Document_Entity_Information_Do
Document Entity Information Document (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Sep. 15, 2014 | Dec. 31, 2013 | |
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-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 17,586,556 | ' |
Entity Public Float | ' | ' | $20,082,265 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash | $4,262 | $8,831 |
Short-term investment — related party | 7,814 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $31 and $94, as of June 30, 2014 and 2013, respectively | 14,171 | 6,640 |
Inventories | 15,525 | 10,354 |
Other current assets | 2,419 | 1,923 |
Total current assets | 44,191 | 27,748 |
Property and equipment, net | 5,799 | 2,014 |
Goodwill | 19,044 | 0 |
Intangible assets, net | 23,784 | 652 |
Other non-current assets | 1,121 | 989 |
Total assets | 93,939 | 31,403 |
Liabilities and Shareholders’ Equity (Deficit) | ' | ' |
Accounts payable | 11,159 | 5,221 |
Accrued liabilities | 6,780 | 5,003 |
Accrued payroll and employee compensation | 3,561 | 2,140 |
Income taxes payable | 118 | 178 |
Accrued warranty | 994 | 790 |
Deferred revenue | 7,941 | 7,732 |
Other current liabilities | 1,874 | 0 |
Total current liabilities | 32,427 | 21,064 |
Deferred revenue, noncurrent | 3,371 | 2,975 |
Long-term debt — related party | 14,528 | 13,250 |
Long-term debt | 5,406 | 3,500 |
Other long-term liabilities | 1,413 | 910 |
Total liabilities | 57,145 | 41,699 |
Commitments and contingencies (Note 13) | ' | ' |
Shareholders' equity (deficit): | ' | ' |
Preferred stock, no par value, 1,000 shares authorized; no shares issued and outstanding as of June 30, 2014 and 2013 | 0 | 0 |
Common stock, no par value, 125,000 shares authorized; 17,540 shares issued and outstanding as of June 30, 2014, and 90,200 shares authorized; 6,081 issued and outstanding as of June 30, 2013 | 187,434 | 123,065 |
Accumulated other comprehensive income (loss) | 4,654 | -991 |
Accumulated deficit | -155,294 | -132,370 |
Total shareholders’ equity (deficit) | 36,794 | -10,296 |
Total liabilities and shareholders’ equity (deficit) | $93,939 | $31,403 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parenthetical Data (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $31 | $94 |
Preferred Stock, No Par Value | $0 | $0 |
Preferred Stock, Shares Authorized | 1,000 | 1,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, No Par Value | $0 | $0 |
Common Stock, Shares Authorized | 125,000 | 90,200 |
Common Stock, Shares, Issued | 17,540 | 6,081 |
Common Stock, Shares, Outstanding | 17,540 | 6,081 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Net revenue: | ' | ' |
Product revenue | $48,354 | $28,836 |
Service revenue | 17,338 | 19,184 |
Revenue, net | 65,692 | 48,020 |
Cost of product revenue | 38,165 | 24,950 |
Cost of service revenue | 7,212 | 6,270 |
Gross profit | 20,315 | 16,800 |
Operating expenses: | ' | ' |
Sales and marketing | 18,410 | 17,574 |
Research and development | 6,189 | 6,522 |
General and administrative | 19,666 | 11,579 |
Operating expenses | 44,265 | 35,675 |
Loss from operations | -23,950 | -18,875 |
Other income (expense): | ' | ' |
Interest expense | -1,192 | -594 |
Other income (expense), net | -342 | -13 |
Loss before income taxes | -25,484 | -19,482 |
(Benefit from) provision for income taxes | -2,560 | 165 |
Net loss | ($22,924) | ($19,647) |
Net loss per share: | ' | ' |
Basic and diluted | ($1.99) | ($3.41) |
Shares used in computing net loss per share: | ' | ' |
Basic and diluted | 11,491 | 5,768 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Net loss | ($22,924) | ($19,647) |
Other Comprehensive Income (Loss): | ' | ' |
Change in unrealized gains, net of tax of $2,607 and $0, respectively | 4,727 | 0 |
Foreign currency translation adjustments | 918 | -73 |
Total other comprehensive income (loss) | 5,645 | -73 |
Comprehensive loss | ($17,279) | ($19,720) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss Parentheticals (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $2,607 | $0 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (Deficit) (USD $) | Total | Common Stock, Shares | Common Stock, Amount | Accumulated Other Comprehensive Loss | Accumulated Deficit |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | |
Shareholders' equity at Jun. 30, 2012 | $3,041 | ' | $116,682 | ($918) | ($112,723) |
Common stock, shares at Jun. 30, 2012 | ' | 5,548,000 | ' | ' | ' |
Common stock issued during period, shares | ' | 204,000 | ' | ' | ' |
Issuance of common stock, net of issuance costs | 870 | ' | 870 | ' | ' |
Issuance of common stock for settlement of convertible notes interest, shares | ' | 70,000 | ' | ' | ' |
Issuance of common stock for settlement of convertible notes interest | 401 | ' | 401 | ' | ' |
Exercise of stock options and ESPP purchases, shares | ' | 33,000 | ' | ' | ' |
Exercise of stock options and ESPP purchases | 215 | ' | 215 | ' | ' |
Issuance of restricted stock | ' | 226,000 | ' | ' | ' |
Restricted Stock, shares issued net of withholding taxes, value | -749 | ' | -749 | ' | ' |
Share-based compensation | 4,770 | ' | 4,770 | ' | ' |
Stock appreciation rights | 876 | ' | 876 | ' | ' |
Net loss | -19,647 | ' | ' | ' | -19,647 |
Other comprehensive income (loss) | -73 | ' | ' | -73 | ' |
Shareholders' equity (deficit) at Jun. 30, 2013 | -10,296 | ' | 123,065 | -991 | -132,370 |
Common stock, shares at Jun. 30, 2013 | ' | 6,081,000 | ' | ' | ' |
Common stock issued during period, shares | ' | 9,473,000 | ' | ' | ' |
Issuance of common stock, net of issuance costs | 49,288 | ' | 49,288 | ' | ' |
Issuance of common stock for settlement of convertible notes, shares | ' | 1,650,000 | ' | ' | ' |
Issuance of common stock for convertible notes | 10,722 | ' | 10,722 | ' | ' |
Issuance of common stock for settlement of convertible notes interest, shares | ' | 104,000 | ' | ' | ' |
Issuance of common stock for settlement of convertible notes interest | 507 | ' | 507 | ' | ' |
Exercise of stock options and ESPP purchases, shares | ' | 20,000 | ' | ' | ' |
Exercise of stock options and ESPP purchases | 87 | ' | 87 | ' | ' |
Issuance of restricted stock | ' | 212,000 | ' | ' | ' |
Restricted Stock, shares issued net of withholding taxes, value | -490 | ' | -490 | ' | ' |
Share-based compensation | 3,953 | ' | 3,953 | ' | ' |
Stock appreciation rights | 302 | ' | 302 | ' | ' |
Net loss | -22,924 | ' | ' | ' | -22,924 |
Other comprehensive income (loss) | 5,645 | ' | ' | 5,645 | ' |
Shareholders' equity (deficit) at Jun. 30, 2014 | $36,794 | ' | $187,434 | $4,654 | ($155,294) |
Common stock, shares at Jun. 30, 2014 | ' | 17,540,000 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' |
Net loss | ($22,924) | ($19,647) |
Adjustments to reconcile net loss to cash used in operating activities (net of effects of acquisition): | ' | ' |
Depreciation and amortization | 2,597 | 1,248 |
Tax benefit | -2,215 | 0 |
Share-based compensation | 3,953 | 4,770 |
Loss on disposal of property and equipment | 35 | 27 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 39 | 2,553 |
Inventories | 1,253 | 304 |
Accounts payable and accrued liabilities | 279 | -3,217 |
Accrued payroll and employee compensation | -393 | 75 |
Deferred revenue | -1,120 | -1,962 |
Other assets and liabilities, net | -517 | 1,806 |
Net cash used in operating activities | -19,013 | -14,043 |
Investing activities: | ' | ' |
Cash acquired from acquisition | 1,715 | 0 |
Restricted cash acquired from acquisition | 400 | 0 |
Purchase of fixed assets | -954 | -983 |
Purchase of intangible assets | -250 | 0 |
Net cash provided by (used in) investing activities | 911 | -983 |
Financing activities: | ' | ' |
Proceeds from convertible notes - related party | 7,000 | 13,002 |
Proceeds from borrowings - related party | 5,000 | 0 |
Proceeds from credit facility | 3,018 | 0 |
Repayment of borrowings from credit facility | -1,111 | 0 |
Proceeds from issuance of common stock, net of issuance costs | 0 | 870 |
Payment for restricted stock tax liability on net settlement | -490 | -749 |
Proceeds from exercise of stock options and ESPP purchases | 86 | 215 |
Net cash provided by financing activities | 13,503 | 13,338 |
Effect of exchange rate changes on cash | 30 | -3 |
Net decrease in cash and cash equivalents | -4,569 | -1,691 |
Cash, beginning of year | 8,831 | 10,522 |
Cash, end of year | 4,262 | 8,831 |
Supplemental disclosures of cash flow information: | ' | ' |
Income taxes paid | 286 | 191 |
Interest paid | 418 | 167 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' |
Issuance of common stock for acquisition | 49,288 | 0 |
Issuance of common stock for conversion of convertible notes | 10,722 | 0 |
Issuance of common stock for settlement of convertible notes interest | 507 | 401 |
Short-term investment — related party | 481 | 0 |
Equity award fair value adjustment to liability | 302 | 876 |
Issuance of common stock for purchase of intangible assets — related party | 250 | 0 |
Fixed asset purchases in accounts payable and accrued liabilities | $236 | $102 |
OPERATIONS_AND_SUMMARY_OF_SIGN
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||||||||||||||||
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
General | |||||||||||||||||
Overland Storage, Inc. (“Overland” or the “Company”) was incorporated on September 8, 1980 under the laws of the State of California. For more than 30 years, Overland has delivered data protection solutions designed for backup and recovery to ensure business continuity. The Company has a portfolio of disk-based data protection solutions, including network attached storage (“NAS”) and storage area network (“SAN”) products and solutions, as well as tape-based data protection solutions, including tape and virtual tape library systems, designed for small and medium business computing environments. | |||||||||||||||||
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 year 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. Fiscal 2014 and 2013 each contained 52 weeks. | |||||||||||||||||
In January 2014, the Company completed its acquisition of Tandberg Data Holdings S.à r.l. (“Tandberg Data”). | |||||||||||||||||
The Company has incurred losses since fiscal 2006 and negative cash flows from operating activities fiscal 2007. As of June 30, 2014, the Company had an accumulated deficit of $155.3 million. During fiscal 2014, the Company incurred a net loss of $22.9 million. The Company expects to incur negative operating cash flows during the continued period of integration for its acquisition completed in January 2014 as the Company works to combine the entities and to improve operational efficiencies. | |||||||||||||||||
The Company has projected that cash on hand, its short-term investment (the common shares of Sphere 3D the Company owns), available borrowings under the Company's credit facility, and other sources of funding 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, (iv) changes in the historical timing of collecting accounts receivable, and/or (v) the Company's inability to liquidate its short-term investment could have a material adverse impact on the Company's ability to access the level of funding necessary to continue its operations at current levels. If any of these events occur or if we are not able to secure additional funding (including from Sphere 3D), the Company may be forced 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, and/or prevent us from consummating the proposed merger with Sphere 3D. The Company may seek debt, equity or equity-based financing (such as convertible debt) when market conditions and the merger agreement with Sphere 3D 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 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 financial statements include the accounts of the Company and its wholly-owned subsidiaries, including Tandberg Data. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Proposed Merger | |||||||||||||||||
In May 2014, the Company announced that it signed an agreement and plan of merger (the “Merger Agreement”) with Sphere 3D Corporation (“Sphere 3D”). Pursuant to the terms of the merger agreement, upon the consummation of the merger the Company would become a wholly owned subsidiary of Sphere 3D. The merger is expected to close in the second quarter of fiscal 2015. | |||||||||||||||||
At the effective time of the merger, each issued and outstanding share of common stock of the Company will be canceled and automatically converted into the right to receive 0.510594 shares of common stock of Sphere 3D, subject to adjustment in certain circumstances. The Merger Agreement contains customary reciprocal operating covenants as well as customary negative covenants. Additionally, the Company is subject to a “no-shop” restriction on its ability to solicit alternative acquisition proposals, provide information to third parties and engage in discussions with third parties (subject to exceptions in certain limited circumstance). | |||||||||||||||||
The Merger Agreement contains certain termination rights for both the Company and Sphere 3D. The Merger Agreement provides that, upon termination under specified circumstances, the Company would be required to pay Sphere 3D a termination fee of $3.5 million. The Company and Sphere 3D are entitled to seek specific performance in order to enforce one another's obligations under the Merger Agreement. | |||||||||||||||||
The Company's shareholders will be asked to vote on the approval of the Merger Agreement and the Merger at a special shareholders' meeting that will be held on a date to be announced. The closing of the Merger is subject to a condition that the Merger be approved by the affirmative vote of the holders of a majority of all outstanding shares of common stock of the Company. Consummation of the Merger is also subject to certain customary closing conditions. Certain shareholders of the Company holding a majority of the issued and outstanding shares of common stock of the Company have entered into voting agreements with Sphere 3D pursuant to which they have agreed to vote their shares of common stock in favor of the Merger at the special meeting. The Merger is not conditioned upon Sphere 3D obtaining additional financing. | |||||||||||||||||
The Board of Directors of the Company approved the Merger Agreement on May 15, 2014, with Eric Kelly abstaining (in order to avoid any appearance of conflict of interest resulting from his position as a director of Sphere 3D) and Daniel Bordessa abstaining (in order to avoid any appearance of conflict of interest resulting from his position as a nominee of Cyrus Capital Partners, the majority shareholder of the Company, and a holder of certain debt securities of Sphere 3D). | |||||||||||||||||
The terms of the Merger Agreement did not impact the Company's consolidated financial statements as of and for the year ended June 30, 2014. | |||||||||||||||||
Reverse Stock Split | |||||||||||||||||
On January 16, 2014, the shareholders approved, and on April 9, 2014, the Company filed a certificate of amendment to its Amended and Restated Certificate of Incorporation with the Secretary of the State of California effecting a one-for-five reverse split of the Company's capital stock. All share, per share, and stock option data information in the accompanying consolidated financial statements and the notes thereto have been restated for all periods to reflect the reverse stock split. | |||||||||||||||||
Reclassifications | |||||||||||||||||
Certain prior year amounts have been reclassified to conform to the fiscal 2014 presentation. | |||||||||||||||||
Management Estimates and Assumptions | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and reported amounts of revenue and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information and actual results could differ from those estimates. | |||||||||||||||||
Business Combination | |||||||||||||||||
Business combinations are accounted for using the acquisition method of accounting, and accordingly, the assets and liabilities of the acquired business are recorded at their fair values at the date of acquisition. The excess of the purchase price over the estimated fair values is recorded as goodwill. Any changes in the estimated fair values of the net assets recorded for acquisitions prior to the finalization of more detailed analysis will change the amount of the purchase prices allocable to goodwill. All acquisition costs are expensed as incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenue from sales of products is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, collectibility is reasonably assured and delivery has occurred. Under this policy, revenue on direct product sales, excluding sales to distributors, is recognized upon shipment of products to customers. These customers are not entitled to any specific right of return or price protection, except for any defective product that may be returned under the Company's warranty policy. | |||||||||||||||||
Generally, title and risk of loss transfer to the customer when the product leaves the Company's dock, except for the Tandberg Data subsidiary where title and risk of loss transfer to the customer when the product arrives at the customer's location. Product sales to distribution customers are subject to certain rights of return, stock rotation privileges and price protection. Because the Company is unable to estimate its exposure for returned product or price adjustments, revenue from shipments to these customers is not recognized until the related products are in turn sold to the ultimate customer by the distributor. For products for which software is more than an incidental component, the Company recognizes revenue in accordance with current authoritative guidance for software revenue recognition. | |||||||||||||||||
