0001104659-17-066040 | 10-Q | XBRL Viewer

Document and Entity Information - shares	3 Months Ended
Sep. 30, 2017	Oct. 25, 2017
Document and Entity Information
Entity Registrant Name	ACCURAY INC
Entity Central Index Key	0001138723
Document Type	10-Q
Document Period End Date	Sep. 30, 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		83,918,728
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 67,916	$ 72,084
Short-term investments	23,931	23,909
Restricted cash	2,547	12,829
Accounts receivable, net of allowance for doubtful accounts of $428 and $420 as of September 30, 2017 and June 30, 2017, respectively	69,650	72,789
Inventories	113,421	105,054
Prepaid expenses and other current assets	16,909	18,988
Deferred cost of revenue	2,497	3,350
Total current assets	296,871	309,003
Property and equipment, net	21,672	23,062
Goodwill	57,863	57,812
Intangible assets, net	929	964
Restricted cash	333	322
Other assets	16,284	15,301
Total assets	393,952	406,464
Current liabilities:
Accounts payable	22,199	17,486
Accrued compensation	20,813	25,402
Other accrued liabilities	18,113	23,870
Short-term debt	39,151	113,023
Customer advances	19,364	16,926
Deferred revenue	80,303	87,785
Total current liabilities	199,943	284,492
Long-term liabilities:
Long-term other liabilities	10,414	10,068
Deferred revenue	16,080	13,823
Long-term debt	118,869	51,548
Total liabilities	345,306	359,931
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock, $0.001 par value; authorized: 200,000,000 shares as of September 30, 2017 and June 30, 2017, respectively; issued and outstanding: 83,754,665 and 83,739,804 shares at September 30, 2017 and June 30, 2017, respectively	84	84
Additional paid-in-capital	508,014	496,887
Accumulated other comprehensive income (loss)	316	(52)
Accumulated deficit	(459,768)	(450,386)
Total stockholders' equity	48,646	46,533
Total liabilities and stockholders' equity	$ 393,952	$ 406,464

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net revenue:
Products	$ 38,916	$ 35,599
Services	52,034	50,907
Total net revenue	90,950	86,506
Cost of revenue:
Cost of products	22,102	23,352
Cost of services	30,742	31,810
Total cost of revenue	52,844	55,162
Gross profit	38,106	31,344
Operating expenses:
Research and development	14,093	12,229
Selling and marketing	14,757	14,318
General and administrative	11,308	11,344
Total operating expenses	40,158	37,891
Loss from operations	(2,052)	(6,547)
Other expense, net	(6,571)	(4,005)
Loss before provision for income taxes	(8,623)	(10,552)
Provision for (benefit from) income taxes	759	(626)
Net loss	$ (9,382)	$ (9,926)
Net loss per share - basic and diluted	$ (0.11)	$ (0.12)
Weighted average common shares used in computing net loss per share:
Basic and diluted	83,747	81,576
Net loss	$ (9,382)	$ (9,926)
Foreign currency translation adjustment	346	119
Unrealized gain (loss) on investments, net of tax	22	(2)
Comprehensive loss	$ (9,014)	$ (9,809)

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (9,382)	$ (9,926)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,514	4,655
Share-based compensation	2,432	3,473
Amortization of debt issuance costs	448	403
Amortization and accretion of discount and premium on investments		41
Accretion of interest on debt	862	816
Provision for (recovery of) bad debt, net	8	(27)
Provision for write-down of inventories	354	303
Loss on disposal of property and equipment	11
Loss on extinguishment of debt	3,192
Changes in assets and liabilities:
Accounts receivable	1,932	757
Inventories	(8,792)	(1,517)
Prepaid expenses and other assets	2,506	964
Deferred cost of revenue	991	57
Accounts payable	4,791	1,768
Accrued liabilities	(11,653)	(4,985)
Customer advances	2,374	(926)
Deferred revenues	(5,615)	(2,619)
Net cash used in operating activities	(13,027)	(6,763)
Cash flows from investing activities
Purchases of property and equipment, net	(929)	(1,299)
Purchases of investments		(8,992)
Sales and maturities of investments		15,382
Net cash (used in) provided by investing activities	(929)	5,091
Cash flows from financing activities
Proceeds from employee stock plans	900	1,227
Taxes paid related to net share settlement of equity awards	(19)	(99)
Proceeds from issuance of convertible notes, net	27,282
Repurchase of convertible notes	(29,581)	(36,608)
Borrowings under revolving credit facility	43,686
Repayments under revolving credit facility	(43,435)
Net cash used in financing activities	(1,167)	(35,480)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	684	584
Net decrease in cash, cash equivalents and restricted cash	(14,439)	(36,568)
Cash, cash equivalents and restricted cash at beginning of period	85,235	122,133
Cash, cash equivalents and restricted cash at end of period	$ 70,796	$ 85,565

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2017
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements Accounting Pronouncement Recently Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting (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. The amendments in this standard are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted ASU No. 2016-09 as required in the first quarter of fiscal year 2018 and has elected to continue the use of its forfeiture estimation method for share-based payment awards. The adoption of ASU 2016-09 did not have a material impact on the Company’s consolidated financial statements. Accounting Pronouncements Not Yet Effective In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718)—Scope of Modification Accounting. This guidance redefines which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting for a share-based payment. This guidance will be effective for the Company in the first quarter of its fiscal year 2019. The Company does not believe the adoption of this standard will have a material impact on its consolidated financial statements. In March 2017, the FASB issued 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. The Company 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 simplifies the measurement of goodwill by eliminating the Step 2 impairment test. The new guidance requires companies to perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. This ASU will be effective for the Company beginning in its first quarter of fiscal year 2021. The amendment is required to be adopted prospectively. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not believe the adoption of this standard will have a material impact on its consolidated financial statements. 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. The Company does not believe the adoption of this standard will have a material impact on its consolidated financial statements. 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 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). This ASU 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. The guidance will become effective for the Company beginning in the first quarter of fiscal year 2019 and must be adopted using a modified retrospective approach, with certain exceptions. Early adoption is permitted for certain provisions. The Company is 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 revenue 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. 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 using the modified retrospective method. Based upon a preliminary assessment, the Company expects certain portions of its product revenue could be accelerated to reflect transfer of control upon delivery and an element of installation will be deferred until performed. The revenue recognition method for indirect sales and service revenues is 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 commissions 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.

