Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2020 | May 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Focus | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35300 | |
Entity Registrant Name | UBIQUITI INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0097377 | |
Entity Address, Address Line One | 685 Third Avenue | |
Entity Address, Address Line Two | 27th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 646 | |
Local Phone Number | 780-7958 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | UI | |
Security Exchange Name | NYSE | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,684,168 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001511737 | |
Current Fiscal Year End Date | --06-30 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 77,781 | $ 238,147 |
Investments — short-term | 6,932 | 69,866 |
Accounts receivable, net of allowance for doubtful accounts of $203 and $203 at March 31, 2020 and June 30, 2019, respectively | 173,882 | 156,043 |
Inventories | 205,244 | 264,281 |
Vendor deposits | 8,021 | 11,608 |
Prepaid income taxes | 19 | 23 |
Prepaid expenses and other current assets | 10,917 | 13,843 |
Total current assets | 482,796 | 753,811 |
Property and equipment, net | 79,048 | 13,618 |
Operating lease right-of-use assets, net | 23,459 | |
Deferred tax assets — long-term | 2,784 | 2,910 |
Investments — long-term | 5,113 | 31,585 |
Other long-term assets | 27,419 | 73,941 |
Total assets | 620,619 | 875,865 |
Current liabilities: | ||
Accounts payable | 61,017 | 38,722 |
Income taxes payable | 8,369 | 25,556 |
Debt — short-term | 24,067 | 30,675 |
Other current liabilities | 84,296 | 84,233 |
Total current liabilities | 177,749 | 179,186 |
Income taxes payable — long-term | 116,036 | 124,262 |
Operating lease liabilities —long-term | 17,230 | |
Debt — long-term | 659,447 | 464,700 |
Other long-term liabilities | 6,143 | 8,440 |
Total liabilities | 976,605 | 776,588 |
Commitments and contingencies (Note 10) | ||
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: [___] and 69,472,568 outstanding as of December 31, 2019 and June 30, 2019, respectively | 64 | 69 |
Additional paid–in capital | 0 | 0 |
Accumulated other comprehensive income | (22) | 393 |
Retained (deficit) earnings | (356,028) | 98,815 |
Total stockholders’ equity (deficit) | (355,986) | 99,277 |
Total liabilities and stockholders’ equity | $ 620,619 | $ 875,865 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 203 | $ 203 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 63,783,333 | 69,472,568 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 337,417 | $ 284,911 | $ 968,978 | $ 875,092 |
Cost of revenues | 177,782 | 152,081 | 512,866 | 470,425 |
Gross profit | 159,635 | 132,830 | 456,112 | 404,667 |
Operating expenses: | ||||
Research and development | 21,672 | 21,341 | 65,965 | 59,540 |
Sales, general and administrative | 10,606 | 9,352 | 30,053 | 33,715 |
Litigation settlement | 0 | 0 | 0 | 18,000 |
Total operating expenses | 32,278 | 30,693 | 96,018 | 111,255 |
Income from operations | 127,357 | 102,137 | 360,094 | 293,412 |
Interest expense and other, net | (6,618) | (3,447) | (23,356) | (9,186) |
Income before income taxes | 120,739 | 98,690 | 336,738 | 284,226 |
Provisions for income taxes | 17,017 | 10,390 | 49,059 | 32,427 |
Net income | $ 103,722 | $ 88,300 | $ 287,679 | $ 251,799 |
Net income per share of common stock: | ||||
Basic (in usd per share) | $ 1.60 | $ 1.25 | $ 4.36 | $ 3.50 |
Diluted (in usd per share) | $ 1.60 | $ 1.25 | $ 4.35 | $ 3.50 |
Weighted average shares used in computing net income per share of common stock: | ||||
Basic (in shares) | 64,630 | 70,540 | 66,003 | 71,856 |
Diluted (in shares) | 64,699 | 70,692 | 66,094 | 72,036 |
Other comprehensive income: | ||||
Unrealized (losses) gains on available-for-sale securities | $ (90) | $ 325 | $ (415) | $ 177 |
Other comprehensive (loss) gains | (90) | 325 | (415) | 177 |
Comprehensive income | $ 103,632 | $ 88,625 | $ 287,264 | $ 251,976 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Jun. 30, 2018 | 74,072,521 | ||||
Beginning balance at Jun. 30, 2018 | $ 315,748 | $ 74 | $ 393 | $ 315,281 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 85,703 | 85,703 | |||
Other comprehensive income (loss) | (146) | $ (146) | |||
Stock options exercised (in shares) | 17,378 | ||||
Stock options exercised | 194 | 194 | |||
Restricted stock units issued, net of tax withholdings (in shares) | 6,151 | ||||
Restricted stock units issued, net of tax withholdings | (365) | (365) | |||
Repurchases of Common Stock (in shares) | (1,238,163) | ||||
Repurchases of Common Stock | (112,764) | $ (1) | (997) | (111,766) | |
Stock-based compensation expense | 775 | 775 | |||
Dividends Paid on Common Stock | (18,506) | (18,506) | |||
Ending balance (in shares) at Sep. 30, 2018 | 72,857,887 | ||||
Ending balance at Sep. 30, 2018 | 270,639 | $ 73 | 270,712 | (146) | |
Beginning balance (in shares) at Jun. 30, 2018 | 74,072,521 | ||||
Beginning balance at Jun. 30, 2018 | 315,748 | $ 74 | 393 | 315,281 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 251,799 | ||||
Other comprehensive income (loss) | 177 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 70,575,978 | ||||
Ending balance at Mar. 31, 2019 | 188,100 | $ 71 | 769 | 187,083 | 177 |
Beginning balance (in shares) at Sep. 30, 2018 | 72,857,887 | ||||
Beginning balance at Sep. 30, 2018 | 270,639 | $ 73 | 270,712 | (146) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 77,796 | 77,796 | |||
Other comprehensive income (loss) | (2) | (2) | |||
Stock options exercised (in shares) | 18,748 | ||||
Stock options exercised | 186 | 186 | |||
Restricted stock units issued, net of tax withholdings (in shares) | 10,378 | ||||
Restricted stock units issued, net of tax withholdings | (114) | (114) | |||
Repurchases of Common Stock (in shares) | (2,287,975) | ||||
Repurchases of Common Stock | (206,315) | $ (2) | (851) | (205,462) | |
Stock-based compensation expense | 779 | 779 | |||
Dividends Paid on Common Stock | (17,633) | (17,633) | |||
Ending balance (in shares) at Dec. 31, 2018 | 70,599,038 | ||||
Ending balance at Dec. 31, 2018 | 125,336 | $ 71 | 125,413 | (148) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 88,300 | 88,300 | |||
Other comprehensive income (loss) | 325 | 325 | |||
Stock options exercised (in shares) | 50,318 | ||||
Stock options exercised | 430 | $ 0 | 430 | ||
Restricted stock units issued, net of tax withholdings (in shares) | 17,871 | ||||
Restricted stock units issued, net of tax withholdings | (413) | (413) | |||
Repurchases of Common Stock (in shares) | (91,249) | ||||
Repurchases of Common Stock | (8,999) | $ 0 | 0 | (8,999) | |
Stock-based compensation expense | 752 | 752 | |||
Dividends Paid on Common Stock | (17,631) | (17,631) | |||
Ending balance (in shares) at Mar. 31, 2019 | 70,575,978 | ||||
Ending balance at Mar. 31, 2019 | $ 188,100 | $ 71 | 769 | 187,083 | 177 |
Beginning balance (in shares) at Jun. 30, 2019 | 69,472,568 | 69,472,568 | |||
Beginning balance at Jun. 30, 2019 | $ 99,277 | $ 69 | 98,815 | 393 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 98,146 | 98,146 | |||
Other comprehensive income (loss) | (153) | (153) | |||
Stock options exercised (in shares) | 678 | ||||
Stock options exercised | 3 | 3 | |||
Restricted stock units issued, net of tax withholdings (in shares) | 9,743 | ||||
Restricted stock units issued, net of tax withholdings | (501) | (501) | |||
Repurchases of Common Stock (in shares) | (3,635,534) | ||||
Repurchases of Common Stock | (416,219) | $ (3) | (191) | (416,025) | |
Stock-based compensation expense | 689 | 689 | |||
Dividends Paid on Common Stock | (20,669) | (20,669) | |||
Ending balance (in shares) at Sep. 30, 2019 | 65,847,455 | ||||
Ending balance at Sep. 30, 2019 | $ (239,427) | $ 66 | (239,733) | 240 | |
Beginning balance (in shares) at Jun. 30, 2019 | 69,472,568 | 69,472,568 | |||
Beginning balance at Jun. 30, 2019 | $ 99,277 | $ 69 | 98,815 | 393 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 287,679 | ||||
Other comprehensive income (loss) | $ (415) | ||||
Stock options exercised (in shares) | 20,348 | ||||
Ending balance (in shares) at Mar. 31, 2020 | 63,783,333 | 63,783,333 | |||
Ending balance at Mar. 31, 2020 | $ (355,986) | $ 64 | (356,028) | (22) | |
Beginning balance (in shares) at Sep. 30, 2019 | 65,847,455 | ||||
Beginning balance at Sep. 30, 2019 | (239,427) | $ 66 | (239,733) | 240 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 85,811 | 85,811 | |||
Other comprehensive income (loss) | (172) | (172) | |||
Stock options exercised (in shares) | 17,192 | ||||
Stock options exercised | 124 | 124 | |||
Restricted stock units issued, net of tax withholdings (in shares) | 7,935 | ||||
Restricted stock units issued, net of tax withholdings | (139) | (139) | |||
Repurchases of Common Stock (in shares) | (995,495) | ||||
Repurchases of Common Stock | (119,572) | $ (1) | (250) | (119,321) | |
Stock-based compensation expense | 730 | 730 | |||
Dividends Paid on Common Stock | (19,460) | (19,460) | |||
Ending balance (in shares) at Dec. 31, 2019 | 64,877,087 | ||||
Ending balance at Dec. 31, 2019 | (292,105) | $ 65 | 465 | (292,703) | 68 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 103,722 | 103,722 | |||
Other comprehensive income (loss) | (90) | (90) | |||
Stock options exercised (in shares) | 2,478 | ||||
Stock options exercised | 25 | 25 | |||
Restricted stock units issued, net of tax withholdings (in shares) | 16,374 | ||||
Restricted stock units issued, net of tax withholdings | (416) | (416) | |||
Repurchases of Common Stock (in shares) | (1,112,606) | ||||
Repurchases of Common Stock | (148,400) | $ (1) | (799) | (147,600) | |
Stock-based compensation expense | 725 | $ 725 | |||
Dividends Paid on Common Stock | $ (19,447) | (19,447) | |||
Ending balance (in shares) at Mar. 31, 2020 | 63,783,333 | 63,783,333 | |||
Ending balance at Mar. 31, 2020 | $ (355,986) | $ 64 | $ (356,028) | $ (22) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net income | $ 287,679 | $ 251,799 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,098 | 5,474 |
Impairment of cost based investment | 5,000 | 0 |
Amortization of debt issuance costs | 1,308 | 836 |
Non-cash lease expense | 1,085 | |
Premium amortization and (discount accretion), net | (56) | (555) |
Write off unamortized debt issuance costs | 105 | 0 |
Provision for inventory obsolescence | 5,823 | 2,995 |
Provision for loss on vendor deposits and purchase commitments | 1,587 | 2,333 |
Stock-based compensation | 2,144 | 2,306 |
Deferred Taxes | 126 | 0 |
Other, net | 102 | (399) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (17,839) | 14,888 |
Inventories | 53,293 | (180,749) |
Vendor deposits | 2,442 | 16,170 |
Prepaid income taxes | 4 | (3,533) |
Prepaid expenses and other assets | 3,399 | (4,576) |
Accounts payable | 22,715 | 77,362 |
Income taxes payable | (25,413) | 4,286 |
Deferred revenues | 1,093 | 8,687 |
Accrued and other liabilities | (14,365) | (39,070) |
Net cash provided by operating activities | 335,330 | 158,254 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment and other long-term assets | (28,786) | (7,701) |
Private equity investment | 0 | (5,000) |
Purchase of investments | (27,957) | (200,791) |
Proceeds from sale of investments | 103,848 | 69,670 |
Proceeds from maturities of investments | 13,272 | 29,831 |
Net cash provided by (used in) investing activities | 60,377 | (113,991) |
Cash Flows from Financing Activities: | ||
Debt Issuance Costs | (3,138) | 0 |
Repurchases of common stock | (681,205) | (328,078) |
Payment of common stock cash dividends | (59,576) | (53,770) |
Proceeds from exercise of stock options | 152 | 810 |
Tax withholdings related to net share settlements of restricted stock units | (1,056) | (892) |
Net cash (used in) financing activities | (556,073) | (400,680) |
Net (decrease) in cash and cash equivalents | (160,366) | (356,417) |
Cash and cash equivalents at beginning of period | 238,147 | 666,681 |
Cash and cash equivalents at end of period | 77,781 | 310,264 |
Supplemental Disclosure of Cash Flow Information: | ||
Income taxes paid, net of refunds | 74,465 | 31,284 |
Interest paid | 17,513 | 18,228 |
Non-Cash Investing and Financing Activities: | ||
Right-of-use asset recognized | 5,665 | |
Unpaid stock repurchases | 5,210 | 0 |
Unpaid property and equipment and other long-term assets | 19 | 120 |
Net unsettled investment purchases (sales and maturities) | 117 | |
Net unsettled investment purchases (sales and maturities) | (29) | |
Term loan facility | ||
Cash Flows from Financing Activities: | ||
Proceeds from borrowing | 37,500 | 0 |
Repayments of debt | (18,750) | (18,750) |
Revolving credit facility | ||
Cash Flows from Financing Activities: | ||
Proceeds from borrowing | 340,000 | 0 |
Repayments of debt | $ (170,000) | $ 0 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends per share (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.25 | $ 0.25 | $ 0.25 |
BUSINESS AND BASIS OF PRESENTAT
BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND BASIS OF PRESENTATION | BUSINESS AND BASIS OF PRESENTATION Business — Ubiquiti Inc. and its wholly owned subsidiaries (collectively, “Ubiquiti” or the “Company”) develop high performance networking technology for service providers, enterprises, and consumers globally. The Company operates on a fiscal year ending June 30. In this Quarterly Report, the fiscal year ending June 30, 2020 is referred to as “fiscal 2020” and the fiscal year ended June 30, 2019 is referred to as “fiscal 2019”. Basis of Presentation — The Company’s consolidated financial statements and accompanying notes 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. These consolidated financial statements reflect all adjustments, which are, in the opinion of the Company, of a normal and recurring nature and those necessary to state fairly the statements of financial position, results of operations and cash flows for the dates and periods presented. The June 30, 2019 balance sheet was derived from the audited financial statements as of that date. All significant intercompany transactions and balances have been eliminated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2019, included in its Annual Report on Form 10-K, as filed with the SEC on August 21, 2019 (the “Annual Report”). The results of operations for the three and nine months ended March 31, 2020 are not necessarily indicative of the results to be expected for any future periods. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2020 | |
