Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 31, 2015 | Apr. 21, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CONCURRENT COMPUTER CORP/DE | |
Entity Central Index Key | 749038 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,442,494 | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $26,826 | $28,074 |
Accounts receivable, net of allowance for doubtful accounts of $54 at March 31, 2015 and $78 at June 30, 2014 | 12,402 | 11,355 |
Inventories | 3,946 | 3,272 |
Deferred income taxes - current, net | 1,354 | 1,458 |
Prepaid expenses and other current assets | 799 | 804 |
Total current assets | 45,327 | 44,963 |
Property, plant and equipment, net | 2,411 | 2,168 |
Intangible assets, net | 367 | 476 |
Deferred income taxes, net | 12,927 | 13,231 |
Other long-term assets | 1,312 | 1,548 |
Total assets | 62,344 | 62,386 |
Current liabilities: | ||
Accounts payable and accrued expenses | 7,098 | 7,591 |
Deferred revenue | 10,049 | 7,441 |
Total current liabilities | 17,147 | 15,032 |
Long-term liabilities: | ||
Deferred revenue | 1,929 | 1,400 |
Pension liability | 2,867 | 3,566 |
Other | 1,677 | 1,934 |
Total liabilities | 23,620 | 21,932 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Shares of common stock, par value $.01; 14,000,000 authorized; 9,134,043 and 8,996,655 issued and outstanding at March 31, 2015 and June 30, 2014 | 91 | 90 |
Capital in excess of par value | 210,353 | 209,711 |
Accumulated deficit | -171,715 | -169,001 |
Treasury stock, at cost; 37,788 shares | -255 | -255 |
Accumulated other comprehensive income | 250 | -91 |
Total stockholders' equity | 38,724 | 40,454 |
Total liabilities and stockholders' equity | 62,344 | 62,386 |
Series Preferred Stock [Member] | ||
Stockholders' equity: | ||
Shares of preferred stock | 0 | 0 |
Preferred Class A [Member] | ||
Stockholders' equity: | ||
Shares of preferred stock | $0 | $0 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $54 | $78 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 14,000,000 | 14,000,000 |
Common stock, issued (in shares) | 9,134,043 | 8,996,655 |
Common stock, outstanding (in shares) | 9,134,043 | 8,996,655 |
Treasury stock, at cost (in shares) | 37,788 | 37,788 |
Series Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 1,250,000 | 1,250,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred Class A [Member] | ||
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $100 | $100 |
Preferred stock, authorized (in shares) | 20,000 | 20,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||||
Product | $11,327 | $12,197 | $34,881 | $34,651 |
Service | 5,783 | 6,081 | 15,765 | 18,662 |
Total revenues | 17,110 | 18,278 | 50,646 | 53,313 |
Cost of sales: | ||||
Product | 4,578 | 5,495 | 14,897 | 15,701 |
Service | 2,447 | 2,535 | 7,159 | 7,906 |
Total cost of sales | 7,025 | 8,030 | 22,056 | 23,607 |
Gross margin | 10,085 | 10,248 | 28,590 | 29,706 |
Operating expenses: | ||||
Sales and marketing | 3,410 | 3,595 | 10,889 | 10,590 |
Research and development | 3,484 | 3,409 | 10,164 | 9,998 |
General and administrative | 1,729 | 1,984 | 6,173 | 5,925 |
Gain on sale of IPv4 addresses, net | 0 | 0 | -339 | 0 |
Total operating expenses | 8,623 | 8,988 | 26,887 | 26,513 |
Operating income | 1,462 | 1,260 | 1,703 | 3,193 |
Interest income | 2 | 2 | 7 | 18 |
Interest expense | 0 | -9 | 0 | -41 |
Other expense, net | -1 | -31 | -377 | -105 |
Income before income taxes | 1,463 | 1,222 | 1,333 | 3,065 |
Provision for income taxes | 679 | 140 | 733 | 160 |
Net income | $784 | $1,082 | $600 | $2,905 |
Net income per share | ||||
Basic (in dollars per share) | $0.09 | $0.12 | $0.07 | $0.33 |
Diluted (in dollars per share) | $0.09 | $0.12 | $0.07 | $0.32 |
Weighted average shares outstanding - basic (in shares) | 9,096 | 8,944 | 9,058 | 8,897 |
Weighted average shares outstanding - diluted (in shares) | 9,143 | 9,090 | 9,141 | 9,074 |
Cash dividends declared per common share (in dollars per share) | $0.12 | $0.12 | $0.36 | $0.36 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net income | $784 | $1,082 | $600 | $2,905 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | 210 | 31 | 311 | -114 |
Pension and post-retirement benefits, net of tax | 10 | 5 | 30 | 15 |
Other comprehensive income (loss) | 220 | 36 | 341 | -99 |
Total Comprehensive income | $1,004 | $1,118 | $941 | $2,806 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Stockholders' Equity (USD $) | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comp. Income [Member] | Treasury Stock [Member] | Total |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Jun. 30, 2014 | $90 | $209,711 | ($169,001) | ($91) | ($255) | $40,454 |
Treasury Stock (in shares) at Jun. 30, 2014 | -37,788 | -37,788 | ||||
Balance (in shares) at Jun. 30, 2014 | 8,996,655 | 8,996,655 | ||||
Comprehensive income: | ||||||
Net income | 600 | 600 | ||||
Foreign currency translation adj | 311 | 311 | ||||
Pensions plan | 30 | 30 | ||||
Total Comprehensive income | 941 | |||||
Dividends declared | -3,382 | -3,382 | ||||
Dividends forfeited with restricted stock forfeitures | 68 | 68 | ||||
Restricted stock compensation expensed | 643 | 643 | ||||
Lapse of restriction on restricted stock | 1 | -1 | 0 | |||
Lapse of restriction on restricted stock (in shares) | 137,388 | |||||
Balance at Mar. 31, 2015 | $91 | $210,353 | ($171,715) | $250 | ($255) | $38,724 |
Treasury Stock (in shares) at Mar. 31, 2015 | -37,788 | -37,788 | ||||
Balance (in shares) at Mar. 31, 2015 | 9,134,043 | 9,134,043 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows provided by (used in) operating activities: | ||
Net income | $600 | $2,905 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,317 | 1,574 |
Gain on sale of IPv4 addresses, net | -339 | 0 |
Share-based compensation | 643 | 883 |
Inventory provision | 549 | 254 |
Other non-cash expenses | 713 | -32 |
Decrease (increase) in assets: | ||
Accounts receivable | -1,906 | -7,484 |
Inventories | -927 | -798 |
Prepaid expenses and other current assets, net | -44 | 879 |
Other long-term assets, net | -373 | -476 |
Increase (decrease) in liabilities: | ||
Accounts payable and accrued expenses, net | -287 | 1,545 |
Deferred revenue | 3,439 | -557 |
Long-term liabilities, net | 100 | 225 |
Net cash provided by (used in) operating activities | 3,485 | -1,082 |
Cash flows (used in) provided by investing activities: | ||
Additions to property and equipment | -1,505 | -847 |
Proceeds from sale of IPv4 addresses | 339 | 0 |
Net cash used in investing activities | -1,166 | -847 |
Cash flows used in financing activities: | ||
Dividends paid | -3,404 | -3,378 |
Repurchase of shares to satisfy tax withholdings | 0 | -136 |
Net cash used in financing activities | -3,404 | -3,514 |
Effect of exchange rates on cash and cash equivalents | -163 | -32 |
Decrease in cash and cash equivalents | -1,248 | -5,475 |
Cash and cash equivalents - beginning of year | 28,074 | 27,927 |
Cash and cash equivalents - end of year | 26,826 | 22,452 |
Cash paid during the period for: | ||
Interest | 6 | 22 |
Income taxes (net of refunds) | $562 | ($136) |
Overview_of_Business_and_Basis
Overview of Business and Basis of Presentation | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Overview of Business and Basis of Presentation [Abstract] | |||||||||||||
Overview of Business and Basis of Presentation | 1 | Overview of Business and Basis of Presentation | |||||||||||
We provide software, hardware and professional services for the video market and the high-performance, real-time market. Our business is comprised of two segments for financial reporting purposes, products and services, which we provide for each of these markets. | |||||||||||||
Our video solutions consist of software, hardware, and services for intelligently streaming video and collecting and analyzing media data. Our video solutions and services are deployed by video service providers for distribution of video to consumers and collection of media data intelligence to manage their video business and operations. | |||||||||||||
Our real-time products consist of real-time Linux operating systems, development tools and other system software combined, in most cases, with computer platforms and services. These products are sold to a wide variety of companies seeking high-performance, real-time computer solutions in the military, aerospace, financial and automotive markets around the world. | |||||||||||||
Our condensed consolidated interim financial statements are unaudited and reflect all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of our financial position, results of operations and cash flows at the dates and for the periods indicated. These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended June 30, 2014. | |||||||||||||
There have been no changes to our Significant Accounting Policies as disclosed in Note 2 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2014. The results reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. | |||||||||||||
Smaller Reporting Company | |||||||||||||
We meet the Securities and Exchange Commission’s (“SEC’s”) definition of a “Smaller Reporting Company,” and therefore qualify for the SEC’s reduced disclosure requirements for smaller reporting companies. | |||||||||||||
Immaterial Restatement of Previously Issued Financial Statements | |||||||||||||
Subsequent to the issuance of our fiscal year 2014 Consolidated Financial Statements, we identified an error in the Consolidated Statement of Cash Flows relating to the presentation of spare parts purchases used to support our obligations under customer contracts. Cash outflows of $444,000 for the nine months ended March 31, 2014 were improperly classified as investing rather than as operating activities in the Consolidated Statements of Cash Flows. We have evaluated the effects of these misstatements for each of these periods and concluded that none of these periods are materially misstated. Notwithstanding, we have corrected the accompanying cash flow presentation for the nine months ended March 31, 2014 and will correct the applicable comparable prior periods in our future filings. | |||||||||||||
The impact of this error on our previously issued Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2014 is presented below (in thousands): | |||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||
for the nine months ended March 31, 2014 | |||||||||||||
As Previously | Adjustments | As Restated | |||||||||||
Reported | |||||||||||||
Depreciation and amortization | $ | 1,795 | $ | (221 | ) | $ | 1,574 | ||||||
Inventory provision | 33 | 221 | 254 | ||||||||||
Other long-term assets, net | (32 | ) | (444 | ) | (476 | ) | |||||||
Net cash used in operating activities | $ | (638 | ) | $ | (444 | ) | $ | (1,082 | ) | ||||
Additions to property and equipment | $ | (1,291 | ) | $ | 444 | $ | (847 | ) | |||||
Net cash used in investing activities | $ | (1,291 | ) | $ | 444 | $ | (847 | ) | |||||
Additionally, and in connection with the correction noted above, we have reclassified $913,000 of non-current spare parts from property and equipment, net on our June 30, 2014 balance sheet, to other long-term assets to conform to the March 31, 2015 presentation. Related depreciation is included in cost of sales in our income statement. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Income Taxes | |||||||||||||