Supplemental Financial Information

3 Months Ended

Sep. 30, 2017

Supplemental Financial Information

Supplemental Financial Information

Note 3. Supplemental Financial Information

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 sales-type leases, totaled $9.0 million and $7.4 million at September 30, 2017 and June 30, 2017, respectively, and are included in Other assets in the unaudited condensed consolidated balance sheets. 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 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. Accounts rated as low risk typically have the equivalent of a Moody’s rating of Baa3 or higher, while accounts rated as moderate risk generally have the equivalent of Ba1 or lower. 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 September 30, 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 September 30, 2017 and June 30, 2017. Based upon such assessment, the Company did not record any adjustment to the allowance for credit losses related to such financing receivables as of September 30, 2017 and recorded an allowance of $0.04 million for credit losses related to such financing receivables as of June 30, 2017.

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

				Financed
	Lease			Service Contracts
September 30, 2017	Receivables			and Other		Total
Gross	$	3,797		$	7,869	$	11,666
Unearned income	(386		)	—		(386		)
Allowance for credit loss	(39		)	—		(39		)

Total, net	$	3,372		$	7,869	$	11,241

Reported as:
Current	$	730		$	1,551	$	2,281
Non-current	2,642			6,318		8,960

Total, net	$	3,372		$	7,869	$	11,241

				Financed
	Lease			Service Contracts
June 30, 2017	Receivables			and Other		Total
Gross	$	4,030		$	6,268	$	10,298
Unearned income	(433		)	—		(433		)
Allowance for credit loss	(39		)	—		(39		)

Total, net	$	3,558		$	6,268	$	9,826

Reported as:
Current	$	720		$	1,677	$	2,397
Non-current	2,838			4,591		7,429

Total, net	$	3,558		$	6,268	$	9,826

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 September 30, 2017 are presented as follows (in thousands):

Year Ending June 30,	Amount
2018 (remaining 9 months)	$	697
2019	930
2020	930
2021	930
2022	310

Total	$	3,797

Inventories

Inventories consisted of the following (in thousands):

	September 30,		June 30,
	2017		2017
Raw materials	$	43,564	$	38,803
Work-in-process	18,527		15,471
Finished goods	51,330		50,780

Inventories	$	113,421	$	105,054

Property and equipment, net

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

	September 30,			June 30,
	2017			2017
Furniture and fixtures	$	4,380		$	4,364
Computer and office equipment	11,800			11,802
Software	11,465			11,457
Leasehold improvements	23,197			23,164
Machinery and equipment	48,775			48,742
Construction in progress	3,091			3,533

	102,708			103,062
Less: Accumulated depreciation	(81,036		)	(80,000		)

Property and equipment, net	$	21,672		$	23,062

Depreciation expense related to property and equipment for the three months ended September 30, 2017 and 2016 was $2.5 million and $2.7 million, respectively.

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) are excluded from earnings and reported as a component of stockholders’ equity. The foreign currency translation adjustment results from those subsidiaries not using the U.S. Dollar as their functional currency since the majority of their economic activities are primarily denominated in their applicable local currency. Accordingly, all assets and liabilities related to these operations are translated to the U.S. Dollar at the current exchange rates at the end of each period. Revenues and expenses are translated at average exchange rates in effect during the period.

The components of accumulated other comprehensive income (loss) in the equity section of the balance sheets are as follows (in thousands):

	September 30,			June 30,
	2017			2017
Net unrealized loss on short-term investments	$	(67	)	$	(89	)
Cumulative foreign currency translation adjustment	1,500			1,154
Defined benefit pension obligation	(1,117		)	(1,117		)

Accumulated other comprehensive income (loss)	$	316		$	(52	)

Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 4. Goodwill and Intangible Assets

Goodwill

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

	Three Months		Year
	Ended		Ended
	September 30,		June 30,
	2017		2017
Balance at the beginning of the period	$	57,812	$	57,848
Currency translation	51		(36		)

Balance at the end of the period	$	57,863	$	57,812

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. In the three months ended September 30, 2017, there were no indicators of impairment.

Intangible Assets

The Company’s carrying amount of acquired intangible assets, net, is as follows (in thousands):

		September 30, 2017							June 30, 2017
		Gross							Gross
		Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Useful Lives	Amount		Amortization			Amount		Amount		Amortization			Amount
	(in years)
Developed technology	5 — 6	$	46,700	$	(46,700	)	$	—	$	46,700	$	(46,700	)	$	—
Patent license	7	1,000		(71		)	929		1,000		(36		)	964

Total intangible assets		$	47,700	$	(46,771	)	$	929	$	47,700	$	(46,736	)	$	964

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

Amortization expense related to intangible assets for the three months ended September 30, 2017 and 2016 was $0.04 million and $2.0 million, respectively.

The estimated future amortization expense of acquired intangible assets as of September 30, 2017 is as follows (in thousands):

Year Ending June 30,	Amount
2018 (remaining 9 months)	$	108
2019	143
2020	143
2021	143
2022	143
Thereafter	249

	$	929

- 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

Investments

3 Months Ended

Sep. 30, 2017

Investments

Investments

Note 5. Investments

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 held a total of eight investments that were in an unrealized loss position as of September 30, 2017 and June 30, 2017, respectively. The Company reviews its investments quarterly to identify and evaluate investments that have an indication of possible impairment. The Company determined that it had no other-than-temporary impairments on these securities 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 losses were insignificant for the three months ended September 30, 2017 and the year ended June 30, 2017.

