0001104659-17-030321 | 10-Q | XBRL Viewer

Document and Entity Information - shares	9 Months Ended
Mar. 31, 2017	Apr. 28, 2017
Document and Entity Information
Entity Registrant Name	ACCURAY INC
Entity Central Index Key	0001138723
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		83,000,966
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 60,170	$ 119,771
Short-term investments	23,906	47,239
Restricted cash	1,154	891
Accounts receivable, net of allowance for doubtful accounts of $747 and $826 as of March 31, 2017 and June 30, 2016, respectively	87,091	56,810
Inventories	116,573	115,987
Prepaid expenses and other current assets	17,704	16,098
Deferred cost of revenue	3,725	4,884
Total current assets	310,323	361,680
Property and equipment, net	23,353	27,878
Goodwill	57,742	57,848
Intangible assets, net	1,646	7,611
Deferred cost of revenue	666	1,996
Restricted cash	13,085	1,471
Other assets	10,032	10,549
Total assets	416,847	469,033
Current liabilities:
Accounts payable	23,633	15,229
Accrued compensation	24,224	18,725
Other accrued liabilities	18,551	22,184
Short-term debt	115,702	39,900
Customer advances	18,853	22,123
Deferred revenue	95,250	92,051
Total current liabilities	296,213	210,212
Long-term liabilities:
Long-term other liabilities	10,542	10,984
Deferred revenue	10,301	17,665
Long-term debt	54,335	170,512
Total liabilities	371,391	409,373
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.001 par value; authorized: 5,000,000 shares; no shares issued and outstanding
Common stock, $0.001 par value; authorized: 200,000,000 shares as of March 31, 2017 and June 30, 2016, respectively; issued and outstanding: 82,999,966 and 81,378,208 shares at March 31, 2017 and June 30, 2016, respectively	83	81
Additional paid-in-capital	492,311	481,346
Accumulated other comprehensive loss	(1,807)	(960)
Accumulated deficit	(445,131)	(420,807)
Total stockholders' equity	45,456	59,660
Total liabilities and stockholders' equity	$ 416,847	$ 469,033

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Net revenue:
Products	$ 48,032	$ 53,740	$ 119,029	$ 149,494
Services	49,280	51,544	152,291	154,333
Total net revenue	97,312	105,284	271,320	303,827
Cost of revenue:
Cost of products	29,574	29,622	75,895	85,356
Cost of services	32,313	30,718	97,269	97,058
Total cost of revenue	61,887	60,340	173,164	182,414
Gross profit	35,425	44,944	98,156	121,413
Operating expenses:
Research and development	12,484	13,270	36,657	42,497
Selling and marketing	13,025	12,516	41,247	41,009
General and administrative	11,184	13,716	32,890	39,820
Total operating expenses	36,693	39,502	110,794	123,326
Income (loss) from operations	(1,268)	5,442	(12,638)	(1,913)
Other expense, net	(2,919)	(3,963)	(11,044)	(14,124)
Income (loss) before provision for income taxes	(4,187)	1,479	(23,682)	(16,037)
Provision for income taxes	842	723	642	2,260
Net income (loss)	$ (5,029)	$ 756	$ (24,324)	$ (18,297)
Net income (loss) per share
Net income (loss) per share - basic (in dollars per share)	$ (0.06)	$ 0.01	$ (0.30)	$ (0.23)
Net income (loss) per share - diluted (in dollars per share)	$ (0.06)	$ 0.01	$ (0.30)	$ (0.23)
Weighted average common shares used in computing net income (loss) per share:
Basic (in shares)	82,913	80,860	82,268	80,320
Diluted (in shares)	82,913	82,071	82,268	80,320
Net income (loss)	$ (5,029)	$ 756	$ (24,324)	$ (18,297)
Foreign currency translation adjustment	435	796	(771)	69
Unrealized loss on investments, net of tax	(6)	149	(76)	59
Comprehensive income (loss)	$ (4,600)	$ 1,701	$ (25,171)	$ (18,169)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net loss	$ (24,324)	$ (18,297)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	13,848	13,644
Share-based compensation	9,985	9,446
Amortization of debt issuance costs	1,165	1,279
Amortization and accretion of discount and premium on investments	70	731
Accretion of interest on debt	2,117	5,155
(Recovery of) provision for bad debt, net	(64)	162
Provision for write-down of inventories	1,131	1,472
Loss on disposal of property and equipment	4	11
Loss on extinguishment of debt		965
Changes in assets and liabilities:
Accounts receivable	(30,649)	(10,294)
Inventories	(2,386)	(11,335)
Prepaid expenses and other assets	(1,439)	(3,993)
Deferred cost of revenue	2,474	(1,941)
Accounts payable	8,249	8,724
Accrued liabilities	1,578	1,289
Customer advances	(2,914)	268
Deferred revenues	(2,907)	13,808
Net cash (used in) provided by operating activities	(24,062)	11,094
Cash flows from investing activities
Purchases of property and equipment, net	(3,619)	(5,885)
Purchases of investments	(14,992)	(52,712)
Sales and maturities of investments	38,179	45,695
Net cash provided by (used in) investing activities	19,568	(12,902)
Cash flows from financing activities
Proceeds from employee stock plans	3,075	2,950
Taxes paid related to net share settlement of equity awards	(841)	(3,045)
Payments made to note and loan holders	(43,658)	(65,531)
Proceeds from debt, net of costs		64,632
Net cash used in financing activities	(41,424)	(994)
Effect of exchange rate changes on cash and cash equivalents	(1,806)	(244)
Net decrease in cash, cash equivalents and restricted cash	(47,724)	(3,046)
Cash, cash equivalents and restricted cash at beginning of period	122,133	84,709
Cash, cash equivalents and restricted cash at end of period	$ 74,409	$ 81,663

Summary of Significant Accounting Policies

9 Months Ended

Mar. 31, 2017

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Description of Business

Accuray Incorporated (together with its subsidiaries, the “Company” or “Accuray”) is incorporated in Delaware and has its principal place of business in Sunnyvale, California. The Company designs, develops and sells advanced radiosurgery and radiation therapy systems for the treatment of tumors throughout the body. The Company has offices in the United States, Switzerland, China, Hong Kong and Japan and conducts its business worldwide.

Basis of Presentation and Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation.

The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of the periods presented. Certain amounts in the prior year’s condensed consolidated balance sheet have been reclassified to conform to the current period’s presentation. These reclassifications had no impact on previously reported condensed consolidated cash flows or statements of operations. The results for the three and nine months ended March 31, 2017 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2017, or for any other future interim period or fiscal year.

These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the fiscal year ended June 30, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 24, 2016. The Company’s significant accounting policies are described in Note 2 to those audited consolidated financial statements and there have been no subsequent material changes to such policies.

Recent Accounting Standard Update Not Yet Effective

In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2017-07, Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This guidance revises the presentation of employer-sponsored defined benefit pension and other postretirement plans for the net periodic benefit cost in the statement of operations and requires that the service cost component of net periodic benefit be presented in the same income statement line items as other employee compensation costs for services rendered during the period. The other components of the net benefit costs are required to be presented in the statement of operations separately from the service cost component and outside the subtotal of income from operations. This guidance allows only the service cost component of net periodic benefit costs to be eligible for capitalization. The guidance will be effective for the Company in the first quarter of its fiscal year 2019 and early adoption is permitted as of the beginning of an annual reporting period. The Company has not yet determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other Topics (Topic 350)-Simplifying the Test for Goodwill Impairment. This guidance eliminates the requirement to calculate the implied fair value of goodwill of a reporting unit by determining the fair value of its assets and liabilities (including unrecognized assets and liabilities) to measure a goodwill impairment charge. Instead, an entity will record an impairment charge based on the excess of the reporting unit’s carrying amount over its fair value. The ASU will be effective for the Company in the first quarter of its fiscal year 2021 on a prospective basis and earlier adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company has not yet determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. This ASU will be effective for the Company in the first quarter of its fiscal year 2019 and early adoption is permitted. The Company has not yet determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures.

In June 2016, the FASB issued ASU No. 2016-13 Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets held. This ASU will be effective for the Company in the first quarter of its fiscal year 2021 and must be adopted using a modified retrospective approach, with certain exceptions. Early adoption is permitted beginning in the first quarter of the Company’s fiscal year 2020. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718). The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition, the guidance provides an option to recognize forfeitures as they occur versus estimating them at the time of grant. This ASU will be effective for the Company in the first quarter of its fiscal year 2018 and early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as finance or operating lease. This ASU will be effective for the Company in the first quarter of its fiscal year 2020 and early adoption is permitted. The ASU requires adoption based upon a modified retrospective transition approach. Company has not yet selected a transition method, has not yet determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures.

