Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 21, 2015 | Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CONCURRENT COMPUTER CORP/DE | ||
Entity Central Index Key | 749,038 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 9,490,582 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 63,299,116 | ||
Entity Current Reporting Status | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 25,451 | $ 28,074 |
Accounts receivable, net of allowance for doubtful accounts of $18 and $78 at June 30, 2015 and 2014, respectively | 10,174 | 11,355 |
Inventories | 3,428 | 3,272 |
Deferred income taxes - current, net | 1,422 | 1,458 |
Prepaid expenses and other current assets | 738 | 804 |
Total current assets | 41,213 | 44,963 |
Property and equipment, net | 2,448 | 2,168 |
Intangible assets, net | 323 | 476 |
Deferred income taxes, net | 12,711 | 13,231 |
Other long-term assets, net | 1,178 | 1,548 |
Total assets | 57,873 | 62,386 |
Current liabilities: | ||
Accounts payable and accrued expenses | 6,342 | 7,591 |
Deferred revenue | 8,362 | 7,441 |
Total current liabilities | 14,704 | 15,032 |
Long-term liabilities: | ||
Deferred revenue | 1,658 | 1,400 |
Pension liability | 3,189 | 3,566 |
Other long-term liabilities | 1,716 | 1,934 |
Total liabilities | $ 21,267 | $ 21,932 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Shares of common stock, par value $.01; 14,000,000 authorized; 9,136,793 and 8,996,655 issued and outstanding at June 30, 2015 and 2014, respectively | $ 91 | $ 90 |
Capital in excess of par value | 210,456 | 209,711 |
Accumulated deficit | (173,795) | (169,001) |
Treasury stock, at cost; 37,788 shares | (255) | (255) |
Accumulated other comprehensive income (loss) | 109 | (91) |
Total stockholders' equity | 36,606 | 40,454 |
Total liabilities and stockholders' equity | 57,873 | 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 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 18 | $ 78 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Shares of common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares of common stock, authorized (in shares) | 14,000,000 | 14,000,000 |
Shares of common stock, issued (in shares) | 9,136,793 | 8,996,655 |
Shares of common stock, outstanding (in shares) | 9,136,793 | 8,996,655 |
Treasury stock, at cost (in shares) | 37,788 | 37,788 |
Series Preferred Stock [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Shares of preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares of preferred stock, authorized (in shares) | 1,250,000 | 1,250,000 |
Shares of preferred stock, issued (in shares) | 0 | 0 |
Preferred Class A [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Shares of preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Shares of preferred stock, authorized (in shares) | 20,000 | 20,000 |
Shares of preferred stock, issued (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues: | |||
Product | $ 43,926 | $ 47,893 | $ 38,414 |
Service | 20,533 | 23,278 | 25,030 |
Total revenues | 64,459 | 71,171 | 63,444 |
Cost of sales: | |||
Product | 18,807 | 20,402 | 16,374 |
Service | 9,262 | 10,356 | 10,233 |
Total cost of sales | 28,069 | 30,758 | 26,607 |
Gross margin | 36,390 | 40,413 | 36,837 |
Operating expenses: | |||
Sales and marketing | 14,530 | 14,350 | 14,358 |
Research and development | 13,588 | 13,019 | 11,599 |
General and administrative | 7,990 | 7,744 | 8,226 |
Gain on sale of intangible assets, net | (664) | 0 | (2,381) |
Total operating expenses | 35,444 | 35,113 | 31,802 |
Operating income | 946 | 5,300 | 5,035 |
Interest income | 12 | 27 | 36 |
Interest expense | 0 | (42) | (66) |
Other expense, net | (618) | (188) | (388) |
Income before income taxes | 340 | 5,097 | 4,617 |
Provision (benefit) for income taxes | 685 | (13,408) | 369 |
Net income (loss) | $ (345) | $ 18,505 | $ 4,248 |
Net income (loss) per share | |||
Basic (in dollars per share) | $ (0.04) | $ 2.08 | $ 0.49 |
Diluted (in dollars per share) | $ (0.04) | $ 2.04 | $ 0.48 |
Weighted average shares outstanding - basic (in shares) | 9,067,697 | 8,910,907 | 8,735,544 |
Weighted average shares outstanding - diluted (in shares) | 9,067,697 | 9,085,592 | 8,909,792 |
Cash dividends declared per common share (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.86 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net income (loss) | $ (345) | $ 18,505 | $ 4,248 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 168 | 22 | (325) |
Pension and post-retirement benefits, net of tax | 32 | (473) | (174) |
Other comprehensive income (loss) | 200 | (451) | (499) |
Comprehensive income (loss) | $ (145) | $ 18,054 | $ 3,749 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance at Jun. 30, 2012 | $ 87 | $ 207,830 | $ (179,415) | $ 859 | $ (255) | $ 29,106 |
Balance (in shares) at Jun. 30, 2012 | 8,700,789 | |||||
Treasury Stock, (in shares) at Jun. 30, 2012 | (37,788) | |||||
Dividends declared | (7,944) | (7,944) | ||||
Dividends forfeited with restricted stock forfeitures | 26 | 26 | ||||
Share-based compensation expense | 848 | 848 | ||||
Lapse of restriction on restricted stock | $ 1 | (1) | 0 | |||
Lapse of restriction on restricted stock (in shares) | 106,977 | |||||
Other comprehensive income (loss), net of taxes: | ||||||
Net income (loss) | 4,248 | 4,248 | ||||
Foreign currency translation adjustment | (325) | (325) | ||||
Pensions plan | (174) | (174) | ||||
Comprehensive income (loss) | 3,749 | |||||
Balance at Jun. 30, 2013 | $ 88 | 208,677 | (183,085) | 360 | $ (255) | 25,785 |
Balance at, shares (in shares) at Jun. 30, 2013 | 8,807,766 | |||||
Treasury Stock, Shares (in shares) at Jun. 30, 2013 | (37,788) | |||||
Treasury Stock, (in shares) at Jun. 30, 2013 | (37,788) | |||||
Dividends declared | (4,442) | (4,442) | ||||
Dividends forfeited with restricted stock forfeitures | 63 | 63 | ||||
Share-based compensation expense | 1,130 | 1,130 | ||||
Lapse of restriction on restricted stock | $ 2 | (2) | 0 | |||
Lapse of restriction on restricted stock (in shares) | 206,121 | |||||
Repurchase of shares to satisfy minimum tax withholdings on restricted stock releases | (94) | (42) | (136) | |||
Repurchase of shares to satisfy minimum tax withholdings on restricted stock releases (in shares) | (17,232) | |||||
Other comprehensive income (loss), net of taxes: | ||||||
Net income (loss) | 18,505 | 18,505 | ||||
Foreign currency translation adjustment | 22 | 22 | ||||
Pensions plan | (473) | (473) | ||||
Comprehensive income (loss) | 18,054 | |||||
Balance at Jun. 30, 2014 | $ 90 | 209,711 | (169,001) | (91) | $ (255) | $ 40,454 |
Balance at, shares (in shares) at Jun. 30, 2014 | 8,996,655 | 8,996,655 | ||||
Treasury Stock, Shares (in shares) at Jun. 30, 2014 | (37,788) | (37,788) | ||||
Treasury Stock, (in shares) at Jun. 30, 2014 | (37,788) | (37,788) | ||||
Dividends declared | (4,522) | $ (4,522) | ||||
Dividends forfeited with restricted stock forfeitures | 73 | 73 | ||||
Share-based compensation expense | 902 | 902 | ||||
Lapse of restriction on restricted stock | $ 1 | (1) | 0 | |||
Lapse of restriction on restricted stock (in shares) | 140,138 | |||||
Income tax impact of stock compensation | (156) | (156) | ||||
Other comprehensive income (loss), net of taxes: | ||||||
Net income (loss) | (345) | (345) | ||||
Foreign currency translation adjustment | 168 | 168 | ||||
Pensions plan | 32 | 32 | ||||
Comprehensive income (loss) | (145) | |||||
Balance at Jun. 30, 2015 | $ 91 | $ 210,456 | $ (173,795) | $ 109 | $ (255) | $ 36,606 |
Balance at, shares (in shares) at Jun. 30, 2015 | 9,136,793 | 9,136,793 | ||||
Treasury Stock, Shares (in shares) at Jun. 30, 2015 | (37,788) | (37,788) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows provided by (used in) operating activities: | |||
Net income (loss) | $ (345) | $ 18,505 | $ 4,248 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 1,762 | 1,999 | 2,767 |
Share-based compensation | 902 | 1,130 | 848 |
Deferred income taxes, net | 246 | (13,954) | 1 |
Provision for excess and obsolete inventories | 606 | 356 | 636 |
Foreign currency exchange losses | 626 | 257 | 348 |
Other non-cash expenses | 0 | 20 | 18 |
Gain on sale of intangible assets, net | (664) | 0 | (2,381) |
Decrease (increase) in assets: | |||
Accounts receivable | 432 | (674) | (1,976) |
Inventories | (336) | (461) | 593 |
Prepaid expenses and other current assets | 5 | 902 | (341) |
Other long-term assets | (329) | (650) | (30) |
Increase (decrease) in liabilities: | |||
Accounts payable and accrued expenses | (979) | (78) | 1,262 |
Deferred revenue | 1,466 | (1,466) | (1,331) |
Pension and other long-term liabilities | 152 | 291 | (4) |
Net cash provided by operating activities | 3,544 | 6,177 | 4,658 |
Cash flows provided by (used in) investing activities: | |||
Additions to property and equipment | (1,949) | (1,309) | (1,181) |
Proceeds from sale of intangible assets | 664 | 0 | 2,750 |
Net cash provided by (used in) investing activities | (1,285) | (1,309) | 1,569 |
Cash flows used in financing activities: | |||
Dividends paid | (4,501) | (4,471) | (7,542) |
Repurchase of shares to satisfy tax withholdings | 0 | (136) | 0 |
Net cash used in financing activities | (4,501) | (4,607) | (7,542) |
Effect of exchange rates on cash and cash equivalents | (381) | (114) | (371) |
Increase (decrease) in cash and cash equivalents | (2,623) | 147 | (1,686) |
Cash and cash equivalents - beginning of year | 28,074 | 27,927 | 29,613 |
Cash and cash equivalents - end of year | 25,451 | 28,074 | 27,927 |
Cash paid during the period for: | |||
Interest | 7 | 25 | 27 |
Income taxes (net of refunds) | $ 574 | $ (90) | $ 880 |
Overview of the Business
Overview of the Business | 12 Months Ended |
Jun. 30, 2015 | |
Overview of the Business [Abstract] | |
Overview of the Business | 1. Overview of the Business References herein to “Concurrent,” the “Company,” “we,” “our,” or “us” refer to Concurrent Computer Corporation and its subsidiaries unless the context specifically indicates otherwise. We provide software, hardware and professional services for the content delivery 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 content delivery solutions (formerly called video solutions) consist of software, hardware and services for intelligently streaming video content to a variety of consumer devices, storing and managing content in the network, and collecting and analyzing data related to content delivery applications. Our streaming video, storage, and data analytics products and services are deployed by service providers to support consumer-facing video services including live broadcast video, video-on-demand and time-shifted video applications such as cloud-based digital video recording. Our real-time solutions consist of real-time Linux operating system versions, development and performance optimization tools, simulation software and other system software combined, in many cases, with computer platforms and services. These real-time 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Concurrent and all wholly-owned domestic and foreign subsidiaries. We have no unconsolidated entities and no special purpose entities. All intercompany transactions and balances have been eliminated in consolidation. 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 and Reclassification Subsequent to the issuance of our fiscal year 2014 consolidated financial statements, we identified an error in the consolidated statements of cash flows relating to the presentation of spare parts purchases used to support our obligations under customer contracts. Cash outflows of $591 and $266 for the years ended June 30, 2014 and 2013 were improperly classified as investing activities rather than as operating activities in our consolidated statements of cash flows. We have evaluated the effects of these misstatements for each of these years and concluded that none of these periods are materially misstated. Notwithstanding, we have corrected the accompanying consolidated cash flow presentation for the years ended June 30, 2014 and 2013. The impacts of these misstatements on our previously issued consolidated statements of cash flows for the years ended June 30, 2014 and 2013 are presented below: Consolidated Statements of Cash Flows for the Year Ended June 30, 2014 As Previously Reported Adjustments As Restated Depreciation and amortization $ 2,322 $ (323 ) $ 1,999 Provision for excess and obsolete inventories 33 323 356 Other long-term assets, net (59 ) (591 ) (650 ) All other operating activities, net 4,472 - 4,472 Net cash provided by (used in) operating activities $ 6,768 $ (591 ) $ 6,177 Additions to property and equipment $ (1,900 ) $ 591 $ (1,309 ) All other investing activities, net - - - Net cash Provided by (used in) investing activities $ (1,900 ) $ 591 $ (1,309 ) Consolidated Statements of Cash Flows for the Year Ended June 30, 2013 As Previously Reported Adjustments As Restated Depreciation and amortization $ 3,158 $ (391 ) $ 2,767 Provision for excess and obsolete inventories 245 391 636 Other long-term assets, net 236 (266 ) (30 ) All other operating activities, net 1,285 - 1,285 Net cash provided by (used in) operating activities $ 4,924 $ (266 ) $ 4,658 Additions to property and equipment $ (1,447 ) $ 266 $ (1,181 ) All other investing activities, net 2,750 - 2,750 Net cash Provided by (used in) investing activities $ 1,303 $ 266 $ 1,569 Additionally, and in connection with the correction noted above, we have reclassified $913 of non-current spare parts from property and equipment, net to other long-term assets on our consolidated balance sheets at June 30, 2014 to conform to the June 30, 2015 presentation. Related impairment charges for excess and obsolescence of spare parts are included in cost of sales in the consolidated statements of operations. The notes to the consolidated financial statements have been corrected to give effect to these items. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (“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. Foreign Currency The functional currency of all of our foreign subsidiaries is the applicable local currency. The translation of the applicable foreign currencies into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using average rates of exchange prevailing during the fiscal year. Adjustments resulting from the translation of foreign currency financial statements are accumulated in a separate component of stockholders’ equity. Gains or losses resulting from foreign currency transactions are included in the consolidated statements of operations, except for those relating to intercompany transactions of a long-term investment nature, which are accumulated in a separate component of stockholders’ equity. Losses on foreign currency transactions of $626, $257 and $348 for the years ended June 30, 2015, 2014 and 2013, respectively, are included in other expense, net in the consolidated statements of operations. Cash and Cash Equivalents Cash balances and short-term investments with original maturities of 90 days or less at the date of purchase are considered cash equivalents. Cash equivalents are stated at cost plus accrued interest, which approximates market value, and represent cash and cash invested in money market funds. Inventories Inventories are stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, determined on a first-in, first-out basis. The cost inventories is comprised of material, labor and overhead. We reduce the recorded value of excess and obsolete inventory to its market value based upon historical and anticipated usage. Our provision for excess and obsolescence of inventories was $28, $33 and $245 for the years ended June 30, 2015, 2014 and 2013, respectively. Property and Equipment Property and equipment are stated at acquired cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the estimated useful lives of assets ranging from one to five years. Leasehold improvements are amortized over the shorter of the useful lives of the improvements or the terms of the related lease. Gains and losses resulting from the disposition of property and equipment are included in operations. Expenditures for repairs and maintenance are charged to operations as incurred and expenditures for major renewals and betterments are capitalized. Spare Parts Inventory We maintain a supply of repairable and reusable spare parts for possible use in future warranty repairs of our installed systems. We have classified this inventory within other long-term assets in our consolidated balance sheets. As these service parts age over the related product post-installation service life covered by a warranty, we reduce the net carrying value of our spare parts inventory to account for the excess that builds over the service life. For certain spare parts, our assessment