Contractual maturities of available-for-sale securities at September 30, 2017 were as follows (in thousands):

	Amortized		Estimated
	Cost		Fair Value
Due in 1 year or less	$	17,999	$	17,960
Due in 1-2 years	6,000		5,971

	$	23,999	$	23,931

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
September 30, 2017
U. S. government agency securities	$	(38	)	$	17,960	$	(29	)	$	5,971	$	(67	)	$	23,931

Total	$	(38	)	$	17,960	$	(29	)	$	5,971	$	(67	)	$	23,931

June 30, 2017
U. S. government agency securities	$	(31	)	$	11,970	$	(58	)	$	11,939	$	(89	)	$	23,909

Total	$	(31	)	$	11,970	$	(58	)	$	11,939	$	(89	)	$	23,909

Fair Value Measurements

3 Months Ended

Sep. 30, 2017

Fair Value Measurements

Fair Value Measurements

Note 7. Fair Value Measurements

Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability 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 Company’s Level 1 assets include institutional money-market funds that are classified as cash equivalents, which are valued primarily using quoted market prices in active markets for identical assets. The Company’s Level 2 assets include its U.S. government agency securities as the market inputs used to value these instruments consist of market yields, reported trades and broker/dealer quotes, which are corroborated with observable market data.

The tables below set forth, by level, the Company’s financial assets that were accounted for at fair value (in thousands):

	September 30, 2017
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	66,304	$	—	$	—		$	66,304	$	—

Level 1
Money market funds	1,612		—		—			1,612		—

Level 2
U.S. government agency securities	23,998		—		(67		)	—		23,931

Total	$	91,914	$	—	$	(67	)	$	67,916	$	23,931

	June 30, 2017
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	70,515	$	—	$	—		$	70,515	$	—

Level 1
Money market funds	1,569		—		—			1,569		—

Level 2
U.S. government agency securities	23,998		—		(89		)	—		23,909

Total	$	96,082	$	—	$	(89	)	$	72,084	$	23,909

Liabilities That Are Measured at Fair Value on a Nonrecurring Basis

The debt is measured on a non-recurring basis using Level 2 inputs based upon observable inputs of the Company’s underlying stock price and the time value of the conversion option, since an observable quoted price of the 3.50% Convertible Notes, the 3.50% Series A Convertible Notes and the 3.75% Convertible Notes are not readily available. The carrying value of the Revolving Credit Facility 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 Revolving Credit Facility is classified as Level 2 within the fair value hierarchy.

The following table summarizes the carrying value and estimated fair value of all Notes (in thousands):

	September 30, 2017				June 30, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
3.50% Convertible Notes	$	12,907	$	13,260	$	44,099	$	48,146
3.50% Series A Convertible Notes	26,244		27,083		68,924		74,982
3.75% Convertible Notes	67,069		85,000		—		—
Revolving Credit Facility	51,800		51,800		51,548		51,548

Total	$	158,020	$	177,143	$	164,571	$	174,676

- 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

3 Months Ended

Sep. 30, 2017

Debt

Debt

Note 9. Debt

3.50% Convertible Senior Notes due February 2018

In February 2013, the Company issued 3.50% Convertible Senior Notes due 2018 (the “3.50% Convertible Notes”) 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 notes at any time until the close of the business day immediately preceding the maturity date. The 3.50% Convertible Notes are convertible into common stock of the Company at an initial conversion rate equal to 187.6877 shares of common stock per $1,000 principal amount, which is equivalent to a conversion price of approximately $5.33 per share of common stock, subject to adjustment. The 3.50% Convertible 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. The 3.50% Convertible Notes will mature on February 1, 2018, unless earlier repurchased, redeemed or converted.

Holders of the 3.50% 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% 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. As of September 30, 2017, approximately $13.0 million aggregate principal amount was outstanding.

3.50% Series A Convertible Senior Notes due February 2018

In April 2014, the Company issued 3.50% Series A Convertible Senior Notes due 2018 (the “3.50% Series A Convertible Notes”) 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 notes at any time on or after November 1, 2017 until the close of business on the business day immediately preceding the maturity date. The initial conversion rate is 187.6877 shares of the Company’s common stock per $1,000 principal amount, which represents an initial conversion price of approximately $5.33 per share of the Company’s common stock. The 3.50% Series A Convertible Notes generally 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.

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. As of September 30, 2017, approximately $26.6 million aggregate principal amount was outstanding.

3.75% Convertible Senior Notes due July 2022

In August 2017, the Company issued $85.0 million aggregate principal amount of its 3.75% Convertible Senior Notes due 2022 (the “3.75% Convertible Notes”) under an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. $53.0 million aggregate principal amount of the 3.75% Convertible Notes were issued to certain holders of the Company’s outstanding 3.50% Convertible Notes and 3.50% Series A Convertible Notes (together, the “Existing Notes”) in exchange for approximately $47.0 million aggregate principal amount of the Existing Notes (the “Exchange”) and $32.0 million aggregate principal amount of the 3.75% Convertible Notes were issued to certain other qualified new investors for cash. The net proceeds of the cash issuance were used to repurchase approximately $28.0 million of Existing Notes (the “Repurchase”).

Holders of the 3.75% Convertible Notes may convert their notes at any time on or after April 15, 2022 until the close of the business day immediately preceding the maturity date. Prior to April 15, 2022, holders of the 3.75% Convertible Notes may convert their notes only under the following circumstances:

during any fiscal quarter after the fiscal quarter ending December 31, 2017, and only during such fiscal 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 fiscal quarter exceeds 130% of the conversion price in effect on the last trading day of the immediately preceding fiscal quarter;

during the five-consecutive business days immediately after any five consecutive trading-day period in which the trading price per $1,000 principal amount for each trading day of that 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

upon the occurrence of specified corporate transactions as described in the indenture.

Upon conversion, the Company will have the right to pay cash, or deliver shares of common stock of the Company or a combination thereof, at the Company’s election. The initial conversion rate is 174.8252 shares of the Company’s common stock per $1,000 principal amount (which represents an initial conversion price of approximately $5.72 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 3.75% 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 3.75% Convertible Notes may require the Company to purchase all or a portion of their note at a fundamental change repurchase price equal to 100% of the principal amount of the 3.75% 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 accounted for the liability and equity conversion components of the 3.75% Convertible Notes. The principal amount of the liability component of the 3.75% Convertible Notes was $66.5 million as of the date of issuance based on the present value of its cash flows using a discount rate of 8%, the Company’s 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 $13.8 million. The debt issuance and offering costs totaling $4.7 million, of which $0.8 million was allocated to the equity component with the remaining $3.9 million allocated to the debt discount. The liability component is being accreted to the principal amount of the 3.75% Convertible Notes using the effective interest method through the maturity in July 2022.

