Overland Storage (OVRL) 10-Q 13 Feb 14 2014 Q2 Quarterly report Financial data

Document_Entity_Information

Document Entity Information	6 Months Ended
	Dec. 31, 2013	Feb. 04, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'OVERLAND STORAGE INC	'
Entity Central Index Key	'0000889930	'
Current Fiscal Year End Date	'--06-30	'
Entity Filer Category	'Smaller Reporting Company	'
Document Type	'10-Q	'
Document Period End Date	31-Dec-13	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	86,932,020

Consolidated_Condensed_Stateme

Consolidated Condensed Statements of Operations (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Net revenue:	'	'	'	'
Product revenue	$6,594	$7,782	$12,727	$14,421
Service revenue	4,042	4,817	8,515	9,889
Revenue, net	10,636	12,599	21,242	24,310
Cost of product revenue	5,350	6,333	10,727	12,385
Cost of service revenue	1,620	1,669	3,280	3,385
Gross profit	3,666	4,597	7,235	8,540
Operating expenses:	'	'	'	'
Sales and marketing	3,295	4,353	7,040	8,478
Research and development	1,352	1,591	2,661	3,188
General and administrative	3,518	2,765	6,129	5,649
Operating expenses	8,165	8,709	15,830	17,315
Loss from operations	-4,499	-4,112	-8,595	-8,775
Interest expense	-269	-46	-583	-88
Other income (expense), net	-62	-47	-223	-156
Loss before income taxes	-4,830	-4,205	-9,401	-9,019
Provision for (benefit from) income taxes	-514	68	-495	117
Net loss	($4,316)	($4,273)	($8,906)	($9,136)
Net loss per share:	'	'	'	'
Basic and diluted	($0.12)	($0.15)	($0.27)	($0.33)
Shares used in computing net loss per share:	'	'	'	'
Basic and diluted	36,884	28,339	33,414	28,108

Consolidated_Condensed_Stateme1

Consolidated Condensed Statements of Comprehensive Loss (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]	'	'	'	'
Net loss	($4,316)	($4,273)	($8,906)	($9,136)
Other comprehensive income:	'	'	'	'
Change in unrealized gains, net of tax benefit of $1,546, $0, $1,546, $0, respectively	1,306	0	2,690	0
Foreign currency translation adjustments	25	25	99	119
Total other comprehensive income	1,331	25	2,789	119
Comprehensive loss	($2,985)	($4,248)	($6,117)	($9,017)

Consolidated_Condensed_Stateme2

Consolidated Condensed Statements of Comprehensive Loss (Parentheticals) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Consolidated Condensed Statements of Comprehensive Loss Parenthetical Data [Abstract]	'	'	'	'
Other comprehensive income, tax	$1,546	$0	$1,546	$0

Consolidated_Condensed_Balance

Consolidated Condensed Balance Sheets (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Assets	'	'
Cash	$4,894	$8,831
Short-term investment — related party	4,717	0
Accounts receivable, net of allowance for doubtful accounts of $155 and $94, as of December 31, 2013 and June 30, 2013, respectively	6,335	6,640
Inventories	10,171	10,354
Other current assets	1,695	1,923
Total current assets	27,812	27,748
Property and equipment, net	2,205	2,014
Intangible assets, net	823	652
Other assets	782	989
Total assets	31,622	31,403
Liabilities and Shareholders’ Equity (Deficit)	'	'
Accounts payable	5,467	5,221
Accrued liabilities	5,392	5,003
Accrued payroll and employee compensation	1,532	2,140
Income taxes payable	202	178
Accrued warranty	599	790
Deferred revenue	7,131	7,732
Total current liabilities	20,323	21,064
Deferred revenue, long-term	2,561	2,975
Long-term debt	11,028	16,750
Other long-term liabilities	1,019	910
Total liabilities	34,931	41,699
Commitments and contingencies (Note 6)	'	'
Shareholders' equity (deficit):	'	'
Preferred stock, no par value, 1,000 shares authorized; no shares issued and outstanding as of December 31, 2013 and June 30, 2013	0	0
Common stock, no par value, 90,200 shares authorized; 39,771 and 30,403 shares issued and outstanding as of December 31, 2013 and June 30, 2013, respectively	136,169	123,065
Accumulated other comprehensive income (loss)	1,798	-991
Accumulated deficit	-141,276	-132,370
Total shareholders’ equity (deficit)	-3,309	-10,296
Total liabilities and shareholders’ equity (deficit)	$31,622	$31,403

Consolidated_Condensed_Balance1

Consolidated Condensed Balance Sheets Parenthetical Data (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, except Share data, unless otherwise specified
Statement of Financial Position [Abstract]	'	'
Allowance for Doubtful Accounts Receivable, Current	$155	$94
Preferred Stock, No Par Value	$0	$0
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, No Par Value	$0	$0
Common Stock, Shares Authorized	90,200,000	90,200,000
Common Stock, Shares, Issued	39,771,000	30,403,000
Common Stock, Shares, Outstanding	39,771,000	30,403,000

Consolidated_Condensed_Stateme3

Consolidated Condensed Statements of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Operating activities:	'	'
Net loss	($8,906)	($9,136)
Adjustments to reconcile net loss to cash used in operating activities:	'	'
Depreciation and amortization	654	593
Deferred tax benefit	-560	0
Share-based compensation	1,746	2,504
Changes in operating assets and liabilities:	'	'
Accounts receivable	305	1,523
Inventories	191	283
Accounts payable and accrued liabilities	-375	-1,680
Accrued payroll and employee compensation	-430	-255
Deferred revenue	-1,015	-1,110
Other assets and liabilities, net	343	871
Net cash used in operating activities	-8,047	-6,407
Investing activities:	'	'
Purchase of fixed assets	-457	-672
Purchase of intangible assets	-250	0
Net cash used in investing activities	-707	-672
Financing activities:	'	'
Payment for restricted stock tax liability on net settlement	-239	-429
Proceeds from exercise of stock options and ESPP purchases	49	145
Proceeds from convertible notes	5,000	0
Net cash provided by (used in) financing activities	4,810	-284
Effect of exchange rate changes on cash	7	4
Net decrease in cash	-3,937	-7,359
Cash, beginning of period	8,831	10,522
Cash, end of period	4,894	3,163
Supplemental disclosures of non-cash activities:	'	'
Conversion of convertible notes	10,700	0
Short-term investment - related party	481	0
Equity award fair value adjustment to liability	204	829
Common stock issued for purchase of intangible assets	250	0
Accounts payable for purchases of property and equipment	$166	$0