also includes recent usage under the associated warranties. The post‑installation warranty service life of our systems is generally three to five years and, at the end of the service life, the carrying value for these parts is reduced to zero. Our provision for excess and obsolescence of our spare parts inventory was $578, $323 and $391 for the years ended June 30, 2015, 2014 and 2013, respectively. Revenue Recognition Policy In September 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2009-13, Multiple Deliverable Revenue Arrangements – A Consensus of the FASB Emerging Issues Task Force 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 No. 2009‑14, Software (Topic 985) – Certain Revenue Arrangements That Include Software Elements Software Revenue Recognition Our sales model for multi-screen video analytics products (formerly called MDI) 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 multi-screen video analytics software 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 (“ 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. As a result of the adoption of ASU 2009-13, 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. W 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, 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 content delivery 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. Shipping and Handling Costs Shipping and handling amounts we bill to our customers are included in product revenues and the related shipping and handling costs we incur are included in product cost of sales. Taxes Collected from Customers and Remitted to Governmental Authorities Taxes assessed by a governmental authority that are imposed on revenue transactions between us and our customers are presented on a net basis in our consolidated statements of operations. Allowance for Doubtful Accounts The allowance for doubtful accounts receivable is based on an analysis of our historical charge-off ratio, our aging of accounts receivable and our assessment of the collectability of our receivables. If there is a deterioration of one of our customer’s credit worthiness or actual account defaults are higher than our historical trends, our reserve estimates could be adversely impacted. Deferred Revenue Deferred revenue consists of billings for maintenance contracts and for products that are pending completion of the revenue recognition process. Maintenance revenue, whether bundled with the product or priced separately, is recognized ratably over the maintenance period. For contracts extending beyond one year, deferred revenue related to the contract period extending beyond 12 months is classified among long-term liabilities. Defined Benefit Pension Plan We maintain defined benefit pension plans (the “Pension Plan”) for a number of former employees (“participants”) of our German subsidiary. In 1998, the pension plan was closed to new employees and no existing employees are eligible to participate, as all eligible participants are no longer employed by Concurrent. The Pension Plan provides benefits to be paid to all participants at retirement based primarily on years of service with Concurrent and compensation rates in effect near retirement. Our policy is to fund benefits attributed to participants’ services to date as well as service expected to be earned in the future. The determination of our Pension Plan benefit obligation and expense is dependent on our selection of certain assumptions used by actuaries in calculating such amounts. Those assumptions include, among others, the weighted average discount rate, the weighted average expected rate of return on plan assets and the weighted average rate of compensation increase. To the extent that these assumptions change, our future benefit obligation and net periodic pension expense may be positively or negatively impacted. Capitalized Software We account for software development costs in accordance with Accounting Standards Codification (“ASC”) Topic 985-20, Software Research and Development Research and development expenditures are expensed as incurred. These expenditures include compensation costs, materials, other direct expenses and allocated costs of information technology and facilities. Basic and Diluted Net (Loss) Income per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each year. Diluted net income (loss) per share is computed by dividing net income (loss) 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. Common share equivalents of 181,579, 110,635 and 232,437 for the years ended June 30, 2015, 2014 and 2013, respectively, were excluded from the calculation as their effect was anti-dilutive. The following table presents a reconciliation of the numerators and denominators of basic and diluted income (loss) per share for the periods indicated: Year Ended June 30, 2015 2014 2013 Basic and diluted EPS calculation: Net income (loss) $ (345 ) $ 18,505 $ 4,248 Basic weighted average number of shares outstanding 9,067,697 8,910,907 8,735,544 Effect of dilutive securities: Employee stock options - 13,634 65 Restricted shares - 161,051 174,183 Diluted weighted average number of shares outstanding 9,067,697 9,085,592 8,909,792 Basic EPS $ (0.04 ) $ 2.08 $ 0.49 Diluted EPS $ (0.04 ) $ 2.04 $ 0.48 Valuation of Long-Lived Assets We evaluate the recoverability of long-lived assets, other than indefinite lived intangible assets, for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, we recognize an impairment loss only if its carrying amount is not recoverable through its undiscounted cash flows and measure the impairment loss based on the difference between the carrying amount and fair value based on discounted cash flows. As a result of these evaluations, we have not recorded any impairment losses related to long-lived assets, for any of the years ended June 30, 2015, 2014 and 2013. Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly fashion between market participants at the measurements date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset of liability. The Accounting Standards Codification 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. We have no financial assets that are measured on a recurring basis that fall within Level 2 or Level 3 of the fair value hierarchy. Our financial assets that are measured at fair value on a recurring basis as of June 30, 2015 are as follows: As of June 30, 2015 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 15,406 $ 15,406 $ - $ - Money market funds 10,045 10,045 - - Cash and cash equivalents $ 25,451 $ 25,451 $ - $ - Our financial assets that are measured at fair value on a recurring basis as of June 30, 2014 are as follows: As of June 30, 2014 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 18,037 $ 18,037 $ - $ - Money market funds 10,037 10,037 - - Cash and cash equivalents $ 28,074 $ 28,074 $ - $ - Income Taxes Concurrent and its domestic subsidiaries file a consolidated federal income tax return. All foreign subsidiaries file individual or consolidated tax returns pursuant to local tax laws. We follow the asset and liability method of accounting for income taxes. Under the asset and liability method, a deferred tax asset or liability is recognized for temporary differences between financial reporting and income tax basis of assets and liabilities, tax credit carryforwards and operating loss carryforwards. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that such deferred tax assets will not be realized. Share-Based Compensation We account for share-based compensation in accordance with ASC Topic 718-10, Stock Compensation Comprehensive Income (Loss) Comprehensive income (loss) is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income (loss). Comprehensive income (loss) is defined as a change in equity during the financial reporting period of a business enterprise resulting from non-owner sources. Components of accumulated other comprehensive income (loss) are disclosed in the consolidated statements of comprehensive income (loss). |
Recent Accounting Guidance
Recent Accounting Guidance | 12 Months Ended |
Jun. 30, 2015 | |
Recent Accounting Guidance [Abstract] | |
Recent Accounting Guidance | 3. Recent Accounting Guidance Recently Adopted Accounting Guidance In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830) : Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ ‑05”), 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. ASU 2013-05 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. ASU 2013-05 was effective for us beginning July 1, 2014 and did not have a material impact on our consolidated financial statements. In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists Recent Accounting Guidance Not Yet Adopted In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following: June 30, 2015 2014 Raw materials $ 1,403 $ 1,265 Work-in-process 271 319 Finished goods 1,754 1,688 $ 3,428 $ 3,272 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Jun. 30, 2015 | |
Property and Equipment, net [Abstract] | |
Property and Equipment, net | 5. Property and Equipment, net Property and equipment consists of the following: June 30, 2015 2014 Leasehold improvements $ 2,723 $ 2,807 Machinery and equipment 14,075 14,196 16,798 17,003 Less: Accumulated depreciation (14,350 ) (14,835 ) $ 2,448 $ 2,168 For the years ended June 30, 2015, 2014 and 2013, depreciation expense for property and equipment amounted to $1,580, $1,618 and $1,863, respectively. We recorded an asset for leasehold improvements and a corresponding liability for the present value of the estimated asset retirement obligation associated with the lease restoration costs at some of our international locations. The asset was depreciated over the expected life of the corresponding lease and has a net book value of $0 as of both June 30, 2015 and 2014, while the liability continues to accrete to the amount of the estimated retirement obligation. Expense associated with accretion of the obligation is recorded to operating expenses. The changes to the asset retirement obligation associated with lease restoration costs are as follows: Asset retirement obligation at June 30, 2014 $ 413 Accretion of asset retirement obligation - Payment of restoration costs - Impact of foreign exchange rates (74 ) Asset retirement obligation at June 30, 2015 $ 339 |
Intangibles Assets, net
Intangibles Assets, net | 12 Months Ended |
Jun. 30, 2015 | |
Intangibles Assets, net [Abstract] | |
Intangibles Assets, net | 6. Intangibles Assets, net Intangible assets consist of the following: Weighted Average Remaining June 30, Useful Life 2015 2014 Cost of amortizable intangibles: Purchased technology - $ 7,700 $ 7,700 Customer relationships 1.3 years 1,900 1,900 Patents 11.0 years 130 101 Total cost of intangibles 9,730 9,701 Less accumulated amortization: Purchased technology (7,700 ) (7,700 ) Customer relationships (1,679 ) (1,506 ) Patents (28 ) (19 ) Total accumulated amortization (9,407 ) (9,225 ) Total intangible assets, net $ 323 $ 476 We recorded $182, $381 and $904 of amortization expense during each of the years ended June 30, 2015, 2014 and 2013, respectively. The estimated amortization expense related to intangible assets for the next five fiscal years ending June 30 is as follows: 2016 $ 182 2017 58 2018 10 2019 10 2020 10 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Jun. 30, 2015 | |
Accounts Payable and Accrued Expenses [Abstract] | |
Accounts Payable and Accrued Expenses | 7. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: June 30, 2015 2014 Accounts payable, trade $ 2,682 $ 1,838 Accrued payroll, vacation and other employee expenses 2,332 4,331 Accrued income taxes 23 221 Dividend payable 93 67 Other accrued expenses 1,212 1,134 $ 6,342 $ 7,591 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes Concurrent and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With a few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for fiscal years before 1999. The domestic and foreign components of income before provision for income taxes are as follows: Year Ended June 30, 2015 2014 2013 United States $ 294 $ 3,930 $ 4,979 Foreign 46 1,167 (362 ) $ 340 $ 5,097 $ 4,617 The components of the provision (benefit) for income taxes are as follows: Year Ended June 30, 2015 2014 2013 Current: Federal $ 29 $ 78 $ 128 State 5 28 151 Foreign 405 438 90 Total 439 544 369 Deferred: Federal 71 (12,338 ) - State 140 (1,361 ) - Foreign 35 (253 ) - Total 246 (13,952 ) - Total $ 685 $ (13,408 ) $ 369 A reconciliation of the income tax expense (benefit) computed using the federal statutory income tax rate to our provision (benefit) for income taxes is as follows: Year Ended June 30, 2015 2014 2013 Income before provision (benefit) for income taxes $ 340 $ 5,097 $ 4,617 Provision at Federal statutory rate 116 1,733 1,570 Change in valuation allowance 31 (15,859 ) (5,444 ) Permanent differences 80 350 22 Net operating loss expiration and adjustment 365 13 4,801 Change in state tax rates 31 (21 ) - Change in foreign tax rates 27 43 - Change in uncertainty in income taxes 23 21 16 Foreign rate differential (3 ) (40 ) 23 State and foreign tax expense 40 145 194 Stock option classification change due to repricing - - (653 ) Other (25 ) 207 (160 ) Provision (benefit) for income taxes $ 685 $ (13,408 ) $ 369 As of June 30, 2015 and 2014, our deferred tax assets and liabilities were comprised of the following: June 30, 2015 2014 Deferred tax assets related to: U.S. and foreign net operating loss carryforwards $ 41,339 $ 43,230 Book and tax basis differences for property and equipment 742 563 Bad debt, warranty and inventory reserves 672 707 Accrued compensation 943 944 Deferred revenue 395 596 U.S. credit carryforwards 561 549 Stock compensation 798 992 Other 1,181 1,076 Deferred tax assets 46,631 48,657 Valuation allowance (32,435 ) (33,851 ) Total deferred tax assets 14,196 14,806 Deferred tax liabilities related to: Acquired intangibles 63 117 Total deferred tax liability 63 117 Deferred income taxes, net $ 14,133 $ 14,689 As of June 30, 2015, the net deferred income tax asset of $14,133 is comprised of $1,422 of current deferred tax assets, net, and $12,711 of non-current deferred tax assets, net. As of June 30, 2015, we have U.S. federal net operating loss carryforwards (“NOLs”) of $92,826 for income tax purposes, of which none expire in fiscal year 2015, and the remainder expires at various dates through fiscal year 2034. We completed an evaluation of the potential effect of Section 382 of the Internal Revenue Code on our ability to utilize these NOLs. The study concluded that we have not had an ownership change in the past three years, and previous studies confirmed that there have been no ownership changes since July 22, 1993. Therefore, the U.S. federal NOLs will not be subject to limitation under Section 382. As of June 30, 2015, we have state NOLs of $52,310 and foreign NOLs of $28,153. The state NOLs expire between fiscal year 2015 and fiscal year 2035. The foreign NOLs expire according to the rules of each country. Prior to fiscal year 2015, all jurisdictions except Spain had an indefinite carryforward period. Due to a tax law change in Spain during fiscal year 2015, Spanish NOLs will also have an indefinite carryforward period. We have evaluated our ability to generate future taxable income in all jurisdictions that would allow it to realize the benefit associated with these NOLs. Based on our best estimate of future taxable income, we do not expect to fully realize the benefit of these NOLs. We expect a significant amount of the U.S. losses to expire without utilization, resulting in a valuation allowance in the U.S. on this portion of the deferred tax assets. We expect the U.K. losses to be fully realized based on a fiscal year 2014 tax law change regarding the treatment of research and development benefits, so we have fully released the valuation allowance placed on these losses in prior periods. We do not expect to realize the benefit of our NOLs in other international jurisdictions due to cumulative accounting losses, our long history of taxable losses and 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. We continue to maintain a full valuation allowance on losses in these other international jurisdictions. We also have an alternative minimum tax credit for federal purposes of $383, which has an indefinite life, and a research and development credit carryforward for federal purposes of $140, which has a carryforward period of 20 years and will expire in fiscal years 2025 and 2026. We do not expect to be able to realize the benefit of the research and development credit carryforward before its expiration, and we maintain a full valuation allowance on this item. Of the $92,826 of aforementioned U.S. federal NOLs, $11,189 represents acquired NOLs from the