Following the issuance of the 3.75% Convertible Notes, approximately $13.0 million aggregate principal amount of the 3.50% Convertible Notes and approximately $26.6 million aggregate principal amount of the 3.50% Series A Convertible Notes remained outstanding. The Company accounted for the Exchange and Repurchase as an extinguishment of the Existing Notes and recorded a charge of approximately $3.2 million in Other expenses, net and a reduction of the carrying value of the equity conversion component of $5.0 million in the first quarter of fiscal 2018.

Revolving Credit Facility

On June 14, 2017, the Company entered into a credit and security agreement (the “Revolving Credit Facility”) with MidCap Financial Trust. The agreement provides the Company with a revolving credit facility in the initial amount of $52.0 million, which the Company may request be increased by up to $33.0 million to a new total of $85.0 million through additional tranches, each with a $1.0 million minimum. Availability for borrowings under the Revolving Credit Facility is subject to a borrowing base that is calculated as a function of the value of the Company’s eligible accounts receivable and eligible inventory, and the Company is required to maintain a minimum drawn balance of at least 30% of such availability.

The Revolving Credit Facility’s stated maturity date is June 14, 2021.

The Revolving Credit Facility contains restrictions and covenants applicable to the Company. Among other requirements, the Company may not permit the Fixed Charge Coverage Ratio (as defined in the Revolving Credit Facility) to be less than a certain specified ratio for each fiscal quarter during the term of the Revolving Credit Facility. In addition, the Revolving Credit Facility contains customary covenants that limit, among other things, the ability of the Company and its subsidiaries to (i) incur indebtedness, (ii) incur liens on their property, (iii) pay dividends or make other distributions, (iv) sell their assets, (v) make certain loans or investments, (vi) merge or consolidate, (vii) voluntarily repay or prepay certain indebtedness and (viii) enter into transactions with affiliates, in each case subject to certain exceptions. The Company was in compliance with the covenants as of September 30, 2017.

The following table presents the carrying value of all Convertible Notes and borrowings under the Revolving Credit Facility (collectively, “Notes”) (in thousands):

As of September 30, 2017	Revolving Credit Facility		3.50% Convertible Notes			3.50% Series A Convertible Notes			3.75% Convertible Notes			Total
Carrying amount of equity conversion component	$	—	$	—		$	2,806		$	13,837		$	16,643

Principal amount of the Notes	$	51,800	$	13,000		$	26,552		$	85,000		$	176,352
Unamortized debt costs	—		(93		)	—			(3,789		)	(3,882		)
Unamortized debt discount	—		—			(308		)	(14,142		)	(14,450		)

Net carrying amount	$	51,800	$	12,907		$	26,244		$	67,069		$	158,020

Reported as:
Short-term debt												$	39,151
Long-term debt												118,869

Total debt												$	158,020

As of June 30, 2017	Revolving Credit Facility		3.50% Convertible Notes			3.50% Series A Convertible Notes			Total
Carrying amount of equity conversion component	$	—	$	—		$	7,844		$	7,844

Principal amount of the Notes	$	51,548	$	44,654		$	70,346		$	166,548
Unamortized debt costs	—		(555		)	—			(555		)
Unamortized debt discount	—		—			(1,422		)	(1,422		)

Net carrying amount	$	51,548	$	44,099		$	68,924		$	164,571

Reported as:
Short-term debt									$	113,023
Long-term debt									51,548

Total debt									$	164,571

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

	Three Months Ended
	September 30,
	2017		2016
Interest expense related to contractual interest coupon	$	2,409	$	2,531
Interest expense related to amortization of debt discount	862		816
Interest expense related to amortization of debt issuance costs	448		403

	$	3,719	$	3,750

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2017
Accounting Pronouncement Recently Adopted
Accounting Pronouncements	Accounting Pronouncement Recently Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting (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. The amendments in this standard are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted ASU No. 2016-09 as required in the first quarter of fiscal year 2018 and has elected to continue the use of its forfeiture estimation method for share-based payment awards. The adoption of ASU 2016-09 did not have a material impact on the Company’s consolidated financial statements.
Accounting Pronouncements Not Yet Effective
Accounting Pronouncements	Accounting Pronouncements Not Yet Effective In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718)—Scope of Modification Accounting. This guidance redefines which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting for a share-based payment. This guidance will be effective for the Company in the first quarter of its fiscal year 2019. The Company does not believe the adoption of this standard will have a material impact on its consolidated financial statements. In March 2017, the FASB issued 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. The Company 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 simplifies the measurement of goodwill by eliminating the Step 2 impairment test. The new guidance requires companies to perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. This ASU will be effective for the Company beginning in its first quarter of fiscal year 2021. The amendment is required to be adopted prospectively. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not believe the adoption of this standard will have a material impact on its consolidated financial statements. 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. The Company does not believe the adoption of this standard will have a material impact on its consolidated financial statements. 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 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). This ASU 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. The guidance will become effective for the Company beginning in the first quarter of fiscal year 2019 and must be adopted using a modified retrospective approach, with certain exceptions. Early adoption is permitted for certain provisions. The Company is 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 revenue 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. 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 using the modified retrospective method. Based upon a preliminary assessment, the Company expects certain portions of its product revenue could be accelerated to reflect transfer of control upon delivery and an element of installation will be deferred until performed. The revenue recognition method for indirect sales and service revenues is 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 commissions 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.