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	BASIS OF PRESENTATION
	Financial Statement Preparation
	The accompanying interim unaudited consolidated condensed financial statements of Overland Storage, Inc. and its subsidiaries (the “Company”) should be read in conjunction with the audited consolidated financial statements included in the Company's annual report on Form 10-K for the fiscal year ended June 30, 2013. The accompanying consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These condensed statements do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, which are normal and recurring, necessary for a fair statement of the Company's consolidated condensed results of operations, comprehensive loss, financial position, and cash flows as of December 31, 2013, and for all periods presented. The results reported in these consolidated condensed financial statements for the three and six months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the full fiscal year.
	The Company operates its business in one operating segment.
	Effective the second quarter of fiscal 2014, the Company changed how it reports its operations to use a 52-week fiscal year end with each year ending on June 30, compared to prior reporting using a 52-53 week fiscal year with each year ending on the Sunday closest to June 30. The Company's last fiscal year ended June 30, 2013 and the Company's second quarter of fiscal 2014 ended December 31, 2013. The second quarter of fiscal 2013 ended December 30, 2012.
	The Company has incurred losses since fiscal 2006 and negative cash flows from operating activities since fiscal 2007. As of December 31, 2013, the Company had an accumulated deficit of $141.3 million. During the first half of fiscal 2014, the Company incurred a net loss of $8.9 million. The Company expects to incur a net loss as it continues to change its business model and improve operational efficiencies.
	The Company has projected its cash on hand, short-term investment, and available borrowings under its credit facility will be sufficient to allow the Company to continue operations for the next 12 months. Significant changes from the Company’s current forecast, including but not limited to: (i) shortfalls from projected sales levels, (ii) unexpected increases in product costs, (iii) increases in operating costs, and/or (iv) changes in the historical timing of collecting accounts receivable could have a material adverse impact on the Company’s liquidity. This could force the Company to make further reductions in spending, extend payment terms with suppliers, liquidate assets where possible, and/or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations, and future prospects. The Company may seek debt, equity, or equity-based financing (such as convertible debt) when market conditions permit.
	The Company's recurring losses and negative cash flows from operations raise substantial doubt about its ability to continue as a going concern. The accompanying consolidated condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
	Principles of Consolidation
	The accompanying consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries, Overland Storage (Europe) Ltd., Overland Storage SARL, and Overland Storage GmbH. All significant intercompany accounts and transactions have been eliminated in consolidation.
	Reclassifications
	Certain prior year amounts have been reclassified to conform to the fiscal 2014 presentation.
	Short-term Investment
	The Company's short-term investment is made up of a marketable security. This investment is classified as available-for-sale and is reported at fair value based on quoted prices using the specific identification method. Unrealized gains and losses are recorded in other comprehensive loss and included as a separate component of shareholders' equity (deficit). Realized gains and losses and declines in value judged to be other than temporary on marketable securities, if any, are included in other income in the consolidated condensed statements of operations.
	Fair Value of Financial Instruments
	The Company's financial instruments including cash, accounts receivable, accounts payable, and accrued liabilities are carried at cost, which management believes approximates fair value because of the short-term maturity of these instruments. The Company's short-term investment is measured at fair value using Level 1 inputs as the stock is traded on the TSX Venture Exchange. The carrying amount of the Company's borrowings under its credit facility approximates its fair value as the interest rate of the credit facility is substantially comparable to rates offered for similar debt instruments. The fair value of the Company's convertible notes is estimated at $6.5 million using an estimated interest rate of 12%, and is classified within Level 3 of the fair value hierarchy. At December 31, 2013, the carrying value of the convertible notes was $7.5 million.
	The framework for measuring fair value provides a hierarchy that prioritizes the inputs to valuation techniques used in measuring fair value as follows:
	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 directly observable for the asset or liability or indirectly observable through corroboration with observable market data, and
	Level 3 -	Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date.

SHORTTERM_INVESTMENT_Notes

SHORT-TERM INVESTMENT (Notes)	6 Months Ended
	Dec. 31, 2013
Short-term investment [Abstract]	'
Short-term Investment [Text Block]	'
	SHORT-TERM INVESTMENT
	Related Party
	In July 2013, the Company entered into a supply agreement with Sphere 3D Corporation (“Sphere 3D”). As partial payment under the supply agreement, Sphere 3D issued 769,231 common shares with a value as of the date of issuance equal to approximately $0.5 million to the Company. Sphere 3D's shares are traded on the TSX Venture Exchange. The short-term investment is classified as available-for-sale marketable securities. See note 10 for additional related party disclosure.
	The following summarizes short-term investment (in thousands):
		December 31, 2013
		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	Short-term investment — related party	$	481	$	4,236	$	—	$	4,717

COMPOSITION_OF_CERTAIN_FINANCI

COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS	6 Months Ended
	Dec. 31, 2013
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract]	'
Additional Financial Information Disclosure [Text Block]	'
	COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
	The following table summarizes inventories (in thousands):
		December 31,		June 30,
		2013		2013
	Raw materials	$	3,522	$	3,496
	Work in process	848		857
	Finished goods	5,801		6,001
		$	10,171	$	10,354
	The following table summarizes other current assets (in thousands):
		December 31,		June 30,
		2013		2013
	Deferred cost - service contracts	$	988	$	1,192
	Prepaid insurance and services	379		355
	VAT receivable	87		155
	Short-term deposits	83		119
	Other	158		102
		$	1,695	$	1,923
	The following table summarizes other assets (in thousands):
		December 31,		June 30,
		2013		2013
	Deferred cost – service contracts	$	456	$	702
	Other	326		287
		$	782	$	989
	The following table summarizes accrued liabilities (in thousands):
		December 31,		June 30,
		2013		2013
	Accrued expenses	$	3,455	$	3,955
	Accrued third-party service contracts	951		1,048
	Deferred income tax	986		—
		$	5,392	$	5,003
	The following table summarizes other long-term liabilities (in thousands):
		December 31,		June 30,
		2013		2013
	Deferred rent	$	494	$	782
	Related party supply agreement	432		—
	Accrued third-party service contracts	93		125
	Other	—		3
		$	1,019	$	910

NET_LOSS_PER_SHARE

NET LOSS PER SHARE	6 Months Ended
	Dec. 31, 2013
NET LOSS PER SHARE [Abstract]	'
Earnings Per Share [Text Block]	'
	NET LOSS PER SHARE
	Basic net loss per share is computed by dividing net loss applicable to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed based on the weighted-average number of shares of common stock outstanding during the period increased by the weighted-average number of dilutive common stock equivalents outstanding during the period, using the treasury stock method. Dilutive common stock equivalents are comprised of options granted under the Company's stock option plans, employee stock purchase plan (“ESPP”) share purchase rights, convertible notes, and common stock purchase warrants. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company's net loss position.
	Anti-dilutive common stock equivalents excluded from the computation of diluted net loss per share were as follows (in thousands):
		Three Months Ended		Six Months Ended
		December 31,		December 31,
		2013	2012	2013	2012
	Restricted stock not yet vested and released	3,375	3,524	3,375	3,524
	Options outstanding and ESPP share purchase rights	1,402	1,706	1,511	1,441
	Common stock purchase warrants	14,168	12,637	14,168	12,637
	Convertible notes	6,944	—	6,944	—
	Convertible notes interest	2,452	—	2,452	—