In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 changes accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, it clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. This ASU will be effective for the Company in the first quarter of its fiscal year 2019 and must be adopted using a modified retrospective approach, with certain exceptions. Early adoption is permitted for certain provisions. The Company has not yet determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is required to be adopted, using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures. In August 2015, the FASB approved a one year deferral of the effective period of ASU 2014-09. The standard will be effective for the Company in the first quarter of its fiscal year 2019, but early adoption is permitted starting in the first quarter of fiscal year 2018. The FASB issued supplemental adoption guidance and clarification to ASU 2014-09 in 2016 and 2017. The Company intends to adopt the new standard in the first quarter of fiscal year 2019 by recognizing the cumulative effect of the new standard as an increase to the opening balance of retained earnings. Based upon the Company’s preliminary assessment, certain portions of its product revenue will be accelerated to reflect consideration upon delivery and an element of installation will be deferred until performed. Revenue policies for indirect sales and service revenues are expected to be unchanged under the new guidance. The Company also expects to capitalize incremental contract acquisition costs, such as sales commissions, and amortize over the economic life of its product or contractual relationship with the customer. The Company’s current practice is to defer sales comissions until revenue is recognized. The Company currently does not expect the application of this guidance to have a significant impact on its consolidated financial statements; however, the Company’s assessment may change as it continues its evaluation and analysis of this ASU.

Accounting Standard Update Recently Adopted

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which provides amendments to current guidance to address the classification and presentation of changes in restricted cash in the statement of cash flows. The Company early adopted this ASU and retrospectively applied the change to the statement of cash flows for the nine months ended March 31, 2016. The Company disclosed its restricted cash on its condensed consolidated balance sheets for the years presented. The adoption of this standard did not have a significant impact on the Company’s condensed consolidated financial statements and related disclosures.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures at the date of the financial statements. Key estimates and assumptions made by the Company relate to revenue recognition, assessment of recoverability of goodwill and intangible assets, valuation of inventories, share-based compensation expense, income taxes, allowance for doubtful accounts, loss contingencies and corporate bonus expenses. Actual results could differ materially from those estimates.

Concentration of Credit and Other Risks

The Company’s cash, cash equivalents and investments are deposited with several major financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. The Company has not experienced any losses in such accounts and does not believe that it is exposed to any significant risk of loss on these balances.

For the three months ended March 31, 2017 and 2016, there was one customer that represented 13% of total net revenue and no customers that represented 10% or more of total net revenue, respectively. For the nine months ended March 31, 2017 and 2016, there were no customers that represented more than 10% of total net revenue, respectively. One customer accounted for 25% and 18% of the Company’s total accounts receivable as of March 31, 2017 and June 30, 2016, respectively.

Accounts receivable are typically not collateralized. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. Accounts receivable are deemed past due in accordance with the contractual terms of the agreement pursuant to which the receivables are generated. Accounts receivable balances are charged against the allowance for doubtful accounts once collection efforts are unsuccessful.

Single source suppliers presently provide the Company with several components. In most cases, if a supplier was unable to deliver these components, the Company believes that it would be able to find other sources at comparable prices for these components subject to any regulatory qualifications, if required.

Revenue Recognition

The Company earns revenue from the sale of products and related services. The Company records revenues net of any value added or sales tax. For arrangements with multiple elements, the Company allocates arrangement fees to products and services based upon Vendor Specific Objective Evidence (VSOE) of fair value of the respective elements, Third-Party Evidence (TPE), or Best Estimate of Selling Price (BESP), using the relative selling price method.

Product and Service Revenue

The majority of product revenue is generated from sales of CyberKnife and TomoTherapy Systems. If the Company is responsible for installation, the Company recognizes revenue after installation and acceptance of the system. Otherwise, revenue is recognized upon delivery, assuming all other revenue recognition criteria are met.

The Company offers systems with post-contract customer support (PCS), installation services, training and professional services. PCS includes planned and corrective maintenance services, software updates, bug fixes, as well as call-center support. Service revenue is generated primarily from PCS (warranty period services and post warranty services), installation services, training, parts and upgrades that are sold under service contracts and professional services. PCS revenue is deferred and recognized over the service period. Installation service revenue is recognized concurrently with system revenue. Training and professional service revenues that are not deemed essential to the functionality of the systems are recognized as such services are performed.

Costs associated with service revenue are expensed when incurred, except when those costs are related to parts or system upgrades where revenue recognition has been deferred. In those cases, the costs are deferred and recognized over the period of revenue recognition.

Net Income (Loss) Per Common Share

Basic and diluted net income (loss) per share is computed by dividing net income (loss) attributable to stockholders by the weighted average number of common shares outstanding during the period.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per common share follows (in thousands):

	Three Months Ended					Nine Months Ended
	March 31,					March 31,
	2017			2016		2017			2016
Numerator:
Net income (loss) used to compute basic and diluted net income (loss) per share	$	(5,029	)	$	756	$	(24,324	)	$	(18,297	)

Denominator:
Weighted average shares used to compute basic net income (loss) per share	82,913			80,860		82,268			80,320
Weighted average effect of dilutive stock options	—			101		—			—
Weighted average effect of dilutive RSUs, PSUs and MSUs	—			610		—			—
Weighted average effect of 3.50% Series A convertible notes	—			500		—			—

Weighted average shares used to compute diluted net income (loss) per share	82,913			82,071		82,268			80,320

The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the vesting of Restricted Stock Units (RSU), Market Stock Units (MSU) and Performance Stock Units (PSU), and the purchase of shares under the Employee Stock Purchase Program (ESPP), as determined under the treasury stock method, are excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. Additionally, the 3.75% Convertible Senior Notes (the “3.75% Convertible Notes”), the 3.50% Convertible Senior Notes due February 1, 2018 (the “3.50% Convertible Notes”), the 3.50% Series A Convertible Notes (the “3.50% Series A Convertible Notes”) due February 1, 2018 (together, the “Convertible Notes”) are included in the calculation of diluted net income per share only if their inclusion is dilutive. For the three months ended March 31, 2016, the potentially dilutive shares issuable upon the conversion of the 3.50% Series A Convertible Notes were included in the calculation of the diluted net income per share, while the dilutive shares issuable upon the conversion of the 3.50% Convertible Notes were excluded from the calculation of diluted net income per share as their inclusion would have been anti-dilutive.

The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands):

	As of March 31,
	2017	2016
Stock options	2,510	1,981
RSUs, PSUs and MSUs	5,492	3,558
3.50% Convertible Notes	8,378	8,378
3.50% Series A Convertible Notes	—	—

	16,380	13,917

Outstanding Convertible Notes—Diluted Share Impact

The 3.50% Series A Convertible Notes have an optional physical (share), cash or combination settlement feature and contain certain conditional conversion features. Due to the optional cash settlement feature and management’s intent to settle the principal amount thereof in cash, the conversion shares underlying the outstanding principal amount of the 3.50% Series A Convertible Notes, totaling approximately 13.2 million shares were not included in the potentially diluted share count table above. The zero potentially dilutive shares of the 3.50% Series A Convertible Notes as of March 31, 2017, included in the table above are the result of the lower average share price, which was below the conversion price and management’s intent to settle the principal amount thereof in cash. The number of premium shares included in the Company’s diluted share count will vary with fluctuations in the Company’s share price. Higher actual share prices result in a greater number of premium shares.

The 3.75% Convertible Notes were fully settled in cash during January and August of 2016 as further discussed in Note 8. As of March 31, 2016, approximately 10.6 million shares related to the 3.75% Convertible Notes were excluded from the potentially dilutive share count table above due to the optional cash settlement feature and management’s intent to settle the principal amount thereof in cash. In addition, there were no premium shares associated with the 3.75% Convertible Notes as the Company’s average share price did not exceed the conversion price as of March 31, 2016.

Segment Information

The Company has one operating and reporting segment (oncology systems group), which develops, manufactures and markets proprietary medical devices used in radiation therapy and radiosurgery for the treatment of cancer patients. The Company’s Chief Executive Officer, its Chief Operating Decision Maker, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The Company does not assess the performance of its individual product lines on measures of profit or loss, or asset based metrics. Therefore, the information below is presented only for revenues and long-lived tangible assets by geographic areas. Revenue by geographic region is based on the shipping addresses of the Company’s customers. The following summarizes revenue by geographic region (in thousands):

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Americas	$	38,720	$	32,667	$	118,545	$	128,957
Europe, Middle East, India and Africa	21,785		43,643		68,705		102,461
Asia-Pacific	13,520		16,505		35,092		49,226
Japan	23,287		12,469		48,978		23,183

Total	$	97,312	$	105,284	$	271,320	$	303,827

Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands):

	March 31,		June 30,
	2017		2016
Americas	$	19,182	$	23,842
Europe, Middle East, India and Africa	706		551
Asia-Pacific	1,653		1,342
Japan	1,812		2,143

Total	$	23,353	$	27,878

Balance Sheet Components

9 Months Ended

Mar. 31, 2017

Balance Sheet Components

Balance Sheet Components

2. Balance Sheet Components

Financing receivables

A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset in the Company’s balance sheet. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year and capital leases, totaled $5.5 million and $7.6 million at March 31, 2017 and June 30, 2016, respectively, and are included in Other Assets in the condensed consolidated balance sheets. Of the $5.5 million in financing receivables at March 31, 2017, $3.0 million is related to sales-type leases with customers while the remaining $2.5 million is related to contractual maturities of more than one year. Of the $7.6 million in financing receivables at June 30, 2016, $3.5 million is related to sales-type leases with customers while the remaining $4.1 million is related to contractual maturities of more than one year. Due to the homogenous nature of the leasing transactions, the Company manages them on an aggregate basis when assessing and monitoring credit risk. The Company evaluates the credit quality of an obligor at lease inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new customers and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of non-payments. As of March 31, 2017, the sales-type lease portion of the financing receivables was rated at a moderate risk. The Company performed an assessment of the allowance for credit losses related to its financing receivables as of March 31, 2017 and June 30, 2016. Based upon such assessment, the Company did not record an allowance for credit losses related to such financing receivables as of March 31, 2017 and June 30, 2016, respectively.