Supplemental Financial Information (Tables)

3 Months Ended

Sep. 30, 2017

Supplemental Financial Information

Schedule of financing receivables

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

				Financed
	Lease			Service Contracts
September 30, 2017	Receivables			and Other		Total
Gross	$	3,797		$	7,869	$	11,666
Unearned income	(386		)	—		(386		)
Allowance for credit loss	(39		)	—		(39		)

Total, net	$	3,372		$	7,869	$	11,241

Reported as:
Current	$	730		$	1,551	$	2,281
Non-current	2,642			6,318		8,960

Total, net	$	3,372		$	7,869	$	11,241

				Financed
	Lease			Service Contracts
June 30, 2017	Receivables			and Other		Total
Gross	$	4,030		$	6,268	$	10,298
Unearned income	(433		)	—		(433		)
Allowance for credit loss	(39		)	—		(39		)

Total, net	$	3,558		$	6,268	$	9,826

Reported as:
Current	$	720		$	1,677	$	2,397
Non-current	2,838			4,591		7,429

Total, net	$	3,558		$	6,268	$	9,826

Schedule of future minimum lease payments receivable

Future minimum lease payments to be received as of September 30, 2017 are presented as follows (in thousands):

Year Ending June 30,	Amount
2018 (remaining 9 months)	$	697
2019	930
2020	930
2021	930
2022	310

Total	$	3,797

Schedule of inventories

Inventories consisted of the following (in thousands):

	September 30,		June 30,
	2017		2017
Raw materials	$	43,564	$	38,803
Work-in-process	18,527		15,471
Finished goods	51,330		50,780

Inventories	$	113,421	$	105,054

Schedule of property and equipment, net

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

	September 30,			June 30,
	2017			2017
Furniture and fixtures	$	4,380		$	4,364
Computer and office equipment	11,800			11,802
Software	11,465			11,457
Leasehold improvements	23,197			23,164
Machinery and equipment	48,775			48,742
Construction in progress	3,091			3,533

	102,708			103,062
Less: Accumulated depreciation	(81,036		)	(80,000		)

Property and equipment, net	$	21,672		$	23,062

Schedule of accumulated other comprehensive income (loss) in the equity section

The components of accumulated other comprehensive income (loss) in the equity section of the balance sheets are as follows (in thousands):

	September 30,			June 30,
	2017			2017
Net unrealized loss on short-term investments	$	(67	)	$	(89	)
Cumulative foreign currency translation adjustment	1,500			1,154
Defined benefit pension obligation	(1,117		)	(1,117		)

Accumulated other comprehensive income (loss)	$	316		$	(52	)

Goodwill and Intangible Assets (Tables)

3 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets

Schedule of goodwill

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

	Three Months		Year
	Ended		Ended
	September 30,		June 30,
	2017		2017
Balance at the beginning of the period	$	57,812	$	57,848
Currency translation	51		(36		)

Balance at the end of the period	$	57,863	$	57,812

Schedule of carrying amount of acquired intangible assets, net

The Company’s carrying amount of acquired intangible assets, net, is as follows (in thousands):

		September 30, 2017							June 30, 2017
		Gross							Gross
		Carrying		Accumulated			Net		Carrying		Accumulated			Net
	Useful Lives	Amount		Amortization			Amount		Amount		Amortization			Amount
	(in years)
Developed technology	5 — 6	$	46,700	$	(46,700	)	$	—	$	46,700	$	(46,700	)	$	—
Patent license	7	1,000		(71		)	929		1,000		(36		)	964

Total intangible assets		$	47,700	$	(46,771	)	$	929	$	47,700	$	(46,736	)	$	964

Schedule of estimated future amortization expense of acquired intangible assets

The estimated future amortization expense of acquired intangible assets as of September 30, 2017 is as follows (in thousands):

Year Ending June 30,	Amount
2018 (remaining 9 months)	$	108
2019	143
2020	143
2021	143
2022	143
Thereafter	249

	$	929

Investments (Tables)

3 Months Ended

Sep. 30, 2017

Investments

Schedule of contractual maturities of available-for-sale securities

Contractual maturities of available-for-sale securities at September 30, 2017 were as follows (in thousands):

	Amortized		Estimated
	Cost		Fair Value
Due in 1 year or less	$	17,999	$	17,960
Due in 1-2 years	6,000		5,971

	$	23,999	$	23,931

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
September 30, 2017
U. S. government agency securities	$	(38	)	$	17,960	$	(29	)	$	5,971	$	(67	)	$	23,931

Total	$	(38	)	$	17,960	$	(29	)	$	5,971	$	(67	)	$	23,931

June 30, 2017
U. S. government agency securities	$	(31	)	$	11,970	$	(58	)	$	11,939	$	(89	)	$	23,909

Total	$	(31	)	$	11,970	$	(58	)	$	11,939	$	(89	)	$	23,909

Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2017

Fair Value Measurements

Summary of financial assets that were accounted for at fair value

The tables below set forth, by level, the Company’s financial assets that were accounted for at fair value (in thousands):

	September 30, 2017
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	66,304	$	—	$	—		$	66,304	$	—

Level 1
Money market funds	1,612		—		—			1,612		—

Level 2
U.S. government agency securities	23,998		—		(67		)	—		23,931

Total	$	91,914	$	—	$	(67	)	$	67,916	$	23,931

	June 30, 2017
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	70,515	$	—	$	—		$	70,515	$	—

Level 1
Money market funds	1,569		—		—			1,569		—

Level 2
U.S. government agency securities	23,998		—		(89		)	—		23,909

Total	$	96,082	$	—	$	(89	)	$	72,084	$	23,909

Summary of carrying values and estimated fair values of short-term and long-term debt

The following table summarizes the carrying value and estimated fair value of all Notes (in thousands):

	September 30, 2017				June 30, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
3.50% Convertible Notes	$	12,907	$	13,260	$	44,099	$	48,146
3.50% Series A Convertible Notes	26,244		27,083		68,924		74,982
3.75% Convertible Notes	67,069		85,000		—		—
Revolving Credit Facility	51,800		51,800		51,548		51,548

Total	$	158,020	$	177,143	$	164,571	$	174,676

Debt (Tables)

