Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'UBNT | ' |
Entity Registrant Name | 'Ubiquiti Networks, Inc. | ' |
Entity Central Index Key | '0001511737 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 87,639,156 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $279,729 | $227,826 |
Accounts receivable, net of allowance for doubtful accounts of $2,156 and $2,200, respectively | 35,798 | 35,884 |
Inventories | 16,375 | 15,880 |
Current deferred tax asset | 733 | 733 |
Prepaid expenses and other current assets | 2,273 | 3,151 |
Total current assets | 334,908 | 283,474 |
Property and equipment, net | 5,834 | 5,976 |
Long-term deferred tax asset | 4 | 4 |
Other long–term assets | 2,701 | 2,886 |
Total assets | 343,447 | 292,340 |
Current liabilities: | ' | ' |
Accounts payable | 44,311 | 36,187 |
Customer deposits | 3,578 | 5,123 |
Deferred revenues | 793 | 691 |
Income taxes payable | 1,263 | 1,257 |
Debt - short-term | 5,015 | 5,013 |
Other current liabilities | 12,850 | 11,150 |
Total current liabilities | 67,810 | 59,421 |
Long-term taxes payable | 12,385 | 11,857 |
Debt - long-term | 69,874 | 71,116 |
Deferred revenues - long-term | 2,514 | 2,510 |
Total liabilities | 152,583 | 144,904 |
Commitments and contingencies (Note 8) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock—$0.001 par value; 50,000,000 shares authorized; none issued | 0 | 0 |
Common stock—$0.001 par value; 500,000,000 shares authorized: 87,617,961 and 87,213,803 outstanding at September 30, 2013 and June 30, 2013, respectively | 88 | 87 |
Additional paid–in capital | 137,881 | 134,982 |
Treasury stock—44,238,960 shares held in treasury at September 30, 2013 and June 30, 2013 | -123,864 | -123,864 |
Retained earnings | 176,759 | 136,231 |
Total stockholders’ equity | 190,864 | 147,436 |
Total liabilities and stockholders’ equity | $343,447 | $292,340 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts receivable | $2,156 | $2,200 |
Preferred stock, par value (USD per share) | $0.00 | $0.00 |
Preferred stock, number of shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, number of shares issued | 0 | 0 |
Common stock, par value (USD per share) | $0.00 | $0.00 |
Common stock, number of shares authorized | 500,000,000 | 500,000,000 |
Common stock, number of shares outstanding | 87,617,961 | 87,213,803 |
Treasury stock, number of shares | 44,238,960 | 44,238,960 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | $129,687 | $61,535 |
Cost of revenues | 71,664 | 36,515 |
Gross profit | 58,023 | 25,020 |
Operating expenses: | ' | ' |
Research and development | 6,317 | 4,711 |
Sales, general and administrative | 5,810 | 4,534 |
Total operating expenses | 12,127 | 9,245 |
Income from operations | 45,896 | 15,775 |
Interest expense and other, net | -246 | -86 |
Income before provision for income taxes | 45,650 | 15,689 |
Provision for income taxes | 5,122 | 2,510 |
Net income and comprehensive income | $40,528 | $13,179 |
Net income per share of common stock: | ' | ' |
Basic (in usd per share) | $0.46 | $0.14 |
Diluted (in usd per share) | $0.45 | $0.14 |
Weighted average shares used in computing net income per share of common stock: | ' | ' |
Basic (in shares) | 87,411 | 90,970 |
Diluted (in shares) | 89,473 | 92,925 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities: | ' | ' |
Net income and comprehensive income | $40,528 | $13,179 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 705 | 349 |
Provision for inventory obsolescence | 550 | 25 |
Excess tax benefit from employee stock-based awards | -1,512 | 0 |
Stock-based compensation | 1,167 | 656 |
Write-off of intangible assets | 74 | 0 |
Provision for doubtful accounts | 0 | 500 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 86 | 14,267 |
Inventories | -1,045 | 77 |
Prepaid expenses and other assets | 897 | -1,260 |
Accounts payable | 8,113 | -336 |
Taxes payable | 2,046 | 2,338 |
Deferred revenues | 106 | -7 |
Accrued liabilities and other | 165 | -6,093 |
Net cash provided by operating activities | 51,880 | 23,695 |
Cash Flows from Investing Activities: | ' | ' |
Purchase of property and equipment and other long-term assets | -460 | -2,349 |
Net cash used in investing activities | -460 | -2,349 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from term loan, net | 0 | 20,833 |
Repayments on term loan balance | -1,250 | -583 |
Repurchases of common stock | 0 | -31,258 |
Proceeds from exercise of stock options | 631 | 102 |
Excess tax benefit from employee stock-based awards | 1,512 | 0 |
Tax withholdings related to net share settlements of restricted stock units | -410 | -14 |
Net cash used in financing activities | 483 | -10,920 |
Net increase in cash and cash equivalents | 51,903 | 10,426 |
Cash and cash equivalents at beginning of period | 227,826 | 122,060 |
Cash and cash equivalents at end of period | $279,729 | $132,486 |
BUSINESS_AND_BASIS_OF_PRESENTA
BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2013 | |
Business And Basis Of Presentation [Abstract] | ' |
BUSINESS AND BASIS OF PRESENTATION | ' |
BUSINESS AND BASIS OF PRESENTATION | |
Business— Ubiquiti Networks, Inc. was incorporated in the State of California in 2003 as Pera Networks, Inc. In 2005 the Company changed its name to Ubiquiti Networks, Inc. and commenced its current operations. In June 2010, the Company was re-incorporated in Delaware. | |
Ubiquiti Networks, Inc. and its wholly owned subsidiaries (collectively, “Ubiquiti” or the “Company”) is a product driven company that leverages innovative proprietary technologies to deliver networking solutions to both startup and established network operators and service providers. | |
On October 13, 2011, the Company entered into an underwriting agreement for its initial public offering of common stock at $15.00 per share. The Company's initial public offering closed on October 19, 2011. Immediately prior to the closing of the initial public offering, all outstanding shares of the Company’s preferred stock converted to common stock on a one for one basis. | |
On June 18, 2013, the Company completed a secondary offering of 7,031,464 shares of common stock at an offering price of $16.00 per share, which included 531,464 shares sold in connection with the partial exercise of the option to purchase additional shares granted to the underwriters. All of the shares sold in the offering were sold by existing stockholders of the Company, including entities affiliated with Summit Partners, L.P., and the Company's chief executive officer, Robert J. Pera. No shares were sold by the Company in the offering, and as such, the Company did not receive any proceeds from the offering. | |
The Company operates on a fiscal year ending June 30. In this Quarterly Report, the fiscal year ending June 30, 2014 is referred to as “fiscal 2014” and the fiscal year ended June 30, 2013 is referred to as “fiscal 2013.” | |
Basis of Presentation— The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) related to interim financial statements based on applicable Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. This information reflects all adjustments, which are, in the opinion of the Company, of a normal and recurring nature and necessary to state fairly the statements of financial position, results of operations and cash flows for the dates and periods presented. The June 30, 2013 balance sheet was derived from the audited financial statements as of that date. All significant intercompany transactions and balances have been eliminated. | |
These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2013 included in its Annual Report on Form 10-K, as filed on September 13, 2013 with the SEC (the “Annual Report”). The results of operations for the three months ended September 30, 2013 are not necessarily indicative of the results to be expected for any future periods. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The Company’s significant accounting policies are disclosed in its audited consolidated financial statements for the year ended June 30, 2013 included in the Annual Report. | |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued a new accounting standard update on the financial statement presentation of unrecognized tax benefits. The new guidance provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a new operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The new guidance will become effective for the Company on July 1, 2014 and it should be applied prospectively to unrecognized tax benefits that exist as of the effective date with retrospective application permitted. The Company is currently assessing the impact of this new guidance. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||||||||||
Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The accounting guidance establishes a three-tier fair value hierarchy that requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The fair value hierarchy prioritizes the inputs into three levels that may be used in measuring fair value as follows: | ||||||||||||||||||||||||||||||||
Level 1—observable inputs which include quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||
Level 2—inputs which include observable inputs other than Level 1, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | ||||||||||||||||||||||||||||||||
Level 3—inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. | ||||||||||||||||||||||||||||||||