Everstream acquisition. Additionally, we acquired the aforementioned $140 in research and development credits in this transaction. The benefits associated with these Everstream losses and tax credits will likely be limited under Sections 382 and 383 of the Internal Revenue Code as of the date of acquisition. We have fully offset the deferred tax assets related to the research and development credits with a valuation allowance. Deferred income taxes have not been provided for undistributed earnings of foreign subsidiaries because of our intent to reinvest them indefinitely in active foreign operations. Because of the availability of significant U.S. net operating losses, it is not practical to determine the U.S. income tax liability that would be payable if such earnings were not reinvested indefinitely. Deferred taxes are provided for the earnings of foreign subsidiaries when it becomes evident that we do not plan to permanently reinvest the earnings into active foreign operations. As of June 30, 2015, we have both the intent and ability to permanently reinvest our foreign earnings in our foreign subsidiaries, with the exception of our Hong Kong subsidiary. We are currently evaluating whether we will close the Hong Kong office or merge it into another subsidiary. We can no longer state that we have the intent to remain permanently reinvested in Hong Kong. However, because we have negative earnings and profits in our Hong Kong subsidiary, we do not expect to have any tax liability associated with any decisions made with regard to the future of this subsidiary. The valuation allowances for deferred tax assets as of June 30, 2015 and 2014 were $32,435 and $33,851, respectively. The change in the valuation allowance for the year ended June 30, 2015 was a decrease of $1,416. This change consisted of: (1) a $1,447 decrease due to exchange rate changes and the effect of unrealized gains/losses (the effect of which is a component of equity) and (2) a $300 decrease due to expiration and adjustment of domestic net operating loss carryforwards, partially offset by (3) a $304 increase due to the creation of deferred tax assets in certain foreign jurisdictions during fiscal year 2015, (4) a $13 increase due to miscellaneous adjustments of prior year deferred tax amounts and (5) a $14 increase due to a change in foreign tax rates. Deferred Tax Assets and Related Valuation Allowances 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 June 30, 2015: U.S. As a result, we realized a $13,699 tax benefit in the fiscal year ended June 30, 2014 related to the release of a portion of our valuation allowance against federal and state net operating losses as well as on the aforementioned deferred tax asset related to the Alternative Minimum Tax (“AMT”) credit as it has an indefinite life. We did not release the valuation allowance against our research and development credit as it is expected to expire in future years in which we already expect an expiration of federal NOLs. The amount of valuation allowance released against our net deferred tax assets is based upon our best estimate of future earnings including consideration of a combination of a past historical operating income and future projected income scheduled against the future expected expiration of federal and state NOLs. We did not perform a full release of valuation allowance as there are still significant NOLs that will expire unused based upon our expectations of future earnings. After consideration of estimated future earnings, there are $14,218 and $17,017 of federal NOLs potentially subject to expiration in 2020 and 2021, respectively, in addition to other expirations in years through 2032 mentioned above. 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. Based on our similar evaluation as of June 30, 2015, we continue to realize a three-year cumulative accounting profit in the U.S. adjusted for permanent differences and other non-recurring events, including the 2015 gain on the sale of certain IPv4 addresses (see Note 12 - Sales of Intangible Assets). We have also evaluated our estimate of future earnings that was used during the aforementioned fiscal year 2014 release. We have concluded that there has not been a significant change in our estimate of future earnings based on our fiscal year 2015 results and future projections. As a result, we have not made any adjustment to our valuation allowance in the U.S. for the fiscal year ended June 30, 2015. The only adjustment that we are making to the valuation allowance in the U.S. for the fiscal year ended June 30, 2015 is to ensure the unreserved portion of deferred tax assets remains equal to our estimate of expected future earnings. We will continue to evaluate our assumptions each quarter regarding the need for a valuation allowance and will make appropriate adjustments as necessary. In the recent past, our U.S. tax provision expense has been limited to the AMT amount for federal tax purposes, which approximates 2% of earnings before income taxes, and state taxes in various jurisdictions. However, as a result of our non-cash valuation allowance release during the fiscal year ended June 30, 2014, we expect our U.S. tax provision expense in future periods to be at a higher effective tax rate, which will reduce our net income (or loss) and earnings (or loss) per share, by a greater amount than it has in the past. The higher effective tax rates and tax provisions will result in non-cash income tax expense in the future, as we will be able to utilize net operating losses to offset future cash taxes into the foreseeable future. U.K. - Japan – Other Foreign Jurisdictions - 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 allowance 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. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at June 30, 2013 $ 154 Additions based on tax positions related to the current year - Additions for tax positions of prior years 143 Reductions for tax positions for prior year - Reductions for lapse in statute of limitations - Settlements - Balance at June 30, 2014 297 Additions based on tax positions related to the current year - Additions for tax positions of prior years - Reductions for tax positions for prior year - Reductions for lapse in statute of limitations - Settlements - Balance at June 30, 2015 $ 297 The amount of gross tax effected unrecognized tax benefits as of June 30, 2015 was approximately $297 of which approximately $248, if recognized, would affect the effective tax rate. During the fiscal year ended June 30, 2015, we recognized approximately $23 of interest and no penalties. We had approximately $258 and $236 of accrued interest at June 30, 2015 and 2014, respectively. We had approximately $88 of accrued penalties as of both June 30, 2015 and 2014. We recognize potential interest and penalties related to unrecognized tax benefits as a component of income tax expense. We believe that the amount of uncertainty in income taxes will not change by a significant amount within the next 12 months. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 12 Months Ended |
Jun. 30, 2015 | |
Pensions and Other Postretirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefits | 9. Pensions and Other Postretirement Benefits Defined Contribution Plans We maintain a retirement savings plan available to U.S. employees that qualifies as a defined contribution plan under Section 401(k) of the Internal Revenue Code. From July 1, 2012 through August 20, 2013, the Company was matching 25% of the first 5% of the participants’ compensation. Effective August 21, 2013, the Company matches 50% of the first 5% of the participants’ compensation. For fiscal years 2015, 2014 and 2013, we made matching contributions of $443, $388 and $183, respectively. We also maintain a defined contribution plan (the “Stakeholder Plan”) for our U.K. based employees. The Stakeholder Plan provides for discretionary matching contributions of between 4% and 7% of the employee’s salary. For fiscal years 2015, 2014 and 2013, we made total contributions to the Stakeholder Plan of $58, $70 and $60, respectively. Defined Benefit Plans As of June 30, 2015, we maintained defined benefit pension plans (the “Pension Plans”) covering former employees in Germany. The measurement date used to determine fiscal years’ 2015 and 2014 benefit information for the Pension Plans was June 30, 2015 and 2014, respectively. Our Pension Plans have been closed to new employees since 1998 and no existing employees are eligible to participate, as all eligible participants are no longer employed by us. A reconciliation of the changes in the Pensions Plans’ benefit obligations and fair value of plan assets over the two‑year period ended June 30, 2015, and a statement of the funded status at June 30, 2015 for these years for the Pension Plans is as follows: Obligations and Funded Status June 30, 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 5,567 $ 4,967 Interest cost 126 174 Actuarial loss 224 460 Foreign currency exchange rate change (1,032 ) 238 Benefits paid (257 ) (272 ) Benefit obligation at end of year $ 4,628 $ 5,567 Change in plan assets: Fair value of plan assets at beginning of year $ 1,984 $ 2,052 Actual return on plan assets 30 67 Employer contributions 22 24 Benefits paid (247 ) (255 ) Foreign currency exchange rate change (357 ) 96 Fair value of plan assets at end of year $ 1,432 $ 1,984 Funded status at end of year $ (3,196 ) $ (3,583 ) Amounts Recognized in the Consolidated Balance Sheets June 30, 2015 2014 Other accrued expenses (1) $ (7 ) $ (17 ) Pension liability - long-term liabilities (3,189 ) (3,566 ) Total pension liability $ (3,196 ) $ (3,583 ) Accumulated other comprehensive loss $ 1,214 $ 1,246 (1) Included in line item accounts payable and accrued expenses Items Not Yet Recognized as a Component of Net Periodic Pension Cost: June 30, 2015 2014 Net loss $ 1,214 $ 1,246 $ 1,214 $ 1,246 Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets June 30, 2015 2014 Projected benefit obligation $ 4,628 $ 5,567 Accumulated benefit obligation $ 4,628 $ 5,567 Fair value of plan assets $ 1,432 $ 1,984 The following table provides the components of net periodic pension cost recognized in earnings for the fiscal years ended June 30, 2015, 2014 and 2013: Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income Year Ended June 30, 2015 2014 2013 Net Periodic Benefit Cost Service cost $ - $ - $ 3 Interest cost 126 174 189 Expected return on plan assets (45 ) (61 ) (73 ) Recognized actuarial loss 40 19 8 Amortization of unrecognized net transition obligation (asset) - - - Net periodic benefit cost $ 121 $ 132 $ 127 We estimate that $50 of the net loss for the defined benefit pension plans will be amortized from accumulated other comprehensive income into net period benefit cost over the next fiscal year. Assumptions The following table sets forth the assumptions used to determine benefit obligations: June 30, 2015 2014 Discount rate 2.13 % 2.65 % Expected return on plan assets 2.50 % 3.50 % Compensation increase rate 0.00 % 0.00 % The following table sets forth the assumptions used to determine net periodic benefit cost: Year Ended June 30, 2015 2014 2013 Discount rate 2.65 % 3.43 % 4.00 % Expected return on plan assets 3.50 % 3.00 % 3.50 % Compensation increase rate 0.00 % 0.00 % 0.00 % On an annual basis, we adjust the discount rate used to determine the projected benefit obligation to approximate rates on high-quality, long-term obligations. Plan Assets The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value, as well as the percentage of total plan assets for each category at June 30, 2015: Level 1 Level 2 Level 3 Total Assets Percentage of Plan Assets 2015 Asset Category: Equity securities $ - $ 612 $ - $ 612 42.8 % Debt securities - 231 - 231 16.1 % Cash surrender value insurance contracts - 589 - 589 41.1 % Totals $ - $ 1,432 $ - $ 1,432 100.0 % The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value, as well as the percentage of total plan assets for each category at June 30, 2014: Level 1 Level 2 Level 3 Total Assets Percentage of Plan Assets 2014 Asset Category: Cash and cash equivalents $ 136 $ - $ - $ 136 6.9 % Equity securities - 734 - 734 37.1 % Debt securities - 409 - 409 20.6 % Cash surrender value insurance contracts - 701 - 701 35.4 % Other 4 - - 4 0.1 % Totals $ 140 $ 1,844 $ - $ 1,984 100.0 % Pension assets utilizing Level 1 inputs include fair values of equity investments and debt securities, and related dividends, which were determined by closing prices for those securities traded actively on national stock exchanges. All cash equivalents are carried at cost, which approximates fair value. Level 2 assets include fair values of equity investments and debt securities with limited trading activity and related dividends that were determined by closing prices for those securities traded on national stock exchanges and cash surrender life insurance contracts that are valued based on contractually stated settlement value. In estimating the expected return on plan assets, we consider past performance and future expectations for the fund. Pension Plan assets are heavily weighted toward equity investments that yield consistent, dependable dividends. Our investment strategy with respect to pension assets is to invest the assets in accordance with applicable laws and regulations. The long-term primary objectives for our pension assets are to: (1) provide for a reasonable amount of long-term growth of capital, with prudent exposure to risk and protect the assets from erosion of purchasing power; (2) provide investment results that meet or exceed the plans’ actuarially assumed long-term rate of return; and (3) match the duration of the liabilities and assets of the plans to reduce the potential risk of large employer contributions being necessary in the future. Contributions We expect to contribute $18 to our defined benefit pension plans in fiscal year 2016. Estimated Future Benefit Payments Expected benefit payments, which reflect expected future service, during the next ten fiscal years ending June 30 are as follows: Pension 2016 $ 248 2017 250 2018 254 2019 252 2020 251 2021 - 2025 1,226 |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | 10. Segment Information We operate in two segments, products and services, as disclosed within our 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 consolidated 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 and long-lived assets based upon location of the assets. As presented below, long-lived assets exclude intangible assets, net. A summary of our revenue and long-lived assets by geographic area is as follows: Year Ended June 30, 2015 2014 2013 United States $ 34,713 $ 40,993 $ 38,973 Canada 7,046 5,746 6,868 Total North America 41,759 46,739 45,841 Japan 11,929 11,161 10,079 Other Asia-Pacific 2,230 3,193 2,355 Total Asia-Pacific 14,159 14,354 12,434 Europe 8,532 9,964 5,165 South America 9 114 4 Total revenue $ 64,459 $ 71,171 $ 63,444 June 30, 2015 2014 Long-lived assets: United States $ 15,322 $ 15,543 Europe 301 543 Japan 691 806 Other Asia-Pacific 23 55 Total long-lived assets $ 16,337 $ 16,947 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2015 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 11. Share-Based Compensation We have Stock Incentive Plans providing for the grant of incentive stock options to employees and non‑qualified stock options to employees and directors. The Compensation Committee of the Board of Directors (“Compensation Committee”) administers the Stock Incentive Plans. Under the plans, the Compensation Committee may award stock options and shares of common stock on a restricted basis. The plans also specifically provide for stock appreciation rights and authorize the Compensation Committee to provide, either at the time of the grant of an option or otherwise, that the option may be cashed out upon terms and conditions to be determined by the Compensation Committee or the Board of Directors. Option awards are granted with an exercise price equal to the market price of our stock at the date of grant. We recognize stock compensation expense in accordance with ASC 718-10 over the requisite service period of the individual grantees, which generally equals the vesting period. All of our stock compensation is accounted for as equity instruments. Our 2011 Stock Incentive Plan became effective November 1, 2011 and replaced the 2001 Stock Option Plan that expired on October 31, 2011. The 2011 Stock Incentive Plan terminates on October 31, 2021. Stockholders have authorized the issuance of up to 1,100,000 shares under this plan, and at June 30, 2015, there were 470,740 shares available for future grants. We recorded share-based compensation related to the issuance of stock