0001104659-18-006339 | 10-Q | XBRL Viewer

Document and Entity Information - shares	6 Months Ended
Dec. 31, 2017	Jan. 25, 2018
Document and Entity Information
Entity Registrant Name	ACCURAY INC
Entity Central Index Key	0001138723
Document Type	10-Q
Document Period End Date	Dec. 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		85,293,273
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 79,509	$ 72,084
Short-term investments	24,516	23,909
Restricted cash	2,039	12,829
Accounts receivable, net of allowance for doubtful accounts of $442 and $420 as of December 31, 2017 and June 30, 2017, respectively	80,907	72,789
Inventories	113,809	105,054
Prepaid expenses and other current assets	15,577	18,988
Deferred cost of revenue	2,316	3,350
Total current assets	318,673	309,003
Property and equipment, net	22,601	23,062
Goodwill	57,910	57,812
Intangible assets, net	893	964
Restricted cash	629	322
Other assets	13,231	15,301
Total assets	413,937	406,464
Current liabilities:
Accounts payable	25,922	17,486
Accrued compensation	22,231	25,402
Other accrued liabilities	19,514	23,870
Short-term debt	39,451	113,023
Customer advances	19,797	16,926
Deferred revenue	79,955	87,785
Total current liabilities	206,870	284,492
Long-term liabilities:
Long-term other liabilities	10,794	10,068
Deferred revenue	16,737	13,823
Long-term debt	130,425	51,548
Total liabilities	364,826	359,931
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock, $0.001 par value; authorized: 200,000,000 shares as of December 31, 2017 and June 30, 2017, respectively; issued and outstanding: 85,287,635 and 83,739,804 shares at December 31, 2017 and June 30, 2017, respectively	85	84
Additional paid-in-capital	512,883	496,887
Accumulated other comprehensive income (loss)	630	(52)
Accumulated deficit	(464,487)	(450,386)
Total stockholders' equity	49,111	46,533
Total liabilities and stockholders' equity	$ 413,937	$ 406,464

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net revenue:
Products	$ 47,106	$ 35,398	$ 86,022	$ 70,997
Services	53,223	52,104	105,257	103,011
Total net revenue	100,329	87,502	191,279	174,008
Cost of revenue:
Cost of products	26,857	22,969	48,959	46,321
Cost of services	34,117	33,146	64,859	64,956
Total cost of revenue	60,974	56,115	113,818	111,277
Gross profit	39,355	31,387	77,461	62,731
Operating expenses:
Research and development	14,664	11,944	28,757	24,173
Selling and marketing	13,872	13,904	28,629	28,222
General and administrative	11,836	10,362	23,144	21,706
Total operating expenses	40,372	36,210	80,530	74,101
Loss from operations	(1,017)	(4,823)	(3,069)	(11,370)
Other expense, net	(3,738)	(4,120)	(10,309)	(8,125)
Loss before provision for income taxes	(4,755)	(8,943)	(13,378)	(19,495)
Provision for (benefit from) income taxes	(36)	426	723	(200)
Net loss	$ (4,719)	$ (9,369)	$ (14,101)	$ (19,295)
Net loss per share - basic and diluted	$ (0.06)	$ (0.11)	$ (0.17)	$ (0.24)
Weighted average common shares used in computing net loss per share:
Basic and diluted	84,586	82,328	84,167	81,952
Net loss	$ (4,719)	$ (9,369)	$ (14,101)	$ (19,295)
Foreign currency translation adjustment	212	(1,325)	558	(1,206)
Unrealized gain (loss) on investments, net of tax	102	(68)	124	(70)
Comprehensive loss	$ (4,405)	$ (10,762)	$ (13,419)	$ (20,571)

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Net loss	$ (14,101)	$ (19,295)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	5,007	9,280
Share-based compensation	5,870	6,387
Amortization of debt issuance costs	868	782
Amortization and accretion of discount and premium on investments	(10)	63
Accretion of interest on debt	1,727	1,456
Provision for (recovery of) bad debt, net	22	(63)
Provision for write-down of inventories	1,189	665
Loss on disposal of property and equipment	11
Loss on extinguishment of debt	3,192
Changes in assets and liabilities:
Accounts receivable	(10,156)	(14,248)
Inventories	(11,832)	(2,559)
Prepaid expenses and other assets	5,855	(231)
Deferred cost of revenue	1,206	1,471
Accounts payable	8,085	10,070
Accrued liabilities	(8,059)	(2,602)
Customer advances	2,787	3,119
Deferred revenues	(5,401)	(5,317)
Net cash used in operating activities	(13,740)	(11,022)
Cash flows from investing activities
Purchases of property and equipment, net	(1,977)	(3,136)
Purchases of investments	(5,940)	(14,992)
Sales and maturities of investments	6,000	23,190
Net cash (used in) provided by investing activities	(1,917)	5,062
Cash flows from financing activities
Proceeds from employee stock plans	2,036	2,050
Taxes paid related to net share settlement of equity awards	(293)	(737)
Proceeds from issuance of Term Loan, net	38,829
Proceeds from issuance of Convertible Notes, net	27,282
Repurchase of Convertible Notes	(29,581)	(42,483)
Borrowings under revolving credit facility	68,171
Repayments under revolving credit facility	(94,736)
Net cash provided by (used in) financing activities	11,708	(41,170)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	891	(3,646)
Net decrease in cash, cash equivalents and restricted cash	(3,058)	(50,776)
Cash, cash equivalents and restricted cash at beginning of period	85,235	122,133
Cash, cash equivalents and restricted cash at end of period	$ 82,177	$ 71,357

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Dec. 31, 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 and related disclosures. 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 and related disclosures. 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 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. The Company does not believe the adoption of this standard will have a material impact 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 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 a 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. However, the FASB has recently proposed guidance that would permit companies not to restate periods priors to adoption. The 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 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 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. The standard will be effective for the Company in the first quarter of its fiscal year 2019. 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

6 Months Ended

Dec. 31, 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 $8.0 million and $7.4 million at December 31, 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-payment. As of December 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 December 31, 2017 and June 30, 2017. Based upon such assessment, the Company did not record any adjustment and recorded $0.04 million to the allowance for credit losses related to such financing receivables as of December 31, 2017 and as of June 30, 2017, respectively.