3 Months Ended

Sep. 30, 2017

Debt

Schedule of carrying values of all Convertible Notes

The following table presents the carrying value of all Convertible Notes and borrowings under the Revolving Credit Facility (collectively, “Notes”) (in thousands):

As of September 30, 2017	Revolving Credit Facility		3.50% Convertible Notes			3.50% Series A Convertible Notes			3.75% Convertible Notes			Total
Carrying amount of equity conversion component	$	—	$	—		$	2,806		$	13,837		$	16,643

Principal amount of the Notes	$	51,800	$	13,000		$	26,552		$	85,000		$	176,352
Unamortized debt costs	—		(93		)	—			(3,789		)	(3,882		)
Unamortized debt discount	—		—			(308		)	(14,142		)	(14,450		)

Net carrying amount	$	51,800	$	12,907		$	26,244		$	67,069		$	158,020

Reported as:
Short-term debt												$	39,151
Long-term debt												118,869

Total debt												$	158,020

As of June 30, 2017	Revolving Credit Facility		3.50% Convertible Notes			3.50% Series A Convertible Notes			Total
Carrying amount of equity conversion component	$	—	$	—		$	7,844		$	7,844

Principal amount of the Notes	$	51,548	$	44,654		$	70,346		$	166,548
Unamortized debt costs	—		(555		)	—			(555		)
Unamortized debt discount	—		—			(1,422		)	(1,422		)

Net carrying amount	$	51,548	$	44,099		$	68,924		$	164,571

Reported as:
Short-term debt									$	113,023
Long-term debt									51,548

Total debt									$	164,571

Summary of interest expense on all Convertible Notes

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

	Three Months Ended
	September 30,
	2017		2016
Interest expense related to contractual interest coupon	$	2,409	$	2,531
Interest expense related to amortization of debt discount	862		816
Interest expense related to amortization of debt issuance costs	448		403

	$	3,719	$	3,750

Supplemental Financial Information - Balance Sheet Components (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Financing receivables
Gross	$ 11,666		$ 10,298
Unearned income	(386)		(433)
Allowance for credit loss	(39)		(39)
Total, net	11,241		9,826
Current	2,281		2,397
Non-current	8,960		7,429
Capital leases future minimum payments receivable
2018 (remaining 9 months)	697
2019	930
2020	930
2021	930
2022	310
Total	3,797
Inventories
Raw materials	43,564		38,803
Work-in-process	18,527		15,471
Finished goods	51,330		50,780
Inventories	113,421		105,054
Property and equipment, net
Property and equipment, gross	102,708		103,062
Less: Accumulated depreciation	(81,036)		(80,000)
Property and equipment, net	21,672		23,062
Depreciation expense	2,500	$ 2,700
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	4,380		4,364
Computer and office equipment
Property and equipment, net
Property and equipment, gross	11,800		11,802
Software
Property and equipment, net
Property and equipment, gross	11,465		11,457
Leasehold improvements
Property and equipment, net
Property and equipment, gross	23,197		23,164
Machinery and equipment
Property and equipment, net
Property and equipment, gross	48,775		48,742
Construction in progress
Property and equipment, net
Property and equipment, gross	3,091		3,533
Lease Receivables
Financing receivables
Gross	3,797		4,030
Unearned income	(386)		(433)
Allowance for credit loss	(39)		(39)
Total, net	3,372		3,558
Current	730		720
Non-current	2,642		2,838
Financed Service Contracts and Other
Financing receivables
Gross	7,869		6,268
Total, net	7,869		6,268
Current	1,551		1,677
Non-current	$ 6,318		$ 4,591

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2017
Changes in the carrying amount of goodwill
Balance at the beginning of the period	$ 57,812		$ 57,848	$ 57,848
Currency translation	51			(36)
Balance at the end of the period	57,863			57,812
Impairment of goodwill		$ 0
Gross Carrying Amount	47,700			47,700
Accumulated Amortization	(46,771)			(46,736)
Net Amount	929			964
Amortization expense	40		$ 2,000
Estimated future amortization expense of purchased intangible assets
2018 (remaining 9 months)	108
2019	143
2020	143
2021	143
2022	143
Thereafter	249
Net Amount	929			964
Developed technology
Changes in the carrying amount of goodwill
Gross Carrying Amount	46,700			46,700
Accumulated Amortization	$ (46,700)			$ (46,700)
Developed technology \| Minimum
Changes in the carrying amount of goodwill
Useful Lives	5 years			5 years
Developed technology \| Maximum
Changes in the carrying amount of goodwill
Useful Lives	6 years			6 years
Patent license
Changes in the carrying amount of goodwill
Useful Lives	7 years			7 years
Gross Carrying Amount	$ 1,000			$ 1,000
Accumulated Amortization	(71)			(36)
Net Amount	929			964
Estimated future amortization expense of purchased intangible assets
Net Amount	$ 929			$ 964

Investments (Details) $ in Thousands	3 Months Ended	12 Months Ended
Investments (Details) $ in Thousands	Sep. 30, 2017 USD ($) position	Jun. 30, 2017 USD ($) position
Amortized Cost
Due in 1 year or less	$ 17,999
Due in 1-2 years	6,000
Total Amortized Cost	23,999
Other-than-temporary impairments	0	$ 0
Estimated Fair Value
Due in 1 year or less	17,960
Due in 1-2 years	5,971
Available-for-sale Securities	23,931
Gross Unrealized Losses
Less Than 12 Months	(38)	(31)
12 Months or Greater	(29)	(58)
Total	(67)	(89)
Estimated Fair Value
Less Than 12 Months	17,960	11,970
12 Months or Greater	5,971	11,939
Total	$ 23,931	$ 23,909
Number of positions held in an unrealized loss position \| position	8	8
U.S. government agency securities
Gross Unrealized Losses
Less Than 12 Months	$ (38)	$ (31)
12 Months or Greater	(29)	(58)
Total	(67)	(89)
Estimated Fair Value
Less Than 12 Months	17,960	11,970
12 Months or Greater	5,971	11,939
Total	$ 23,931	$ 23,909

