0000950170-24-012210 | 10-Q | XBRL Viewer

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Derivative Financial Instruments - Additional Information (Details)	6 Months Ended
	Dec. 31, 2023
Maximum
Length of forward contracts	three months

Segment Information - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Segment Information
Total net revenue	$ 107,238	$ 114,760	$ 211,130	$ 211,253
Americas
Segment Information
Total net revenue	23,742	27,919	44,299	55,204
Europe, India, Middle East, and Africa
Segment Information
Total net revenue	43,800	39,664	83,333	76,410
China
Segment Information
Total net revenue	23,375	22,278	49,590	35,278
Japan
Segment Information
Total net revenue	10,648	15,700	23,240	27,188
Asia Pacific, excluding China
Segment Information
Total net revenue	$ 5,673	$ 9,199	$ 10,668	$ 17,173

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Stock Incentive Plan and Employee Stock Purchase Plan - Summary of Share-Based Compensation Expenses by Functional Line Item Noted Within Company's Operating Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Share-based compensation expenses
Share-based compensation expense	$ 2,314	$ 3,126	$ 4,706	$ 6,042
Cost of revenue
Share-based compensation expenses
Share-based compensation expense	390	443	626	809
Research and development
Share-based compensation expenses
Share-based compensation expense	280	403	681	771
Selling and marketing
Share-based compensation expenses
Share-based compensation expense	437	458	845	944
General and administrative
Share-based compensation expenses
Share-based compensation expense	$ 1,207	$ 1,822	$ 2,554	$ 3,518

Revenue - Summary of Contract with Customer, Asset and Liability (Details) - USD ($)
$ in Thousands

6 Months Ended

Dec. 31, 2023

Jun. 30, 2023

Contract Assets:

Unbilled accounts receivable - current

^[1]

$ 13,187

$ 9,847

Interest receivable - current

^[2]

332

379

Long-term accounts receivable

^[3]

4,564

4,734

Interest receivable - non-current

^[3]

605

673

Contract Liabilities:

Customer advances

22,677

20,777

Deferred revenue – current

77,406

72,185

Deferred revenue – non-current

24,809

$ 27,079

Change in assets, value:

Change in unbilled accounts receivable – current, value

^[1]

3,340

Change in interest receivable – current, value

^[2]

(47)

Change in long-term accounts receivable, value

^[3]

(170)

Change in Interest receivable – non-current, value

^[3]

(68)

Change in liabilities, value:

Change in customer advances, value

1,900

Change in deferred revenue – current, value

5,221

Change in deferred revenue – non-current, value

$ (2,270)

Change in assets, percentage:

Change in unbilled accounts receivable – current, percentage

^[1]

34.00%

Change in interest receivable – current, percentage

^[2]

(12.00%)

Change in long-term accounts receivable, percentage

^[3]

(4.00%)

Change in Interest receivable – non-current, percentage

^[3]

(10.00%)

Change in liabilities, percentage:

Change in customer advances, percentage

9.00%

Change in deferred revenue – current, percentage

7.00%

Change in deferred revenue – non-current, percentage

(8.00%)

[1]	Included in accounts receivable on the unaudited condensed consolidated balance sheets.
[2]	Included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets.
[3]	Included in other assets on the unaudited condensed consolidated balance sheets.

Commitments and Contingencies

6 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. Commitments and Contingencies

Litigation

From time to time, the Company is involved in legal proceedings, including claims, investigations, and inquiries, 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. To the extent there is a reasonable possibility that a loss exceeding amounts already recognized may be incurred and the amount of such additional loss would be material, we will either disclose the estimated additional loss or state that such an estimate cannot be made. Currently, management believes the Company does not have any probable and reasonably estimable material losses related to any current legal proceedings and claims. Although occasional adverse decisions or settlements may occur, management does not believe that an adverse determination with respect to any of these claims would individually, or in the aggregate, materially and adversely affect the Company’s financial condition or operating results. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company’s control. Should any of these estimates and assumptions change or prove to have been incorrect, the Company could incur significant charges related to legal matters that could have a material impact on its results of operations, financial position and cash flows.

Indemnities

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 its customer. 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, 2023.

The Company enters into standard indemnification agreements with its landlords and all superior mortgagees and their respective directors, officers, agents, and employees in the ordinary course of business. Pursuant to these agreements, the Company will indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the landlords, in connection with any loss, accident, injury, or damage by any third‑party with respect to the leased facilities. The term of these indemnification agreements is from the commencement of the lease agreements until termination of the lease agreements. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, historically, the Company has not incurred claims or costs to defend lawsuits or settle claims related to these indemnification agreements. The Company has not recorded any liability associated with its indemnification agreements as it is not aware of any pending or threatened actions that represent probable losses as of December 31, 2023.