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. | |||||||||||||||||
Shipping and Handling | |||||||||||||||||
Amounts billed to customers for shipping and handling are included in product revenue, and costs incurred related to shipping and handling are included in cost of product. | |||||||||||||||||
Advertising Costs | |||||||||||||||||
Advertising costs are expensed as incurred. Advertising expenses were $1.0 million and $0.7 million for fiscal years 2014 and 2013, respectively. | |||||||||||||||||
Research and Development Costs | |||||||||||||||||
Research and development costs are expensed as incurred. Software development costs are expensed until technological feasibility has been established, at which time any additional costs are capitalized. Because the Company believes its current process for developing software is essentially completed concurrently with the establishment of technological feasibility, which occurs upon the completion of a working model, no costs were capitalized during fiscal 2014 and 2013. | |||||||||||||||||
Segment Information | |||||||||||||||||
The Company reports segment data based on the management approach. The management approach designates the internal reporting that is used by management for making operating and investment decisions and evaluating performance as the source of the Company's reportable segments. The Company uses one measurement of profitability and does not disaggregate its business for internal reporting. The Company operates in one industry segment providing data storage solutions for small and medium businesses and distributed enterprises. The Company discloses information about products and services, geographic areas and major customers. | |||||||||||||||||
Short-term Investment — Related Party | |||||||||||||||||
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 statements of operations. | |||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||||||
The Company records accounts receivable at the invoice amount and does not charge interest thereon. The Company estimates its allowance for doubtful accounts based on an assessment of the collectibility of specific accounts and the overall condition of the accounts receivable portfolio. When evaluating the adequacy of the allowance for doubtful accounts, the Company analyzes specific trade and other receivables, historical bad debts, customer credits, customer concentrations, customer credit-worthiness, current economic trends and changes in customers' payment terms and/or patterns. The Company reviews the allowance for doubtful accounts on a quarterly basis and records adjustments as considered necessary. Customer accounts are written-off against the allowance for doubtful accounts when an account is considered uncollectible. | |||||||||||||||||
The following table summarizes the changes in allowance for doubtful accounts (in thousands): | |||||||||||||||||
Fiscal year | Balance at | Charged to | Write-offs, | Balance | |||||||||||||
Beginning of | Expense | Net of | at End | ||||||||||||||
Year | Recoveries | of Year | |||||||||||||||
2014 | $ | 94 | $ | 20 | $ | (83 | ) | $ | 31 | ||||||||
2013 | $ | 222 | $ | 3 | $ | (131 | ) | $ | 94 | ||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or market using the first-in-first-out method. The Company assesses the value of its inventories periodically based upon numerous factors including, among others, expected product or material demand, current market conditions, technological obsolescence, current cost and net realizable value. If necessary, the Company writes down its inventory for obsolete or unmarketable inventory by an amount equal to the difference between the cost of the inventory and the estimated market value. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are recorded at cost. Depreciation expense is computed using the straight-line method. Leasehold improvements are depreciated over the shorter of the remaining estimated useful life of the asset or the term of the lease. | |||||||||||||||||
Estimated useful lives are as follows: | |||||||||||||||||
Building | 40 years | ||||||||||||||||
Machinery and equipment | 3-5 years | ||||||||||||||||
Furniture and fixtures | 5 years | ||||||||||||||||
Computer equipment and software | 1-5 years | ||||||||||||||||
Expenditures for normal maintenance and repair are charged to expense as incurred, and improvements are capitalized. Upon the sale or retirement of property or equipment, the asset cost and related accumulated depreciation are removed from the respective accounts and any gain or loss is included in the results of operations. | |||||||||||||||||
Long-lived Assets | |||||||||||||||||
The Company evaluates the recoverability of long-lived assets, including property and equipment. The Company tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company's consideration includes, but is not limited to, the following events or changes as potential indicators of non-recoverability: | |||||||||||||||||
• | Significant under-performance relative to historical or projected future operating results. | ||||||||||||||||
• | Significant changes in the manner of use of the assets or the strategy for the Company's overall business. | ||||||||||||||||
• | Significant decrease in the market value of the assets. | ||||||||||||||||
• | Significant negative industry or economic trends. | ||||||||||||||||
When the carrying value is not considered recoverable, an impairment loss for the amount by which the carrying value of a long-lived asset exceeds its fair value is recognized, with an offsetting reduction in the carrying value of the related asset. If the Company's future results are significantly different from its forecast, the Company may be required to further evaluate its long-lived assets for recoverability and such analysis could result in an impairment charge in a future period. In both fiscal 2014 and 2013, there were no impairments recognized. | |||||||||||||||||
Goodwill and Purchased Intangible Assets | |||||||||||||||||
Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. The carrying amount of goodwill is tested for impairment on an annual basis at June 30, or more frequently if the Company believes indicators of impairment exist. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. | |||||||||||||||||
Purchased intangible assets are amortized on a straight-line basis over their economic lives of three to ten years for developed technology, six years for customer contracts and trade names, and 15 years for customer relationships as the Company believes this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. When the carrying value is not considered recoverable, an impairment loss for the amount by which the carrying value of an intangible asset exceeds its fair value is recognized, with an offsetting reduction in the carrying value of the related intangible asset. If the Company's future results are significantly different from its forecast, the Company may be required to further evaluate its intangible assets for recoverability and such analysis could result in an impairment charge in a future period. | |||||||||||||||||
Foreign Currency | |||||||||||||||||
The financial statements of foreign subsidiaries, for which the functional currency is the local currency, are translated into U.S. dollars using the exchange rate at the balance sheet date for assets and liabilities and a weighted-average exchange rate during the year for revenue, expenses, gains and losses. Translation adjustments are recorded as other comprehensive income (loss) within shareholders' equity. Gains or losses from foreign currency transactions are recognized in the consolidated statements of operations. Such transactions resulted in a loss of $353,000 and $19,000 for fiscal 2014 and 2013, respectively. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The Company provides for income taxes utilizing the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when a judgment is made that it is considered more likely than not that a tax benefit will not be realized. A decision to record a valuation allowance results in an increase in income tax expense or a decrease in income tax benefit. If the valuation allowance is released in a future period, income tax expense will be reduced accordingly. | |||||||||||||||||
The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The impact of an uncertain income tax position is recognized 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. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. | |||||||||||||||||
Comprehensive Loss | |||||||||||||||||
Comprehensive loss and its components encompasses all changes in equity other than those with stockholders, includes net loss, unrealized gains on related party investment, and foreign currency translation adjustments, and are disclosed in a separate consolidated statement of comprehensive loss. | |||||||||||||||||
Concentration of Credit Risks | |||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable, which are generally not collateralized. To reduce credit risk, the Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses for estimated bad debt losses. | |||||||||||||||||
The following table indicates the percentage of net revenue and accounts receivable in excess of 10% with any single customer: | |||||||||||||||||
Percentage of | |||||||||||||||||
Fiscal Year Ended: | Net Revenue | Trade Accounts Receivable | |||||||||||||||
June 30, 2014 | Customer A | 10.6 | % | 6.8 | % | ||||||||||||
Customer B | 7.2 | % | 13.1 | % | |||||||||||||
June 30, 2013 | Customer A | 12.2 | % | 14.5 | % | ||||||||||||
Customer B | 12.2 | % | 16.6 | % | |||||||||||||
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. Dilutive common stock equivalents are comprised of awards and options granted under the Company's stock option plans, employee stock purchase plan (“ESPP”) share purchase rights, common stock purchase warrants, and convertible notes. 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): | |||||||||||||||||
Fiscal Year | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Restricted stock not yet vested and released | 1,903 | 529 | |||||||||||||||
Options outstanding and ESPP share purchase rights | 278 | 332 | |||||||||||||||
Common stock purchase warrants | 2,875 | 2,726 | |||||||||||||||
Convertible notes | 1,789 | 2,038 | |||||||||||||||
Convertible notes interest | 568 | 795 | |||||||||||||||
Share-based Compensation | |||||||||||||||||
The Company accounts for share-based awards, and similar equity instruments, granted to employees and non-employee directors under the fair value method. Share-based compensation award types include stock options, restricted stock, and stock appreciation rights (“SAR”) awards. The Company uses the Black-Scholes option pricing model to estimate the fair value of its option awards on the measurement date, which generally is the date of grant. The cost is recognized over the requisite service period (usually the vesting period) for the estimated number of instruments for which service is expected to be rendered. | |||||||||||||||||
Compensation expense associated with options with graded vesting is recognized pursuant to an accelerated method. Compensation expense associated with restricted stock is recognized over the vesting period using the straight-line method. The Company has not recognized, and does not expect to recognize in the near future, any tax benefit related to share-based compensation cost as a result of the full valuation allowance of the Company's net deferred tax assets and its net operating loss carryforwards. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
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. Short-term investments are measured at fair value using Level 1 inputs as the stock is traded on the TSX Venture Exchange and the NASDAQ Global Market. The carrying amount of the credit facilities borrowings approximate their fair value as the interest rate of the credit facilities are substantially comparable to rates offered for similar debt instruments. At June 30, 2014, the fair value of related party long-term debt was estimated to be $12.0 million, using an estimated interest rate of 12%, and was classified within Level 3 of the fair value hierarchy. At June 30, 2013, the fair value of related party long-term debt was estimated to be $11.5 million, using an estimated interest rate of 12%, and was classified within Level 3 of the fair value hierarchy. At June 30, 2014 and 2013, the related party debt had a carrying value of $14.5 million and $13.25 million, respectively. | |||||||||||||||||
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. | ||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||
In July 2013, the FASB (“Financial Accounting Standards Board”), 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 affected presentation only and, therefore, did not have a material impact on the Company's consolidated financial results. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The impact on our financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-09 has not yet been determined. | |||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern. ASU 2014-15 provides that in connection with preparing financial statements for each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). ASU 2014-15 will be effective for the annual reporting period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The impact on our financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-15 has not yet been determined. |
BUSINESS_COMBINATION_Notes
BUSINESS COMBINATION (Notes) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||
BUSINESS COMBINATION | |||||||||
On January 21, 2014, the Company acquired Tandberg Data, a privately held provider of data storage and data protection solutions, for consideration transferred of approximately $49.0 million, which was paid in shares of the Company's common stock. The shareholders of Tandberg Data received 9,430,526 shares of the Company's common stock at $5.20 per share. This acquisition expands the Company's number of global channel and service partners, product lines and service offerings, as well as expands the Company's market reach in Europe and the Asia-Pacific region. | |||||||||
A summary of the preliminary estimated fair values of the assets acquired and liabilities assumed as of the closing date (in thousands): | |||||||||
Cash and cash equivalents | $ | 1,715 | |||||||
Restricted cash | 400 | ||||||||
Accounts receivable | 7,571 | ||||||||
Inventories | 6,416 | ||||||||
Property and equipment | 3,763 | ||||||||
Identifiable intangible assets | 24,260 | ||||||||
Other assets | 1,959 | ||||||||
Total identifiable assets acquired | 46,084 | ||||||||
Current liabilities | (13,796 | ) | |||||||
Other liabilities | (2,293 | ) | |||||||
Total identifiable liabilities assumed | (16,089 | ) | |||||||
Net identifiable assets acquired | 29,995 | ||||||||
Goodwill | 19,044 | ||||||||
Net assets acquired | $ | 49,039 | |||||||
Goodwill is comprised of expected synergies from combining Tandberg's operations with that of the Company, reduction in future combined research and development expenses, and intangible assets, such as acquired workforce, that do not qualify for separate recognition. | |||||||||
The fair value estimates for the assets acquired and liabilities assumed for the acquisition were based on estimates and analysis, including work performed by third-party valuation specialists. Adjustments may be made to the estimated fair values during the measurement period as we obtain additional information. The primary area of estimates that were not yet finalized related to inventories. None of the goodwill recognized upon acquisition is deductible for tax purposes. In the fourth quarter of fiscal 2014, the Company recorded an adjustment of $0.4 million to goodwill and other liabilities primarily related to deferred taxes. | |||||||||
The identified intangible assets as of the date of acquisition consisted of the following (in thousands): | |||||||||
Estimated | Weighted- | ||||||||
Fair Value | Average | ||||||||
Useful Life | |||||||||
(years) | |||||||||
Developed technology | $ | 21,040 | 9.2 | ||||||
Customer relationships | 1,120 | 15 | |||||||
Total finite lived intangible assets | 22,160 | 8.8 | |||||||
Indefinite lived intangible asset — trade name | 2,100 | n/a | |||||||
Total identified intangible assets | $ | 24,260 | |||||||
The Company's consolidated net revenues for the fiscal year ended June 30, 2014 included $25.5 million attributable Tandberg Data since the acquisition. Due to continued integration of the combined businesses since the date of acquisition, it is impracticable to determine the earnings or loss contributed by the acquisition. | |||||||||
The following unaudited pro forma combined financial information gives effect to the acquisition as if it were consummated on July 1, 2012 (the beginning of the earliest fiscal period presented). Due to historically differing fiscal year ends of the Company and Tandberg Data, the unaudited pro forma combined financial information for the fiscal years ended June 30, 2014 and 2013 are based on the historical results of the Company, and derived from the historical results of Tandberg Data by combining the six-month period ended December 31, 2012 and the six month period ended June 30, 2013; as well as, the six month period ended December 31, 2013 and the period ended January 21, 2014. The unaudited pro forma combined financial information is presented for informational purposes only, is not intended to represent or be indicative of the results of operations of the Company that would have been reported had the acquisition occurred on July 1, 2012, and should not be taken as representative of future consolidated results of operations of the combined company (in thousands): | |||||||||