A summary of the Company’s financing receivables is presented as follows (in thousands):

				Financed
	Lease			Service Contracts
March 31, 2017	Receivables			and Other		Total
Gross	$	4,185		$	4,288	$	8,473
Residual value	—			—		—
Unearned income	(465		)	—		(465		)
Allowance for credit loss	—			—		—

Total, net	$	3,720		$	4,288	$	8,008

Reported as:
Current	$	753		$	1,793	$	2,546
Non-current	2,967			2,495		5,462

Total, net	$	3,720		$	4,288	$	8,008

				Financed
	Lease			Service Contracts
June 30, 2016	Receivables			and Other		Total
Gross	$	4,998		$	5,840	$	10,838
Residual value	—			—		—
Unearned income	(623		)	—		(623		)
Allowance for credit loss	—			—		—

Total, net	$	4,375		$	5,840	$	10,215

Reported as:
Current	$	840		$	1,778	$	2,618
Non-current	3,535			4,062		7,597

Total, net	$	4,375		$	5,840	$	10,215

Actual cash collections may differ from the contracted maturities due to early customer buyouts, refinancing, or defaults. Future minimum lease payments to be received as of March 31, 2017 are presented as follows (in thousands):

Year Ending June 30,	Amount
2017 (remaining 3 months)	$	155
2018	930
2019	930
2020	930
2021	930
2022	310

Total	$	4,185

Inventories

Inventories consisted of the following (in thousands):

	March 31,		June 30,
	2017		2016
Raw materials	$	45,815	$	50,480
Work-in-process	17,477		20,190
Finished goods	53,281		45,317

Inventories	$	116,573	$	115,987

Property and equipment, net

Property and equipment, net consisted of the following (in thousands):

	March 31,			June 30,
	2017			2016
Furniture and fixtures	$	4,511		$	4,527
Computer and office equipment	11,852			11,485
Software	11,362			11,104
Leasehold improvements	23,030			21,632
Machinery and equipment	50,120			47,171
Construction in progress	2,071			4,412

	102,946			100,331
Less: Accumulated depreciation	(79,593		)	(72,453		)

Property and equipment, net	$	23,353		$	27,878

Depreciation expense related to property and equipment for the three and nine months ended March 31, 2017 was $2.6 million and $7.9 million, respectively. Depreciation expense related to property and equipment for the three and nine months ended March 31, 2016 was $2.6 million and $7.7 million, respectively.

Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets

Goodwill and Intangible Assets

3. Goodwill and Intangible Assets

Goodwill

Activity related to goodwill consisted of the following (in thousands):

	Nine Months			Year
	Ended			Ended
	March 31,			June 30,
	2017			2016
Balance at the beginning of the period	$	57,848		$	58,054
Currency translation	(106		)	(206		)

Balance at the end of the period	$	57,742		$	57,848

In the second quarter of fiscal 2017, the Company performed its annual goodwill impairment test. Based on this analysis, the Company determined that there was no impairment to goodwill. The Company will continue to monitor its recorded goodwill for indicators of impairment.

Intangible Assets

The Company’s unamortized intangible assets associated with completed acquisitions at March 31, 2017 and June 30, 2016 are as follows (in thousands):

		March 31, 2017							June 30, 2016
		Gross							Gross
		Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Useful Lives	Amount		Amortization			Amount		Amount		Amortization			Amount
	(in years)
Developed technology	5 — 6	$	46,743	$	(45,097	)	$	1,646	$	46,743	$	(39,132	)	$	7,611

The Company did not identify any triggering events that would indicate potential impairment of its definite-lived intangible and long-lived assets as of March 31, 2017 and June 30, 2016.

Amortization expense related to intangible assets for the three and nine months ended March 31, 2017 was $2.0 million and $6.0 million, respectively. Amortization expense related to intangible assets for the three and nine months ended March 31, 2016 was $2.0 million and $6.0 million, respectively.

The estimated future amortization expense of purchased intangible assets as of March 31, 2017 is as follows (in thousands):

Year Ending June 30,	Amount
2017 (remaining 3 months)	$	1,646

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Financial Instruments

9 Months Ended

Mar. 31, 2017

Financial Instruments

Financial Instruments

5. Financial Instruments

The Company considers all highly liquid investments held at major banks, certificates of deposit and other securities with original maturities of three months or less to be cash equivalents.

The Company classifies all of its investments as available-for-sale at the time of purchase because management intends that these investments are available for current operations and includes these investments on its balance sheet as short-term investments. Investments with original maturities longer than three months include commercial paper, U.S. agency securities, non-U.S. government securities and investment-grade corporate debt securities. Investments classified as available-for-sale are recorded at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses are recorded based on specific identification of each security’s cost basis.

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels of inputs that may be used to measure fair value, as follows:

Level 1— Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date.

Level 2— Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:

Quoted prices for similar assets or liabilities in active markets;

Quoted prices for identical or similar assets in non-active markets;

Inputs other than quoted prices that are observable for the asset or liability; and

Inputs that are derived principally from or corroborated by other observable market data.

Level 3— Unobservable inputs that cannot be corroborated by observable market data and require the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

The following tables summarize the amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category for cash, cash equivalents and short-term investments (in thousands):

	March 31, 2017
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	58,669	$	—	$	—		$	58,669	$	—

Level 1
Money market funds	1,501		—		—			1,501		—


Level 2
U.S. government agency securities	23,997		—		(91		)	—		23,906

Total	$	84,167	$	—	$	(91	)	$	60,170	$	23,906

	June 30, 2016
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	95,906	$	—	$	—		$	95,906	$	—

Level 1
Money market funds	13,362		—		—			13,362		—

	13,362		—		—			13,362		—

Level 2
Commercial paper	14,704		—		—			8,938		5,766
U.S. government agency securities	28,000		7		(17		)	—		27,990
U. S. treasury securities	3,997		1		—			—		3,998
Municipal debt securities	1,565		—		—			1,565		—
Corporate debt securities	9,491		—		(6		)	—		9,485

	57,757		8		(23		)	10,503		47,239

Total	$	167,025	$	8	$	(23	)	$	119,771	$	47,239

Certain investments in the table above are classified as having Level 2 inputs because quoted prices in an active market are not readily accessible for those specific financial assets, or the Company may have relied on alternative pricing methods that do not rely exclusively on quoted prices to determine the fair value of the investments.

The Company had investments that were in an unrealized loss position as of March 31, 2017. The Company determined that (i) it does not have the intent to sell any of these investments and (ii) it is not likely that it will be required to sell any of these investments before recovery of the entire amortized cost basis. The Company reviews its investments quarterly to identify and evaluate investments that have an indication of possible impairment. As of March 31, 2017, the Company anticipates that it will recover the entire carrying value of such investments and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the three and nine months ended March 31, 2017.

Contractual maturities of available-for-sale securities at March 31, 2017 were as follows (in thousands):

	March 31, 2017
	Amortized		Estimated
	Cost		Fair Value
Due in 1 year or less	$	9,000	$	8,983
Due in 1-2 years	14,997		14,923

	$	23,997	$	23,906

The following table summarizes the available-for-sale debt securities that were in a continuous unrealized loss position, but were not deemed to be other-than-temporarily impaired (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Gross					Gross					Gross
	Unrealized			Estimated		Unrealized			Estimated		Unrealized			Estimated
	Losses			Fair Value		Losses			Fair Value		Losses			Fair Value
March 31, 2017
Debt Securities:
U. S. government agency securities	$	(86	)	$	20,912	$	(5	)	$	2,994	$	(91	)	$	23,906

Total	$	(86	)	$	20,912	$	(5	)	$	2,994	$	(91	)	$	23,906

June 30, 2016
Debt Securities:
Corporate debt securities	$	(3	)	$	6,325	$	(3	)	$	3,160	$	(6	)	$	9,485
U. S. government agency securities	—			—		(17		)	19,988		(17		)	19,988

Total	$	(3	)	$	6,325	$	(20	)	$	23,148	$	(23	)	$	29,473

The Company held a total of 8 positions as of March 31, 2017 and 11 positions as of June 30, 2016 that were in an unrealized loss position. Based on the Company’s review of these securities, the Company believes it had no other-than-temporary impairments on these securities as of March 31, 2017 and June 30, 2016 because it does not intend to sell these securities and believes it is not more likely than not that it will be required to sell these securities before the recovery of their amortized cost basis. Gross realized gains and gross realized losses were insignificant for the three and nine months ended March 31, 2017 and the year ended June 30, 2016.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt

9 Months Ended

Mar. 31, 2017

Debt

Debt

8. Debt

First Lien Senior Secured Term Loan due January 2021 (Secured Loan)

In January 2016, the Company closed a $70.0 million first lien senior secured debt financing agreement (as amended, the “Secured Loan”) with Cerberus Business Finance, LLC, as collateral and administrative agent. As required by the terms of the financing, upon the closing of the financing, the Company used a portion of the net proceeds from the financing to repurchase approximately $63.4 million in aggregate principal amount of the 3.75% Convertible Senior Notes.