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

December 31, 2017	Lease Receivables			Financed Service Contracts and Other		Total
Gross	$	3,565		$	7,040	$	10,605
Unearned income	(342		)	—		(342		)
Allowance for credit loss	(39		)	—		(39		)

Total, net	$	3,184		$	7,040	$	10,224

Reported as:
Current	$	741		$	1,492	$	2,233
Non-current	2,443			5,548		7,991

Total, net	$	3,184		$	7,040	$	10,224

June 30, 2017	Lease Receivables			Financed Service Contracts 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 December 31, 2017 are presented as follows (in thousands):

Year Ending June 30,	Amount
2018 (remaining 6 months)	$	465
2019	930
2020	930
2021	930
2022	310

Total	$	3,565

Inventories

Inventories consisted of the following (in thousands):

	December 31, 2017		June 30, 2017
Raw materials	$	42,392	$	38,803
Work-in-process	18,292		15,471
Finished goods	53,125		50,780

Inventories	$	113,809	$	105,054

Property and equipment, net

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

	December 31, 2017			June 30, 2017
Furniture and fixtures	$	4,389		$	4,364
Computer and office equipment	11,717			11,802
Software	11,420			11,457
Leasehold improvements	23,239			23,164
Machinery and equipment	45,988			48,742
Construction in progress	4,687			3,533

	101,440			103,062
Less: Accumulated depreciation	(78,839		)	(80,000		)

Property and equipment, net	$	22,601		$	23,062

Depreciation expense related to property and equipment for the three and six months ended December 31, 2017 was $2.5 million and $4.9 million, respectively. Depreciation expense related to property and equipment for the three and six months ended December 31, 2016 was $2.6 million and $5.3 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):

	December 31, 2017			June 30, 2017
Net unrealized gain (loss) on short-term investments	$	35		$	(89	)
Cumulative foreign currency translation adjustment	1,712			1,154
Defined benefit pension obligation	(1,117		)	(1,117		)

Accumulated other comprehensive income (loss)	$	630		$	(52	)

Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 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):

	December 31, 2017		June 30, 2017
Balance at the beginning of the period	$	57,812	$	57,848
Currency translation	98		(36		)

Balance at the end of the period	$	57,910	$	57,812

In the second quarter of fiscal 2018, 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 carrying amount of acquired intangible assets, net, is as follows (in thousands):

		December 31, 2017							June 30, 2017
		Gross							Gross
	Useful Lives	Carrying		Accumulated			Net		Carrying		Accumulated			Net
	(in years)	Amount		Amortization			Amount		Amount		Amortization			Amount
Patent license	7	$	1,000	$	(107	)	$	893	$	1,000	$	(36	)	$	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 December 31, 2017 and June 30, 2017.

Amortization expense related to intangible assets for the three and six months ended December 31, 2017 was $0.04 million and $0.07 million, respectively. Amortization expense related to intangible assets for the three and six months ended December 31, 2016 was $2.0 million and $4.0 million, respectively.

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

Year Ending June 30,	Amount
2018 (remaining 6 months)	$	72
2019	143
2020	143
2021	143
2022	143
Thereafter	249

	$	893

- 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

6 Months Ended

Dec. 31, 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 December 31, 2017 and June 30, 2017, respectively. The Company reviews its investments quarterly to identify and evaluate investments that have an indication of possible impairment. Gross realized gains and losses were insignificant for the six months ended December 31, 2017 and the year ended June 30, 2017. In January 2018, the Company sold eight investments for proceeds of $23.9 million, realizing an insignificant loss on the sale of investments.

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

	December 31, 2017
	Amortized		Estimated
	Cost		Fair Value
Due in 1 year or less	$	24,482	$	24,516

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
December 31, 2017	Losses			Fair Value		Losses			Fair Value		Losses			Fair Value
U. S. government agency securities	$	(81	)	$	23,868	$	—		$	—	$	(81	)	$	23,868

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

6 Months Ended

Dec. 31, 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 and its corporate 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):

	December 31, 2017
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	77,767	$	—	$	—		$	77,767	$	—

Level 1
Money market funds	1,742		—		—			1,742		—

Level 2
U.S. government agency securities	17,999		—		(75		)	—		17,924
U. S. treasury bills	5,950				(6		)			5,944
Corporate securities	533		115							648

Total	$	103,991	$	115	$	(81	)	$	79,509	$	24,516

	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 (as defined below), the 3.50% Series A Convertible Notes (as defined below) and the 3.75% Convertible Notes (as defined below) (collectively the “Notes”) are not readily available. The carrying value of the Revolving Credit Facility (as defined below) and the Term Loan (as defined below) (collectively the “Credit Facilities”, together with the Notes, “Debt”) approximate 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 Credit Facilities are classified as Level 2 within the fair value hierarchy.

