,479 | 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 | 12 Months Ended |
Jun. 30, 2017USD ($) | |
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 | $ 51.7 |
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 Bank 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 Bank 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% |
NET LOSS PER COMMON SHARE (Deta
NET LOSS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator [Abstract] | |||||||||||
Net loss | $ (956) | $ (2,940) | $ (2,916) | $ (5,631) | $ (744) | $ (8,707) | $ 2,545 | $ 2,114 | $ (12,443) | $ (4,792) | $ (4,404) |
Denominator [Abstract] | |||||||||||
Weighted average common shares outstanding (basic and diluted) (in shares) | 68,100 | 66,405 | 63,953 | ||||||||
Net loss per share - Basic and diluted (in dollars per share) | $ (0.18) | $ (0.07) | $ (0.07) | ||||||||
Antidilutive weighted shares excluded from calculation of diluted shares (in shares) | 5,000 | 4,900 | 3,800 |
INCOME TAXES, Components of Los
INCOME TAXES, Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Components of loss before income taxes [Abstract] | |||
Domestic | $ (12,842) | $ (5,375) | $ (4,416) |
Foreign | 1,337 | 1,143 | 973 |
Loss before provision for income taxes | $ (11,505) | $ (4,232) | $ (3,443) |
INCOME TAXES, Provision for Inc
INCOME TAXES, Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Current [Abstract] | |||
Federal | $ 1 | $ (129) | $ 159 |
State | 272 | 100 | 528 |
Foreign | 757 | 685 | 299 |
Total current income tax | 1,030 | 656 | 986 |
Deferred [Abstract] | |||
Federal | 34 | 17 | 0 |
State | 5 | 2 | 0 |
Foreign | (131) | (115) | (25) |
Total deferred income tax | (92) | (96) | (25) |
Total | $ 938 | $ 560 | $ 961 |
INCOME TAXES, Reconciliation of
INCOME TAXES, Reconciliation of Income Tax Provision to the Federal Statutory Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of income tax provision to the federal statutory income tax rate [Abstract] | |||
Benefit from income tax at federal statutory rate | $ (3,913) | $ (1,439) | $ (1,140) |
Non deductible expenses | 302 | 385 | 442 |
Federal Alternative Minimum Tax | 1 | (129) | 159 |
Stock-based compensation | 306 | 273 | 314 |
Fair value of escrow settlement modification | 0 | 0 | 225 |
Credits | (976) | (1,775) | (574) |
State taxes | 272 | 100 | 528 |
Other | 211 | 201 | (56) |
Increase in valuation allowance | 4,735 | 2,944 | 1,063 |
Total | $ 938 | $ 560 | $ 961 |
INCOME TAXES, Components of Def
INCOME TAXES, Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Deferred Tax Assets [Abstract] | ||
Net operating loss carryforwards | $ 32,598 | $ 29,015 |
Tax credit carryforwards | 24,116 | 20,659 |
Stock compensation | 5,782 | 11,295 |
Deferred revenue | 3,337 | 3,330 |
Other | 6,866 | 6,955 |
Gross deferred tax assets | 72,699 | 71,254 |
Valuation allowance | (72,158) | (69,413) |
Total deferred tax assets | 541 | 1,841 |
Deferred Tax Liabilities [Abstract] | ||
Acquisition intangibles | (312) | (1,927) |
Total deferred tax liabilities | (312) | (1,927) |
Total net deferred tax assets | 229 | |
Total net deferred tax liabilities | $ (86) | |
Decrease in deferred tax assets | 1,300 | |
Decrease in deferred tax liabilities | 1,600 | |
Deferred tax assets, excess stock option deductions, pretax | 13,100 | |
Deferred tax assets, excess stock option deductions | 4,400 | |
Federal [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 17,500 | |
Expiration of tax credit carryforward | Between 2023 and 2037 | |
California [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 17,500 | |
Expiration of tax credit carryforward | indefinitely | |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 107,100 | |
Net operating loss carryforwards expiration dates | Between 2023 and 2037 | |
California [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 19,900 | |