Debt (Details)		1 Months Ended		3 Months Ended
Debt (Details)	Jun. 14, 2017 USD ($)	Apr. 30, 2014 USD ($) $ / shares	Feb. 28, 2013 USD ($) $ / shares	Sep. 30, 2017 USD ($) item $ / shares	Sep. 30, 2016 USD ($)	Aug. 31, 2017	Jun. 30, 2017 USD ($)	Aug. 31, 2016 USD ($)
Debt
Carrying amount of equity conversion component				$ 17,456,000			$ 7,844,000
Principal amount of the Notes				176,352,000			166,548,000
Unamortized debt costs				(3,882,000)			(555,000)
Unamortized debt discount				(14,450,000)			(1,422,000)
Net carrying amount				158,020,000			164,571,000
Reported as:
Short-term debt				39,151,000			113,023,000
Long-term debt				118,869,000			51,548,000
Net carrying amount				158,020,000			164,571,000
Interest expense related to contractual interest coupon				2,409,000	$ 2,531,000
Interest expense related to amortization of debt discount				862,000	816,000
Interest expense related to amortization of debt issuance costs				448,000	403,000
Total interest expense recognized				3,719,000	$ 3,750,000
Revolving Credit Facility
Debt
Initial borrowing capacity	$ 52,000,000
Additional borrowing capacity	33,000,000
Borrowing capacity	85,000,000
Minimum additional tranches	$ 1,000,000
Minimum drawn balance (as a percent)	30.00%
Principal amount of the Notes				51,800,000			51,548,000
Net carrying amount				51,800,000			51,548,000
Reported as:
Net carrying amount				$ 51,800,000			$ 51,548,000
Repurchase
Debt
Repurchase of additional existing notes								$ 28,000,000
3.50% Convertible Notes
Debt
Interest rate (as a percent)			3.50%	3.50%			3.50%
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares)			187.6877
Principal amount used for debt instrument conversion ratio			$ 1,000
Conversion price (in dollars per share) \| $ / shares			$ 5.33
Repurchase price, as percentage of principal amount, if company undergoes change of control				100.00%
Principal amount of the Notes				$ 13,000,000			$ 44,654,000
Unamortized debt costs				(93,000)			(555,000)
Net carrying amount				12,907,000			44,099,000
Reported as:
Net carrying amount				$ 12,907,000			$ 44,099,000
3.50% Series A Convertible Notes
Debt
Interest rate (as a percent)		3.50%		3.50%			3.50%
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares)		187.6877
Principal amount used for debt instrument conversion ratio		$ 1,000
Conversion price (in dollars per share) \| $ / shares		$ 5.33
Repurchase price, as percentage of principal amount, if company undergoes change of control		100.00%
Carrying amount of equity conversion component				$ 2,806,000			$ 7,844,000
Principal amount of the Notes				26,552,000			70,346,000
Unamortized debt discount				(308,000)			(1,422,000)
Net carrying amount				26,244,000			68,924,000
Reported as:
Net carrying amount				$ 26,244,000			$ 68,924,000
3.75% Convertible Senior Notes due 2022
Debt
Interest rate (as a percent)						3.75%
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares)				174.8252
Principal amount used for debt instrument conversion ratio				$ 1,000
Conversion price (in dollars per share) \| $ / shares				$ 5.72
Aggregate principal amount of debt issued								85,000,000
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 \| item				30
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
Repurchase price, as a percentage of the principal amount, in the event of a fundamental change, as defined in Indenture				100.00%
Discount rate on liability component (as a percent)				8.00%
Debt issuance and offering costs				$ 4,700,000
Portion of cash amount paid allocated to equity component				800,000
Portion of cash amount paid allocated to debt discount				3,900,000
Reduction in Carrying Amount Of Equity Conversion Component				5,000,000
Carrying amount of equity conversion component				14,650,000
Principal amount of the Notes				85,000,000
Unamortized debt costs				(3,789,000)
Unamortized debt discount				(14,142,000)
Net carrying amount				67,069,000
Reported as:
Net carrying amount				$ 67,069,000
3.75% Convertible Senior Notes due 2022 \| 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
3.75% Convertible Senior Notes due 2022 \| 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%
3.75% Convertible Senior Notes due 2022 \| Exchange
Debt
Aggregate principal amount of debt issued								53,000,000
3.75% Convertible Senior Notes due 2022 \| Repurchase
Debt
Aggregate principal amount of debt issued								32,000,000
3.50% Convertible Notes due 2018 and 3.5% Series A Senior Notes due February 2018 \| Exchange
Debt
Aggregate principal amount of debt issued								$ 47,000,000
3.50% Convertible Notes due 2018 and 3.5% Series A Senior Notes due February 2018 \| Exchange or Repurchase Agreements \| Other expenses, net
Debt
Extinguishment of the existing notes, charge				$ 3,200,000

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Unaudited Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 428	$ 420
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	83,754,665	83,739,804
Common stock, outstanding shares	83,754,665	83,739,804

Basis of Presentation and Principles of Consolidation	3 Months Ended
Basis of Presentation and Principles of Consolidation	Sep. 30, 2017
Basis of Presentation and Principles of Consolidation
Basis of Presentation and Principles of Consolidation	Note 1. Basis of Presentation and Principles of Consolidation The unaudited 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 unaudited 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 months ended September 30, 2017 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2018, or for any other future interim period or fiscal year. These unaudited 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, 2017 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 25, 2017. 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.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Sep. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	Note 8. Commitments and Contingencies Litigation From time to time, the Company is involved in legal proceedings arising in the ordinary course of its business. The Company records a provision for a loss when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Currently, management believes the Company does not have any probable and estimable losses related to any current legal proceedings and claims. Although occasional adverse decisions or settlements may occur, management does not believe that an adverse determination with respect to any of these claims would individually or in the aggregate materially and adversely affect the Company’s financial condition or operating results. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company’s control. Should any of these estimates and assumptions change or prove to have been incorrect, the Company could incur significant charges related to legal matters that could have a material impact on its results of operations, financial position and cash flows. Software License Indemnity Under the terms of the Company’s software license agreements with its customers, the Company agrees that in the event the software sold infringes upon any patent, copyright, trademark, or any other proprietary right of a third-party, it will indemnify its customer licensees against any loss, expense, or liability from any damages that may be awarded against them. The Company includes this infringement indemnification in all of its software license agreements and selected managed services arrangements. In the event the customer cannot use the software or service due to infringement and the Company cannot obtain the right to use, replace or modify the license or service in a commercially feasible manner so that it no longer infringes, then the Company may terminate the license and provide the customer a refund of the fees paid by the customer for the infringing license or service. The Company has not recorded any liability associated with this indemnification, as it is not aware of any pending or threatened actions that represent probable losses as of September 30, 2017.