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, 2019, included in the Annual Report on Form 10-K. Except as noted below, there have been no other changes to the Company’s significant accounting policies as discussed in the Annual Report. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Those estimated assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts and sales return reserves; inventory valuation and vendor deposits; accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; determinations of fair value for stock-based awards; estimate of incremental borrowing rate for determining the present value of future lease payments; and valuation of warranty accruals. We evaluate our estimates and assumptions based on historical experience and other assumptions that are believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. Leases At contract inception, the Company determines if an arrangement is a lease, or contains a lease, of an identified asset for which the Company has the right to obtain substantially all of the economic benefits from its use and the right to direct its use. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, while lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The implicit discount rate in the Company’s leases generally cannot readily be determined and therefore, the Company uses its incremental borrowing rate based on information available at lease commencement date in determining the present value of future payments. ROU assets are determined based upon the calculated lease liability, adjusted by unamortized initial direct costs, unamortized lease incentives received and cumulative deferred or prepaid lease payments. The Company has options to renew or terminate certain leases. These options are included in the determination of lease term when it is reasonably certain that the Company will exercise such options. The Company does not separate lease and non-lease components in determining ROU assets or lease liabilities for operating leases. Additionally, the Company does not recognize ROU assets or lease liabilities for leases with original terms or renewals of one year or less. Lease expense for our operating leases is recognized on a straight-line basis over the term of the lease. Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”) and in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”) (collectively referred to as “ASC 842”). This guidance requires the recognition of ROU assets and lease liabilities, arising from financing and operating leases, on the consolidated balance sheet, along with additional qualitative and quantitative disclosures. Companies are required to adopt this guidance using a modified retrospective approach and apply the transition provisions under the guidance at either 1) the later of the beginning of the earliest comparative period presented in the financial statements and the commencement date of the lease, or 2) the beginning of the period of adoption (i.e. on the effective date). Under the transition method using the second application date, a company initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the guidance on July 1, 2019, beginning of our fiscal year 2020, using the modified retrospective transition method and initially applied the transition provisions at July 1, 2019, which allowed us to continue to apply the legacy guidance in ASC 840 for periods prior to fiscal 2019. We elected the package of transition practical expedients, which among other things, allows us to keep the historical lease classifications and not have to reassess the lease classification for any existing leases as of the date of adoption. We also made the following accounting policy elections as allowed by ASC 842: • to apply the short-term lease exception, which allows us to keep leases with an initial term of twelve months or less off the balance sheet. • to account for each separate lease component of a contract and its associated non-lease components as a single-lease component for all our leases. As a result of the adoption of this standard, there was no adjustment to the opening balance of retained earnings as there was no cumulative effect adjustment at the date of adoption. Accordingly, the primary impact of adopting ASC 842 was the recognition of ROU assets and lease liabilities for operating leases of approximately $23.3 million and $24.0 million, respectively for all existing leases which had remaining obligations as of July 1, 2019. This included reclassifying deferred rent of $0.7 million from other current liabilities to a component of the ROU asset. ASC 842 did not have a material impact on our results of operations and comprehensive income and statement of cash flow. Recent Accounting Pronouncements Not Yet Effective Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier recognition of credit losses. ASU 2016-13 is effective for the Company’s fiscal year beginning July 1, 2020 on a modified retrospective basis. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures; however, we do not believe that the adoption of this standard will have a material impact on the Company's consolidated financial position or results of operations. Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), which amends the existing guidance relating to the accounting for income taxes. ASU 2019-12 is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company’s fiscal year beginning July 1, 2021. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
REVENUES
REVENUES | 9 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenue is primarily generated from the sale of hardware as well as the related implied post contract services (“PCS”). Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our products and PCS to our customers. Transfer of control to the customer for products generally occurs at the point in time when products have been shipped to our customer by third party carriers as this represents the point in time when the customer has a present obligation to pay and physical possession including title and risk of loss have been transferred to the customer. Revenue for PCS is recognized ratably over time over the estimated period for which implied PCS services will be delivered. Disaggregation of Revenue See Note 15 of Notes to Consolidated Financial Statements “Segment Information” for disaggregation of revenue by product category and geography. Contract Balances The timing of revenue recognition, billing and cash collections results in billed accounts receivable, deferred revenue primarily attributable to PCS and customer deposits on the Consolidated Balance Sheets. Accounts receivable are recognized in the period the Company’s right to the consideration is unconditional. Our contract liabilities consist of advance payments (Customer deposits) as well as billing in excess of revenue recognized primarily related to deferred revenue. We classify customer deposits as a current liability, and deferred revenue as a current or non-current liability based on the timing of when we expect to fulfill these remaining performance obligations. The current portion of deferred revenue is included in other current liabilities and the non-current portion is included in other long-term liabilities in our consolidated balance sheets. As of March 31, 2020 and June 30, 2019, the Company’s customer deposits were $1.0 million and $3.0 million, respectively. As of March 31, 2020, the Company’s deferred revenue, included in current liabilities and non-current liabilities, was $16.9 million and $6.1 million, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Mar. 31, 2020 | |
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. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 —Quoted prices in active markets for identical assets or liabilities; Level 2 —Inputs other than the quoted prices in active markets, that are observable either directly or indirectly; Level 3 —Unobservable inputs based on the Company’s own assumption. The Company records securities available-for-sale at fair value on a recurring basis. We classify our investments within Level 1 or 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high-quality investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities incorporate bond terms and conditions, current performance data, proprietary pricing models, real time quotes from contributing dealers, trade prices and other market data. The Company held no Level 3 financial instruments as of March 31, 2020 and June 30, 2019. The following tables summarize the Company’s financial instruments’ adjusted cost, gross unrealized gains and losses, and fair value by significant investment category as of March 31, 2020 and June 30, 2019 (in thousands): March 31, 2020 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents (1) Short-Term Investments Long-Term Investments Level 1 Money market funds $ 543 $ — $ — $ 543 $ 543 $ — $ — Subtotal $ 543 $ — $ — $ 543 $ 543 $ — $ — Level 2 Corporate securities 12,067 36 (58) 12,045 — 6,932 5,113 Subtotal $ 12,067 $ 36 $ (58) $ 12,045 $ — $ 6,932 $ 5,113 Total $ 12,610 $ 36 $ (58) $ 12,588 $ 543 $ 6,932 $ 5,113 (1) Cash and cash equivalents on the consolidated balance sheets includes securities that have a maturity of three months or less at the date of purchase. The carrying amount approximates fair value, primarily due to the short maturity of cash equivalent instruments. June 30, 2019 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents (1) Short-Term Investments Long-Term Investments Level 1 Money market funds $ 1,328 $ — $ — $ 1,328 $ 1,328 $ — $ — Subtotal $ 1,328 $ — $ — $ 1,328 $ 1,328 $ — $ — Level 2 Commercial paper $ 1,123 $ — $ — $ 1,123 $ 524 $ 599 $ — Corporate securities 83,568 372 (2) 83,938 — 57,377 26,561 U.S agency securities 4,702 4 — 4,706 — 3,712 994 US Government Bonds 12,189 20 (1) 12,208 — 8,178 4,030 Subtotal $ 101,582 $ 396 $ (3) $ 101,975 $ 524 $ 69,866 $ 31,585 Total $ 102,910 $ 396 $ (3) $ 103,303 $ 1,852 $ 69,866 $ 31,585 (1) Cash and cash equivalents on the consolidated balance sheets includes securities that have a maturity of three months or less at the date of purchase. The carrying amount approximates fair value, primarily due to the short maturity of cash equivalent instruments. During the three and nine months ended March 31, 2020 the Company reclassified realized net loss of $6.7 thousand and realized net gain of $378.0 thousand to earnings from accumulated other comprehensive income related to unrealized gains or losses. For the three and nine months ended March 31, 2019, the Company reclassified realized net gain of $25.5 thousand and $24.5 thousand to earnings from accumulated other comprehensive income related to unrealized gains or losses. During the three months ended March 31, 2020 and 2019, the Company had $0.2 million and $0.7 million, respectively, of interest income on our investment securities. During the nine months ended March 31, 2020 and 2019, the Company had $1.0 million and $2.2 million, respectively, of interest income on our investment securities. The following table represents the Company’s marketable securities that had been in continuous unrealized loss position for less than 12 months and for 12 months or greater as of March 31, 2020 and June 30, 2019 (in thousands): March 31, 2020 Continuous Unrealized Losses Less than 12 Months 12 Months or Greater Total Fair Value of marketable securities $ 7,175 $ — $ 7,175 Unrealized Loss $ (58) $ — $ (58) June 30, 2019 Continuous Unrealized Losses Less than 12 Months 12 Months or Greater Total Fair Value of marketable securities $ 8,072 $ — $ 8,072 Unrealized Loss $ (3) $ — $ (3) Based on evaluation of securities that have been in a continuous loss position, we did not recognize any other-than-temporary impairment charges during the three and nine months ended March 31, 2020 and 2019. The following table represents the adjusted costs and fair value of investment by contractual maturity as of March 31, 2020 (in thousands): Available-For-Sale Adjusted Cost Fair Value Due within 1 year and money market funds $ 7,479 $ 7,475 Due after 1 year through 5 years 5,131 5,113 Total $ 12,610 $ 12,588 For certain of the Company’s financial instruments, other than those presented in the disclosures above, including cash, accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate fair value due to their short maturities. As of March 31, 2020 and June 30, 2019, the Company had an outstanding loan associated with its credit facilities, which are carried at historical cost. The fair value of the Company’s debt disclosed below was estimated based on the current rates offered to the Company for debt with similar terms and remaining maturities and was a Level 2 measurement. As of March 31, 2020 and June 30, 2019, the fair value of the Company’s debt carried at historical cost was $686.3 million and $497.5 million, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Numerator: Net income $ 103,722 $ 88,300 $ 287,679 $ 251,799 Denominator: Weighted-average shares used in computing basic earnings per share 64,630 70,540 66,003 71,856 Add—dilutive potential common shares: Stock options 24 79 33 101 Restricted stock units 45 73 58 79 Weighted-average shares used in computing diluted net income per share 64,699 70,692 66,094 72,036 Net income per share of common stock: Basic $ 1.60 $ 1.25 $ 4.36 $ 3.50 Diluted $ 1.60 $ 1.25 $ 4.35 $ 3.50 The Company excludes potentially dilutive securities from its diluted net income per share calculation when their effect would be anti-dilutive to net income per share amounts. The following table summarizes the total potential shares of common stock that were excluded from the diluted per share calculation as including them would have been anti-dilutive for the period (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Restricted stock units 11 — 4 1 |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 9 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Inventories Inventories consisted of the following (in thousands): March 31, 2020 June 30, 2019 Finished goods $ 201,966 $ 260,895 Raw materials 3,278 3,386 Total $ 205,244 $ 264,281 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): March 31, 2020 June 30, 2019 Testing equipment $ 12,439 $ 10,258 Tooling equipment 13,136 10,624 Leasehold improvements 12,511 11,712 Computer and other equipment 7,503 7,264 Software 7,242 6,870 Furniture and fixtures 2,031 2,083 Corporate aircraft 64,224 — Property and Equipment, Gross 119,086 48,811 Less: Accumulated depreciation (40,038) (35,193) Property and Equipment, Net $ 79,048 $ 13,618 Other Long-term Assets Other long-term assets consisted of the following (in thousands): March 31, 2020 June 30, 2019 Deposits on aircraft (1) $ — $ 42,000 Hong Kong tax deposit (2) 19,960 19,960 Intangible assets, net (3) 3,095 3,257 Other long-term assets (4) 4,364 8,724 Total $ 27,419 $ 73,941 (1) The Company made $57 million in deposits related to the purchase of an airplane through December 31, 2019. During the third quarter of fiscal 2020, the Company made its final payment that was due upon transfer of title and receipt of the airplane. As a result, the Company reclassified the $57 million in deposits related to the purchase, to Property and Equipment, net on our Consolidated Balance Sheet. As a result of an independent security study, the Company’s independent directors approved the purchase of the airplane, which Mr. Pera will be expected to use for all business and personal air travel. (2) The Company made a total of $20.0 million of deposits with the Hong Kong Inland Revenue Department (“IRD”) in connection with extending the statute of limitation for income tax examinations currently under audit for the 2010-2012 tax years. Of that amount, $13.4 million was made during fiscal year 2019 and $6.6 million made during fiscal year 2018. We expect the $20 million of deposits made with the IRD to be refunded upon completion of the audit. See Note 14, to the consolidated financial statements, for additional details regarding this ongoing tax audit. (3) Accumulated amortization was $1.8 million and $1.6 million as of March 31, 2020 and June 30, 2019, respectively. (4) During fiscal 2019, the Company entered into a $5 million strategic cost method investment where the Company acquired preferred stock. The shares were recorded at cost in Other Long-Term Assets on our Consolidated Balance Sheet. During the second quarter fiscal 2020, the Company recorded an impairment charge of $5 million. This unrealized loss is reflected in Interest expense and other, net on the Consolidated Statement of Operations and Comprehensive Income. Other Current Liabilities Other current liabilities consisted of the following (in thousands): March 31, 2020 June 30, 2019 Deferred revenue — short-term $ 16,872 15,338 Accrued expenses 10,807 14,203 Lease liability— current 7,314 — Warranty accrual 4,544 4,518 Accrued compensation and benefits 3,184 3,866 Customer deposits 1,048 2,982 Reserve for sales returns 964 783 Other payables 39,563 42,543 Total $ 84,296 $ 84,233 Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): March 31, 2020 June 30, 2019 Deferred Revenue — long-term $ 6,085 $ 6,525 Other long-term liabilities 58 1,915 Total $ 6,143 $ 8,440 |
ACCRUED WARRANTY
ACCRUED WARRANTY | 9 Months Ended |
Mar. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