Net operating loss carryforwards expiration dates | Between 2018 and 2037 | |
Other States [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 9,800 | |
Net operating loss carryforwards expiration dates | Between 2018 and 2037 |
INCOME TAXES, Reconciliation 58
INCOME TAXES, Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of the beginning and ending balances of unrecognized tax benefits [Rollforward] | |||
Beginning balance | $ 6,274 | $ 5,065 | $ 4,165 |
Decrease in tax positions for prior years | (1,210) | (24) | 0 |
Increase in tax positions for prior years | 142 | 0 | 0 |
Increase in tax positions for current year | 841 | 1,233 | 900 |
Ending balance | 6,047 | $ 6,274 | $ 5,065 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 400 | ||
Expected change in unrecognized tax benefits in next fiscal year | $ 0 | ||
Minimum [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years | 2,001 | ||
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax years | 2,015 |
COMMON STOCK (Details)
COMMON STOCK (Details) shares in Thousands | Jun. 30, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance (in shares) | 7,230 |
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) | 4,041 |
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) | 3,189 |
EMPLOYEE BENEFIT PLANS, Equity
EMPLOYEE BENEFIT PLANS, Equity Stock Incentive Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted expiration period | 10 years | ||
Weighted average grant date fair value of options granted (in dollars per share) | $ 3.21 | $ 3.22 | $ 3.02 |
Intrinsic value for options exercised | $ 1,000 | $ 4,900 | $ 3,200 |
Stock option activity [Roll Forward] | |||
Balance (in shares) | 6,268 | ||
Options granted (in shares) | 1,503 | ||
Options exercised (in shares) | (488) | ||
Options cancelled/forfeited (in shares) | (741) | ||
Balance (in shares) | 6,542 | 6,268 | |
Vested and expected to vest (in shares) | 5,747 | ||
Options exercisable (in shares) | 4,043 | ||
Weighted-Average Exercise Price [Roll Forward] | |||
Balance (in dollars per share) | $ 6.31 | ||
Options granted (in dollars per share) | 7.91 | ||
Options exercised (in dollars per share) | 4.95 | ||
Options cancelled/forfeited (in dollars per share) | 7.86 | ||
Balance (in dollars per share) | 6.61 | $ 6.31 | |
Vested and expected to vest (in dollars per share) | 6.47 | ||
Options exercisable (in dollars per share) | $ 6.03 | ||
Weighted Average Remaining Contractual Term [Abstract] | |||
Balance | 6 years 6 months 14 days | ||
Vested and expected to vest | 6 years 3 months | ||
Options exercisable | 5 years 3 months 29 days | ||
Aggregate Intrinsic Value [Abstract] | |||
Balance | $ 2,480 | ||
Vested and expected to vest | 2,479 | ||
Options exercisable | $ 2,434 | ||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Options outstanding (in shares) | 6,542 | ||
Weighted average remaining contractual life | 6 years 6 months 14 days | ||
Weighted average exercise price (in dollars per share) | $ 6.61 | ||
Options exercisable (in shares) | 4,043 | ||
Weighted average exercise price (in dollars per share) | $ 6.03 | ||
Stock Options [Member] | Vesting Period at One Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% | ||
Stock Options [Member] | Vesting Period after One Year till Forty Eight Months [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 75.00% | ||
Stock Options [Member] | Range $ 3.50 - 4.25 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, lower range limit (in dollars per share) | $ 3.50 | ||
Range of exercise prices, upper range limit (in dollars per share) | $ 4.25 | ||
Options outstanding (in shares) | 322 | ||
Weighted average remaining contractual life | 5 years 1 month 6 days | ||
Weighted average exercise price (in dollars per share) | $ 4.03 | ||
Options exercisable (in shares) | 322 | ||
Weighted average exercise price (in dollars per share) | $ 4.03 | ||