Fiscal Year | |||||||||
2014 | 2013 | ||||||||
Net revenue | $ | 99,588 | $ | 109,671 | |||||
Net loss | $ | (30,634 | ) | $ | (28,524 | ) | |||
Net loss per share | $ | (1.82 | ) | $ | (1.90 | ) | |||
The Company incurred acquisition related expenses of $2.1 million which consisted primarily of due diligence, legal and other one-time integration charges and are included in general and administrative expense in the consolidated statements of operations. |
SHORTTERM_INVESTMENT_RELATED_P
SHORT-TERM INVESTMENT - RELATED PARTY (Notes) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | ||||||||||||||||
SHORT-TERM INVESTMENT— RELATED PARTY | |||||||||||||||||
In July 2013, the Company entered into a supply agreement with Sphere 3D. As partial payment under the supply agreement, Sphere 3D issued 769,231 common shares of Sphere 3D to the Company. Sphere 3D's shares are traded on the TSX Venture Exchange and the NASDAQ Global Market. Short-term investments are classified as available-for-sale marketable securities. See note 7 for additional related party disclosure. | |||||||||||||||||
The following summarizes short-term investment (in thousands): | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||
Short-term investment — related party | $ | 481 | $ | 7,333 | $ | — | $ | 7,814 | |||||||||
COMPOSITION_OF_CERTAIN_FINANCI
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
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): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 4,767 | $ | 3,496 | ||||
Work in process | 875 | 857 | ||||||
Finished goods | 9,883 | 6,001 | ||||||
$ | 15,525 | $ | 10,354 | |||||
The following table summarizes property and equipment (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Computer equipment | $ | 2,303 | $ | 2,140 | ||||
Building | 2,115 | — | ||||||
Machinery and equipment | 1,499 | 727 | ||||||
Leasehold improvements | 1,288 | 563 | ||||||
Furniture and fixtures | 148 | 79 | ||||||
7,353 | 3,509 | |||||||
Accumulated depreciation and amortization | (2,649 | ) | (1,914 | ) | ||||
Construction in progress | 1,095 | 419 | ||||||
$ | 5,799 | $ | 2,014 | |||||
Depreciation and amortization expense for property and equipment was $1.0 million and $0.6 million in fiscal 2014 and 2013, respectively. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | |||||||
Intangible Assets Disclosure [Text Block] | ' | |||||||
INTANGIBLE ASSETS | ||||||||
The following table summarizes purchased intangible assets, net (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Developed technology | $ | 23,467 | $ | 1,928 | ||||
Customer contracts and trade names | 3,853 | 3,853 | ||||||
Customer relationships | 1,120 | — | ||||||
28,440 | 5,781 | |||||||
Less: Accumulated amortization | (6,756 | ) | (5,129 | ) | ||||
21,684 | 652 | |||||||
Indefinite lived intangible asset - trade name | 2,100 | — | ||||||
Total intangible assets, net | $ | 23,784 | $ | 652 | ||||
Amortization expense of intangible assets was $1.6 million and $0.7 million during fiscal 2014 and 2013, respectively. Estimated amortization expense for intangible assets is approximately $2.2 million, $2.2 million, $2.0 million, $1.8 million, and $1.8 million in fiscal 2015, 2016, 2017, 2018, and 2019, respectively. |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2014 | |
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 its 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. In March 2014, the credit facility was amended to provide for a $3.0 million sublimit for advances to one of the Company's subsidiaries. Borrowings under the sublimit bear interest at the prime rate (as defined in the credit facility) plus a margin of either 2.00% or 2.25%, depending on the Company's net cash. At June 30, 2014, the interest rates on the credit facility and the sublimit were 4.5% and 5.5%, respectively. | |
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 June 30, 2014, the Company was in compliance with all covenants of the credit facility. | |
At June 30, 2014 and 2013, $5.4 million and $3.5 million, respectively, was outstanding on the credit facility and recorded as long-term debt. At June 30, 2014, an external borrowing capacity of up to $2.6 million remained on the credit facility. No payments are due within the next 12 months. | |
Convertible Notes - Related Party | |
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 additional 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 21, 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 1,649,579 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 Data, became the sole holders of the outstanding Notes. In January 2014, the Company completed the acquisition of Tandberg Data. | |
At June 30, 2014 and 2013, the Notes principal balance was $9.5 million and $13.25 million, respectively, and was recorded as long-term debt — related party. 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 any time 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, $4.90, and in the case of the Additional Notes, $4.50 (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, $4.90 per share, and in the case of the Additional Notes, $4.50, 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, $4.90, and in the case of the Additional Notes, $4.50, 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. Interest expense for the Notes was $0.9 million and $0.4 million in fiscal 2014 and 2013, respectively. | |
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, $6.50, and in the case of the Additional Notes, $5.00, 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, $13.00, and in the case of the Additional Notes, $7.50, for ten days consecutive trading days. | |
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 Notes' Purchasers. In May 2014, the Cyrus Purchasers waived certain covenants under the Notes and the NPA to permit the Company to enter into the Merger Agreement and to borrow up to $10.0 million from Sphere 3D. At June 30, 2014, the Company was in compliance with all covenants of the Notes. | |
Note Payable - Related Party | |
In May 2014, the Company issued a note in the amount of $5.0 million to Sphere 3D, which was amended and restated on September 8, 2014 to increase the principal amount under the note to the greater of the amount actually borrowed from Sphere 3D and $10.0 million. The note is subordinated to certain existing indebtedness and is secured by the Company's inventory and shares of common stock of Sphere 3D owned by the Company. The note bears interest at the prime rate (as defined in the agreement) plus 2% which is payable in kind semi-annually through an increase in the principal balance of the note. At June 30, 2014, the interest rate on the note was 5.25% and the principal balance was $5.0 million, recorded as long-term debt — related party. As of September 23, 2014, the principal balance of the note was $7.8 million. | |
The note is payable in full in one lump sum on May 15, 2018; provided however that immediately prior to the closing of the proposed merger with Sphere 3D, the note is required to be repaid in shares of common stock of Sphere 3D owned by the Company with a value equal to the total borrowings under the note, and to the extent the note is not repaid in full by such transfer of shares, any remaining portion of the note will remain outstanding following the completion of the merger. In addition, following the September 2014 amendment of the note, the Company may not sell any shares of Sphere 3D common stock without the prior consent of Sphere 3D to such sale. |
RELATED_PARTY_Notes
RELATED PARTY (Notes) | 12 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
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 42,644 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 June 30, 2014, the Company had $0.5 million and $0.2 million in accounts receivable and other long-term liabilities, respectively, related to the Sphere 3D supply agreement. The Company recognized $1.0 million in revenue related to the supply agreement during the fiscal year ended June 30, 2014. No related party expense was recognized during the fiscal year ended June 30, 2014. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
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 following is a summary of the changes in the amount of unrecognized tax benefits (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Unrecognized tax benefits at the beginning of the period | $ | 673 | $ | 307 | ||||
Increase related to prior periods | — | 366 | ||||||
Unrecognized tax benefits | $ | 673 | $ | 673 | ||||
At June 30, 2014, there were no unrecognized tax benefits presented as a component of long-term liabilities in the accompanying consolidated balance sheet. At June 30, 2014, there was $0.7 million presented as a reduction of the related deferred tax asset for which there is full valuation allowance, of which $0.5 million will affect the effective tax rate if recognized. However, the portion that would be recognized as an increase to deferred tax assets may result in a corresponding increase in the valuation allowance at the time of recognition resulting in no net effect to the effective tax rate, depending upon the Company's assessment of the likelihood of realization of the tax benefits at the time they are recognized. | ||||||||
The Company believes it is reasonably possible that, within the next twelve months, the amount of unrecognized tax benefits may remain unchanged. 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 on its consolidated balance sheets at fiscal years ended June 30, 2014 and 2013, and recognized no interest and/or penalties in the consolidated statements of operations for the fiscal years ended June 30, 2014 and 2013. | ||||||||
The Company is subject to federal and state taxation in the United States and also in certain foreign tax jurisdictions. Generally, the Company's tax returns for fiscal 2011 and forward are subject to examination by the U. S. federal tax authorities and fiscal 2010 and forward are subject to examination by state tax authorities. | ||||||||
The components of loss before income taxes were as follows (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Domestic | $ | (25,012 | ) | $ | (20,031 | ) | ||
Foreign | (472 | ) | 549 | |||||
$ | (25,484 | ) | $ | (19,482 | ) | |||
The (benefit from) provision for income taxes includes the following (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Current: | ||||||||
Federal | $ | (2,436 | ) | $ | — | |||
State | (174 | ) | 24 | |||||
Foreign | 126 | 141 | ||||||
Total current | (2,484 | ) | 165 | |||||
Deferred: | ||||||||
Foreign | (76 | ) | — | |||||
(Benefit from) provision for income taxes | $ | (2,560 | ) | $ | 165 | |||
A reconciliation of income taxes computed by applying the federal statutory income tax rate of 34.0% to loss before income taxes to the total income tax (benefit) provision reported in the accompanying consolidated statements of operations is as follows (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Federal income tax at statutory rate | $ | (8,665 | ) | $ | (6,624 | ) | ||
Increase in valuation allowance | 7,017 | 6,238 | ||||||
Other comprehensive income | (2,493 | ) | — | |||||
State income taxes, net of federal benefit | (552 | ) | (516 | ) | ||||
Share-based compensation expense | 870 | 926 | ||||||
Permanent differences | 1,263 | 141 | ||||||
(Benefit from) provision for income taxes | $ | (2,560 | ) | $ | 165 | |||
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are shown below. A full valuation allowance has been recorded, as realization of such assets is uncertain. Deferred income taxes are comprised as follows (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforward | $ | 94,702 | $ | 52,430 | ||||
Intangible assets | 6,438 | 1,601 | ||||||
Tax credits | 3,377 | 3,258 | ||||||
Share-based compensation | 1,784 | 1,850 | ||||||
Inventory | 1,352 | 1,362 | ||||||
Warranty and extended warranty | 1,209 | 1,348 | ||||||
Capital loss carryforward | 1,094 | 1,109 | ||||||
Other | 1,241 | 569 | ||||||
Deferred tax asset, gross | 111,197 | 63,527 | ||||||
Valuation allowance for deferred tax assets | (111,197 | ) | (63,527 | ) | ||||
— | — | |||||||
Deferred tax liabilities - other | (182 | ) | — | |||||
Net deferred tax liabilities | $ | (182 | ) | $ | — | |||
At June 30, 2014, the Company has federal and state net operating loss carryforwards of $248.7 million and $112.5 million, respectively. These amounts include share-based compensation deductions of $1.0 million that will be recorded to contributed capital when realized. The remaining federal net operating loss will begin expiring in 2017, unless previously utilized. State net operating loss carryforwards began expiring in 2014, unless previously utilized. | ||||||||
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. | ||||||||
At June 30, 2014, the Company had federal and California research and development tax credit carryforwards totaling $1.2 million and $3.3 million, respectively. The California research credit may be carried forward indefinitely. The federal research credit will begin expiring in 2025 unless previously utilized. In addition, the Company has foreign tax credit carryforwards totaling $0.3 million, which will begin expiring in 2015 unless previously utilized. The Company has federal alternative minimum tax credit carryforwards totaling $0.2 million which can be carried forward indefinitely. |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
EQUITY | |
Authorized Number of Shares of Common Stock | |
On January 17, 2014, the Company increased its authorized shares of common stock from 90.2 million shares to 125.0 million shares. | |
Sale of Common Stock | |
In February 2013, in a private placement transaction, the Company sold an aggregate of 204,081 shares of its common stock at $4.90 per share for gross proceeds of $1.0 million and net proceeds of approximately $0.9 million. | |
Issuance of Common Stock for Conversion of Convertible Notes and Payment of Interest | |
During fiscal 2014, the Company issued an aggregate of 1,649,579 shares of common stock at $6.50 per share in satisfaction of $10.7 million of the Company's outstanding convertible notes. | |
During fiscal 2014, the Company issued an aggregate of 104,285 shares of common stock with a weighted average issuance price of $4.86 per share to the holders of its outstanding convertible notes as payment of interest on such notes. | |
During fiscal 2013, the Company issued an aggregate of 69,698 shares of common stock at $5.75 per share to the holders of its outstanding convertible notes as payment of interest on such notes. | |
Issuance of Common Stock | |
During fiscal 2014, the Company issued 212,771 shares of common stock in conjunction with vested restricted stock units. The restricted stock unit holders surrendered 100,299 restricted stock units to pay for minimum withholding taxes totaling $0.5 million. During fiscal 2013, the Company issued 225,954 shares of common stock in conjunction with vested restricted stock units, and the restricted stock unit holders surrendered 110,401 restricted stock units to pay for minimum withholding taxes totaling $0.7 million | |
Warrants | |
In connection with the Company's March 2011 private placement, the Company has outstanding warrants to purchase up to 758,972 shares of common stock. Each warrant has an exercise price of $8.55 per share of common stock. The warrants are immediately exercisable and expire in March 2016. In connection with the offering and as partial compensation for the placement agent's services, the Company has outstanding to the placement agent a warrant exercisable to purchase up to 51,918 shares of common stock at an exercise price of $8.55 per share; with other terms also substantially the same as the warrants issued to the purchasers. During fiscal 2014 and 2013, the Company issued no shares of common stock related to these outstanding warrants. | |
In connection with the Company's February 2010 private placement, the Company has outstanding warrants to purchase up to 2,007,135 shares of common stock with an exercise price of $8.13 per share. In connection with this transaction, the Company has outstanding a warrant to purchase up to 36,173 shares of common stock at an exercise price of $14.76 per share to the placement agent. The warrants are immediately exercisable and expire in February 2015, and provide for weighted-average anti-dilution protection in the event that the Company issues additional securities at a price less than the then-effective exercise price of the warrants. Reflective of previous anti-dilution adjustments, the number of outstanding warrants to purchase shares of common stock associated with the February 2010 private placement at June 30, 2013 was 1,859,092 shares with a per share strike price of $8.78. As part of the conversion of a portion of the Company's convertible notes and payment of convertible notes interest in shares of common stock, the number of shares of common stock was adjusted from 1,859,092 shares to 2,007,135 shares, net of shares previously issued, and the per share strike price of such warrants was proportionately decreased from $8.78 to $8.13, each as a result of the weighted-average anti-dilution provisions in the warrants. During fiscal 2014 and 2013, the Company issued no shares of common stock related to these outstanding warrants. | |
In connection with the Company's November 2009 public offering, the Company has an outstanding warrant for the purchase of 20,700 shares of the Company's common stock at $13.13 per share to the underwriter of the offering. The warrant is currently exercisable and expires in October 2014. As of June 30, 2014, the warrant had not been exercised. |
EQUITY_INCENTIVE_PLANS
EQUITY INCENTIVE PLANS | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||||