ACCRUED WARRANTY | ACCRUED WARRANTY The Company offers warranties on certain products, generally 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 statements of operations and comprehensive income within cost of revenues. The warranties are typically in effect for twelve months from the distributor’s purchase date of the product. The Company assesses the adequacy of its accrued warranty liabilities and adjusts the amounts as necessary based on historical experience factors and changes in future estimates. Historical factors include product failure rates, material usage and service delivery costs 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): Nine Months Ended March 31, 2020 2019 Beginning balance $ 4,518 $ 3,840 Accruals for warranties issued during the period 5,828 5,748 Changes in liability for pre-existing warranties during the period 408 (34) Settlements made during the period (6,210) (5,214) Ending balance $ 4,544 $ 4,340 |
DEBT
DEBT | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT On September 9, 2019, Ubiquiti Inc., as borrower, Ubiquiti International Holding Company Limited (the “Cayman Borrower”), as a released party, and certain subsidiaries entered into the Third Amendment (the “Third Amendment”) to the Second Amended & Restated Credit Agreement, dated January 17, 2018 (as amended by the First Amendment, dated as of June 19, 2018, and the Second Amendment dated as of March 15, 2019, the “Second A&R Credit Agreement”, and as further amended by the Third Amendment, the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), the other financial institutions named as lenders therein, and Wells Fargo as administrative agent and collateral agent for the lenders, that provides for a $700 million senior secured revolving credit facility (the “Revolving Facility”) and a $500 million senior secured term loan facility (the “Term Facility”, together with the Revolving Facility, the “Facilities”), with an option to request increases in the amounts of such credit facilities by up to an additional $400 million in the aggregate. The maturity date for the credit facility remains at January 17, 2023. In addition, the Third Amendment (a) released the Cayman Borrower from its obligations as a borrower under the Second A&R Credit Agreement, (b) released all of the foreign subsidiaries that were previously party to the Second A&R Credit Agreement as guarantors of the obligations of the released Cayman Borrower and (c) made conforming amendments to the provisions of the Second A&R Credit Agreement and other loan documents to reflect the release from the Second A&R Credit Agreement. The Third Amendment also modified certain definitions and certain covenants relating to indebtedness and investments. The Third Amendment replaced the Company’s existing $400 million senior secured revolving facility and $500 million senior secured term loan facility under the Second A&R Credit Agreement. At the closing of the Third Amendment, the Term Facility was fully drawn, of which $462.5 million and $0.5 million was used to repay the prior term facility under the Second A&R Credit Agreement for principal and interest, respectively. Additionally, $120.0 million was drawn under the Revolving Facility. The Company incurred $3.1 million of debt issuance costs which are capitalized and amortized as interest expense over the life of the Facilities. Our Debt consisted of the following (in thousands): March 31, 2020 June 30, 2019 Term Loan - short term $ 25,000 $ 31,250 Debt issuance costs, net (933) (575) Total Debt - short term 24,067 30,675 Term Loan - long term 456,250 431,250 Revolver - long term 205,000 35,000 Debt issuance costs, net (1,803) (1,550) Total Debt - long term $ 659,447 $ 464,700 The Revolving Facility includes a sub-limit of $10.0 million for letters of credit and a sub-limit of $25.0 million for swingline loans. The Facilities are available for working capital and general corporate purposes that comply with the terms of the Credit Agreement, including to finance the repurchase of the Company’s common stock or to make dividends to the holders of the Company’s common stock. Under the Credit Agreement, revolving loans and swingline loans may be borrowed, repaid and reborrowed until January 17, 2023, at which time all amounts borrowed must be repaid. The term loan is payable in quarterly installments of 1.25% of the original principal amount of the term loan, in each case plus accrued and unpaid interest. Revolving, swingline and term loans may be prepaid at any time without penalty. Revolving and term loans bear interest, at the Company’s option, at either (i) a floating rate per annum equal to the base rate plus a margin of between 0.50% and 1.25%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter or (ii) a floating per annum rate equal to the applicable LIBOR rate (or replacement rate) for a specified period, plus a margin of between 1.50% and 2.25%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter. Swingline loans bear interest at a floating rate per annum equal to the base rate plus a margin of between 0.50% and 1.25%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter. Base rate is defined as the greatest of (A) Wells Fargo’s prime rate, (B) the federal funds rate plus 0.50% or (C) the applicable LIBOR rate (or replacement rate) for a period of one month plus 1.00%. A default interest rate shall apply on all obligations during certain events of default under the Credit Agreement at a rate per annum equal to 2.00% above the applicable interest rate. The Company will pay to each lender a facility fee on a quarterly basis based on the unused amount of each lender’s commitment to make revolving loans, of between 0.20% and 0.35%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter. The Company will also pay to the applicable lenders on a quarterly basis certain fees based on the daily amount available to be drawn under each outstanding letter of credit, including aggregate letter of credit commissions of between 1.50% and 2.25%, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter, and issuance fees of 0.125% per annum. The Company is also obligated to pay Wells Fargo, as agent, fees customary for a credit facility of this size and type. The Credit Agreement requires the Company to maintain during the term of the Facilities (i) a maximum consolidated total leverage ratio of 3.25 to 1.00 and (ii) a minimum consolidated interest coverage ratio of 3.5 to 1.00. In addition, the Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the ability of the Company and its subsidiaries to, among other things, grant liens or enter into agreements restricting their ability to grant liens on property, enter into mergers, dispose of assets, change their accounting or reporting policies, change their business and incur indebtedness, in each case subject to customary exceptions for a credit facility of this size and type. The Credit Agreement includes customary events of default that include, among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments, change of control and certain ERISA events. The occurrence of an event of default could result in the acceleration of the obligations under the Credit Agreement. The obligations of Ubiquiti Inc. and certain domestic subsidiaries, if any, under the Credit Agreement are required to be guaranteed by such domestic subsidiaries (the “Domestic Guarantors”) and are collateralized by substantially all assets (excluding intellectual property) of Ubiquiti Inc. and the Domestic Guarantors. Third Amendment As of March 31, 2020, $481.3 million was outstanding on the Term Facility and $205.0 million on the Revolving Facility, leaving $495.0 million available on the Revolving Facility. Term Facility: Under the Credit Agreement, during the three months ended March 31, 2020, the Company made aggregate payments of $10.5 million under the Term Facility, of which $6.3 million was repayment of principal and $4.2 million was payment of interest. During the nine months ended March 31, 2020, the Company made aggregate payments of $31.9 million under the Term Facility, of which $18.8 million was repayment of principal and $13.2 million was payment of interest. Revolving Facility: Under the Credit Agreement, during the three months ended March 31, 2020, the Company made aggregate payments of $51.8 million under the Revolving Facility, of which $50.0 million was repayment of principal and $1.8 million was payment of interest. During the nine months ended March 31, 2020, the Company made aggregate payments of $174.4 million under the Revolving Facility, of which $170.0 million was repayment of principal and $4.4 million was payment of interest. As of March 31, 2020, the interest rate on the term loan was 2.74%. As of April 30, 2020, the most currently available reset date, the Term Facility has an interest rate of 2.15%. The table below shows the respective interest rates as of March 31, 2020, in addition to the interest rate reset dates as available for each revolver draw. Debt Payment Obligations Interest Rate as of March 31, 2020 Rate Reset Date Reset Rate $120 Million Revolver 2.55 % April 14, 2020 2.58 % $50 Million Revolver 2.67 % April 23, 2020 2.37 % $25 Million Revolver 2.36 % April 20, 2020 2.47 % $10 Million Revolver 2.45 % April 16, 2020 2.54 % The following table summarizes our estimated debt and interest payment obligations as of March 31, 2020, for the remainder of fiscal 2020 and future fiscal years (in thousands): 2020 (remainder) 2021 2022 2023 2024 Thereafter Total Debt payment obligations $ 6,250 $ 25,000 $ 25,000 $ 630,000 $ — $ — $ 686,250 Interest and other payments on debt payment obligations (1) 4,967 19,490 18,795 10,051 — — 53,303 Total $ 11,217 $ 44,490 $ 43,795 $ 640,051 $ — $ — $ 739,553 (1) - Interest payments are calculated based on the applicable rates and payment dates as of March 31, 2020. Although our interest rates on our debt obligations may vary, we have assumed the most recent available interest rates for all periods presented. |
LEASES
LEASES | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES On July 1, 2019, we adopted the new accounting standard ASC 842, Leases, using the modified retrospective method. We elected this adoption date as our date of initial application. As a result, we have not updated financial information related to, nor have we provided disclosures required under ASC 842 for, periods prior to July 1, 2019. The primary changes to our policies relate to recognizing most leases on our consolidated balance sheet as liabilities with corresponding right-of-use (“ROU”) assets. The Company has entered into agreements under which we lease various real estate spaces in North America, Europe and Asia Pacific, under non-cancellable leases that expire on various dates through fiscal 2029. Some of our leases include options to extend the term of such leases for a period from 12 months to 60 months, and/or have options to early terminate the lease. As of March 31, 2020, we did include such options in determining the lease terms for certain of our leases because when we were reasonably certain that we would exercise those options. Most of our leases require us to pay certain operating expenses in addition to base rent, such as taxes, insurance and maintenance costs. Practical Expedients The modified retrospective approach included a package of optional practical expedient that we elected to apply. Among other things, these expedients permitted us not to reassess prior conclusions regarding lease identification, lease classification and initial direct costs under ASC 842. The Company does not separate lease and non-lease components in determining ROU assets or lease liabilities for real estate leases. Additionally, the Company does not recognize ROU assets or lease liabilities for leases with original terms or renewals of one year or less. The following table summarizes our lease costs for the three and nine months ended March 31, 2020 (in thousands): Financial Statement Classification Three Months Ended March 31, 2020 Nine Months Ended March 31, 2020 Operating lease costs: Fixed lease costs Operating expenses $ 1,568 $ 4,415 Fixed lease costs Cost of revenues 515 1,553 Variable lease costs Operating expenses 81 256 Variable lease costs Cost of revenues 107 309 Total lease costs $ 2,271 $ 6,533 The operating lease costs in the table above include costs for long-term and short-term leases. Total short-term costs for the nine months ended March 31, 2020 was $0.2 million. Variable lease costs primarily include maintenance, utilities and operating expenses that are incremental to the fixed base rent payments and are excluded from the calculation of operating lease liabilities and ROU assets. For the three and nine months ended March 31, 2020, cash paid for amounts associated with our operating lease liabilities were approximately $2.3 million and $6.6 million which were classified as operating activities in the consolidated statement of cash flows. The following table shows our undiscounted future fixed payment obligations under our recognized operating leases and a reconciliation to the operating lease liabilities as of March 31, 2020: Remainder of Fiscal 2020 $ 2,080 Fiscal 2021 7,165 Fiscal 2022 3,826 Fiscal 2023 3,271 Fiscal 2024 3,124 Thereafter 7,960 Total future fixed operating lease payments $ 27,426 Less: Imputed interest $ 2,882 Total operating lease liabilities $ 24,544 Weighted-average remaining lease term - operating leases 6 years Weighted-average discount rate - operating leases 4.0 % Due to our election to apply the effective date method of adoption for ASC 842, we have included the following additional disclosure under our historical lease accounting under ASC 840. As of June 30, 2019, future minimum lease payments under non-cancelable operating lease were as follows (in thousands): Fiscal 2020 $ 7,395 Fiscal 2021 5,509 Fiscal 2022 2,639 Fiscal 2023 2,205 Fiscal 2024 1,982 Thereafter 7,116 Total future minimum annual payments $ 26,846 Fiscal 2019 rent expense under operating leases $7.8 million |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases See Note 9- Leases for future minimum lease payments under non-cancelable operating leases as of March 31, 2020 and June 30, 2019. Purchase Obligations We subcontract with third parties to manufacture our products. During the normal course of business, our contract manufacturers procure components and manufacture products based upon orders placed by us. If we cancel all or part of the orders, we may still be liable to the contract manufacturers for the cost of the components purchased by the subcontractors to manufacture our products. We periodically review the potential liability, and as of March 31, 2020, we have recorded a purchase obligation liability of $3.0 million related to component purchase commitments. There have been no other significant liabilities for cancellations recorded as of March 31, 2020. Our consolidated financial position and results of operations could be negatively impacted if we were required to compensate the contract manufacturers for any unrecorded liabilities incurred. We may be subject to additional purchase obligations for supply agreements and components ordered by our contract manufacturers based on manufacturing forecasts we provide them each month. We estimate the amount of these additional purchase obligation to range from $139.0 million to $311.0 million as of March 31, 2020, depending upon the timing of orders placed for these components by our manufacturers. Other Obligations As of March 31, 2020, the Company has other obligations of $17.0 million which consisted primarily of commitments related to raw materials and research and development projects. 