INCOME_TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	INCOME TAXES
	The Company recognizes the impact of an uncertain income tax position on its income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. The Company had no material accrual for interest and penalties in its consolidated condensed balance sheets at December 31, 2013 and June 30, 2013, and recognized no interest or penalties in the consolidated condensed statements of operations for the three and six months ended December 31, 2013 and 2012.
	The Company is subject to federal and state taxation in the United States and also in certain foreign tax jurisdictions. The Company's tax returns for fiscal 2010 and thereafter are subject to examination by the U.S. federal tax authorities, and the Company's tax returns for fiscal 2009 and thereafter are subject to examination by state tax authorities.
	The Company's ability to use its net operating loss and research and development credit carryforwards may be substantially limited due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended, as well as similar state provisions. The Company has not completed a study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since the Company became a “loss corporation” under the definition of Section 382. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations or financial position of the Company.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies Disclosure [Text Block]	'
	COMMITMENTS AND CONTINGENCIES
	Lease
	On October 15, 2013, the Company amended the lease for its corporate headquarters in San Diego, California. Under the terms of the amendment, the Company extended the expiration date of the lease from February 28, 2014 to March 31, 2019, reduced the rentable square footage under the lease, and reduced the Company's monthly base rent and share of facility expenses.
	Warranty and Extended Warranty
	The Company records a provision for estimated future warranty costs for both return-to-factory and on-site warranties. If future actual costs to repair were to differ significantly from estimates, the impact of these unforeseen costs or cost reductions would be recorded in subsequent periods.
	Separately priced extended on-site warranties and service contracts are offered for sale to customers on all product lines. The Company contracts with third-party service providers to provide service relating to on-site warranties and service contracts. Extended warranty and service contract revenue and amounts paid in advance to outside service organizations are deferred and recognized as service revenue and cost of service, respectively, over the period of the service agreement. The Company had $1.4 million and $1.9 million in deferred costs related to deferred service revenue at December 31, 2013 and June 30, 2013, respectively.
	In addition, the Company had $0.1 million and $0.2 million in deferred software revenue at December 31, 2013 and June 30, 2013, respectively, which is not included in the table below.
	Changes in the liability for product warranty and deferred revenue associated with extended warranties and service contracts were as follows (in thousands):
		Product			Deferred
		Warranty			Revenue
	Liability at June 30, 2013	$	790		$	10,354
	Settlements made during the period	(142		)	(5,943		)
	Change in liability for warranties issued during the period	138			4,921
	Change in liability for preexisting warranties	(187		)	—
	Liability at December 31, 2013	$	599		$	9,332
	Litigation
	From time to time, the Company may be involved in various lawsuits, legal proceedings, or claims that arise in the ordinary course of business. Management does not believe any legal proceedings or claims pending at December 31, 2013 will have, individually or in the aggregate, a material adverse effect on its business, liquidity, financial position, or results of operations. Litigation, however, is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company's business.
	In August and October 2010, the Company filed patent infringement lawsuits in the United States District Court for the Southern District of California and with the United States International Trade Commission (“ITC”), respectively, against various parties. Both lawsuits claim infringement of two of the Company's U.S. Patents; Nos. 6,328,766 and 6,353,581.
	In November 2011, the Company entered into a multi-year settlement and cross-licensing agreement with IBM pursuant to which the Company released all claims it had against IBM and Dell in connection with the patent infringement lawsuits the Company had filed in the United States District Court for the Southern District of California and at the ITC. In opinions issued by the ITC in November 2012 and May 2013, the ITC concluded or otherwise did not disturb findings that BDT’s customers directly infringe the six asserted claims of U.S. Patent No. 6,328,766, and that all but one of the asserted claims of U.S. Patent No. 6,353,581 are valid. The ITC also concluded that the six asserted claims of U.S. Patent No. 6,328,766 were invalid as anticipated, and that the accused BDT products did not infringe the asserted claims of U.S. Patent No. 6,353,581. In May 2013, the ITC terminated the investigation.
	In June 2012, the Company filed five additional patent infringement lawsuits in the United States District Court for the Southern District of California against seven companies. In these lawsuits, the Company has asserted claims of infringement based on one or both of U.S. Patent Nos. 6,328,766 and 6,353,581 against the following defendants: Quantum Corporation (“Quantum”), based in San Jose, California; Spectra Logic Corporation (“Spectra Logic”), based in Boulder, Colorado; PivotStor, LLC, based in Irvine, California; Qualstar Corporation, based in Simi Valley, California; Tandberg Data GmbH, based in Germany; Tandberg Data Corp., based in Westminster, Colorado; and Venture Corporation Limited, based in Singapore. In October 2012, the Company voluntarily dismissed its claims against Venture Corporation. In February 2013, the Company filed a joint motion to dismiss its case against Tandberg Data GmbH and Tandberg Data Corp. without prejudice.
	In August 2012, Quantum filed counterclaims against the Company in the United States District Court for the Southern District of California action alleging trademark infringement and unfair competition claims, and infringement of U.S. Patent Nos. 5,491,812, 6,542,787, 6,498,771 and 5,925,119 by its products. In April 2013, Quantum filed a complaint against the Company in the United States District Court for the Southern District of California alleging infringement of U.S. Patent No. 7,263,596 by the Company's products. Quantum is seeking monetary damages from the Company and injunctive relief.
	In May 2013, Safe Storage LLC (“Safe Storage”), a Delaware limited liability company, filed a complaint against the Company in the United States District Court for the District of Delaware alleging infringement of U.S. Patent No. 6,978,346 by the Company's products. Safe Storage is seeking monetary damages from the Company and injunctive relief.
	In June 2013, Spectra Logic filed a Petition for Inter Partes Review of the claims of U.S. Patent No. 6,328,766 with the United States Patent and Trademark Office. The petition has been assigned Case No. IPR2013-00357. In December 2013, the United States Patent and Trademark Office initiated an inter partes review proceeding involving U.S. Patent No. 6,328,766. The inter partes review proceeding is ongoing.
	In February 2014, the District Court for the Southern District of California conditionally stayed our litigation against BDT, Spectra Logic and PivotStor pending the results of the inter partes review filed by Spectra Logic.  The stay as to BDT and PivotStor is conditional on both of them agreeing to be bound by the results of the inter partes review at the United States Patent and Trademark Office.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets Disclosure [Text Block]	'
	INTANGIBLE ASSETS
	Intangible assets, net, consist of customer contracts and trade names acquired in the June 2008 acquisition of SnapServer, which have been assigned an estimated useful life of six years. The intangible assets are being amortized on a straight-line basis over their estimated useful lives.
	In the first quarter of fiscal 2014, the Company entered into a technology license agreement, with a related party, and recorded an intangible asset of $0.5 million. Amortization will commence upon shipment of the product, which is expected during the second half of fiscal 2014.
	The following table summarizes intangible assets (in thousands):
		December 31,			June 30,
		2013			2013
	Technology	$	2,427		$	1,928
	Customer contracts and trade names	3,853			3,853
		6,280			5,781
	Less: Accumulated amortization	(5,457		)	(5,129		)
		$	823		$	652
	Amortization expense of intangible assets was $0.2 million during the second quarter of both fiscal 2014 and 2013. Amortization expense of intangible of intangible assets was $0.3 million during the first half of both fiscal 2014 and 2013. Estimated amortization expense for intangible assets is approximately $0.3 million for the remainder of fiscal 2014.