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

	December 31, 2017				June 30, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
3.50% Convertible Notes	$	12,976	$	13,260	$	44,099	$	48,146
3.50% Series A Convertible Notes	26,475		26,818		68,924		74,982
3.75% Convertible Notes	67,819		88,400		—		—
Revolving Credit Facility	24,983		24,983		51,548		51,548
Term Loan	37,623		37,623		—		—

Total	$	169,876	$	191,084	$	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

6 Months Ended

Dec. 31, 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 has a maturity date of February 1, 2018, unless earlier repurchased, redeemed or converted, thus it has been classified as short-term debt on the Company’s unaudited condensed consolidated balance sheets.

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 December 31, 2017, approximately $13.0 million aggregate principal amount was outstanding. On February 1, 2018, the 3.50% Convertible Notes were settled in full. Refer to Note 14. Subsequent Events to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

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. The 3.50% Series A Convertible Notes has a maturity date of February 1, 2018; thus, it has been classified as short-term debt on the Company’s unaudited condensed consolidated balance sheets. As of December 31, 2017, approximately $26.6 million aggregate principal amount was outstanding. On February 1, 2018, the 3.50% Series A Convertible Notes were repaid in full. Refer to Note 14. Subsequent Events to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

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 certain circumstances

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. As of December 31, 2017, approximately $67.8 million aggregate principal amount was outstanding.

Revolving Credit Facility

On June 14, 2017, the Company entered into a credit and security agreement with a lender (the “Credit Agreement”). The Credit Agreement provides the Company with a revolving credit facility in the initial amount of $52.0 million (the “Revolving Credit Facility”). 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. Interest on the borrowings under the Revolving Credit Facility is payable monthly in arrears at an annual interest rate of reserve-adjusted, 90-day LIBOR plus 4.50% and had initial maturity date of June 14, 2021.

In December 2017, concurrently with the Term Loan Agreement described below, the Company entered into an amendment to the Credit Agreement (the “Amendment” and, collectively with the Credit Agreement, the “Amended Credit Agreement”). The Amendment reduced the maximum borrowings under the Revolving Credit Facility to $32.0 million and extended the maturity date of the Revolving Credit Facility to December 15, 2022.

The Amended Credit Agreement 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 Amended Credit Agreement) to be less than a certain specified ratio for each fiscal quarter during the term of the Revolving Credit Facility. In addition, the Amended Credit Agreement contains customary restrictive covenants that limit, among other things, the ability of the Company and its subsidiaries to (i) incur additional 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 December 31, 2017. As of December 31, 2017, approximately $25.0 million aggregate principal amount was outstanding under the Revolving Credit Facility.

Term Loan

In December 2017, the Company entered into a credit and security agreement with a lender (the “Term Loan Agreement”). The Term Loan Agreement provides for an initial term loan of $40.0 million with an additional tranche of $20.0 million available through December 31, 2018, if specified conditions are met (the “Term Loan”). In connection with the Amendment, the Company used a portion of the net proceeds from the initial advance to repay a portion of the outstanding borrowings under the Revolving Credit Facility. Interest on the Term Loan is payable monthly in arrears at an annual interest rate of 6.75% plus 90-day LIBOR. The Term Loan Agreement matures December 15, 2022 and, if prepaid, has fees equal to 3%, 2%, and 1% of the prepayment amount if such termination occurs within the first year, the second year, and the third year of funding, respectively. The term of the loan is 60 months with interest only for the first 24 months followed by straight-line amortization of principal for the remaining months. In addition, the Company will pay an annual administrative fee of 0.25% and a final payment of 4.0% of the Term Loan amount.

The Term Loan issuance costs of $2.0 million, including a portion of the unamortized offering costs of Revolving Credit Facility, and a $2.0 million debt discount were deferred and being amortized over the 5-year term of the Term Loan.

The following table presents the carrying value of all Debt (in thousands):

As of December 31, 2017	Revolving Credit Facility		3.50% Convertible Notes			3.50% Series A Convertible Notes			3.75% Convertible Notes			Term Loan			Total
Carrying amount of equity conversion component	$	—	$	—		$	2,806		$	14,650		$	—		$	17,456

Principal amount of the Notes	$	24,983	$	13,000		$	26,552		$	85,000		$	40,000		$	189,535
Unamortized debt costs	—		(24		)	—			(3,649		)	(2,002		)	(5,675		)
Unamortized debt discount	—		—			(77		)	(13,532		)	(375		)	(13,984		)

Net carrying amount	$	24,983	$	12,976		$	26,475		$	67,819		$	37,623		$	169,876

Reported as:
Short-term debt	$	39,451
Long-term debt	130,425

Total debt	$	169,876

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 Debt is as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2017		2016		2017		2016
Interest expense related to contractual interest coupon	$	2,427	$	2,339	$	4,836	$	4,870
Interest expense related to amortization of debt discount	865		640		1,727		1,456
Interest expense related to amortization of debt issuance costs	420		379		868		782

	$	3,712	$	3,358	$	7,431	$	7,108

Net Loss Per Common Share

6 Months Ended

Dec. 31, 2017

Net Loss Per Common Share

Net Loss Per Common Share

Note 11. Net Loss Per Common Share

The Company reports both basic and diluted loss per share, which is based on 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 loss per common share follows (in thousands):