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 Company 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. The Company is not currently aware of any pending or threatened litigation that would have a material adverse effect on the Company’s financial statements. Vivato/XR On April 19, 2017, XR Communications, LLC, d/b/a Vivato Technologies (“Vivato”), filed a complaint against the Company in the United States District Court for the Central District of California, alleging that at least one of the Company’s products infringes United States Patent Numbers 7,062,296 (the “’296 Patent”), 7,729,728 (the “’728 Patent”), and 6,611,231 (the “’231 Patent and, collectively, the “Patents-in-Suit”). The ‘296 and ‘728 Patents are entitled “Forced Beam Switching in Wireless Communication Systems Having Smart Antennas.” The ‘231 Patent is entitled “Wireless Packet Switched Communications Systems and Networks Using Adaptively Steered Antenna Arrays.” Vivato amended its complaint on June 23, 2017 and again on July 6, 2017. According to the complaint, the products accused of infringing the Patents-in-Suit include Wi-Fi access points and routers supporting MU-MIMO, including without limitation access points and routers utilizing the IEEE 802.11ac-2013 standard. Vivato has also filed nine other lawsuits asserting the same patents against other defendants in the Central District of California. On October 2, 2017, the ten cases were consolidated into a single action for all purposes except trial. On March 19, 2018, the Company and the remaining defendants in the consolidated action moved to stay the case (the “Motion to Stay”) pending completion of certain inter partes review proceedings before the Patent Trial and Appeal Board. On April 9, 2018, the Court held a hearing on the Motion to Stay, and, on April 11, 2018, the Court granted the motion. On February 11, 2019, the Court maintained the stay pending a status conference scheduled for December 2, 2019. During the status conference on December 2, 2019, the Court rejected a request from Vivato to lift the stay in part. The Court maintained the stay in full pending a further status conference, which was originally scheduled for March 17, 2020 and subsequently rescheduled for June 8, 2020. The Company plans to vigorously defend itself against these claims; however, there can be no assurance that the Company will prevail in the lawsuit. The Company cannot currently estimate the possible loss or range of losses, if any, that it may experience in connection with this litigation. SEC Subpoena As previously disclosed on the Form 8-K filed by the Company on February 20, 2018, on February 13, 2018, the Securities and Exchange Commission (the “SEC”) issued subpoenas to the Company and certain of the Company’s officers requesting documents and information relating to a range of topics, including metrics relating to the Ubiquiti Community, accounting practices, financial information, auditors, international trade practices, and relationships with distributors and various other third parties. The Company has responded to the requests and intends to cooperate fully with the SEC. As the SEC’s investigation is ongoing, we cannot currently predict the timing or the outcome of such investigation. Shareholder Class Actions On February 21, 2018, a purported class action, captioned Paul Vanderheiden v. Ubiquiti Networks, Inc. et al ., No. 18-cv-01620 (the “ Vanderheiden Action”), was filed in the United States District Court for the Southern District of New York against the Company and certain of its current and former officers. The Vanderheiden Action complaint alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making false and/or misleading statements, including purported overstatements of the Company’s online community user engagement metrics and accounts receivable. On February 28, 2018 and March 13, 2018, substantially similar purported class actions, captioned Xiya Qian v. Ubiquiti Networks, Inc. et al ., No. 18-cv-01841 (the “ Qian Action”) and J ohn Kho v. Ubiquiti Networks, Inc. et al ., No. 18-cv-02242 (the “ Kho Action”, together with the Vanderheiden Action and the Qian Action, the “Class Actions”), respectively, were filed in the United States District Court for the Southern District of New York. On October 24, 2018, the Court consolidated the Class Actions and appointed lead plaintiff and lead counsel (the “Consolidated Class Action”). Plaintiff filed its Consolidated Amended Complaint on December 24, 2018. On March 21, 2019, Defendants informed the Court that they were prepared to move to dismiss the Consolidated Amended Complaint but that, consistent with the Court’s individual practices, they would refrain from filing that motion pending receipt of further guidance from the Court. On October 16, 2019, the parties in the Consolidated Class Action reached an agreement in principle to settle the Consolidated Class Action (the “Settlement”). The Court granted final approval of the Settlement on March 27, 2020, dismissing the Consolidated Class Action with prejudice. The Settlement, which included an award of attorneys’ fees to Plaintiffs’ counsel, was fully funded by certain of the Company’s insurers. Shareholder Derivative Actions & Section 220 Demand On March 13, 2018, Anthony Franchi filed a shareholder derivative complaint in the Superior Court of the State of California, County of San Mateo, against the Company’s directors, and certain of its officers (the “ Franchi Action”). The Company was named as a nominal defendant. The complaint asserted claims against all individual defendants for breach of fiduciary duty for disseminating false and misleading information, failure to maintain internal controls, and unjust enrichment. Additional claims were asserted against Robert Pera for breach of fiduciary duty for insider selling and misappropriation of information, as well as for violation of California Corporations Code § 25402. The allegations in support of these claims were similar to the allegations made in the Consolidated Class Actions. Plaintiff sought a judgment on behalf of the Company for all damages incurred or that would be incurred as a result of the alleged breaches of fiduciary duty by the individual defendants, a judgment ordering disgorgement of all profits, benefits, and other compensation obtained by the individual defendants, a judgment directing the Company to reform its governance and internal procedures, and attorneys’ fees and other costs. The Company moved for a stay of the derivative action pending resolution of the Consolidated Class Action. The court denied the Company’s motion, but stayed discovery until the resolution of any motion to dismiss the Consolidated Class Action. On August 27, 2018, the individual defendants and nominal defendant Ubiquiti demurred to the Franchi Action. Plaintiff filed an omnibus response on October 5, 2018 and defendants filed replies on October 22, 2018. The California Superior Court did not render a decision on the demurrers. On June 4, 2018, Ubiquiti stockholder Richard Gericke served a demand to inspect the Company’s books and records pursuant to Section 220 of the Delaware General Corporation Law. The Company commenced its production of documents responding to Mr. Gericke’s requests for records on August 22, 2018 and completed its production on October 10, 2018. In addition to serving his Section 220 demand, Mr. Gericke sought leave to intervene in the Franchi Action. Mr. Gericke’s motion was denied without prejudice on November 30, 2018. On March 11, 2019, Mr. Gericke filed a shareholder derivative complaint in the Court of Chancery for the State of Delaware against the Company’s directors and certain of its officers (the “ Gericke Action”, and together with the Franchi Action, the “Derivative Actions”). The Company was named as a nominal defendant. The complaint asserted claims against all defendants for breach of fiduciary duty, waste of corporate assets, and unjust enrichment. The allegations in support of these claims were similar to the allegations made in the Franchi Action. Plaintiff sought a judgment on behalf of the Company for the damages sustained by the individual defendants’ alleged wrongdoing, an award to the Company of restitution from the individual defendants, an award to Plaintiff of the costs and disbursements of the action, including attorneys’ fees, and an order directing the Company to take action to reform and improve corporate governance and internal procedures. On October 14, 2019, the parties entered into an agreement in principle to settle the Derivative Actions pursuant to which the Company agreed to adopt certain corporate governance modifications and commitments (the “Derivative Settlement”). On November 1, 2019, the Court of Chancery entered an order staying the Gericke Action. On November 8, 2019, the California Superior Court entered an order staying the Franchi Action pending the Court’s review and approval of the Derivative Settlement. On March 10, 2020, the California Superior Court granted final approval of the Derivative Settlement, dismissing the Franchi |
COMMON STOCK AND TREASURY STOCK
COMMON STOCK AND TREASURY STOCK | 9 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
COMMON STOCK AND TREASURY STOCK | COMMON STOCK AND TREASURY STOCK Common Stock Repurchases On November 6, 2019, the Company’s Board of Directors approved a $200 million stock repurchase program (the “2019 November Program”). Under the 2019 November Program, the Company is authorized to repurchase up to $200 million of common stock. The 2019 November Program expires on December 31, 2021. During the three months ended March 31, 2020, the Company repurchased and retired 1,112,606 shares of common stock at an average price per share of $133.38 for an aggregate amount of $148.4 million. During the nine months ended March 31, 2020, the Company repurchased and retired 5,743,635 shares of common stock at an average price per share of $119.12 for an aggregate amount of $684.2 million. Both the three and nine months ended March 31, 2020 included unpaid stock repurchases of $5.2 million related to repurchases executed on or prior to March 31, 2020 for trades settled in the fourth quarter of fiscal 2020. As of March 31, 2020, the Company had $51.6 million available for share repurchases under the 2019 November Program. The following table provides information with respect to the Company’s share repurchase programs and the activity under the available share repurchase programs during the nine months ended March 31, 2020 (in millions, except share and per share amounts): Date of Publicly Announced Program Amount of Publicly Announced Program Total Number of Shares Purchased as Part of Publicly Announced Programs Average Price Paid per Share Total Aggregate Amount Paid Period of Purchases Estimated Remaining Balance Available for Share Repurchases under the Program Expiration date of Program November 9, 2018 $200 million 293,709 $ 121.9 $ 35.8 July 8, 2019 - August 12, 2019 $ — 12/31/2019 August 9, 2019 $500 million 4,337,320 $ 115.3 $ 500.0 August 12, 2019 - October 28, 2019 $ — 12/31/2020 November 8, 2019 $200 million 1,112,606 $ 133.4 $ 148.4 February 7, 2020 - March 31, 2020 $ 51.6 million 12/31/2021 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOMEThe Company’s comprehensive income consists of two components, net income and other comprehensive income (loss). Accumulated other comprehensive income reflects unrealized gains and losses that are recorded as an element of stockholders’ equity but have been excluded from net income pursuant to GAAP. As of March 31, 2020 and June 30, 2019, the Company’s accumulated other comprehensive income includes $22.2 thousand net unrealized loss and $0.4 million net unrealized gains respectively, from our available-for-sale securities. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [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 March 31, 2020, the Company had 9,988,734 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 Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Cost of revenues $ 29 $ 26 $ 94 $ 320 Research and development 499 555 1,507 1,519 Sales, general and administrative 197 171 543 467 $ 725 $ 752 $ 2,144 $ 2,306 Stock Options The following is a summary of option activity for the Company’s stock incentive plans for the nine months ended March 31, 2020: Common Stock Options Outstanding Number Weighted Weighted Aggregate Balance, June 30, 2019 44,847 $ 9.50 2.78 $ 5,472 Exercised (20,348) $ 7.52 Balance, March 31, 2020 24,499 $ 11.14 2.42 $ 3,196 Vested as of March 31, 2020 24,499 $ 11.14 2.42 $ 3,196 Vested and exercisable as of March 31, 2020 24,499 $ 11.14 2.42 $ 3,196 During the three months ended March 31, 2020 and 2019, the aggregate intrinsic value of options exercised under the Company’s stock incentive plans was $0.3 million and $6.8 million, respectively, as determined as of the date of option exercise. During the nine months ended March 31, 2020 and 2019, the aggregate intrinsic value of options exercised under the Company’s stock incentive plans was $3.5 million and $10.0 million, respectively, as determined as of the date of options exercise. As of March 31, 2020, the Company had no unrecognized compensation costs related to stock options. The Company did not grant any employee stock options during the three and nine months ended March 31, 2020 and 2019. 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 Per Share Non-vested RSUs, June 30, 2019 112,786 $ 73.24 RSUs granted 20,333 $ 157.68 RSUs vested (40,874) $ 62.31 RSUs canceled (6,887) $ 80.02 Non-vested RSUs, March 31, 2020 85,358 $ 98.04 The intrinsic value of RSUs vested in the three months ended March 31, 2020 and 2019 was $3.3 million and $2.3 million, respectively. The intrinsic value of RSUs vested in the nine months ended March 31, 2020 and 2019 was $6.7 million and $4.4 million, respectively. The total intrinsic value of all outstanding RSUs was $12.1 million as of March 31, 2020. As of March 31, 2020, there were unrecognized compensation costs related to RSUs of $6.2 million which the Company expects to recognize over a weighted average period of 3.3 years. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded tax provisions of $17.0 million and $49.1 million for the three and nine months ended March 31, 2020 as compared to $10.4 million and $32.4 million for the three and nine months ended March 31, 2019. The increase is primarily related to an increase in profit before tax for the nine months ended March 31, 2020. The Company’s estimated fiscal year 2020 effective tax rate, before discrete items, 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, partially offset by additional US tax related to our non-U.S. operations under Global Intangible Low-Taxes Income (“GILTI”) provision. As of March 31, 2020, the Company had approximately $32.4 million of unrecognized tax benefits, substantially all of which would, if recognized, affect its tax expense. During the three months ended March 31, 2020, the Company recorded an increase of its unrecognized tax benefits of $1.2 million. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Operations and Comprehensive Income. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. As of March 31, 2020, the Company had $5.0 million accrued interest related to uncertain tax matters. The Company, or one of its subsidiaries, files income tax returns in the United States federal jurisdiction, and various state, local, and foreign jurisdictions and is currently undergoing income tax examinations by the U.S. Internal Revenue Service and the Hong Kong Inland Revenue Department (“IRD”). All material consolidated federal, state and local income tax matters have been concluded for years through 2014. The majority of the Company’s foreign jurisdictions have been concluded through 2014, with the exception of Hong Kong which has been reviewed through 2009 and is currently under audit for the 2010-2016 tax years. During fiscal years 2019 and 2018, the Company made a total of $20 million of deposits with the Hong Kong Inland Revenue Department in connection with extending the statute of limitation for income tax examinations currently under audit for 2010-2013 tax years. The refundable deposits are included within Prepaid expenses and other current assets on our Consolidated Balance Sheets. In addition, the Company recently received a protective claim of approximately $23.3 million relating to the 2013-2014 year of assessment. The Company has filed a formal protest of this claim and has requested that the assessment be held in abeyance pending conclusion of the examination . The Company continues to believe that its tax positions filed with IRD are more likely than not to be sustained based on their technical merits and therefore no reserve has been provided for this tax uncertainty and we expect the $20 million of deposits made with IRD to be refunded upon completion of the audit. However, there can be no assurance that this matter will be resolved in the Company’s favor and therefore it’s possible that an adverse outcome of the matter could have a material effect on the Company’s results of operations and financial condition. In July 2018, the Company received a draft Notice of Proposed Adjustment (“Draft NOPA”) from the Internal Revenue Service (IRS) proposing an adjustment to income for the fiscal 2015 and 2016 tax years based on its interpretation of certain obligations of the non-U.S. entities under the credit facility. This Draft NOPA was superseded by an Acknowledgement of Facts (“AOF”) issued to the Company by the IRS on January 17, 2020. The IRS in its AOF continues to propose an adjustment to the Company’s income for its fiscal 2015 and 2016 tax years based on the IRS’ interpretation of certain obligations of the Company’s foreign subsidiaries under the Company’s credit facilities. The incremental tax liability associated with the income adjustment proposed in the AOF would be approximately $50 million, excluding potential interest and penalties, after adjusting for the impact of an adjustment on the amount of transition tax payable in future years by the Company. The Company strongly believes the position of the IRS with regard to this matter is inconsistent with the provisions of the credit facilities and applicable tax laws. However, there can be no assurance that this matter will be resolved in the Company’s favor. Regardless of whether the matter is resolved in the Company’s favor, the final resolution of this matter could be expensive and time-consuming to defend and/or settle. As the Company believes that the tax originally paid in fiscal 2015 and 2016 is correct, it has not provided an additional reserve for this tax uncertainty. However, there is still a possibility that an adverse outcome of the matter could have a material effect on the Company’s results of operations and financial condition. |
SEGMENT INFORMATION, REVENUES B
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS | SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS Management has determined that the Company operates as one reportable and operating segment as it only reports financial information on an aggregate and consolidated basis to its Chief Executive Officer, who is the Company’s Chief Operating Decision Maker. Furthermore, the Company does not organize or report its costs on a segment basis. The Company presents its revenues by product type in two primary categories: Service Provider Technology and Enterprise Technology. • Service Provider Technology includes our airMAX, EdgeMAX, UFiber, and airFiber platforms, as well as embedded radio products and other 802.11 standard products including base stations, radios, backhaul equipment and CPE. Additionally, Service Provider Technology includes antennas and other products primarily in the 0.9 to 6.0 GHz spectrum and miscellaneous products such as mounting brackets, cables and power over Ethernet adapters. • Enterprise Technology includes our UniFi platform, including UniFi enterprise Wi-Fi, UniFi Protect, UniFi switching and routing solutions and our AmpliFi platform. Revenues by product type are as follows (in thousands, except percentages): Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Service Provider Technology $ 106,439 32 % $ 109,379 38 % $ 320,081 33 % $ 327,558 37 % Enterprise Technology 230,978 68 % 175,532 62 % 648,897 67 % 547,534 63 % Total revenues $ 337,417 100 % $ 284,911 100 % $ 968,978 100 % $ 875,092 100 % Revenues by geography based on customer’s ship-to destinations were as follows (in thousands, except percentages): Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 North America (1) $ 133,917 40 % $ 109,135 38 % $ 411,834 43 % $ 349,740 40 % Europe, the Middle East and Africa ("EMEA") 159,436 47 % 125,662 44 % 405,883 42 % 384,985 44 % Asia Pacific 26,232 8 % 27,138 10 % 88,753 9 % 82,308 9 % South America 17,832 5 % 22,976 8 % 62,508 6 % 58,059 7 % Total revenues $ 337,417 100 % $ 284,911 100 % $ 968,978 100 % $ 875,092 100 % (1) Revenue for the United States was $125.4 million and $105.1 million for the three months ended March 31, 2020 and 2019, respectively. Revenue for the United States was $389.0 million and $331.9 million for the nine months ended March 31, 2020 and 2019, 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 March 31, Nine Months Ended March 31, March 31, June 30, 2020 2019 2020 2019 2020 2019 Customer A * * * * * 13% Customer B 10% * 12% 10% 10% 20% |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS | 9 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS | RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS Aircraft Lease Agreement On November 13, 2013, the Company entered into an aircraft lease agreement (the “Aircraft Lease Agreement”) with RJP Manageco LLC (the “Lessor”), a limited liability company owned by the Company’s CEO, Robert J. Pera. Pursuant to the Aircraft Lease Agreement, the Company may lease an aircraft owned by the Lessor for Company business purposes. Under the Aircraft Lease Agreement, the aircraft may be leased at a rate of $5,000 per flight hour. This hourly rate does not include the cost of flight crew or on-board services, which the Company purchases from a third-party provider. The Company recognized a total of approximately $0.4 million and $1.3 million in expenses pursuant to the Aircraft Lease Agreement during the three and nine months ended March 31, 2020. The Company recognized a total of approximately $0.4 million and $1.3 million in expenses pursuant to the Aircraft Lease Agreement during the three and nine months ended March 31, 2019, respectively. All expenses pursuant to the Aircraft Lease Agreement have been included in the Company’s sales, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Stock Repurchases On May 5, 2020, the Company’s Board of Directors approved a new $500 million stock repurchase program (the “2020 May Program”). Under the 2020 May Program, the Company is authorized to repurchase up to $500 million of common stock. The 2020 May Program expires on March 31, 2022. Subsequent to March 31, 2020, the Company repurchased and retired 99,165 shares of common stock at an average price of $138.25 for an aggregate amount of $13.7 million. As of May 7, 2020, the Company had $37.9 million available under the 2019 November Program. Dividends On May 5, 2020, the Company’s Board of Directors approved a quarterly cash dividend of $0.30 per share payable on May 26, 2020 to shareholders of record at the close of business on May 18, 2020. Any future dividends will be subject to the approval of the Company’s Board of Directors. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The Company’s consolidated financial statements and accompanying notes 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. These consolidated financial statements reflect all adjustments, which are, in the opinion of the Company, of a normal and recurring nature and those necessary to state fairly the statements of financial position, results of operations and cash flows for the dates and periods presented. The June 30, 2019 balance sheet was derived from the audited financial statements as of that date. All significant intercompany transactions and balances have been eliminated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2019, included in its Annual Report on Form 10-K, as filed with the SEC on August 21, 2019 (the “Annual Report”). The results of operations for the three and nine months ended March 31, 2020 are not necessarily indicative of the results to be expected for any future periods. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Those estimated assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts and sales return reserves; inventory valuation and vendor deposits; accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; determinations of fair value for stock-based awards; estimate of incremental borrowing rate for determining the present value of future lease payments; and valuation of warranty accruals. We evaluate our estimates and assumptions based on historical experience and other assumptions that are believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. |
Leases | LeasesAt contract inception, the Company determines if an arrangement is a lease, or contains a lease, of an identified asset for which the Company has the right to obtain substantially all of the economic benefits from its use and the right to direct its use. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, while lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The implicit discount rate in the Company’s leases generally cannot readily be determined and therefore, the Company uses its incremental borrowing rate based on information available at lease commencement date in determining the present value of future payments. ROU assets are determined based upon the calculated lease liability, adjusted by unamortized initial direct costs, unamortized lease incentives received and cumulative deferred or prepaid lease payments. The Company has options to renew or terminate certain leases. These options are included in the determination of lease term when it is reasonably certain that the Company will exercise such options. The Company does not separate lease and non-lease components in determining ROU assets or lease liabilities for operating leases. Additionally, the Company does not recognize ROU assets or lease liabilities for leases with original terms or renewals of one year or less. Lease expense for our operating leases is recognized on a straight-line basis over the term of the lease. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”) and in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”) (collectively referred to as “ASC 842”). This guidance requires the recognition of ROU assets and lease liabilities, arising from financing and operating leases, on the consolidated balance sheet, along with additional qualitative and quantitative disclosures. Companies are required to adopt this guidance using a modified retrospective approach and apply the transition provisions under the guidance at either 1) the later of the beginning of the earliest comparative period presented in the financial statements and the commencement date of the lease, or 2) the beginning of the period of adoption (i.e. on the effective date). Under the transition method using the second application date, a company initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the guidance on July 1, 2019, beginning of our fiscal year 2020, using the modified retrospective transition method and initially applied the transition provisions at July 1, 2019, which allowed us to continue to apply the legacy guidance in ASC 840 for periods prior to fiscal 2019. We elected the package of transition practical expedients, which among other things, allows us to keep the historical lease classifications and not have to reassess the lease classification for any existing leases as of the date of adoption. We also made the following accounting policy elections as allowed by ASC 842: • to apply the short-term lease exception, which allows us to keep leases with an initial term of twelve months or less off the balance sheet. • to account for each separate lease component of a contract and its associated non-lease components as a single-lease component for all our leases. As a result of the adoption of this standard, there was no adjustment to the opening balance of retained earnings as there was no cumulative effect adjustment at the date of adoption. Accordingly, the primary impact of adopting ASC 842 was the recognition of ROU assets and lease liabilities for operating leases of approximately $23.3 million and $24.0 million, respectively for all existing leases which had remaining obligations as of July 1, 2019. This included reclassifying deferred rent of $0.7 million from other current liabilities to a component of the ROU asset. ASC 842 did not have a material impact on our results of operations and comprehensive income and statement of cash flow. Recent Accounting Pronouncements Not Yet Effective Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier recognition of credit losses. ASU 2016-13 is effective for the Company’s fiscal year beginning July 1, 2020 on a modified retrospective basis. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures; however, we do not believe that the adoption of this standard will have a material impact on the Company's consolidated financial position or results of operations. Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), which amends the existing guidance relating to the accounting for income taxes. ASU 2019-12 is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company’s fiscal year beginning July 1, 2021. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
Revenues | Revenue is primarily generated from the sale of hardware as well as the related implied post contract services (“PCS”). Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our products and PCS to our customers. Transfer of control to the customer for products generally occurs at the point in time when products have been shipped to our customer by third party carriers as this represents the point in time when the customer has a present obligation to pay and physical possession including title and risk of loss have been transferred to the customer. Revenue for PCS is recognized ratably over time over the estimated period for which implied PCS services will be delivered. Disaggregation of Revenue See Note 15 of Notes to Consolidated Financial Statements “Segment Information” for disaggregation of revenue by product category and geography. Contract Balances The timing of revenue recognition, billing and cash collections results in billed accounts receivable, deferred revenue primarily attributable to PCS and customer deposits on the Consolidated Balance Sheets. Accounts receivable are recognized in the period the Company’s right to the consideration is unconditional. Our contract liabilities consist of advance payments |
Accrued Warranty | The Company offers warranties on certain products, generally 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 statements of operations and comprehensive income within cost of revenues. The warranties are typically in effect for twelve months from the distributor’s purchase date of the product. The Company assesses the adequacy of its accrued warranty liabilities and adjusts the amounts as necessary based on historical experience factors and changes in future estimates. Historical factors include product failure rates, material usage and service delivery costs 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. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial instruments' amortized cost, gross unrealized gains and losses, and fair value | The following tables summarize the Company’s financial instruments’ adjusted cost, gross unrealized gains and losses, and fair value by significant investment category as of March 31, 2020 and June 30, 2019 (in thousands): March 31, 2020 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents (1) Short-Term Investments Long-Term Investments Level 1 Money market funds $ 543 $ — $ — $ 543 $ 543 $ — $ — Subtotal $ 543 $ — $ — $ 543 $ 543 $ — $ — Level 2 Corporate securities 12,067 36 (58) 12,045 — 6,932 5,113 Subtotal $ 12,067 $ 36 $ (58) $ 12,045 $ — $ 6,932 $ 5,113 Total $ 12,610 $ 36 $ (58) $ 12,588 $ 543 $ 6,932 $ 5,113 (1) Cash and cash equivalents on the consolidated balance sheets includes securities that have a maturity of three months or less at the date of purchase. The carrying amount approximates fair value, primarily due to the short maturity of cash equivalent instruments. June 30, 2019 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents (1) Short-Term Investments Long-Term Investments Level 1 Money market funds $ 1,328 $ — $ — $ 1,328 $ 1,328 $ — $ — Subtotal $ 1,328 $ — $ — $ 1,328 $ 1,328 $ — $ — Level 2 Commercial paper $ 1,123 $ — $ — $ 1,123 $ 524 $ 599 $ — Corporate securities 83,568 372 (2) 83,938 — 57,377 26,561 U.S agency securities 4,702 4 — 4,706 — 3,712 994 US Government Bonds 12,189 20 (1) 12,208 — 8,178 4,030 Subtotal $ 101,582 $ 396 $ (3) $ 101,975 $ 524 $ 69,866 $ 31,585 Total $ 102,910 $ 396 $ (3) $ 103,303 $ 1,852 $ 69,866 $ 31,585 (1) Cash and cash equivalents on the consolidated balance sheets includes securities that have a maturity of three months or less at the date of purchase. The carrying amount approximates fair value, primarily due to the short maturity of cash equivalent instruments. |