The Company did not have any financial assets recorded at fair value at September 30, 2013 or June 30, 2013. At September 30, 2013 and June 30, 2013 the Company had debt associated with its Loan and Security Agreement with East West Bank (See Note 7). The fair value of the Company’s debt was estimated based on the current rates offered to the Company for debt with similar terms and remaining maturities and was determined to be a Level 2 measurement. | ||||||||||||||||||||||||||||||||
As of September 30, 2013 and June 30, 2013, the fair value hierarchy for the Company’s financial liabilities was as follows (in thousands): | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||||||||||||||||||||
Fair | Level 1 | Level 2 | Level 3 | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Debt | $ | 74,889 | $ | — | $ | 74,889 | $ | — | $ | 76,129 | $ | — | $ | 76,129 | $ | — | ||||||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
EARNINGS PER SHARE | ' | |||||||
EARNINGS PER SHARE | ||||||||
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): | ||||||||
Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Numerator: | ||||||||
Net income attributable to common stockholders | $ | 40,528 | $ | 13,179 | ||||
Denominator: | ||||||||
Weighted-average shares used in computing basic net income per share | 87,411 | 90,970 | ||||||
Add—dilutive potential common shares: | ||||||||
Stock options | 1,814 | 1,807 | ||||||
Restricted stock units | 248 | 148 | ||||||
Weighted-average shares used in computing diluted net income (loss) per share | 89,473 | 92,925 | ||||||
Net income per share of common stock: | ||||||||
Basic | $ | 0.46 | $ | 0.14 | ||||
Diluted | $ | 0.45 | $ | 0.14 | ||||
The following table summarizes the total potential shares of common stock that were excluded from the diluted per share calculation, because to include them would have been anti-dilutive for the period (in thousands): | ||||||||
Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Stock options | 1 | 36 | ||||||
Restricted stock units | 16 | 297 | ||||||
17 | 333 | |||||||
BALANCE_SHEET_COMPONENTS
BALANCE SHEET COMPONENTS | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Balance Sheet Components [Abstract] | ' | |||||||
BALANCE SHEET COMPONENTS | ' | |||||||
BALANCE SHEET COMPONENTS | ||||||||
Inventories | ||||||||
Inventories consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Finished goods | $ | 16,056 | $ | 15,618 | ||||
Raw materials | 319 | 262 | ||||||
$ | 16,375 | $ | 15,880 | |||||
Prepaid Expenses and Other Current Assets | ||||||||
Prepaid expenses and other current assets consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Non-trade receivables | $ | 1,247 | $ | 2,203 | ||||
Other current assets | 1,026 | 948 | ||||||
$ | 2,273 | $ | 3,151 | |||||
Property and Equipment, Net | ||||||||
Property and equipment, net consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Testing equipment | $ | 3,398 | $ | 3,309 | ||||
Computer and other equipment | 898 | 841 | ||||||
Tooling equipment | 1,995 | 1,737 | ||||||
Furniture and fixtures | 653 | 652 | ||||||
Leasehold improvements | 1,866 | 1,858 | ||||||
Software | 245 | 245 | ||||||
9,055 | 8,642 | |||||||
Less: Accumulated depreciation and amortization | (3,221 | ) | (2,666 | ) | ||||
$ | 5,834 | $ | 5,976 | |||||
Other Long-term Assets | ||||||||
Other long-term assets consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Intangible assets, net | $ | 863 | $ | 1,029 | ||||
Long-term deferred cost of revenues | 1,185 | 1,185 | ||||||
Other long-term assets | 653 | 672 | ||||||
$ | 2,701 | $ | 2,886 | |||||
The Company's intangible assets consist primarily of legal costs associated with the application for and registration of the Company’s patents and trademarks. The Company recorded $150,000 of amortization of intangible assets during the three months ended September 30, 2013. The Company did not record any amortization of intangible assets during the three months ended September 30, 2012. The balance of accumulated amortization was $350,000 and $200,000 at September 30, 2013 and June 30, 2013, respectively. As of September 30, 2013, the Company cannot reasonably estimate future amortization expense by year due to uncertain timing of patent and trademark registrations; however, the Company expects to amortize the remaining balance of its intangible assets over their estimated useful lives. | ||||||||
Other Current Liabilities | ||||||||
Accrued liabilities consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Accrued compensation and benefits | $ | 2,661 | $ | 2,712 | ||||
Accrued accounts payable | 337 | 323 | ||||||
Accrual for an export compliance matter | 1,625 | 1,625 | ||||||
Warranty accrual | 3,200 | 2,913 | ||||||
Other accruals | 5,027 | 3,577 | ||||||
$ | 12,850 | $ | 11,150 | |||||
ACCRUED_WARRANTY
ACCRUED WARRANTY | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||
ACCRUED WARRANTY | ' | |||||||
ACCRUED WARRANTY | ||||||||
The Company offers warranties on certain products, generally for a period of one year, and records a liability for the estimated future costs associated with potential warranty claims. The warranty costs are reflected in the Company’s consolidated statement of operations within cost of revenues. The warranties are typically in effect for 12 months from the distributor’s purchase date of the product. The Company’s estimate of future warranty costs is largely based on historical experience factors including product failure rates, material usage, and service delivery cost incurred in correcting product failures. In certain circumstances, the Company may have recourse from its contract manufacturers for replacement cost of defective products, which it also factors into its warranty liability assessment. | ||||||||
Warranty obligations, included in other current liabilities, were as follows (in thousands): | ||||||||
Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Beginning balance | $ | 2,913 | $ | 1,381 | ||||
Accruals for warranties issued during the period | 1,251 | 958 | ||||||
Warranty costs incurred during the period | (964 | ) | (574 | ) | ||||
$ | 3,200 | $ | 1,765 | |||||
DEBT
DEBT | 3 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
DEBT | ' | |||||||||||||||||||||||
DEBT | ||||||||||||||||||||||||
On August 7, 2012, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with U.S. Bank, as syndication agent, and East West Bank, as administrative agent for the lenders party to the Loan Agreement. The Loan Agreement provides for (i) a $50.0 million revolving credit facility, with a $5.0 million sublimit for the issuance of letters of credit and a $5.0 million sublimit for the making of swingline loan advances (the “Revolving Credit Facility”), and (ii) a $50.0 million term loan facility (the “Term Loan Facility”). The Company may request borrowings under the Revolving Credit Facility until August 7, 2015. The Loan Agreement replaced a previous agreement whereby the Company had an existing term loan balance of $29.2 million as of the date the new Loan Agreement. On August 7, 2012, the Company borrowed $20.8 million under the Term Loan Facility, and no borrowings remain available for borrowing thereunder. On November 21, 2012, the Company borrowed $10.0 million under the Revolving Credit Facility. On December 20, 2012, the Company borrowed an additional $20.0 million under the Revolving Credit Facility, and $20.0 million remains available for borrowing thereunder. | ||||||||||||||||||||||||
The loans bear interest, at the Company’s option, at the base rate plus a spread of 1.25% to 1.75% or an adjusted LIBOR rate (at the Company’s election, for a period of 30, 60, or 90 days) plus a spread of 2.25% to 2.75%, in each case with such spread being determined based on the debt service coverage ratio for its most recently ended fiscal quarter. The base rate is the highest of (i) East West Bank’s prime rate, (ii) the federal funds rate plus a margin equal to 0.50%, or (iii) the LIBOR rate plus a margin equal to 1.00%. The Company is also obligated to pay other customary closing fees, arrangement fees, administration fees, commitment fees and letter of credit fees for a credit facility of this size and type. | ||||||||||||||||||||||||
Interest is due and payable monthly in arrears in the case of loans bearing interest at the base rate and at the end of an interest period in the case of loans bearing interest at the adjusted LIBOR rate. Principal payments under the Term Loan Facility will be made in quarterly installments on the first day of each calendar quarter, and each such quarterly installment shall be equal to $1.25 million through July 1, 2014, then equal to $1.875 million from October 1, 2014 through July 1, 2015, and then equal to $2.5 million from October 1, 2015 through July 1, 2017, with the remaining outstanding principal balance and all accrued and unpaid interest due on August 7, 2017. All outstanding loans under the Revolving Credit Facility, together with all accrued and unpaid interest, are due on August 7, 2015. | ||||||||||||||||||||||||
The Company may prepay the loans, in whole or in part, at any time without premium or penalty, subject to certain conditions including minimum amounts and reimbursement of certain costs in the case of prepayments of LIBOR loans. In addition, the Company is required to prepay the loan under the Term Loan Facility with (i) the proceeds from certain financing transactions or asset sales (subject, in the case of asset sales, to reinvestment rights) and (ii) 25.0% of the Company’s excess cash flow in the U.S., as determined after each fiscal year and in accordance with the Loan Agreement, provided that the Company shall not be required to prepay the loan out of its excess cash flow if its leverage ratio is greater than 1.50:1.00 on the last day of such fiscal year. | ||||||||||||||||||||||||