EQUITY_DEFICIT

EQUITY (DEFICIT)	6 Months Ended
	Dec. 31, 2013
Equity [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	EQUITY (DEFICIT)
	Restricted Stock
	During the first half of fiscal 2014, the Company issued 472,804 shares of common stock in conjunction with vested restricted stock units. The restricted stock unit holders surrendered 216,367 restricted stock units to pay for minimum withholding taxes totaling $0.2 million. During the first half of fiscal 2013, the Company issued 562,124 shares of common stock in conjunction with vested restricted stock units, and the restricted stock unit holders surrendered 242,514 restricted stock units to pay for minimum withholding taxes totaling $0.4 million. Options and restricted stock units outstanding were approximately 5.0 million shares and 4.4 million shares as of December 31, 2013 and June 30, 2013, respectively.
	Outside of 2009 Equity Incentive Plan
	During the first half of fiscal 2014, the Company granted to an officer a restricted stock award to acquire 125,000 shares of common stock, and an option award to purchase 75,000 shares of common stock. These awards vest over three years. During the first half of fiscal 2013, the Company granted to an officer a restricted stock award to acquire 200,000 shares of common stock. This restricted stock award vests over three years.
	2009 Equity Incentive Plan
	During the first half of fiscal 2014, the Company granted to an officer a restricted stock award to acquire 1.1 million shares of common stock. This award vests over three years.
	Employee Stock Purchase Plan
	During the first half of fiscal 2014 and 2013, the Company issued 54,357 and 64,890, respectively, shares of common stock purchased through the Company's 2006 employee stock purchase plan.
	Common Stock Exercises
	During the first half of fiscal 2014 and 2013, the Company issued no and 27,751, shares of common stock, respectively, upon exercise of outstanding stock options.
	Issuance of Common Stock for Convertible Notes
	During the first half of fiscal 2014, the Company issued an aggregate of 8,247,896 shares of common stock at $1.30 per share in satisfaction of $10.7 million of the Company's outstanding convertible notes.
	During the first half of fiscal 2014, the Company issued an aggregate of 379,310 shares of common stock at $0.98 per share to the holders of its outstanding convertible notes as payment of interest on such notes, which was payable upon conversion of the convertible notes in November 2013.

DEBT

DEBT	6 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	DEBT
	Credit Facility
	In August 2011, the Company entered into a loan and security agreement, or credit facility, which allows for revolving cash borrowings up to $8.0 million. The proceeds of the credit facility may be used to fund the Company's working capital and to fund its general business requirements. The obligations under the credit facility are secured by substantially all assets of the Company other than 65% of the stock of our foreign subsidiaries, which are pledged under the Company's convertible notes. Borrowings under the credit facility bear interest at the prime rate (as defined in the credit facility) plus a margin of either 1.00% or 1.25%, depending on the Company's liquidity coverage ratio. The Company is also obligated to pay other customary facility fees and arrangement fees for a credit facility of this size and type. In August 2013, the credit facility was amended to extend the scheduled maturity date to August 7, 2015 and add a separate line of credit in the amount of $750,000 for letters of credit, foreign exchange contracts, and cash management. At December 31, 2013, the interest rate on the credit facility was 4.25%.
	The credit facility requires the Company to comply with a liquidity coverage ratio and contains customary covenants, including covenants that limit or restrict the Company's and its subsidiaries' ability to incur liens and indebtedness, make certain types of payments, merge or consolidate, and make dispositions of assets. The credit facility specifies customary events of default (some of which are subject to applicable grace or cure periods) including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults, and material judgment defaults. Upon the occurrence of an event of default under the credit facility, the lender may cease making loans, terminate the credit facility, and declare all amounts outstanding to be immediately due and deduct such amounts from the Company’s lockbox account on deposit with the bank. At December 31, 2013, the Company was in compliance with all covenants of the credit facility.
	At December 31, 2013, the Company had $3.5 million outstanding on the credit facility, which was recorded as long-term debt, and remaining external borrowing capacity, subject to certain limitations of accounts receivable, of $4.5 million. No payments are due within the next 12 months. While the credit facility is recorded as long-term debt, it is a revolving line of credit and borrowings and payments are presented on a net basis in the consolidated statement of cash flows.
	Convertible Notes
	In February 2013, the Company entered into a note purchase agreement (the “NPA”) with the purchasers party thereto (the “Purchasers”), including certain affiliates of Cyrus Capital Partners, L.P. (the “Cyrus Purchasers”), which was amended in March 2013. The Company sold to the Purchasers convertible promissory notes (the “Initial Notes”) of the Company in an aggregate original principal amount of $13.25 million. On November 1, 2013, the Company amended and restated the NPA and agreed to sell up to an additional $7.0 million in convertible promissory notes (the “Additional Notes” and, together with the Initial Notes, the “Notes”) to the Cyrus Purchasers. The Company issued the Additional Notes in amounts of $3.0 million, $2.0 million, and $2.0 million on November 12, 2013, December 24, 2013, and January 17, 2014, respectively.
	The Initial Notes are scheduled to mature in February 2017. The Additional Notes are scheduled to mature four years from date of issuance. Debt issuance costs of $0.3 million have been included in other assets and will be amortized over the term of the Notes. The Notes bear interest at a rate of 8% per annum, payable semi-annually.
	On November 8, 2013, the Company issued 8,247,896 shares of common stock to the Purchasers in satisfaction of approximately $10.7 million of the Initial Notes. On November 8, 2013, the Cyrus Purchasers, the beneficial owners of Tandberg, became the sole holders of the outstanding Notes. See discussion of the Tandberg acquisition in Note 12 - Subsequent Events.
	At December 31, 2013, the Notes' principal balance was $7.5 million and has been recorded as long-term debt. No payments of principal are due within the next 12 months.
	Through July 2015, the Company may, subject to certain limitations, pay interest in cash or in shares of common stock at its option. Subsequent to July 2015, if at anytime the Cyrus Purchasers hold 20% or more of the then outstanding common stock, the Cyrus Purchasers (and not the Company) will have the option to determine whether the applicable interest payment payable to the Cyrus Purchasers during such time is payable in cash or shares of common stock. The number of shares of common stock that may be issued as payment of interest on the Notes will be determined by dividing the amount of interest due to the holders of the Notes by the volume weighted average of the closing prices of one share of common stock as reported on the NASDAQ Capital Market for the 20 consecutive trading days up to and including the trading day on the third trading day prior to the valuation date, using the interest payment due date as the valuation date; provided the Company may not pay interest in shares of common stock at a price per share lower than, in the case of the Initial Notes, $0.98, and in the case of the Additional Notes, $0.90 (in each case as adjusted from time to time for items such as stock splits, combinations, reclassifications, or recapitalizations). In the event of a share price lower than, in the case of the Initial Notes, $0.98, and in the case of the Additional Notes, $0.90, the Company has the option to pay interest in a combination of shares of common stock and cash so long as the number of shares of common stock that the Company issues does not exceed the quotient obtained by dividing the interest payable at such time by, in the case of the Initial Notes, $0.98, and in the case of the Additional Notes, $0.90, and the difference between the amount of the interest paid in shares and the average closing price of the shares of common stock, determined as described above, will be payable in cash.
	The Cyrus Purchasers may elect to convert all or a portion of the outstanding principal amount of such Purchaser's Note into shares of common stock (subject to certain limitations) in an amount equal to the principal amount of the Notes being converted divided by, in the case of the Initial Notes, $1.30, and in the case of the Additional Notes, $1.00, in each case subject to adjustment as set forth in the NPA, such as stock splits.
	The Company may, at its option, convert the outstanding Initial Notes or Additional Notes, as applicable, into shares of common stock (subject to certain limitations) on the first trading day immediately following the date that the closing bid price of the common stock exceeds, in the case of the Initial Notes, $2.60, and in the case of the Additional Notes, $1.50, for 10 consecutive trading days.
	If certain conditions are met with respect to ongoing litigation, the Company has an option to repay a portion of the Initial Notes prior to the maturity date. In addition, the Company has the option to prepay the Additional Notes in full or in part within 90 days following the consummation of the Tandberg acquisition (as described in Note 12 below).
	The obligations under the Notes are secured by a pledge of 65% of the Company's stock in each of its foreign subsidiaries.
	The NPA contains customary covenants, including covenants that limit or restrict the Company's ability to incur liens, incur indebtedness, or make certain restricted payments. Upon the occurrence of an event of default under the NPA, the Cyrus Purchasers may declare all amounts outstanding to be immediately due and payable. The NPA specifies a number of events of default (some of which are subject to applicable grace or cure periods) including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults, and material judgment defaults. In the event of default, the interest rate shall automatically increase to 11%. The Company has also granted certain registration rights to the Cyrus Purchasers. At December 31, 2013, the Company was in compliance with all covenants contained in the NPA and the Notes.