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2017			2016			2017			2016
Numerator:
Net loss used to compute basic and diluted loss per share	$	(4,719	)	$	(9,369	)	$	(14,101	)	$	(19,295	)

Denominator:
Weighted average shares used to compute basic and diluted loss per share	84,586			82,328			84,167			81,952

The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the settlement of vested Restricted Stock Units (RSU), Market Stock Units (MSU) and Performance Stock Units (PSU), and the purchase of shares under the Company’s 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 3.50% Convertible Notes is included in the calculation of diluted net income per share only if their inclusion is 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 December 31,
	2017	2016
Stock options	2,799	2,850
RSUs, PSUs and MSUs	5,204	5,622
3.50% Convertible Notes	2,439	8,378

	10,442	16,850

3.75% Convertible Notes and 3.50% Series A Convertible Notes—Diluted Share Impact

The 3.75% Convertible Notes and 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 shares of our common stock issuable upon conversion of the outstanding principal amount of the 3.75% Convertible Notes and the 3.50% Series A Convertible Notes as of December 31, 2017, totaling approximately 19.8 million shares of our common stock, were not included in the basic and diluted net loss per common share table above.

Segment Information

6 Months Ended

Dec. 31, 2017

Segment Information

Segment Information

Note 12. Segment Information

The Company operates in one reportable 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.

The following tables present net revenue and long-lived asset information based on geographic region. Net revenue is based on the destination of the shipments and long-lived assets are based on the physical location of the assets (in thousands):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
Net Revenue	2017		2016		2017		2016
Americas	$	37,754	$	39,183	$	73,777	$	79,825
Europe, Middle East, India and Africa	32,006		25,638		67,154		46,920
Asia-Pacific	30,569		22,681		50,348		47,263

Total	$	100,329	$	87,502	$	191,279	$	174,008

	December 31,		June 30,
Property and equipment, net	2017		2017
Americas	$	18,108	$	18,435
Europe, Middle East, India and Africa	763		730
Asia-Pacific	3,730		3,897

Total	$	22,601	$	23,062

Recent Accounting Pronouncements (Policies)	6 Months Ended
Recent Accounting Pronouncements (Policies)	Dec. 31, 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 and related disclosures.
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 and related disclosures. 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 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. The Company does not believe the adoption of this standard will have a material impact 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 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 a 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. However, the FASB has recently proposed guidance that would permit companies not to restate periods priors to adoption. The 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 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 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. The standard will be effective for the Company in the first quarter of its fiscal year 2019. 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)

6 Months Ended

Dec. 31, 2017

Supplemental Financial Information

Schedule of financing receivables

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

December 31, 2017	Lease Receivables			Financed Service Contracts and Other		Total
Gross	$	3,565		$	7,040	$	10,605
Unearned income	(342		)	—		(342		)
Allowance for credit loss	(39		)	—		(39		)

Total, net	$	3,184		$	7,040	$	10,224

Reported as:
Current	$	741		$	1,492	$	2,233
Non-current	2,443			5,548		7,991

Total, net	$	3,184		$	7,040	$	10,224

June 30, 2017	Lease Receivables			Financed Service Contracts 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 December 31, 2017 are presented as follows (in thousands):

Year Ending June 30,	Amount
2018 (remaining 6 months)	$	465
2019	930
2020	930
2021	930
2022	310

Total	$	3,565

Schedule of inventories

Inventories consisted of the following (in thousands):

	December 31, 2017		June 30, 2017
Raw materials	$	42,392	$	38,803
Work-in-process	18,292		15,471
Finished goods	53,125		50,780

Inventories	$	113,809	$	105,054

Schedule of property and equipment, net

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

	December 31, 2017			June 30, 2017
Furniture and fixtures	$	4,389		$	4,364
Computer and office equipment	11,717			11,802
Software	11,420			11,457
Leasehold improvements	23,239			23,164
Machinery and equipment	45,988			48,742
Construction in progress	4,687			3,533

	101,440			103,062
Less: Accumulated depreciation	(78,839		)	(80,000		)

Property and equipment, net	$	22,601		$	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):

	December 31, 2017			June 30, 2017
Net unrealized gain (loss) on short-term investments	$	35		$	(89	)
Cumulative foreign currency translation adjustment	1,712			1,154
Defined benefit pension obligation	(1,117		)	(1,117		)

Accumulated other comprehensive income (loss)	$	630		$	(52	)

Goodwill and Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets

Schedule of goodwill

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

	December 31, 2017		June 30, 2017
Balance at the beginning of the period	$	57,812	$	57,848
Currency translation	98		(36		)

Balance at the end of the period	$	57,910	$	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):

		December 31, 2017							June 30, 2017
		Gross							Gross
	Useful Lives	Carrying		Accumulated			Net		Carrying		Accumulated			Net
	(in years)	Amount		Amortization			Amount		Amount		Amortization			Amount
Patent license	7	$	1,000	$	(107	)	$	893	$	1,000	$	(36	)	$	964

Schedule of estimated future amortization expense of acquired intangible assets

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

Year Ending June 30,	Amount
2018 (remaining 6 months)	$	72
2019	143
2020	143
2021	143
2022	143
Thereafter	249

	$	893

Investments (Tables)

6 Months Ended

Dec. 31, 2017

Investments

Schedule of contractual maturities of available-for-sale securities

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

	December 31, 2017
	Amortized		Estimated
	Cost		Fair Value
Due in 1 year or less	$	24,482	$	24,516