EQUITY INCENTIVE PLANS | ||||||||||||||
The Company has two active stock option plans administered by the Compensation Committee of the Board of Directors. As of June 30, 2014, the Company had reserved an aggregate of 2.4 million shares of common stock for issuance under the 2003 Equity Incentive Plan (“2003 Plan”) and the 2009 Equity Incentive Plan (“2009 Plan”) (collectively, the “Option Plans”). The Option Plans provide for the granting of stock and option awards. Currently, the Company may grant new awards only under the 2009 Plan. The 2009 Plan provides for the granting of restricted stock, stock units, stock options and stock appreciation rights. The Option Plans were approved by the Company's shareholders. The Compensation Committee may also grant awards outside of the Option Plans as an inducement to an employee commencing employment with the Company. As of June 30, 2014, the Company had reserved an aggregate of 34,167 shares of common stock for the issuance of inducement awards. | ||||||||||||||
Option and stock awards granted generally vest over a three-year period. Option awards generally expire after a period not to exceed six years, except in the event of termination, whereupon vested shares must be exercised generally within three months under the 2009 Plan and 2003 Plan, or upon death or disability, in which case an extended six- or twelve-month exercise period is specified. As of June 30, 2014, approximately 0.3 million shares were available for grant in the future under the Option Plans. | ||||||||||||||
Stock Options | ||||||||||||||
The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which uses the weighted-average assumptions noted in the following table: | ||||||||||||||
Fiscal Year | ||||||||||||||
2014 | 2013 | |||||||||||||
Expected volatility | 85 | % | 78.6 | % | ||||||||||
Risk-free interest rate | 2 | % | 0.9 | % | ||||||||||
Dividend yield | — | — | ||||||||||||
Expected term (in years) | 6 | 6 | ||||||||||||
The Company utilizes a volatility study for expected volatility, which takes into account such factors as the overall market conditions, the industry sector, and the expected and realistic pricing of equity instruments in the marketplace and is generally reflective of both historical and implied volatility. The Company applies a forfeiture rate based upon historical pre-vesting option cancellations. The risk-free interest rate is determined based upon a constant maturity U.S. Treasury security with a contractual life approximating the expected term of the option. The expected term of options granted is estimated based on a number of factors, including but not limited to the vesting term of the award, historical employee exercise behavior (for both options that have run their course and outstanding options), the expected volatility of the Company's stock and an employee's average length of service. | ||||||||||||||
Option activity is summarized below (shares and aggregate intrinsic value in thousands): | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term (years) | ||||||||||||||
Options outstanding at June 30, 2012 | 332 | $ | 13.3 | |||||||||||
Granted | 107 | 7.9 | ||||||||||||
Exercised | (7 | ) | 6.6 | |||||||||||
Forfeited and expired | (75 | ) | 18.1 | |||||||||||
Options outstanding at June 30, 2013 | 357 | 10.8 | ||||||||||||
Granted | 45 | 5 | ||||||||||||
Exercised | — | — | ||||||||||||
Forfeited and expired | (125 | ) | 10.01 | |||||||||||
Options outstanding at June 30, 2014 | 277 | $ | 10.23 | 2.68 | $ | 74 | ||||||||
Vested and expected to vest at June 30, 2014 | 271 | $ | 10.32 | 2.74 | $ | 73 | ||||||||
Exercisable at June 30, 2014 | 242 | $ | 10.84 | 2.37 | $ | 66 | ||||||||
The following table summarizes information about stock options (in thousands, except per share amounts): | ||||||||||||||
Fiscal Year | ||||||||||||||
2014 | 2013 | |||||||||||||
Weighted-average grant date fair value per share of options granted with exercise prices: | ||||||||||||||
Equal to fair value | $ | 3.86 | $ | 5.25 | ||||||||||
Intrinsic value of stock options exercised | $ | — | $ | 50 | ||||||||||
Cash received upon exercise of stock options | $ | — | $ | 200 | ||||||||||
Actual tax benefit realized for the tax deductions from stock option exercises | $ | — | $ | — | ||||||||||
Total income tax benefit recognized in the consolidated statements of operations | $ | — | $ | — | ||||||||||
Restricted Stock Units | ||||||||||||||
The following table summarizes information about restricted stock units activity (in thousands, except per share amounts): | ||||||||||||||
Number of | Weighted- | |||||||||||||
Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Outstanding — June 30, 2012 | 810 | $ | 12.55 | |||||||||||
Granted | 89 | 8.15 | ||||||||||||
Vested | (336 | ) | 12.5 | |||||||||||
Forfeited | (34 | ) | 10.3 | |||||||||||
Outstanding — June 30, 2013 | 529 | 11.95 | ||||||||||||
Granted | 1,822 | 3.35 | ||||||||||||
Vested | (313 | ) | 11.63 | |||||||||||
Forfeited | (135 | ) | 9.81 | |||||||||||
Outstanding — June 30, 2014 | 1,903 | $ | 3.92 | |||||||||||
The fair value of each restricted stock unit is the market price of the Company's stock on the date of grant and typically vests over three years. In fiscal 2014 and 2013, the fair value of restricted stock that vested was $3.6 million and $4.2 million, respectively. The Company recognized $3.8 million and $4.2 million in fiscal 2014 and 2013, respectively, for share-based compensation expense related to these awards. | ||||||||||||||
Stock Appreciation Rights | ||||||||||||||
In June 2011, the Company modified options, which had been granted to certain executives during fiscal 2010 to purchase 318,671 shares of the Company's common stock, and reissued the options as SAR awards. No other terms of the awards changed. The purpose of the amendment and reissuance was to provide that, upon exercise, the SAR would be settled in cash or stock, at the discretion of the Company. Based on the SAR settlement provisions, and the Company's intentions, this modification changed these awards from equity-based instruments to liability-based instruments. As such, the fair value of the SAR awards is recalculated at each subsequent reporting period until settlement, and recorded as an adjustment to the liability. The Company uses a Black-Scholes valuation model to determine the fair value and recorded a current liability of $0.2 million and $0.5 million as of June 30, 2014 and 2013, respectively. | ||||||||||||||
As of June 30, 2014, there were 283,000 SAR awards vested with an exercise price of $12.45, a remaining contractual term of 1.8 years, and no intrinsic value. During fiscal 2014, there were 35,671 SAR awards canceled. No SAR awards were exercised during fiscal 2014 and 2013. | ||||||||||||||
2006 Employee Stock Purchase Plan | ||||||||||||||
In February 2007, the Company adopted the 2006 Employee Stock Purchase Plan (“2006 ESPP”). As of June 30, 2014, 88,527 shares of common stock were reserved for issuance under the 2006 ESPP. | ||||||||||||||
Offerings under the 2006 ESPP are for a duration of six months and consist of one purchase interval. The 2006 ESPP limits stock purchases to (i) no more than $25,000 worth of stock in any calendar year and (ii) no more than 500 shares per individual per offering. Shares are purchased at 85% of the lower of the beginning or end of the period price. During fiscal 2014 and 2013, the Company issued 19,667 and 26,718 shares, respectively, and recognized approximately $15,000 and $30,000 as share-based compensation in fiscal 2014 and 2013, respectively. | ||||||||||||||
Share-Based Compensation Expense | ||||||||||||||
The Company recorded the following compensation expense related to its share-based compensation awards (in thousands): | ||||||||||||||
Fiscal Year | ||||||||||||||
2014 | 2013 | |||||||||||||
Cost of product revenue | $ | 99 | $ | 135 | ||||||||||
Sales and marketing | 316 | 1,006 | ||||||||||||
Research and development | 304 | 319 | ||||||||||||
General and administrative | 3,234 | 3,310 | ||||||||||||
$ | 3,953 | $ | 4,770 | |||||||||||
As of June 30, 2014, there was a total of $5.6 million of unrecognized compensation expense related to unvested equity-based compensation awards. The expense associated with non-vested stock and options awards granted prior to June 30, 2014 is expected to be recognized over a weighted-average period of 1.7 years. |
SEGMENT_AND_GEOGRAPHIC_INFORMA
SEGMENT AND GEOGRAPHIC INFORMATION (Notes) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ||||||||
The Company operates in one industry segment providing data storage solutions for small and medium businesses and distributed enterprises. The Company conducts business globally, and its sales and support activities are managed on a geographic basis. Our management reviews financial information presented on a consolidated basis, accompanied by disaggregated information it receives from its internal management system about revenues by geographic region, based on the location from which the customer relationship is managed, for purposes of allocating resources and evaluating financial performance. | ||||||||
Information about Products and Services | ||||||||
The following table summarizes net revenue (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Disk systems | $ | 25,128 | $ | 9,602 | ||||
Service | 17,338 | 19,184 | ||||||
Tape automation systems | 14,200 | 16,784 | ||||||
Tape drives and media | 9,026 | 2,450 | ||||||
$ | 65,692 | $ | 48,020 | |||||
Information about Geographic Areas | ||||||||
The Company markets its products domestically and internationally, with its principal international market being Europe. Revenue is attributed to the location to which the product was shipped. The following table summarizes net revenue by geographic area (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Americas | $ | 24,138 | $ | 24,148 | ||||
Europe, Middle East, Africa | 32,070 | 19,516 | ||||||
Asia Pacific | 9,484 | 4,356 | ||||||
$ | 65,692 | $ | 48,020 | |||||
Sales to customers inside the United States comprised $20.8 million and $23.0 million of Americas net revenues during fiscal 2014 and 2013, respectively. Sales to Germany accounted for $11.3 million and $3.6 million during fiscal 2014 and 2013, respectively. Sales to France accounted for $6.9 million and $5.7 million during fiscal 2014 and 2013, respectively. | ||||||||
The following table presents property and equipment information for geographic areas based on the physical location of the assets (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Europe | $ | 2,348 | $ | 49 | ||||
United States | 2,159 | 1,965 | ||||||
Asia Pacific | 1,292 | — | ||||||
Total | $ | 5,799 | $ | 2,014 | ||||
401K_PLAN
401K PLAN | 12 Months Ended |
Jun. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ' |
NOTE 12 — 401K PLAN | |
The Company maintains an employee savings and retirement plan (the “401(k) Plan”) covering all of the Company's employees. The 401(k) Plan permits but does not require matching contributions by the Company on behalf of participants. The Company does not make matching contributions. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies Disclosure [Text Block] | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Leases | ||||||||
The Company leases various office space, production facilities, and vehicles under non-cancelable operating leases that expire in various years through fiscal year 2020. Future minimum lease payments under these arrangements are as follows (in thousands): | ||||||||
Minimum | ||||||||
Lease | ||||||||
Payments | ||||||||
Fiscal 2015 | $ | 2,690 | ||||||
Fiscal 2016 | 2,096 | |||||||
Fiscal 2017 | 1,541 | |||||||
Fiscal 2018 | 898 | |||||||
Fiscal 2019 | 703 | |||||||
Thereafter | 20 | |||||||
$ | 7,948 | |||||||
Rent expense under non-cancelable operating leases is recognized on a straight-line basis over the respective lease terms and was $2.7 million in both fiscal 2014 and 2013. | ||||||||
Letters of credit | ||||||||
During the ordinary course of business, the Company provides standby letters of credit to third parties as required for certain transactions initiated by the Company. As of June 30, 2014, the Company's had standby letters of credit of $0.7 million that were not recorded on the Company's consolidated balance sheets. | ||||||||
Warranty and Extended Warranty | ||||||||
The Company had $1.1 million and $1.9 million in deferred costs included in other current and non-current assets related to deferred service revenue at June 30, 2014 and 2013, respectively. 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, 2012 | $ | 1,286 | $ | 11,739 | ||||
Settlements made during the period | (530 | ) | (13,411 | ) | ||||
Change in liability for warranties issued during the period | 394 | 12,026 | ||||||
Change in liability for pre-existing warranties | (360 | ) | — | |||||
Liability at June 30, 2013 | 790 | 10,354 | ||||||
Liabilities assumed from acquisition | 950 | 1,725 | ||||||
Settlements made during the period | (305 | ) | (11,889 | ) | ||||
Change in liability for warranties issued during the period | 224 | 10,026 | ||||||
Change in liability for pre-existing warranties | (240 | ) | — | |||||
Liability at June 30, 2014 | $ | 1,419 | $ | 10,216 | ||||
Current liability | $ | 994 | $ | 6,920 | ||||
Non-current liability | 425 | 3,296 | ||||||
Liability at June 30, 2014 | $ | 1,419 | $ | 10,216 | ||||
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 June 30, 2014 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. | ||||||||
Proposed Merger | ||||||||
In May 2014, the Company announced that it had signed an agreement and plan of merger by and among the Company and Sphere 3D. Since the merger was announced, four separate putative shareholder class action lawsuits were filed against the Company, all of its directors, and Sphere 3D in the California Superior Court in and for the County of San Diego. Three of the lawsuits also named Cyrus Capital Partners, the majority shareholder of the Company, as a defendant. On June 25, 2014, the Superior Court entered an order providing for the consolidation of all cases relating to the Company's decision to enter into the merger agreement with Sphere 3D. These cases have been consolidated before a single judge and are referred to as In re Overland Storage Inc., Shareholders Litigation, Lead Case No. 37-2014-00016017-CU-SL-CTL. On July 30, 2014, the plaintiffs filed their consolidated amended complaint. The lawsuit alleges breaches of fiduciary duties and conflicts of interest against the Company's directors relating to the merger process, the terms of the merger agreement, and the consideration to be received by Company shareholders under the terms of the merger agreement. The lawsuit alleges that the other defendants aided and abetted the purported breaches of fiduciary duties by the Company's directors. The relief sought includes an injunction prohibiting the consummation of the proposed merger, rescission of the merger to the extent already implemented or rescissory damages, damages, and an award of attorneys' fees and costs. The Company believes the lawsuit to be without merit and intends to vigorously defend against the action. However, if the plaintiffs are successful in preventing the merger, or are awarded significant damages, it could materially and adversely affect the Company's business, financial condition, liquidity, and the market price of its common stock. | ||||||||
Patent Infringement | ||||||||
In August 2010 and October 2010, the Company filed patent infringement lawsuits in the United States District Court for the Southern District of California and 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 Inc. in connection with the patent infringement lawsuits the Company had filed. | ||||||||
In July 2014, the Company entered into a settlement and cross-license agreement with BDT pursuant to which the Company released all claims it had against BDT. In connection with the settlement, the Company also dismissed its patent infringement claims filed against PivotStor, LLC, a BDT customer based in Irvine, California, which was pending in the United States District Court for the Southern District of California. | ||||||||
In June 2012, the Company filed patent infringement lawsuits in the United States District Court for the Southern District of California against Spectra Logic Corporation (“Spectra Logic”), based in Boulder, Colorado, and Qualstar Corporation (“Qualstar”), based in Simi Valley, California. In the Spectra Logic case, the Company claimed infringement of U.S. Patent Nos. 6,328,766 and 6,353,581. In the Qualstar case, the Company claimed infringement of U.S. Patent No. 6,328,766. | ||||||||
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 January and February 2014, the District Court for the Southern District of California stayed the Company's litigation against Qualstar and Spectra Logic, respectively, pending the results of the inter partes review filed by Spectra Logic. The Company is continuing to pursue its claims against Spectra Logic and Qualstar. | ||||||||
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. | ||||||||
Patent Litigation Funding Agreement | ||||||||
In December 2010, the Company entered into a litigation funding agreement (the “Funding Agreement”) with Special Situations Fund III QP, L.P., Special Situations Private Equity Fund, L.P., Special Situations Technology Fund, L.P., and Special Situations Technology Fund II, L.P. (collectively, the “Special Situations Funds”) pursuant to which the Special Situations Funds agreed to fund certain patent litigation brought by the Company. In May 2014, the Special Situations Funds filed a complaint against the Company in the Supreme Court for New York County, alleging breach of the Funding Agreement. The Special Situations Funds allege that the Company's January 2014 acquisition of Tandberg Data entitled the Special Situation Funds to a $6.0 million payment under the Funding Agreement, and therefore the Company's refusal to make the payment constitutes a breach of the Funding Agreement by the Company. The Special Situations Funds are seeking $6.0 million in contractual damages as well as costs and fees. The Company believes the lawsuit to be without merit and intends to vigorously defend against the action. |