As of June 30, 2014, we had U.S. federal net operating loss carryforwards of approximately $94.4 million for income tax purposes, of which none expire in fiscal year 2015, and the remainder expire at various dates through 2034. We completed an evaluation of the potential effect of Section 382 of the Internal Revenue Code of 1986 (the “Code”) on our ability to utilize these net operating losses. The study concluded that we have not had an ownership change for the period from July 22, 1993 to June 30, 2014. | |||||||||||||
Realization of our deferred tax assets is dependent primarily on the generation of future taxable income. In considering the need for a valuation allowance, we consider our historical and future projected operations along with other positive and negative evidence in assessing if sufficient future taxable income will be generated to use the existing deferred tax assets. The following summarizes our conclusions on the need for a valuation allowance in each jurisdiction as of March 31, 2015: | |||||||||||||
U.S. - As of June 30, 2014, we had realized a three-year cumulative accounting profit in the U.S. adjusted for permanent differences and other non-recurring events, including the 2013 gain on the sale of certain patents, and adjusting for the loss of a long time customer. This three-year period is the standard period by which we initially assess each jurisdiction and is strong objective evidence, whether positive or negative, to be considered in the release or recording of any valuation allowance. In determining whether or not to release valuation allowance for the U.S. jurisdiction we considered positive evidence including the three year cumulative accounting profit, current projections of future profitability, lack of any significant claims or loss contingencies, and positive cash from operations. Negative evidence considered includes significant volatility in our operations, history of NOLs expiring unused, concentration of our customer base including the risk of global consolidation in the cable industry, and the loss of a long-time customer in the current year. Based on our analysis of both positive and negative evidence, we concluded during the fourth quarter of our fiscal year 2014 that it is now more likely than not that we will realize a portion of our U.S. deferred tax asset, as the positive objective evidence, including the three-year cumulative accounting gain, outweighed the negative subjective evidence of customer concentration and volatility in our business. As of March 31, 2015, we have not experienced a material change in our business or significant event that would change the conclusion we reached as of June 30, 2014. Results materially different from our current expectations on an ongoing basis, or significant events such as the acquisition or loss of a major customer, or the change in buying habits of our customers, could result in future additional change in the valuation allowance. We will continue to evaluate our assumptions each quarter regarding the need for a change in our valuation allowance and will make appropriate adjustments as necessary. | |||||||||||||
U.K. - During our fiscal year 2014, a change in U.K. tax law relative to treatment of research and development expenses allowed us to release $214,000 of valuation allowances against deferred tax assets that we believe are now realizable as a result of the current period tax law change. We believe that in light of this law change, we will now generate sufficient taxable income to fully utilize our net deferred tax assets in the U.K. | |||||||||||||
Japan - Our subsidiary in Japan has a long history of profitable operations, and we continue to project profitability in Japan for the foreseeable future. Therefore, we continue to believe that we will fully realize the net deferred tax assets in Japan, and no valuation allowance is needed. | |||||||||||||
Hong Kong - In prior periods, we have demonstrated both the intent and ability to remain permanently reinvested in our foreign subsidiaries. We evaluate and document this assertion each quarter. This has allowed us to utilize the indefinite reversal exception of ASC 740-30-25-18, which provides an exception to the recognition of any outside basis differences in our investment in foreign subsidiaries. The most common example of an outside basis difference is undistributed earnings of foreign subsidiaries. During the second quarter of 2014, we began to reevaluate the long-term sustainability of our Hong Kong subsidiary. While we have not reached any conclusions as of March 31, 2015, we no longer believe that we can positively assert that we will remain permanently reinvested in Hong Kong. As such, we concluded that a full valuation allowance against our Hong Kong subsidiary’s deferred tax assets continues to be warranted. ASC 740-30-25-19 requires that if circumstances change and it becomes apparent that some or all of the undistributed earnings of a subsidiary will be remitted in the foreseeable future but income taxes have not been recognized by the parent entity, the parent entity shall accrue as an expense of the current period any income taxes attributable to that remittance. We have reviewed the potential impact of the repatriation of the Hong Kong subsidiary’s earnings to the U.S. Due to significant net operating losses generated over the years by that subsidiary, we do not believe that there will be any material income taxes attributable to any remittance of earnings from the Hong Kong subsidiary. | |||||||||||||
Other Foreign Jurisdictions - We also evaluated the need for a continued full valuation allowance against our foreign deferred tax assets in other jurisdictions. We concluded that a full valuation allowance against our deferred tax assets for other foreign jurisdictions was warranted due to, among other reasons, (i) the realized cumulative accounting losses, (ii) our long history of taxable losses and (iii) our uncertainty with respect to generating future taxable income in the near term given our recently completed projections and other inherent uncertainties in our business. | |||||||||||||
Each quarter, we assess the total weight of positive and negative evidence and evaluate whether release of all or any portion of the valuation allowance is appropriate. Should we come to the conclusion that a release of our valuation allowances is required, or that additional valuation allowance is required, there could be a significant increase or decrease in net income and earnings per share in the period of release, or the additional valuation allowance, due to the impact on the tax rate. | |||||||||||||
We recorded an income tax provision of $679,000 and $733,000 during the three and nine months ended March 31, 2015, respectively. For both the three and nine months ended March 31, 2015, our income tax provision was primarily due to taxable income in the U.S., Japan, and the United Kingdom. Our U.S. tax provision is comprised primarily of non-cash deferred income tax expense; any U.S. tax provision is expected to primarily impact our net operating losses which will offset most cash taxes that would otherwise be owed. | |||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||
Adopted | |||||||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-05, Foreign Currency Matters (Topic 830) which provides guidance on a parent company’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance was effective for us beginning July 1, 2014 and did not have a material impact on our financial statements. | |||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This amendment requires entities to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward or a similar tax loss or a tax credit carryforward, unless certain conditions exist. This guidance is effective prospectively for annual reporting periods (and the interim periods within) beginning after December 15, 2013. Early adoption and retrospective application are permitted. The guidance was effective for us beginning July 1, 2014 and did not have any impact on our financial statements, as there were no net operating loss carryforwards attributable to any of our uncertain tax positions. | |||||||||||||
To Be Adopted | |||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards, the FASB issued a new standard related to revenue recognition. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will be effective for us beginning July 1, 2017 and early adoption is not permitted. We anticipate this standard may have a material impact, and we are currently evaluating the impact this standard will have on our consolidated financial statements. | |||||||||||||
On August 27, 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern; which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim period and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We do not expect this guidance to have a material impact on our financial statements or disclosures. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||
Mar. 31, 2015 | |||
Summary of Significant Accounting Policies [Abstract] | |||
Summary of Significant Accounting Policies | 2 | Summary of Significant Accounting Policies | |
Revenue Recognition Policy | |||
We generate revenue from the sale of products and services. We commence revenue recognition when all of the following conditions are met: | |||
● | persuasive evidence of an arrangement exists, | ||
● | the system has been delivered or the services have been performed, | ||
● | the fee is fixed or determinable, and | ||
● | collectability of the fee is probable. | ||
Our standard multiple-element contractual arrangements with our customers generally include the delivery of systems with multiple components of hardware and software, certain professional services that typically involve installation and consulting, and ongoing systems maintenance. Product revenue is generally recognized when the product is delivered. Professional services that are of a consultative nature may take place before, or after, delivery of the system, and installation services typically occur within 90 days after delivery of the system. Professional services revenue is typically recognized as the services are performed. Initial maintenance begins after delivery of the system and typically is provided for one to three years after delivery. Maintenance revenue is recognized ratably over the maintenance period. Our product sales are predominantly system sales whereby software and hardware function together to deliver the essential functionality of the combined product. Upon our adoption of ASU 2009-14 on July 1, 2010, sales of these systems were determined to typically be outside of the scope of the software revenue guidance in Topic 985 (previously included in SOP 97-2) and are accounted for under ASU 2009-13. | |||