Stock Options [Member] | Range $4.31 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, upper range limit (in dollars per share) | $ 4.31 | ||
Options outstanding (in shares) | 710 | ||
Weighted average remaining contractual life | 5 years 8 months 23 days | ||
Weighted average exercise price (in dollars per share) | $ 4.31 | ||
Options exercisable (in shares) | 691 | ||
Weighted average exercise price (in dollars per share) | $ 4.31 | ||
Stock Options [Member] | Range $4.35 - 5.15 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, lower range limit (in dollars per share) | 4.35 | ||
Range of exercise prices, upper range limit (in dollars per share) | $ 5.15 | ||
Options outstanding (in shares) | 812 | ||
Weighted average remaining contractual life | 4 years 2 months 26 days | ||
Weighted average exercise price (in dollars per share) | $ 4.79 | ||
Options exercisable (in shares) | 795 | ||
Weighted average exercise price (in dollars per share) | $ 4.79 | ||
Stock Options [Member] | Range $5.25 - 6.61 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, lower range limit (in dollars per share) | 5.25 | ||
Range of exercise prices, upper range limit (in dollars per share) | $ 6.61 | ||
Options outstanding (in shares) | 1,011 | ||
Weighted average remaining contractual life | 5 years 8 months 5 days | ||
Weighted average exercise price (in dollars per share) | $ 6.28 | ||
Options exercisable (in shares) | 743 | ||
Weighted average exercise price (in dollars per share) | $ 6.35 | ||
Stock Options [Member] | Range $6.64 - 7.23 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, lower range limit (in dollars per share) | 6.64 | ||
Range of exercise prices, upper range limit (in dollars per share) | $ 7.23 | ||
Options outstanding (in shares) | 664 | ||
Weighted average remaining contractual life | 7 years 1 month 6 days | ||
Weighted average exercise price (in dollars per share) | $ 6.87 | ||
Options exercisable (in shares) | 366 | ||
Weighted average exercise price (in dollars per share) | $ 6.81 | ||
Stock Options [Member] | Range $7.25 - 7.41 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, lower range limit (in dollars per share) | 7.25 | ||
Range of exercise prices, upper range limit (in dollars per share) | $ 7.41 | ||
Options outstanding (in shares) | 724 | ||
Weighted average remaining contractual life | 8 years 1 month 6 days | ||
Weighted average exercise price (in dollars per share) | $ 7.36 | ||
Options exercisable (in shares) | 322 | ||
Weighted average exercise price (in dollars per share) | $ 7.36 | ||
Stock Options [Member] | Range $7.42 - 8.02 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, lower range limit (in dollars per share) | 7.42 | ||
Range of exercise prices, upper range limit (in dollars per share) | $ 8.02 | ||
Options outstanding (in shares) | 1,063 | ||
Weighted average remaining contractual life | 7 years 6 months 11 days | ||
Weighted average exercise price (in dollars per share) | $ 7.77 | ||
Options exercisable (in shares) | 403 | ||
Weighted average exercise price (in dollars per share) | $ 7.70 | ||
Stock Options [Member] | Range $8.03 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, upper range limit (in dollars per share) | $ 8.03 | ||
Options outstanding (in shares) | 33 | ||
Weighted average remaining contractual life | 9 years 2 months 12 days | ||
Weighted average exercise price (in dollars per share) | $ 8.03 | ||
Options exercisable (in shares) | 0 | ||
Weighted average exercise price (in dollars per share) | $ 0 | ||
Stock Options [Member] | Range $8.04 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, upper range limit (in dollars per share) | $ 8.04 | ||
Options outstanding (in shares) | 760 | ||
Weighted average remaining contractual life | 9 years 1 month 17 days | ||
Weighted average exercise price (in dollars per share) | $ 8.04 | ||
Options exercisable (in shares) | 0 | ||