options and restricted stock to employees, board members and non-employees, as follows: Year Ended June 30, 2015 2014 2013 Share-based compensation expense included in the consolidated statement of operations: Cost of sales $ 53 $ 56 $ 55 Sales and marketing 115 176 165 Research and development 105 150 128 General and administrative 629 748 500 Total 902 1,130 848 Tax benefit - - - Share-based compensation expense, net of taxes $ 902 $ 1,130 $ 848 Based on historical experience of restricted stock and option pre-vesting cancellations, we estimated annualized forfeiture rates of 5.0% and 9.0% for unvested restricted stock awards and stock options outstanding as of June 30, 2015 and 2014, respectively. We update our expectation of forfeiture rates quarterly and under the true‑up provisions of ASC 718-10, we will record additional expense if the actual forfeiture rate is lower than estimated, and will record a recovery of prior expense if the actual forfeiture is higher than estimated. We have not received any cash from option exercises under any share-based payment arrangements for the fiscal years ended June 30, 2015, 2014 and 2013. Restricted Share Awards During fiscal year 2015, we issued 316,000 shares of restricted stock. All of these restricted awards were issued to employees and board members and vest over a four-year period for employees and a three-year graded vesting period for board members. Vesting is based solely on a service condition, and restrictions generally release ratably over the service period. Restricted Stock Awards Shares Weighted- Average Grant Date Fair Value Non-vested at July 1, 2014 183,634 $ 6.08 Granted 316,000 6.87 Vested (88,846 ) 6.26 Forfeited (40,098 ) 6.27 Non-vested at June 30, 2015 370,690 $ 6.69 During fiscal years 2013 and 2014, we issued performance-based restricted shares (“PSAs”) to senior and executive management and board members. The PSAs issued in fiscal years 2013 and 2014 will be released only if company performance criteria are achieved over a three-year performance period. The performance criteria are determined each year and require us to achieve certain financial goals. The weighted-average grant date fair value per share for our performance shares is the closing price on the date the annual performance criteria is approved by our Board of Directors. During fiscal year 2015, we released restrictions on 51,293 PSAs issued to senior and executive management based upon achievement of performance goals attributable to our fiscal year 2014 financial results. Additionally, 38,732 PSAs issued to senior and executive management were cancelled and forfeited as a result of termination of employment. A summary of the activity of our PSAs during fiscal year 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 ) 5.30 Forfeited (38,732 ) 5.82 Non-vested at June 30, 2015 25,887 $ 5.84 Total compensation cost of restricted stock awards issued, but not yet vested as of June 30, 2015 is $1,625, which is expected to be recognized over the weighted average period of 2.0 years. Stock Options We use the Black-Scholes valuation model to estimate the fair value of each option award on: (1) the date of grant for grants to employees and (2) each reporting period-end date for grants to non-employees, until the non‑employee shares have vested, at which point the vest date becomes the final measurement date for non‑employee grants. We did not grant any stock options in fiscal years 2015, 2014 and 2013, and there were no unvested options granted to non-employees as of June 30, 2015. During the third quarter of fiscal year 2013 our Board of Directors approved a $0.50 reduction in the exercise price of outstanding stock options for existing employees and board members as an equitable adjustment for the $0.50 special dividend declared and paid during the second quarter of fiscal year 2013. We accounted for this equitable adjustment to exercise price as a modification on the date of approval. This modification resulted in less than $1 of additional expense as most option exercise prices remain above our stock’s trading price after the equitable adjustment. We use the Black-Scholes valuation model to estimate the fair value of each option award under modification accounting. A summary of our stock option activity as of June 30, 2015 and changes during fiscal year 2015 is presented below: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of July 1, 2014 183,317 $ 10.92 Granted - - Exercised - - Forfeited or expired (90,801 ) 9.86 Outstanding as of June 30, 2015 92,516 $ 11.96 1.97 $ 6 Vested at June 30, 2015 92,516 $ 11.96 1.97 $ 6 Exercisable at June 30, 2015 92,516 $ 11.96 1.97 $ 6 The following table summarizes information about stock options outstanding and exercisable at June 30, 2015: Outstanding Options Options Exercisable Range of Exercise Prices Weighted- Average Remaining Contractual Life (Years) Number Outstanding Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $5.90 3.09 20,000 $ 5.90 20,000 $ 5.90 $11.10 - $13.00 1.66 26,910 $ 12.65 26,910 $ 12.65 $13.50 1.95 26,606 $ 13.50 26,606 $ 13.50 $14.70 - $15.30 1.23 15,000 $ 14.90 15,000 $ 14.90 $16.40 1.34 4,000 $ 16.40 4,000 $ 16.40 $5.90 - $16.40 1.97 92,516 $ 11.96 92,516 $ 11.96 The total intrinsic value of options both outstanding and exercisable was $6, $71 and $86 for the fiscal years ended June 30, 2015, 2014 and 2013, respectively. There is no remaining compensation cost for options granted as all outstanding options have vested as of June 30, 2015. We generally issue new shares to satisfy option exercises. |
Sales of Intangible Assets
Sales of Intangible Assets | 12 Months Ended |
Jun. 30, 2015 | |
Sales of Intangible Assets [Abstract] | |
Sales of Intangible Assets | 12. Sales of Intangible Assets During fiscal year 2015, we sold two blocks of non-strategic IPv4 addresses to two buyers for a total of $737. These blocks of IPv4 addresses, which were recorded at $0 book value, have not been a material part of our ongoing operations. The aggregate gain on the sales of these IPv4 addresses of $664 is net of broker fees of $73 incurred to consummate the transaction. During fiscal year 2013, we sold certain non-strategic patents and patent applications (collectively known as “intellectual property”) for $2,750 in cash. We originally acquired this intellectual property in the purchase of Everstream, Inc. (“Everstream”) but did not expect to use the technology associated with this intellectual property as part of our ongoing or planned operations. As a result, this intellectual property was originally valued at $0 upon our acquisition of Everstream. The gain on the sale of the intellectual property of $2,381 is net of $369 of commissions and legal fees that were incurred as a result of the sale, and would not have been incurred otherwise. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Jun. 30, 2015 | |
Concentration of Risk [Abstract] | |
Concentration of Risk | 13. Concentration of Risk Sales to unaffiliated customers outside the U.S. were $29,746, $30,178 and $24,474 for the years ended June 30, 2015, 2014 and 2013, respectively, which amounts represented 46%, 42% and 39% of total sales for the respective fiscal years. Sales to the U.S. Government, prime contractors and agencies of the U.S. Government amounted to approximately $12,001, $10,072 and $9,573 for the years ended June 30, 2015, 2014 and 2013, respectively, which amounts represented 19%, 14% and 15% of total sales for the respective fiscal years. In addition, the following summarizes revenues by significant customer where such revenue exceeded 10% of total revenues for any one of the indicated periods: Year Ended June 30, 2015 2014 2013 Customer A <10% 13 % 12 % Customer B <10% 13 % 12 % We assess credit risk through ongoing credit evaluations of a customers’ financial condition. Generally, collateral is not required. The following summarizes accounts receivable by significant customer where such accounts receivable exceeded 10% of total accounts receivable for any one of the indicated periods: June 30, 2015 2014 Customer C 37% <10% Customer D <10% 15% Customer E <10% 12% Customer F <10% 11% There were no other customers representing 10% or more of our accounts receivable at June 30, 2015 and 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: Year Ended June 30, 2015 2014 2013 Vendor A 20 % 18 % 16 % Vendor B 19 % 13 % <10 % Vendor C 15 % 23 % 24 % |
Quarterly Consolidated Financia
Quarterly Consolidated Financial Information (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Consolidated Financial Information [Abstract] | |
Quarterly Consolidated Financial Information | 14. Quarterly Consolidated Financial Information (Unaudited) The following is a summary of quarterly financial results for the fiscal years ended June 30, 2015 and 2014: Three Months Ended September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 2015 Net sales $ 17,540 $ 15,996 $ 17,110 $ 13,813 Gross margin $ 9,698 $ 8,807 $ 10,085 $ 7,800 Operating income (loss) $ 849 $ (608 ) $ 1,462 $ (757 ) Net income (loss) $ 387 $ (571 ) $ 784 $ (945 ) Net income (loss) per share - basic $ 0.04 $ (0.06 ) $ 0.09 $ (0.10 ) Net income (loss) per share - diluted $ 0.04 $ (0.06 ) $ 0.09 $ (0.10 ) Three Months Ended September 30, 2013 December 31, 2013 March 31, 2014 June 30, 2014 2014 Net sales $ 17,198 $ 17,837 $ 18,278 $ 17,858 Gross margin $ 9,502 $ 9,956 $ 10,248 $ 10,707 Operating income $ 800 $ 1,133 $ 1,260 $ 2,107 Net income $ 734 $ 1,089 $ 1,082 $ 15,600 Net income per share - basic $ 0.08 $ 0.12 $ 0.12 $ 1.75 Net income per share - diluted $ 0.08 $ 0.12 $ 0.12 $ 1.72 |
Dividends
Dividends | 12 Months Ended |
Jun. 30, 2015 | |
Dividends [Abstract] | |
Dividends | 15. Dividends During fiscal years 2015 and 2014, we declared and paid four cash dividends. In fiscal year 2013, we declared and paid five cash dividends and a special dividend. Future dividends are subject to declaration by our Board of Directors. Cash dividends declared on our common stock during fiscal year 2015 are summarized in the following table: Dividends Declared Record Date Payment Date Type Per Share Total September 15, 2014 September 29, 2014 Quarterly $ 0.12 $ 1,112 December 16, 2014 December 30, 2014 Quarterly $ 0.12 $ 1,137 March 16, 2015 March 30, 2015 Quarterly $ 0.12 $ 1,133 June 15, 2015 June 29, 2015 Quarterly $ 0.12 $ 1,140 Total $ 4,522 As of June 30, 2015, we recorded $232 of dividends payable to holders of restricted common stock who held restricted shares at the time of the dividend record dates and still hold those restricted shares as of June 30, 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 $93 and $139, 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. For fiscal year 2015, $73 of dividends payable were forfeited and returned to capital for restricted shares that were forfeited prior to meeting vesting requirements. Because the participants are not entitled to these dividends unless they complete the requisite service period for the shares to vest, they are not “participating dividends” as defined under ASC Topic 260-10, Earnings per Share |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 16. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of taxes, for the year ended June 30, 2015: Pension and Currency Total Balance at June 30, 2014 $ (1,246 ) $ 1,155 $ (91 ) Other comprehensive income before reclassifications - 168 168 Amounts reclassified from accumulated other comprehensive income (loss) 32 - 32 Net current period other comprehensive income (loss) 32 168 200 Balance at June 30, 2015 $ (1,214 ) $ 1,323 $ 109 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Operating Leases We lease certain office space, warehousing and equipment under various operating leases. These leases expire at various dates through fiscal 2019 and generally provide for the payment of taxes, insurance, operating expenses and maintenance costs. Additionally, certain leases contain escalation clauses that provide for increased rents resulting from the pass‑through of increases in operating costs, property taxes and consumer price indexes. At June 30, 2015, future minimum lease payments for the fiscal years ending June 30 are as follows: 2016 $ 1,436 2017 1,307 2018 1,012 2019 378 2020 - 2021 and thereafter - $ 4,133 Rent expense under all operating leases amounted to $2,157, $2,340 and $2,485 for the years ended June 30, 2015, 2014 and 2013, respectively. Legal Matters 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 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 Trans Video Electronics Ltd. U.S. District Court of Delaware U.S. Patent Nos. 5,594,936 and 5,991,801 Broadband iTV, Inc. U.S. District Court of Hawaii U.S. Patent No. 7,361,336 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 We continue to review our potential obligations under our indemnification agreements with these customers and the indemnity obligations to these customers from other vendors that also provided systems and services to 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 Severance Arrangements 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 Chief Executive Officer (“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 Chief Financial Officer may be entitled to bonuses during the severance period. At June 30, 2015, the maximum contingent liability under these agreements is $2,217. Our employment agreements with certain of our employees contain certain offset provisions, as defined in their respective agreements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events We have evaluated subsequent events through the date these financial statements were issued and determined that there were no material subsequent events that required recognition or additional disclosure in our consolidated financial statements. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II CONCURRENT COMPUTER CORPORATION VALUATION AND QUALIFYING ACCOUNTS For The Years Ended June 30, 2015, 2014 and 2013 (Amounts in thousands) Description Balance at Charged Expenses Deductions (a) Balance at Reserves and allowances deducted from asset accounts or accrued as expenses: 2015 Allowance for doubtful accounts $ 78 $ - $ (60 ) $ 18 Warranty accrual 78 254 (168 ) 164 2014 Allowance for doubtful accounts $ 70 $ 20 $ (12 ) $ 78 Warranty accrual 119 124 (165 ) 78 2013 Allowance for doubtful accounts $ 80 $ 14 $ (24 ) $ 70 Warranty accrual 181 183 (245 ) 119 (a) Charges and adjustments to the reserve accounts for write-offs and credits issued during the year. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Concurrent and all wholly-owned domestic and foreign subsidiaries. We have no unconsolidated entities and no special purpose entities. All intercompany transactions and balances have been eliminated in consolidation. |
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 and Reclassification | Immaterial Restatement of Previously Issued Financial Statements and Reclassification Subsequent to the issuance of our fiscal year 2014 consolidated financial statements, we identified an error in the consolidated statements of cash flows relating to the presentation of spare parts purchases used to support our obligations under customer contracts. Cash outflows of $591 and $266 for the years ended June 30, 2014 and 2013 were improperly classified as investing activities rather than as operating activities in our consolidated statements of cash flows. We have evaluated the effects of these misstatements for each of these years and concluded that none of these periods are materially misstated. Notwithstanding, we have corrected the accompanying consolidated cash flow presentation for the years ended June 30, 2014 and 2013. The impacts of these misstatements on our previously issued consolidated statements of cash flows for the years ended June 30, 2014 and 2013 are presented below: Consolidated Statements of Cash Flows for the Year Ended June 30, 2014 As Previously Reported Adjustments As Restated Depreciation and amortization $ 2,322 $ (323 ) $ 1,999 Provision for excess and obsolete inventories 33 323 356 Other long-term assets, net (59 ) (591 ) (650 ) All other operating activities, net 4,472 - 4,472 Net cash provided by (used in) operating activities $ 6,768 $ (591 ) $ 6,177 Additions to property and equipment $ (1,900 ) $ 591 $ (1,309 ) All other investing activities, net - - - Net cash Provided by (used in) investing activities $ (1,900 ) $ 591 $ (1,309 ) Consolidated Statements of Cash Flows for the Year Ended June 30, 2013 As Previously Reported Adjustments As Restated Depreciation and amortization $ 3,158 $ (391 ) $ 2,767 Provision for excess and obsolete inventories 245 391 636 Other long-term assets, net 236 (266 ) (30 ) All other operating activities, net 1,285 - 1,285 Net cash provided by (used in) operating activities $ 4,924 $ (266 ) $ 4,658 Additions to property and equipment $ (1,447 ) $ 266 $ (1,181 ) All other investing activities, net 2,750 - 2,750 Net cash Provided by (used in) investing activities $ 1,303 $ 266 $ 1,569 Additionally, and in connection with the correction noted above, we have reclassified $913 of non-current spare parts from property and equipment, net to other long-term assets on our consolidated balance sheets at June 30, 2014 to conform to the June 30, 2015 presentation. Related impairment charges for excess and obsolescence of spare parts are included in cost of sales in the consolidated statements of operations. The notes to the consolidated financial statements have been corrected to give effect to these items. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (“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. |