Our sales model for media data intelligence (“MDI”) products includes the option for customers to purchase a perpetual license, a term license, or software as a service. Customers also have the option to purchase maintenance or managed services with their license. Revenue from these sales generally is recognized over the term of the various customer arrangements. Professional services attributable to implementation of our MDI products or managed services are essential to the customers’ use of these products and services. We defer commencement of revenue recognition for the entire arrangement until we have delivered the essential professional services or have made a determination that the remaining professional services are no longer essential to the customer. We recognize revenue for managed services and software-as-a-service arrangements once we commence providing the managed or software services and recognize the service revenue ratably over the term of the various customer contracts. In circumstances whereby we sell a term or perpetual license and maintenance or managed services, we commence revenue recognition after both the software and service are made available to the customer and recognize the revenue from the entire arrangement ratably over the longer of the term license or service period, because we do not have vendor specific objective evidence (“VSOE”) for our term licenses, maintenance, or managed services for MDI solutions. | |||
We evaluate each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within our control. Our various systems have standalone value because we have either routinely sold them on a standalone basis or we believe that our customers could resell the delivered system on a standalone basis. Professional services have standalone value because we have routinely sold them on a standalone basis, there are similar third party vendors that routinely provide similar professional services, and certain customers perform the installation themselves. Our maintenance has standalone value because we have routinely sold maintenance separately. | |||
We allocate revenue to each element in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its VSOE, if available, third party evidence (“TPE”), if VSOE is not available, or estimated selling price (“ESP”), if neither VSOE nor TPE is available. We have typically been able to establish VSOE of fair value for our maintenance and services. We determine VSOE of fair value for professional services and maintenance by examining the population of selling prices for the same or similar services when sold separately, and determining that the pricing population for each VSOE classification is within a very narrow range of the median selling price. For each element, we evaluate at least annually whether or not we have maintained VSOE of fair value based on our review of the actual selling price of each element over the previous 12 month period. | |||
Our product deliverables are typically complete systems comprised of numerous hardware and software components that operate together to provide essential functionality, and we are typically unable to establish VSOE or TPE of fair value for our products. Due to the custom nature of our products and array of available configurations, we must determine ESP at the individual component level whereby our ESP for the total system is determined based on the sum of the individual components. ESP for components of our real-time products is typically based upon list price, which is representative of our actual selling price. ESP for components of our video solutions products is based upon our most frequent selling price (“mode”) of standalone and bundled sales, based upon a 12 month historical analysis. If a mode selling price is not available, then ESP will be the median selling price of all such component sales based upon a 12 month historical analysis, unless facts and circumstances indicate that another selling price, other than the mode or median selling price, is more representative of our ESP. Our methodology for determining ESP requires judgment, and any changes to pricing practices, the costs incurred to integrate products, the nature of our relationships with our customers, and market trends could cause variability in our ESP or cause us to re-evaluate our methodology for determining ESP. We update our analysis of mode and median selling price at least annually, unless facts and circumstances indicate that more frequent analysis is required. | |||
Occasionally, we sell software under multiple element arrangements that do not include hardware. Under these software arrangements, we allocate revenue to the various elements based on VSOE of fair value. Our VSOE of fair value is determined based on the price charged when the same element is sold separately. If VSOE of fair value does not exist for all elements in a multiple element arrangement, but does exist for undelivered elements, we recognize revenue using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement is recognized as revenue. Where fair value of undelivered elements has not been established, the total arrangement is recognized over the period during which the services are performed. | |||
Fair Value Measurements | |||
The FASB Accounting Standards Codification (“ASC”) requires certain disclosures around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |||
● | Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities; | |
● | Level 2 | Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and | |
● | Level 3 | Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. | |
Our financial assets as of both March 31, 2015 and June 30, 2014 consisted of cash and money market funds. Our money market funds are highly liquid and have a maturity of three months or less, and as such are considered cash equivalents. Our cash and money market funds are both Level 1 assets and we had no other financial assets as of both March 31, 2015 and June 30, 2014. |
Basic_and_Diluted_Net_Income_p
Basic and Diluted Net Income per Share | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Basic and Diluted Net Income per Share [Abstract] | |||||||||||||||||
Basic and Diluted Net Income per Share | 3 | Basic and Diluted Net Income per Share | |||||||||||||||
Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of shares including dilutive common share equivalents. Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation. Diluted earnings per common share assumes exercise of outstanding stock options and vesting of restricted stock when the effects of such assumptions are dilutive. Common share equivalents of 128,000 and 106,000 for the three months ended March 31, 2015 and 2014, respectively, were excluded from the calculation as their effect was antidilutive. Common share equivalents of 100,000 and 112,000 for the nine months ended March 31, 2015 and 2014, respectively, were excluded from the calculation as their effect was antidilutive. | |||||||||||||||||
The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated (dollars and share data in thousands, except per-share amounts): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Basic and diluted earnings per share (EPS) calculation: | |||||||||||||||||
Net income | $ | 784 | $ | 1,082 | $ | 600 | $ | 2,905 | |||||||||
Basic weighted average number of shares outstanding | 9,096 | 8,944 | 9,058 | 8,897 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Restricted stock | 45 | 129 | 80 | 164 | |||||||||||||
Stock options | 2 | 17 | 3 | 13 | |||||||||||||
Diluted weighted average number of shares outstanding | 9,143 | 9,090 | 9,141 | 9,074 | |||||||||||||
Basic EPS | $ | 0.09 | $ | 0.12 | $ | 0.07 | $ | 0.33 | |||||||||
Diluted EPS | $ | 0.09 | $ | 0.12 | $ | 0.07 | $ | 0.32 |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Share-Based Compensation [Abstract] | |||||||||||||||||
Share-Based Compensation | 4 | Share-Based Compensation | |||||||||||||||
As of March 31, 2015, we had share-based compensation plans which are described in Note 11 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2014. We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of March 31, 2015, we had 114,198 stock options outstanding and 346,239 restricted shares outstanding. No stock options were granted or exercised during the nine months ended March 31, 2015, and 69,119 options expired or were forfeited during the nine months ended March 31, 2015. A summary of the activity of our time-based, service condition restricted shares during the nine months ended March 31, 2015, is presented below: | |||||||||||||||||
Restricted Stock Awards | Shares | Weighted | |||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at July 1, 2014 | 183,634 | $ | 6.08 | ||||||||||||||
Granted | 255,000 | 7.03 | |||||||||||||||
Vested | (86,096 | ) | 6.31 | ||||||||||||||
Forfeited | (32,186 | ) | 6.18 | ||||||||||||||
Non-vested at March 31, 2015 | 320,352 | $ | 6.77 | ||||||||||||||
During the nine months ended March 31, 2015, we released restrictions on 51,293 previously granted performance-based restricted shares, due to the achievement of performance goals attributable to our fiscal year 2014 financial results. A summary of the activity of our performance based restricted shares during the nine months ended March 31, 2015, is presented below: | |||||||||||||||||
Performance Stock Awards | Shares | Weighted | |||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at July 1, 2014 | 115,912 | $ | 5.59 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | (51,293 | ) | 5.3 | ||||||||||||||
Forfeited | (38,732 | ) | 5.82 | ||||||||||||||
Non-vested at March 31, 2015 | 25,887 | $ | 5.84 | ||||||||||||||
We recorded share-based compensation related to the issuance of restricted stock to employees and board members as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Share-based compensation expense included in the Statement of Operations: | |||||||||||||||||
Cost of sales | $ | 13 | $ | 15 | $ | 40 | $ | 43 | |||||||||
Sales and marketing | 9 | 43 | 81 | 133 | |||||||||||||
Research and development | 24 | 42 | 75 | 118 | |||||||||||||
General and administrative | 186 | 154 | 447 | 589 | |||||||||||||
Total | $ | 232 | $ | 254 | $ | 643 | $ | 883 |
Inventories
Inventories | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | 5 | Inventories | |||||||
Inventories are stated at the lower of cost or market, with cost being determined by using the first-in, first-out method. We reduce our excess and obsolete inventory to market value, if below cost, based upon historical and anticipated usage. The components of inventories are as follows (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 2,254 | $ | 1,265 | |||||
Work-in-process | 252 | 319 | |||||||
Finished goods | 1,440 | 1,688 | |||||||
Total inventory | $ | 3,946 | $ | 3,272 |
Other_Intangible_Assets
Other Intangible Assets | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Intangible Assets [Abstract] | |||||||||
Other Intangible Assets | 6 | Other Intangible Assets | |||||||
Intangible assets consist of the following (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Cost of amortizable intangibles: | |||||||||
Purchased technology | $ | 7,700 | $ | 7,700 | |||||
Customer relationships | 1,900 | 1,900 | |||||||
Patents | 129 | 101 | |||||||
Total cost of intangibles | 9,729 | 9,701 | |||||||
Less accumulated amortization: | |||||||||
Purchased technology | (7,700 | ) | (7,700 | ) | |||||
Customer relationships | (1,636 | ) | (1,506 | ) | |||||
Patents | (26 | ) | (19 | ) | |||||
Total accumulated amortization | (9,362 | ) | (9,225 | ) | |||||
Total intangible assets, net | $ | 367 | $ | 476 | |||||
Amortization expense was $137,000 and $337,000 for the nine months ended March 31, 2015 and 2014, respectively. |
Accounts_Payable_and_Accrued_E
Accounts Payable and Accrued Expenses | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounts Payable and Accrued Expenses [Abstract] | |||||||||