RELATED_PARTY_Notes

RELATED PARTY (Notes)	6 Months Ended
	Dec. 31, 2013
Related Party Transactions [Abstract]	'
Related Party Transactions Disclosure [Text Block]	'
	RELATED PARTY
	In July 2013, the Company entered into a supply agreement, and a technology license agreement, with Sphere 3D. As consideration for the transactions contemplated by the technology license agreement, the Company paid Sphere 3D $250,000 in cash and issued Sphere 3D 213,220 shares of its common stock, with a value at the time of issuance of approximately $250,000. As partial payment under the supply agreement, Sphere 3D issued 769,231 common shares with a value as of the date of issuance equal to approximately $0.5 million to the Company.
	In connection with the July 2013 Sphere 3D transaction, Eric Kelly, the Company's President and Chief Executive Officer, was appointed chairman of the board of directors of Sphere 3D. Mr. Kelly was also awarded an option to purchase up to 850,000 shares of common stock of Sphere 3D with an exercise price of approximately $0.63, which is believed to represent approximately 5% of Sphere 3D's outstanding shares at the time the award was granted.
	At December 31, 2013, the Company had $175,000 and $432,000 in accounts receivable and other long-term liabilities, respectively, related to the Sphere 3D supply agreement. The Company recognized $237,000 in revenue related to the supply agreement during the three and six months ended December 31, 2013. No related party expense was recognized during the first half of fiscal 2014.

RECENT_ACCOUNTING_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Dec. 31, 2013
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	'
	RECENT ACCOUNTING PRONOUNCEMENTS
	From time to time, new accounting pronouncements are issued by the FASB that are adopted by the Company as of the specified effective date. If not discussed, the Company believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's consolidated financial statements upon adoption.
	In July 2013, the FASB, issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 provides that an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance affects presentation only and, therefore, it is not expected to have a material impact on the Company's consolidated financial results.

SUBSEQUENT_EVENTS_Notes

SUBSEQUENT EVENTS (Notes)	6 Months Ended
	Dec. 31, 2013
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	SUBSEQUENT EVENTS
	Authorized Number of Shares of Common Stock
	On January 17, 2014, the Company increased its authorized shares of common stock from 90,200,000 shares to 125,000,000 shares.
	2009 Equity Incentive Plan
	On January 17, 2014, the Company increased the number of shares of its common stock available for award grant purposes under the 2009 Equity Incentive Plan by 7,000,000 shares.
	Acquisition
	On January 21, 2014, the Company acquired Tandberg Data Holdings S.à r.l. (“Tandberg”), a privately held global leader of data storage and data protection solutions, for a purchase price of $49.0 million, which was paid in shares of the Company's common stock. The shareholders of Tandberg received 47,152,630 shares of the Company's common stock. Tandberg became a wholly-owned subsidiary of the Company, and the acquisition will be treated as a business combination for accounting purposes. The Company has included Tandberg's historical financial statements and the related proforma statements in the definitive proxy filed on December 19, 2013. The determination of the acquisition-date fair value of the total assets acquired and liabilities assumed is pending completion of a valuation.