All of the obligations of the Company under the Loan Agreement are collateralized by substantially all of the Company’s assets, including all of the capital stock of the Company’s future domestic subsidiaries and 65% of the capital stock of the Company’s existing and future foreign subsidiaries, but excluding the Company’s intellectual property, which is subject to a negative pledge agreement. All of the Company’s future domestic subsidiaries are required to guaranty the obligations under the Loan Agreement. Such guarantees by future subsidiaries will be collateralized by substantially all of the property of such subsidiaries, excluding intellectual property. | ||||||||||||||||||||||||
The Loan Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, pay dividends or make distributions, make investments, make acquisitions, prepay certain indebtedness, change the nature of its business, enter into certain transactions with affiliates, enter into restrictive agreements, and make capital expenditures, in each case subject to customary exceptions for a credit facility of this size and type. The Company is also required to maintain a minimum debt service coverage ratio, a maximum leverage ratio, and a minimum liquidity ratio. As of September 30, 2013, the Company was in compliance with all affirmative and negative covenants, debt service coverage ratio, leverage ratio and liquidity ratio requirements. | ||||||||||||||||||||||||
The Loan Agreement includes customary events of default that include, among other things, defaults for the failure to timely pay principal, interest, or other amounts due, defaults due to the inaccuracy of representations and warranties, covenant defaults, a cross default to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults, defaults due to the unenforceability of a guaranty, and defaults due to circumstances that have or could reasonably be expected to have a material adverse effect on the Company's business, operations or financial condition, its ability to pay or perform under the Loan Agreement, or on the lenders' security interests. The occurrence of an event of default could result in the acceleration of the obligations under the Loan Agreement. During the existence of an event of default, interest on the obligations under the Loan Agreement could be increased by 2.00% above the otherwise applicable interest rate. | ||||||||||||||||||||||||
During the three months ended September 30, 2013 and 2012, the Company made aggregate payments of $1.3 million and $583,000, respectively, against the loan balance. As of September 30, 2013, the Company has classified $5.0 million and $69.9 million in short-term and long-term debt, respectively, on its consolidated balance sheet related to the Loan Agreement. | ||||||||||||||||||||||||
The following table summarizes our estimated debt and interest payment obligations as of September 30, 2013 (in thousands): | ||||||||||||||||||||||||
2014(remainder) | 2015 | 2016 | 2017 | 2018 | Total | |||||||||||||||||||
Debt payment obligations | $ | 3,750 | $ | 6,875 | $ | 39,375 | $ | 10,000 | $ | 15,000 | $ | 75,000 | ||||||||||||
Interest payments on debt payment obligations | 1,383 | 1,723 | 1,043 | 532 | 125 | 4,806 | ||||||||||||||||||
Total | $ | 5,133 | $ | 8,598 | $ | 40,418 | $ | 10,532 | $ | 15,125 | $ | 79,806 | ||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||||||||
Certain facilities and equipment are leased under noncancelable operating leases. The Company generally pays taxes, insurance and maintenance costs on leased facilities and equipment. The Company leases office space in San Jose, California and other locations under various non-cancelable operating leases that expire at various dates through 2018. | ||||||||||||||||||||||||||||
At September 30, 2013, future minimum annual payments under operating leases are as follows (in thousands): | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
(remainder) | ||||||||||||||||||||||||||||
Operating leases | $ | 1,552 | $ | 2,061 | $ | 2,003 | $ | 1,302 | $ | 183 | $ | 53 | $ | 7,154 | ||||||||||||||
Purchase Commitments | ||||||||||||||||||||||||||||
The Company subcontracts with other companies to manufacture its products. During the normal course of business, the Company’s contract manufacturers procure components based upon orders placed by the Company. If the Company cancels all or part of the orders, it may still be liable to the contract manufacturers for the cost of the components purchased by them to manufacture the Company’s products. The Company periodically reviews the potential liability and to date no significant accruals have been recorded. | ||||||||||||||||||||||||||||
Indemnification Obligations | ||||||||||||||||||||||||||||
The Company enters into standard indemnification agreements with many of its business partners in the ordinary course of business. These agreements include provisions for indemnifying the business partner against any claim brought by a third party to the extent any such claim alleges that a Ubiquiti product infringes a patent, copyright or trademark, or violates any other proprietary rights of that third party. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is not estimable and the Company has not incurred any material costs to defend lawsuits or settle claims related to these indemnification agreements to date. | ||||||||||||||||||||||||||||
Legal Matters | ||||||||||||||||||||||||||||
The Company may be involved, from time to time, in a variety of claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters and other litigation matters relating to various claims that arise in the normal course of business. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using available information. The Company develops its views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. Taking all of the above factors into account, the Company records an amount where it is probable that the Company will incur a loss and where that loss can be reasonably estimated. However, the Company’s estimates may be incorrect and the Company could ultimately incur more or less than the amounts initially recorded. The Company may also incur significant legal fees, which are expensed as incurred, in defending against these claims. | ||||||||||||||||||||||||||||
Export Compliance Matters | ||||||||||||||||||||||||||||
In January 2011, the U.S. Commerce Department, Bureau of Industry and Security’s (“BIS”) Office of Export Enforcement (“OEE”) contacted the Company to request that the Company provide information related to its relationship with a logistics company in the United Arab Emirates (“UAE”) and with a company in Iran, as well as information on the export classification of its products. As a result of this inquiry the Company, assisted by outside counsel, conducted a review of the Company's export transactions from 2008 through March 2011 to not only gather information responsive to the OEE's request but also to review the Company's overall compliance with export control and sanctions laws. The Company believes its products have been sold into Iran by third parties. The Company does not believe that it directly sold, exported or shipped its products into Iran or any other country subject to a U.S. embargo. However, until early 2010, the Company did not prohibit its distributors from selling its products into Iran or any other country subject to a U.S. embargo. In the course of this review the Company identified that two distributors may have sold the Company's products into Iran. The Company's review also found that while it had obtained required Commodity Classification Rulings for its products in June 2010 and November 2010, the Company did not advise its shipping personnel to change the export authorizations used on its shipping documents until February 2011. During the course of the Company's export control review, the Company also determined that it had failed to maintain adequate records for the five year period required by the Export Administration Regulations (the "EAR") and the sanctions regulations due to its lack of infrastructure and because it was prior to its transition to its current system of record, NetSuite. | ||||||||||||||||||||||||||||
In May 2011, the Company filed a self-disclosure statement with the BIS and OEE. In June 2011, the Company filed a self-disclosure statement with the U.S. Department of the Treasury’s Office of Foreign Asset Control (“OFAC”) regarding the compliance issues noted above. The disclosures address the above described findings and the remedial actions the Company had taken to date. However, the findings also indicate that both distributors continued to sell, directly or indirectly, the Company’s products into Iran during the period from February 2010 through March 2011 and that the Company received various communications from them indicating that they were continuing to do so. Since January 2011, the Company has cooperated with OEE and, prior to its disclosure filing, the Company informally shared with the OEE the substance of its findings with respect to both distributors. From May 2011 to August 2011, the Company provided additional information regarding its review and its findings to OEE to facilitate its investigation and OEE advised the Company in August 2011 that it had completed its investigation of the Company. In August 2011, the Company received a warning letter from OEE stating that OEE had not referred the findings of the Company’s review for criminal or administrative prosecution and closed the investigation of the Company without penalty. | ||||||||||||||||||||||||||||