Weighted average exercise price (in dollars per share) | $ 0 | ||
Stock Options [Member] | Range $8.12 - 13.73 [Member] | |||
Outstanding and exercisable options, by exercise price range [Line Items] | |||
Range of exercise prices, lower range limit (in dollars per share) | 8.12 | ||
Range of exercise prices, upper range limit (in dollars per share) | $ 13.73 | ||
Options outstanding (in shares) | 443 | ||
Weighted average remaining contractual life | 4 years 8 months 8 days | ||
Weighted average exercise price (in dollars per share) | $ 9.04 | ||
Options exercisable (in shares) | 401 | ||
Weighted average exercise price (in dollars per share) | $ 9.03 | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted expiration period | 10 years | ||
Restricted Stock Units [Member] | Vesting Period at One Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% | ||
Restricted Stock Units [Member] | Vesting Period at Two Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% | ||
Restricted Stock Units [Member] | Vesting Period at Three Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% | ||
Restricted Stock Units [Member] | Vesting Period at Four Years [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage of stock awards granted to employees | 25.00% | ||
Incentive Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option exercise price percentage | 100.00% | ||
Incentive Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted expiration period | 10 years | ||
Nonqualified Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option exercise price percentage | 85.00% | ||
Nonqualified Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted expiration period | 10 years |
EMPLOYEE BENEFIT PLANS, Stock-b
EMPLOYEE BENEFIT PLANS, Stock-based Compensation (Details) - Stock Options [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair value assumptions - stock options [Abstract] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Unrecognized compensation cost related to stock options granted to employees and non-employee directors | $ 3.2 | ||
Period to recognize unrecognized compensation cost | 2 years 7 months 6 days | ||
Minimum [Member] | |||
Fair value assumptions - stock options [Abstract] | |||
Expected life from grant date of option | 5 years 1 month 24 days | 5 years 1 month 2 days | 5 years 14 days |
Risk-free interest rate | 1.13% | 1.24% | 1.45% |
Expected volatility | 39.00% | 46.00% | 49.00% |
Maximum [Member] | |||
Fair value assumptions - stock options [Abstract] | |||
Expected life from grant date of option | 5 years 2 months 1 day | 5 years 1 month 17 days | 5 years 1 month 2 days |
Risk-free interest rate | 1.94% | 1.59% | 1.70% |
Expected volatility | 45.00% | 48.00% | 50.00% |
EMPLOYEE BENEFIT PLANS, Employe
EMPLOYEE BENEFIT PLANS, Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares reserved for issuance (in shares) | 7,230,000 | ||
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) | 3,500,000 | ||
Offering period for ESPP | 6 months | ||
Percentage of market value for purchasing shares of common stock by employees | 85.00% | ||
Shares issued (in shares) | 689,007 | 737,806 | |
Weighted average purchase price (in dollars per share) | $ 5.30 | $ 5.51 | |
Unrecognized compensation cost | $ 0.4 | ||
Period to recognize unrecognized compensation cost | 6 months | ||
Fair value assumptions - ESPP [Abstract] | |||
Expected life from grant date of ESPP | 6 months | 6 months | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
2016 Employee Stock Purchase Plan [Member] | Minimum [Member] | |||
Fair value assumptions - ESPP [Abstract] | |||
Expected life from grant date of ESPP | 3 months 29 days | ||
Risk-free interest rate | 0.40% | 0.14% | 0.06% |
Expected volatility | 32.00% | 29.00% | 35.00% |
2016 Employee Stock Purchase Plan [Member] | Maximum [Member] | |||
Fair value assumptions - ESPP [Abstract] | |||