Derivative Financial Instruments (Details) $ in Thousands	3 Months Ended
Derivative Financial Instruments (Details) $ in Thousands	Sep. 30, 2017 USD ($) contract	Sep. 30, 2016 USD ($)	Jun. 30, 2017 contract
Outstanding foreign currency contracts (number of contracts) \| contract	0		0
Other expense, net
Foreign currency transactions gain (loss)	$ 4	$ 132
Other expense, net \| Foreign contracts
Foreign currency transactions gain (loss)	$ 241	$ (563)
Maximum
Length of forward contracts	3 months

Share-Based Compensation - Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based compensation expenses
Share-based compensation expense	$ 2,432	$ 3,473
Cost of revenue
Share-based compensation expenses
Share-based compensation expense	493	524
Research and development
Share-based compensation expenses
Share-based compensation expense	631	663
Selling and marketing
Share-based compensation expenses
Share-based compensation expense	(163)	622
General and administrative
Share-based compensation expenses
Share-based compensation expense	$ 1,471	$ 1,664

Supplemental Financial Information - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss)
Net unrealized loss on short-term investments	$ (67)	$ (89)
Cumulative foreign currency translation adjustment	1,500	1,154
Defined benefit pension obligation	(1,117)	(1,117)
Accumulated other comprehensive income (loss)	$ 316	$ (52)

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Financial assets
Amortized Cost	$ 91,914	$ 96,082
Gross Unrealized Losses	(67)	(89)
Cash and Cash Equivalents	67,916	72,084
Short-term Investments	23,931	23,909
Level 2 \| U.S. government agency securities
Financial assets
Amortized Cost	23,998	23,998
Gross Unrealized Losses	(67)	(89)
Short-term Investments	23,931	23,909
Cash
Financial assets
Amortized Cost	66,304	70,515
Cash and Cash Equivalents	66,304	70,515
Money market funds \| Level 1
Financial assets
Amortized Cost	1,612	1,569
Cash and Cash Equivalents	$ 1,612	$ 1,569

Fair Value Measurements - Convertible Notes (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Apr. 30, 2014	Feb. 28, 2013
Carrying Value
Fair value measurement
Long term debt	$ 158,020	$ 164,571
Fair Value
Fair value measurement
Long term debt	$ 177,143	$ 174,676
3.50% Convertible Notes
Fair value measurement
Interest rate (as a percent)	3.50%	3.50%		3.50%
3.50% Series A Convertible Notes
Fair value measurement
Interest rate (as a percent)	3.50%	3.50%	3.50%
3.75% Convertible Notes
Fair value measurement
Interest rate (as a percent)	3.75%	3.75%
Non-recurring basis \| Level 2 \| 3.50% Convertible Notes
Fair value measurement
Interest rate (as a percent)	3.50%
Non-recurring basis \| Level 2 \| 3.50% Convertible Notes \| Carrying Value
Fair value measurement
Long term debt	$ 12,907	$ 44,099
Non-recurring basis \| Level 2 \| 3.50% Convertible Notes \| Fair Value
Fair value measurement
Long term debt	$ 13,260	48,146
Non-recurring basis \| Level 2 \| 3.50% Series A Convertible Notes
Fair value measurement
Interest rate (as a percent)	3.50%
Non-recurring basis \| Level 2 \| 3.50% Series A Convertible Notes \| Carrying Value
Fair value measurement
Long term debt	$ 26,244	68,924
Non-recurring basis \| Level 2 \| 3.50% Series A Convertible Notes \| Fair Value
Fair value measurement
Long term debt	$ 27,083	74,982
Non-recurring basis \| Level 2 \| 3.75% Convertible Notes
Fair value measurement
Interest rate (as a percent)	3.75%
Non-recurring basis \| Level 2 \| 3.75% Convertible Notes \| Carrying Value
Fair value measurement
Long term debt	$ 67,069
Non-recurring basis \| Level 2 \| 3.75% Convertible Notes \| Fair Value
Fair value measurement
Long term debt	85,000
Revolving Credit Facility \| Non-recurring basis \| Level 2 \| Carrying Value
Fair value measurement
Long term debt	51,800	51,548
Revolving Credit Facility \| Non-recurring basis \| Level 2 \| Fair Value
Fair value measurement
Long term debt	$ 51,800	$ 51,548

Share-Based Compensation - Options (Details) - Total Shareholder Return shares in Millions	3 Months Ended
	Sep. 30, 2017 shares
Stock Incentive Plan
Options granted (in shares)	0.6
Maximum
Stock Incentive Plan
Percentage of shares can vest	150.00%

Segment Information (Details) $ in Thousands	3 Months Ended
Segment Information (Details) $ in Thousands	Sep. 30, 2017 USD ($) segment	Sep. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)
Segment Information
Number of reportable segments \| segment	1
Revenue	$ 90,950	$ 86,506
Property and equipment, net	21,672		$ 23,062
Americas
Segment Information
Revenue	36,023	40,642
Property and equipment, net	17,072		18,435
Europe, Middle East, India and Africa
Segment Information
Revenue	35,148	21,282
Property and equipment, net	654		730
Asia-Pacific
Segment Information
Revenue	6,702	13,225
Property and equipment, net	1,734		1,533
Japan
Segment Information
Revenue	13,077	$ 11,357
Property and equipment, net	$ 2,212		$ 2,364