SUBSEQUENT_EVENTS_Notes
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
SUBSEQUENT EVENTS | |
Short-term Investment - Related Party | |
In July 2014, Sphere 3D issued common shares of Sphere 3D to the Company with a value of approximately $500,000 in accordance with the terms of the Sphere 3D supply agreement. These shares are subject to a restriction on their sale until November 19, 2014. In addition, following the September 8, 2014 amendment of the Company's note payable with Sphere 3D, the Company may not sell any shares of Sphere 3D common stock without the prior consent of Sphere 3D to such sale. | |
On September 17, 2014, the Company entered into an agreement to sell shares of Sphere 3D for proceeds of $1.0 million. As of September 17, 2014, the fair market value of the Company's short-term investment after the sale was $4.7 million. |
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
The following is a summary of selected quarterly financial information (in thousands, except per share data): | |||||||||||||||||
Quarter Ended | |||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||
2013 | 2013 | 2014 | 2014 | ||||||||||||||
Net revenue | $ | 10,606 | $ | 10,636 | $ | 20,240 | $ | 24,210 | |||||||||
Gross profit | 3,569 | 3,666 | 6,572 | 6,508 | |||||||||||||
Loss from operations | (4,096 | ) | (4,499 | ) | (6,862 | ) | (8,493 | ) | |||||||||
Loss before income taxes | (4,571 | ) | (4,830 | ) | (7,159 | ) | (8,924 | ) | |||||||||
Net loss | (4,590 | ) | (4,316 | ) | (6,633 | ) | (7,385 | ) | |||||||||
Net loss per share, basic and diluted | $ | (0.75 | ) | $ | (0.60 | ) | $ | (0.44 | ) | $ | (0.42 | ) | |||||
Quarter Ended | |||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||
2012 | 2012 | 2013 | 2013 | ||||||||||||||
Net revenue | $ | 11,711 | $ | 12,599 | $ | 11,642 | $ | 12,068 | |||||||||
Gross profit | 3,943 | 4,597 | 3,852 | 4,408 | |||||||||||||
Loss from operations | (4,663 | ) | (4,112 | ) | (5,138 | ) | (4,962 | ) | |||||||||
Loss before income taxes | (4,814 | ) | (4,205 | ) | (5,082 | ) | (5,381 | ) | |||||||||
Net loss | (4,863 | ) | (4,273 | ) | (5,086 | ) | (5,425 | ) | |||||||||
Net loss per share, basic and diluted | $ | (0.85 | ) | $ | (0.75 | ) | $ | (0.87 | ) | $ | (0.90 | ) |
OPERATIONS_AND_SUMMARY_OF_SIGN1
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 2 (Policies) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Fiscal Period, Policy [Policy Text Block] | ' | ||||||||||||||||
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 year 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. Fiscal 2014 and 2013 each contained 52 weeks. | |||||||||||||||||
Liquidity Disclosure [Policy Text Block] | ' | ||||||||||||||||
The Company has projected that cash on hand, its short-term investment (the common shares of Sphere 3D the Company owns), available borrowings under the Company's credit facility, and other sources of funding 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, (iv) changes in the historical timing of collecting accounts receivable, and/or (v) the Company's inability to liquidate its short-term investment could have a material adverse impact on the Company's ability to access the level of funding necessary to continue its operations at current levels. If any of these events occur or if we are not able to secure additional funding (including from Sphere 3D), the Company may be forced 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, and/or prevent us from consummating the proposed merger with Sphere 3D. The Company may seek debt, equity or equity-based financing (such as convertible debt) when market conditions and the merger agreement with Sphere 3D 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 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. | |||||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including Tandberg Data. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Proposed Merger | |||||||||||||||||
In May 2014, the Company announced that it signed an agreement and plan of merger (the “Merger Agreement”) with Sphere 3D Corporation (“Sphere 3D”). Pursuant to the terms of the merger agreement, upon the consummation of the merger the Company would become a wholly owned subsidiary of Sphere 3D. The merger is expected to close in the second quarter of fiscal 2015. | |||||||||||||||||
At the effective time of the merger, each issued and outstanding share of common stock of the Company will be canceled and automatically converted into the right to receive 0.510594 shares of common stock of Sphere 3D, subject to adjustment in certain circumstances. The Merger Agreement contains customary reciprocal operating covenants as well as customary negative covenants. Additionally, the Company is subject to a “no-shop” restriction on its ability to solicit alternative acquisition proposals, provide information to third parties and engage in discussions with third parties (subject to exceptions in certain limited circumstance). | |||||||||||||||||
The Merger Agreement contains certain termination rights for both the Company and Sphere 3D. The Merger Agreement provides that, upon termination under specified circumstances, the Company would be required to pay Sphere 3D a termination fee of $3.5 million. The Company and Sphere 3D are entitled to seek specific performance in order to enforce one another's obligations under the Merger Agreement. | |||||||||||||||||
The Company's shareholders will be asked to vote on the approval of the Merger Agreement and the Merger at a special shareholders' meeting that will be held on a date to be announced. The closing of the Merger is subject to a condition that the Merger be approved by the affirmative vote of the holders of a majority of all outstanding shares of common stock of the Company. Consummation of the Merger is also subject to certain customary closing conditions. Certain shareholders of the Company holding a majority of the issued and outstanding shares of common stock of the Company have entered into voting agreements with Sphere 3D pursuant to which they have agreed to vote their shares of common stock in favor of the Merger at the special meeting. The Merger is not conditioned upon Sphere 3D obtaining additional financing. | |||||||||||||||||
The Board of Directors of the Company approved the Merger Agreement on May 15, 2014, with Eric Kelly abstaining (in order to avoid any appearance of conflict of interest resulting from his position as a director of Sphere 3D) and Daniel Bordessa abstaining (in order to avoid any appearance of conflict of interest resulting from his position as a nominee of Cyrus Capital Partners, the majority shareholder of the Company, and a holder of certain debt securities of Sphere 3D). | |||||||||||||||||
The terms of the Merger Agreement did not impact the Company's consolidated financial statements as of and for the year ended June 30, 2014. | |||||||||||||||||
Reclassification, Policy [Policy Text Block] | ' | ||||||||||||||||
Reclassifications | |||||||||||||||||
Certain prior year amounts have been reclassified to conform to the fiscal 2014 presentation. | |||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||||||
Management Estimates and Assumptions | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and reported amounts of revenue and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information and actual results could differ from those estimates. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenue from sales of products is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, collectibility is reasonably assured and delivery has occurred. Under this policy, revenue on direct product sales, excluding sales to distributors, is recognized upon shipment of products to customers. These customers are not entitled to any specific right of return or price protection, except for any defective product that may be returned under the Company's warranty policy. | |||||||||||||||||
Generally, title and risk of loss transfer to the customer when the product leaves the Company's dock, except for the Tandberg Data subsidiary where title and risk of loss transfer to the customer when the product arrives at the customer's location. Product sales to distribution customers are subject to certain rights of return, stock rotation privileges and price protection. Because the Company is unable to estimate its exposure for returned product or price adjustments, revenue from shipments to these customers is not recognized until the related products are in turn sold to the ultimate customer by the distributor. For products for which software is more than an incidental component, the Company recognizes revenue in accordance with current authoritative guidance for software revenue recognition. | |||||||||||||||||
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. | |||||||||||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | ' | ||||||||||||||||
Shipping and Handling | |||||||||||||||||
Amounts billed to customers for shipping and handling are included in product revenue, and costs incurred related to shipping and handling are included in cost of product. | |||||||||||||||||
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | ' | ||||||||||||||||
Advertising Costs | |||||||||||||||||
Advertising costs are expensed as incurred. Advertising expenses were $1.0 million and $0.7 million for fiscal years 2014 and 2013, respectively. | |||||||||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | ||||||||||||||||
Research and Development Costs | |||||||||||||||||
Research and development costs are expensed as incurred. Software development costs are expensed until technological feasibility has been established, at which time any additional costs are capitalized. Because the Company believes its current process for developing software is essentially completed concurrently with the establishment of technological feasibility, which occurs upon the completion of a working model, no costs were capitalized during fiscal 2014 and 2013. | |||||||||||||||||
Segment Reporting, Policy [Policy Text Block] | ' | ||||||||||||||||
Segment Information | |||||||||||||||||
The Company reports segment data based on the management approach. The management approach designates the internal reporting that is used by management for making operating and investment decisions and evaluating performance as the source of the Company's reportable segments. The Company uses one measurement of profitability and does not disaggregate its business for internal reporting. The Company operates in one industry segment providing data storage solutions for small and medium businesses and distributed enterprises. The Company discloses information about products and services, geographic areas and major customers. | |||||||||||||||||
Investment, Policy [Policy Text Block] | ' | ||||||||||||||||
Short-term Investment — Related Party | |||||||||||||||||
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 statements of operations. | |||||||||||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | ||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||||||
The Company records accounts receivable at the invoice amount and does not charge interest thereon. The Company estimates its allowance for doubtful accounts based on an assessment of the collectibility of specific accounts and the overall condition of the accounts receivable portfolio. When evaluating the adequacy of the allowance for doubtful accounts, the Company analyzes specific trade and other receivables, historical bad debts, customer credits, customer concentrations, customer credit-worthiness, current economic trends and changes in customers' payment terms and/or patterns. The Company reviews the allowance for doubtful accounts on a quarterly basis and records adjustments as considered necessary. Customer accounts are written-off against the allowance for doubtful accounts when an account is considered uncollectible. | |||||||||||||||||
The following table summarizes the changes in allowance for doubtful accounts (in thousands): | |||||||||||||||||
Fiscal year | Balance at | Charged to | Write-offs, | Balance | |||||||||||||
Beginning of | Expense | Net of | at End | ||||||||||||||
Year | Recoveries | of Year | |||||||||||||||
2014 | $ | 94 | $ | 20 | $ | (83 | ) | $ | 31 | ||||||||
2013 | $ | 222 | $ | 3 | $ | (131 | ) | $ | 94 | ||||||||
Inventory, Policy [Policy Text Block] | ' | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost or market using the first-in-first-out method. The Company assesses the value of its inventories periodically based upon numerous factors including, among others, expected product or material demand, current market conditions, technological obsolescence, current cost and net realizable value. If necessary, the Company writes down its inventory for obsolete or unmarketable inventory by an amount equal to the difference between the cost of the inventory and the estimated market value. | |||||||||||||||||
Property and Equipment, Policy [Policy Text Block] | ' | ||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are recorded at cost. Depreciation expense is computed using the straight-line method. Leasehold improvements are depreciated over the shorter of the remaining estimated useful life of the asset or the term of the lease. | |||||||||||||||||
Estimated useful lives are as follows: | |||||||||||||||||
Building | 40 years | ||||||||||||||||
Machinery and equipment | 3-5 years | ||||||||||||||||
Furniture and fixtures | 5 years | ||||||||||||||||
Computer equipment and software | 1-5 years | ||||||||||||||||
Expenditures for normal maintenance and repair are charged to expense as incurred, and improvements are capitalized. Upon the sale or retirement of property or equipment, the asset cost and related accumulated depreciation are removed from the respective accounts and any gain or loss is included in the results of operations. | |||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||||||||||
Long-lived Assets | |||||||||||||||||
The Company evaluates the recoverability of long-lived assets, including property and equipment. The Company tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company's consideration includes, but is not limited to, the following events or changes as potential indicators of non-recoverability: | |||||||||||||||||
• | Significant under-performance relative to historical or projected future operating results. | ||||||||||||||||
• | Significant changes in the manner of use of the assets or the strategy for the Company's overall business. | ||||||||||||||||
• | Significant decrease in the market value of the assets. | ||||||||||||||||
• | Significant negative industry or economic trends. | ||||||||||||||||
When the carrying value is not considered recoverable, an impairment loss for the amount by which the carrying value of a long-lived asset exceeds its fair value is recognized, with an offsetting reduction in the carrying value of the related asset. If the Company's future results are significantly different from its forecast, the Company may be required to further evaluate its long-lived assets for recoverability and such analysis could result in an impairment charge in a future period. In both fiscal 2014 and 2013, there were no impairments recognized. | |||||||||||||||||
Goodwill and Purchased Intangible Assets, Policy [Policy Text Block] | ' | ||||||||||||||||
Goodwill and Purchased Intangible Assets | |||||||||||||||||
Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. The carrying amount of goodwill is tested for impairment on an annual basis at June 30, or more frequently if the Company believes indicators of impairment exist. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. | |||||||||||||||||
Purchased intangible assets are amortized on a straight-line basis over their economic lives of three to ten years for developed technology, six years for customer contracts and trade names, and 15 years for customer relationships as the Company believes this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. When the carrying value is not considered recoverable, an impairment loss for the amount by which the carrying value of an intangible asset exceeds its fair value is recognized, with an offsetting reduction in the carrying value of the related intangible asset. If the Company's future results are significantly different from its forecast, the Company may be required to further evaluate its intangible assets for recoverability and such analysis could result in an impairment charge in a future period. | |||||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||||||||||||||||
Foreign Currency | |||||||||||||||||
The financial statements of foreign subsidiaries, for which the functional currency is the local currency, are translated into U.S. dollars using the exchange rate at the balance sheet date for assets and liabilities and a weighted-average exchange rate during the year for revenue, expenses, gains and losses. Translation adjustments are recorded as other comprehensive income (loss) within shareholders' equity. Gains or losses from foreign currency transactions are recognized in the consolidated statements of operations. Such transactions resulted in a loss of $353,000 and $19,000 for fiscal 2014 and 2013, respectively. | |||||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