The Secured Loan is repayable in consecutive quarterly installments of $875,000 with the final payment due on the maturity date. The Secured Loan matures on the earlier of: (i) January 11, 2021 and (ii) the date that is 120 days prior to the scheduled maturity date of the 3.5% Convertible Senior Notes maturing February 1, 2018 unless the Company has set aside specifically identifiable funds raised from new common equity or new debt equal to the then-outstanding principal amount of the 3.5% Convertible Senior Notes. The Company may, at its election, repay the Secured Loan at any time and if so, the Company will be required to pay a prepayment premium of 2% of the outstanding amount if the Secured Loan is repaid or accelerated within the first year and 1% of the outstanding amount if the Secured Loan is repaid or accelerated within the second year. The Secured Loan is secured by first-priority liens on substantially all the assets of the Company.

Interest under the Secured Loan is payable monthly at a variable rate per annum equal to, at the Company’s option, (i) the LIBOR Rate for one month plus an applicable margin of 7.00% (subject to a LIBOR Rate floor of 1.00% per annum), or (ii) a Reference Rate, which is the higher of 1) 3.25%, 2) Federal Funds Rate plus 0.5%, 3) the LIBOR rate for 1 month plus 1%, and 4) the US Prime Rate as published in the Wall Street Journal, plus an applicable margin of 4.75% per annum. As part of the amendment in March 2017, discussed further below, the applicable margins for the LIBOR and Reference Rate increased to 7.50% and 5.25%, respectively, and these margins will remain in effect until certain specified conditions are met.

Under the terms of this Secured Loan, the Company must comply with certain customary financial and non-financial covenants, including covenants for secured leverage, total leverage, fixed charges, EBITDA, capital expenditures and other covenants as defined in the agreement. The Company was in compliance with the required covenants as of March 31, 2017, and June 30, 2016.

In November 2016, Company and Cerberus amended the Secured Loan, which modified the compliance levels of certain financial covenants and specified that the Company pay a fee of $0.3 million. In conjunction with the amendment, the Company repaid $5.0 million of the outstanding principal amount. In March 2017, the Secured Loan was further amended, which (i) modified the compliance levels and definitions of certain financial covenants (ii) increased the applicable interest rate margins under the Secured Loan by 0.50% until certain specified conditions are met, (iii) required the Company to obtain a letter of credit in the amount of $12.5 million for the benefit of the administrative agent, which is drawable and will be applied to any outstanding principal balance upon the occurrence or nonoccurrence of certain conditions and events and (iv) specified that the Company pay a fee of $0.3 million.

The net proceeds from the offering, after deducting the initial purchaser’s discount and commission and the related offering costs, were approximately $65.5 million. The offering costs of $3.1 million and the initial purchaser’s discount and commission of $1.4 million are classified within long-term debt on the condensed consolidated balance sheets and are being amortized to interest expense using the effective interest method over five years. The funds associated with the $12.5 million letter of credit were reclassified from cash and cash equivalents to long-term restricted cash on the condensed consolidated balance sheet at the time of the amendment in March 2017.

3.75% Convertible Senior Notes due August 2016

In August 2011, the Company issued the 3.75% Convertible Senior Notes to certain qualified institutional buyers, or QIBs. The 3.75% Convertible Senior Notes were offered and sold to the QIBs pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or Rule 144A. The net proceeds from the $100 million offering, after deducting the initial purchaser’s discount and commission and the related offering costs, were approximately $96.1 million. The offering costs and the initial purchaser’s discount and commission were amortized to interest expense using the effective interest method over five years. The 3.75% Convertible Senior Notes bore interest at a rate of 3.75% per year, payable semi-annually in arrears in cash on February 1 and August 1 of each year, beginning on February 1, 2012. The 3.75% Convertible Senior Notes matured on August 1, 2016. A portion of these notes were redeemed in January 2016, and the remainder of these notes was redeemed on August 1, 2016, as discussed further below.

The 3.75% Convertible Senior Notes were issued under an Indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Holders of the 3.75% Convertible Senior Notes may convert their 3.75% Convertible Senior Notes at any time on or after May 1, 2016 until the close of business on the business day immediately preceding the maturity date. Prior to May 1, 2016, holders of the 3.75% Convertible Senior Notes could convert their 3.75% Convertible Senior Notes only under the following circumstances: (1) during any calendar quarter after the calendar quarter ending September 30, 2011, and only during such calendar quarter, if the closing sale price of the Company’s common stock for each of 20 or more trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price in effect on the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading-day period (such five consecutive trading-day period, the “Note Measurement Period”) in which the trading price per $1,000 principal amount of 3.75% Convertible Senior Notes for each trading day of that Note Measurement Period was equal to or less than 98% of the product of the closing sale price of shares of the Company’s common stock and the applicable conversion rate for such trading day; (3) if the Company calls any or all of the 3.75% Convertible Senior Notes for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate transactions as described in the Indenture. Upon conversion by holders of the 3.75% Convertible Senior Notes, the Company will have the right to pay or deliver, as the case may be, cash, shares of common stock of the Company or a combination thereof, at the Company’s election. At any time on or prior to the 33rd business day immediately preceding the maturity date, the Company may irrevocably elect to (a) deliver solely shares of common stock of the Company in respect of the Company’s conversion obligation or (b) pay cash up to the aggregate principal amount of the 3.75% Convertible Senior Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock of the Company or a combination thereof in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 3.75% Convertible Senior Notes being converted. The initial conversion rate was 105.5548 shares of the Company’s common stock per $1,000 principal amount of 3.75% Convertible Senior Notes (which represents an initial conversion price of approximately $9.47 per share of the Company’s common stock).

In accordance with ASC 470-20, Debt with Conversion and Other Options, the Company separately accounts for the liability and equity conversion components of the 3.75% Convertible Senior Notes. The principal amount of the liability component of the 3.75% Convertible Senior Notes was $75.9 million as of the date of issuance based on the present value of its cash flows using a discount rate of 10%, our approximate borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature. The carrying value of the equity conversion component was $24.1 million. A portion of the initial purchaser’s discount and commission and the offering costs totaling $0.9 million was allocated to the equity conversion component. The liability component is being accreted to the principal amount of the 3.75% Convertible Senior Notes using the effective interest method over five years.

In January 2016, the Company repurchased approximately $63.4 million in aggregate principal amount of the 3.75% Convertible Senior Notes for $66.6 million in cash. In August 2016, the Company settled the remaining 3.75% Convertible Senior Notes for approximately $36.6 million aggregate principal amount and $0.7 million accrued interest for approximately $37.3 million in cash.

3.50% Convertible Senior Notes due February 2018

In February 2013, the Company issued $115.0 million aggregate principal amount of its 3.50% Convertible Senior Notes to certain Qualified Institutional Buyers or QIBs. The 3.50% Convertible Senior Notes were offered and sold to the QIBs pursuant to Rule 144A. The net proceeds from the offering, after deducting the initial purchaser’s discount and commission and the related offering costs, were approximately $110.5 million. The offering costs and the initial purchaser’s discount and commission are both being amortized to interest expense using the effective interest method over five years. The 3.50% Convertible Senior Notes bear interest at a rate of 3.50% per year, payable semi-annually in arrears in cash on February 1 and August 1 of each year, which began on August 1, 2013. The 3.50% Convertible Senior Notes will mature on February 1, 2018, unless earlier repurchased, redeemed or converted.

In April 2014, through a series of transactions, the Company refinanced approximately $70.3 million aggregate principal amount of the 3.50% Convertible Senior Notes with approximately $70.3 million aggregate principal amount of the Company’s new 3.50% Series A Convertible Senior Notes due 2018 (the “3.50% Series A Convertible Notes”).

The 3.50% Convertible Notes were issued under an Indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Holders of the 3.50% Convertible Notes may convert their 3.50% Convertible Notes at any time until the close of business on the business day immediately preceding the maturity date. The 3.50% Convertible Notes are convertible, as described below into common stock of the Company at an initial conversion rate equal to 187.6877 shares of common stock per $1,000 principal amount of the 3.50% Convertible Notes, which is equivalent to a conversion price of approximately $5.33 per share of common stock, subject to adjustment.

Holders of the 3.50% Convertible Notes who convert their 3.50% Convertible Notes in connection with a “make-whole fundamental change”, as defined in the Indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, in the event of a “fundamental change,” as defined in the Indenture, holders of the 3.50% Convertible Notes may require the Company to purchase all or a portion of their 3.50% Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of 3.50% Convertible Notes, plus accrued and unpaid interest, if any, to, but not including, the fundamental change repurchase date.