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
December 31, 2017	Losses			Fair Value		Losses			Fair Value		Losses			Fair Value
U. S. government agency securities	$	(81	)	$	23,868	$	—		$	—	$	(81	)	$	23,868

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)

6 Months Ended

Dec. 31, 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):

	December 31, 2017
								Estimated Fair Value
			Gross		Gross			Cash and
	Amortized		Unrealized		Unrealized			Cash		Short-term
	Cost		Gains		Losses			Equivalents		Investments
Cash	$	77,767	$	—	$	—		$	77,767	$	—

Level 1
Money market funds	1,742		—		—			1,742		—

Level 2
U.S. government agency securities	17,999		—		(75		)	—		17,924
U. S. treasury bills	5,950				(6		)			5,944
Corporate securities	533		115							648

Total	$	103,991	$	115	$	(81	)	$	79,509	$	24,516

	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 Debt (in thousands):

	December 31, 2017				June 30, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
3.50% Convertible Notes	$	12,976	$	13,260	$	44,099	$	48,146
3.50% Series A Convertible Notes	26,475		26,818		68,924		74,982
3.75% Convertible Notes	67,819		88,400		—		—
Revolving Credit Facility	24,983		24,983		51,548		51,548
Term Loan	37,623		37,623		—		—

Total	$	169,876	$	191,084	$	164,571	$	174,676

Debt (Tables)

6 Months Ended

Dec. 31, 2017

Debt

Schedule of carrying values of all Debt

The following table presents the carrying value of all Debt (in thousands):

As of December 31, 2017	Revolving Credit Facility		3.50% Convertible Notes			3.50% Series A Convertible Notes			3.75% Convertible Notes			Term Loan			Total
Carrying amount of equity conversion component	$	—	$	—		$	2,806		$	14,650		$	—		$	17,456

Principal amount of the Notes	$	24,983	$	13,000		$	26,552		$	85,000		$	40,000		$	189,535
Unamortized debt costs	—		(24		)	—			(3,649		)	(2,002		)	(5,675		)
Unamortized debt discount	—		—			(77		)	(13,532		)	(375		)	(13,984		)

Net carrying amount	$	24,983	$	12,976		$	26,475		$	67,819		$	37,623		$	169,876

Reported as:
Short-term debt	$	39,451
Long-term debt	130,425

Total debt	$	169,876

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 Debt

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

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2017		2016		2017		2016
Interest expense related to contractual interest coupon	$	2,427	$	2,339	$	4,836	$	4,870
Interest expense related to amortization of debt discount	865		640		1,727		1,456
Interest expense related to amortization of debt issuance costs	420		379		868		782

	$	3,712	$	3,358	$	7,431	$	7,108

Net Loss Per Common Share (Tables)

6 Months Ended

Dec. 31, 2017

Net Loss Per Common Share

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 loss per common share follows (in thousands):

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2017			2016			2017			2016
Numerator:
Net loss used to compute basic and diluted loss per share	$	(4,719	)	$	(9,369	)	$	(14,101	)	$	(19,295	)

Denominator:
Weighted average shares used to compute basic and diluted loss per share	84,586			82,328			84,167			81,952

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 December 31,
	2017	2016
Stock options	2,799	2,850
RSUs, PSUs and MSUs	5,204	5,622
3.50% Convertible Notes	2,439	8,378

	10,442	16,850

Segment Information (Tables)

6 Months Ended

Dec. 31, 2017

Segment Information

Summary of revenue by geographic region

The following tables present net revenue and long-lived asset information based on geographic region. (in thousands):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
Net Revenue	2017		2016		2017		2016
Americas	$	37,754	$	39,183	$	73,777	$	79,825
Europe, Middle East, India and Africa	32,006		25,638		67,154		46,920
Asia-Pacific	30,569		22,681		50,348		47,263

Total	$	100,329	$	87,502	$	191,279	$	174,008

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

Net revenue is based on the destination of the shipments and long-lived assets are based on the physical location of the assets (in thousands):

	December 31,		June 30,
Property and equipment, net	2017		2017
Americas	$	18,108	$	18,435
Europe, Middle East, India and Africa	763		730
Asia-Pacific	3,730		3,897

Total	$	22,601	$	23,062

Supplemental Financial Information - Balance Sheet Components (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Financing receivables
Gross	$ 10,605		$ 10,605		$ 10,298
Unearned income	(342)		(342)		(433)
Allowance for credit loss	(39)		(39)		(39)
Total, net	10,224		10,224		9,826
Current	2,233		2,233		2,397
Non-current	7,991		7,991		7,429
Capital leases future minimum payments receivable
2018 (remaining 6 months)	465		465
2019	930		930
2020	930		930
2021	930		930
2022	310		310
Total	3,565		3,565
Inventories
Raw materials	42,392		42,392		38,803
Work-in-process	18,292		18,292		15,471
Finished goods	53,125		53,125		50,780
Inventories	113,809		113,809		105,054
Property and equipment, net
Property and equipment, gross	101,440		101,440		103,062
Less: Accumulated depreciation	(78,839)		(78,839)		(80,000)
Property and equipment, net	22,601		22,601		23,062
Depreciation expense	2,500	$ 2,600	4,900	$ 5,300
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	4,389		4,389		4,364
Computer and office equipment
Property and equipment, net
Property and equipment, gross	11,717		11,717		11,802
Software
Property and equipment, net
Property and equipment, gross	11,420		11,420		11,457
Leasehold improvements
Property and equipment, net
Property and equipment, gross	23,239		23,239		23,164
Machinery and equipment
Property and equipment, net
Property and equipment, gross	45,988		45,988		48,742
Construction in progress
Property and equipment, net
Property and equipment, gross	4,687		4,687		3,533
Lease Receivables
Financing receivables
Gross	3,565		3,565		4,030
Unearned income	(342)		(342)		(433)
Allowance for credit loss	(39)		(39)		(39)
Total, net	3,184		3,184		3,558
Current	741		741		720
Non-current	2,443		2,443		2,838
Financed Service Contracts and Other
Financing receivables
Gross	7,040		7,040		6,268
Total, net	7,040		7,040		6,268
Current	1,492		1,492		1,677
Non-current	$ 5,548		$ 5,548		$ 4,591