The Company provides for income taxes utilizing the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when a judgment is made that it is considered more likely than not that a tax benefit will not be realized. A decision to record a valuation allowance results in an increase in income tax expense or a decrease in income tax benefit. If the valuation allowance is released in a future period, income tax expense will be reduced accordingly. | |||||||||||||||||
The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The impact of an uncertain income tax position is recognized 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. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. | |||||||||||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | ||||||||||||||||
Comprehensive Loss | |||||||||||||||||
Comprehensive loss and its components encompasses all changes in equity other than those with stockholders, includes net loss, unrealized gains on related party investment, and foreign currency translation adjustments, and are disclosed in a separate consolidated statement of comprehensive loss. | |||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||||||||||
Concentration of Credit Risks | |||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable, which are generally not collateralized. To reduce credit risk, the Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses for estimated bad debt losses. | |||||||||||||||||
Earnings Per Share, Policy [Policy 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. Dilutive common stock equivalents are comprised of awards and options granted under the Company's stock option plans, employee stock purchase plan (“ESPP”) share purchase rights, common stock purchase warrants, and convertible notes. 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): | |||||||||||||||||
Fiscal Year | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Restricted stock not yet vested and released | 1,903 | 529 | |||||||||||||||
Options outstanding and ESPP share purchase rights | 278 | 332 | |||||||||||||||
Common stock purchase warrants | 2,875 | 2,726 | |||||||||||||||
Convertible notes | 1,789 | 2,038 | |||||||||||||||
Convertible notes interest | 568 | 795 | |||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||||||||
Share-based Compensation | |||||||||||||||||
The Company accounts for share-based awards, and similar equity instruments, granted to employees and non-employee directors under the fair value method. Share-based compensation award types include stock options, restricted stock, and stock appreciation rights (“SAR”) awards. The Company uses the Black-Scholes option pricing model to estimate the fair value of its option awards on the measurement date, which generally is the date of grant. The cost is recognized over the requisite service period (usually the vesting period) for the estimated number of instruments for which service is expected to be rendered. | |||||||||||||||||
Compensation expense associated with options with graded vesting is recognized pursuant to an accelerated method. Compensation expense associated with restricted stock is recognized over the vesting period using the straight-line method. The Company has not recognized, and does not expect to recognize in the near future, any tax benefit related to share-based compensation cost as a result of the full valuation allowance of the Company's net deferred tax assets and its net operating loss carryforwards. | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
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. Short-term investments are measured at fair value using Level 1 inputs as the stock is traded on the TSX Venture Exchange and the NASDAQ Global Market. The carrying amount of the credit facilities borrowings approximate their fair value as the interest rate of the credit facilities are substantially comparable to rates offered for similar debt instruments. At June 30, 2014, the fair value of related party long-term debt was estimated to be $12.0 million, using an estimated interest rate of 12%, and was classified within Level 3 of the fair value hierarchy. At June 30, 2013, the fair value of related party long-term debt was estimated to be $11.5 million, using an estimated interest rate of 12%, and was classified within Level 3 of the fair value hierarchy. At June 30, 2014 and 2013, the related party debt had a carrying value of $14.5 million and $13.25 million, respectively. | |||||||||||||||||
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. | ||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||
In July 2013, the FASB (“Financial Accounting Standards Board”), 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 affected presentation only and, therefore, did not have a material impact on the Company's consolidated financial results. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The impact on our financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-09 has not yet been determined. | |||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern. ASU 2014-15 provides that in connection with preparing financial statements for each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). ASU 2014-15 will be effective for the annual reporting period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The impact on our financial condition, results of operations and cash flows as a result of the adoption of ASU 2014-15 has not yet been determined. |
OPERATIONS_AND_SUMMARY_OF_SIGN2
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | ' | ||||||||||||||||
The following table summarizes the changes in allowance for doubtful accounts (in thousands): | |||||||||||||||||
Fiscal year | Balance at | Charged to | Write-offs, | Balance | |||||||||||||
Beginning of | Expense | Net of | at End | ||||||||||||||
Year | Recoveries | of Year | |||||||||||||||
2014 | $ | 94 | $ | 20 | $ | (83 | ) | $ | 31 | ||||||||
2013 | $ | 222 | $ | 3 | $ | (131 | ) | $ | 94 | ||||||||
Property and equipment, useful life [Table Text Block] | ' | ||||||||||||||||
Leasehold improvements are depreciated over the shorter of the remaining estimated useful life of the asset or the term of the lease. | |||||||||||||||||
Estimated useful lives are as follows: | |||||||||||||||||
Building | 40 years | ||||||||||||||||
Machinery and equipment | 3-5 years | ||||||||||||||||
Furniture and fixtures | 5 years | ||||||||||||||||
Computer equipment and software | 1-5 years | ||||||||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||||||||||
The following table indicates the percentage of net revenue and accounts receivable in excess of 10% with any single customer: | |||||||||||||||||
Percentage of | |||||||||||||||||
Fiscal Year Ended: | Net Revenue | Trade Accounts Receivable | |||||||||||||||
June 30, 2014 | Customer A | 10.6 | % | 6.8 | % | ||||||||||||
Customer B | 7.2 | % | 13.1 | % | |||||||||||||
June 30, 2013 | Customer A | 12.2 | % | 14.5 | % | ||||||||||||
Customer B | 12.2 | % | 16.6 | % | |||||||||||||
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): | |||||||||||||||||
Fiscal Year | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Restricted stock not yet vested and released | 1,903 | 529 | |||||||||||||||
Options outstanding and ESPP share purchase rights | 278 | 332 | |||||||||||||||
Common stock purchase warrants | 2,875 | 2,726 | |||||||||||||||
Convertible notes | 1,789 | 2,038 | |||||||||||||||
Convertible notes interest | 568 | 795 | |||||||||||||||
BUSINESS_COMBINATION_Tables
BUSINESS COMBINATION (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||||||
A summary of the preliminary estimated fair values of the assets acquired and liabilities assumed as of the closing date (in thousands): | |||||||||
Cash and cash equivalents | $ | 1,715 | |||||||
Restricted cash | 400 | ||||||||
Accounts receivable | 7,571 | ||||||||
Inventories | 6,416 | ||||||||
Property and equipment | 3,763 | ||||||||
Identifiable intangible assets | 24,260 | ||||||||
Other assets | 1,959 | ||||||||
Total identifiable assets acquired | 46,084 | ||||||||
Current liabilities | (13,796 | ) | |||||||
Other liabilities | (2,293 | ) | |||||||
Total identifiable liabilities assumed | (16,089 | ) | |||||||
Net identifiable assets acquired | 29,995 | ||||||||
Goodwill | 19,044 | ||||||||
Net assets acquired | $ | 49,039 | |||||||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | ' | ||||||||
The identified intangible assets as of the date of acquisition consisted of the following (in thousands): | |||||||||
Estimated | Weighted- | ||||||||
Fair Value | Average | ||||||||
Useful Life | |||||||||
(years) | |||||||||
Developed technology | $ | 21,040 | 9.2 | ||||||
Customer relationships | 1,120 | 15 | |||||||
Total finite lived intangible assets | 22,160 | 8.8 | |||||||
Indefinite lived intangible asset — trade name | 2,100 | n/a | |||||||
Total identified intangible assets | $ | 24,260 | |||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||
The unaudited pro forma combined financial information is presented for informational purposes only, is not intended to represent or be indicative of the results of operations of the Company that would have been reported had the acquisition occurred on July 1, 2012, and should not be taken as representative of future consolidated results of operations of the combined company (in thousands): | |||||||||
Fiscal Year | |||||||||
2014 | 2013 | ||||||||
Net revenue | $ | 99,588 | $ | 109,671 | |||||
Net loss | $ | (30,634 | ) | $ | (28,524 | ) | |||
Net loss per share | $ | (1.82 | ) | $ | (1.90 | ) |
SHORTTERM_INVESTMENT_RELATED_P1
SHORT-TERM INVESTMENT - RELATED PARTY (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Available-for-sale Securities [Table Text Block] | ' | ||||||||||||||||
The following summarizes short-term investment (in thousands): | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||
Short-term investment — related party | $ | 481 | $ | 7,333 | $ | — | $ | 7,814 | |||||||||
COMPOSITION_OF_CERTAIN_FINANCI1
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
The following table summarizes inventories (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 4,767 | $ | 3,496 | ||||
Work in process | 875 | 857 | ||||||
Finished goods | 9,883 | 6,001 | ||||||
$ | 15,525 | $ | 10,354 | |||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
The following table summarizes property and equipment (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Computer equipment | $ | 2,303 | $ | 2,140 | ||||
Building | 2,115 | — | ||||||
Machinery and equipment | 1,499 | 727 | ||||||
Leasehold improvements | 1,288 | 563 | ||||||
Furniture and fixtures | 148 | 79 | ||||||
7,353 | 3,509 | |||||||
Accumulated depreciation and amortization | (2,649 | ) | (1,914 | ) | ||||
Construction in progress | 1,095 | 419 | ||||||
$ | 5,799 | $ | 2,014 | |||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | |||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||
The following table summarizes purchased intangible assets, net (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Developed technology | $ | 23,467 | $ | 1,928 | ||||
Customer contracts and trade names | 3,853 | 3,853 | ||||||
Customer relationships | 1,120 | — | ||||||
28,440 | 5,781 | |||||||
Less: Accumulated amortization | (6,756 | ) | (5,129 | ) | ||||
21,684 | 652 | |||||||
Indefinite lived intangible asset - trade name | 2,100 | — | ||||||
Total intangible assets, net | $ | 23,784 | $ | 652 | ||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | ' | |||||||
The following is a summary of the changes in the amount of unrecognized tax benefits (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Unrecognized tax benefits at the beginning of the period | $ | 673 | $ | 307 | ||||
Increase related to prior periods | — | 366 | ||||||
Unrecognized tax benefits | $ | 673 | $ | 673 | ||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | |||||||
The components of loss before income taxes were as follows (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Domestic | $ | (25,012 | ) | $ | (20,031 | ) | ||
Foreign | (472 | ) | 549 | |||||
$ | (25,484 | ) | $ | (19,482 | ) | |||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||
The (benefit from) provision for income taxes includes the following (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Current: | ||||||||
Federal | $ | (2,436 | ) | $ | — | |||
State | (174 | ) | 24 | |||||
Foreign | 126 | 141 | ||||||
Total current | (2,484 | ) | 165 | |||||
Deferred: | ||||||||
Foreign | (76 | ) | — | |||||
(Benefit from) provision for income taxes | $ | (2,560 | ) | $ | 165 | |||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||
A reconciliation of income taxes computed by applying the federal statutory income tax rate of 34.0% to loss before income taxes to the total income tax (benefit) provision reported in the accompanying consolidated statements of operations is as follows (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Federal income tax at statutory rate | $ | (8,665 | ) | $ | (6,624 | ) | ||
Increase in valuation allowance | 7,017 | 6,238 | ||||||
Other comprehensive income | (2,493 | ) | — | |||||
State income taxes, net of federal benefit | (552 | ) | (516 | ) | ||||
Share-based compensation expense | 870 | 926 | ||||||
Permanent differences | 1,263 | 141 | ||||||
(Benefit from) provision for income taxes | $ | (2,560 | ) | $ | 165 | |||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||
Deferred income taxes are comprised as follows (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforward | $ | 94,702 | $ | 52,430 | ||||
Intangible assets | 6,438 | 1,601 | ||||||
Tax credits | 3,377 | 3,258 | ||||||
Share-based compensation | 1,784 | 1,850 | ||||||
Inventory | 1,352 | 1,362 | ||||||
Warranty and extended warranty | 1,209 | 1,348 | ||||||
Capital loss carryforward | 1,094 | 1,109 | ||||||
Other | 1,241 | 569 | ||||||
Deferred tax asset, gross | 111,197 | 63,527 | ||||||
Valuation allowance for deferred tax assets | (111,197 | ) | (63,527 | ) | ||||
— | — | |||||||
Deferred tax liabilities - other | (182 | ) | — | |||||
Net deferred tax liabilities | $ | (182 | ) | $ | — | |||
EQUITY_INCENTIVE_PLANS_Tables
EQUITY INCENTIVE PLANS (Tables) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||
The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which uses the weighted-average assumptions noted in the following table: | ||||||||||||||
Fiscal Year | ||||||||||||||
2014 | 2013 | |||||||||||||
Expected volatility | 85 | % | 78.6 | % | ||||||||||
Risk-free interest rate | 2 | % | 0.9 | % | ||||||||||
Dividend yield | — | — | ||||||||||||
Expected term (in years) | 6 | 6 | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||
Option activity is summarized below (shares and aggregate intrinsic value in thousands): | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term (years) | ||||||||||||||
Options outstanding at June 30, 2012 | 332 | $ | 13.3 | |||||||||||
Granted | 107 | 7.9 | ||||||||||||
Exercised | (7 | ) | 6.6 | |||||||||||
Forfeited and expired | (75 | ) | 18.1 | |||||||||||
Options outstanding at June 30, 2013 | 357 | 10.8 | ||||||||||||
Granted | 45 | 5 | ||||||||||||
Exercised | — | — | ||||||||||||
Forfeited and expired | (125 | ) | 10.01 | |||||||||||
Options outstanding at June 30, 2014 | 277 | $ | 10.23 | 2.68 | $ | 74 | ||||||||
Vested and expected to vest at June 30, 2014 | 271 | $ | 10.32 | 2.74 | $ | 73 | ||||||||
Exercisable at June 30, 2014 | 242 | $ | 10.84 | 2.37 | $ | 66 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | ' | |||||||||||||
The following table summarizes information about stock options (in thousands, except per share amounts): | ||||||||||||||
Fiscal Year | ||||||||||||||
2014 | 2013 | |||||||||||||
Weighted-average grant date fair value per share of options granted with exercise prices: | ||||||||||||||
Equal to fair value | $ | 3.86 | $ | 5.25 | ||||||||||
Intrinsic value of stock options exercised | $ | — | $ | 50 | ||||||||||
Cash received upon exercise of stock options | $ | — | $ | 200 | ||||||||||
Actual tax benefit realized for the tax deductions from stock option exercises | $ | — | $ | — | ||||||||||
Total income tax benefit recognized in the consolidated statements of operations | $ | — | $ | — | ||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | |||||||||||||
The following table summarizes information about restricted stock units activity (in thousands, except per share amounts): | ||||||||||||||
Number of | Weighted- | |||||||||||||
Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Outstanding — June 30, 2012 | 810 | $ | 12.55 | |||||||||||
Granted | 89 | 8.15 | ||||||||||||
Vested | (336 | ) | 12.5 | |||||||||||
Forfeited | (34 | ) | 10.3 | |||||||||||
Outstanding — June 30, 2013 | 529 | 11.95 | ||||||||||||
Granted | 1,822 | 3.35 | ||||||||||||
Vested | (313 | ) | 11.63 | |||||||||||
Forfeited | (135 | ) | 9.81 | |||||||||||
Outstanding — June 30, 2014 | 1,903 | $ | 3.92 | |||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | |||||||||||||
The Company recorded the following compensation expense related to its share-based compensation awards (in thousands): | ||||||||||||||
Fiscal Year | ||||||||||||||
2014 | 2013 | |||||||||||||
Cost of product revenue | $ | 99 | $ | 135 | ||||||||||
Sales and marketing | 316 | 1,006 | ||||||||||||
Research and development | 304 | 319 | ||||||||||||
General and administrative | 3,234 | 3,310 | ||||||||||||
$ | 3,953 | $ | 4,770 | |||||||||||
SEGMENT_AND_GEOGRAPHIC_INFORMA1
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Revenue from External Customers by Products and Services [Table Text Block] | ' | |||||||
The following table summarizes net revenue (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Disk systems | $ | 25,128 | $ | 9,602 | ||||
Service | 17,338 | 19,184 | ||||||