BASIS_OF_PRESENTATION_Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Consolidation, Policy [Policy Text Block]	'
	Principles of Consolidation
	The accompanying consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries, Overland Storage (Europe) Ltd., Overland Storage SARL, and Overland Storage GmbH. All significant intercompany accounts and transactions have been eliminated in consolidation.
Reclassification, Policy [Policy Text Block]	'
	Reclassifications
	Certain prior year amounts have been reclassified to conform to the fiscal 2014 presentation.
Short-term Investment — Related Party, Policy [Policy Text Block]	'
	Short-term Investment
	The Company's short-term investment is made up of a marketable security. This investment is classified as available-for-sale and is reported at fair value based on quoted prices using the specific identification method. Unrealized gains and losses are recorded in other comprehensive loss and included as a separate component of shareholders' equity (deficit). Realized gains and losses and declines in value judged to be other than temporary on marketable securities, if any, are included in other income in the consolidated condensed statements of operations.
Fair Value of Financial Instruments, Policy [Policy Text Block]	'
	Fair Value of Financial Instruments
	The Company's financial instruments including cash, accounts receivable, accounts payable, and accrued liabilities are carried at cost, which management believes approximates fair value because of the short-term maturity of these instruments. The Company's short-term investment is measured at fair value using Level 1 inputs as the stock is traded on the TSX Venture Exchange. The carrying amount of the Company's borrowings under its credit facility approximates its fair value as the interest rate of the credit facility is substantially comparable to rates offered for similar debt instruments. The fair value of the Company's convertible notes is estimated at $6.5 million using an estimated interest rate of 12%, and is classified within Level 3 of the fair value hierarchy. At December 31, 2013, the carrying value of the convertible notes was $7.5 million.
	The framework for measuring fair value provides a hierarchy that prioritizes the inputs to valuation techniques used in measuring fair value as follows:
	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 directly observable for the asset or liability or indirectly observable through corroboration with observable market data, and
	Level 3 -	Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date.

NET_LOSS_PER_SHARE_Policies

NET LOSS PER SHARE (Policies)	6 Months Ended
	Dec. 31, 2013
NET LOSS PER SHARE [Abstract]	'
Earnings Per Share, Policy [Policy Text Block]	'
	Basic net loss per share is computed by dividing net loss applicable to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed based on the weighted-average number of shares of common stock outstanding during the period increased by the weighted-average number of dilutive common stock equivalents outstanding during the period, using the treasury stock method. Dilutive common stock equivalents are comprised of options granted under the Company's stock option plans, employee stock purchase plan (“ESPP”) share purchase rights, convertible notes, and common stock purchase warrants. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company's net loss position.

INCOME_TAXES_Policies

INCOME TAXES (Policies)	6 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Income Tax, Policy [Policy Text Block]	'
	The Company recognizes the impact of an uncertain income tax position on its income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. The Company had no material accrual for interest and penalties in its consolidated condensed balance sheets at December 31, 2013 and June 30, 2013, and recognized no interest or penalties in the consolidated condensed statements of operations for the three and six months ended December 31, 2013 and 2012.
	The Company is subject to federal and state taxation in the United States and also in certain foreign tax jurisdictions. The Company's tax returns for fiscal 2010 and thereafter are subject to examination by the U.S. federal tax authorities, and the Company's tax returns for fiscal 2009 and thereafter are subject to examination by state tax authorities.
	The Company's ability to use its net operating loss and research and development credit carryforwards may be substantially limited due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended, as well as similar state provisions. The Company has not completed a study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since the Company became a “loss corporation” under the definition of Section 382. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations or financial position of the Company.

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES Warranty and extended warranty (Policies)	6 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Extended Product Warranty, Policy [Policy Text Block]	'
	Warranty and Extended Warranty
	The Company records a provision for estimated future warranty costs for both return-to-factory and on-site warranties. If future actual costs to repair were to differ significantly from estimates, the impact of these unforeseen costs or cost reductions would be recorded in subsequent periods.
	Separately priced extended on-site warranties and service contracts are offered for sale to customers on all product lines. The Company contracts with third-party service providers to provide service relating to on-site warranties and service contracts. Extended warranty and service contract revenue and amounts paid in advance to outside service organizations are deferred and recognized as service revenue and cost of service, respectively, over the period of the service agreement.

RECENT_ACCOUNTING_PRONOUNCEMEN1

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Dec. 31, 2013
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
New Accounting Pronouncements, Policy [Policy Text Block]	'
	RECENT ACCOUNTING PRONOUNCEMENTS
	From time to time, new accounting pronouncements are issued by the FASB that are adopted by the Company as of the specified effective date. If not discussed, the Company believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's consolidated financial statements upon adoption.
	In July 2013, the FASB, issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 provides that an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance affects presentation only and, therefore, it is not expected to have a material impact on the Company's consolidated financial results.

SHORTTERM_INVESTMENT_Tables

SHORT-TERM INVESTMENT (Tables)	6 Months Ended
	Dec. 31, 2013
Short-term investment [Abstract]	'
Available-for-sale Securities [Table Text Block]	'
	The following summarizes short-term investment (in thousands):
		December 31, 2013
		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	Short-term investment — related party	$	481	$	4,236	$	—	$	4,717

COMPOSITION_OF_CERTAIN_FINANCI1

COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS (Tables)	6 Months Ended
	Dec. 31, 2013
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract]	'
Schedule of Inventory, Current [Table Text Block]	'
	The following table summarizes inventories (in thousands):
		December 31,		June 30,
		2013		2013
	Raw materials	$	3,522	$	3,496
	Work in process	848		857
	Finished goods	5,801		6,001
		$	10,171	$	10,354
Schedule of Other Current Assets [Table Text Block]	'
	The following table summarizes other current assets (in thousands):
		December 31,		June 30,
		2013		2013
	Deferred cost - service contracts	$	988	$	1,192
	Prepaid insurance and services	379		355
	VAT receivable	87		155
	Short-term deposits	83		119
	Other	158		102
		$	1,695	$	1,923
Schedule of Other Assets, Noncurrent [Table Text Block]	'
	The following table summarizes other assets (in thousands):
		December 31,		June 30,
		2013		2013
	Deferred cost – service contracts	$	456	$	702
	Other	326		287
		$	782	$	989
Schedule of Accrued Liabilities [Table Text Block]	'
	The following table summarizes accrued liabilities (in thousands):
		December 31,		June 30,
		2013		2013
	Accrued expenses	$	3,455	$	3,955
	Accrued third-party service contracts	951		1,048
	Deferred income tax	986		—
		$	5,392	$	5,003
Schedule of Other Liabilities [Table Text Block]	'
	The following table summarizes other long-term liabilities (in thousands):
		December 31,		June 30,
		2013		2013
	Deferred rent	$	494	$	782
	Related party supply agreement	432		—
	Accrued third-party service contracts	93		125
	Other	—		3
		$	1,019	$	910

NET_LOSS_PER_SHARE_Tables

NET LOSS PER SHARE (Tables)	6 Months Ended
	Dec. 31, 2013
NET LOSS PER SHARE [Abstract]	'
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	'
	Anti-dilutive common stock equivalents excluded from the computation of diluted net loss per share were as follows (in thousands):
		Three Months Ended		Six Months Ended
		December 31,		December 31,
		2013	2012	2013	2012
	Restricted stock not yet vested and released	3,375	3,524	3,375	3,524
	Options outstanding and ESPP share purchase rights	1,402	1,706	1,511	1,441
	Common stock purchase warrants	14,168	12,637	14,168	12,637
	Convertible notes	6,944	—	6,944	—
	Convertible notes interest	2,452	—	2,452	—