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 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			98		(36)
Balance at the end of the period	$ 57,910		57,910		$ 57,812
Impairment of goodwill		$ 0
Net Amount	893		893
Amortization expense	40	$ 2,000	70	$ 4,000
Estimated future amortization expense of purchased intangible assets
2018 (remaining 6 months)	72		72
2019	143		143
2020	143		143
2021	143		143
2022	143		143
Thereafter	249		249
Net Amount	893		$ 893
Patent license
Changes in the carrying amount of goodwill
Useful Lives			7 years		7 years
Gross Carrying Amount	1,000		$ 1,000		$ 1,000
Accumulated Amortization	(107)		(107)		(36)
Net Amount	893		893		964
Estimated future amortization expense of purchased intangible assets
Net Amount	$ 893		$ 893		$ 964

Investments (Details) $ in Thousands	1 Months Ended	6 Months Ended	12 Months Ended
Investments (Details) $ in Thousands	Jan. 31, 2018 USD ($) position	Dec. 31, 2017 USD ($) position	Jun. 30, 2017 USD ($) position
Cash, cash equivalents and short-term investments
Number of positions held in an unrealized loss position \| position		8	8
Number of available-for-sale securities sold \| position	8
Proceeds from Sale of Available-for-sale Securities, Debt	$ 23,900
Amortized Cost
Due in 1 year or less		$ 24,482
Estimated Fair Value
Due in 1 year or less		24,516
U.S. government agency securities
Gross Unrealized Losses
Less Than 12 Months		(81)	$ (31)
12 Months or Greater			(58)
Total		(81)	(89)
Estimated Fair Value
Less Than 12 Months		23,868	11,970
12 Months or Greater			11,939
Total		$ 23,868	$ 23,909

Debt (Details)		1 Months Ended			3 Months Ended		6 Months Ended
Debt (Details)	Jun. 14, 2017 USD ($)	Dec. 31, 2017 USD ($) $ / shares	Apr. 30, 2014 USD ($) $ / shares	Feb. 28, 2013 USD ($) $ / shares	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($)	Aug. 31, 2017	Jun. 30, 2017 USD ($)	Aug. 31, 2016 USD ($)
Debt
Carrying amount of equity conversion component		$ 17,456,000			$ 17,456,000		$ 17,456,000			$ 7,844,000
Principal amount of the Notes		189,535,000			189,535,000		189,535,000			166,548,000
Unamortized debt costs		(5,675,000)			(5,675,000)		(5,675,000)			(555,000)
Unamortized debt discount		(13,984,000)			(13,984,000)		(13,984,000)			(1,422,000)
Net carrying amount		169,876,000			169,876,000		169,876,000			164,571,000
Reported as:
Short-term debt		39,451,000			39,451,000		39,451,000			113,023,000
Long-term debt		130,425,000			130,425,000		130,425,000			51,548,000
Net carrying amount		169,876,000			169,876,000		169,876,000			164,571,000
Interest expense related to contractual interest coupon					2,427,000	$ 2,339,000	4,836,000	$ 4,870,000
Interest expense related to amortization of debt discount					865,000	640,000	1,727,000	1,456,000
Interest expense related to amortization of debt issuance costs					420,000	379,000	868,000	782,000
Total interest expense recognized					3,712,000	$ 3,358,000	7,431,000	$ 7,108,000
Revolving Credit Facility
Debt
Initial borrowing capacity	$ 52,000,000
Minimum drawn balance (as a percent)	30.00%
Outstanding revolving credit facility		25,000,000			25,000,000		25,000,000
Principal amount of the Notes		24,983,000			24,983,000		24,983,000			51,548,000
Net carrying amount		24,983,000			24,983,000		24,983,000			51,548,000
Reported as:
Net carrying amount		24,983,000			24,983,000		24,983,000			$ 51,548,000
90-day LIBOR \| Revolving Credit Facility
Debt
Variable rate (as a percent)	4.50%
Interest rate determination basis	90-day LIBOR
Repurchase
Debt
Repurchase/Retirement of existing notes											$ 28,000,000
Term Loan Facility due December 2022
Debt
Principal amount of the Notes		40,000,000			40,000,000		40,000,000
Unamortized debt costs		(2,002,000)			(2,002,000)		(2,002,000)
Unamortized debt discount		(375,000)			(375,000)		(375,000)
Net carrying amount		37,623,000			37,623,000		37,623,000
Reported as:
Net carrying amount		37,623,000			37,623,000		37,623,000
Term Loan Facility due December 2022 \| Term loan
Debt
Debt issuance and offering costs		2,000,000
Initial term loan borrowing capacity		40,000,000			40,000,000		40,000,000
Additional term loan borrowing capacity		$ 20,000,000			20,000,000		20,000,000
Loan prepayment fees for first year (percentage)		3.00%
Loan prepayment fees for second year (percentage)		2.00%
Loan prepayment fees for third year (percentage)		1.00%
Term of loan (in months)		60 months
Term of interest payable (in months)		24 months
Administrative fee payable on term loan as a percentage		0.25%
Final payment of administrative fee payable on term loan as a percentage		4.00%
Unamortized debt discount		$ (2,000,000)			(2,000,000)		(2,000,000)
Amortization of debt discount (in years)		5 years
Term Loan Facility due December 2022 \| 90-day LIBOR \| Term loan
Debt
Variable rate (as a percent)		6.75%
Interest rate determination basis		90-day LIBOR
Revolving Credit Agreement \| Revolving Credit Facility
Debt
Reduced borrowing capacity		$ 32,000,000			$ 32,000,000		$ 32,000,000
3.50% Convertible Notes
Debt
Interest rate (as a percent)		3.50%		3.50%	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			$ 13,000,000		$ 13,000,000			$ 44,654,000
Unamortized debt costs		(24,000)			(24,000)		(24,000)			(555,000)
Net carrying amount		12,976,000			12,976,000		12,976,000			44,099,000
Reported as:
Net carrying amount		$ 12,976,000			$ 12,976,000		$ 12,976,000			$ 44,099,000
3.50% Series A Convertible Notes
Debt
Interest rate (as a percent)		3.50%	3.50%		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			$ 2,806,000		$ 2,806,000			$ 7,844,000
Principal amount of the Notes		26,552,000			26,552,000		26,552,000			70,346,000
Unamortized debt discount		(77,000)			(77,000)		(77,000)			(1,422,000)
Net carrying amount		26,475,000			26,475,000		26,475,000			68,924,000
Reported as:
Net carrying amount		26,475,000			26,475,000		$ 26,475,000			$ 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			$ 1,000		$ 1,000
Conversion price (in dollars per share) \| $ / shares		$ 5.72			$ 5.72		$ 5.72
Aggregate principal amount of debt issued											85,000,000
Repurchase price, as a percentage of the principal amount, in the event of a fundamental change, as defined in Indenture							100.00%
Carrying amount of equity conversion component		$ 14,650,000			$ 14,650,000		$ 14,650,000
Principal amount of the Notes		85,000,000			85,000,000		85,000,000
Unamortized debt costs		(3,649,000)			(3,649,000)		(3,649,000)
Unamortized debt discount		(13,532,000)			(13,532,000)		(13,532,000)
Net carrying amount		67,819,000			67,819,000		67,819,000
Reported as:
Net carrying amount		$ 67,819,000			$ 67,819,000		$ 67,819,000
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