Accounts Payable and Accrued Expenses | 7 | Accounts Payable and Accrued Expenses | |||||||
The components of accounts payable and accrued expenses are as follows (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Accounts payable, trade | $ | 2,685 | $ | 1,838 | |||||
Accrued payroll, vacation, severance and other employee expenses | 2,824 | 4,331 | |||||||
Accrued income taxes | 62 | 221 | |||||||
Dividend payable | 107 | 67 | |||||||
Other accrued expenses | 1,420 | 1,134 | |||||||
Total accounts payable and accrued expenses | $ | 7,098 | $ | 7,591 |
Concentration_of_Credit_Risk_S
Concentration of Credit Risk, Segment, and Geographic Information | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Concentration of Credit Risk, Segment, and Geographic Information [Abstract] | |||||||||||||||||
Concentration of Credit Risk, Segment, and Geographic Information | 8 | Concentration of Credit Risk, Segment, and Geographic Information | |||||||||||||||
We operate in two segments, products and services, as disclosed within our condensed consolidated Statements of Operations. We evaluate segment results using revenues and gross margin as the performance measures. Such information is shown on the face of the accompanying Statements of Operations. We do not identify assets on a segment basis. We attribute revenues to individual countries and geographic areas based upon location of our customers. A summary of our revenues by geographic area is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
United States | $ | 9,396 | $ | 11,647 | $ | 28,645 | $ | 33,392 | |||||||||
Canada | 1,544 | 457 | 3,485 | 2,715 | |||||||||||||
Total North America | 10,940 | 12,104 | 32,130 | 36,107 | |||||||||||||
Japan | 4,622 | 2,517 | 9,887 | 7,970 | |||||||||||||
Other Asia Pacific countries | 285 | 365 | 1,230 | 2,557 | |||||||||||||
Total Asia Pacific | 4,907 | 2,882 | 11,117 | 10,527 | |||||||||||||
Europe | 1,260 | 3,183 | 7,390 | 6,570 | |||||||||||||
South America | 3 | 109 | 9 | 109 | |||||||||||||
Total revenue | $ | 17,110 | $ | 18,278 | $ | 50,646 | $ | 53,313 | |||||||||
In addition, the following summarizes revenues by significant customer where such revenue accounted for 10% or more of total revenues for any one of the indicated periods: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Customer A | <10% | 25% | 10% | 14% | |||||||||||||
Customer B | 16% | <10% | 10% | <10% | |||||||||||||
Customer C | <10% | <10% | <10% | 15% | |||||||||||||
We assess credit risk through ongoing credit evaluations of customers’ financial condition, and collateral is generally not required. The following summarizes accounts receivable by significant customers for whom accounts receivable were 10% or more of total accounts receivables for any one of the indicated periods: | |||||||||||||||||
March 31, | June 30, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Customer D | 14% | <10% | |||||||||||||||
Customer E | <10% | 15% | |||||||||||||||
Customer F | <10% | 12% | |||||||||||||||
Customer G | <10% | 11% | |||||||||||||||
There were no other customers representing 10% or more of our trade receivables at March 31, 2015 and June 30, 2014. | |||||||||||||||||
The following summarizes purchases from significant vendors where such purchases accounted for 10% or more of total purchases for any one of the indicated periods: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Vendor A | 26% | 15% | 21% | 19% | |||||||||||||
Vendor B | 23% | <10% | 20% | <10% | |||||||||||||
Vendor C | 21% | 37% | 17% | 25% |
Retirement_Plans
Retirement Plans | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Retirement Plans [Abstract] | |||||||||||||||||
Retirement Plans | 9 | Retirement Plans | |||||||||||||||
The following table provides detail of the components of net periodic benefit cost of our German subsidiary’s defined benefit pension plan for the three and nine months ended March 31, 2015 and 2014 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Service cost | $ | - | $ | - | $ | - | $ | - | |||||||||
Interest cost | 30 | 44 | 97 | 130 | |||||||||||||
Expected return on plan assets | (13 | ) | (16 | ) | (44 | ) | (46 | ) | |||||||||
Amortization of net (gain) loss | 9 | 4 | 31 | 14 | |||||||||||||
Net periodic benefit cost | $ | 26 | $ | 32 | $ | 84 | $ | 98 | |||||||||
We contributed $5,000 and $16,000 to our German subsidiary’s defined benefit pension plan during the three and nine months ended March 31, 2015, respectively, and expect to make additional, similar, quarterly contributions during the remaining quarters of our fiscal year 2015. We contributed $5,000 and $18,000 to our German subsidiary’s defined benefit pension plan during the three and nine months ended March 31, 2014, respectively. | |||||||||||||||||
We maintain a U.S. employee retirement savings plan that qualifies as a defined contribution plan under Section 401(k) of the Code. We match 50% of the first 5% of the employee’s annual salary invested by the employee in the 401(k) plan. We contributed $118,000 and $339,000 in matching funds to the 401(k) plan during the three and nine months ended March 31, 2015, respectively. We contributed $104,000 and $284,000 in matching funds to the 401(k) plan during the three and nine months ended March 31, 2014, respectively. | |||||||||||||||||
We also maintain a defined contribution plan (the “Stakeholder Plan”) for our U.K. based employees. For our U.K. based employees who contribute 4% or more of their salary to the Stakeholder Plan, we match 100% of employee contributions, up to 7% of their salary. We contributed $15,000 and $44,000 to the Stakeholder Plan during the three and nine months ended March 31, 2015, respectively. We contributed $18,000 and $52,000 to the Stakeholder Plan during the three and nine months ended March 31, 2014, respectively. |
Dividends
Dividends | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Dividends [Abstract] | |||||||||||||
Dividends | 10 | Dividends | |||||||||||
During the nine months ended March 31, 2015, our Board of Directors approved three quarterly cash dividends. The following summarizes our dividend activity during the nine months ended March 31, 2015: | |||||||||||||
Record | Payment | Dividend | |||||||||||
Date | Date | Type | Per Share | Total | |||||||||
15-Sep-14 | 29-Sep-14 | Quarterly | $ | 0.12 | $ | 1,112,000 | |||||||
16-Dec-14 | 30-Dec-14 | Quarterly | $ | 0.12 | $ | 1,137,000 | |||||||
16-Mar-15 | 30-Mar-15 | Quarterly | $ | 0.12 | $ | 1,133,000 | |||||||
Total | $ | 3,382,000 | |||||||||||
As of March 31, 2015, we have $194,000 of dividends payable to holders of restricted common stock who held restricted shares at the time of dividend record dates and still hold those restricted shares as of March 31, 2015. Such dividends will be paid when the restrictions on a holder’s restricted common shares lapse. This dividend payable is divided between current payable and non-current payable in the amounts of $107,000 and $87,000, respectively, based upon the expected vesting date of the underlying shares. These holders of restricted common stock will receive the dividend payments as long as they remain eligible at the vesting date of the shares. As the participants are not entitled to these dividends unless they complete the requisite performance criteria and service period for the shares to vest, they are not participating dividends as defined under ASC 260-10. |
Sale_of_IPv4_addresses
Sale of IPv4 addresses | 9 Months Ended | |
Mar. 31, 2015 | ||
Sale of IPv4 addresses [Abstract] | ||
Sale of IPv4 addresses | 11 | Sale of IPv4 addresses |
During the nine months ended March 31, 2015, we sold a block of non-strategic IPv4 addresses to a single buyer. This block of IPv4 addresses, which was recorded at $0 book value, has not been a material part of our ongoing operations. Our $339,000 gain on the sale of these addresses is net of broker fees incurred to consummate the transaction. We recorded the transaction as a “gain on sale of IPv4 addresses, net” as part of operating expenses within our Statement of Operations. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies [Abstract] | |||||
Commitments and Contingencies | 12 | Commitments and Contingencies | |||
From time to time, we are involved in litigation incidental to the conduct of our business. We believe that such pending litigation will not have a material adverse effect on our results of operations or financial condition. | |||||
We enter into agreements in the ordinary course of business with customers that often require us to defend and/or indemnify the customer against intellectual property infringement claims brought by a third party with respect to our products. For example, we were notified that certain of our customers have settled with or been sued by the following companies, in the noted jurisdictions, regarding the listed patents: | |||||
Asserting Party | Jurisdiction | Patents at Issue | |||
Trans Video Electronics Ltd. | U.S. District Court of Delaware | U.S. Patents Nos. 5,594,936 and | |||
5,991,801 | |||||
Constellation Technologies, LLC | U.S. District Court Eastern District of Texas | U.S. Patent Nos. 6,128,649, | |||
6,901,048, 7,154,879 and 6,845,389 | |||||
Sprint Communications Company, L.P. | U.S. District Court Eastern District of Pennsylvania | U.S. Patent Nos. 6,754,907 and | |||
6,757,907 | |||||
FutureVision.com LLC | U.S. District Court Eastern District of Texas | U.S. Patent No. 5,877,755 | |||
Broadband iTV, Inc. | U.S. District Court of Hawaii | U.S. Patent No. 7,361,336 | |||
We continue to review our potential obligations under our indemnification agreements with these customers. From time to time, we also indemnify customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, and environmental claims relating to the use of our products and services or resulting from our acts or omissions, our employees, authorized agents or subcontractors. We have not accrued any material liabilities related to such indemnifications in our financial statements and do not expect any other material costs as a result of such obligations. The maximum potential amount of future payments that we could be required to make is unlimited, and we are unable to estimate any possible loss or range of possible loss. | |||||
Pursuant to the terms of the employment agreements with our executive officers and certain other employees, employment may be terminated by either the respective executive officer or us at any time. In the event the employee voluntarily resigns (except as described below) or is terminated for cause, compensation under the employment agreement will end. In the event an agreement is terminated by us without cause or in certain circumstances constructively by us, the terminated employee will receive severance compensation for a period from 6 to 12 months, depending on the officer, in an annualized amount equal to the respective employee's base salary then in effect. In the event our CEO resigns within three months of a change in control or the CEO’s agreement is terminated by us within one year of a change of control other than for due cause, disability or non-renewal by our CEO, our CEO will be entitled to severance compensation multiplied by two, as well as incremental medical costs. Additionally, if terminated, our CEO and CFO may be entitled to bonuses during the severance period. At March 31, 2015, the maximum contingent liability under these and other executives’ agreements is $1,854,000. Our employment agreements with certain of our employees contain certain offset provisions, as defined in their respective agreements. |