OFAC is still reviewing the Company’s voluntary disclosure. In the Company’s submission, the Company provided OFAC with an explanation of the activities that led to the sales of its products in Iran and the failure to comply with the EAR and OFAC sanctions. Although the Company’s OFAC and OEE voluntary disclosures covered similar sets of facts, which led the OEE to resolve the case with the issuance of a warning letter, OFAC may conclude that the Company’s actions resulted in violations of U.S. export control and economic sanctions laws and warrant the imposition of penalties that could include fines, termination of the Company’s ability to export its products, and/or referral for criminal prosecution. The penalties may be imposed against the Company and/or its management. The maximum civil monetary penalty for the violations is up to $250,000 or twice the value of the transaction, whichever is greater, per violation. Any such fines or restrictions may be material to the Company’s financial results in the period in which they are imposed. The Company cannot predict when OFAC will complete its review or decide upon the imposition of possible penalties. | ||||||||||||||||||||||||||||
The Company has taken actions designed to ensure that export classification information is distributed to the appropriate personnel in a timely manner, and has adopted policies and procedures to promote its compliance with applicable export laws and regulations, including obtaining written distribution agreements with substantially all of its distributors that contain covenants requiring compliance with U.S. export control and economic sanctions law, notifying all of its distributors of their obligations and obtaining updated distribution agreements from distributors that accounted for approximately 99% of its revenue in fiscal 2013. However the Company cannot be sure such actions will be effective. Additionally, the Company's failure to amend all its distribution agreements and to implement more robust compliance controls immediately after the discovery of Iran-related sales activity in early 2010 may be aggravating factors that could impact the imposition of penalties imposed on the Company or its management. Based on the facts known to the Company to date, the Company recorded an expense of $1.6 million for this export compliance matter in fiscal 2010, which represents management’s estimated exposure for fines in accordance with applicable accounting literature. This amount was calculated from information discovered through the Company’s internal review and this loss is deemed to be probable and reasonably estimable. However, the Company also believes that it is reasonably possible that the loss may be higher, but the Company cannot reasonably estimate the range of any further potential losses. Should additional facts be discovered in the future and/or should actual fines or other penalties substantially differ from the Company’s estimates, its business, financial condition, cash flows and results of operations may be materially negatively impacted. | ||||||||||||||||||||||||||||
Shareholder Class Action Lawsuits | ||||||||||||||||||||||||||||
Beginning on September 7, 2012, two shareholder class action complaints were filed against the Company, certain of its officers and directors and the underwriters of the Company's initial public offering in the United States District Court for the Northern District of California. On January 30, 2013, the plaintiffs filed an Amended Consolidated Complaint, which alleges claims under the Securities Act of 1933, the Securities Exchange Act of 1934 and SEC Rule 10b-5 on behalf of a purported class of those who purchased the Company's common stock between October 14, 2011 and August 9, 2012 and/or acquired the Company's stock pursuant to or traceable to the registration statement for the initial public offering. The Amended Consolidated Complaint alleges that the defendants violated the federal securities laws by issuing false or misleading statements regarding the sale of counterfeit Company products. The consolidated complaint seeks, among other things, damages and interest, rescission, and attorneys' fees and costs. On March 26, 2013, the Company filed a motion to dismiss the complaint. On August 27, 2013, the court held a hearing on the motion to dismiss, and its decision is pending. | ||||||||||||||||||||||||||||
The Company believes that the allegations in the consolidated complaint are without merit and intend to vigorously contest the litigation. However, there can be no assurance that the Company will be successful in its defense. Because the case is at a very early stage, the Company cannot say that a loss is probable and cannot currently reasonably estimate the loss or the range of possible losses that may be experienced in connection with this litigation. |
COMMON_STOCK_AND_TREASURY_STOC
COMMON STOCK AND TREASURY STOCK | 3 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Common Stock And Treasury Stock [Abstract] | ' | ||||||||||
COMMON STOCK AND TREASURY STOCK | ' | ||||||||||
COMMON STOCK AND TREASURY STOCK | |||||||||||
As of September 30, 2013 and June 30, 2013, the authorized capital of the Company included 500,000,000 shares of common stock. As of September 30, 2013, 131,856,921 shares of common stock were issued and 87,617,961 were outstanding. As of June 30, 2013, 131,452,763 shares of common stock were issued and 87,213,803 were outstanding. | |||||||||||
Common Stock Repurchases | |||||||||||
On August 9, 2012, the Company announced that its Board of Directors authorized the Company to repurchase up to $100 million of its common stock. The share repurchase program commenced August 13, 2012 and expired on August 12, 2013. The share repurchase program was funded with proceeds from the Loan Agreement as discussed in Note 7 and from existing cash on hand. | |||||||||||
Common stock repurchase activity through September 30, 2013 was as follows (in thousands, except share and per share amounts): | |||||||||||
Period | Total Number | Average Price | Dollar Value of | ||||||||
of Shares | Paid per Share | Shares that May | |||||||||
Purchased | Have Been Purchased | ||||||||||
August 13, 2012 – August 31, 2012 | 2,179,900 | $ | 8.88 | $ | 80,599 | ||||||
September 1, 2012 – September 30, 2012 | 992,014 | $ | 11.93 | $ | 68,742 | ||||||
October 1, 2012 - October 31, 2012 | 371,665 | $ | 11.72 | $ | 64,377 | ||||||
November 1, 2012 - November 30, 2012 | 657,700 | $ | 11.16 | $ | 57,024 | ||||||
December 1, 2012 - December 31, 2012 | 957,771 | $ | 11.86 | $ | 45,646 | ||||||
Total | 5,159,050 | $ | 10.52 | $ | 45,646 | ||||||
The Company did not repurchase any of its common stock from January 1, 2013 through August 12, 2013, the date that the plan expired. |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
STOCK BASED COMPENSATION | ' | ||||||||||||
STOCK BASED COMPENSATION | |||||||||||||
Stock-Based Compensation Plans | |||||||||||||
The Company’s 2010 Equity Incentive Plan and 2005 Equity Incentive Plan are described in its Annual Report. As of September 30, 2013, the Company had 5,409,090 authorized shares available for future issuance under all of its stock incentive plans. | |||||||||||||
Stock-based Compensation | |||||||||||||
The following table shows total stock-based compensation expense included in the Condensed Consolidated Statements of Operations for the three months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||
Three Months Ended September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Cost of sales | $ | 144 | $ | 81 | |||||||||
Research and development | 496 | 266 | |||||||||||
Sales, general and administrative | 527 | 309 | |||||||||||
$ | 1,167 | $ | 656 | ||||||||||
Stock Options | |||||||||||||
The following is a summary of option activity for the Company’s stock incentive plans for the three months ended September 30, 2013: | |||||||||||||
Common Stock Options Outstanding | |||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||
of Shares | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Life (Years) | |||||||||||||
(In thousands) | |||||||||||||
Balance, June 30, 2013 | 3,614,262 | $ | 3.07 | ||||||||||
Exercised | (358,921 | ) | 1.76 | ||||||||||
Forfeitures and cancellations | (53,343 | ) | 10.87 | ||||||||||
Balance, September 30, 2013 | 3,201,998 | $ | 3.08 | 5.96 | $ | 97,680 | |||||||
Vested and expected to vest as of September 30, 2013 | 3,153,112 | $ | 2.97 | 5.92 | $ | 96,540 | |||||||
Vested and exercisable as of September 30, 2013 | 2,334,226 | $ | 0.83 | 5.01 | $ | 76,468 | |||||||
During the three months ended September 30, 2013 and 2012, the aggregate intrinsic value of options exercised under the Company’s stock incentive plans was $10.0 million and $178,000, respectively, as determined as of the date of option exercise. | |||||||||||||
As of September 30, 2013, the Company had unrecognized compensation costs of $3.1 million related to stock options which the Company expects to recognize over a weighted-average period of 3.0 years. Future option grants will increase the amount of compensation expense to be recorded in these periods. | |||||||||||||
The Company estimates the fair value of employee stock options using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The Company did not grant any employee stock options during the three months ended September 30, 2013 and 2012. | |||||||||||||
Restricted Stock Units (“RSUs”) | |||||||||||||
The following table summarizes the activity of the RSUs made by the Company: | |||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||||
Non-vested RSUs, June 30, 2013 | 744,906 | $ | 14.74 | ||||||||||