Marketable securities in continuous unrealized loss position | The following table represents the Company’s marketable securities that had been in continuous unrealized loss position for less than 12 months and for 12 months or greater as of March 31, 2020 and June 30, 2019 (in thousands): March 31, 2020 Continuous Unrealized Losses Less than 12 Months 12 Months or Greater Total Fair Value of marketable securities $ 7,175 $ — $ 7,175 Unrealized Loss $ (58) $ — $ (58) June 30, 2019 Continuous Unrealized Losses Less than 12 Months 12 Months or Greater Total Fair Value of marketable securities $ 8,072 $ — $ 8,072 Unrealized Loss $ (3) $ — $ (3) |
Amortized costs and fair value of investment securities by contractual maturity | The following table represents the adjusted costs and fair value of investment by contractual maturity as of March 31, 2020 (in thousands): Available-For-Sale Adjusted Cost Fair Value Due within 1 year and money market funds $ 7,479 $ 7,475 Due after 1 year through 5 years 5,131 5,113 Total $ 12,610 $ 12,588 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
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 March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Numerator: Net income $ 103,722 $ 88,300 $ 287,679 $ 251,799 Denominator: Weighted-average shares used in computing basic earnings per share 64,630 70,540 66,003 71,856 Add—dilutive potential common shares: Stock options 24 79 33 101 Restricted stock units 45 73 58 79 Weighted-average shares used in computing diluted net income per share 64,699 70,692 66,094 72,036 Net income per share of common stock: Basic $ 1.60 $ 1.25 $ 4.36 $ 3.50 Diluted $ 1.60 $ 1.25 $ 4.35 $ 3.50 |
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 as including them would have been anti-dilutive for the period (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Restricted stock units 11 — 4 1 |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): March 31, 2020 June 30, 2019 Finished goods $ 201,966 $ 260,895 Raw materials 3,278 3,386 Total $ 205,244 $ 264,281 |
Property and equipment, net | Property and equipment, net consisted of the following (in thousands): March 31, 2020 June 30, 2019 Testing equipment $ 12,439 $ 10,258 Tooling equipment 13,136 10,624 Leasehold improvements 12,511 11,712 Computer and other equipment 7,503 7,264 Software 7,242 6,870 Furniture and fixtures 2,031 2,083 Corporate aircraft 64,224 — Property and Equipment, Gross 119,086 48,811 Less: Accumulated depreciation (40,038) (35,193) Property and Equipment, Net $ 79,048 $ 13,618 |
Other long-term assets | Other long-term assets consisted of the following (in thousands): March 31, 2020 June 30, 2019 Deposits on aircraft (1) $ — $ 42,000 Hong Kong tax deposit (2) 19,960 19,960 Intangible assets, net (3) 3,095 3,257 Other long-term assets (4) 4,364 8,724 Total $ 27,419 $ 73,941 (1) The Company made $57 million in deposits related to the purchase of an airplane through December 31, 2019. During the third quarter of fiscal 2020, the Company made its final payment that was due upon transfer of title and receipt of the airplane. As a result, the Company reclassified the $57 million in deposits related to the purchase, to Property and Equipment, net on our Consolidated Balance Sheet. As a result of an independent security study, the Company’s independent directors approved the purchase of the airplane, which Mr. Pera will be expected to use for all business and personal air travel. (2) The Company made a total of $20.0 million of deposits with the Hong Kong Inland Revenue Department (“IRD”) in connection with extending the statute of limitation for income tax examinations currently under audit for the 2010-2012 tax years. Of that amount, $13.4 million was made during fiscal year 2019 and $6.6 million made during fiscal year 2018. We expect the $20 million of deposits made with the IRD to be refunded upon completion of the audit. See Note 14, to the consolidated financial statements, for additional details regarding this ongoing tax audit. (3) Accumulated amortization was $1.8 million and $1.6 million as of March 31, 2020 and June 30, 2019, respectively. (4) During fiscal 2019, the Company entered into a $5 million strategic cost method investment where the Company acquired preferred stock. The shares were recorded at cost in Other Long-Term Assets on our Consolidated Balance Sheet. During the second quarter fiscal 2020, the Company recorded an impairment charge of $5 million. This unrealized loss is reflected in Interest expense and other, net on the Consolidated Statement of Operations and Comprehensive Income. |
Other current liabilities | Other current liabilities consisted of the following (in thousands): March 31, 2020 June 30, 2019 Deferred revenue — short-term $ 16,872 15,338 Accrued expenses 10,807 14,203 Lease liability— current 7,314 — Warranty accrual 4,544 4,518 Accrued compensation and benefits 3,184 3,866 Customer deposits 1,048 2,982 Reserve for sales returns 964 783 Other payables 39,563 42,543 Total $ 84,296 $ 84,233 |
Other long-term liabilities | Other long-term liabilities consisted of the following (in thousands): March 31, 2020 June 30, 2019 Deferred Revenue — long-term $ 6,085 $ 6,525 Other long-term liabilities 58 1,915 Total $ 6,143 $ 8,440 |
ACCRUED WARRANTY (Tables)
ACCRUED WARRANTY (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Warranty obligations | Warranty obligations, included in other current liabilities, were as follows (in thousands): Nine Months Ended March 31, 2020 2019 Beginning balance $ 4,518 $ 3,840 Accruals for warranties issued during the period 5,828 5,748 Changes in liability for pre-existing warranties during the period 408 (34) Settlements made during the period (6,210) (5,214) Ending balance $ 4,544 $ 4,340 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Our Debt consisted of the following (in thousands): March 31, 2020 June 30, 2019 Term Loan - short term $ 25,000 $ 31,250 Debt issuance costs, net (933) (575) Total Debt - short term 24,067 30,675 Term Loan - long term 456,250 431,250 Revolver - long term 205,000 35,000 Debt issuance costs, net (1,803) (1,550) Total Debt - long term $ 659,447 $ 464,700 |
Schedule of respective interest rates | The table below shows the respective interest rates as of March 31, 2020, in addition to the interest rate reset dates as available for each revolver draw. Debt Payment Obligations Interest Rate as of March 31, 2020 Rate Reset Date Reset Rate $120 Million Revolver 2.55 % April 14, 2020 2.58 % $50 Million Revolver 2.67 % April 23, 2020 2.37 % $25 Million Revolver 2.36 % April 20, 2020 2.47 % $10 Million Revolver 2.45 % April 16, 2020 2.54 % |
Schedule of estimated debt and interest payment obligations | The following table summarizes our estimated debt and interest payment obligations as of March 31, 2020, for the remainder of fiscal 2020 and future fiscal years (in thousands): 2020 (remainder) 2021 2022 2023 2024 Thereafter Total Debt payment obligations $ 6,250 $ 25,000 $ 25,000 $ 630,000 $ — $ — $ 686,250 Interest and other payments on debt payment obligations (1) 4,967 19,490 18,795 10,051 — — 53,303 Total $ 11,217 $ 44,490 $ 43,795 $ 640,051 $ — $ — $ 739,553 (1) - Interest payments are calculated based on the applicable rates and payment dates as of March 31, 2020. Although our interest rates on our debt obligations may vary, we have assumed the most recent available interest rates for all periods presented. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease costs | The following table summarizes our lease costs for the three and nine months ended March 31, 2020 (in thousands): Financial Statement Classification Three Months Ended March 31, 2020 Nine Months Ended March 31, 2020 Operating lease costs: Fixed lease costs Operating expenses $ 1,568 $ 4,415 Fixed lease costs Cost of revenues 515 1,553 Variable lease costs Operating expenses 81 256 Variable lease costs Cost of revenues 107 309 Total lease costs $ 2,271 $ 6,533 |
Undiscounted future fixed payment obligations under recognized operating leases and reconciliation of operating lease liabilities | The following table shows our undiscounted future fixed payment obligations under our recognized operating leases and a reconciliation to the operating lease liabilities as of March 31, 2020: Remainder of Fiscal 2020 $ 2,080 Fiscal 2021 7,165 Fiscal 2022 3,826 Fiscal 2023 3,271 Fiscal 2024 3,124 Thereafter 7,960 Total future fixed operating lease payments $ 27,426 Less: Imputed interest $ 2,882 Total operating lease liabilities $ 24,544 Weighted-average remaining lease term - operating leases 6 years Weighted-average discount rate - operating leases 4.0 % Due to our election to apply the effective date method of adoption for ASC 842, we have included the following additional disclosure under our historical lease accounting under ASC 840. |
Undiscounted future fixed payment obligations under recognized operating leases and reconciliation of operating lease liabilities | The following table shows our undiscounted future fixed payment obligations under our recognized operating leases and a reconciliation to the operating lease liabilities as of March 31, 2020: Remainder of Fiscal 2020 $ 2,080 Fiscal 2021 7,165 Fiscal 2022 3,826 Fiscal 2023 3,271 Fiscal 2024 3,124 Thereafter 7,960 Total future fixed operating lease payments $ 27,426 Less: Imputed interest $ 2,882 Total operating lease liabilities $ 24,544 Weighted-average remaining lease term - operating leases 6 years Weighted-average discount rate - operating leases 4.0 % Due to our election to apply the effective date method of adoption for ASC 842, we have included the following additional disclosure under our historical lease accounting under ASC 840. |
Future minimum lease payments under non-cancelable operating lease | As of June 30, 2019, future minimum lease payments under non-cancelable operating lease were as follows (in thousands): Fiscal 2020 $ 7,395 Fiscal 2021 5,509 Fiscal 2022 2,639 Fiscal 2023 2,205 Fiscal 2024 1,982 Thereafter 7,116 Total future minimum annual payments $ 26,846 Fiscal 2019 rent expense under operating leases $7.8 million |
COMMON STOCK AND TREASURY STO_2
COMMON STOCK AND TREASURY STOCK (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Share repurchase programs and activity under available share repurchase programs | The following table provides information with respect to the Company’s share repurchase programs and the activity under the available share repurchase programs during the nine months ended March 31, 2020 (in millions, except share and per share amounts): Date of Publicly Announced Program Amount of Publicly Announced Program Total Number of Shares Purchased as Part of Publicly Announced Programs Average Price Paid per Share Total Aggregate Amount Paid Period of Purchases Estimated Remaining Balance Available for Share Repurchases under the Program Expiration date of Program November 9, 2018 $200 million 293,709 $ 121.9 $ 35.8 July 8, 2019 - August 12, 2019 $ — 12/31/2019 August 9, 2019 $500 million 4,337,320 $ 115.3 $ 500.0 August 12, 2019 - October 28, 2019 $ — 12/31/2020 November 8, 2019 $200 million 1,112,606 $ 133.4 $ 148.4 February 7, 2020 - March 31, 2020 $ 51.6 million 12/31/2021 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation expense | The following table shows total stock-based compensation expense included in the Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Cost of revenues $ 29 $ 26 $ 94 $ 320 Research and development 499 555 1,507 1,519 Sales, general and administrative 197 171 543 467 $ 725 $ 752 $ 2,144 $ 2,306 |
Summary of option activity for the company's stock incentive plans | The following is a summary of option activity for the Company’s stock incentive plans for the nine months ended March 31, 2020: Common Stock Options Outstanding Number Weighted Weighted Aggregate Balance, June 30, 2019 44,847 $ 9.50 2.78 $ 5,472 Exercised (20,348) $ 7.52 Balance, March 31, 2020 24,499 $ 11.14 2.42 $ 3,196 Vested as of March 31, 2020 24,499 $ 11.14 2.42 $ 3,196 Vested and exercisable as of March 31, 2020 24,499 $ 11.14 2.42 $ 3,196 |
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 Per Share Non-vested RSUs, June 30, 2019 112,786 $ 73.24 RSUs granted 20,333 $ 157.68 RSUs vested (40,874) $ 62.31 RSUs canceled (6,887) $ 80.02 Non-vested RSUs, March 31, 2020 85,358 $ 98.04 |
SEGMENT INFORMATION, REVENUES_2
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Revenues by product | Revenues by product type are as follows (in thousands, except percentages): Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Service Provider Technology $ 106,439 32 % $ 109,379 38 % $ 320,081 33 % $ 327,558 37 % Enterprise Technology 230,978 68 % 175,532 62 % 648,897 67 % 547,534 63 % Total revenues $ 337,417 100 % $ 284,911 100 % $ 968,978 100 % $ 875,092 100 % |
Revenues by geography | Revenues by geography based on customer’s ship-to destinations were as follows (in thousands, except percentages): Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 North America (1) $ 133,917 40 % $ 109,135 38 % $ 411,834 43 % $ 349,740 40 % Europe, the Middle East and Africa ("EMEA") 159,436 47 % 125,662 44 % 405,883 42 % 384,985 44 % Asia Pacific 26,232 8 % 27,138 10 % 88,753 9 % 82,308 9 % South America 17,832 5 % 22,976 8 % 62,508 6 % 58,059 7 % Total revenues $ 337,417 100 % $ 284,911 100 % $ 968,978 100 % $ 875,092 100 % (1) Revenue for the United States was $125.4 million and $105.1 million for the three months ended March 31, 2020 and 2019, respectively. Revenue for the United States was $389.0 million and $331.9 million for the nine months ended March 31, 2020 and 2019, respectively. |
Percentage of revenue and accounts receivable | Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated: Percentage of Revenues Percentage of Accounts Receivable Three Months Ended March 31, Nine Months Ended March 31, March 31, June 30, 2020 2019 2020 2019 2020 2019 Customer A * * * * * 13% Customer B 10% * 12% 10% 10% 20% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jul. 01, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets, net | $ 23,459 | ||
Operating lease liability | $ 24,544 | ||
Deferred rent | $ 700 | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets, net | $ 23,300 | ||
Operating lease liability | $ 24,000 |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Customer deposits | $ 1,048 | $ 2,982 |
Deferred revenue, current | 16,872 | 15,338 |
Deferred revenue, noncurrent | $ 6,085 | $ 6,525 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Marketable Securities [Line Items] | ||
Adjusted Cost | $ 12,610 | |
Available-for-sale, fair value, total | 12,588 | |
Fair value, measurements, recurring | ||
Marketable Securities [Line Items] | ||
Adjusted Cost | 12,610 | $ 102,910 |
Gross Unrealized Gains | 36 | 396 |
Gross Unrealized Losses | (58) | (3) |