Overview_of_Business_and_Basis1
Overview of Business and Basis of Presentation (Policies) | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Overview of Business and Basis of Presentation [Abstract] | |||||||||||||
Smaller Reporting Company | Smaller Reporting Company | ||||||||||||
We meet the Securities and Exchange Commission’s (“SEC’s”) definition of a “Smaller Reporting Company,” and therefore qualify for the SEC’s reduced disclosure requirements for smaller reporting companies. | |||||||||||||
Immaterial Restatement of Previously Issued Financial Statements | Immaterial Restatement of Previously Issued Financial Statements | ||||||||||||
Subsequent to the issuance of our fiscal year 2014 Consolidated Financial Statements, we identified an error in the Consolidated Statement of Cash Flows relating to the presentation of spare parts purchases used to support our obligations under customer contracts. Cash outflows of $444,000 for the nine months ended March 31, 2014 were improperly classified as investing rather than as operating activities in the Consolidated Statements of Cash Flows. We have evaluated the effects of these misstatements for each of these periods and concluded that none of these periods are materially misstated. Notwithstanding, we have corrected the accompanying cash flow presentation for the nine months ended March 31, 2014 and will correct the applicable comparable prior periods in our future filings. | |||||||||||||
The impact of this error on our previously issued Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2014 is presented below (in thousands): | |||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||
for the nine months ended March 31, 2014 | |||||||||||||
As Previously | Adjustments | As Restated | |||||||||||
Reported | |||||||||||||
Depreciation and amortization | $ | 1,795 | $ | (221 | ) | $ | 1,574 | ||||||
Inventory provision | 33 | 221 | 254 | ||||||||||
Other long-term assets, net | (32 | ) | (444 | ) | (476 | ) | |||||||
Net cash used in operating activities | $ | (638 | ) | $ | (444 | ) | $ | (1,082 | ) | ||||
Additions to property and equipment | $ | (1,291 | ) | $ | 444 | $ | (847 | ) | |||||
Net cash used in investing activities | $ | (1,291 | ) | $ | 444 | $ | (847 | ) | |||||
Additionally, and in connection with the correction noted above, we have reclassified $913,000 of non-current spare parts from property and equipment, net on our June 30, 2014 balance sheet, to other long-term assets to conform to the March 31, 2015 presentation. Related depreciation is included in cost of sales in our income statement. | |||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
As of June 30, 2014, we had U.S. federal net operating loss carryforwards of approximately $94.4 million for income tax purposes, of which none expire in fiscal year 2015, and the remainder expire at various dates through 2034. We completed an evaluation of the potential effect of Section 382 of the Internal Revenue Code of 1986 (the “Code”) on our ability to utilize these net operating losses. The study concluded that we have not had an ownership change for the period from July 22, 1993 to June 30, 2014. | |||||||||||||
Realization of our deferred tax assets is dependent primarily on the generation of future taxable income. In considering the need for a valuation allowance, we consider our historical and future projected operations along with other positive and negative evidence in assessing if sufficient future taxable income will be generated to use the existing deferred tax assets. The following summarizes our conclusions on the need for a valuation allowance in each jurisdiction as of March 31, 2015: | |||||||||||||
U.S. - As of June 30, 2014, we had realized a three-year cumulative accounting profit in the U.S. adjusted for permanent differences and other non-recurring events, including the 2013 gain on the sale of certain patents, and adjusting for the loss of a long time customer. This three-year period is the standard period by which we initially assess each jurisdiction and is strong objective evidence, whether positive or negative, to be considered in the release or recording of any valuation allowance. In determining whether or not to release valuation allowance for the U.S. jurisdiction we considered positive evidence including the three year cumulative accounting profit, current projections of future profitability, lack of any significant claims or loss contingencies, and positive cash from operations. Negative evidence considered includes significant volatility in our operations, history of NOLs expiring unused, concentration of our customer base including the risk of global consolidation in the cable industry, and the loss of a long-time customer in the current year. Based on our analysis of both positive and negative evidence, we concluded during the fourth quarter of our fiscal year 2014 that it is now more likely than not that we will realize a portion of our U.S. deferred tax asset, as the positive objective evidence, including the three-year cumulative accounting gain, outweighed the negative subjective evidence of customer concentration and volatility in our business. As of March 31, 2015, we have not experienced a material change in our business or significant event that would change the conclusion we reached as of June 30, 2014. Results materially different from our current expectations on an ongoing basis, or significant events such as the acquisition or loss of a major customer, or the change in buying habits of our customers, could result in future additional change in the valuation allowance. We will continue to evaluate our assumptions each quarter regarding the need for a change in our valuation allowance and will make appropriate adjustments as necessary. | |||||||||||||
U.K. - During our fiscal year 2014, a change in U.K. tax law relative to treatment of research and development expenses allowed us to release $214,000 of valuation allowances against deferred tax assets that we believe are now realizable as a result of the current period tax law change. We believe that in light of this law change, we will now generate sufficient taxable income to fully utilize our net deferred tax assets in the U.K. | |||||||||||||
Japan - Our subsidiary in Japan has a long history of profitable operations, and we continue to project profitability in Japan for the foreseeable future. Therefore, we continue to believe that we will fully realize the net deferred tax assets in Japan, and no valuation allowance is needed. | |||||||||||||
Hong Kong - In prior periods, we have demonstrated both the intent and ability to remain permanently reinvested in our foreign subsidiaries. We evaluate and document this assertion each quarter. This has allowed us to utilize the indefinite reversal exception of ASC 740-30-25-18, which provides an exception to the recognition of any outside basis differences in our investment in foreign subsidiaries. The most common example of an outside basis difference is undistributed earnings of foreign subsidiaries. During the second quarter of 2014, we began to reevaluate the long-term sustainability of our Hong Kong subsidiary. While we have not reached any conclusions as of March 31, 2015, we no longer believe that we can positively assert that we will remain permanently reinvested in Hong Kong. As such, we concluded that a full valuation allowance against our Hong Kong subsidiary’s deferred tax assets continues to be warranted. ASC 740-30-25-19 requires that if circumstances change and it becomes apparent that some or all of the undistributed earnings of a subsidiary will be remitted in the foreseeable future but income taxes have not been recognized by the parent entity, the parent entity shall accrue as an expense of the current period any income taxes attributable to that remittance. We have reviewed the potential impact of the repatriation of the Hong Kong subsidiary’s earnings to the U.S. Due to significant net operating losses generated over the years by that subsidiary, we do not believe that there will be any material income taxes attributable to any remittance of earnings from the Hong Kong subsidiary. | |||||||||||||
Other Foreign Jurisdictions - We also evaluated the need for a continued full valuation allowance against our foreign deferred tax assets in other jurisdictions. We concluded that a full valuation allowance against our deferred tax assets for other foreign jurisdictions was warranted due to, among other reasons, (i) the realized cumulative accounting losses, (ii) our long history of taxable losses and (iii) our uncertainty with respect to generating future taxable income in the near term given our recently completed projections and other inherent uncertainties in our business. | |||||||||||||
Each quarter, we assess the total weight of positive and negative evidence and evaluate whether release of all or any portion of the valuation allowance is appropriate. Should we come to the conclusion that a release of our valuation allowances is required, or that additional valuation allowance is required, there could be a significant increase or decrease in net income and earnings per share in the period of release, or the additional valuation allowance, due to the impact on the tax rate. | |||||||||||||
We recorded an income tax provision of $679,000 and $733,000 during the three and nine months ended March 31, 2015, respectively. For both the three and nine months ended March 31, 2015, our income tax provision was primarily due to taxable income in the U.S., Japan, and the United Kingdom. Our U.S. tax provision is comprised primarily of non-cash deferred income tax expense; any U.S. tax provision is expected to primarily impact our net operating losses which will offset most cash taxes that would otherwise be owed. | |||||||||||||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | ||||||||||||
Adopted | |||||||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-05, Foreign Currency Matters (Topic 830) which provides guidance on a parent company’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance was effective for us beginning July 1, 2014 and did not have a material impact on our financial statements. | |||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This amendment requires entities to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward or a similar tax loss or a tax credit carryforward, unless certain conditions exist. This guidance is effective prospectively for annual reporting periods (and the interim periods within) beginning after December 15, 2013. Early adoption and retrospective application are permitted. The guidance was effective for us beginning July 1, 2014 and did not have any impact on our financial statements, as there were no net operating loss carryforwards attributable to any of our uncertain tax positions. | |||||||||||||
To Be Adopted | |||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards, the FASB issued a new standard related to revenue recognition. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will be effective for us beginning July 1, 2017 and early adoption is not permitted. We anticipate this standard may have a material impact, and we are currently evaluating the impact this standard will have on our consolidated financial statements. | |||||||||||||