Foreign Currency | Foreign Currency The functional currency of all of our foreign subsidiaries is the applicable local currency. The translation of the applicable foreign currencies into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using average rates of exchange prevailing during the fiscal year. Adjustments resulting from the translation of foreign currency financial statements are accumulated in a separate component of stockholders’ equity. Gains or losses resulting from foreign currency transactions are included in the consolidated statements of operations, except for those relating to intercompany transactions of a long-term investment nature, which are accumulated in a separate component of stockholders’ equity. Losses on foreign currency transactions of $626, $257 and $348 for the years ended June 30, 2015, 2014 and 2013, respectively, are included in other expense, net in the consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash balances and short-term investments with original maturities of 90 days or less at the date of purchase are considered cash equivalents. Cash equivalents are stated at cost plus accrued interest, which approximates market value, and represent cash and cash invested in money market funds. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, determined on a first-in, first-out basis. The cost inventories is comprised of material, labor and overhead. We reduce the recorded value of excess and obsolete inventory to its market value based upon historical and anticipated usage. Our provision for excess and obsolescence of inventories was $28, $33 and $245 for the years ended June 30, 2015, 2014 and 2013, respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at acquired cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the estimated useful lives of assets ranging from one to five years. Leasehold improvements are amortized over the shorter of the useful lives of the improvements or the terms of the related lease. Gains and losses resulting from the disposition of property and equipment are included in operations. Expenditures for repairs and maintenance are charged to operations as incurred and expenditures for major renewals and betterments are capitalized. |
Spare Parts Inventory | Spare Parts Inventory We maintain a supply of repairable and reusable spare parts for possible use in future warranty repairs of our installed systems. We have classified this inventory within other long-term assets in our consolidated balance sheets. As these service parts age over the related product post-installation service life covered by a warranty, we reduce the net carrying value of our spare parts inventory to account for the excess that builds over the service life. For certain spare parts, our assessment also includes recent usage under the associated warranties. The post‑installation warranty service life of our systems is generally three to five years and, at the end of the service life, the carrying value for these parts is reduced to zero. Our provision for excess and obsolescence of our spare parts inventory was $578, $323 and $391 for the years ended June 30, 2015, 2014 and 2013, respectively. |
Revenue Recognition Policy | Revenue Recognition Policy In September 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2009-13, Multiple Deliverable Revenue Arrangements – A Consensus of the FASB Emerging Issues Task Force 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 No. 2009‑14, Software (Topic 985) – Certain Revenue Arrangements That Include Software Elements Software Revenue Recognition Our sales model for multi-screen video analytics products (formerly called MDI) 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 multi-screen video analytics software 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 (“ 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. As a result of the adoption of ASU 2009-13, 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. W 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, 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 content delivery 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. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling amounts we bill to our customers are included in product revenues and the related shipping and handling costs we incur are included in product cost of sales. |
Taxes Collected from Customers and Remitted to Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities Taxes assessed by a governmental authority that are imposed on revenue transactions between us and our customers are presented on a net basis in our consolidated statements of operations. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts receivable is based on an analysis of our historical charge-off ratio, our aging of accounts receivable and our assessment of the collectability of our receivables. If there is a deterioration of one of our customer’s credit worthiness or actual account defaults are higher than our historical trends, our reserve estimates could be adversely impacted. |
Deferred Revenue | Deferred Revenue Deferred revenue consists of billings for maintenance contracts and for products that are pending completion of the revenue recognition process. Maintenance revenue, whether bundled with the product or priced separately, is recognized ratably over the maintenance period. For contracts extending beyond one year, deferred revenue related to the contract period extending beyond 12 months is classified among long-term liabilities. |
Defined Benefit Pension Plan | Defined Benefit Pension Plan We maintain defined benefit pension plans (the “Pension Plan”) for a number of former employees (“participants”) of our German subsidiary. In 1998, the pension plan was closed to new employees and no existing employees are eligible to participate, as all eligible participants are no longer employed by Concurrent. The Pension Plan provides benefits to be paid to all participants at retirement based primarily on years of service with Concurrent and compensation rates in effect near retirement. Our policy is to fund benefits attributed to participants’ services to date as well as service expected to be earned in the future. The determination of our Pension Plan benefit obligation and expense is dependent on our selection of certain assumptions used by actuaries in calculating such amounts. Those assumptions include, among others, the weighted average discount rate, the weighted average expected rate of return on plan assets and the weighted average rate of compensation increase. To the extent that these assumptions change, our future benefit obligation and net periodic pension expense may be positively or negatively impacted. |
Capitalized Software | Capitalized Software We account for software development costs in accordance with Accounting Standards Codification (“ASC”) Topic 985-20, Software |
Research And Development | Research and Development Research and development expenditures are expensed as incurred. These expenditures include compensation costs, materials, other direct expenses and allocated costs of information technology and facilities. |
Basic and Diluted Net (Loss) Income per Share | Basic and Diluted Net (Loss) Income per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each year. Diluted net income (loss) per share is computed by dividing net income (loss) 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. Common share equivalents of 181,579, 110,635 and 232,437 for the years ended June 30, 2015, 2014 and 2013, respectively, were excluded from the calculation as their effect was anti-dilutive. The following table presents a reconciliation of the numerators and denominators of basic and diluted income (loss) per share for the periods indicated: Year Ended June 30, 2015 2014 2013 Basic and diluted EPS calculation: Net income (loss) $ (345 ) $ 18,505 $ 4,248 Basic weighted average number of shares outstanding 9,067,697 8,910,907 8,735,544 Effect of dilutive securities: Employee stock options - 13,634 65 Restricted shares - 161,051 174,183 Diluted weighted average number of shares outstanding 9,067,697 9,085,592 8,909,792 Basic EPS $ (0.04 ) $ 2.08 $ 0.49 Diluted EPS $ (0.04 ) $ 2.04 $ 0.48 |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets We evaluate the recoverability of long-lived assets, other than indefinite lived intangible assets, for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, we recognize an impairment loss only if its carrying amount is not recoverable through its undiscounted cash flows and measure the impairment loss based on the difference between the carrying amount and fair value based on discounted cash flows. As a result of these evaluations, we have not recorded any impairment losses related to long-lived assets, for any of the years ended June 30, 2015, 2014 and 2013. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly fashion between market participants at the measurements date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset of liability. The Accounting Standards Codification 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. We have no financial assets that are measured on a recurring basis that fall within Level 2 or Level 3 of the fair value hierarchy. Our financial assets that are measured at fair value on a recurring basis as of June 30, 2015 are as follows: As of June 30, 2015 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 15,406 $ 15,406 $ - $ - Money market funds 10,045 10,045 - - Cash and cash equivalents $ 25,451 $ 25,451 $ - $ - Our financial assets that are measured at fair value on a recurring basis as of June 30, 2014 are as follows: As of June 30, 2014 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 18,037 $ 18,037 $ - $ - Money market funds 10,037 10,037 - - Cash and cash equivalents $ 28,074 $ 28,074 $ - $ - |
Income Taxes | Income Taxes Concurrent and its domestic subsidiaries file a consolidated federal income tax return. All foreign subsidiaries file individual or consolidated tax returns pursuant to local tax laws. We follow the asset and liability method of accounting for income taxes. Under the asset and liability method, a deferred tax asset or liability is recognized for temporary differences between financial reporting and income tax basis of assets and liabilities, tax credit carryforwards and operating loss carryforwards. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that such deferred tax assets will not be realized. |
Share-Based Compensation | Share-Based Compensation We account for share-based compensation in accordance with ASC Topic 718-10, Stock Compensation |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income (loss). Comprehensive income (loss) is defined as a change in equity during the financial reporting period of a business enterprise resulting from non-owner sources. Components of accumulated other comprehensive income (loss) are disclosed in the consolidated statements of comprehensive income (loss). |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Impacts of Misstatements on Previously Issued Consolidated Statements of Cash Flows | The impacts of these misstatements on our previously issued consolidated statements of cash flows for the years ended June 30, 2014 and 2013 are presented below: Consolidated Statements of Cash Flows for the Year Ended June 30, 2014 As Previously Reported Adjustments As Restated Depreciation and amortization $ 2,322 $ (323 ) $ 1,999 Provision for excess and obsolete inventories 33 323 356 Other long-term assets, net (59 ) (591 ) (650 ) All other operating activities, net 4,472 - 4,472 Net cash provided by (used in) operating activities $ 6,768 $ (591 ) $ 6,177 Additions to property and equipment $ (1,900 ) $ 591 $ (1,309 ) All other investing activities, net - - - Net cash Provided by (used in) investing activities $ (1,900 ) $ 591 $ (1,309 ) Consolidated Statements of Cash Flows for the Year Ended June 30, 2013 As Previously Reported Adjustments As Restated Depreciation and amortization $ 3,158 $ (391 ) $ 2,767 Provision for excess and obsolete inventories 245 391 636 Other long-term assets, net 236 (266 ) (30 ) All other operating activities, net 1,285 - 1,285 Net cash provided by (used in) operating activities $ 4,924 $ (266 ) $ 4,658 Additions to property and equipment $ (1,447 ) $ 266 $ (1,181 ) All other investing activities, net 2,750 - 2,750 Net cash Provided by (used in) investing activities $ 1,303 $ 266 $ 1,569 |
Reconciliation of Numerators and Denominators of Basic and Diluted Income (Loss) Per Share | The following table presents a reconciliation of the numerators and denominators of basic and diluted income (loss) per share for the periods indicated: Year Ended June 30, 2015 2014 2013 Basic and diluted EPS calculation: Net income (loss) $ (345 ) $ 18,505 $ 4,248 Basic weighted average number of shares outstanding 9,067,697 8,910,907 8,735,544 Effect of dilutive securities: Employee stock options - 13,634 65 Restricted shares - 161,051 174,183 Diluted weighted average number of shares outstanding 9,067,697 9,085,592 8,909,792 Basic EPS $ (0.04 ) $ 2.08 $ 0.49 Diluted EPS $ (0.04 ) $ 2.04 $ 0.48 |
Financial Assets Measured on Recurring Basis | Our financial assets that are measured at fair value on a recurring basis as of June 30, 2015 are as follows: As of June 30, 2015 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 15,406 $ 15,406 $ - $ - Money market funds 10,045 10,045 - - Cash and cash equivalents $ 25,451 $ 25,451 $ - $ - Our financial assets that are measured at fair value on a recurring basis as of June 30, 2014 are as follows: As of June 30, 2014 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 18,037 $ 18,037 $ - $ - Money market funds 10,037 10,037 - - Cash and cash equivalents $ 28,074 $ 28,074 $ - $ - |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Components of Inventories | Inventories consist of the following: June 30, 2015 2014 Raw materials $ 1,403 $ 1,265 Work-in-process 271 319 Finished goods 1,754 1,688 $ 3,428 $ 3,272 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property and Equipment, net [Abstract] | |
Property and Equipment | Property and equipment consists of the following: June 30, 2015 2014 Leasehold improvements $ 2,723 $ 2,807 Machinery and equipment 14,075 14,196 16,798 17,003 Less: Accumulated depreciation (14,350 ) (14,835 ) $ 2,448 $ 2,168 |
Changes to the Asset Retirement Obligation Associated with Lease Restoration Costs | The changes to the asset retirement obligation associated with lease restoration costs are as follows: Asset retirement obligation at June 30, 2014 $ 413 Accretion of asset retirement obligation - Payment of restoration costs - Impact of foreign exchange rates (74 ) Asset retirement obligation at June 30, 2015 $ 339 |
Intangibles Assets, net (Tables
Intangibles Assets, net (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Intangibles Assets, net [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: Weighted Average Remaining June 30, Useful Life 2015 2014 Cost of amortizable intangibles: Purchased technology - $ 7,700 $ 7,700 Customer relationships 1.3 years 1,900 1,900 Patents 11.0 years 130 101 Total cost of intangibles 9,730 9,701 Less accumulated amortization: Purchased technology (7,700 ) (7,700 ) Customer relationships (1,679 ) (1,506 ) Patents (28 ) (19 ) Total accumulated amortization (9,407 ) (9,225 ) Total intangible assets, net $ 323 $ 476 |
Amortization Expense Related to Intangible Assets | The estimated amortization expense related to intangible assets for the next five fiscal years ending June 30 is as follows: 2016 $ 182 2017 58 2018 10 2019 10 2020 10 |
Accounts Payable and Accrued 32
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accounts Payable and Accrued Expenses [Abstract] | |