RSUs granted | 43,373 | 25.94 | |||||||||||
RSUs vested | (62,542 | ) | 12.61 | ||||||||||
RSUs canceled | (11,000 | ) | 15.99 | ||||||||||
Non-vested RSUs, September 30, 2013 | 714,737 | $ | 15.58 | ||||||||||
The intrinsic value of RSUs vested in the three months ended September 30, 2013 and 2012 was $1.4 million and $91,000, respectively. | |||||||||||||
As of September 30, 2013, there was unrecognized compensation costs related to RSUs of $8.9 million which the Company expects to recognize over a weighted average period of 3.4 years. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
As of September 30, 2013, the Company had approximately $12.3 million of unrecognized tax benefits, substantially all of which would, if recognized, affect its tax expense. The Company has elected to include interest and penalties related to uncertain tax positions as a component of tax expense. At September 30, 2013, an insignificant amount of interest and penalties are included in long-term income tax payable. The Company recorded an increase of its unrecognized tax benefits of $807,000 for the three months ended September 30, 2013. The Company does not expect any significant increases or decreases to its unrecognized tax benefits in the next twelve months. | |
The Company recorded an income tax provision of $5.1 million for the three months ended September 30, 2013. The Company’s estimated 2013 effective tax rate differs from the U.S. statutory rate primarily due to profits earned in jurisdictions where the tax rate is lower than the U.S. tax rate. | |
The Company files U.S. federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The Company’s tax years from 2009 and onwards could be subject to examinations by tax authorities. |
SEGMENT_INFORMATION_REVENUES_B
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS | 3 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS | ' | |||||||||||||
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS | ||||||||||||||
During the first quarter of fiscal 2014, the Company began presenting its revenues by product type in two primary categories, Service Provider Technology and Enterprise Technology. These categories better represent how the Company's business is managed and benchmarked internally, and better reflect the Company’s end user customer delineation. | ||||||||||||||
• | Service Provider Technology includes the Company's airMAX, EdgeMAX and airFiber platforms, as well as embedded radio products and other 802.11 standard products including base stations, radios, backhaul equipment and Customer Premise Equipment (“CPE”). Additionally, Service Provider Technology includes antennas and other products in the 2.0 to 6.0GHz spectrum and miscellaneous products such as mounting brackets, cables and power over Ethernet adapters. Service Provider Technology also includes revenues that are attributable to post contract support ("PCS"). | |||||||||||||
• | Enterprise Technology includes the Company's UniFi, mFi and airVision platforms. | |||||||||||||
Revenues by product type are as follows (in thousands, except percentages): | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
Service Provider Technology | $ | 94,217 | 73 | % | $ | 51,617 | 84 | % | ||||||
Enterprise Technology | 35,470 | 27 | % | 9,918 | 16 | % | ||||||||
Total revenues | $ | 129,687 | 100 | % | $ | 61,535 | 100 | % | ||||||
The following table shows what the Company's revenues by product type would have been for the three months ended September 30, 2013 and 2012 under the previous categorization (in thousands, except percentages): | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
airMAX | $ | 60,506 | 47 | % | $ | 32,057 | 52 | % | ||||||
New platforms | 45,560 | 35 | % | 15,628 | 25 | % | ||||||||
Other systems | 7,615 | 6 | % | 3,784 | 6 | % | ||||||||
Systems | 113,681 | 88 | % | 51,469 | 83 | % | ||||||||
Embedded radio | 2,277 | 2 | % | 1,714 | 3 | % | ||||||||
Antennas/other | 13,729 | 10 | % | 8,352 | 14 | % | ||||||||
Total revenues | $ | 129,687 | 100 | % | $ | 61,535 | 100 | % | ||||||
The following table shows a reconciliation between the prior presentation of revenues by product type and the new presentation (in thousands, except percentages): | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
Service Provider Technology: | ||||||||||||||
airMAX | $ | 60,506 | $ | 32,057 | ||||||||||
New platforms | 11,202 | 6,487 | ||||||||||||
Other systems | 6,885 | 3,151 | ||||||||||||
Embedded radio | 2,277 | 1,714 | ||||||||||||
Antennas/other | 13,347 | 8,208 | ||||||||||||
Total Service Provider Technology | 94,217 | 51,617 | ||||||||||||
Enterprise Technology: | ||||||||||||||
New platforms | 34,358 | 9,141 | ||||||||||||
Other systems | 729 | 633 | ||||||||||||
Antennas/other | 383 | 144 | ||||||||||||
Total Enterprise Technology | 35,470 | 9,918 | ||||||||||||
Total revenues | $ | 129,687 | $ | 61,535 | ||||||||||
The Company generally forwards products directly from its manufacturers to its customers via logistics distribution hubs in Asia. Beginning in the quarter ended December 31, 2012, the Company's products were predominantly routed through a third party logistics provider in China and prior to the quarter ended December 31, 2012, the Company's products were predominantly delivered to our customers through distribution hubs in Hong Kong. The Company's logistics provider, in turn, ships to other locations throughout the world. The Company has determined the geographical distribution of product revenues based upon the customer's ship-to destinations. | ||||||||||||||
Revenues by geography were as follows (in thousands, except percentages): | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
North America(1) | $ | 37,433 | 29 | % | $ | 20,361 | 33 | % | ||||||
South America | 20,776 | 16 | % | 10,243 | 17 | % | ||||||||
Europe, the Middle East and Africa | 52,866 | 41 | % | 23,144 | 37 | % | ||||||||
Asia Pacific | 18,612 | 14 | % | 7,787 | 13 | % | ||||||||
Total revenues | $ | 129,687 | 100 | % | $ | 61,535 | 100 | % | ||||||
-1 | Revenue for the United States was $36.3 million and $19.3 million for the three months ended September 30, 2013 and 2012, respectively. | |||||||||||||
Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated: | ||||||||||||||
Percentage of Revenues | Percentage of Accounts Receivable | |||||||||||||
Three Months Ended September 30, | September 30, | June 30, | ||||||||||||
2013 | 2012 | 2013 | 2013 | |||||||||||
Customer A | 10 | % | * | * | 12 | % | ||||||||
Customer B | 10 | % | 15 | % | 16 | % | 15 | % | ||||||
Customer C | * | * | 13 | % | 11 | % | ||||||||
Customer D | * | * | 11 | % | * | |||||||||
* denotes less than 10% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued a new accounting standard update on the financial statement presentation of unrecognized tax benefits. The new guidance provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a new operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The new guidance will become effective for the Company on July 1, 2014 and it should be applied prospectively to unrecognized tax benefits that exist as of the effective date with retrospective application permitted. The Company is currently assessing the impact of this new guidance. |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair value hierarchy for company's financial assets and liabilities | ' | |||||||||||||||||||||||||||||||
As of September 30, 2013 and June 30, 2013, the fair value hierarchy for the Company’s financial liabilities was as follows (in thousands): | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | |||||||||||||||||||||||||||||||
Fair | Level 1 | Level 2 | Level 3 | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||
Debt | $ | 74,889 | $ | — | $ | 74,889 | $ | — | $ | 76,129 | $ | — | $ | 76,129 | $ | — | ||||||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Computation of basic and diluted earnings per share | ' | |||||||
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): | ||||||||
Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Numerator: | ||||||||
Net income attributable to common stockholders | $ | 40,528 | $ | 13,179 | ||||
Denominator: | ||||||||
Weighted-average shares used in computing basic net income per share | 87,411 | 90,970 | ||||||
Add—dilutive potential common shares: | ||||||||
Stock options | 1,814 | 1,807 | ||||||
Restricted stock units | 248 | 148 | ||||||
Weighted-average shares used in computing diluted net income (loss) per share | 89,473 | 92,925 | ||||||
Net income per share of common stock: | ||||||||
Basic | $ | 0.46 | $ | 0.14 | ||||
Diluted | $ | 0.45 | $ | 0.14 | ||||
Potential shares of common stock excluded from diluted per share calculation | ' | |||||||
The following table summarizes the total potential shares of common stock that were excluded from the diluted per share calculation, because to include them would have been anti-dilutive for the period (in thousands): | ||||||||
Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Stock options | 1 | 36 | ||||||
Restricted stock units | 16 | 297 | ||||||
17 | 333 | |||||||
BALANCE_SHEET_COMPONENTS_Table
BALANCE SHEET COMPONENTS (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Balance Sheet Components [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Finished goods | $ | 16,056 | $ | 15,618 | ||||
Raw materials | 319 | 262 | ||||||
$ | 16,375 | $ | 15,880 | |||||
Prepaid expenses and other current assets | ' | |||||||
Prepaid expenses and other current assets consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Non-trade receivables | $ | 1,247 | $ | 2,203 | ||||