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Unaudited Condensed Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 442	$ 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	85,287,635	83,739,804
Common stock, outstanding shares	85,287,635	83,739,804

Basis of Presentation and Principles of Consolidation	6 Months Ended
Basis of Presentation and Principles of Consolidation	Dec. 31, 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. The results for the three and six months ended December 31, 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	6 Months Ended
Commitments and Contingencies	Dec. 31, 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 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 December 31, 2017.

Income Tax	6 Months Ended
Income Tax	Dec. 31, 2017
Income Tax
Income Tax	Note 13. Income Tax On a quarterly basis, the Company provides for income taxes based upon an estimated annual effective income tax rate. The Company recognized an income tax benefit of less than $0.1 million and an income tax expense of $0.7 million for the three and six months ended December 31, 2017, respectively. The Company recognized an income tax expense of $0.4 million and an income tax benefit of $0.2 million for the three and six months ended December 31, 2016, respectively. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Act”) was signed into law. The Company believes the impact of the inclusion of accumulated post-1986 foreign earnings on which U.S. income tax is currently deferred to a one-time transition tax on December 31, 2017 would not be material to the Company. The measurement of the transition tax liability requires extensive effort on the calculation of the foreign earnings and profit on a cumulative basis. The Company has made reasonable efforts to determine that there would be no material financial impact on this one-time transition tax as the Company believes its existing tax attributes can be used to offset the transition tax without limitation, but an election is available to not claim the net operating loss deduction against the mandatory foreign earnings inclusion at December 31, 2017. Under ASC 740, Accounting for Income Taxes, the enactment of the Tax Act also requires companies, to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. There is no further change to its assertion on maintaining a full valuation allowance against its U.S. deferred tax assets. The Company’s gross deferred tax assets will be revalued from 35% to 21% with a corresponding offset to the valuation allowance and any potential other taxes arising due to the Tax Act will result in reductions to its net operating loss carryforward and valuation allowance. Deferred tax assets of approximately $174.0 million will be revalued to approximately $117.0 million with a corresponding decrease to the Company’s valuation allowance. The Company will continue to analyze the Tax Act to assess the full effects on its financial results, including disclosures, for our fiscal year ending June 30, 2018.