Components of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: June 30, 2015 2014 Accounts payable, trade $ 2,682 $ 1,838 Accrued payroll, vacation and other employee expenses 2,332 4,331 Accrued income taxes 23 221 Dividend payable 93 67 Other accrued expenses 1,212 1,134 $ 6,342 $ 7,591 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Components of Income Before Provision for Income Taxes | The domestic and foreign components of income before provision for income taxes are as follows: Year Ended June 30, 2015 2014 2013 United States $ 294 $ 3,930 $ 4,979 Foreign 46 1,167 (362 ) $ 340 $ 5,097 $ 4,617 |
Components of the Provision (Benefit) for Income Taxes | The components of the provision (benefit) for income taxes are as follows: Year Ended June 30, 2015 2014 2013 Current: Federal $ 29 $ 78 $ 128 State 5 28 151 Foreign 405 438 90 Total 439 544 369 Deferred: Federal 71 (12,338 ) - State 140 (1,361 ) - Foreign 35 (253 ) - Total 246 (13,952 ) - Total $ 685 $ (13,408 ) $ 369 |
Schedule of Reconciliation of the Income Tax Expense (Benefit) Computed Using the Federal Statutory Income Tax Rate to the Provision (Benefit) for Income Taxes | A reconciliation of the income tax expense (benefit) computed using the federal statutory income tax rate to our provision (benefit) for income taxes is as follows: Year Ended June 30, 2015 2014 2013 Income before provision (benefit) for income taxes $ 340 $ 5,097 $ 4,617 Provision at Federal statutory rate 116 1,733 1,570 Change in valuation allowance 31 (15,859 ) (5,444 ) Permanent differences 80 350 22 Net operating loss expiration and adjustment 365 13 4,801 Change in state tax rates 31 (21 ) - Change in foreign tax rates 27 43 - Change in uncertainty in income taxes 23 21 16 Foreign rate differential (3 ) (40 ) 23 State and foreign tax expense 40 145 194 Stock option classification change due to repricing - - (653 ) Other (25 ) 207 (160 ) Provision (benefit) for income taxes $ 685 $ (13,408 ) $ 369 |
Schedule of Deferred Tax Assets and Liabilities | As of June 30, 2015 and 2014, our deferred tax assets and liabilities were comprised of the following: June 30, 2015 2014 Deferred tax assets related to: U.S. and foreign net operating loss carryforwards $ 41,339 $ 43,230 Book and tax basis differences for property and equipment 742 563 Bad debt, warranty and inventory reserves 672 707 Accrued compensation 943 944 Deferred revenue 395 596 U.S. credit carryforwards 561 549 Stock compensation 798 992 Other 1,181 1,076 Deferred tax assets 46,631 48,657 Valuation allowance (32,435 ) (33,851 ) Total deferred tax assets 14,196 14,806 Deferred tax liabilities related to: Acquired intangibles 63 117 Total deferred tax liability 63 117 Deferred income taxes, net $ 14,133 $ 14,689 |
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at June 30, 2013 $ 154 Additions based on tax positions related to the current year - Additions for tax positions of prior years 143 Reductions for tax positions for prior year - Reductions for lapse in statute of limitations - Settlements - Balance at June 30, 2014 297 Additions based on tax positions related to the current year - Additions for tax positions of prior years - Reductions for tax positions for prior year - Reductions for lapse in statute of limitations - Settlements - Balance at June 30, 2015 $ 297 |
Pensions and Other Postretire34
Pensions and Other Postretirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Pensions and Other Postretirement Benefits [Abstract] | |
Schedule of Obligations and Funded Status | A reconciliation of the changes in the Pensions Plans’ benefit obligations and fair value of plan assets over the two‑year period ended June 30, 2015, and a statement of the funded status at June 30, 2015 for these years for the Pension Plans is as follows: Obligations and Funded Status June 30, 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 5,567 $ 4,967 Interest cost 126 174 Actuarial loss 224 460 Foreign currency exchange rate change (1,032 ) 238 Benefits paid (257 ) (272 ) Benefit obligation at end of year $ 4,628 $ 5,567 Change in plan assets: Fair value of plan assets at beginning of year $ 1,984 $ 2,052 Actual return on plan assets 30 67 Employer contributions 22 24 Benefits paid (247 ) (255 ) Foreign currency exchange rate change (357 ) 96 Fair value of plan assets at end of year $ 1,432 $ 1,984 Funded status at end of year $ (3,196 ) $ (3,583 ) |
Schedule of Amounts Recognized in the Consolidated Balance Sheets | Amounts Recognized in the Consolidated Balance Sheets June 30, 2015 2014 Other accrued expenses (1) $ (7 ) $ (17 ) Pension liability - long-term liabilities (3,189 ) (3,566 ) Total pension liability $ (3,196 ) $ (3,583 ) Accumulated other comprehensive loss $ 1,214 $ 1,246 (1) Included in line item accounts payable and accrued expenses |
Schedule of Amounts Recognized in Other Comprehensive Income | Items Not Yet Recognized as a Component of Net Periodic Pension Cost: June 30, 2015 2014 Net loss $ 1,214 $ 1,246 $ 1,214 $ 1,246 |
Schedule of Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets June 30, 2015 2014 Projected benefit obligation $ 4,628 $ 5,567 Accumulated benefit obligation $ 4,628 $ 5,567 Fair value of plan assets $ 1,432 $ 1,984 |
Schedule of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income | Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income Year Ended June 30, 2015 2014 2013 Net Periodic Benefit Cost Service cost $ - $ - $ 3 Interest cost 126 174 189 Expected return on plan assets (45 ) (61 ) (73 ) Recognized actuarial loss 40 19 8 Amortization of unrecognized net transition obligation (asset) - - - Net periodic benefit cost $ 121 $ 132 $ 127 |
Schedule of Assumptions | The following table sets forth the assumptions used to determine benefit obligations: June 30, 2015 2014 Discount rate 2.13 % 2.65 % Expected return on plan assets 2.50 % 3.50 % Compensation increase rate 0.00 % 0.00 % The following table sets forth the assumptions used to determine net periodic benefit cost: Year Ended June 30, 2015 2014 2013 Discount rate 2.65 % 3.43 % 4.00 % Expected return on plan assets 3.50 % 3.00 % 3.50 % Compensation increase rate 0.00 % 0.00 % 0.00 % |
Schedule of Plan Assets | The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value, as well as the percentage of total plan assets for each category at June 30, 2015: Level 1 Level 2 Level 3 Total Assets Percentage of Plan Assets 2015 Asset Category: Equity securities $ - $ 612 $ - $ 612 42.8 % Debt securities - 231 - 231 16.1 % Cash surrender value insurance contracts - 589 - 589 41.1 % Totals $ - $ 1,432 $ - $ 1,432 100.0 % The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value, as well as the percentage of total plan assets for each category at June 30, 2014: Level 1 Level 2 Level 3 Total Assets Percentage of Plan Assets 2014 Asset Category: Cash and cash equivalents $ 136 $ - $ - $ 136 6.9 % Equity securities - 734 - 734 37.1 % Debt securities - 409 - 409 20.6 % Cash surrender value insurance contracts - 701 - 701 35.4 % Other 4 - - 4 0.1 % Totals $ 140 $ 1,844 $ - $ 1,984 100.0 % |
Schedule of Estimated Future Benefit Payments | Expected benefit payments, which reflect expected future service, during the next ten fiscal years ending June 30 are as follows: Pension 2016 $ 248 2017 250 2018 254 2019 252 2020 251 2021 - 2025 1,226 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Segment Information [Abstract] | |
Summary of Revenues by Geographic Area | A summary of our revenue and long-lived assets by geographic area is as follows: Year Ended June 30, 2015 2014 2013 United States $ 34,713 $ 40,993 $ 38,973 Canada 7,046 5,746 6,868 Total North America 41,759 46,739 45,841 Japan 11,929 11,161 10,079 Other Asia-Pacific 2,230 3,193 2,355 Total Asia-Pacific 14,159 14,354 12,434 Europe 8,532 9,964 5,165 South America 9 114 4 Total revenue $ 64,459 $ 71,171 $ 63,444 |
Summary of Long Lived Assets | June 30, 2015 2014 Long-lived assets: United States $ 15,322 $ 15,543 Europe 301 543 Japan 691 806 Other Asia-Pacific 23 55 Total long-lived assets $ 16,337 $ 16,947 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 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 stock options and restricted stock to employees, board members and non-employees, as follows: Year Ended June 30, 2015 2014 2013 Share-based compensation expense included in the consolidated statement of operations: Cost of sales $ 53 $ 56 $ 55 Sales and marketing 115 176 165 Research and development 105 150 128 General and administrative 629 748 500 Total 902 1,130 848 Tax benefit - - - Share-based compensation expense, net of taxes $ 902 $ 1,130 $ 848 |
Summary of Option Activity | A summary of our stock option activity as of June 30, 2015 and changes during fiscal year 2015 is presented below: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of July 1, 2014 183,317 $ 10.92 Granted - - Exercised - - Forfeited or expired (90,801 ) 9.86 Outstanding as of June 30, 2015 92,516 $ 11.96 1.97 $ 6 Vested at June 30, 2015 92,516 $ 11.96 1.97 $ 6 Exercisable at June 30, 2015 92,516 $ 11.96 1.97 $ 6 |
Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable at June 30, 2015: Outstanding Options Options Exercisable Range of Exercise Prices Weighted- Average Remaining Contractual Life (Years) Number Outstanding Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $5.90 3.09 20,000 $ 5.90 20,000 $ 5.90 $11.10 - $13.00 1.66 26,910 $ 12.65 26,910 $ 12.65 $13.50 1.95 26,606 $ 13.50 26,606 $ 13.50 $14.70 - $15.30 1.23 15,000 $ 14.90 15,000 $ 14.90 $16.40 1.34 4,000 $ 16.40 4,000 $ 16.40 $5.90 - $16.40 1.97 92,516 $ 11.96 92,516 $ 11.96 |
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 service condition restricted stock awards during fiscal year 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 316,000 6.87 Vested (88,846 ) 6.26 Forfeited (40,098 ) 6.27 Non-vested at June 30, 2015 370,690 $ 6.69 |
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 PSAs during fiscal year 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 ) 5.30 Forfeited (38,732 ) 5.82 Non-vested at June 30, 2015 25,887 $ 5.84 |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Concentration of Risk [Abstract] | |
Summary of Revenues by Significant Customers | In addition, the following summarizes revenues by significant customer where such revenue exceeded 10% of total revenues for any one of the indicated periods: Year Ended June 30, 2015 2014 2013 Customer A <10% 13 % 12 % Customer B <10% 13 % 12 % |
Summary of Significant Accounts Receivable | The following summarizes accounts receivable by significant customer where such accounts receivable exceeded 10% of total accounts receivable for any one of the indicated periods: June 30, 2015 2014 Customer C 37% <10% Customer D <10% 15% Customer E <10% 12% Customer F <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: Year Ended June 30, 2015 2014 2013 Vendor A 20 % 18 % 16 % Vendor B 19 % 13 % <10 % Vendor C 15 % 23 % 24 % |
Quarterly Consolidated Financ38
Quarterly Consolidated Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Consolidated Financial Information [Abstract] | |
Schedule of Quarterly Consolidated Financial Information | The following is a summary of quarterly financial results for the fiscal years ended June 30, 2015 and 2014: Three Months Ended September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 2015 Net sales $ 17,540 $ 15,996 $ 17,110 $ 13,813 Gross margin $ 9,698 $ 8,807 $ 10,085 $ 7,800 Operating income (loss) $ 849 $ (608 ) $ 1,462 $ (757 ) Net income (loss) $ 387 $ (571 ) $ 784 $ (945 ) Net income (loss) per share - basic $ 0.04 $ (0.06 ) $ 0.09 $ (0.10 ) Net income (loss) per share - diluted $ 0.04 $ (0.06 ) $ 0.09 $ (0.10 ) Three Months Ended September 30, 2013 December 31, 2013 March 31, 2014 June 30, 2014 2014 Net sales $ 17,198 $ 17,837 $ 18,278 $ 17,858 Gross margin $ 9,502 $ 9,956 $ 10,248 $ 10,707 Operating income $ 800 $ 1,133 $ 1,260 $ 2,107 Net income $ 734 $ 1,089 $ 1,082 $ 15,600 Net income per share - basic $ 0.08 $ 0.12 $ 0.12 $ 1.75 Net income per share - diluted $ 0.08 $ 0.12 $ 0.12 $ 1.72 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Dividends [Abstract] | |
Summary of Dividend Activity | Cash dividends declared on our common stock during fiscal year 2015 are summarized in the following table: Dividends Declared Record Date Payment Date Type Per Share Total September 15, 2014 September 29, 2014 Quarterly $ 0.12 $ 1,112 December 16, 2014 December 30, 2014 Quarterly $ 0.12 $ 1,137 March 16, 2015 March 30, 2015 Quarterly $ 0.12 $ 1,133 June 15, 2015 June 29, 2015 Quarterly $ 0.12 $ 1,140 Total $ 4,522 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of taxes, for the year ended June 30, 2015: Pension and Currency Total Balance at June 30, 2014 $ (1,246 ) $ 1,155 $ (91 ) Other comprehensive income before reclassifications - 168 168 Amounts reclassified from accumulated other comprehensive income (loss) 32 - 32 Net current period other comprehensive income (loss) 32 168 200 Balance at June 30, 2015 $ (1,214 ) $ 1,323 $ 109 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule of Minimum Lease Payments | At June 30, 2015, future minimum lease payments for the fiscal years ending June 30 are as follows: 2016 $ 1,436 2017 1,307 2018 1,012 2019 378 2020 - 2021 and thereafter - $ 4,133 |
Patent Infringement Claims | 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 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 Trans Video Electronics Ltd. U.S. District Court of Delaware U.S. Patent Nos. 5,594,936 and 5,991,801 Broadband iTV, Inc. U.S. District Court of Hawaii U.S. Patent No. 7,361,336 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 |
Overview of the Business (Detai
Overview of the Business (Details) | 12 Months Ended |
Jun. 30, 2015Segment | |
Overview of the Business [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Consolidated Statement of Cash Flows [Abstract] | ||||||||||||
Depreciation and amortization | $ 1,762 | $ 1,999 | $ 2,767 | |||||||||
Provision for excess and obsolete inventories | 606 | 356 | 636 | |||||||||
Other long-term assets, net | (329) | (650) | (30) | |||||||||
All other operating activities, net | 4,472 | 1,285 | ||||||||||
Net cash provided by operating activities | 3,544 | 6,177 | 4,658 | |||||||||
Additions to property and equipment | (1,949) | (1,309) | (1,181) | |||||||||
All other investing activities, net | 0 | 2,750 | ||||||||||
Net cash provided by (used in) investing activities | (1,285) | (1,309) | 1,569 | |||||||||
Consolidated Balance Sheets [Abstract] | ||||||||||||
Property, plant and equipment, net | $ 2,448 | $ 2,168 | 2,448 | 2,168 | ||||||||
Losses on foreign currency transactions | (626) | (257) | (348) | |||||||||
Provision for excess and obsolescence of inventory | 28 | 33 | 28 | 33 | 245 | |||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Provision for excess and obsolescence of spare parts inventory | 578 | 323 | $ 578 | $ 323 | $ 391 | |||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Antidilutive securities excluded from earnings per share (in shares) | 181,579 | 110,635 | 232,437 | |||||||||
Net income (loss) | $ (945) | $ 784 | $ (571) | $ 387 | $ 15,600 | $ 1,082 | $ 1,089 | $ 734 | $ (345) | $ 18,505 | $ 4,248 | |
Basic weighted average number of shares outstanding (in shares) | 9,067,697 | 8,910,907 | 8,735,544 | |||||||||
Diluted weighted average number of shares outstanding (in shares) | 9,067,697 | 9,085,592 | 8,909,792 | |||||||||
Basic EPS (in dollars per share) | $ (0.10) | $ 0.09 | $ (0.06) | $ 0.04 | $ 1.75 | $ 0.12 | $ 0.12 | $ 0.08 | $ (0.04) | $ 2.08 | $ 0.49 | |
Diluted EPS (in dollars per share) | $ (0.10) | $ 0.09 | $ (0.06) | $ 0.04 | $ 1.72 | $ 0.12 | $ 0.12 | $ 0.08 | $ (0.04) | $ 2.04 | $ 0.48 | |
Fair Value By Asset Class [Line Items] | ||||||||||||
Cash and cash equivalents | $ 25,451 | $ 28,074 | $ 25,451 | $ 28,074 | $ 27,927 | $ 29,613 | ||||||
As Previously Reported [Member] | ||||||||||||
Consolidated Statement of Cash Flows [Abstract] | ||||||||||||
Depreciation and amortization | 2,322 | 3,158 | ||||||||||
Provision for excess and obsolete inventories | 33 | 245 | ||||||||||
Other long-term assets, net | (59) | 236 | ||||||||||
All other operating activities, net | 4,472 | 1,285 | ||||||||||
Net cash provided by operating activities | 6,768 | 4,924 | ||||||||||
Additions to property and equipment | (1,900) | (1,447) | ||||||||||
All other investing activities, net | 0 | 2,750 | ||||||||||
Net cash provided by (used in) investing activities | (1,900) | 1,303 | ||||||||||
Adjustments [Member] | ||||||||||||
Consolidated Statement of Cash Flows [Abstract] | ||||||||||||
Depreciation and amortization | (323) | (391) | ||||||||||
Provision for excess and obsolete inventories | 323 | 391 | ||||||||||
Other long-term assets, net | (591) | (266) | ||||||||||
All other operating activities, net | 0 | 0 | ||||||||||