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Schedule of Product Warranty Liability [Table Text Block]	'
	Changes in the liability for product warranty and deferred revenue associated with extended warranties and service contracts were as follows (in thousands):
		Product			Deferred
		Warranty			Revenue
	Liability at June 30, 2013	$	790		$	10,354
	Settlements made during the period	(142		)	(5,943		)
	Change in liability for warranties issued during the period	138			4,921
	Change in liability for preexisting warranties	(187		)	—
	Liability at December 31, 2013	$	599		$	9,332

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of Finite-Lived Intangible Assets [Table Text Block]	'
	The following table summarizes intangible assets (in thousands):
		December 31,			June 30,
		2013			2013
	Technology	$	2,427		$	1,928
	Customer contracts and trade names	3,853			3,853
		6,280			5,781
	Less: Accumulated amortization	(5,457		)	(5,129		)
		$	823		$	652

BASIS_OF_PRESENTATION_Textuals

BASIS OF PRESENTATION Textuals (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'	'	'	'	'
Accumulated deficit	($141,276)	'	($141,276)	'	($132,370)
Net loss	($4,316)	($4,273)	($8,906)	($9,136)	'

BASIS_OF_PRESENTATION_Fair_Val

BASIS OF PRESENTATION Fair Value of Financial Instruments (Details) (Fair Value, Inputs, Level 3 [Member], USD $)	6 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013
Fair Value, Inputs, Level 3 [Member]	'
Fair Value, Assets and Liabilities Measured on Recurring Basis	'
Convertible notes, fair value	$6.50
Risk free interest rate	12.00%
Convertible notes, noncurrent	$7.50

SHORTTERM_INVESTMENT_Details

SHORT-TERM INVESTMENT (Details) (Sphere 3D, USD $)	6 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013
Sphere 3D	'
Related Party Transaction [Line Items]	'
Short-term investment related party, shares received	769,231
Short-term investment related party, cost	$481
Gross unrealized gain	4,236
Gross unrealized loss	0
Estimated fair value	$4,717

COMPOSITION_OF_CERTAIN_FINANCI2

COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Inventory (Details) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract]	'	'
Raw materials	$3,522	$3,496
Work in process	848	857
Finished goods	5,801	6,001
Inventories	$10,171	$10,354

COMPOSITION_OF_CERTAIN_FINANCI3

COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Other current assets (Details) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract]	'	'
Deferred cost - service contracts	$988	$1,192
Prepaid Insurance and services	379	355
VAT receivable	87	155
Short-term deposits	83	119
Other	158	102
Other current assets	$1,695	$1,923

COMPOSITION_OF_CERTAIN_FINANCI4

COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Other assets (Details) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract]	'	'
Deferred cost - service contracts	$456	$702
Other	326	287
Other assets	$782	$989

COMPOSITION_OF_CERTAIN_FINANCI5

COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Accrued liabilities (Details) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract]	'	'
Accrued expenses	$3,455	$3,955
Accrued third-party service contracts	951	1,048
Deferred income tax	986	0
Accrued liabilities	$5,392	$5,003

COMPOSITION_OF_CERTAIN_FINANCI6

COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Other long-term liabilities (Details) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract]	'	'
Deferred rent	$494	$782
Related party supply agreement	432	0
Accrued third-party service contracts	93	125
Other	0	3
Other long-term liabilities	$1,019	$910

NET_LOSS_PER_SHARE_Details

NET LOSS PER SHARE (Details)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Restricted stock not yet vested and released	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,375	3,524	3,375	3,524
Options outstanding and ESPP share purchase rights	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,402	1,706	1,511	1,441
Common stock purchase warrants	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	14,168	12,637	14,168	12,637
Convertible notes	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,944	0	6,944	0
Convertible notes interest	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,452	0	2,452	0

INCOME_TAXES_Textuals_Details

INCOME TAXES Textuals (Details) (USD $)	6 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013
Income Tax Disclosure [Abstract]	'	'	'
Income tax penalties and interest accrued	$0	'	$0
Income tax penalties and interest expense	$0	$0	'

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012
			Warranty Reserves	Deferred revenue
Deferred Costs	$1,400,000	$1,900,000	'	'
Deferred software revenue	100,000	200,000	'	'
Extended Product Warranty Disclosure [Abstract]	'	'	'	'
Liability, beginning balance	'	'	790,000	'
Deferred revenue, beginning balance	'	'	'	10,354,000
Settlements made during the period	'	'	-142,000	-5,943,000
Change in liability for warranties issued during the period	'	'	138,000	4,921,000
Change in liability for preexisting warranties	'	'	-187,000	0
Deferred revenue, ending balance	'	'	'	9,332,000
Liability, ending balance	'	'	$599,000	'

COMMITMENTS_AND_CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES Lease (Details)	6 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Lease Expiration Date	31-Mar-19

INTANGIBLE_ASSETS_Intangible_A

INTANGIBLE ASSETS Intangible Assets (Textuals) (Details) (USD $)	3 Months Ended		6 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Amortization [Abstract]	'	'	'	'
Intangible assets, useful life	'	'	'6 years	'
Intangible assets acquired	'	'	$0.50	'
Amortization of intangible assets	0.2	0	0.3	0.3
Amortization expense, remaining fiscal 2014	$0.30	'	$0.30	'

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Finite-Lived Intangible Assets [Line Items]	'	'
Finite-lived intangible assets, gross	$6,280	$5,781
Accumulated amortization	-5,457	-5,129
Intangible assets, net	823	652
Acquired Technology	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Finite-lived intangible assets, gross	2,427	1,928
Customer contracts and trade names	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Finite-lived intangible assets, gross	$3,853	$3,853

EQUITY_DEFICIT_Details

EQUITY (DEFICIT) (Details) (USD $)	6 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013
Restricted Stock	'	'	'
Payment for restricted stock tax liability on net settlement	$239	$429	'
Options and Awards Outstanding	'	'	'
Options and Awards, outstanding, number	5,000,000	'	4,400,000
Employee Stock Purchase Plan	'	'	'
Stock issued during period, shares	54,357	64,890	'
Common Stock Exercises	'	'	'
Exercise of outstanding stock options, shares	0	27,751	'
Restricted Stock	'	'	'
Restricted Stock	'	'	'
Shares issued net of shares for tax withholdings	472,804	562,124	'
Shares paid for tax withholding for restricted stock units released	216,367	242,514	'
Payment for restricted stock tax liability on net settlement	$200	$400	'
Outside of 2009 Equity Incentive Plan [Member] | Restricted Stock	'	'	'
Options and Awards Outstanding	'	'	'
Grants in period	125,000	200,000	'
Award vesting period	'	'3 years	'
Outside of 2009 Equity Incentive Plan [Member] | Stock Option	'	'	'
Options and Awards Outstanding	'	'	'
Grants in period	75,000	'	'
Award vesting period	'3 years	'	'
2009 Equity Incentive Plan [Member] | Restricted Stock	'	'	'
Options and Awards Outstanding	'	'	'
Grants in period	1,100,000	'	'
Award vesting period	'3 years	'	'