Other current assets | 1,026 | 948 | ||||||
$ | 2,273 | $ | 3,151 | |||||
Property and equipment, net | ' | |||||||
Property and equipment, net consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Testing equipment | $ | 3,398 | $ | 3,309 | ||||
Computer and other equipment | 898 | 841 | ||||||
Tooling equipment | 1,995 | 1,737 | ||||||
Furniture and fixtures | 653 | 652 | ||||||
Leasehold improvements | 1,866 | 1,858 | ||||||
Software | 245 | 245 | ||||||
9,055 | 8,642 | |||||||
Less: Accumulated depreciation and amortization | (3,221 | ) | (2,666 | ) | ||||
$ | 5,834 | $ | 5,976 | |||||
Other long-term assets | ' | |||||||
Other long-term assets consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Intangible assets, net | $ | 863 | $ | 1,029 | ||||
Long-term deferred cost of revenues | 1,185 | 1,185 | ||||||
Other long-term assets | 653 | 672 | ||||||
$ | 2,701 | $ | 2,886 | |||||
Accrued liabilities | ' | |||||||
Accrued liabilities consisted of the following (in thousands): | ||||||||
30-Sep-13 | 30-Jun-13 | |||||||
Accrued compensation and benefits | $ | 2,661 | $ | 2,712 | ||||
Accrued accounts payable | 337 | 323 | ||||||
Accrual for an export compliance matter | 1,625 | 1,625 | ||||||
Warranty accrual | 3,200 | 2,913 | ||||||
Other accruals | 5,027 | 3,577 | ||||||
$ | 12,850 | $ | 11,150 | |||||
ACCRUED_WARRANTY_Tables
ACCRUED WARRANTY (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||
Warranty obligations | ' | |||||||
Warranty obligations, included in other current liabilities, were as follows (in thousands): | ||||||||
Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Beginning balance | $ | 2,913 | $ | 1,381 | ||||
Accruals for warranties issued during the period | 1,251 | 958 | ||||||
Warranty costs incurred during the period | (964 | ) | (574 | ) | ||||
$ | 3,200 | $ | 1,765 | |||||
DEBT_Tables
DEBT (Tables) | 3 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Summary of estimated debt and interest payment obligations | ' | |||||||||||||||||||||||
The following table summarizes our estimated debt and interest payment obligations as of September 30, 2013 (in thousands): | ||||||||||||||||||||||||
2014(remainder) | 2015 | 2016 | 2017 | 2018 | Total | |||||||||||||||||||
Debt payment obligations | $ | 3,750 | $ | 6,875 | $ | 39,375 | $ | 10,000 | $ | 15,000 | $ | 75,000 | ||||||||||||
Interest payments on debt payment obligations | 1,383 | 1,723 | 1,043 | 532 | 125 | 4,806 | ||||||||||||||||||
Total | $ | 5,133 | $ | 8,598 | $ | 40,418 | $ | 10,532 | $ | 15,125 | $ | 79,806 | ||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Future minimum annual payments under operating leases | ' | |||||||||||||||||||||||||||
At September 30, 2013, future minimum annual payments under operating leases are as follows (in thousands): | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
(remainder) | ||||||||||||||||||||||||||||
Operating leases | $ | 1,552 | $ | 2,061 | $ | 2,003 | $ | 1,302 | $ | 183 | $ | 53 | $ | 7,154 | ||||||||||||||
COMMON_STOCK_AND_TREASURY_STOC1
COMMON STOCK AND TREASURY STOCK (Tables) | 3 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Common Stock And Treasury Stock [Abstract] | ' | ||||||||||
Common stock repurchase activity | ' | ||||||||||
Common stock repurchase activity through September 30, 2013 was as follows (in thousands, except share and per share amounts): | |||||||||||
Period | Total Number | Average Price | Dollar Value of | ||||||||
of Shares | Paid per Share | Shares that May | |||||||||
Purchased | Have Been Purchased | ||||||||||
August 13, 2012 – August 31, 2012 | 2,179,900 | $ | 8.88 | $ | 80,599 | ||||||
September 1, 2012 – September 30, 2012 | 992,014 | $ | 11.93 | $ | 68,742 | ||||||
October 1, 2012 - October 31, 2012 | 371,665 | $ | 11.72 | $ | 64,377 | ||||||
November 1, 2012 - November 30, 2012 | 657,700 | $ | 11.16 | $ | 57,024 | ||||||
December 1, 2012 - December 31, 2012 | 957,771 | $ | 11.86 | $ | 45,646 | ||||||
Total | 5,159,050 | $ | 10.52 | $ | 45,646 | ||||||
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Stock-based compensation expense | ' | ||||||||||||
The following table shows total stock-based compensation expense included in the Condensed Consolidated Statements of Operations for the three months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||
Three Months Ended September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Cost of sales | $ | 144 | $ | 81 | |||||||||
Research and development | 496 | 266 | |||||||||||
Sales, general and administrative | 527 | 309 | |||||||||||
$ | 1,167 | $ | 656 | ||||||||||
Option activity for Company's stock incentive plans | ' | ||||||||||||
The following is a summary of option activity for the Company’s stock incentive plans for the three months ended September 30, 2013: | |||||||||||||
Common Stock Options Outstanding | |||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||
of Shares | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Life (Years) | |||||||||||||
(In thousands) | |||||||||||||
Balance, June 30, 2013 | 3,614,262 | $ | 3.07 | ||||||||||
Exercised | (358,921 | ) | 1.76 | ||||||||||
Forfeitures and cancellations | (53,343 | ) | 10.87 | ||||||||||
Balance, September 30, 2013 | 3,201,998 | $ | 3.08 | 5.96 | $ | 97,680 | |||||||
Vested and expected to vest as of September 30, 2013 | 3,153,112 | $ | 2.97 | 5.92 | $ | 96,540 | |||||||
Vested and exercisable as of September 30, 2013 | 2,334,226 | $ | 0.83 | 5.01 | $ | 76,468 | |||||||
Activity of RSUs | ' | ||||||||||||
The following table summarizes the activity of the RSUs made by the Company: | |||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||||
Non-vested RSUs, June 30, 2013 | 744,906 | $ | 14.74 | ||||||||||
RSUs granted | 43,373 | 25.94 | |||||||||||
RSUs vested | (62,542 | ) | 12.61 | ||||||||||
RSUs canceled | (11,000 | ) | 15.99 | ||||||||||
Non-vested RSUs, September 30, 2013 | 714,737 | $ | 15.58 | ||||||||||
SEGMENT_INFORMATION_REVENUES_B1
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS (Tables) | 3 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Revenues by product type | ' | |||||||||||||
Revenues by product type are as follows (in thousands, except percentages): | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
Service Provider Technology | $ | 94,217 | 73 | % | $ | 51,617 | 84 | % | ||||||
Enterprise Technology | 35,470 | 27 | % | 9,918 | 16 | % | ||||||||
Total revenues | $ | 129,687 | 100 | % | $ | 61,535 | 100 | % | ||||||
The following table shows what the Company's revenues by product type would have been for the three months ended September 30, 2013 and 2012 under the previous categorization (in thousands, except percentages): | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
airMAX | $ | 60,506 | 47 | % | $ | 32,057 | 52 | % | ||||||
New platforms | 45,560 | 35 | % | 15,628 | 25 | % | ||||||||
Other systems | 7,615 | 6 | % | 3,784 | 6 | % | ||||||||
Systems | 113,681 | 88 | % | 51,469 | 83 | % | ||||||||
Embedded radio | 2,277 | 2 | % | 1,714 | 3 | % | ||||||||
Antennas/other | 13,729 | 10 | % | 8,352 | 14 | % | ||||||||
Total revenues | $ | 129,687 | 100 | % | $ | 61,535 | 100 | % | ||||||
Reconciliation of revenues by product between old and new categorization | ' | |||||||||||||
The following table shows a reconciliation between the prior presentation of revenues by product type and the new presentation (in thousands, except percentages): | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
Service Provider Technology: | ||||||||||||||
airMAX | $ | 60,506 | $ | 32,057 | ||||||||||
New platforms | 11,202 | 6,487 | ||||||||||||
Other systems | 6,885 | 3,151 | ||||||||||||
Embedded radio | 2,277 | 1,714 | ||||||||||||
Antennas/other | 13,347 | 8,208 | ||||||||||||
Total Service Provider Technology | 94,217 | 51,617 | ||||||||||||
Enterprise Technology: | ||||||||||||||
New platforms | 34,358 | 9,141 | ||||||||||||
Other systems | 729 | 633 | ||||||||||||
Antennas/other | 383 | 144 | ||||||||||||
Total Enterprise Technology | 35,470 | 9,918 | ||||||||||||
Total revenues | $ | 129,687 | $ | 61,535 | ||||||||||
Revenues by geography | ' | |||||||||||||
Revenues by geography were as follows (in thousands, except percentages): | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
North America(1) | $ | 37,433 | 29 | % | $ | 20,361 | 33 | % | ||||||
South America | 20,776 | 16 | % | 10,243 | 17 | % | ||||||||
Europe, the Middle East and Africa | 52,866 | 41 | % | 23,144 | 37 | % | ||||||||
Asia Pacific | 18,612 | 14 | % | 7,787 | 13 | % | ||||||||
Total revenues | $ | 129,687 | 100 | % | $ | 61,535 | 100 | % | ||||||
-1 | Revenue for the United States was $36.3 million and $19.3 million for the three months ended September 30, 2013 and 2012, respectively. | |||||||||||||
Percentage of revenue and accounts receivable | ' | |||||||||||||
Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated: | ||||||||||||||
Percentage of Revenues | Percentage of Accounts Receivable | |||||||||||||
Three Months Ended September 30, | September 30, | June 30, | ||||||||||||
2013 | 2012 | 2013 | 2013 | |||||||||||
Customer A | 10 | % | * | * | 12 | % | ||||||||
Customer B | 10 | % | 15 | % | 16 | % | 15 | % | ||||||
Customer C | * | * | 13 | % | 11 | % | ||||||||
Customer D | * | * | 11 | % | * | |||||||||
* denotes less than 10% |
BUSINESS_AND_BASIS_OF_PRESENTA1
BUSINESS AND BASIS OF PRESENTATION - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||
Sep. 30, 2013 | Oct. 13, 2011 | Jun. 18, 2013 | Jun. 18, 2013 | |
Existing stockholders, including the Company's CEO and entities affiliated with Summit Partners, L.P. | Options granted to underwriters | |||