On August 27, 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern; which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim period and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We do not expect this guidance to have a material impact on our financial statements or disclosures. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||
Mar. 31, 2015 | |||
Summary of Significant Accounting Policies [Abstract] | |||
Revenue Recognition Policy | Revenue Recognition Policy | ||
We generate revenue from the sale of products and services. We commence revenue recognition when all of the following conditions are met: | |||
● | persuasive evidence of an arrangement exists, | ||
● | the system has been delivered or the services have been performed, | ||
● | the fee is fixed or determinable, and | ||
● | collectability of the fee is probable. | ||
Our standard multiple-element contractual arrangements with our customers generally include the delivery of systems with multiple components of hardware and software, certain professional services that typically involve installation and consulting, and ongoing systems maintenance. Product revenue is generally recognized when the product is delivered. Professional services that are of a consultative nature may take place before, or after, delivery of the system, and installation services typically occur within 90 days after delivery of the system. Professional services revenue is typically recognized as the services are performed. Initial maintenance begins after delivery of the system and typically is provided for one to three years after delivery. Maintenance revenue is recognized ratably over the maintenance period. Our product sales are predominantly system sales whereby software and hardware function together to deliver the essential functionality of the combined product. Upon our adoption of ASU 2009-14 on July 1, 2010, sales of these systems were determined to typically be outside of the scope of the software revenue guidance in Topic 985 (previously included in SOP 97-2) and are accounted for under ASU 2009-13. | |||
Our sales model for media data intelligence (“MDI”) products includes the option for customers to purchase a perpetual license, a term license, or software as a service. Customers also have the option to purchase maintenance or managed services with their license. Revenue from these sales generally is recognized over the term of the various customer arrangements. Professional services attributable to implementation of our MDI products or managed services are essential to the customers’ use of these products and services. We defer commencement of revenue recognition for the entire arrangement until we have delivered the essential professional services or have made a determination that the remaining professional services are no longer essential to the customer. We recognize revenue for managed services and software-as-a-service arrangements once we commence providing the managed or software services and recognize the service revenue ratably over the term of the various customer contracts. In circumstances whereby we sell a term or perpetual license and maintenance or managed services, we commence revenue recognition after both the software and service are made available to the customer and recognize the revenue from the entire arrangement ratably over the longer of the term license or service period, because we do not have vendor specific objective evidence (“VSOE”) for our term licenses, maintenance, or managed services for MDI solutions. | |||
We evaluate each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within our control. Our various systems have standalone value because we have either routinely sold them on a standalone basis or we believe that our customers could resell the delivered system on a standalone basis. Professional services have standalone value because we have routinely sold them on a standalone basis, there are similar third party vendors that routinely provide similar professional services, and certain customers perform the installation themselves. Our maintenance has standalone value because we have routinely sold maintenance separately. | |||
We allocate revenue to each element in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its VSOE, if available, third party evidence (“TPE”), if VSOE is not available, or estimated selling price (“ESP”), if neither VSOE nor TPE is available. We have typically been able to establish VSOE of fair value for our maintenance and services. We determine VSOE of fair value for professional services and maintenance by examining the population of selling prices for the same or similar services when sold separately, and determining that the pricing population for each VSOE classification is within a very narrow range of the median selling price. For each element, we evaluate at least annually whether or not we have maintained VSOE of fair value based on our review of the actual selling price of each element over the previous 12 month period. | |||
Our product deliverables are typically complete systems comprised of numerous hardware and software components that operate together to provide essential functionality, and we are typically unable to establish VSOE or TPE of fair value for our products. Due to the custom nature of our products and array of available configurations, we must determine ESP at the individual component level whereby our ESP for the total system is determined based on the sum of the individual components. ESP for components of our real-time products is typically based upon list price, which is representative of our actual selling price. ESP for components of our video solutions products is based upon our most frequent selling price (“mode”) of standalone and bundled sales, based upon a 12 month historical analysis. If a mode selling price is not available, then ESP will be the median selling price of all such component sales based upon a 12 month historical analysis, unless facts and circumstances indicate that another selling price, other than the mode or median selling price, is more representative of our ESP. Our methodology for determining ESP requires judgment, and any changes to pricing practices, the costs incurred to integrate products, the nature of our relationships with our customers, and market trends could cause variability in our ESP or cause us to re-evaluate our methodology for determining ESP. We update our analysis of mode and median selling price at least annually, unless facts and circumstances indicate that more frequent analysis is required. | |||
Occasionally, we sell software under multiple element arrangements that do not include hardware. Under these software arrangements, we allocate revenue to the various elements based on VSOE of fair value. Our VSOE of fair value is determined based on the price charged when the same element is sold separately. If VSOE of fair value does not exist for all elements in a multiple element arrangement, but does exist for undelivered elements, we recognize revenue using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement is recognized as revenue. Where fair value of undelivered elements has not been established, the total arrangement is recognized over the period during which the services are performed. | |||
Fair Value Measurements | Fair Value Measurements | ||
The FASB Accounting Standards Codification (“ASC”) requires certain disclosures around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |||
● | Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities; | |
● | Level 2 | Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and | |
● | Level 3 | Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. | |
Our financial assets as of both March 31, 2015 and June 30, 2014 consisted of cash and money market funds. Our money market funds are highly liquid and have a maturity of three months or less, and as such are considered cash equivalents. Our cash and money market funds are both Level 1 assets and we had no other financial assets as of both March 31, 2015 and June 30, 2014. |
Overview_of_Business_and_Basis2
Overview of Business and Basis of Presentation (Tables) | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Overview of Business and Basis of Presentation [Abstract] | |||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | The impact of this error on our previously issued Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2014 is presented below (in thousands): | ||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||
for the nine months ended March 31, 2014 | |||||||||||||
As Previously | Adjustments | As Restated | |||||||||||
Reported | |||||||||||||
Depreciation and amortization | $ | 1,795 | $ | (221 | ) | $ | 1,574 | ||||||
Inventory provision | 33 | 221 | 254 | ||||||||||
Other long-term assets, net | (32 | ) | (444 | ) | (476 | ) | |||||||
Net cash used in operating activities | $ | (638 | ) | $ | (444 | ) | $ | (1,082 | ) | ||||
Additions to property and equipment | $ | (1,291 | ) | $ | 444 | $ | (847 | ) | |||||
Net cash used in investing activities | $ | (1,291 | ) | $ | 444 | $ | (847 | ) |
Basic_and_Diluted_Net_Income_p1
Basic and Diluted Net Income per Share (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Basic and Diluted Net Income per Share [Abstract] | |||||||||||||||||
Reconciliation of numerators and denominators of basic and diluted net loss per share | The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated (dollars and share data in thousands, except per-share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Basic and diluted earnings per share (EPS) calculation: | |||||||||||||||||
Net income | $ | 784 | $ | 1,082 | $ | 600 | $ | 2,905 | |||||||||
Basic weighted average number of shares outstanding | 9,096 | 8,944 | 9,058 | 8,897 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Restricted stock | 45 | 129 | 80 | 164 | |||||||||||||
Stock options | 2 | 17 | 3 | 13 | |||||||||||||
Diluted weighted average number of shares outstanding | 9,143 | 9,090 | 9,141 | 9,074 | |||||||||||||
Basic EPS | $ | 0.09 | $ | 0.12 | $ | 0.07 | $ | 0.33 | |||||||||
Diluted EPS | $ | 0.09 | $ | 0.12 | $ | 0.07 | $ | 0.32 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Summary of share based compensation expense allocation | We recorded share-based compensation related to the issuance of restricted stock to employees and board members as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Share-based compensation expense included in the Statement of Operations: | |||||||||||||||||
Cost of sales | $ | 13 | $ | 15 | $ | 40 | $ | 43 | |||||||||
Sales and marketing | 9 | 43 | 81 | 133 | |||||||||||||
Research and development | 24 | 42 | 75 | 118 | |||||||||||||
General and administrative | 186 | 154 | 447 | 589 | |||||||||||||
Total | $ | 232 | $ | 254 | $ | 643 | $ | 883 | |||||||||
Service Based Restricted Shares [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Summary of activity of restricted shares | A summary of the activity of our time-based, service condition restricted shares during the nine months ended March 31, 2015, is presented below: | ||||||||||||||||