Expected life from grant date of ESPP | 6 months | ||
Risk-free interest rate | 1.08% | 0.41% | 0.09% |
Expected volatility | 37.00% | 37.00% | 43.00% |
EMPLOYEE BENEFIT PLANS, Restric
EMPLOYEE BENEFIT PLANS, Restricted Stock Awards and Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restricted Stock Units [Member] | |||
Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Total fair value of restricted stock units granted | $ 10.1 | $ 9.3 | $ 5.8 |
Restricted Stock Awards and Restricted Stock Units [Member] | |||
Restricted stock award and restricted stock unit activity [Roll Forward] | |||
Outstanding - beginning balance (in shares) | 1,927,000 | ||
Awarded (in shares) | 1,302,000 | ||
Released (in shares) | (629,000) | ||
Forfeited (in shares) | (398,000) | ||
Outstanding - ending balance (in shares) | 2,202,000 | 1,927,000 | |
Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Outstanding - beginning balance (in dollars per share) | $ 6.99 | ||
Awarded (in dollars per share) | 7.73 | ||
Released (in dollars per share) | 6.83 | ||
Forfeited (in dollars per share) | 7.40 | ||
Outstanding - ending balance (in dollars per share) | $ 7.39 | $ 6.99 | |
Unrecognized compensation cost | $ 5 | ||
Period to recognize unrecognized compensation cost | 2 years 6 months | ||
Restricted Stock Awards [Member] | Non-employee Director Annual Retainer [Member] | |||
Restricted stock award and restricted stock unit activity [Roll Forward] | |||
Awarded (in shares) | 26,773 | ||
Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Total fair value of restricted stock units granted | $ 0.2 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | May 31, 2016 | |
TREASURY STOCK [Abstract] | ||||
Shares repurchased (in shares) | (339,000) | (126,000) | 0 | |
Average price per share (in dollars per share) | $ 6.77 | $ 6.49 | ||
Value of shares repurchased | $ 2,298 | $ 819 | ||
Increase (decrease) in remaining amount authorized | (2,298) | (819) | ||
Remaining amount authorized | $ 16,883 | $ 19,181 | $ 0 | $ 20,000 |
Retirements of treasury stock (in shares) | 0 | 0 | 0 |
LITIGATION, COMMITMENTS AND C65
LITIGATION, COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
LITIGATION, COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Settlement amount in respect of escrow claim | $ 2,100 | ||
Fair value of escrow settlement modification | $ 0 | $ 0 | 664 |
Professional fee reimbursement expense | 2,500 | ||
Impairment of indemnification asset charge | 0 | 0 | 3,584 |
Indemnification asset | 0 | ||
Settlements and defense fees | (30) | 56 | 8,475 |
Professional fees related to unsolicited acquisition proposal | 600 | ||
Income Tax Contingency [Line Items] | |||
Settlement amount related to settlement and license agreements | 1,000 | ||
Operating Leases [Abstract] | |||
2,018 | 7,095 | ||
2,019 | 5,688 | ||
2,020 | 4,287 | ||
2,021 | 2,499 | ||
2,022 | 1,610 | ||
Thereafter | 940 | ||
Total minimum lease payments | 22,119 | ||
Minimum sublease rentals under noncancelable sublease | 1,600 | ||
Rent expense | 5,700 | 5,400 | 5,600 |
Purchase commitments [Abstract] | |||
Purchase commitment with contract manufacturers | 15,300 | 15,400 | |
Internal Revenue Service (IRS) [Member] | |||
Income Tax Contingency [Line Items] | |||
Settlement amount related to settlement and license agreements | 1,200 | ||
Potential liability for withholding tax audit | 2,000 | ||
Estimated interest and penalties | 1,300 | ||
Accrued liability for withholding tax audit | $ (30) | $ 100 | $ 1,100 |
Internal Revenue Service (IRS) [Member] | Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Calendar year for withholding tax audit | 2,012 | ||
Internal Revenue Service (IRS) [Member] | Minimum [Member] | |||
Income Tax Contingency [Line Items] | |||
Calendar year for withholding tax audit | 2,008 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2017USD ($)Customer | Jun. 30, 2016USD ($)Customer | Jun. 30, 2015USD ($)Customer | |