Subsequent Events	6 Months Ended
Subsequent Events	Dec. 31, 2017
Subsequent Events
Subsequent Events	Note 14. Subsequent Events 3.50% Convertible Notes On January 30, 2018, the Company entered into exchange agreements with the holders of the 3.50% Convertible Notes (the “Exchange Agreements”), which allowed the Company to settle the $13.0 million outstanding principal amount of 3.50% Convertible Notes and accrued interest in cash at maturity, and any excess equity value over the original conversion price in shares (the “Exchange Shares”) to be delivered in February 2018. The Company also agreed to pay a $0.3 million exchange premium in the form of shares of the Company’s common stock (the “Exchange Premium” and together with the Exchange Shares, the “Share Consideration”). The Share Consideration is determined based on a prescribed formula in the Exchange Agreements. On February 1, 2018, pursuant to the Exchange Agreements, the Company paid $13.2 million in cash to settle outstanding principal and accrued interest with respect to the 3.50% Convertible Notes. The total number of shares to be delivered for the Share Consideration will be determined following the three-day averaging period specified in the Exchange Agreement. 3.50% Series A Convertible Notes On February 1, 2018, the Company paid $27.0 million in cash and issued an insignificant number of shares of common stock to settle the outstanding principal amount and accrued interest under the 3.50% Series A Convertible Notes upon maturity.

Supplemental Financial Information - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss)
Net unrealized gain (loss) on short-term investments	$ 35	$ (89)
Cumulative foreign currency translation adjustment	1,712	1,154
Defined benefit pension obligation	(1,117)	(1,117)
Accumulated other comprehensive income (loss)	$ 630	$ (52)

Derivative Financial Instruments (Details) $ in Thousands	3 Months Ended		6 Months Ended
Derivative Financial Instruments (Details) $ in Thousands	Dec. 31, 2017 USD ($) contract	Dec. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) contract	Dec. 31, 2016 USD ($)	Jun. 30, 2017 contract
Outstanding foreign currency contracts (number of contracts) \| contract	0		0		0
Other expense, net
Foreign currency transactions gain (loss)	$ 2,521	$ (48)	$ 2,525	$ 84
Other expense, net \| Foreign contracts
Foreign currency transactions gain (loss)	$ (2,679)	$ (604)	$ (2,438)	$ (1,167)

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Financial assets
Amortized Cost	$ 103,991	$ 96,082
Gross Unrealized Gains	115
Gross Unrealized Losses	(81)	(89)
Cash and Cash Equivalents	79,509	72,084
Short-term Investments	24,516	23,909
Level 2 \| U.S. government agency securities
Financial assets
Amortized Cost	17,999	23,998
Gross Unrealized Losses	(75)	(89)
Short-term Investments	17,924	23,909
Level 2 \| U.S. treasury bills
Financial assets
Amortized Cost	5,950
Gross Unrealized Losses	(6)
Short-term Investments	5,944
Level 2 \| Corporate securities
Financial assets
Amortized Cost	533
Gross Unrealized Gains	115
Short-term Investments	648
Cash
Financial assets
Amortized Cost	77,767	70,515
Cash and Cash Equivalents	77,767	70,515
Money market funds \| Level 1
Financial assets
Amortized Cost	1,742	1,569
Cash and Cash Equivalents	$ 1,742	$ 1,569

Fair Value Measurements - Convertible Notes (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017	Apr. 30, 2014	Feb. 28, 2013
Carrying Value
Fair value measurement
Long term debt	$ 169,876	$ 164,571
Fair Value
Fair value measurement
Long term debt	$ 191,084	$ 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	$ 12,976	$ 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	$ 26,475	68,924
Non-recurring basis \| Level 2 \| 3.50% Series A Convertible Notes \| Fair Value
Fair value measurement
Long term debt	$ 26,818	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	$ 67,819
Non-recurring basis \| Level 2 \| 3.75% Convertible Notes \| Fair Value
Fair value measurement
Long term debt	88,400
Revolving Credit Facility \| Non-recurring basis \| Level 2 \| Carrying Value
Fair value measurement
Long term debt	24,983	51,548
Revolving Credit Facility \| Non-recurring basis \| Level 2 \| Fair Value
Fair value measurement
Long term debt	24,983	$ 51,548
Term loan \| Non-recurring basis \| Level 2 \| Carrying Value
Fair value measurement
Long term debt	37,623
Term loan \| Non-recurring basis \| Level 2 \| Fair Value
Fair value measurement
Long term debt	$ 37,623

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) $ in Thousands	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) segment	Dec. 31, 2016 USD ($)	Jun. 30, 2017 USD ($)
Segment Information
Number of reportable segments \| segment			1
Revenue	$ 100,329	$ 87,502	$ 191,279	$ 174,008
Property and equipment, net	22,601		22,601		$ 23,062
Americas
Segment Information
Revenue	37,754	39,183	73,777	79,825
Property and equipment, net	18,108		18,108		18,435
Europe, Middle East, India and Africa
Segment Information
Revenue	32,006	25,638	67,154	46,920
Property and equipment, net	763		763		730
Asia-Pacific
Segment Information
Revenue	30,569	$ 22,681	50,348	$ 47,263
Property and equipment, net	$ 3,730		$ 3,730		$ 3,897

Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Income Tax (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017	Jul. 01, 2017
Income Tax
Income tax expense (benefit)	$ (36)	$ 426	$ 723	$ (200)
Effective income tax rate			21.00%		35.00%
Deferred tax assets	$ 117,000		$ 117,000			$ 174,000

Subsequent Events (Details) - USD ($) $ in Thousands	Feb. 01, 2018	Jan. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Subsequent events
Common stock value			$ 85	$ 84
Subsequent Event \| 3.50% Convertible Notes
Subsequent events
Interest rate (as a percent)		3.50%
Repayment of convertible notes and accrued interest	$ 13,200	$ 13,000
Common stock value		$ 300
Subsequent Event \| 3.5% Series A Convertible Notes
Subsequent events
Interest rate (as a percent)	3.50%
Repayment of convertible notes and accrued interest	$ 27,000