Restricted Stock Awards | Shares | Weighted | |||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at July 1, 2014 | 183,634 | $ | 6.08 | ||||||||||||||
Granted | 255,000 | 7.03 | |||||||||||||||
Vested | (86,096 | ) | 6.31 | ||||||||||||||
Forfeited | (32,186 | ) | 6.18 | ||||||||||||||
Non-vested at March 31, 2015 | 320,352 | $ | 6.77 | ||||||||||||||
Performance Based Restricted Shares [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Summary of activity of restricted shares | A summary of the activity of our performance based restricted shares during the nine months ended March 31, 2015, is presented below: | ||||||||||||||||
Performance Stock Awards | Shares | Weighted | |||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at July 1, 2014 | 115,912 | $ | 5.59 | ||||||||||||||
Granted | - | - | |||||||||||||||
Vested | (51,293 | ) | 5.3 | ||||||||||||||
Forfeited | (38,732 | ) | 5.82 | ||||||||||||||
Non-vested at March 31, 2015 | 25,887 | $ | 5.84 |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Components of inventories | The components of inventories are as follows (in thousands): | ||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 2,254 | $ | 1,265 | |||||
Work-in-process | 252 | 319 | |||||||
Finished goods | 1,440 | 1,688 | |||||||
Total inventory | $ | 3,946 | $ | 3,272 |
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Intangible Assets [Abstract] | |||||||||
Schedule of intangible assets | Intangible assets consist of the following (in thousands): | ||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Cost of amortizable intangibles: | |||||||||
Purchased technology | $ | 7,700 | $ | 7,700 | |||||
Customer relationships | 1,900 | 1,900 | |||||||
Patents | 129 | 101 | |||||||
Total cost of intangibles | 9,729 | 9,701 | |||||||
Less accumulated amortization: | |||||||||
Purchased technology | (7,700 | ) | (7,700 | ) | |||||
Customer relationships | (1,636 | ) | (1,506 | ) | |||||
Patents | (26 | ) | (19 | ) | |||||
Total accumulated amortization | (9,362 | ) | (9,225 | ) | |||||
Total intangible assets, net | $ | 367 | $ | 476 |
Accounts_Payable_and_Accrued_E1
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounts Payable and Accrued Expenses [Abstract] | |||||||||
Components of accounts payable and accrued expenses | The components of accounts payable and accrued expenses are as follows (in thousands): | ||||||||
March 31, | June 30, | ||||||||
2015 | 2014 | ||||||||
Accounts payable, trade | $ | 2,685 | $ | 1,838 | |||||
Accrued payroll, vacation, severance and other employee expenses | 2,824 | 4,331 | |||||||
Accrued income taxes | 62 | 221 | |||||||
Dividend payable | 107 | 67 | |||||||
Other accrued expenses | 1,420 | 1,134 | |||||||
Total accounts payable and accrued expenses | $ | 7,098 | $ | 7,591 |
Concentration_of_Credit_Risk_S1
Concentration of Credit Risk, Segment, and Geographic Information (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Concentration of Credit Risk, Segment, and Geographic Information [Abstract] | |||||||||||||||||
Summary of revenues by geographic area | A summary of our revenues by geographic area is as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
United States | $ | 9,396 | $ | 11,647 | $ | 28,645 | $ | 33,392 | |||||||||
Canada | 1,544 | 457 | 3,485 | 2,715 | |||||||||||||
Total North America | 10,940 | 12,104 | 32,130 | 36,107 | |||||||||||||
Japan | 4,622 | 2,517 | 9,887 | 7,970 | |||||||||||||
Other Asia Pacific countries | 285 | 365 | 1,230 | 2,557 | |||||||||||||
Total Asia Pacific | 4,907 | 2,882 | 11,117 | 10,527 | |||||||||||||
Europe | 1,260 | 3,183 | 7,390 | 6,570 | |||||||||||||
South America | 3 | 109 | 9 | 109 | |||||||||||||
Total revenue | $ | 17,110 | $ | 18,278 | $ | 50,646 | $ | 53,313 | |||||||||
Summary of revenues by significant customers | In addition, the following summarizes revenues by significant customer where such revenue accounted for 10% or more of total revenues for any one of the indicated periods: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Customer A | <10% | 25% | 10% | 14% | |||||||||||||
Customer B | 16% | <10% | 10% | <10% | |||||||||||||
Customer C | <10% | <10% | <10% | 15% | |||||||||||||
Summary of significant accounts receivable | The following summarizes accounts receivable by significant customers for whom accounts receivable were 10% or more of total accounts receivables for any one of the indicated periods: | ||||||||||||||||
March 31, | June 30, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Customer D | 14% | <10% | |||||||||||||||
Customer E | <10% | 15% | |||||||||||||||
Customer F | <10% | 12% | |||||||||||||||
Customer G | <10% | 11% | |||||||||||||||
Summary of purchases by significant vendor | The following summarizes purchases from significant vendors where such purchases accounted for 10% or more of total purchases for any one of the indicated periods: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Vendor A | 26% | 15% | 21% | 19% | |||||||||||||
Vendor B | 23% | <10% | 20% | <10% | |||||||||||||
Vendor C | 21% | 37% | 17% | 25% |
Retirement_Plans_Tables
Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Retirement Plans [Abstract] | |||||||||||||||||
Components of net periodic benefit cost | The following table provides detail of the components of net periodic benefit cost of our German subsidiary’s defined benefit pension plan for the three and nine months ended March 31, 2015 and 2014 (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Service cost | $ | - | $ | - | $ | - | $ | - | |||||||||
Interest cost | 30 | 44 | 97 | 130 | |||||||||||||
Expected return on plan assets | (13 | ) | (16 | ) | (44 | ) | (46 | ) | |||||||||
Amortization of net (gain) loss | 9 | 4 | 31 | 14 | |||||||||||||
Net periodic benefit cost | $ | 26 | $ | 32 | $ | 84 | $ | 98 |
Dividends_Tables
Dividends (Tables) | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Dividends [Abstract] | |||||||||||||
Summary of dividend activity | The following summarizes our dividend activity during the nine months ended March 31, 2015: | ||||||||||||
Record | Payment | Dividend | |||||||||||
Date | Date | Type | Per Share | Total | |||||||||
15-Sep-14 | 29-Sep-14 | Quarterly | $ | 0.12 | $ | 1,112,000 | |||||||
16-Dec-14 | 30-Dec-14 | Quarterly | $ | 0.12 | $ | 1,137,000 | |||||||
16-Mar-15 | 30-Mar-15 | Quarterly | $ | 0.12 | $ | 1,133,000 | |||||||
Total | $ | 3,382,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies [Abstract] | |||||
Patent infringement claims | For example, we were notified that certain of our customers have settled with or been sued by the following companies, in the noted jurisdictions, regarding the listed patents: | ||||
Asserting Party | Jurisdiction | Patents at Issue | |||
Trans Video Electronics Ltd. | U.S. District Court of Delaware | U.S. Patents Nos. 5,594,936 and | |||
5,991,801 | |||||
Constellation Technologies, LLC | U.S. District Court Eastern District of Texas | U.S. Patent Nos. 6,128,649, | |||
6,901,048, 7,154,879 and 6,845,389 | |||||
Sprint Communications Company, L.P. | U.S. District Court Eastern District of Pennsylvania | U.S. Patent Nos. 6,754,907 and | |||
6,757,907 | |||||
FutureVision.com LLC | U.S. District Court Eastern District of Texas | U.S. Patent No. 5,877,755 | |||
Broadband iTV, Inc. | U.S. District Court of Hawaii | U.S. Patent No. 7,361,336 |
Overview_of_Business_and_Basis3
Overview of Business and Basis of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | |
Segment | |||||
Overview of Business and Basis of Presentation [Abstract] | |||||
Number of reportable segments | 2 | ||||
Operating loss carryforwards | $94,400,000 | ||||
Net operating loss carryforwards expiration year | 31-Dec-34 | ||||
Valuation allowances against deferred tax assets | 214,000 | 214,000 | |||
Income tax provision | 679,000 | 140,000 | 733,000 | 160,000 | |
Condensed Consolidated Balance Sheets (Unaudited) [Abstract] | |||||
Property, plant and equipment, net | 2,411,000 | 2,411,000 | 2,168,000 | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract] | |||||
Depreciation and amortization | 1,317,000 | 1,574,000 | |||
Inventory provision | 549,000 | 254,000 | |||
Other long-term assets, net | -373,000 | -476,000 | |||
Net cash used in operating activities | 3,485,000 | -1,082,000 | |||
Additions to property and equipment | -1,505,000 | -847,000 | |||
Net cash used in investing activities | -1,166,000 | -847,000 | |||
As Previously Reported [Member] | |||||
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract] | |||||
Depreciation and amortization | 1,795,000 | ||||
Inventory provision | 33,000 | ||||
Other long-term assets, net | -32,000 | ||||
Net cash used in operating activities | -638,000 | ||||
Additions to property and equipment | -1,291,000 | ||||
Net cash used in investing activities | -1,291,000 | ||||
Adjustments [Member] | |||||
Condensed Consolidated Balance Sheets (Unaudited) [Abstract] | |||||
Property, plant and equipment, net | 913,000 | ||||
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract] | |||||
Depreciation and amortization | -221,000 | ||||
Inventory provision | 221,000 | ||||
Other long-term assets, net | -444,000 | ||||
Net cash used in operating activities | -444,000 | ||||
Additions to property and equipment | 444,000 | ||||
Net cash used in investing activities | $444,000 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Number of days in delivery period following sale of system | 90 days |
Minimum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Maintenance Period | 1 year |
Maximum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Maintenance Period | 3 years |
Basic_and_Diluted_Net_Income_p2
Basic and Diluted Net Income per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Basic and Diluted Net Income per Share [Abstract] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 128,000 | 106,000 | 100,000 | 112,000 |
Basic and diluted earnings per share (EPS) calculation [Abstract] | ||||
Net income | $784 | $1,082 | $600 | $2,905 |
Basic weighted average number of shares outstanding (in shares) | 9,096 | 8,944 | 9,058 | 8,897 |
Effect of dilutive securities [Abstract] | ||||
Diluted weighted average number of shares outstanding (in shares) | 9,143 | 9,090 | 9,141 | 9,074 |
Basic EPS (in dollars per share) | $0.09 | $0.12 | $0.07 | $0.33 |
Diluted EPS (in dollars per share) | $0.09 | $0.12 | $0.07 | $0.32 |
Restricted Stock [Member] | ||||
Effect of dilutive securities [Abstract] | ||||
Effect of dilutive securities (in shares) | 45 | 129 | 80 | 164 |
Stock Options [Member] | ||||
Effect of dilutive securities [Abstract] | ||||
Effect of dilutive securities (in shares) | 2 | 17 | 3 | 13 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) | 9 Months Ended |
Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding (in shares) | 114,198 |
Options granted (in shares) | 0 |
Options exercised (in shares) | 0 |
Options expired or forfeited (in shares) | 69,119 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted shares outstanding (in shares) | 346,239 |
ShareBased_Compensation_Summar
Share-Based Compensation (Summary Of Activity Of Restricted Shares) (Details) (USD $) | 9 Months Ended |
Mar. 31, 2015 | |
Service Based Restricted Shares [Member] | |
Shares [Roll Forward] | |
Non-vested, Shares (in shares) | 183,634 |
Granted, Shares (in shares) | 255,000 |
Vested, Shares (in shares) | -86,096 |
Forfeited, Shares (in shares) | -32,186 |