In accordance with guidance in ASC 470-20, Debt with Conversion and Other Options and ASC 815-15, Embedded Derivatives, the Company determined that the embedded conversion components of the 3.50% Convertible Note do not require bifurcation and separate accounting. The remaining $44.7 million principal amount of the 3.50% Convertible Note has been recorded in short-term Debt on the condensed consolidated balance sheet as of March 31, 2017.

3.50% Series A Convertible Senior Notes due February 2018

In April 2014, the Company entered into note exchange agreements with certain holders (the “Participating Holders”) of the 3.50% Convertible Notes to refinance approximately $70.3 million aggregate principal amount of the 3.50% Convertible Notes with approximately $70.3 million aggregate principal amount of the 3.50% Series A Convertible Notes. Pursuant to the note exchange agreements, the Company also paid the Participating Holders an aggregate of approximately $0.4 million in cash in connection with such transactions. The principal amount of 3.50% Convertible Notes refinanced for each $1,000 principal amount of the 3.50% Series A Convertible Notes was $1,000 and the amount in cash paid per $1,000 principal amount of such 3.50% Convertible Notes delivered was determined in individual negotiations between the Company and each Participating Holder. The 3.50% Series A Convertible Notes have the same interest rate, maturity and other terms as the 3.50% Convertible Notes, except that the 3.50% Series A Convertible Notes are convertible into cash, shares of the Company’s common stock or a combination of cash and shares of common stock, at the Company’s option.

The 3.50% Series A Convertible Notes were issued under an Indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Holders of the 3.50% Series A Convertible Notes may convert their Securities at any time on or after November 1, 2017 until the close of business on the business day immediately preceding the maturity date. Prior to November 1, 2017, holders of the 3.50% Series A Convertible Notes may convert their securities only under the following circumstances: (1) during any calendar quarter after the calendar quarter ending September 30, 2014, and only during such calendar quarter, if the closing sale price of the Company’s common stock for each of 20 or more trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price in effect on the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading-day period (such five consecutive trading-day period, the “Note Measurement Period”) in which the trading price per $1,000 principal amount of 3.50% Series A Convertible Notes for each trading day of that Note Measurement Period was equal to or less than 98% of the product of the closing sale price of shares of the Company’s common stock and the applicable conversion rate for such trading day; or (3) upon the occurrence of specified corporate transactions as described in the Indenture. Upon conversion by holders of the 3.50% Series A Convertible Notes, the Company will have the right to pay or deliver, as the case may be, cash, shares of common stock of the Company or a combination thereof, at the Company’s election. At any time on or prior to the 17th business day immediately preceding the maturity date, the Company may irrevocably elect to (a) deliver solely shares of common stock of the Company in respect of the Company’s conversion obligation or (b) pay cash up to the aggregate principal amount of the 3.50% Series A Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock of the Company or a combination thereof in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 3.50% Series A Convertible Notes being converted. The initial conversion rate is 187.6877 shares of the Company’s common stock per $1,000 principal amount of 3.50% Series A Convertible Notes (which represents an initial conversion price of approximately $5.33 per share of the Company’s common stock). The conversion rate, and thus the conversion price, is subject to adjustment as further described below.

Holders of the 3.50% Series A Convertible Notes who convert their notes in connection with a “make-whole fundamental change”, as defined in the Indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, in the event of a “fundamental change,” as defined in the Indenture, holders of the 3.50% Series A Convertible Notes may require the Company to purchase all or a portion of their 3.50% Series A Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 3.50% Series A Convertible Notes, plus accrued and unpaid interest, if any, to, but not including, the fundamental change repurchase date.

In accordance with Accounting Standards Codification, or ASC 470-20, Debt with Conversion and Other Options, the Company separately accounts for the liability and equity conversion components of the 3.50% Series A Convertible Notes. The principal amount of the liability component of the 3.50% Series A Convertible Notes was $62.5 million as of the date of issuance based on the present value of its cash flows using a discount rate of 7%, our approximate borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature. The carrying value of the equity conversion component was $7.9 million. In addition, the portion of the cash amount paid to the Participating Holders totaling $0.4 million was allocated to the debt discount with the remaining $47,000 to the equity component. The liability component is being accreted to the principal amount of the 3.50% Series A Convertible Notes using the effective interest method through the maturity in February 2018.

The following table presents the carrying values of all Convertible Notes and notes issued pursuant to the Secured Loan (collectively, “Notes”) as of March 31, 2017 (in thousands):

				3.50%			3.50%
	Secured			Convertible			Series A
	Loan			Notes			Convertible Notes			Total
Principal amount of the Notes	$	61,500		$	44,654		$	70,346		$	176,500
Unamortized debt costs	(2,322		)	(784		)	—			(3,106		)
Unamortized debt discount	(1,343		)	—			(2,014		)	(3,357		)

Net carrying amount	$	57,835		$	43,870		$	68,332		$	170,037

The net carrying amount of the equity conversion component related to the 3.5% Series A Convertible Note was approximately $7.8 million at March 31, 2017.

The fair value of the Company’s 3.50% Convertible Notes was $48.8 million and $51.5 million at March 31, 2017 and June 30, 2016, respectively. The fair value of the Company’s 3.50% Series A Convertible Notes was $76.9 million and $81.1 million at March 31, 2017 and June 30, 2016, respectively. These borrowings are valued based on the closing trading price per $100 of the Convertible Notes as of the last day of trading for the period and are classified as Level 2 within the fair value hierarchy.

The carrying value of the Company’s Secured Loan approximates its estimated fair value as these borrowings have a variable rate structure that is based on a market observable interest rate that resets periodically. The Secured Loan is classified as Level 2 within the fair value hierarchy.

A summary of interest expense on the Notes is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Interest expense related to contractual interest coupon	$	2,255	$	2,677	$	7,125	$	6,612
Interest expense related to amortization of debt discount	661		1,285		2,117		5,155
Interest expense related to amortization of debt issuance costs	383		508		1,165		1,279

	$	3,299	$	4,470	$	10,407	$	13,046

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2017

Basis of Presentation and Principles of Consolidation

Use of Estimates

Concentration of Credit and Other Risks

Revenue Recognition

Product and Service Revenue

Net Income (Loss) Per Common Share

Basic and diluted net income (loss) per share is computed by dividing net income (loss) attributable to stockholders by the weighted average number of common shares outstanding during the period.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per common share follows (in thousands):

	Three Months Ended					Nine Months Ended
	March 31,					March 31,
	2017			2016		2017			2016
Numerator:
Net income (loss) used to compute basic and diluted net income (loss) per share	$	(5,029	)	$	756	$	(24,324	)	$	(18,297	)

Denominator:
Weighted average shares used to compute basic net income (loss) per share	82,913			80,860		82,268			80,320
Weighted average effect of dilutive stock options	—			101		—			—
Weighted average effect of dilutive RSUs, PSUs and MSUs	—			610		—			—
Weighted average effect of 3.50% Series A convertible notes	—			500		—			—

Weighted average shares used to compute diluted net income (loss) per share	82,913			82,071		82,268			80,320

The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands):

	As of March 31,
	2017	2016
Stock options	2,510	1,981
RSUs, PSUs and MSUs	5,492	3,558
3.50% Convertible Notes	8,378	8,378
3.50% Series A Convertible Notes	—	—

	16,380	13,917

Outstanding Convertible Notes - Diluted Share Impact

Outstanding Convertible Notes—Diluted Share Impact

Segment Information

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Americas	$	38,720	$	32,667	$	118,545	$	128,957
Europe, Middle East, India and Africa	21,785		43,643		68,705		102,461
Asia-Pacific	13,520		16,505		35,092		49,226
Japan	23,287		12,469		48,978		23,183

Total	$	97,312	$	105,284	$	271,320	$	303,827

Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands):

	March 31,		June 30,
	2017		2016
Americas	$	19,182	$	23,842
Europe, Middle East, India and Africa	706		551
Asia-Pacific	1,653		1,342
Japan	1,812		2,143

Total	$	23,353	$	27,878

Recent Accounting Standard Update Not Yet Effective

Accounting Standard Updates

Recent Accounting Standard Update Not Yet Effective

Accounting Standard Update Recently Adopted

Accounting Standard Updates

Accounting Standard Update Recently Adopted

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Mar. 31, 2017

Summary of Significant Accounting Policies

Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per common share

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per common share follows (in thousands):

	Three Months Ended					Nine Months Ended
	March 31,					March 31,
	2017			2016		2017			2016
Numerator:
Net income (loss) used to compute basic and diluted net income (loss) per share	$	(5,029	)	$	756	$	(24,324	)	$	(18,297	)

Denominator:
Weighted average shares used to compute basic net income (loss) per share	82,913			80,860		82,268			80,320
Weighted average effect of dilutive stock options	—			101		—			—
Weighted average effect of dilutive RSUs, PSUs and MSUs	—			610		—			—
Weighted average effect of 3.50% Series A convertible notes	—			500		—			—

Weighted average shares used to compute diluted net income (loss) per share	82,913			82,071		82,268			80,320

Schedule of all potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per common share

The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands):