Net cash provided by operating activities | (591) | (266) | ||||||||||
Additions to property and equipment | 591 | 266 | ||||||||||
All other investing activities, net | 0 | 0 | ||||||||||
Net cash provided by (used in) investing activities | 591 | $ 266 | ||||||||||
Consolidated Balance Sheets [Abstract] | ||||||||||||
Property, plant and equipment, net | 913 | 913 | ||||||||||
Minimum [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Useful lives of assets | 1 year | |||||||||||
Post-installation warranty service life of system | 3 years | |||||||||||
Maintenance period | 1 year | |||||||||||
Maximum [Member] | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Useful lives of assets | 5 years | |||||||||||
Post-installation warranty service life of system | 5 years | |||||||||||
Maintenance period | 3 years | |||||||||||
Recurring Basis [Member] | ||||||||||||
Fair Value By Asset Class [Line Items] | ||||||||||||
Cash | 15,406 | 18,037 | $ 15,406 | 18,037 | ||||||||
Money market funds | 10,045 | 10,037 | 10,045 | 10,037 | ||||||||
Cash and cash equivalents | 25,451 | 28,074 | 25,451 | 28,074 | ||||||||
Recurring Basis [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||||||||||||
Fair Value By Asset Class [Line Items] | ||||||||||||
Cash | 15,406 | 18,037 | 15,406 | 18,037 | ||||||||
Money market funds | 10,045 | 10,037 | 10,045 | 10,037 | ||||||||
Cash and cash equivalents | 25,451 | 28,074 | 25,451 | 28,074 | ||||||||
Recurring Basis [Member] | Observable Inputs (Level 2) [Member] | ||||||||||||
Fair Value By Asset Class [Line Items] | ||||||||||||
Cash | 0 | 0 | 0 | 0 | ||||||||
Money market funds | 0 | 0 | 0 | 0 | ||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||||||||
Recurring Basis [Member] | Unobservable Inputs (Level 3) [Member] | ||||||||||||
Fair Value By Asset Class [Line Items] | ||||||||||||
Cash | 0 | 0 | 0 | 0 | ||||||||
Money market funds | 0 | 0 | 0 | 0 | ||||||||
Cash and cash equivalents | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Employee Stock Option [Member] | ||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Effect of dilutive securities (in shares) | 0 | 13,634 | 65 | |||||||||
Restricted Stock [Member] | ||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Effect of dilutive securities (in shares) | 0 | 161,051 | 174,183 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Inventories [Abstract] | ||
Raw materials | $ 1,403 | $ 1,265 |
Work-in-process | 271 | 319 |
Finished goods | 1,754 | 1,688 |
Total inventory | $ 3,428 | $ 3,272 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property and Equipment [Abstract] | |||
Leasehold improvements | $ 2,723 | $ 2,807 | |
Machinery and equipment | 14,075 | 14,196 | |
Property and equipment, gross | 16,798 | 17,003 | |
Less: Accumulated depreciation | (14,350) | (14,835) | |
Property and equipment, total | 2,448 | 2,168 | |
Depreciation expense for property and equipment | 1,580 | 1,618 | $ 1,863 |
Net book value | 0 | 0 | |
Asset retirement obligation [Roll Forward] | |||
Asset retirement obligation, June 30, 2014 | 413 | ||
Accretion of asset retirement obligation | 0 | ||
Payment of restoration costs | 0 | ||
Impact of foreign exchange rates | (74) | ||
Asset retirement obligation, June 30, 2015 | $ 339 | $ 413 |
Intangibles Assets, net (Detail
Intangibles Assets, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total cost of intangibles | $ 9,730 | $ 9,701 | |
Total accumulated amortization | (9,407) | (9,225) | |
Total intangible assets, net | 323 | 476 | |
Amortization expense | 182 | 381 | $ 904 |
Estimated amortization expense related to intangible assets [Abstract] | |||
2,016 | 182 | ||
2,017 | 58 | ||
2,018 | 10 | ||
2,019 | 10 | ||
2,020 | 10 | ||
Purchased Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost of intangibles | 7,700 | 7,700 | |
Total accumulated amortization | $ (7,700) | (7,700) | |
Weighted Average Remaining Useful Life | |||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost of intangibles | $ 1,900 | 1,900 | |
Total accumulated amortization | $ (1,679) | (1,506) | |
Weighted Average Remaining Useful Life | 1 year 3 months 18 days | ||
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost of intangibles | $ 130 | 101 | |
Total accumulated amortization | $ (28) | $ (19) | |
Weighted Average Remaining Useful Life | 11 years |
Accounts Payable and Accrued 47
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Accounts Payable and Accrued Expenses [Abstract] | ||
Accounts payable, trade | $ 2,682 | $ 1,838 |
Accrued payroll, vacation and other employee expenses | 2,332 | 4,331 |
Accrued income taxes | 23 | 221 |
Dividends payable | 93 | 67 |
Other accrued expenses | 1,212 | 1,134 |
Total accounts payable and accrued expenses | $ 6,342 | $ 7,591 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Components of income before provision for income taxes [Abstract] | |||
United States | $ 294 | $ 3,930 | $ 4,979 |
Foreign | 46 | 1,167 | (362) |
Income before provision for income taxes | 340 | 5,097 | 4,617 |
Current [Abstract] | |||
Federal | 29 | 78 | 128 |
State | 5 | 28 | 151 |
Foreign | 405 | 438 | 90 |
Total, Current | 439 | 544 | 369 |
Deferred [Abstract] | |||
Federal | 71 | (12,338) | 0 |
State | 140 | (1,361) | 0 |
Foreign | 35 | (253) | 0 |
Total, Deferred | 246 | (13,952) | 0 |
Provision (benefit) for income taxes | 685 | (13,408) | 369 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income before provision (benefit) for income taxes | 340 | 5,097 | 4,617 |
Provision at Federal statutory rate | 116 | 1,733 | 1,570 |
Change in valuation allowance | 31 | (15,859) | (5,444) |
Permanent differences | 80 | 350 | 22 |
Net operating loss expiration and adjustment | 365 | 13 | 4,801 |
Change in state tax rates | 31 | (21) | 0 |
Change in foreign tax rates | 27 | 43 | 0 |
Change in uncertainty in income taxes | 23 | 21 | 16 |
Foreign rate differential | (3) | (40) | 23 |
State and foreign tax expense | 40 | 145 | 194 |
Stock option classification change due to repricing | 0 | 0 | (653) |
Other | (25) | 207 | (160) |
Provision (benefit) for income taxes | 685 | (13,408) | 369 |
Deferred tax assets related to [Abstract] | |||
U.S. and foreign net operating loss carryforwards | 41,339 | 43,230 | |
Book and tax basis differences for property and equipment | 742 | 563 | |
Bad debt, warranty and inventory reserves | 672 | 707 | |
Accrued compensation | 943 | 944 | |
Deferred revenue | 395 | 596 | |
U.S. credit carryforwards | 561 | 549 | |
Stock compensation | 798 | 992 | |
Other | 1,181 | 1,076 | |
Deferred tax assets | 46,631 | 48,657 | |
Valuation allowance | (32,435) | (33,851) | |
Total deferred tax assets | 14,196 | 14,806 | |
Deferred tax liabilities related to [Abstract] | |||
Acquired intangibles | 63 | 117 | |
Total deferred tax liabilities | 63 | 117 | |
Deferred income taxes, net | 14,133 | 14,689 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, current | 1,422 | 1,458 | |
Deferred tax assets, noncurrent | 12,711 | 13,231 | |
U.S. Federal net operating loss carryforwards, income tax purposes | 92,826 | ||
Net operating loss carryforwards, amount to expire | 0 | ||
Alternative minimum tax credit | 383 | ||
Research and development credit carryforward | 140 | ||
U.S. Federal net operating loss carryforwards | 92,826 | ||
Net operating loss | 11,189 | ||
Research and development credits | 140 | ||
Valuation allowances for deferred tax assets | 32,435 | 33,851 | |
Change in valuation allowance | (1,416) | ||
Increase due to creation of deferred tax assets | 304 | ||
Decrease due to expiration and adjustment of domestic net operating loss carryforwards | 300 | ||
(Increase) Decrease due to exchange rate changes and the effect of unrealized gains/losses | (1,447) | ||
Increase due to miscellaneous adjustment of prior year deferred tax amounts | $ 13 | ||
Alternative minimum tax as percentage of earnings before income taxes, and state taxes in various jurisdictions (in hundredths) | 2.00% | ||
Reconciliation of unrecognized tax benefits | |||
Balance | $ 297 | 154 | |
Additions based on tax positions related to the current year | 0 | 0 | |
Additions for tax positions of prior years | 0 | 143 | |
Reductions for tax positions for prior year | 0 | 0 | |
Reductions for lapse in statute of limitations | 0 | 0 | |
Settlements | 0 | 0 | |
Balance | 297 | 297 | $ 154 |
Unrecognized tax benefits | 248 | ||
Interest | 23 | ||
Penalties | 0 | ||
Accrued interest | 258 | 236 | |
Accrued penalties | 88 | 88 | |
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward | 52,310 | ||
Decrease due to release of valuation allowance, deferred tax asset | 13,699 | ||
Foreign [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward | 28,153 | ||
Decrease due to release of valuation allowance, deferred tax asset | $ 214 | ||
(Increase) Decrease due to exchange rate changes and the effect of unrealized gains/losses | 14 | ||
Federal [Member] | 2020 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward | $ 14,218 | ||
Operating loss carryforward expiration date | Jun. 30, 2020 | ||
Federal [Member] | 2021 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward | $ 17,017 | ||
Operating loss carryforward expiration date | Jun. 30, 2021 | ||
Research and Development [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Carryforward period | 20 years |
Pensions and Other Postretire49
Pensions and Other Postretirement Benefits (Schedule of Obligations and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | 14 Months Ended | 22 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 20, 2013 | Jun. 30, 2015 | |
Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation at beginning of year | $ 5,567 | $ 4,967 | |||
Service cost | 0 | 0 | $ 3 | ||
Interest cost | 126 | 174 | 189 | ||
Actuarial loss | 224 | 460 | |||
Foreign currency exchange rate change | (1,032) | 238 | |||
Benefits paid | (257) | (272) | |||
Benefit obligation at end of year | 4,628 | 5,567 | 4,967 | $ 4,628 | |
Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 1,984 | 2,052 | |||
Actual return on plan assets | 30 | 67 | |||
Employer contributions | 22 | 24 | |||
Benefits paid | (247) | (255) | |||
Foreign currency exchange rate change | (357) | 96 | |||
Fair value of plan assets at end of year | 1,432 | 1,984 | 2,052 | 1,432 | |
Funded status at end of year | (3,196) | (3,583) | $ (3,196) | ||
United Kingdom Defined Contribution Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | 58 | 70 | 60 | ||
United States Defined Contribution Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer matching contribution (in hundredths) | 25.00% | 50.00% | |||
Employee contribution subject to employer match (in hundredths) | 5.00% | 5.00% | |||
Employer contributions | $ 443 | $ 388 | $ 183 | ||
Minimum [Member] | United Kingdom Defined Contribution Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer matching contribution (in hundredths) | 4.00% | ||||
Maximum [Member] | United Kingdom Defined Contribution Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer matching contribution (in hundredths) | 7.00% |
Pensions and Other Postretire50
Pensions and Other Postretirement Benefits (Schedule of Amounts Recognized in the Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | |
Pensions and Other Postretirement Benefits [Abstract] | |||
Other accrued expenses | [1] | $ (7) | $ (17) |
Pension liability - long-term liabilities | (3,189) | (3,566) | |
Total pension liability | (3,196) | (3,583) | |
Accumulated other comprehensive loss | $ 1,214 | $ 1,246 | |
[1] | Included in line item accounts payable and accrued expenses |
Pensions and Other Postretire51
Pensions and Other Postretirement Benefits (Schedule of Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Pensions and Other Postretirement Benefits [Abstract] | ||
Net loss | $ 1,214 | $ 1,246 |
Amounts recognized in OCI | $ 1,214 | $ 1,246 |
Pensions and Other Postretire52
Pensions and Other Postretirement Benefits (Schedule of Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Pensions and Other Postretirement Benefits [Abstract] | |||
Projected benefit obligation | $ 4,628 | $ 5,567 | $ 4,967 |
Accumulated benefit obligation | 4,628 | 5,567 | |
Fair value of plan assets | $ 1,432 | $ 1,984 | $ 2,052 |
Pensions and Other Postretire53
Pensions and Other Postretirement Benefits, (Schedule of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Pensions and Other Postretirement Benefits [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 3 |
Interest cost | 126 | 174 | 189 |
Expected return on plan assets | (45) | (61) | (73) |
Recognized actuarial loss | 40 | 19 | 8 |
Amortization of unrecognized net transition obligation (asset) | 0 | 0 | 0 |
Net periodic benefit cost | 121 | $ 132 | $ 127 |
Amount expected to amortized from AOCI into net periodic benefit cost | $ 50 |
Pensions and Other Postretire54
Pensions and Other Postretirement Benefits, (Schedule of Assumptions) (Details) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Assumptions used to determine benefit obligations [Abstract] | |||
Discount rate (in hundredths) | 2.13% | 2.65% | |
Expected return on plan assets (in hundredths) | 2.50% | 3.50% | |
Compensation increase rate (in hundredths) | 0.00% | 0.00% | |
Assumptions used to determine net periodic benefit cost [Abstract] | |||
Discount rate (in hundredths) | 2.65% | 3.43% | 4.00% |
Expected return on plan assets (in hundredths) | 3.50% | 3.00% | 3.50% |
Compensation increase rate (in hundredths) | 0.00% | 0.00% | 0.00% |
Pensions and Other Postretire55
Pensions and Other Postretirement Benefits (Schedule of Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,432 | $ 1,984 | $ 2,052 |
Percentage of Plan Assets (in hundredths) | 100.00% | 100.00% | |
Expected contributions in next fiscal year | $ 18 | ||
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 136 | ||
Percentage of Plan Assets (in hundredths) | 6.90% | ||
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 612 | $ 734 | |
Percentage of Plan Assets (in hundredths) | 42.80% | 37.10% | |
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 231 | $ 409 | |
Percentage of Plan Assets (in hundredths) | 16.10% | 20.60% | |
Cash Surrender Value Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 589 | $ 701 | |
Percentage of Plan Assets (in hundredths) | 41.10% | 35.40% | |
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 4 | ||
Percentage of Plan Assets (in hundredths) | 0.10% | ||
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 140 | |
Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 136 | ||
Level 1 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Cash Surrender Value Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | ||
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,432 | 1,844 | |
Level 2 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 2 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 612 | 734 | |
Level 2 [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 231 | 409 | |
Level 2 [Member] | Cash Surrender Value Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 589 | 701 | |
Level 2 [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 3 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 [Member] | Cash Surrender Value Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | 0 | |
Level 3 [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 |
Pensions and Other Postretire56
Pensions and Other Postretirement Benefits (Schedule of Estimated Future Benefit Payments) (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Pensions and Other Postretirement Benefits [Abstract] | |
2,016 | $ 248 |
2,017 | 250 |
2,018 | 254 |
2,019 | 252 |
2,020 | 251 |
2021 - 2025 | $ 1,226 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015USD ($)Segment | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Segment Information [Abstract] | |||
Number of operating segments | Segment | 2 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 64,459 | $ 71,171 | $ 63,444 |
Long-lived assets | 16,337 | 16,947 | |
United States [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 34,713 | 40,993 | 38,973 |
Long-lived assets | 15,322 | 15,543 | |
Canada [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 7,046 | 5,746 | 6,868 |
Total North America [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 41,759 | 46,739 | 45,841 |
Japan [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 11,929 | 11,161 | 10,079 |
Long-lived assets | 691 | 806 | |
Other Asia-Pacific [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 2,230 | 3,193 | 2,355 |
Long-lived assets | 23 | 55 | |
Total Asia Pacific [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 14,159 | 14,354 | 12,434 |
Europe [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 8,532 | 9,964 | 5,165 |
Long-lived assets | 301 | 543 | |