Class of Stock [Line Items] | ' | ' | ' | ' |
Year of incorporation | '2003 | ' | ' | ' |
Year of commencement of business | '2005 | ' | ' | ' |
Common stock issue price under initial public offering (in usd per share) | ' | $15 | ' | ' |
Conversion of preferred stock into common stock ratio | ' | 1 | ' | ' |
Number of shares offered | ' | ' | 7,031,464 | ' |
Price (in usd per share) | ' | ' | $16 | ' |
Number of shares sold in connection with the partial exercise of the option to purchase additional shares | ' | ' | ' | 531,464 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value Hierarchy (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities: | ' | ' |
Debt | $74,889 | $76,129 |
Level 1 | ' | ' |
Liabilities: | ' | ' |
Debt | 0 | 0 |
Level 2 | ' | ' |
Liabilities: | ' | ' |
Debt | 74,889 | 76,129 |
Level 3 | ' | ' |
Liabilities: | ' | ' |
Debt | $0 | $0 |
EARNINGS_PER_SHARE_Computation
EARNINGS PER SHARE - Computation of basic and diluted earnings per share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' |
Net income attributable to common stockholders | $40,528 | $13,179 |
Denominator: | ' | ' |
Weighted-average shares used in computing basic net income per share (in shares) | 87,411 | 90,970 |
Weighted-average shares used in computing diluted net income (loss) per share (in shares) | 89,473 | 92,925 |
Net income per share of common stock: | ' | ' |
Basic (in usd per share) | $0.46 | $0.14 |
Diluted (in usd per share) | $0.45 | $0.14 |
Stock options | ' | ' |
Denominator: | ' | ' |
Dilutive potential common shares (in shares) | 1,814 | 1,807 |
Restricted stock units | ' | ' |
Denominator: | ' | ' |
Dilutive potential common shares (in shares) | 248 | 148 |
EARNINGS_PER_SHARE_Antidilutiv
EARNINGS PER SHARE - Anti-dilutive Securities (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential shares of common stock excluded from the EPS calculation (in shares) | 17 | 333 |
Stock options | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential shares of common stock excluded from the EPS calculation (in shares) | 1 | 36 |
Restricted stock units | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potential shares of common stock excluded from the EPS calculation (in shares) | 16 | 297 |
BALANCE_SHEET_COMPONENTS_Inven
BALANCE SHEET COMPONENTS - Inventory (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Components [Abstract] | ' | ' |
Finished goods | $16,056 | $15,618 |
Raw materials | 319 | 262 |
Inventories | $16,375 | $15,880 |
BALANCE_SHEET_COMPONENTS_Prepa
BALANCE SHEET COMPONENTS - Prepaid Expenses and Other Current Assets (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Balance Sheet Components [Abstract] | ' | ' |
Non-trade receivables | $1,247 | $2,203 |
Other current assets | 1,026 | 948 |
Prepaid expenses and other current assets | $2,273 | $3,151 |
BALANCE_SHEET_COMPONENTS_Prope
BALANCE SHEET COMPONENTS - Property and Equipment, Net (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment gross | $9,055 | $8,642 |
Less: Accumulated depreciation and amortization | -3,221 | -2,666 |
Property and equipment, net | 5,834 | 5,976 |
Testing equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment gross | 3,398 | 3,309 |
Computer and other equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment gross | 898 | 841 |
Tooling equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment gross | 1,995 | 1,737 |
Furniture and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment gross | 653 | 652 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment gross | 1,866 | 1,858 |
Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment gross | $245 | $245 |
BALANCE_SHEET_COMPONENTS_Other
BALANCE SHEET COMPONENTS - Other Long-term Assets (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 |
Balance Sheet Components [Abstract] | ' | ' | ' |
Intangible assets, net | $863 | ' | $1,029 |
Long-term deferred cost of revenues | 1,185 | ' | 1,185 |
Other long-term assets | 653 | ' | 672 |
Total | 2,701 | ' | 2,886 |
Amortization of intangible assets | 150 | 0 | ' |
Accumulated amortization | $350 | ' | $200 |
BALANCE_SHEET_COMPONENTS_Other1
BALANCE SHEET COMPONENTS - Other Current Liabilities (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 |
In Thousands, unless otherwise specified | ||||
Balance Sheet Components [Abstract] | ' | ' | ' | ' |
Accrued compensation and benefits | $2,661 | $2,712 | ' | ' |
Accrued accounts payable | 337 | 323 | ' | ' |
Accrual for an export compliance matter | 1,625 | 1,625 | ' | ' |
Warranty accrual | 3,200 | 2,913 | 1,765 | 1,381 |
Other accruals | 5,027 | 3,577 | ' | ' |
Total accrued liabilities | $12,850 | $11,150 | ' | ' |
ACCRUED_WARRANTY_Additional_In
ACCRUED WARRANTY - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2013 | |
Product Warranties Disclosures [Abstract] | ' |
Warranty period | '12 months |
ACCRUED_WARRANTY_Warranty_Obli
ACCRUED WARRANTY - Warranty Obligations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ' | ' |
Beginning balance | $2,913 | $1,381 |
Accruals for warranties issued during the period | 1,251 | 958 |
Warranty costs incurred during the period | -964 | -574 |
Ending balance | $3,200 | $1,765 |
DEBT_Additional_Information_De
DEBT - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 20, 2012 | Nov. 21, 2012 | Sep. 30, 2013 | Aug. 07, 2012 | Aug. 07, 2012 | Aug. 07, 2012 | Sep. 30, 2013 | Aug. 07, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 07, 2012 |
Loan Agreement | Loan Agreement | Loan Agreement | Loan Agreement | Loan Agreement | Loan Agreement | Loan Agreement | Loan Agreement | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Sublimit for letters of credit | Sublimit for swingline loan advances | Term loan facility | Term loan facility | Term loan facility | Term loan facility | Term loan facility | Previous credit agreement | |||
Base rate | Base rate | Base rate | LIBOR | LIBOR | LIBOR | Through July 1, 2014 | October 1, 2014 through July 1, 2015 | October 1, 2015 through July 1, 2017 | ||||||||||||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||||||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | $5,000,000 | $5,000,000 | ' | $50,000,000 | ' | ' | ' | ' |
Borrowed term loans under the term loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,800,000 | ' | ' | ' | 29,200,000 |
Remaining borrowing capacity under revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Borrowings under the revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable base rate | ' | ' | ' | ' | 0.50% | 1.25% | 1.75% | 1.00% | 2.25% | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly principal payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000 | 1,875,000 | 2,500,000 | ' |
Excess cash flow percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' |
Leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' |
Company's capital stock of existing and future foreign subsidiaries | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Penal interest rate in case of default | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company made aggregate payments | ' | ' | 1,300,000 | 583,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short term debt obligations | 5,015,000 | 5,013,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt obligations | $69,874,000 | $71,116,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_Summary_of_debt_and_inter
DEBT - Summary of debt and interest payment obligations (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
Debt payment obligations, 2014 (remainder) | $3,750 |
Interest payments on debt payment obligations, 2014 (remainder) | 1,383 |
Total, 2014 (remainder) | 5,133 |
Debt payment obligations, 2015 | 6,875 |
Interest payments on debt payment obligations, 2015 | 1,723 |
Total, 2015 | 8,598 |
Debt payment obligations, 2016 | 39,375 |
Interest payments on debt payment obligations, 2016 | 1,043 |
Total, 2016 | 40,418 |
Debt payment obligations, 2017 | 10,000 |
Interest payments on debt payment obligations, 2017 | 532 |
Total, 2017 | 10,532 |
Debt payment obligations, 2018 | 15,000 |
Interest payments on debt payment obligations, 2018 | 125 |
Total, 2018 | 15,125 |
Debt payment obligations | 75,000 |
Interest payments on debt payment obligations | 4,806 |
Total | $79,806 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 13 Months Ended | |
Jan. 31, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2010 | Sep. 30, 2013 | |
Distributor | claim | ||||
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' | ' | ' |
Number of distributors | 2 | ' | ' | ' | ' |
Record retention requirement | '5 years | ' | ' | ' | ' |
Maximum civil monetary penalty | ' | $250,000 | ' | ' | ' |
Percentage of revenue | ' | ' | 99.00% | ' | ' |
Expense related to export compliance matter | ' | ' | ' | $1,600,000 | ' |
Shareholder class action complaints filed against Company | ' | ' | ' | ' | 2 |
San Jose, CA | ' | ' | ' | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' | ' | ' |
Noncancelable operating leases expiration period | ' | 'through 2018 | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future minimum annual payments under operating leases (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 (remainder) | $1,552 |
2015 | 2,061 |
2016 | 2,003 |
2017 | 1,302 |
2018 | 183 |
Thereafter | 53 |
Total | $7,154 |
COMMON_STOCK_AND_TREASURY_STOC2
COMMON STOCK AND TREASURY STOCK - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 7 Months Ended | |||||
Aug. 09, 2012 | Dec. 31, 2012 | Nov. 30, 2012 | Oct. 31, 2012 | Sep. 30, 2012 | Aug. 31, 2012 | Sep. 30, 2013 | Aug. 12, 2013 | Jun. 30, 2013 | |