Revenue by geographic region [Abstract] | |||||||||||
Total revenue | $ 95,721 | $ 87,730 | $ 88,034 | $ 86,274 | $ 94,592 | $ 85,236 | $ 90,431 | $ 90,025 | $ 357,759 | $ 360,284 | $ 359,670 |
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Total assets | 19,066 | 21,551 | $ 19,066 | $ 21,551 | |||||||
Number of major customers | Customer | 1 | 1 | 1 | ||||||||
Revenue [Member] | |||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Revenue from one value added distributor accounted more than 10% | 26.00% | 27.00% | 26.00% | ||||||||
Reportable Geographical Components [Member] | United States of America [Member] | |||||||||||
Revenue by geographic region [Abstract] | |||||||||||
Total revenue | $ 328,490 | $ 330,841 | $ 330,318 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Total assets | 17,764 | 20,323 | 17,764 | 20,323 | |||||||
Reportable Geographical Components [Member] | International [Member] | |||||||||||
Revenue by geographic region [Abstract] | |||||||||||
Total revenue | 29,269 | 29,443 | $ 29,352 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||
Total assets | $ 1,302 | $ 1,228 | $ 1,302 | $ 1,228 |
DERIVATIVE INSTRUMENTS AND HE67
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) € in Thousands, £ in Thousands, CAD in Thousands, AUD in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Jun. 30, 2017USD ($) | Jun. 30, 2017AUD | Jun. 30, 2017GBP (£) | Jun. 30, 2017EUR (€) | Jun. 30, 2017CAD | Jun. 30, 2016USD ($) | Jun. 30, 2016AUD | Jun. 30, 2016GBP (£) | Jun. 30, 2016EUR (€) | Jun. 30, 2016CAD | |
Derivative [Line Items] | ||||||||||
Derivative maturity period | 1 month | |||||||||
Notional contract amount | $ 6,881 | $ 4,772 | ||||||||
Australian Dollar [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | 2,177 | AUD 2,870 | 1,316 | AUD 1,800 | ||||||
British Pound [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | 2,904 | £ 2,250 | 1,088 | £ 830 | ||||||
Canadian Dollar [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | 657 | CAD 860 | 718 | CAD 940 | ||||||
Euro [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional contract amount | $ 1,143 | € 1,010 | $ 1,650 | € 1,500 |
EMPLOYEE 401(K) PLAN (Details)
EMPLOYEE 401(K) PLAN (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
EMPLOYEE 401(K) PLAN [Abstract] | ||
Minimum voluntary tax deferred contributions of gross compensation | 1.00% | |
Maximum voluntary tax deferred contributions of gross compensation | 20.00% | |
Employer matching contributions, maximum amount per employee | $ 1,500 | |
Employer matching contributions | $ 1,100,000 | $ 1,100,000 |
QUARTERLY FINANCIAL DATA (Una69
QUARTERLY FINANCIAL DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract] | |||||||||||
Total revenue | $ 95,721 | $ 87,730 | $ 88,034 | $ 86,274 | $ 94,592 | $ 85,236 | $ 90,431 | $ 90,025 | $ 357,759 | $ 360,284 | $ 359,670 |
Gross profit | 60,567 | 56,222 | 55,504 | 54,323 | 59,487 | 52,436 | 57,885 | 58,012 | 226,616 | 227,820 | 218,563 |
Net income (loss) | $ (956) | $ (2,940) | $ (2,916) | $ (5,631) | $ (744) | $ (8,707) | $ 2,545 | $ 2,114 | $ (12,443) | $ (4,792) | $ (4,404) |
Basic net income (loss) per common share (in dollars per share) | $ (0.01) | $ (0.04) | $ (0.04) | $ (0.08) | $ (0.01) | $ (0.13) | $ 0.04 | $ 0.03 | |||
Diluted net income (loss) per common share (in dollars per share) | $ (0.01) | $ (0.04) | $ (0.04) | $ (0.08) | $ (0.01) | $ (0.13) | $ 0.04 | $ 0.03 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - $ / shares | Jul. 26, 2017 | Jun. 30, 2017 | Jun. 30, 2016 |
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Subsequent Event [Member] | Mitel US Holdings, Inc [Member] | |||
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.001 | ||
Business acquisition, share price (in dollars per share) | $ 7.50 |