	As of March 31,
	2017	2016
Stock options	2,510	1,981
RSUs, PSUs and MSUs	5,492	3,558
3.50% Convertible Notes	8,378	8,378
3.50% Series A Convertible Notes	—	—

	16,380	13,917

Schedule of revenue by geographic region

The following summarizes revenue by geographic region (in thousands):

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Americas	$	38,720	$	32,667	$	118,545	$	128,957
Europe, Middle East, India and Africa	21,785		43,643		68,705		102,461
Asia-Pacific	13,520		16,505		35,092		49,226
Japan	23,287		12,469		48,978		23,183

Total	$	97,312	$	105,284	$	271,320	$	303,827

Schedule of geographic areas in which the Company has long lived tangible assets

Information regarding geographic areas in which the Company has long lived tangible assets is as follows (in thousands):

	March 31,		June 30,
	2017		2016
Americas	$	19,182	$	23,842
Europe, Middle East, India and Africa	706		551
Asia-Pacific	1,653		1,342
Japan	1,812		2,143

Total	$	23,353	$	27,878

Balance Sheet Components (Tables)

9 Months Ended

Mar. 31, 2017

Balance Sheet Components

Schedule of financing receivables

A summary of the Company’s financing receivables is presented as follows (in thousands):

				Financed
	Lease			Service Contracts
March 31, 2017	Receivables			and Other		Total
Gross	$	4,185		$	4,288	$	8,473
Residual value	—			—		—
Unearned income	(465		)	—		(465		)
Allowance for credit loss	—			—		—

Total, net	$	3,720		$	4,288	$	8,008

Reported as:
Current	$	753		$	1,793	$	2,546
Non-current	2,967			2,495		5,462

Total, net	$	3,720		$	4,288	$	8,008

				Financed
	Lease			Service Contracts
June 30, 2016	Receivables			and Other		Total
Gross	$	4,998		$	5,840	$	10,838
Residual value	—			—		—
Unearned income	(623		)	—		(623		)
Allowance for credit loss	—			—		—

Total, net	$	4,375		$	5,840	$	10,215

Reported as:
Current	$	840		$	1,778	$	2,618
Non-current	3,535			4,062		7,597

Total, net	$	4,375		$	5,840	$	10,215

Schedule of future minimum lease payments receivable

Future minimum lease payments to be received as of March 31, 2017 are presented as follows (in thousands):

Year Ending June 30,	Amount
2017 (remaining 3 months)	$	155
2018	930
2019	930
2020	930
2021	930
2022	310

Total	$	4,185

Schedule of inventories

Inventories consisted of the following (in thousands):

	March 31,		June 30,
	2017		2016
Raw materials	$	45,815	$	50,480
Work-in-process	17,477		20,190
Finished goods	53,281		45,317

Inventories	$	116,573	$	115,987

Schedule of property and equipment, net

Property and equipment, net consisted of the following (in thousands):

	March 31,			June 30,
	2017			2016
Furniture and fixtures	$	4,511		$	4,527
Computer and office equipment	11,852			11,485
Software	11,362			11,104
Leasehold improvements	23,030			21,632
Machinery and equipment	50,120			47,171
Construction in progress	2,071			4,412

	102,946			100,331
Less: Accumulated depreciation	(79,593		)	(72,453		)

Property and equipment, net	$	23,353		$	27,878

Goodwill and Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets

Schedule of goodwill

Activity related to goodwill consisted of the following (in thousands):

	Nine Months			Year
	Ended			Ended
	March 31,			June 30,
	2017			2016
Balance at the beginning of the period	$	57,848		$	58,054
Currency translation	(106		)	(206		)

Balance at the end of the period	$	57,742		$	57,848

Schedule of intangible assets associated with completed acquisitions

The Company’s unamortized intangible assets associated with completed acquisitions at March 31, 2017 and June 30, 2016 are as follows (in thousands):

		March 31, 2017							June 30, 2016
		Gross							Gross
		Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Useful Lives	Amount		Amortization			Amount		Amount		Amortization			Amount
	(in years)
Developed technology	5 — 6	$	46,743	$	(45,097	)	$	1,646	$	46,743	$	(39,132	)	$	7,611

Schedule of estimated future amortization expense of purchased intangible assets

The estimated future amortization expense of purchased intangible assets as of March 31, 2017 is as follows (in thousands):

Year Ending June 30,	Amount
2017 (remaining 3 months)	$	1,646

Financial Instruments (Tables)

9 Months Ended

Mar. 31, 2017

Financial Instruments

Summary of amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category for cash, cash equivalents and short-term investments

	March 31, 2017
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	58,669	$	—	$	—		$	58,669	$	—

Level 1
Money market funds	1,501		—		—			1,501		—


Level 2
U.S. government agency securities	23,997		—		(91		)	—		23,906

Total	$	84,167	$	—	$	(91	)	$	60,170	$	23,906

	June 30, 2016
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	95,906	$	—	$	—		$	95,906	$	—

Level 1
Money market funds	13,362		—		—			13,362		—

	13,362		—		—			13,362		—

Level 2
Commercial paper	14,704		—		—			8,938		5,766
U.S. government agency securities	28,000		7		(17		)	—		27,990
U. S. treasury securities	3,997		1		—			—		3,998
Municipal debt securities	1,565		—		—			1,565		—
Corporate debt securities	9,491		—		(6		)	—		9,485

	57,757		8		(23		)	10,503		47,239

Total	$	167,025	$	8	$	(23	)	$	119,771	$	47,239

Schedule of contractual maturities of available-for-sale securities

Contractual maturities of available-for-sale securities at March 31, 2017 were as follows (in thousands):

	March 31, 2017
	Amortized		Estimated
	Cost		Fair Value
Due in 1 year or less	$	9,000	$	8,983
Due in 1-2 years	14,997		14,923

	$	23,997	$	23,906

Schedule of available-for-sale debt securities that were in a continuous unrealized loss position

The following table summarizes the available-for-sale debt securities that were in a continuous unrealized loss position, but were not deemed to be other-than-temporarily impaired (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
	Gross					Gross					Gross
	Unrealized			Estimated		Unrealized			Estimated		Unrealized			Estimated
	Losses			Fair Value		Losses			Fair Value		Losses			Fair Value
March 31, 2017
Debt Securities:
U. S. government agency securities	$	(86	)	$	20,912	$	(5	)	$	2,994	$	(91	)	$	23,906

Total	$	(86	)	$	20,912	$	(5	)	$	2,994	$	(91	)	$	23,906

June 30, 2016
Debt Securities:
Corporate debt securities	$	(3	)	$	6,325	$	(3	)	$	3,160	$	(6	)	$	9,485
U. S. government agency securities	—			—		(17		)	19,988		(17		)	19,988

Total	$	(3	)	$	6,325	$	(20	)	$	23,148	$	(23	)	$	29,473

Debt (Tables)

9 Months Ended

Mar. 31, 2017

Debt

Schedule of carrying values of all Convertible Notes

The following table presents the carrying values of all Convertible Notes and notes issued pursuant to the Secured Loan (collectively, “Notes”) as of March 31, 2017 (in thousands):

				3.50%			3.50%
	Secured			Convertible			Series A
	Loan			Notes			Convertible Notes			Total
Principal amount of the Notes	$	61,500		$	44,654		$	70,346		$	176,500
Unamortized debt costs	(2,322		)	(784		)	—			(3,106		)
Unamortized debt discount	(1,343		)	—			(2,014		)	(3,357		)

Net carrying amount	$	57,835		$	43,870		$	68,332		$	170,037

Summary of interest expense on all Convertible Notes

A summary of interest expense on the Notes is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Interest expense related to contractual interest coupon	$	2,255	$	2,677	$	7,125	$	6,612
Interest expense related to amortization of debt discount	661		1,285		2,117		5,155
Interest expense related to amortization of debt issuance costs	383		508		1,165		1,279

	$	3,299	$	4,470	$	10,407	$	13,046

Summary of Significant Accounting Policies - Net Income (Loss) Per Common Share and Outstanding Convertible Notes - Diluted Share Impact (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Aug. 31, 2016	Jan. 31, 2016	Apr. 17, 2014	Feb. 28, 2013	Aug. 01, 2011
Numerator:
Net income (loss) used to compute basic and diluted net income (loss) per share	$ (5,029)	$ 756	$ (24,324)	$ (18,297)
Denominator:
Weighted average shares used to compute basic net income (loss) per share	82,913	80,860	82,268	80,320
Weighted average shares used to compute diluted net income (loss) per share	82,913	82,071	82,268	80,320
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share (in shares)			16,380	13,917
3.75% Convertible Notes
Denominator:
Interest rate (as a percent)	3.75%		3.75%		3.75%	3.75%			3.75%
Conversion shares outstanding principal amount excluded in the potentially diluted shares				10,600
3.50% Convertible Notes
Denominator:
Interest rate (as a percent)	3.50%	3.50%	3.50%	3.50%				3.50%
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share (in shares)			8,378	8,378
3.50% Series A Convertible Notes
Denominator:
Weighted average effect of convertible notes		500
Interest rate (as a percent)	3.50%	3.50%	3.50%	3.50%			3.50%
Conversion shares outstanding principal amount excluded in the potentially diluted shares			13,200
Stock options
Denominator:
Weighted average effect of dilutive awards		101
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share (in shares)			2,510	1,981
RSUs, PSUs and MSUs
Denominator:
Weighted average effect of dilutive awards		610
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share (in shares)			5,492	3,558