Available-for-sale, fair value, total | 12,588 | 103,303 |
Cash and Cash Equivalents | 543 | 1,852 |
Short-Term Investments | 6,932 | 69,866 |
Long-Term Investments | 5,113 | 31,585 |
Fair value, measurements, recurring | Level 1 | ||
Marketable Securities [Line Items] | ||
Adjusted Cost | 543 | 1,328 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale, fair value, total | 543 | 1,328 |
Cash and Cash Equivalents | 543 | 1,328 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | 0 | 0 |
Fair value, measurements, recurring | Level 2 | ||
Marketable Securities [Line Items] | ||
Adjusted Cost | 12,067 | 101,582 |
Gross Unrealized Gains | 36 | 396 |
Gross Unrealized Losses | (58) | (3) |
Available-for-sale, fair value, total | 12,045 | 101,975 |
Cash and Cash Equivalents | 0 | 524 |
Short-Term Investments | 6,932 | 69,866 |
Long-Term Investments | 5,113 | 31,585 |
Fair value, measurements, recurring | Money market funds | Level 1 | ||
Marketable Securities [Line Items] | ||
Adjusted Cost | 543 | 1,328 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale, fair value, total | 543 | 1,328 |
Cash and Cash Equivalents | 543 | 1,328 |
Short-Term Investments | 0 | 0 |
Long-Term Investments | 0 | 0 |
Fair value, measurements, recurring | Commercial paper | Level 2 | ||
Marketable Securities [Line Items] | ||
Adjusted Cost | 1,123 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Available-for-sale, fair value, total | 1,123 | |
Cash and Cash Equivalents | 524 | |
Short-Term Investments | 599 | |
Long-Term Investments | 0 | |
Fair value, measurements, recurring | Corporate securities | Level 2 | ||
Marketable Securities [Line Items] | ||
Adjusted Cost | 12,067 | 83,568 |
Gross Unrealized Gains | 36 | 372 |
Gross Unrealized Losses | (58) | (2) |
Available-for-sale, fair value, total | 12,045 | 83,938 |
Cash and Cash Equivalents | 0 | 0 |
Short-Term Investments | 6,932 | 57,377 |
Long-Term Investments | $ 5,113 | 26,561 |
Fair value, measurements, recurring | U.S agency securities | Level 2 | ||
Marketable Securities [Line Items] | ||
Adjusted Cost | 4,702 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | 0 | |
Available-for-sale, fair value, total | 4,706 | |
Cash and Cash Equivalents | 0 | |
Short-Term Investments | 3,712 | |
Long-Term Investments | 994 | |
Fair value, measurements, recurring | US Government Bonds | Level 2 | ||
Marketable Securities [Line Items] | ||
Adjusted Cost | 12,189 | |
Gross Unrealized Gains | 20 | |
Gross Unrealized Losses | (1) | |
Available-for-sale, fair value, total | 12,208 | |
Cash and Cash Equivalents | 0 | |
Short-Term Investments | 8,178 | |
Long-Term Investments | $ 4,030 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss), realized and reclassified to earnings from AOCI | $ (6,700) | $ 25,500 | $ 378,000 | $ 24,500 | |
Investment security, interest income | 200,000 | $ 700,000 | 1,000,000 | $ 2,200,000 | |
Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt | $ 686,300,000 | $ 686,300,000 | $ 497,500,000 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Continuous Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Fair value of marketable securities, continuous unrealized losses, less than 12 months | $ 7,175 | $ 8,072 |
Fair value of marketable securities, continuous unrealized losses, 12 months or greater | 0 | 0 |
Fair value of marketable securities, continuous unrealized losses | 7,175 | 8,072 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized loss, continuous unrealized losses, less than 12 months | (58) | (3) |
Unrealized loss, continuous unrealized losses, 12 months or greater | 0 | 0 |
Unrealized loss, continuous unrealized losses | $ (58) | $ (3) |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Investment Security by Contract Maturity (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | |
Available-for-sale, amortized cost, due within 1 year and money market funds | $ 7,479 |
Available-for-sale, amortized cost, due after 1 year through 5 years | 5,131 |
Adjusted Cost | 12,610 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | |
Available-for-sale, fair value, due within 1 year and money market funds | 7,475 |
Available-for-sale, fair value, due after 1 year through 5 years | 5,113 |
Available-for-sale, fair value, total | $ 12,588 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||||||||
Net Income | $ 103,722 | $ 85,811 | $ 98,146 | $ 88,300 | $ 77,796 | $ 85,703 | $ 287,679 | $ 251,799 |
Denominator: | ||||||||
Weighted-average shares used in computing basic net income per share (in shares) | 64,630 | 70,540 | 66,003 | 71,856 | ||||
Add—dilutive potential common shares: | ||||||||
Weighted-average shares used in computing diluted net income per share (in shares) | 64,699 | 70,692 | 66,094 | 72,036 | ||||
Net income per share of common stock: | ||||||||
Basic (in usd per share) | $ 1.60 | $ 1.25 | $ 4.36 | $ 3.50 | ||||
Diluted (in usd per share) | $ 1.60 | $ 1.25 | $ 4.35 | $ 3.50 | ||||
Stock options | ||||||||
Add—dilutive potential common shares: | ||||||||
Dilutive potential common shares (in shares) | 24 | 79 | 33 | 101 | ||||
Restricted stock units | ||||||||
Add—dilutive potential common shares: | ||||||||
Dilutive potential common shares (in shares) | 45 | 73 | 58 | 79 |
EARNINGS PER SHARE - Anti-dilut
EARNINGS PER SHARE - Anti-dilutive Securities (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential shares of common stock excluded from the diluted per share calculation (in shares) | 11 | 0 | 4 | 1 |
BALANCE SHEET COMPONENTS - Inve
BALANCE SHEET COMPONENTS - Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Inventories [Abstract] | ||
Finished goods | $ 201,966 | $ 260,895 |
Raw materials | 3,278 | 3,386 |
Total | $ 205,244 | $ 264,281 |
BALANCE SHEET COMPONENTS - Prop
BALANCE SHEET COMPONENTS - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 119,086 | $ 48,811 |
Less: Accumulated depreciation | (40,038) | (35,193) |
Property and Equipment, Net | 79,048 | 13,618 |
Testing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 12,439 | 10,258 |
Tooling equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 13,136 | 10,624 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 12,511 | 11,712 |
Computer and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 7,503 | 7,264 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 7,242 | 6,870 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 2,031 | 2,083 |
Corporate aircraft work-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 64,224 | $ 0 |
BALANCE SHEET COMPONENTS - Othe
BALANCE SHEET COMPONENTS - Other Long-term Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Long-term Debt [Abstract] | |||
Deposits on aircraft | $ 0 | $ 42,000 | |
Hong Kong tax deposit | 19,960 | 19,960 | |
Intangible assets, net | 3,095 | 3,257 | |
Other long-term assets | 4,364 | 8,724 | |
Total | 27,419 | 73,941 | |
Accumulated amortization, intangible assets | 1,800 | 1,600 | |
Private equity investment | 5,000 | ||
Income Tax Examination [Line Items] | |||
Property and Equipment, Gross | 119,086 | 48,811 | |
Hong Kong tax deposit | 19,960 | 19,960 | |
Airplane | |||
Income Tax Examination [Line Items] | |||
Payments for deposits | 57,000 | ||
Property and Equipment, Gross | 57,000 | ||
Hong Kong Inland Revenue Department | Tax Year 2010 - 2012 | |||
Other Long-term Debt [Abstract] | |||
Hong Kong tax deposit | 20,000 | ||
Income Tax Examination [Line Items] | |||
Hong Kong tax deposit | $ 20,000 | ||
Payment for tax deposit | $ 13,400 | $ 6,600 |
BALANCE SHEET COMPONENTS - Ot_2
BALANCE SHEET COMPONENTS - Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 |
Other Current Liabilities [Abstract] | ||||
Deferred revenue — short-term | $ 16,872 | $ 15,338 | ||
Accrued expenses | 10,807 | 14,203 | ||
Lease liability— current | 7,314 | |||
Warranty accrual | 4,544 | 4,518 | $ 4,340 | $ 3,840 |
Accrued compensation and benefits | 3,184 | 3,866 | ||
Customer deposits | 1,048 | 2,982 | ||
Reserve for sales returns | 964 | 783 | ||
Other payables | 39,563 | 42,543 | ||
Total | $ 84,296 | $ 84,233 |
BALANCE SHEET COMPONENTS - Ot_3
BALANCE SHEET COMPONENTS - Other Long Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Other Long-Term Liabilities [Abstract] | ||
Deferred Revenue — long-term | $ 6,085 | $ 6,525 |
Other long-term liabilities | 58 | 1,915 |
Total | $ 6,143 | $ 8,440 |
ACCRUED WARRANTY - Narrative (D
ACCRUED WARRANTY - Narrative (Detail) | 9 Months Ended |
Mar. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Warranty period | 12 months |
ACCRUED WARRANTY - Warranty Obl
ACCRUED WARRANTY - Warranty Obligations (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Warranty accrual, beginning balance | $ 4,518 | $ 3,840 |
Accruals for warranties issued during the period | 5,828 | 5,748 |
Changes in liability for pre-existing warranties during the period | 408 | (34) |
Settlements made during the period | (6,210) | (5,214) |
Warranty accrual, ending balance | $ 4,544 | $ 4,340 |
DEBT - Narrative (Detail)
DEBT - Narrative (Detail) - USD ($) | Dec. 31, 2019 | Oct. 31, 2019 | Sep. 09, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jan. 17, 2018 |
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal payment | $ 170,000,000 | $ 0 | ||||||
Revolving credit facility | Third Amendment Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 700,000,000 | |||||||
Additional borrowing capacity | 400,000,000 | |||||||
Outstanding borrowing | 120,000,000 | $ 205,000,000 | 205,000,000 | |||||
Principal payment | 50,000,000 | 170,000,000 | ||||||
Interest payment | $ 1,800,000 | 4,400,000 | ||||||
Debt issuance cost | $ 3,100,000 | |||||||
Issuance fees per annum | 0.125% | |||||||
Maximum leverage ratio | 3.25 | |||||||
Minimum consolidated interest coverage ratio | 3.5 | |||||||
Available borrowing capacity | 495,000,000 | 495,000,000 | ||||||
Repayment of outstanding balance | 51,800,000 | 174,400,000 | ||||||
Revolving credit facility | Third Amendment Credit Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage of unused borrowings | 0.20% | |||||||
Revolving credit facility | Third Amendment Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage of unused borrowings | 0.35% | |||||||
Revolving credit facility | Third Amendment Credit Agreement | Base rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt basis spread on variable rate | 0.50% | |||||||
Revolving credit facility | Third Amendment Credit Agreement | Base rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt basis spread on variable rate | 1.25% | |||||||
Revolving credit facility | Third Amendment Credit Agreement | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt basis spread on variable rate | 1.00% | |||||||
Revolving credit facility | Third Amendment Credit Agreement | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt basis spread on variable rate | 1.50% | |||||||
Revolving credit facility | Third Amendment Credit Agreement | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt basis spread on variable rate | 2.25% | |||||||
Revolving credit facility | Third Amendment Credit Agreement | Federal funds rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt basis spread on variable rate | 0.50% | |||||||
Revolving credit facility | Third Amendment Credit Agreement | Applicable interest rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt basis spread over applicable interest rate | 2.00% | |||||||
Revolving credit facility | Second Amended & Restated Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowing | $ 400,000,000 | |||||||
Principal payment | $ 462,500,000 | |||||||
Interest payment | 500,000 | |||||||
Term loan facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal payment | 18,750,000 | $ 18,750,000 | ||||||
Term loan facility | Third Amendment Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 500,000,000 | |||||||
Outstanding borrowing | 481,300,000 | 481,300,000 | ||||||
Principal payment | 6,300,000 | 18,800,000 | ||||||
Interest payment | 4,200,000 | 13,200,000 | ||||||
Percentage of principal due quarterly | 1.25% | |||||||
Repayment of outstanding balance | $ 10,500,000 | $ 31,900,000 | ||||||
Interest rate | 2.74% | 2.15% | ||||||
Term loan facility | Second Amended & Restated Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowing | $ 500,000,000 | |||||||
Letters of credit | Third Amendment Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 10,000,000 | |||||||
Letters of credit | Third Amendment Credit Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage of unused borrowings | 1.50% | |||||||
Letters of credit | Third Amendment Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage of unused borrowings | 2.25% | |||||||
Sublimit for swingline loan advances | Third Amendment Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 25,000,000 | |||||||
Sublimit for swingline loan advances | Third Amendment Credit Agreement | Base rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt basis spread on variable rate | 0.50% | |||||||
Sublimit for swingline loan advances | Third Amendment Credit Agreement | Base rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt basis spread on variable rate | 1.25% |
DEBT - Summary of Debt (Details
DEBT - Summary of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||
Debt — short-term | $ 24,067 | $ 30,675 |
Debt issuance costs, net | (933) | (575) |
Debt — long-term | 659,447 | 464,700 |
Debt issuance costs, net | (1,803) | (1,550) |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Debt — short-term | 25,000 | 31,250 |
Debt — long-term | 456,250 | 431,250 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt — long-term | $ 205,000 | $ 35,000 |
DEBT - Debt Payment Obligations
DEBT - Debt Payment Obligations (Details) - Term loan facility - USD ($) | Apr. 23, 2020 | Apr. 20, 2020 | Apr. 16, 2020 | Apr. 14, 2020 | Mar. 31, 2020 |
$120 Million Revolver | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.55% | ||||
Outstanding borrowing | $ 120,000,000 | ||||
$120 Million Revolver | Subsequent event | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.58% | ||||
$50 Million Revolver | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.67% | ||||
Outstanding borrowing | $ 50,000,000 | ||||
$50 Million Revolver | Subsequent event | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.37% | ||||
$25 Million Revolver | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.36% | ||||
Outstanding borrowing | $ 25,000,000 | ||||
$25 Million Revolver | Subsequent event | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.47% | ||||
$10 Million Revolver | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.45% | ||||
Outstanding borrowing | $ 10,000,000 | ||||
$10 Million Revolver | Subsequent event | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.54% |
DEBT - Summary of Debt and Inte
DEBT - Summary of Debt and Interest Payment Obligations (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Debt payment obligations | |
Debt payment obligations, 2020 (remainder) | $ 6,250 |
Debt payment obligations, 2021 | 25,000 |
Debt payment obligations, 2022 | 25,000 |
Debt payment obligations, 2023 | 630,000 |
Debt payment obligations, 2024 | 0 |
Debt payment obligations, thereafter | 0 |
Debt payment obligations, total | 686,250 |
Interest and other payments on debt payment obligations | |
Interest and other payments on debt payment obligations, 2020 (remainder) | 4,967 |
Interest and other payments on debt payment obligations, 2021 | 19,490 |
Interest and other payments on debt payment obligations, 2022 | 18,795 |
Interest and other payments on debt payment obligations, 2023 | 10,051 |
Interest and other payments on debt payment obligations, 2024 | 0 |
Interest and other payments on debt payment obligations, thereafter | 0 |
Interest and other payments on debt payment obligations, total | 53,303 |
Total | |
Debt and interest payment obligations, 2020 (remainder) | 11,217 |
Debt and interest payment obligations, 2021 | 44,490 |
Debt and interest payment obligations, 2022 | 43,795 |