Common Stock And Treasury Stock [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, number of shares authorized | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | 500,000,000 |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | 131,856,921 | ' | 131,452,763 |
Common stock, number of shares outstanding | ' | ' | ' | ' | ' | ' | 87,617,961 | ' | 87,213,803 |
Repurchase of common stock | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchases (in shares) | ' | 957,771 | 657,700 | 371,665 | 992,014 | 2,179,900 | 5,159,050 | 0 | ' |
COMMON_STOCK_AND_TREASURY_STOC3
COMMON STOCK AND TREASURY STOCK - Common Stock Repurchase Activity (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 7 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Nov. 30, 2012 | Oct. 31, 2012 | Sep. 30, 2012 | Aug. 31, 2012 | Sep. 30, 2013 | Aug. 12, 2013 |
Common Stock And Treasury Stock [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Total number of shares purchased | 957,771 | 657,700 | 371,665 | 992,014 | 2,179,900 | 5,159,050 | 0 |
Average price paid per share (in usd per share) | $11.86 | $11.16 | $11.72 | $11.93 | $8.88 | $10.52 | ' |
Dollar value of shares that may yet be purchased | $45,646 | $57,024 | $64,377 | $68,742 | $80,599 | $45,646 | ' |
STOCK_BASED_COMPENSATION_Addit
STOCK BASED COMPENSATION - Additional Information (Detail) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Authorized shares, stock incentive plans | 5,409,090 | ' |
Stock options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Aggregate intrinsic value of options exercised | $10,000,000 | $178,000 |
Unrecognized compensation costs | 3,100,000 | ' |
Weighted-average period recognized | '3 years 0 months 0 days | ' |
Restricted stock units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Unrecognized compensation costs | 8,900,000 | ' |
Weighted-average period recognized | '3 years 5 months | ' |
Intrinsic value of RSUs vested | $1,400,000 | $91,000 |
STOCK_BASED_COMPENSATION_Stock
STOCK BASED COMPENSATION - Stock-based compensation expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $1,167 | $656 |
Cost of sales [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 144 | 81 |
Research and development [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 496 | 266 |
Selling, general and administrative [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $527 | $309 |
STOCK_BASED_COMPENSATION_Optio
STOCK BASED COMPENSATION - Option activity for company's stock incentive plans (Detail) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Number of Shares, Beginning Balance | 3,614,262 |
Number of Shares, Exercised | -358,921 |
Number of Shares, Forfeitures and Cancellations | -53,343 |
Number of Shares, Ending Balance | 3,201,998 |
Number of Shares, Vested and expected to vest as of September 30, 2013 | 3,153,112 |
Number of Shares, Vested and exercisable as of September 30, 2013 | 2,334,226 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Options Outstanding, Weighted Average Exercise Price, Beginning Balance (in usd per share) | $3.07 |
Options, Exercised, Weighted Average Exercise Price (in usd per share) | $1.76 |
Options, Forfeitures and Cancellations, Weighted Average Exercise Price (in usd per share) | $10.87 |
Options Outstanding, Weighted Average Exercise Price, Ending Balance (in usd per share) | $3.08 |
Options, Weighted Average Exercise Price, Vested and expected to vest, Ending Balance (in usd per share) | $2.97 |
Options, Weighted Average Exercise Price, Vested and exercisable, Ending Balance (in usd per share) | $0.83 |
Options outstanding, Weighted Average Remaining Contractual Term, Ending Balance | '5 years 11 months 16 days |
Options, Remaining Contractual Term, Vested and expected to vest, Ending Balance | '5 years 11 months 1 day |
Options, Weighted Average Remaining Contractual Term, Vested and exercisable, Ending Balance | '5 years 0 months 4 days |
Options outstanding, Intrinsic Value, Ending Balance | $97,680 |
Options, Aggregate Intrinsic Value, Vested and expected to vest, Ending Balance | 96,540 |
Options, Aggregate Intrinsic Value, Vested and exercisable, Ending Balance | $76,468 |
STOCK_BASED_COMPENSATION_Summa
STOCK BASED COMPENSATION - Summary of RSU activity (Detail) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Non-vested RSUs, number of Shares, Beginning Balance | 744,906 |
RSUs granted, number of Shares | 43,373 |
RSUs vested, number of Shares | -62,542 |
RSUs canceled, number of Shares | -11,000 |
Non-vested RSUs, number of Shares, Ending balance | 714,737 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Non-vested RSUs, weighted average grant date fair value, Beginning balance (in usd per share) | $14.74 |
RSUs granted, weighted average grant date fair value (in usd per share) | $25.94 |
RSUs vested, weighted average grant date fair value (in usd per share) | $12.61 |
RSUs cancelled, weighted average grant date fair value (in usd per share) | $15.99 |
Non-vested RSUs, weighted average grant date fair value, Ending balance (in usd per share) | $15.58 |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Unrecognized tax benefits | $12,300,000 | ' |
Increase in unrecognized tax benefits | 807,000 | ' |
Provision for income taxes | $5,122,000 | $2,510,000 |
SEGMENT_INFORMATION_REVENUES_B2
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Revenues by product (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | $129,687 | $61,535 |
Revenues by product percentage | 100.00% | 100.00% |
Service Provider Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 94,217 | 51,617 |
Revenues by product percentage | 73.00% | 84.00% |
Enterprise Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 35,470 | 9,918 |
Revenues by product percentage | 27.00% | 16.00% |
Systems | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 113,681 | 51,469 |
Revenues by product percentage | 88.00% | 83.00% |
airMAX | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 60,506 | 32,057 |
Revenues by product percentage | 47.00% | 52.00% |
New platforms | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 45,560 | 15,628 |
Revenues by product percentage | 35.00% | 25.00% |
Other systems | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 7,615 | 3,784 |
Revenues by product percentage | 6.00% | 6.00% |
Embedded radio | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 2,277 | 1,714 |
Revenues by product percentage | 2.00% | 3.00% |
Antennas/other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 13,729 | 8,352 |
Revenues by product percentage | 10.00% | 14.00% |
airMAX | Service Provider Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 60,506 | 32,057 |
New platforms | Service Provider Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 11,202 | 6,487 |
New platforms | Enterprise Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 34,358 | 9,141 |
Other systems | Service Provider Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 6,885 | 3,151 |
Other systems | Enterprise Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 729 | 633 |
Embedded radio | Service Provider Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 2,277 | 1,714 |
Antennas/other | Service Provider Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 13,347 | 8,208 |
Antennas/other | Enterprise Technology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | $383 | $144 |
SEGMENT_INFORMATION_REVENUES_B3
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Revenues by geography (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Domestic revenues | $36,300 | $19,300 | ||
Revenues | 129,687 | 61,535 | ||
Revenues by geography percentage | 100.00% | 100.00% | ||
North America | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Domestic revenues | 37,433 | [1] | 20,361 | [1] |
Revenues by geography percentage | 29.00% | [1] | 33.00% | [1] |
South America | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Domestic revenues | 20,776 | 10,243 | ||
Revenues by geography percentage | 16.00% | 17.00% | ||
Europe, the Middle East and Africa | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Foreign revenues | 52,866 | 23,144 | ||
Revenues by geography percentage | 41.00% | 37.00% | ||
Asia Pacific | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Foreign revenues | $18,612 | $7,787 | ||
Revenues by geography percentage | 14.00% | 13.00% | ||
[1] | Revenue for the United States was $36.3 million and $19.3 million for the three months ended September 30, 2013 and 2012, respectively. |
SEGMENT_INFORMATION_REVENUES_B4
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
revenue_category | ||
Segment Reporting [Abstract] | ' | ' |
Number of Operating Segments | 2 | ' |
United States revenues | $36.30 | $19.30 |
Percentage of accounts receivable by major customer | 10.00% | ' |
Percentage of revenues by major customer | 10.00% | ' |
SEGMENT_INFORMATION_REVENUES_B5
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Percentage of Revenues, Accounts Receivable (Detail) | 3 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenues | 10.00% | ' | ' |
Percentage of accounts receivable | 10.00% | ' | ' |
Customer A | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenues | 10.00% | ' | ' |
Percentage of accounts receivable | ' | ' | 12.00% |
Customer B | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of revenues | 10.00% | 15.00% | ' |
Percentage of accounts receivable | 16.00% | ' | 15.00% |
Customer C | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of accounts receivable | 13.00% | ' | 11.00% |
Customer D | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of accounts receivable | 11.00% | ' | ' |