Balance Sheet Components (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Balance Sheet Components (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Financing receivables
Sales-type leases	$ 3,000		$ 3,000		$ 3,500
Accounts receivable with contractual maturities of more than one year	2,500		2,500		4,100
Gross	8,473		8,473		10,838
Unearned income	(465)		(465)		(623)
Total, net	8,008		8,008		10,215
Current	2,546		2,546		2,618
Non-current	5,462		5,462		7,597
Capital leases future minimum payments receivable
2017 (remaining 3 months)	155		155
2018	930		930
2019	930		930
2020	930		930
2021	930		930
2022	310		310
Total	4,185		4,185
Inventories
Raw materials	45,815		45,815		50,480
Work-in-process	17,477		17,477		20,190
Finished goods	53,281		53,281		45,317
Inventories	116,573		116,573		115,987
Property and equipment, net
Property and equipment, gross	102,946		102,946		100,331
Less: Accumulated depreciation	(79,593)		(79,593)		(72,453)
Property and equipment, net	23,353		23,353		27,878
Depreciation expense	2,600	$ 2,600	7,900	$ 7,700
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	4,511		4,511		4,527
Computer and office equipment
Property and equipment, net
Property and equipment, gross	11,852		11,852		11,485
Software
Property and equipment, net
Property and equipment, gross	11,362		11,362		11,104
Leasehold improvements
Property and equipment, net
Property and equipment, gross	23,030		23,030		21,632
Machinery and equipment
Property and equipment, net
Property and equipment, gross	50,120		50,120		47,171
Construction in progress
Property and equipment, net
Property and equipment, gross	2,071		2,071		4,412
Lease Receivables
Financing receivables
Gross	4,185		4,185		4,998
Unearned income	(465)		(465)		(623)
Total, net	3,720		3,720		4,375
Current	753		753		840
Non-current	2,967		2,967		3,535
Financed Service Contracts and Other
Financing receivables
Gross	4,288		4,288		5,840
Total, net	4,288		4,288		5,840
Current	1,793		1,793		1,778
Non-current	$ 2,495		$ 2,495		$ 4,062

Financial Instruments - Investment (Details) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
Financial Instruments - Investment (Details) $ in Thousands	Mar. 31, 2017 USD ($) position	Mar. 31, 2017 USD ($) position	Jun. 30, 2016 USD ($) position
Cash, cash equivalents and short-term investments
Amortized Cost	$ 84,167	$ 84,167	$ 167,025
Gross Unrealized Gains			8
Gross Unrealized Losses	(91)	(91)	(23)
Cash and Cash Equivalents	60,170	60,170	119,771
Short-term Investments	23,906	23,906	47,239
Other-than-temporary impairments	0	0	0
Amortized Cost
Due in 1 year or less	9,000	9,000
Due in 1-2 years	14,997	14,997
Total Amortized Cost	23,997	23,997
Estimated Fair Value
Due in 1 year or less	8,983	8,983
Due in 1-2 years	14,923	14,923
Available-for-sale Securities	23,906	23,906
Gross Unrealized Losses
Less Than 12 Months		(86)	(3)
12 Months or Greater		(5)	(20)
Total		(91)	(23)
Estimated Fair Value
Less Than 12 Months	20,912	20,912	6,325
12 Months or Greater	2,994	2,994	23,148
Total	$ 23,906	$ 23,906	$ 29,473
Number of positions held in an unrealized loss position \| position	8	8	11
U.S. government agency securities
Gross Unrealized Losses
Less Than 12 Months		$ (86)
12 Months or Greater		(5)	$ (17)
Total		(91)	(17)
Estimated Fair Value
Less Than 12 Months	$ 20,912	20,912
12 Months or Greater	2,994	2,994	19,988
Total	23,906	23,906	19,988
Corporate debt securities
Gross Unrealized Losses
Less Than 12 Months			(3)
12 Months or Greater			(3)
Total			(6)
Estimated Fair Value
Less Than 12 Months			6,325
12 Months or Greater			3,160
Total			9,485
Cash
Cash, cash equivalents and short-term investments
Amortized Cost	58,669	58,669	95,906
Cash and Cash Equivalents	58,669	58,669	95,906
Level 1
Cash, cash equivalents and short-term investments
Amortized Cost			13,362
Cash and Cash Equivalents			13,362
Level 1 \| Money market funds
Cash, cash equivalents and short-term investments
Amortized Cost	1,501	1,501	13,362
Cash and Cash Equivalents	1,501	1,501	13,362
Level 2
Cash, cash equivalents and short-term investments
Amortized Cost			57,757
Gross Unrealized Gains			8
Gross Unrealized Losses			(23)
Cash and Cash Equivalents			10,503
Short-term Investments			47,239
Level 2 \| Commercial paper
Cash, cash equivalents and short-term investments
Amortized Cost			14,704
Cash and Cash Equivalents			8,938
Short-term Investments			5,766
Level 2 \| U.S. government agency securities
Cash, cash equivalents and short-term investments
Amortized Cost	23,997	23,997	28,000
Gross Unrealized Gains			7
Gross Unrealized Losses	(91)	(91)	(17)
Short-term Investments	$ 23,906	$ 23,906	27,990
Level 2 \| U.S. treasury securities
Cash, cash equivalents and short-term investments
Amortized Cost			3,997
Gross Unrealized Gains			1
Short-term Investments			3,998
Level 2 \| Municipal debt securities
Cash, cash equivalents and short-term investments
Amortized Cost			1,565
Cash and Cash Equivalents			1,565
Level 2 \| Corporate debt securities
Cash, cash equivalents and short-term investments
Amortized Cost			9,491
Gross Unrealized Losses			(6)
Short-term Investments			$ 9,485

Commitments and Contingencies - Operating Lease Agreements (Details) - USD ($) $ in Thousands	1 Months Ended
	Nov. 30, 2016	Aug. 31, 2016	Jan. 31, 2016	Mar. 31, 2017	Jun. 30, 2016	Jan. 11, 2016	Aug. 01, 2011
Future minimum lease payments under non-cancelable operating lease agreements
2017 (remaining 3 months)				$ 2,144
2018				8,612
2019				6,596
2020				6,278
2021				5,931
Thereafter				18,694
Total				$ 48,255	$ 39,900
3.75% Convertible Notes
Operating Lease Agreements
Aggregate principal amount of debt issued		$ 36,600					$ 100,000
Interest rate (as a percent)		3.75%	3.75%	3.75%			3.75%
Cash paid to Participating Holders in connection with debt refinancing		$ 37,300	$ 66,600
Secured Loan
Operating Lease Agreements
Aggregate principal amount of debt issued						$ 70,000
Repayment of Secured Loan	$ 5,000