Tape automation systems | 14,200 | 16,784 | ||||||
Tape drives and media | 9,026 | 2,450 | ||||||
$ | 65,692 | $ | 48,020 | |||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | |||||||
The following table summarizes net revenue by geographic area (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Americas | $ | 24,138 | $ | 24,148 | ||||
Europe, Middle East, Africa | 32,070 | 19,516 | ||||||
Asia Pacific | 9,484 | 4,356 | ||||||
$ | 65,692 | $ | 48,020 | |||||
Long-lived Assets by Geographic Areas [Table Text Block] | ' | |||||||
The following table presents property and equipment information for geographic areas based on the physical location of the assets (in thousands): | ||||||||
Fiscal Year | ||||||||
2014 | 2013 | |||||||
Europe | $ | 2,348 | $ | 49 | ||||
United States | 2,159 | 1,965 | ||||||
Asia Pacific | 1,292 | — | ||||||
Total | $ | 5,799 | $ | 2,014 | ||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | |||||||
Future minimum lease payments under these arrangements are as follows (in thousands): | ||||||||
Minimum | ||||||||
Lease | ||||||||
Payments | ||||||||
Fiscal 2015 | $ | 2,690 | ||||||
Fiscal 2016 | 2,096 | |||||||
Fiscal 2017 | 1,541 | |||||||
Fiscal 2018 | 898 | |||||||
Fiscal 2019 | 703 | |||||||
Thereafter | 20 | |||||||
$ | 7,948 | |||||||
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, 2012 | $ | 1,286 | $ | 11,739 | ||||
Settlements made during the period | (530 | ) | (13,411 | ) | ||||
Change in liability for warranties issued during the period | 394 | 12,026 | ||||||
Change in liability for pre-existing warranties | (360 | ) | — | |||||
Liability at June 30, 2013 | 790 | 10,354 | ||||||
Liabilities assumed from acquisition | 950 | 1,725 | ||||||
Settlements made during the period | (305 | ) | (11,889 | ) | ||||
Change in liability for warranties issued during the period | 224 | 10,026 | ||||||
Change in liability for pre-existing warranties | (240 | ) | — | |||||
Liability at June 30, 2014 | $ | 1,419 | $ | 10,216 | ||||
Current liability | $ | 994 | $ | 6,920 | ||||
Non-current liability | 425 | 3,296 | ||||||
Liability at June 30, 2014 | $ | 1,419 | $ | 10,216 | ||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
The following is a summary of selected quarterly financial information (in thousands, except per share data): | |||||||||||||||||
Quarter Ended | |||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||
2013 | 2013 | 2014 | 2014 | ||||||||||||||
Net revenue | $ | 10,606 | $ | 10,636 | $ | 20,240 | $ | 24,210 | |||||||||
Gross profit | 3,569 | 3,666 | 6,572 | 6,508 | |||||||||||||
Loss from operations | (4,096 | ) | (4,499 | ) | (6,862 | ) | (8,493 | ) | |||||||||
Loss before income taxes | (4,571 | ) | (4,830 | ) | (7,159 | ) | (8,924 | ) | |||||||||
Net loss | (4,590 | ) | (4,316 | ) | (6,633 | ) | (7,385 | ) | |||||||||
Net loss per share, basic and diluted | $ | (0.75 | ) | $ | (0.60 | ) | $ | (0.44 | ) | $ | (0.42 | ) | |||||
Quarter Ended | |||||||||||||||||
September 30, | December 31, | March 31, | June 30, | ||||||||||||||
2012 | 2012 | 2013 | 2013 | ||||||||||||||
Net revenue | $ | 11,711 | $ | 12,599 | $ | 11,642 | $ | 12,068 | |||||||||
Gross profit | 3,943 | 4,597 | 3,852 | 4,408 | |||||||||||||
Loss from operations | (4,663 | ) | (4,112 | ) | (5,138 | ) | (4,962 | ) | |||||||||
Loss before income taxes | (4,814 | ) | (4,205 | ) | (5,082 | ) | (5,381 | ) | |||||||||
Net loss | (4,863 | ) | (4,273 | ) | (5,086 | ) | (5,425 | ) | |||||||||
Net loss per share, basic and diluted | $ | (0.85 | ) | $ | (0.75 | ) | $ | (0.87 | ) | $ | (0.90 | ) |
OPERATIONS_AND_SUMMARY_OF_SIGN3
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Textuals (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Apr. 09, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Accumulated deficit | ' | ($155,294,000) | ($132,370,000) |
Net loss | ' | -22,924,000 | -19,647,000 |
Stockholders' Equity, Reverse Stock Split | 'one-for-five reverse split | ' | ' |
Advertising expense | ' | 1,000,000 | 700,000 |
Capitalized software development costs | ' | 0 | 0 |
Number of Operating Segments | ' | 1 | ' |
Asset impairment charges | ' | 0 | 0 |
Foreign currency transaction loss | ' | ($353,000) | ($19,000) |
OPERATIONS_AND_SUMMARY_OF_SIGN4
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Proposed merger (Details) (Sphere 3D, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Sphere 3D | ' |
Related Party Transaction [Line Items] | ' |
Merger consideration, conversion ratio | 0.510594 |
Merger termination fee | $3.50 |
OPERATIONS_AND_SUMMARY_OF_SIGN5
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | ' |
Allowance for doubtful accounts, beginning | $94 | $222 |
Charged to expense | 20 | 3 |
Write-offs net of recoveries | -83 | -131 |
Allowance for doubtful accounts, ending | $31 | $94 |
OPERATIONS_AND_SUMMARY_OF_SIGN6
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property and equipment useful lives (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Leasehold Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Leasehold improvements, useful life | 'shorter of the remaining estimated useful life of the asset or the term of the lease |
Building | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '40 years |
Machinery and Equipment | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '3 years |
Machinery and Equipment | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '5 years |
Furniture and Fixtures | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '5 years |
Computer Equipment and Software | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '1 year |
Computer Equipment and Software | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '5 years |
OPERATIONS_AND_SUMMARY_OF_SIGN7
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Goodwill and purchased intangible assets (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Developed technology | Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '3 years |
Developed technology | Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Customer contracts and trade names | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '6 years |
Customer Relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '15 years |
OPERATIONS_AND_SUMMARY_OF_SIGN8
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Concentration of credit risk - largest customer (Details) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 10.00% | ' |
Customer A | Net revenue | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 10.60% | 12.20% |
Customer A | Trade accounts receivable | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 6.80% | 14.50% |
Customer B | Net revenue | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 7.20% | 12.20% |
Customer B | Trade accounts receivable | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 13.10% | 16.60% |
OPERATIONS_AND_SUMMARY_OF_SIGN9
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Net loss per share (Details) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Restricted stock not yet vested and released | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive common stock equivalents | 1,903 | 529 |
Options outstanding and ESPP share purchase rights | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive common stock equivalents | 278 | 332 |
Common stock purchase warrants | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive common stock equivalents | 2,875 | 2,726 |
Convertible notes | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive common stock equivalents | 1,789 | 2,038 |
Convertible notes interest | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive common stock equivalents | 568 | 795 |
Recovered_Sheet1
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fair Value of Financial Instruments (Details) (Fair Value, Inputs, Level 3 [Member], USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Convertible notes, fair value disclosures | $12 | $11.50 |
Fair value, interest rate | 12.00% | 12.00% |
Long-term debt - related party | $14.50 | $13.25 |
BUSINESS_COMBINATION_Details
BUSINESS COMBINATION (Details) (USD $) | 0 Months Ended | 12 Months Ended |
Jan. 21, 2014 | Jun. 30, 2014 | |
Business Combinations [Abstract] | ' | ' |
Stock Issued During Period, Value, Acquisitions | $49,000,000 | ' |
Stock Issued During Period, Shares, Acquisitions | 9,430,526 | ' |
Business Acquisition, Share Price | $5.20 | ' |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | ' | 0 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | ' | 400,000 |
Business Combination, Revenue of Acquiree since Acquisition Date, Actual | ' | 25,500,000 |
Business Combination, Acquisition Related Costs | ' | $2,100,000 |
BUSINESS_COMBINATION_Purchase_
BUSINESS COMBINATION Purchase Consideration (Details) (USD $) | Jan. 21, 2014 |
In Thousands, unless otherwise specified | |
Business Acquisition [Line Items] | ' |
Cash and Cash Equivalents | $1,715 |
Restricted Cash | 400 |
Accounts Receivables | 7,571 |
Inventories | 6,416 |
Property and Equipment | 3,763 |
Identifiable Intangible Assets | 24,260 |
Other assets | 1,959 |
Total identifiable assets acquired | 46,084 |
Current Liabilities | -13,796 |
Other liabilities | -2,293 |
Total identifiable liabilities assumed | -16,089 |
Net identifiable assets acquired | 29,995 |
Goodwill | 19,044 |
Net assets acquired | $49,039 |
BUSINESS_COMBINATION_Identifia
BUSINESS COMBINATION Identifiable intangible assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jan. 21, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived Intangible Assets Acquired | $22,160 | ' |
Weighted Average Useful Life (years) | '8 years 9 months 20 days | ' |
Total identifiable intangible assets | ' | 24,260 |
Trade Names | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Indefinite lived intangible asset - trade name | 2,100 | ' |
Developed technology | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived Intangible Assets Acquired | 21,040 | ' |
Weighted Average Useful Life (years) | '9 years 2 months 15 days | ' |
Customer relationships | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived Intangible Assets Acquired | $1,120 | ' |
Weighted Average Useful Life (years) | '15 years | ' |
BUSINESS_COMBINATION_Proforma_
BUSINESS COMBINATION Proforma (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Business Combinations [Abstract] | ' | ' |
Pro Forma Net Revenue | $99,588 | $109,671 |
Pro Forma Net Loss | ($30,634) | ($28,524) |
Pro Forma Net Loss Per Share | ($1.82) | ($1.90) |
SHORTTERM_INVESTMENT_RELATED_P2
SHORT-TERM INVESTMENT - RELATED PARTY (Details) (Sphere 3D, USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 |
Sphere 3D | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Short-term investment, Shares | 769,231 |
Amortized cost basis | $481 |
Gross unrealized gain | 7,333 |
Gross unrealized loss | 0 |
Estimated fair value | $7,814 |
COMPOSITION_OF_CERTAIN_FINANCI2
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Inventory (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract] | ' | ' |
Raw materials | $4,767 | $3,496 |
Work in process | 875 | 857 |
Finished goods | 9,883 | 6,001 |
Inventory | $15,525 | $10,354 |
COMPOSITION_OF_CERTAIN_FINANCI3
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Property and equipment, net (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS [Abstract] | ' | ' |
Computer equipment | $2,303,000 | $2,140,000 |
Building | 2,115,000 | 0 |
Machinery and equipment | 1,499,000 | 727,000 |
Leasehold improvements | 1,288,000 | 563,000 |
Furniture and fixtures | 148,000 | 79,000 |
Property and equipment, gross | 7,353,000 | 3,509,000 |
Accumulated depreciation and amortization | -2,649,000 | -1,914,000 |
Construction in progress | 1,095,000 | 419,000 |
Property and equipment, net | 5,799,000 | 2,014,000 |
Depreciation, Depletion and Amortization [Abstract] | ' | ' |
Depreciation and amortization | $1,000,000 | $600,000 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets | $28,440 | $5,781 |
Less: accumulated amortization | -6,756 | -5,129 |
Finite-Lived Intangible Assets, Net | 21,684 | 652 |
Indefinite lived intangible asset - trade name | 2,100 | 0 |
Intangible assets, net | 23,784 | 652 |
Developed technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets | 23,467 | 1,928 |
Customer contracts and trade names | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets | 3,853 | 3,853 |
Customer relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets | $1,120 | $0 |
INTANGIBLE_ASSETS_Textuals_Det
INTANGIBLE ASSETS Textuals (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
Amortization Expense, 2015 | $2.20 | ' |
Amortization Expense, 2016 | 2.2 | ' |
Amortization Expense, 2017 | 2 | ' |
Amortization Expense, 2018 | 1.8 | ' |
Amortization Expense, 2019 | 1.8 | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Amortization of Intangible Assets | $1.60 | $0.70 |
DEBT_Credit_Facility_Details
DEBT Credit Facility (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Credit Facility [Member] | ' | ' |
Credit Facility [Line Items] | ' | ' |
Credit facility, maximum borrowing capacity | $8,000,000 | ' |
Credit facility not secured by percentage of foreign subsidiaries stock | 65.00% | ' |
Interest rate description | 'prime rate (as defined in the credit facility) plus a margin | ' |
Debt Instrument, Maturity Date | 7-Aug-15 | ' |
Interest rate at period end | 4.50% | ' |
Credit facility, covenant compliance | 'was in compliance | ' |
Credit facility, amount outstanding | 5,400,000 | 3,500,000 |
Credit facility, remaining borrowing capacity | 2,600,000 | ' |
Credit facility, current maturities | 0 | ' |
Credit Facility [Member] | Minimum [Member] | ' | ' |
Credit Facility [Line Items] | ' | ' |
Basis spread on variable rate | 1.00% | ' |
Credit Facility [Member] | Maximum [Member] | ' | ' |
Credit Facility [Line Items] | ' | ' |
Basis spread on variable rate | 1.25% | ' |
Line of Credit [Member] | ' | ' |
Credit Facility [Line Items] | ' | ' |
Line of credit for letters of credit and other | 750,000 | ' |
Foreign Line of Credit [Member] | ' | ' |
Credit Facility [Line Items] | ' | ' |
Interest rate description | 'prime rate (as defined in the credit facility) plus a margin | ' |
Credit facility sub-limit for foreign subsidiary | $3,000,000 | ' |
Interest rate at period end | 5.50% | ' |
Foreign Line of Credit [Member] | Minimum [Member] | ' | ' |
Credit Facility [Line Items] | ' | ' |
Basis spread on variable rate | 2.00% | ' |
Foreign Line of Credit [Member] | Maximum [Member] | ' | ' |
Credit Facility [Line Items] | ' | ' |
Basis spread on variable rate | 2.25% | ' |
DEBT_Convertible_Notes_Related
DEBT Convertible Notes - Related Party (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 21, 2014 | Dec. 24, 2013 | Nov. 12, 2013 | |
Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | Initial Notes [Member] | Additional Notes [Member] | Cyrus Purchasers [Member] | Cyrus Purchasers [Member] | Cyrus Purchasers [Member] | Cyrus Purchasers [Member] | Cyrus Purchasers [Member] | Cyrus Purchasers [Member] | Cyrus Purchasers [Member] | |||
Convertible Debt Securities [Member] | Initial Notes [Member] | Additional Notes [Member] | Additional Notes [Member] | Additional Notes [Member] | Additional Notes [Member] | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes | ' | ' | ' | $13,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | 3,000,000 |
Convertible notes, maturity date | ' | ' | ' | ' | ' | ' | ' | 13-Feb-17 | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' |
Convertible notes issuance cost | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' |
Convertible notes, interest rate, stated | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | ' | ' | 1,649,579 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | 10,722,000 | 0 | 10,722,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes, noncurrent | ' | ' | ' | 13,250,000 | ' | ' | ' | 9,500,000 | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | $4.90 | ' | $4.50 | ' | ' | ' |
Convertible notes, interest expense | ' | ' | ' | 400,000 | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' |
Conversion price | ' | ' | $6.50 | ' | $13 | $7.50 | ' | ' | $6.50 | $5 | ' | ' | ' |
Debt Instrument, Number of Trading Days Before Conversion | ' | ' | ' | ' | ' | ' | ' | '10 days | ' | ' | ' | ' | ' |
Notes secured by percentage of foreign subsidiaries stock | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' |
Default on debt, interest rate | ' | ' | ' | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' |
Covenant waived, increased borrowings limit with Sphere | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | ' | ' | ' | ' | ' |
Convertible notes, covenant compliance | ' | ' | ' | ' | ' | ' | ' | 'was in compliance | ' | ' | ' | ' | ' |
DEBT_Note_payable_related_part
DEBT Note payable - related party (Details) (Sphere 3D, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Sphere 3D | ' |
Related Party Transaction [Line Items] | ' |
Notes payable noncurrent, outstanding | $5 |
Debt Instrument, Description of Variable Rate Basis | 'prime rate (as defined in the agreement) plus |
Basis spread on variable rate | 2.00% |
Debt Instrument, Interest Rate at Period End | 5.25% |
Maturity Date | 15-May-18 |
DEBT_Subsequent_event_Details
DEBT Subsequent event (Details) (Notes Payable, Sphere, USD $) | Sep. 08, 2014 |
In Millions, unless otherwise specified | |
Notes Payable, Sphere | ' |
Subsequent Event [Line Items] | ' |
Amendment to agreement to borrow up to | $10 |
Notes payable noncurrent, outstanding | $7.80 |
RELATED_PARTY_Details
RELATED PARTY (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Payments to Acquire Intangible Assets | $250,000 | $0 |
Stock Issued | 250,000 | 0 |
Sphere 3D | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Payments to Acquire Intangible Assets | 250,000 | ' |