Non-vested, Shares (in shares) | 320,352 |
Weighted- Average Grant-Date Fair-Value [Roll Forward] | |
Non-vested, Weighted Average Grant Date Fair Value (in dollars per share) | $6.08 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $7.03 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $6.31 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $6.18 |
Non-vested, Weighted Average Grant Date Fair Value (in dollars per share) | $6.77 |
Performance Based Restricted Shares [Member] | |
Shares [Roll Forward] | |
Non-vested, Shares (in shares) | 115,912 |
Granted, Shares (in shares) | 0 |
Vested, Shares (in shares) | -51,293 |
Forfeited, Shares (in shares) | -38,732 |
Non-vested, Shares (in shares) | 25,887 |
Weighted- Average Grant-Date Fair-Value [Roll Forward] | |
Non-vested, Weighted Average Grant Date Fair Value (in dollars per share) | $5.59 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $0 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $5.30 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $5.82 |
Non-vested, Weighted Average Grant Date Fair Value (in dollars per share) | $5.84 |
ShareBased_Compensation_Summar1
Share-Based Compensation (Summary Of Share Based Compensation Expense Allocation) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $232 | $254 | $643 | $883 |
Cost of Sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 13 | 15 | 40 | 43 |
Sales and Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 9 | 43 | 81 | 133 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 24 | 42 | 75 | 118 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $186 | $154 | $447 | $589 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials | $2,254 | $1,265 |
Work-in-process | 252 | 319 |
Finished goods | 1,440 | 1,688 |
Total inventory | $3,946 | $3,272 |
Other_Intangible_Assets_Detail
Other Intangible Assets (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Total cost of intangibles | $9,729 | $9,701 | |
Total accumulated amortization | -9,362 | -9,225 | |
Total intangible assets, net | 367 | 476 | |
Amortization expense | 137,000 | 337,000 | |
Purchased Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost of intangibles | 7,700 | 7,700 | |
Total accumulated amortization | -7,700 | -7,700 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost of intangibles | 1,900 | 1,900 | |
Total accumulated amortization | -1,636 | -1,506 | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost of intangibles | 129 | 101 | |
Total accumulated amortization | ($26) | ($19) |
Accounts_Payable_and_Accrued_E2
Accounts Payable and Accrued Expenses (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Accounts Payable and Accrued Expenses [Abstract] | ||
Accounts payable, trade | $2,685,000 | $1,838,000 |
Accrued payroll, vacation, severance and other employee expenses | 2,824,000 | 4,331,000 |
Accrued income taxes | 62,000 | 221,000 |
Dividend payable | 107,000 | 67,000 |
Other accrued expenses | 1,420,000 | 1,134,000 |
Total accounts payable and accrued expenses | $7,098,000 | $7,591,000 |
Concentration_of_Credit_Risk_S2
Concentration of Credit Risk, Segment, and Geographic Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 |
Segment | |||||
Concentration of Credit Risk, Segment, and Geographic Information [Abstract] | |||||
Number of operating segments | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Revenues | $17,110 | $18,278 | $50,646 | $53,313 | |
Vendor A [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 26.00% | 15.00% | 21.00% | 19.00% | |
Vendor B [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 23.00% | 20.00% | |||
Vendor C [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 21.00% | 37.00% | 17.00% | 25.00% | |
Customer A [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 25.00% | 10.00% | 14.00% | ||
Customer B [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 16.00% | 10.00% | |||
Customer C [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 15.00% | ||||
Accounts Receivable [Member] | Customer D [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 14.00% | ||||
Accounts Receivable [Member] | Customer E [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 15.00% | ||||
Accounts Receivable [Member] | Customer F [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 12.00% | ||||
Accounts Receivable [Member] | Customer G [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 11.00% | ||||
Maximum [Member] | Vendor B [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 10.00% | 10.00% | |||
Maximum [Member] | Customer A [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 10.00% | ||||
Maximum [Member] | Customer B [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 10.00% | 10.00% | |||
Maximum [Member] | Customer C [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 10.00% | 10.00% | 10.00% | ||
Maximum [Member] | Accounts Receivable [Member] | Customer D [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 10.00% | ||||
Maximum [Member] | Accounts Receivable [Member] | Customer E [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 10.00% | ||||
Maximum [Member] | Accounts Receivable [Member] | Customer F [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 10.00% | ||||
Maximum [Member] | Accounts Receivable [Member] | Customer G [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in hundredths) | 10.00% | ||||
Reportable Geographical Components [Member] | United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,396 | 11,647 | 28,645 | 33,392 | |
Reportable Geographical Components [Member] | Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,544 | 457 | 3,485 | 2,715 | |
Reportable Geographical Components [Member] | Total North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 10,940 | 12,104 | 32,130 | 36,107 | |
Reportable Geographical Components [Member] | Japan [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4,622 | 2,517 | 9,887 | 7,970 | |
Reportable Geographical Components [Member] | Other Asia Pacific Countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 285 | 365 | 1,230 | 2,557 | |
Reportable Geographical Components [Member] | Total Asia Pacific [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4,907 | 2,882 | 11,117 | 10,527 | |
Reportable Geographical Components [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,260 | 3,183 | 7,390 | 6,570 | |
Reportable Geographical Components [Member] | South America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $3 | $109 | $9 | $109 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Retirement Plans [Abstract] | ||||
Service cost | $0 | $0 | $0 | $0 |
Interest cost | 30,000 | 44,000 | 97,000 | 130,000 |
Expected return on plan assets | -13,000 | -16,000 | -44,000 | -46,000 |
Amortization of net (gain) loss | 9,000 | 4,000 | 31,000 | 14,000 |
Net periodic benefit cost | 26,000 | 32,000 | 84,000 | 98,000 |
German Subsidiary Defined Benefit Plan [Member] | ||||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ||||
Employer contributions | 5,000 | 5,000 | 16,000 | 18,000 |
United States Defined Contribution Plan [Member] | ||||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ||||
Employer contributions | 118,000 | 104,000 | 339,000 | 284,000 |
Employer matching contribution (in hundredths) | 50.00% | |||
Employee contribution subject to employer match (in hundredths) | 5.00% | |||
United Kingdom Defined Contribution Plan [Member] | ||||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ||||
Employer contributions | $15,000 | $18,000 | $44,000 | $52,000 |
Employee contribution subject to employer match (in hundredths) | 100.00% | |||
Minimum [Member] | United Kingdom Defined Contribution Plan [Member] | ||||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ||||
Employer matching contribution (in hundredths) | 4.00% | |||
Maximum [Member] | United Kingdom Defined Contribution Plan [Member] | ||||
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ||||
Employer matching contribution (in hundredths) | 7.00% |
Dividends_Details
Dividends (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | |
Dividends Payable [Line Items] | |||||
Dividend Per Share (in dollars per share) | $0.12 | $0.12 | $0.36 | $0.36 | |
Dividends | $3,382,000 | ||||
Dividends Payable | 194,000 | 194,000 | |||
Current dividends payable | 107,000 | 107,000 | 67,000 | ||
Noncurrent dividends payable | 87,000 | 87,000 | |||
First Quarter Dividend [Member] | |||||
Dividends Payable [Line Items] | |||||
Record Date | 15-Sep-14 | ||||
Payment Date | 29-Sep-14 | ||||
Type | Quarterly | ||||
Dividend Per Share (in dollars per share) | $0.12 | ||||
Dividends | 1,112,000 | ||||
Second Quarter Dividend [Member] | |||||
Dividends Payable [Line Items] | |||||
Record Date | 16-Dec-14 | ||||
Payment Date | 30-Dec-14 | ||||
Type | Quarterly | ||||
Dividend Per Share (in dollars per share) | $0.12 | ||||
Dividends | 1,137,000 | ||||
Third Quarter Dividend [Member] | |||||
Dividends Payable [Line Items] | |||||
Record Date | 16-Mar-15 | ||||
Payment Date | 30-Mar-15 | ||||
Type | Quarterly | ||||
Dividend Per Share (in dollars per share) | $0.12 | ||||
Dividends | $1,133,000 |
Sale_of_IPv4_addresses_Details
Sale of IPv4 addresses (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||||
Book value of Intangible assets | $367 | $367 | $476 | ||
Gain on sale of IPv4 addresses, net | 0 | 0 | 339 | 0 | |
IPv4 Addresses [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Book value of Intangible assets | $0 | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
Mar. 31, 2015 | |
Loss Contingencies [Line Items] | |
Contingent liability under employment contract agreements | 1,854,000 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Terminated employees severance compensation payment period | 6 months |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Terminated employees severance compensation payment period | 12 months |
Term of termination CEO resigns within period of a change of control | 3 months |
Term of termination, CEO is terminated by company within period of a change of control | 1 year |
Commitments_and_Contingencies_2
Commitments and Contingencies, Litigation (Details) | 9 Months Ended |
Mar. 31, 2015 | |
Trans Video Electronics Ltd. [Member] | |
Loss Contingencies [Line Items] | |
Asserting Party | Trans Video Electronics Ltd. |
Jurisdiction | U.S. District Court of Delaware |
Patents at Issue | U.S. Patents Nos. 5,594,936 and 5,991,801 |
Constellation Technologies, LLC [Member] | |
Loss Contingencies [Line Items] | |
Asserting Party | Constellation Technologies, LLC |
Jurisdiction | U.S. District Court Eastern District of Texas |
Patents at Issue | U.S. Patent Nos. 6,128,649, 6,901,048, 7,154,879 and 6,845,389 |
Sprint Communications Company, L.P. [Member] | |
Loss Contingencies [Line Items] | |
Asserting Party | Sprint Communications Company, L.P. |
Jurisdiction | U.S. District Court Eastern District of Pennsylvania |
Patents at Issue | U.S. Patent Nos. 6,754,907 and 6,757,907 |
FutureVision.com LLC [Member] | |
Loss Contingencies [Line Items] | |
Asserting Party | FutureVision.com LLC |
Jurisdiction | U.S. District Court Eastern District of Texas |
Patents at Issue | U.S. Patent No. 5,877,755 |
Broadband iTV, Inc. [Member] | |
Loss Contingencies [Line Items] | |
Asserting Party | Broadband iTV, Inc. |
Jurisdiction | U.S. District Court of Hawaii |
Patents at Issue | U.S. Patent No. 7,361,336 |