Debt (Details) - USD ($) $ / shares in Units, shares in Thousands				1 Months Ended					3 Months Ended		9 Months Ended
	Jan. 11, 2016	Apr. 17, 2014	Aug. 01, 2011	Nov. 30, 2016	Aug. 31, 2016	Jan. 31, 2016	Apr. 30, 2014	Feb. 28, 2013	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Debt
Cash and cash equivalents									$ 60,170,000		$ 60,170,000		$ 119,771,000
Other long-term assets									10,032,000		10,032,000		10,549,000
Carrying amount of the equity conversion component									7,800,000		7,800,000
Principal amount of the Notes									176,500,000		176,500,000
Unamortized debt costs									(3,106,000)		(3,106,000)
Unamortized debt discount									(3,357,000)		(3,357,000)
Net carrying amount									170,037,000		170,037,000
Interest expense related to contractual interest coupon									2,255,000	$ 2,677,000	7,125,000	$ 6,612,000
Interest expense related to amortization of debt discount									661,000	1,285,000	2,117,000	5,155,000
Interest expense related to amortization of debt issuance costs									383,000	508,000	1,165,000	1,279,000
Total interest expense recognized									3,299,000	$ 4,470,000	$ 10,407,000	$ 13,046,000
Secured Loan
Debt
Aggregate principal amount of debt issued	$ 70,000,000
Amendment fee				$ 300,000
Increase in interest rate margin (as a percent)											0.50%
Quarterly installment payment	$ 875,000
Proceeds from debt, net of costs											$ 65,500,000
Offering costs									3,100,000		3,100,000
Initial purchaser's discount and commission											$ 1,400,000
Prepayment premium if loan repaid or accelerated within the first year	2.00%
Prepayment premium if loan repaid or accelerated within the second year	1.00%
Repayment of Secured Loan				$ 5,000,000
Debt issuance costs, amortization period											5 years
Principal amount of the Notes									61,500,000		$ 61,500,000
Unamortized debt costs									(2,322,000)		(2,322,000)
Unamortized debt discount									(1,343,000)		(1,343,000)
Net carrying amount									57,835,000		57,835,000
Secured Loan \| Option (ii)
Debt
Interest rate (as a percent)	3.25%
Secured Loan \| Maximum \| 3.50% Convertible Notes
Debt
Debt instrument maturity before reference instrument maturity date	120 days
Secured Loan \| Letter of Credit
Debt
Borrowing capacity									12,500,000		12,500,000
Secured Loan \| Letter of Credit \| Reclassification
Debt
Cash and cash equivalents									(12,500,000)		(12,500,000)
Other long-term assets									$ 12,500,000		$ 12,500,000
Secured Loan \| One month LIBOR \| Option (i)
Debt
Margin on interest rate	7.00%								7.50%		7.50%
Secured Loan \| One month LIBOR \| Option (ii)
Debt
Margin on interest rate	1.00%
Secured Loan \| LIBOR \| Minimum \| Option (i)
Debt
Margin on interest rate	1.00%
Secured Loan \| Federal Funds Rate \| Option (ii)
Debt
Margin on interest rate	0.50%
Secured Loan \| US Prime Rate \| Option (ii)
Debt
Margin on interest rate	4.75%								5.25%		5.25%
3.75% Convertible Notes
Debt
Aggregate principal amount of debt issued			$ 100,000,000		$ 36,600,000
Interest rate (as a percent)			3.75%		3.75%	3.75%			3.75%		3.75%
Proceeds from debt, net of costs			$ 96,100,000
Amortization period			5 years
Debt issuance costs, amortization period			5 years
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be convertible into common stock											30 days
Number of consecutive business days immediately after any five consecutive trading day period during the note measurement period											5 days
Number of consecutive trading days before five consecutive business days during the note measurement period											5 days
Principal amount used for debt instrument conversion ratio									$ 1,000		$ 1,000
Number of working days preceding maturity date for delivery of shares or payment of cash											33 days
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares)											105.5548
Conversion price (in dollars per share)									$ 9.47		$ 9.47
Discount rate on liability component (as a percent)			10.00%
Carrying amount of the equity conversion component			$ 24,100,000
Debt issuance costs and discount allocated to equity conversion component			900,000
Principal amount of the Notes retired						$ 63,400,000
Cash paid to Participating Holders in connection with debt refinancing					$ 37,300,000	$ 66,600,000
Net carrying amount			$ 75,900,000
Total interest expense recognized					$ 700,000
3.75% Convertible Notes \| Minimum
Debt
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be convertible into common stock											20 days
Percentage of the closing sales price of the entity's common stock that the conversion price must exceed in order for the notes to be convertible											130.00%
3.75% Convertible Notes \| Maximum
Debt
Percentage of the trading price to the product of the sale price of the entity's common stock and the conversion rate											98.00%
3.50% Convertible Notes
Debt
Aggregate principal amount of debt issued								$ 115,000,000
Interest rate (as a percent)								3.50%	3.50%	3.50%	3.50%	3.50%
Proceeds from debt, net of costs								$ 110,500,000
Debt issuance costs, amortization period								5 years
Principal amount used for debt instrument conversion ratio									$ 1,000		$ 1,000
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares)											187.6877
Conversion price (in dollars per share)									$ 5.33		$ 5.33
Repurchase price, as percentage of principal amount, if company undergoes change of control											100.00%
Principal amount of the Notes									$ 44,654,000		$ 44,654,000
Aggregate principal amount of debt refinanced							$ 70,300,000
Conversion rate, amount of debt to be issued per $1000 of principal amount		$ 1,000
Unamortized debt costs									(784,000)		(784,000)
Net carrying amount									43,870,000		43,870,000
Fair value of convertible notes									$ 48,800,000		$ 48,800,000		51,500,000
3.50% Series A Convertible Notes
Debt
Aggregate principal amount of debt issued		$ 70,300,000
Interest rate (as a percent)		3.50%							3.50%	3.50%	3.50%	3.50%
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days in order for the notes to be convertible into common stock											30 days
Percentage of the closing sales price of the entity's common stock that the conversion price must exceed in order for the notes to be convertible											130.00%
Number of consecutive business days immediately after any five consecutive trading day period during the note measurement period											5 days
Number of consecutive trading days before five consecutive business days during the note measurement period											5 days
Principal amount used for debt instrument conversion ratio									$ 1,000		$ 1,000
Number of working days preceding maturity date for delivery of shares or payment of cash											17 days
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares)											187.6877
Conversion price (in dollars per share)									$ 5.33		$ 5.33
Discount rate on liability component (as a percent)											7.00%
Potentially dilutive shares outstanding										500
Principal amount of the Notes									$ 70,346,000		$ 70,346,000
Payments made to convertible note holders		$ 400,000
Repurchase price, as a percentage of the principal amount, in the event of a fundamental change, as defined in Indenture											100.00%
Portion of cash amount paid allocated to debt discount									400,000		$ 400,000
Portion of cash amount paid allocated to equity component									47,000		47,000
Unamortized debt discount									(2,014,000)		(2,014,000)
Net carrying amount									68,332,000		68,332,000
Fair value of convertible notes									$ 76,900,000		$ 76,900,000		$ 81,100,000
3.50% Series A Convertible Notes \| Minimum
Debt
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price for the notes to be convertible into common stock											20 days
3.50% Series A Convertible Notes \| Maximum
Debt
Percentage of the trading price to the product of the sale price of the entity's common stock and the conversion rate											98.00%
3.50% Convertible Notes and 3.50% Series A Convertible Notes
Debt
Fair value based on closing trading price											$ 100

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 747	$ 826
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	200,000,000	200,000,000
Common stock, issued shares	82,999,966	81,378,208
Common stock, outstanding shares	82,999,966	81,378,208

Subsequent Events	9 Months Ended
Subsequent Events	Mar. 31, 2017
Subsequent Events
Subsequent Events	10. Subsequent Events On April 24, 2017, the Company decided to eliminate the role of Chief Operating Officer following the conclusion of fiscal year 2017. As a consequence, Kelly Londy, the Company’s Executive Vice President, Chief Operating Officer, will be leaving the Company on July 5, 2017.

Summary of Significant Accounting Policies - Concentration Risk (Details) - customer	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Total accounts receivable \| Credit concentration risk
Concentration of Credit and Other Risks
Number of significant customers			1		1
Percentage of concentration risk			25.00%		18.00%
Total net revenue \| Customer concentration risk
Concentration of Credit and Other Risks
Number of significant customers	1	0	0	0
Percentage of concentration risk	13.00%
Total net revenue \| Customer concentration risk \| Minimum
Concentration of Credit and Other Risks
Percentage of concentration risk		10.00%	10.00%	10.00%

Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Share-Based Compensation (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Share-based compensation charges
Share-based compensation expense	$ 3,598	$ 3,567	$ 9,985	$ 9,446
Cost of revenue
Share-based compensation charges
Share-based compensation expense	519	448	1,461	1,270
Research and development
Share-based compensation charges
Share-based compensation expense	644	717	1,808	1,888
Selling and marketing
Share-based compensation charges
Share-based compensation expense	769	714	2,077	2,116
General and administrative
Share-based compensation charges
Share-based compensation expense	$ 1,666	$ 1,688	$ 4,639	$ 4,172

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Loss
Net unrealized loss on short-term investments	$ (91)	$ (15)
Cumulative foreign currency translation adjustment	350	1,121
Defined benefit pension obligation	(2,066)	(2,066)
Accumulated other comprehensive loss	$ (1,807)	$ (960)

Summary of Significant Accounting Policies - Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2017 USD ($) segment	Mar. 31, 2016 USD ($)	Jun. 30, 2016 USD ($)
Segment Information
Number of operating segments \| segment			1
Revenue	$ 97,312	$ 105,284	$ 271,320	$ 303,827
Long lived tangible assets	23,353		23,353		$ 27,878
Americas
Segment Information
Revenue	38,720	32,667	118,545	128,957
Long lived tangible assets	19,182		19,182		23,842
Europe, Middle East, India and Africa
Segment Information
Revenue	21,785	43,643	68,705	102,461
Long lived tangible assets	706		706		551
Asia-Pacific
Segment Information
Revenue	13,520	16,505	35,092	49,226
Long lived tangible assets	1,653		1,653		1,342
Japan
Segment Information
Revenue	23,287	$ 12,469	48,978	$ 23,183
Long lived tangible assets	$ 1,812		$ 1,812		$ 2,143

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016
Changes in the carrying amount of goodwill
Balance at the beginning of the period				$ 57,848	$ 58,054	$ 58,054
Currency translation				(106)		(206)
Balance at the end of the period	$ 57,742			57,742		57,848
Impairment of goodwill		$ 0
Amortization expense	2,000		$ 2,000	6,000	$ 6,000
Estimated future amortization expense of purchased intangible assets
2017 (remaining 3 months)	1,646			1,646
Developed technology
Changes in the carrying amount of goodwill
Gross Carrying Amount	46,743			46,743		46,743
Accumulated Amortization	(45,097)			(45,097)		(39,132)
Net Amount	$ 1,646			$ 1,646		$ 7,611
Developed technology \| Minimum
Changes in the carrying amount of goodwill
Useful Lives				5 years
Developed technology \| Maximum
Changes in the carrying amount of goodwill
Useful Lives				6 years