Debt and interest payment obligations, 2023 | 640,051 |
Debt and interest payment obligations, 2024 | 0 |
Debt and interest payment obligations, thereafter | 0 |
Debt and interest payment obligations, total | $ 739,553 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Mar. 31, 2020 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease, extension of terms | 12 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease, extension of terms | 60 months |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Lease, Cost [Abstract] | ||
Total lease costs | $ 2,271 | $ 6,533 |
Short-term lease costs | 200 | |
Operating lease payments | 2,300 | 6,600 |
Operating expenses | ||
Lease, Cost [Abstract] | ||
Fixed lease costs | 1,568 | 4,415 |
Variable lease costs | 81 | 256 |
Cost of revenues | ||
Lease, Cost [Abstract] | ||
Fixed lease costs | 515 | 1,553 |
Variable lease costs | $ 107 | $ 309 |
LEASES - Operating Leases Futur
LEASES - Operating Leases Future Payment Obligations (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of Fiscal 2020 | $ 2,080 |
Fiscal 2021 | 7,165 |
Fiscal 2022 | 3,826 |
Fiscal 2023 | 3,271 |
Fiscal 2024 | 3,124 |
Thereafter | 7,960 |
Total future fixed operating lease payments | 27,426 |
Less: Imputed interest | 2,882 |
Total operating lease liabilities | $ 24,544 |
LEASES - Weighted-Average Term
LEASES - Weighted-Average Term and Discount Rate (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term - operating leases | 6 years |
Weighted-average discount rate - operating leases | 4.00% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Fiscal 2020 | $ 7,395 |
Fiscal 2021 | 5,509 |
Fiscal 2022 | 2,639 |
Fiscal 2023 | 2,205 |
Fiscal 2024 | 1,982 |
Thereafter | 7,116 |
Total future minimum annual payments | 26,846 |
Fiscal 2019 rent expense under operating leases | $ 7,800 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Jul. 06, 2017segment | Mar. 31, 2020USD ($) | Oct. 02, 2017segment |
Property Subject to or Available for Operating Lease [Line Items] | |||
Other obligations | $ 17 | ||
XR Communications, LLC, d/b/a Vivato Technologies | Pending litigation | |||
Loss Contingencies [Line Items] | |||
Other lawsuits filed | segment | 9 | ||
Number of lawsuits | segment | 10 | ||
Component purchase commitments | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Purchase obligation | 3 | ||
Components | Minimum | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Purchase obligation | 139 | ||
Components | Maximum | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Purchase obligation | $ 311 |
COMMON STOCK AND TREASURY STO_3
COMMON STOCK AND TREASURY STOCK - Narrative (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2020 | Nov. 06, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Value of total number of shares purchased | $ 148,400,000 | $ 119,572,000 | $ 416,219,000 | $ 8,999,000 | $ 206,315,000 | $ 112,764,000 | ||
Common Stock | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock repurchased and retired (in shares) | 1,112,606 | 995,495 | 3,635,534 | 91,249 | 2,287,975 | 1,238,163 | ||
Value of total number of shares purchased | $ 1,000 | $ 1,000 | $ 3,000 | $ 0 | $ 2,000 | $ 1,000 | ||
Common Stock | November 2018, August 2019, and November 2019 Repurchase Programs | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock repurchased and retired (in shares) | 1,112,606 | 5,743,635 | ||||||
Shares repurchased and retired, average cost per share (in dollars per share) | $ 133.38 | $ 119.12 | ||||||
Value of total number of shares purchased | $ 148,400,000 | $ 684,200,000 | ||||||
Unpaid stock repurchases | 5,200,000 | 5,200,000 | ||||||
Common Stock | November 2019 Repurchase Program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Amount of Publicly Announced Program | 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||
Stock repurchased and retired (in shares) | 1,112,606 | |||||||
Value of total number of shares purchased | $ 148,400,000 | |||||||
Estimated Remaining Balance Available for Share Repurchases under the Program | $ 51,600,000 | $ 51,600,000 |
COMMON STOCK AND TREASURY STO_4
COMMON STOCK AND TREASURY STOCK - Repurchase Programs (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2020 | Nov. 06, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total Aggregate Amount Paid | $ 148,400,000 | $ 119,572,000 | $ 416,219,000 | $ 8,999,000 | $ 206,315,000 | $ 112,764,000 | ||
Common Stock | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total Number of Shares Purchased as Part of Publicly Announced Programs (in shares) | 1,112,606 | 995,495 | 3,635,534 | 91,249 | 2,287,975 | 1,238,163 | ||
Total Aggregate Amount Paid | $ 1,000 | $ 1,000 | $ 3,000 | $ 0 | $ 2,000 | $ 1,000 | ||
Common Stock | November 2018 Repurchase Program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Amount of Publicly Announced Program | 200,000,000 | $ 200,000,000 | ||||||
Total Number of Shares Purchased as Part of Publicly Announced Programs (in shares) | 293,709 | |||||||
Average Price Paid per Share (in usd per share) | $ 121.9 | |||||||
Total Aggregate Amount Paid | $ 35,800,000 | |||||||
Estimated Remaining Balance Available for Share Repurchases under the Program | 0 | 0 | ||||||
Common Stock | August 2019 Repurchase Program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Amount of Publicly Announced Program | 500,000,000 | $ 500,000,000 | ||||||
Total Number of Shares Purchased as Part of Publicly Announced Programs (in shares) | 4,337,320 | |||||||
Average Price Paid per Share (in usd per share) | $ 115.3 | |||||||
Total Aggregate Amount Paid | $ 500,000,000 | |||||||
Estimated Remaining Balance Available for Share Repurchases under the Program | 0 | 0 | ||||||
Common Stock | November 2019 Repurchase Program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Amount of Publicly Announced Program | 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||
Total Number of Shares Purchased as Part of Publicly Announced Programs (in shares) | 1,112,606 | |||||||
Average Price Paid per Share (in usd per share) | $ 133.4 | |||||||
Total Aggregate Amount Paid | $ 148,400,000 | |||||||
Estimated Remaining Balance Available for Share Repurchases under the Program | $ 51,600,000 | $ 51,600,000 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | $ (355,986,000) | $ (292,105,000) | $ (239,427,000) | $ 99,277,000 | $ 188,100,000 | $ 125,336,000 | $ 270,639,000 | $ 315,748,000 |
Accumulated other comprehensive income, net unrealized gains (losses) available-for-sale securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | $ (22,200) | $ 400,000 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized shares, stock incentive plans (in shares) | 9,988,734 | 9,988,734 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value of options exercised | $ 300,000 | $ 6,800,000 | $ 3,500,000 | $ 10,000,000 |
Unrecognized compensation costs | 0 | 0 | ||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of RSUs vested | 3,300,000 | $ 2,300,000 | 6,700,000 | $ 4,400,000 |
Intrinsic value of RSUs outstanding | 12,100,000 | 12,100,000 | ||
Unrecognized compensation costs, RSUs | $ 6,200,000 | $ 6,200,000 | ||
Weighted-average period recognized (in years) | 3 years 3 months 18 days |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 725 | $ 752 | $ 2,144 | $ 2,306 |
Cost of revenues | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 29 | 26 | 94 | 320 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 499 | 555 | 1,507 | 1,519 |
Sales, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 197 | $ 171 | $ 543 | $ 467 |
STOCK BASED COMPENSATION - Opti
STOCK BASED COMPENSATION - Option Activity for Company's Stock Incentive Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | |
Number of Shares | |||
Beginning balance (in shares) | 44,847 | 44,847 | |
Exercised (in shares) | (20,348) | ||
Ending balance (in shares) | 24,499 | ||
Weighted Average Exercise Price | |||
Beginning balance (in usd per share) | $ 9.50 | $ 9.50 | |
Exercised (in usd per share) | 7.52 | ||
Ending balance (in usd per share) | $ 11.14 | ||
Options outstanding, weighted average remaining contractual life | 2 years 9 months 10 days | 2 years 5 months 1 day | |
Options outstanding, aggregate intrinsic value | $ 3,196 | $ 5,472 | |
Number of shares, vested (in shares) | 24,499 | ||
Options, weighted average exercise price, vested (in usd per share) | $ 11.14 | ||
Options, remaining contractual term, vested (years) | 2 years 5 months 1 day | ||
Options, aggregate intrinsic value, vested | $ 3,196 | ||
Number of shares, vested and exercisable (in shares) | 24,499 | ||
Options, weighted average exercise price, vested and exercisable (in usd per share) | $ 11.14 | ||
Options, weighted average remaining contractual life, vested and exercisable (years) | 2 years 5 months 1 day | ||
Options, aggregate intrinsic value, vested and exercisable | $ 3,196 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of RSU Activity (Detail) - Restricted stock units | 9 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Shares | |
Non-vested RSUs, beginning balance (in shares) | shares | 112,786 |
RSUs granted (in shares) | shares | 20,333 |
RSUs vested (in shares) | shares | (40,874) |
RSUs canceled (in shares) | shares | (6,887) |
Non-vested RSUs, ending balance (in shares) | shares | 85,358 |
Weighted Average Grant Date Fair Value Per Share | |
Non-vested RSUs, weighted average grant date fair value, beginning balance (in usd per share) | $ / shares | $ 73.24 |
RSUs granted, weighted average grant date fair value (in usd per share) | $ / shares | 157.68 |
RSUs vested, weighted average grant date fair value (in usd per share) | $ / shares | 62.31 |
RSUs canceled, weighted average grant date fair value (in usd per share) | $ / shares | 80.02 |
Non-vested RSUs, weighted average grant date fair value, ending balance (in usd per share) | $ / shares | $ 98.04 |
INCOME TAXES (Detail)
INCOME TAXES (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||||
Provisions for income taxes | $ 17,017 | $ 10,390 | $ 49,059 | $ 32,427 | ||
Unrecognized tax benefits | 32,400 | 32,400 | ||||
Net increase (decrease) in unrecognized tax benefits | 1,200 | |||||
Interest accrued related to uncertain tax matters | 5,000 | 5,000 | ||||
Tax Year 2015 - 2016 | IRS | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Loss contingency, estimate of possible loss | 50,000 | 50,000 | ||||
Hong Kong Inland Revenue Department | Tax Year 2010 - 2013 | IRS | ||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||||
Payment for tax deposit | $ 20,000 | $ 20,000 | ||||
Loss contingency, estimate of possible loss | $ 23,300 | $ 23,300 |
SEGMENT INFORMATION, REVENUES_3
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Narrative (Detail) | 9 Months Ended |
Mar. 31, 2020segmentproduct | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Number Of Product Types | product | 2 |
SEGMENT INFORMATION, REVENUES_4
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Revenues by Product (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 337,417 | $ 284,911 | $ 968,978 | $ 875,092 |
Revenue percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Product concentration risk | Service Provider Technology | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 106,439 | $ 109,379 | $ 320,081 | $ 327,558 |
Product concentration risk | Service Provider Technology | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 32.00% | 38.00% | 33.00% | 37.00% |
Product concentration risk | Enterprise Technology | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 230,978 | $ 175,532 | $ 648,897 | $ 547,534 |
Product concentration risk | Enterprise Technology | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 68.00% | 62.00% | 67.00% | 63.00% |
SEGMENT INFORMATION, REVENUES_5
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Revenues by Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 337,417 | $ 284,911 | $ 968,978 | $ 875,092 |
Revenue percentage | 100.00% | 100.00% | 100.00% | 100.00% |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 125,400 | $ 105,100 | $ 389,000 | $ 331,900 |
Geographic concentration risk | North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 133,917 | $ 109,135 | $ 411,834 | $ 349,740 |
Revenue percentage | 40.00% | 38.00% | 43.00% | 40.00% |
Geographic concentration risk | Europe, the Middle East and Africa ("EMEA") | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 159,436 | $ 125,662 | $ 405,883 | $ 384,985 |
Revenue percentage | 47.00% | 44.00% | 42.00% | 44.00% |
Geographic concentration risk | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 26,232 | $ 27,138 | $ 88,753 | $ 82,308 |
Revenue percentage | 8.00% | 10.00% | 9.00% | 9.00% |
Geographic concentration risk | South America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 17,832 | $ 22,976 | $ 62,508 | $ 58,059 |
Revenue percentage | 5.00% | 8.00% | 6.00% | 7.00% |
SEGMENT INFORMATION, REVENUES_6
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Percentage of Revenues, Accounts Receivable (Detail) | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Revenue, Major Customer [Line Items] | ||||||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% | ||
Revenues | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% | ||
Customer concentration risk | Revenues | Customer B | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration percentage | 10.00% | 12.00% | 10.00% | |||
Customer concentration risk | Accounts Receivable | Customer A | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration percentage | 13.00% | |||||
Customer concentration risk | Accounts Receivable | Customer B | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration percentage | 10.00% | 20.00% |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS (Details) - Chief Executive Officer - USD ($) | Nov. 13, 2013 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Sales, general and administrative | |||||
Related Party Transaction [Line Items] | |||||
Aircraft leasing expenses | $ 400,000 | $ 400,000 | $ 1,300,000 | $ 1,300,000 | |
Aircraft lease agreement | |||||
Related Party Transaction [Line Items] | |||||
Rate to lease aircraft | $ 5,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | May 05, 2020 | May 07, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2020 | Nov. 06, 2019 |
Repurchase Agreement Counterparty [Line Items] | ||||||||||
Value of total number of shares purchased | $ 148,400,000 | $ 119,572,000 | $ 416,219,000 | $ 8,999,000 | $ 206,315,000 | $ 112,764,000 | ||||
Common Stock | ||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||
Stock repurchased and retired (in shares) | 1,112,606 | 995,495 | 3,635,534 | 91,249 | 2,287,975 | 1,238,163 | ||||
Value of total number of shares purchased | $ 1,000 | $ 1,000 | $ 3,000 | $ 0 | $ 2,000 | $ 1,000 | ||||
November 2019 Repurchase Program | Common Stock | ||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||
Amount of Publicly Announced Program | 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||||
Stock repurchased and retired (in shares) | 1,112,606 | |||||||||
Value of total number of shares purchased | $ 148,400,000 | |||||||||
Estimated Remaining Balance Available for Share Repurchases under the Program | $ 51,600,000 | $ 51,600,000 | ||||||||
Subsequent event | ||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||
Dividends declared per share (in dollars per share) | $ 0.30 | |||||||||
Subsequent event | May 2020 Program | Common Stock | ||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||
Amount of Publicly Announced Program | $ 500,000,000 | |||||||||
Subsequent event | November 2019 Repurchase Program | Common Stock | ||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||
Stock repurchased and retired (in shares) | 99,165 | |||||||||
Shares repurchased and retired, average cost per share (in dollars per share) | $ 138.25 | |||||||||
Value of total number of shares purchased | $ 13,700,000 | |||||||||
Estimated Remaining Balance Available for Share Repurchases under the Program | $ 37,900,000 |