South America [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 9 | $ 114 | $ 4 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of Share Based Compensation Expense Allocation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 902 | $ 1,130 | $ 848 |
Tax benefit | 0 | 0 | 0 |
Share-based compensation expense, net of taxes | $ 902 | $ 1,130 | 848 |
Authorized amount of shares issued (in shares) | 1,100,000 | ||
Shares available for future grants (in shares) | 470,740 | ||
Annualized forfeiture rate (in hundredths) | 5.00% | 9.00% | |
Cost of Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 53 | $ 56 | 55 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 115 | 176 | 165 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 105 | 150 | 128 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 629 | $ 748 | $ 500 |
Share-Based Compensation (Sum59
Share-Based Compensation (Summary of Activity of Restricted Shares) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of activity of service condition restricted shares [Abstract] | ||
Options, outstanding (in shares) | 92,516 | 183,317 |
Reduction in the exercise price of outstanding stock options (in dollars per share) | $ 0.50 | |
Restricted Stock [Member] | ||
Summary of activity of service condition restricted shares [Abstract] | ||
Granted, Shares (in shares) | 316,000 | |
Stock grants in period (in shares) | 316,000 | |
Options, outstanding (in shares) | 299,546 | |
Performance period | 3 years | |
Total compensation cost of options granted but not yet vested | $ 1,625,000 | |
Weighted average period | 2 years | |
Service-Based Restricted Shares [Member] | ||
Summary of activity of service condition restricted shares [Abstract] | ||
Non-vested, Shares (in shares) | 183,634 | |
Granted, Shares (in shares) | 316,000 | |
Vested, Shares (in shares) | (88,846) | |
Forfeited, Shares (in shares) | (40,098) | |
Non-vested, Shares (in shares) | 370,690 | |
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) | 6.87 | |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 6.26 | |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 6.27 | |
Non-vested at, Weighted Average Grant Date Fair Value (in dollars per share) | $ 6.69 | |
Stock grants in period (in shares) | 316,000 | |
Performance-Based Restricted Shares [Member] | ||
Summary of activity of service condition restricted shares [Abstract] | ||
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 | |
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 at, Weighted Average Grant Date Fair Value (in dollars per share) | $ 5.84 | |
Stock grants in period (in shares) | 0 | |
Maximum [Member] | ||
Summary of activity of service condition restricted shares [Abstract] | ||
Additional expense | $ 1 | |
Employees [Member] | Restricted Stock [Member] | ||
Summary of activity of service condition restricted shares [Abstract] | ||
Vesting period | 4 years | |
Board Members [Member] | Restricted Stock [Member] | ||
Summary of activity of service condition restricted shares [Abstract] | ||
Vesting period | 3 years |
Share-Based Compensation (Sum60
Share-Based Compensation (Summary of Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Summary of option activity under the plans [Roll Forward] | |||
Outstanding as of July 1, 2014, Shares (in shares) | 183,317 | ||
Outstanding as of July 1, 2014, Weighted-Average Exercise Price (in dollars per share) | $ 10.92 | ||
Granted, Shares (in shares) | 0 | ||
Granted, Weighted-Average Exercise Price (in dollars per share) | $ 0 | ||
Exercised, Shares (in shares) | 0 | ||
Exercised, Weighted-Average Exercise Price (in dollars per share) | $ 0 | ||
Forfeited or expired, Shares (in shares) | (90,801) | ||
Forfeited or expired, Weighted-Average Exercise Price (in dollars per share) | $ 9.86 | ||
Outstanding as of June 30, 2015, Shares (in shares) | 92,516 | ||
Outstanding as of June 30, 2015, Weighted Average Exercise Price (in dollars per share) | $ 11.96 | ||
Outstanding as of June 30, 2015, Weighted-Average Remaining Contractual Term (Years) | 1 year 11 months 19 days | ||
Outstanding as of June 30,2015, Aggregate Intrinsic Value | $ 6 | $ 71 | $ 86 |
Vested or expected to vest at June 30, 2015, Shares (in shares) | 92,516 | ||
Vested or expected to vest at June 30,2015, Weighted Average Exercise Price (in dollars per share) | $ 11.96 | ||
Vested or expected to vest at June 30, 2015, Weighted-Average Remaining Contractual Term (Years) | 1 year 11 months 19 days | ||
Vested of expected to vest at June 30, 2015, Aggregate Intrinsic Value | $ 6 | ||
Exercisable at June 30, 2015, Shares (in shares) | 92,516 | ||
Exercisable at June 30, 2015, Weighted-Average Exercise Price (in dollars per share) | $ 11.96 | ||
Exercisable at June 30, 2015, Weighted-Average Remaining Contractual Term (Years) | 1 year 11 months 19 days | ||
Exercisable at June 30, 2015, Aggregate Intrinsic Value | $ 6 | $ 71 | $ 86 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Options Outstanding and Exercisable) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Summarizes information about stock options outstanding and exercisable [Abstract] | |||
Total intrinsic value of options outstanding | $ 6 | $ 71 | $ 86 |
Total intrinsic value of options exercisable | $ 6 | $ 71 | $ 86 |
$5.90 [Member] | |||
Summarizes information about stock options outstanding and exercisable [Abstract] | |||
Exercise Prices, Upper Limit (in dollars per share) | $ 5.90 | ||
Weighted Average Remaining Contractual Life, Outstanding Options | 3 years 1 month 2 days | ||
June 30, 2015, Outstanding Options (in shares) | 20,000 | ||
Weighted Average Exercise Price, Outstanding Options (in dollars per share) | $ 5.90 | ||
June 30, 2015, Options Exercisable (in shares) | 20,000 | ||
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 5.90 | ||
$11.10 - $13.00 [Member] | |||
Summarizes information about stock options outstanding and exercisable [Abstract] | |||
Exercise Prices, Lower Limit (in dollars per share) | 11.10 | ||
Exercise Prices, Upper Limit (in dollars per share) | $ 13 | ||
Weighted Average Remaining Contractual Life, Outstanding Options | 1 year 7 months 28 days | ||
June 30, 2015, Outstanding Options (in shares) | 26,910 | ||
Weighted Average Exercise Price, Outstanding Options (in dollars per share) | $ 12.65 | ||
June 30, 2015, Options Exercisable (in shares) | 26,910 | ||
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 12.65 | ||
$13.50 [Member] | |||
Summarizes information about stock options outstanding and exercisable [Abstract] | |||
Exercise Prices, Upper Limit (in dollars per share) | $ 13.50 | ||
Weighted Average Remaining Contractual Life, Outstanding Options | 1 year 11 months 12 days | ||
June 30, 2015, Outstanding Options (in shares) | 26,606 | ||
Weighted Average Exercise Price, Outstanding Options (in dollars per share) | $ 13.50 | ||
June 30, 2015, Options Exercisable (in shares) | 26,606 | ||
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 13.50 | ||
$14.70 - $15.30 [Member] | |||
Summarizes information about stock options outstanding and exercisable [Abstract] | |||
Exercise Prices, Lower Limit (in dollars per share) | 14.70 | ||
Exercise Prices, Upper Limit (in dollars per share) | $ 15.30 | ||
Weighted Average Remaining Contractual Life, Outstanding Options | 1 year 2 months 23 days | ||
June 30, 2015, Outstanding Options (in shares) | 15,000 | ||
Weighted Average Exercise Price, Outstanding Options (in dollars per share) | $ 14.90 | ||
June 30, 2015, Options Exercisable (in shares) | 15,000 | ||
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 14.90 | ||
$16.40 [Member] | |||
Summarizes information about stock options outstanding and exercisable [Abstract] | |||
Exercise Prices, Upper Limit (in dollars per share) | $ 16.40 | ||
Weighted Average Remaining Contractual Life, Outstanding Options | 1 year 4 months 2 days | ||
June 30, 2015, Outstanding Options (in shares) | 4,000 | ||
Weighted Average Exercise Price, Outstanding Options (in dollars per share) | $ 16.40 | ||
June 30, 2015, Options Exercisable (in shares) | 4,000 | ||
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 16.40 | ||
$5.90 - $16.40 [Member] | |||
Summarizes information about stock options outstanding and exercisable [Abstract] | |||
Exercise Prices, Lower Limit (in dollars per share) | 5.90 | ||
Exercise Prices, Upper Limit (in dollars per share) | $ 16.40 | ||
Weighted Average Remaining Contractual Life, Outstanding Options | 1 year 11 months 19 days | ||
June 30, 2015, Outstanding Options (in shares) | 92,516 | ||
Weighted Average Exercise Price, Outstanding Options (in dollars per share) | $ 11.96 | ||
June 30, 2015, Options Exercisable (in shares) | 92,516 | ||
Weighted Average Exercise Price, Options Exercisable (in dollars per share) | $ 11.96 |
Sales of Intangible Assets (Det
Sales of Intangible Assets (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015USD ($)BlockBuyer | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Proceeds from sale of intangible assets | $ 664 | $ 0 | $ 2,750 |
Book value of Intangible assets | 323 | 476 | |
Gain on sale of intangible assets | $ 664 | $ 0 | 2,381 |
IPv4 Addresses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Number of blocks sold | Block | 2 | ||
Number of buyers | Buyer | 2 | ||
Proceeds from sale of intangible assets | $ 737 | ||
Book value of Intangible assets | 0 | ||
Gain on sale of intangible assets | 664 | ||
Broker fees, commission and legal fees | $ 73 | ||
Intellectual Property [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Proceeds from sale of intangible assets | 2,750 | ||
Book value of Intangible assets | 0 | ||
Gain on sale of intangible assets | 2,381 | ||
Broker fees, commission and legal fees | $ 369 |
Concentration of Risk (Details)
Concentration of Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 13,813 | $ 17,110 | $ 15,996 | $ 17,540 | $ 17,858 | $ 18,278 | $ 17,837 | $ 17,198 | $ 64,459 | $ 71,171 | $ 63,444 |
Vendor A [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 20.00% | 18.00% | 16.00% | ||||||||
Vendor B [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 19.00% | 13.00% | |||||||||
Vendor C [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 15.00% | 23.00% | 24.00% | ||||||||
International Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 29,746 | $ 30,178 | $ 24,474 | ||||||||
Concentration risk (in hundredths) | 46.00% | 42.00% | 39.00% | ||||||||
Customer A [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 13.00% | 12.00% | |||||||||
Customer B [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 13.00% | 12.00% | |||||||||
Accounts Receivable [Member] | Customer C [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 37.00% | ||||||||||
Accounts Receivable [Member] | Customer D [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 15.00% | ||||||||||
Accounts Receivable [Member] | Customer E [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 12.00% | ||||||||||
Accounts Receivable [Member] | Customer F [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 11.00% | ||||||||||
Government Contracts Concentration Risk [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 12,001 | $ 10,072 | $ 9,573 | ||||||||
Concentration risk (in hundredths) | 19.00% | 14.00% | 15.00% | ||||||||
Maximum [Member] | Vendor B [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 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% | ||||||||||
Maximum [Member] | Accounts Receivable [Member] | Customer C [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (in hundredths) | 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% |
Quarterly Consolidated Financ64
Quarterly Consolidated Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Consolidated Financial Information [Abstract] | |||||||||||
Net sales | $ 13,813 | $ 17,110 | $ 15,996 | $ 17,540 | $ 17,858 | $ 18,278 | $ 17,837 | $ 17,198 | $ 64,459 | $ 71,171 | $ 63,444 |
Gross margin | 7,800 | 10,085 | 8,807 | 9,698 | 10,707 | 10,248 | 9,956 | 9,502 | 36,390 | 40,413 | 36,837 |
Operating income (loss) | (757) | 1,462 | (608) | 849 | 2,107 | 1,260 | 1,133 | 800 | 946 | 5,300 | 5,035 |
Net income (loss) | $ (945) | $ 784 | $ (571) | $ 387 | $ 15,600 | $ 1,082 | $ 1,089 | $ 734 | $ (345) | $ 18,505 | $ 4,248 |
Net income (loss) per share-basic (in dollars per share) | $ (0.10) | $ 0.09 | $ (0.06) | $ 0.04 | $ 1.75 | $ 0.12 | $ 0.12 | $ 0.08 | $ (0.04) | $ 2.08 | $ 0.49 |
Net income (loss) per share-diluted (in dollars per share) | $ (0.10) | $ 0.09 | $ (0.06) | $ 0.04 | $ 1.72 | $ 0.12 | $ 0.12 | $ 0.08 | $ (0.04) | $ 2.04 | $ 0.48 |
Dividends (Details)
Dividends (Details) | 12 Months Ended | ||
Jun. 30, 2015USD ($)Dividend$ / shares | Jun. 30, 2014USD ($)Dividend$ / shares | Jun. 30, 2013USD ($)Dividend$ / shares | |
Dividends [Abstract] | |||
Number of cash dividends declared and paid during period | Dividend | 4 | 4 | 5 |
Dividends Payable [Line Items] | |||
Dividend Per Share (in dollars per share) | $ / shares | $ 0.48 | $ 0.48 | $ 0.86 |
Dividends | $ 4,522 | ||
Dividends Payable | 232,000 | ||
Current dividends payable | 93,000 | $ 67,000 | |
Non-current dividends payable | 139,000 | ||
Dividends forfeited with restricted stock forfeitures | $ 73,000 | $ 63,000 | $ 26,000 |
First Quarter Dividend [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Sep. 15, 2014 | ||
Payment Date | Sep. 29, 2014 | ||
Type | Quarterly | ||
Dividend Per Share (in dollars per share) | $ / shares | $ 0.12 | ||
Dividends | $ 1,112 | ||
Second Quarter Dividend [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Dec. 16, 2014 | ||
Payment Date | Dec. 30, 2014 | ||
Type | Quarterly | ||
Dividend Per Share (in dollars per share) | $ / shares | $ 0.12 | ||
Dividends | $ 1,137 | ||
Third Quarter Dividend [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Mar. 16, 2015 | ||
Payment Date | Mar. 30, 2015 | ||
Type | Quarterly | ||
Dividend Per Share (in dollars per share) | $ / shares | $ 0.12 | ||
Dividends | $ 1,133 | ||
Fourth Quarter Dividend [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Jun. 15, 2015 | ||
Payment Date | Jun. 29, 2015 | ||
Type | Quarterly | ||
Dividend Per Share (in dollars per share) | $ / shares | $ 0.12 | ||
Dividends | $ 1,140 |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at June 30, 2014 | $ (91) |
Other comprehensive income before reclassifications | 168 |
Amounts reclassified from accumulated other comprehensive income (loss) | 32 |
Net current period other comprehensive income (loss) | 200 |
Balance at June 30, 2015 | 109 |
Pension and Postretirement Benefit Plans [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at June 30, 2014 | (1,246) |
Other comprehensive income before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 32 |
Net current period other comprehensive income (loss) | 32 |
Balance at June 30, 2015 | (1,214) |
Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at June 30, 2014 | 1,155 |
Other comprehensive income before reclassifications | 168 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Net current period other comprehensive income (loss) | 168 |
Balance at June 30, 2015 | $ 1,323 |
Commitments and Contingencies67
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Loss Contingencies [Line Items] | |||
Rent expense | $ 2,157 | $ 2,340 | $ 2,485 |
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 | ||
Contingent liability under employment contract agreements | $ 2,217 |
Commitments and Contingencies,
Commitments and Contingencies, Schedule of Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments and Contingencies [Abstract] | |
2,016 | $ 1,436 |
2,017 | 1,307 |
2,018 | 1,012 |
2,019 | 378 |
2,020 | 0 |
2021 and thereafter | 0 |
Total future minimum lease payments | $ 4,133 |
Commitments and Contingencies69
Commitments and Contingencies, Litigation (Details) | 12 Months Ended |
Jun. 30, 2015 | |
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. Patents Nos. 6,128,649, 6,901,048, 7,154,879 and 6,845,389 |
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 |
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. Patents No. 7,361,336 |
Sprint Communications Company LP [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 |
VALUATION AND QUALIFYING ACCO70
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning Of Year | $ 78 | $ 70 | $ 80 | |
Charged To Costs And Expenses | 0 | 20 | 14 | |
Deductions | [1] | (60) | (12) | (24) |
Balance at End Of Year | 18 | 78 | 70 | |
Warranty Accrual [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning Of Year | 78 | 119 | 181 | |
Charged To Costs And Expenses | 254 | 124 | 183 | |
Deductions | [1] | (168) | (165) | (245) |
Balance at End Of Year | $ 164 | $ 78 | $ 119 | |
[1] | Charges and adjustments to the reserve accounts for write-offs and credits issued during the year |