EQUITY_DEFICIT_Issuance_of_Com

EQUITY (DEFICIT) Issuance of Common Stock for Convertible Notes (Details) (USD $)	6 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument, Redemption [Line Items]	'	'
Convertible notes, shares issued	8,247,896	'
Conversion price	$1.30	'
Conversion of convertible notes	$10,700	$0
Stock Issued During Period, Shares, Interest Payment	379,310	'
Share Price	$0.98	'

DEBT_Credit_Facility_Details

DEBT Credit Facility (Details) (Line of Credit, USD $)	6 Months Ended
	Dec. 31, 2013
Credit Facility [Line Items]	'
Maximum borrowing capacity	$8,000,000
Notes not secured by percentage of foreign subsidiaries stock	65.00%
Interest rate description	'prime rate (as defined in the credit facility) plus a margin
Credit facility, maturity date	7-Aug-15
Line of credit for letters of credit, foreign exchange contract, and cash management	750,000
Interest rate at period end	4.25%
Credit facility, amount outstanding	3,500,000
Credit facility, remaining borrowing capacity	4,500,000
Line of credit, current	$0
Minimum [Member]	'
Credit Facility [Line Items]	'
Basis spread on variable rate	1.00%
Maximum [Member]	'
Credit Facility [Line Items]	'
Basis spread on variable rate	1.25%

DEBT_Convertible_Notes_Details

DEBT Convertible Notes (Details) (USD $)

6 Months Ended

6 Months Ended

6 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Feb. 13, 2013

Dec. 31, 2013

Jan. 17, 2014

Dec. 24, 2013

Nov. 12, 2013

Nov. 01, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Initial Notes [Member]

Initial Notes [Member]

Additional Notes [Member]

Additional Notes [Member]

Additional Notes [Member]

Additional Notes [Member]

Additional Notes [Member]

Convertible Notes

Cyrus Purchasers [Member]

Cyrus Purchasers [Member]

Initial Notes [Member]

Additional Notes [Member]

Debt Instrument [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

Conversion of convertible notes

$10,700,000

$0

'

'

'

'

'

'

'

'

'

'

Convertible notes payable

'

'

'

13,250,000

'

'

'

'

'

'

'

'

Additional convertible notes - not yet issued

'

'

'

'

'

'

'

'

7,000,000

'

'

'

Convertible notes issued

'

'

'

'

'

2,000,000

2,000,000

3,000,000

'

'

'

'

Convertible notes, maturity date

'

'

28-Feb-17

'

'

'

'

'

'

'

'

'

Convertible notes, interest rate, stated percentage

8.00%

'

'

'

'

'

'

'

'

'

'

'

Notes issuance cost

'

'

'

'

'

'

'

'

'

300,000

'

'

Additional notes, term

'

'

'

'

'4 years

'

'

'

'

'

'

'

Convertible notes, shares issued

8,247,896

'

'

'

'

'

'

'

'

'

'

'

Convertible notes, noncurrent

'

'

'

'

'

'

'

'

'

7,500,000

'

'

Convertible notes, current maturities

'

'

'

'

'

'

'

'

'

$0

'

'

Threashold of ownership to determine payment terms of interest

'

'

'

'

'

'

'

'

'

20.00%

'

'

Number of trading days used for calculation of number of common shares for interest payment

'

'

'

'

'

'

'

'

'

'20 days

'

'

Stock price floor for interest payments paid in common stock

'

'

$0.98

'

$0.90

'

'

'

'

'

'

'

Conversion price

$1.30

'

$2.60

'

$1.50

'

'

'

'

'

$1.30

$1

Number of trading days at multiplied conversion price before the Company has option to convert

'

'

'

'

'

'

'

'

'

'10 days

'

'

Additional notes prepay term

'

'

'

'

'90 days

'

'

'

'

'

'

'

Notes secured by percentage of foreign subsidiaries stock

'

'

'

'

'

'

'

'

'

65.00%

'

'

Default on notes, interest rate

'

'

'

'

'

'

'

'

'

11.00%

'

'

RELATED_PARTY_Details

RELATED PARTY (Details) (USD $)	3 Months Ended	6 Months Ended			6 Months Ended
	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013	Dec. 31, 2013	Jul. 12, 2013	Jul. 12, 2013	Dec. 31, 2013
					Sphere 3D	Sphere 3D	Chief Executive Officer	Sphere 3D
Related Party Transaction [Line Items]	'	'	'	'	'	'	'	'
Purchase of intangible assets, cash payment	'	$250,000	$0	'	$250,000	'	'	'
Stock issued during period, shares	'	'	'	'	213,220	'	'	'
Common stock issued for purchase of intangible assets, amount	'	250,000	0	'	250,000	'	'	'
Sphere investment, shares received	'	'	'	'	'	769,231	'	769,231
Sphere investment, value of shares received	'	'	'	'	'	500,000	'	481,000
Option granted to CEO by related party	'	'	'	'	'	'	850,000	'
Option exercise price coverted to USD, CEO options from related party	'	'	'	'	'	'	$0.63	'
CEO ownership percentage of related party	'	'	'	'	'	'	5.00%	'
Accounts receivable, related party	175,000	175,000	'	'	'	'	'	'
Related party other long-term liability	432,000	432,000	'	0	'	'	'	'
Revenue from related party	237,000	237,000	'	'	'	'	'	'
Expenses from transactions with related party	$0	$0	'	'	'	'	'	'

SUBSEQUENT_EVENTS_Authorized_N

SUBSEQUENT EVENTS Authorized Number of Shares of Common Stock (Details)	Jan. 17, 2014	Dec. 31, 2013	Jun. 30, 2013
Subsequent Events [Abstract]	'	'	'
Common Stock, Shares Authorized	125,000,000	90,200,000	90,200,000

SUBSEQUENT_EVENTS_2009_Equity_

SUBSEQUENT EVENTS 2009 Equity Incentive Plan (Details)	0 Months Ended
	Jan. 17, 2014
Subsequent Event [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	7,000,000

SUBSEQUENT_EVENTS_Acquisition_

SUBSEQUENT EVENTS Acquisition (Details) (USD $)	0 Months Ended
In Millions, except Share data, unless otherwise specified	Jan. 21, 2014
Subsequent Event [Line Items]	'
Stock issued during period, value, Tandberg acquisition	$49
Stock issued for Tandberg acquisition, shares	47,152,630