Stock Issued During Period, Shares, New Issues | 42,644 | ' |
Stock Issued | 250,000 | ' |
Short-term investment, Shares | 769,231 | ' |
Amortized cost basis | 500,000 | ' |
Accounts Receivable, Related Parties, Current | 500,000 | ' |
Due to Related Parties, Noncurrent | 200,000 | ' |
Revenue from Related Parties | 1,000,000 | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $0 | ' |
Chief Executive Officer | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
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% | ' |
INCOME_TAXES_Unrecognized_tax_
INCOME TAXES Unrecognized tax benefits (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Unrecognized tax benefits at the beginning of the period | $673 | $307 |
Increase related to prior periods | 0 | 366 |
Unrecognized tax benefits | $673 | $673 |
INCOME_TAXES_Textuals_Details
INCOME TAXES Textuals (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized tax benefits, long-term liabilities | $0 | ' | ' |
Unrecognized tax benefits | 673,000 | 673,000 | 307,000 |
Unrecognized tax benefits that would impact effective tax rate | 500,000 | ' | ' |
Income tax penalties and interest accrued | 0 | 0 | ' |
Income tax penalties and interest expense | $0 | $0 | ' |
INCOME_TAXES_Componets_of_loss
INCOME TAXES Componets of loss (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Domestic | ($25,012) | ($20,031) |
Foreign | -472 | 549 |
Loss from continuing operations, before income taxes | ($25,484) | ($19,482) |
INCOME_TAXES_Provision_for_inc
INCOME TAXES Provision for income taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Current, Federal | ($2,436) | $0 |
Current, State | -174 | 24 |
Current, Foreign | 126 | 141 |
Current Income Tax Expense (Benefit) | -2,484 | 165 |
Deferred Foreign Income Tax Expense (Benefit) | -76 | 0 |
(Benefit from) provision for income taxes | ($2,560) | $165 |
INCOME_TAXES_Tax_provision_rat
INCOME TAXES Tax provision rate reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Federal statutory income tax rate | 34.00% | 34.00% |
Federal income tax at statutory rate | ($8,665) | ($6,624) |
Increase in valuation allowance | 7,017 | 6,238 |
Other comprehensive income | -2,493 | 0 |
State income tax, net of federal benefit | -552 | -516 |
Share-based compensation expense | 870 | 926 |
Permanent differences | 1,263 | 141 |
(Benefit from) provision for income taxes | ($2,560) | $165 |
INCOME_TAXES_Deferred_tax_asse
INCOME TAXES Deferred tax asset (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Net operating loss carryforward | $94,702 | $52,430 |
Intangible assets | 6,438 | 1,601 |
Tax credits | 3,377 | 3,258 |
Share-based compensation | 1,784 | 1,850 |
Inventory | 1,352 | 1,362 |
Warranty and extended warranty | 1,209 | 1,348 |
Capital loss carryforward | 1,094 | 1,109 |
Other | 1,241 | 569 |
Deferred tax assets, gross | 111,197 | 63,527 |
Valuation allowance for deferred tax assets | -111,197 | -63,527 |
Deferred tax assets, net | 0 | 0 |
Deferred Tax Liabilities, Other | -182 | 0 |
Deferred Tax Liabilities, Net | ($182) | $0 |
INCOME_TAXES_Operating_Loss_Ca
INCOME TAXES Operating Loss Carryforwards (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Share-based compensation | ' |
Operating loss carryforwards | $1 |
Federal Tax Authority [Member] | ' |
Operating loss carryforwards | 248.7 |
Operating loss carryforwards, expiration dates | 30-Jun-17 |
State and Local Jurisdiction [Member] | ' |
Operating loss carryforwards | $112.50 |
Operating loss carryforwards, expiration dates | 30-Jun-14 |
INCOME_TAXES_Tax_Carryforward_
INCOME TAXES Tax Carryforward (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Alternative minimum tax credit carryforwards | $0.20 |
Foreign Tax Authority [Member] | ' |
Tax credit carryforward | 0.3 |
Tax credit carryforward, expiration date | 30-Jun-15 |
Research Tax Credit Carryforward [Member] | Federal Tax Authority [Member] | ' |
Tax credit carryforward | 1.2 |
Tax credit carryforward, expiration date | 30-Jun-25 |
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | ' |
Tax credit carryforward | $3.30 |
EQUITY_Shares_and_Sale_of_Comm
EQUITY Shares and Sale of Common Stock (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Feb. 13, 2013 | |
Common Stock [Member] | |||
Class of Stock [Line Items] | ' | ' | ' |
Common Stock, Shares Authorized | 125,000,000 | 90,200,000 | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | 204,081 |
Share Price | ' | ' | $4.90 |
Stock Issued During Period, Value, New Issues | ' | ' | $1,000,000 |
Proceeds from Issuance or Sale of Equity | $0 | $870,000 | $900,000 |
EQUITY_Issuance_of_common_stoc
EQUITY Issuance of common stock for conversion of convertible notes and payment of interest (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Debt Conversion [Line Items] | ' | ' |
Debt Conversion, Converted Instrument, Amount | $10,722 | $0 |
Convertible Debt Securities [Member] | ' | ' |
Debt Conversion [Line Items] | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | 1,649,579 | ' |
Convertible debt, conversion price | $6.50 | ' |
Debt Conversion, Converted Instrument, Amount | $10,722 | ' |
Stock Issued During Period, Shares, interest payment | 104,285 | 69,698 |
Share Price | $4.86 | $5.75 |
EQUITY_Issuance_of_common_stoc1
EQUITY Issuance of common stock (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Payments Related to Tax Withholding for Share-based Compensation | $490 | $749 |
Restricted Stock [Member] | ' | ' |
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 212,771 | 225,954 |
Shares Paid for Tax Withholding for Share Based Compensation | 100,299 | 110,401 |
Payments Related to Tax Withholding for Share-based Compensation | $490 | $749 |
EQUITY_Warrants_Details
EQUITY Warrants (Details) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
March 2011 [Member] | ' | ' |
Number of securities callable by warrants outstanding | 758,972 | ' |
Warrants issued to placement agent | 51,918 | ' |
Exercise price of warrants or rights | 8.55 | ' |
Exercise price of warrants, placement agent | 8.55 | ' |
Common stock issued, warrants exercised | 0 | 0 |
Investment Warrants Expiration Date | 15-Mar-16 | ' |
February 2010 [Member] | ' | ' |
Number of securities callable by warrants outstanding | 2,007,135 | 1,859,092 |
Warrants issued to placement agent | 36,173 | ' |
Exercise price of warrants or rights | 8.13 | 8.78 |
Exercise price of warrants, placement agent | 14.76 | ' |
Common stock issued, warrants exercised | 0 | 0 |
Investment Warrants Expiration Date | 18-Feb-15 | ' |
November 2009 [Member] | ' | ' |
Warrants issued to placement agent | 20,700 | ' |
Exercise price of warrants or rights | 13.13 | ' |
Investment Warrants Expiration Date | 30-Oct-14 | ' |
EQUITY_INCENTIVE_PLANS_Textual
EQUITY INCENTIVE PLANS Textuals (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation [Abstract] | ' |
Active stock plans (actual) | 2 |
Number of shares authorized | 2,400,000 |
Common stock reserved for inducement options | 34,167 |
Share-based payment award, award vesting period | '3 years |
Option awards maximum term | '6 years |
Number of shares available for grant | 300,000 |
EQUITY_INCENTIVE_PLANS_Weighte
EQUITY INCENTIVE PLANS Weighted-average assumptions (Details) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation [Abstract] | ' | ' |
Expected volatility rate | 85.00% | 78.60% |
Risk-free interest rate | 2.00% | 0.90% |
Dividend yield | 0.00% | 0.00% |
Expected term | '6 years | '6 years |
EQUITY_INCENTIVE_PLANS_Stock_o
EQUITY INCENTIVE PLANS Stock option rollforward (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation [Abstract] | ' | ' |
Options outstanding, beginning | 357 | 332 |
Weighted-average exercise price, beginning | $10.80 | $13.30 |
Granted | 45 | 107 |
Granted, weighted-average exercise price | $5 | $7.90 |
Exercised | 0 | -7 |
Exercised, weighted-average exercise price | $0 | $6.60 |
Forfeited and expired | -125 | -75 |
Forfeited and expired, weighted-average exercise price | $10.01 | $18.10 |
Options outstanding, ending | 277 | 357 |
Weighted-average exercise price, ending | $10.23 | $10.80 |
Weighted-average remaining contractual term | '2 years 8 months 4 days | ' |
Outstanding, Intrinsic Value | $74 | ' |
Vested and Expected to Vest, Outstanding, Number | 271 | ' |
Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $10.32 | ' |
Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | '2 years 8 months 25 days | ' |
Aggregate intrinsic value | 73 | ' |
Exercisable, number | 242 | ' |
Exercisable, weighted-average exercise price | $10.84 | ' |
Weighted-average remaining contractual term | '2 years 4 months 15 days | ' |
Exercisable, aggregate intrinsic value | $66 | ' |
EQUITY_INCENTIVE_PLANS_Stock_o1
EQUITY INCENTIVE PLANS Stock option summary (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation [Abstract] | ' | ' |
Weighted-average grant date fair value, equal to fair value | $3.86 | $5.25 |
Intrinsic value of options exercised | $0 | $50 |
Cash received from exercise of stock options | 0 | 200 |
Tax benefit realized for the tax deductions from stock option exercises | 0 | 0 |
Income tax benefit recognized in the statements of operations | $0 | $0 |
EQUITY_INCENTIVE_PLANS_Restric
EQUITY INCENTIVE PLANS Restricted Stock (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
RSU vesting period | '3 years | ' |
Restricted Stock [Member] | ' | ' |
Restricted stock, nonvested, number, beginning | 529 | 810 |
Weighted-average grant date fair value, beginning | $11.95 | $12.55 |
Restricted stock, granted | 1,822 | 89 |
Restricted stock, granted, weighted-average grant date fair value | $3.35 | $8.15 |
Restricted stock, vested | -313 | -336 |
Restricted stock, vested, weighted-average grant date fair value | $11.63 | $12.50 |
Restricted stock, forfeited | -135 | -34 |
Restricted stock, forfeited, weighted-average grant date fair value | $9.81 | $10.30 |
Restricted stock, nonvested, number, ending | 1,903 | 529 |
Weighted-average grant date fair value, ending | $3.92 | $11.95 |
RSU vesting period | '3 years | ' |
Restricted stock award, vested in period | $3.60 | $4.20 |
Share-based compensation, RSU | $3.80 | $4.20 |
EQUITY_INCENTIVE_PLANS_Stock_a
EQUITY INCENTIVE PLANS Stock appreciation rights (Details) (Stock Appreciation Rights (SARs) [Member], USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2011 | |
Stock Appreciation Rights (SARs) [Member] | ' | ' | ' |
Stock appreciation rights, number | ' | ' | 318,671 |
Stock appreciation rights, liability | $200,000 | $500,000 | ' |
Stock appreciation rights vested, no intrinsic value | 283,000 | ' | ' |
Stock appreciation right, exercise price | $12.45 | ' | ' |
Stock appreciation rights weighted-average remaining contractual term | '1 year 9 months | ' | ' |
Stock appreciation rights, intrinsic value of rights not exercised | $0 | ' | ' |
Stock appreciation rights, awards canceled | 35,671 | ' | ' |
Stock appreciation rights, exercised | 0 | 0 | ' |
EQUITY_INCENTIVE_PLANS_Employe
EQUITY INCENTIVE PLANS Employee stock purchase plan (Details) (Employee Stock [Member], USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Stock [Member] | ' | ' |
Shares reserved for future issuance | 88,527 | ' |
ESPP purchase offering period | '6 months | ' |
ESPP purchase interval | 1 | ' |
ESPP maximum employee subscription rate | $25,000 | ' |
Maximum number of shares per employee | 500 | ' |
Purchase date, percentage of purchase price | 85.00% | ' |
Stock issued during period, shares, employee stock purchase plans | 19,667 | 26,718 |
Additional share-based compensation, employee stock purchase program | $15,000 | $30,000 |
EQUITY_INCENTIVE_PLANS_ShareBa
EQUITY INCENTIVE PLANS Share-Based Compensation Expense (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | $3,953,000 | $4,770,000 |
Share-based Compensation Compensation Cost Not yet Recognized | 5,600,000 | ' |
Compensation Cost Not yet Recognized, Period for Recognition | '1 year 8 months | ' |
Cost of product revenue | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | 99,000 | 135,000 |
Selling and marketing | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | 316,000 | 1,006,000 |
Research and development | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | 304,000 | 319,000 |
General and administrative | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | $3,234,000 | $3,310,000 |
SEGMENT_AND_GEOGRAPHIC_INFORMA2
SEGMENT AND GEOGRAPHIC INFORMATION Textuals (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Operating Segments | 1 |
SEGMENT_AND_GEOGRAPHIC_INFORMA3
SEGMENT AND GEOGRAPHIC INFORMATION Products and Services (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue from External Customer [Line Items] | ' | ' |
Revenues | $65,692 | $48,020 |
Revenue, net | 65,692 | 48,020 |
Disk systems | ' | ' |
Revenue from External Customer [Line Items] | ' | ' |
Revenues | 25,128 | 9,602 |
Service | ' | ' |
Revenue from External Customer [Line Items] | ' | ' |
Revenues | 17,338 | 19,184 |
Tape automation systems | ' | ' |
Revenue from External Customer [Line Items] | ' | ' |
Revenues | 14,200 | 16,784 |
Tape drives and media | ' | ' |
Revenue from External Customer [Line Items] | ' | ' |
Revenues | $9,026 | $2,450 |
SEGMENT_AND_GEOGRAPHIC_INFORMA4
SEGMENT AND GEOGRAPHIC INFORMATION Geographic area (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | $65,692 | $48,020 |
Americas | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 24,138 | 24,148 |
Europe, Middle East, Africa | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 32,070 | 19,516 |
Asia Pacific | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 9,484 | 4,356 |
UNITED STATES | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 20,800 | 23,000 |
GERMANY | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 11,300 | 3,600 |
FRANCE | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | $6,900 | $5,700 |
SEGMENT_AND_GEOGRAPHIC_INFORMA5
SEGMENT AND GEOGRAPHIC INFORMATION Property and Equipment (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Long-Lived Assets [Line Items] | ' | ' |
Long-Lived Assets | $5,799 | $2,014 |
Europe | ' | ' |
Long-Lived Assets [Line Items] | ' | ' |
Long-Lived Assets | 2,348 | 49 |
UNITED STATES | ' | ' |
Long-Lived Assets [Line Items] | ' | ' |
Long-Lived Assets | 2,159 | 1,965 |
Asia Pacific | ' | ' |
Long-Lived Assets [Line Items] | ' | ' |
Long-Lived Assets | $1,292 | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Operating Leased Assets [Line Items] | ' | ' |
Fiscal 2015 | $2,690,000 | ' |
Fiscal 2016 | 2,096,000 | ' |
Fiscal 2017 | 1,541,000 | ' |
Fiscal 2018 | 898,000 | ' |
Fiscal 2019 | 703,000 | ' |
Thereafter | 20,000 | ' |
Total future minimum payments due | 7,948,000 | ' |
Operating Leases, Rent Expense [Abstract] | ' | ' |
Operating leases, rent expense | $2,700,000 | $2,700,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES Textuals (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Letters of Credit Outstanding, Amount | $0.70 |
Loss Contingency, Damages Sought, Value | $6 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES Warranty and Extended Warranty (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Other Commitments [Line Items] | ' | ' |
Product Warranty Accrual, Current | $994,000 | $790,000 |
Deferred revenue extended warranties, current | 6,920,000 | ' |
Product Warranty Accrual, Noncurrent | 425,000 | ' |
Deferred revenue extended warranties, noncurrent | 3,296,000 | ' |
Deferred Costs | 1,100,000 | 1,900,000 |
Warranty Reserves [Member] | ' | ' |
Other Commitments [Line Items] | ' | ' |
Liability, beginning balance | 790,000 | 1,286,000 |
Product warranty, liabilities assumed from acquisition | 950,000 | ' |
Settlements made during the period | -305,000 | -530,000 |
Product Warranty Accrual, Warranties Issued | 224,000 | 394,000 |
Product Warranty Accrual, Preexisting, Increase (Decrease) | -240,000 | -360,000 |
Liability, ending balance | 1,419,000 | 790,000 |
Deferred revenue [Member] | ' | ' |
Other Commitments [Line Items] | ' | ' |
Deferred revenue, beginning balance | 10,354,000 | 11,739,000 |
Product warranty, liabilities assumed from acquisition | 1,725,000 | ' |
Settlements made during the period | -11,889,000 | -13,411,000 |
Product Warranty Accrual, Warranties Issued | 10,026,000 | 12,026,000 |
Product Warranty Accrual, Preexisting, Increase (Decrease) | 0 | 0 |
Deferred revenue, ending balance | $10,216,000 | $10,354,000 |
SUBSEQUENT_EVENTS_Related_Part
SUBSEQUENT EVENTS Related Party Transaction (Details) (Sphere 3D, USD $) | 1 Months Ended |
Jul. 31, 2014 | |
Sphere 3D | ' |
Subsequent Event [Line Items] | ' |
Additional common shares received from related party, value | $500,000 |
Short-term investment, restrictions, additional information | 'These shares are subject to a restriction on their sale until November 19, 2014 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Short-term Investments [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Sep. 17, 2014 |
Short-term Investments [Member] | ' |
Subsequent Event [Line Items] | ' |
Agreement to sell short-term investment for proceeds | $1 |
Short-term investment remaining, Sphere | $4.70 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $24,210 | $20,240 | $10,636 | $10,606 | $12,068 | $11,642 | $12,599 | $11,711 | ' | ' |
Gross profit | 6,508 | 6,572 | 3,666 | 3,569 | 4,408 | 3,852 | 4,597 | 3,943 | 20,315 | 16,800 |
Loss from operations | -8,493 | -6,862 | -4,499 | -4,096 | -4,962 | -5,138 | -4,112 | -4,663 | ' | ' |
Loss before income taxes | -8,924 | -7,159 | -4,830 | -4,571 | -5,381 | -5,082 | -4,205 | -4,814 | ' | ' |
Net Loss | ($7,385) | ($6,633) | ($4,316) | ($4,590) | ($5,425) | ($5,086) | ($4,273) | ($4,863) | ' | ' |
Net loss per share: Basic and diluted | ($0.42) | ($0.44) | ($0.60) | ($0.75) | ($0.90) | ($0.87) | ($0.75) | ($0.85) | ($1.99) | ($3.41) |