Guarantees

As of December 31, 2023 and June 30, 2023, the Company had various bank guarantees totaling $1.2 million and $1.3 million, respectively, primarily related to bidding processes with customers.

Royalty Agreement

The Company enters into software license agreements with third parties that require royalty payments for each license used. In connection with such agreements, the Company recorded royalty costs of $0.4 million and $0.9 million during the three and six months ended December 31, 2023, respectively, and $0.6 million and $1.1 million during the three and six months ended December 31, 2022, respectively, which were recorded in cost of revenue or deferred cost of revenue. The Company had approximately $2.5 million and $2.4 million in accrued royalty payments as of December 31, 2023, and June 30, 2023, respectively, related to royalty agreements.

Restructuring Charges

On October 25, 2023, the Company informed affected employees of a cost savings initiative to reduce operating expenses resulting in the elimination of approximately 5.9 percent of the Company’s global workforce. The Company recorded a charge of $2.6 million during the three months ended December 31, 2023. These charges are cash-based and are primarily related to severance expenses and other one-time termination benefits. The Company paid approximately $1.9 million in cash for the restructuring charges during the

three months ended December 31, 2023. At December 31, 2023, the Company has a remaining accrual of $0.7 million, which is included in accrued compensation on the unaudited condensed consolidated balance sheets, and expects to pay the remaining amounts over the remainder of fiscal year 2024.

Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Estimated future amortization expense of purchased intangible assets
2024 (remaining six months)	$ 58
2025	44
2026	14
Total estimated future amortization expense	$ 116	$ 210

Debt - Summary of Interest Expense on Notes and the Revolving Credit Facility, and the Term Loan Facility (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Interest expense related to contractual interest coupon	$ 2,653	$ 2,362	$ 5,322	$ 4,394
Interest expense related to amortization of debt issuance costs	237	228	475	447
Total	$ 2,890	$ 2,590	$ 5,797	$ 4,841

Revenue - Additional Information (Details1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01	Dec. 31, 2023
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations recognized period	12 months
Minimum
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations percentage	28.00%
Maximum
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations percentage	31.00%

Debt

6 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Debt

Note 9. Debt

The Company's outstanding debt as of December 31, 2023 and June 30, 2023, is as follows (in thousands):


	December 31, 2023							June 30, 2023
	Principal Amount		Unamortized Debt Costs			Net Carrying Amount		Principal Amount		Unamortized Debt Costs			Net Carrying Amount
3.75% Convertible Senior Notes due 2026	$	100,000	$	(1,517	)	$	98,483	$	100,000	$	(1,811	)	$	98,189
Term Loan Facility		67,000		(725	)		66,275		70,000		(906	)		69,094
Revolving Credit Facility		10,000		—			10,000		10,000		—			10,000
Total debt	$	177,000	$	(2,242	)	$	174,758	$	180,000	$	(2,717	)	$	177,283
Reported as:
Short-term debt						$	6,738						$	5,721
Long-term debt							168,020							171,562
Total debt						$	174,758						$	177,283

3.75% Convertible Senior Notes due June 2026

In May 2021, the Company issued $100.0 million aggregate principal amount of its 3.75% Convertible Senior Notes due June 2026 (the “3.75% Convertible Notes due 2026”) under an indenture agreement between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. As of December 31, 2023, the if-converted value of its 3.75% Convertible Notes due 2026 did not exceed the outstanding principal amount.

Credit Facilities

The Company has a $40.0 million revolving credit facility (the “Revolving Credit Facility”) and a five-year $80.0 million term loan (the “Term Loan Facility”). In fiscal year 2024, interest on the borrowings under the Credit Facilities is payable in arrears on the applicable interest payment date, at an annual interest rate of reserve-adjusted, 90-day term Secured Overnight Financing Rate (subject to a 0.50% floor) plus a margin between 2.50% and 3.25% margin, determined by the Consolidated Senior Net Leverage Ratio (as defined in the credit agreement governing the Credit Facilities (the “Credit Agreement”)). The weighted average effective interest rate on the Term Loan Facility and Revolving Credit Facility was approximately 8.4% during both the three and six months ended December 31, 2023.

The Credit Agreement requires the Company to pay the lenders an unused commitment fee equal to the average unused portion of the Revolving Credit Facility. The Company pays a rate of 0.25% to 0.40% per annum of the average unused portion of the Revolving Credit Facility, determined by the Consolidated Senior Net Leverage Ratio (as defined in the Credit Agreement). If all or a portion of the loans under the Term Loan Facility are prepaid, then the Company will be required to pay a fee equal to 1% of the aggregate amount of the loans so prepaid, subject to certain exceptions.

The Credit Agreement contains restrictions and covenants applicable to the Company and its subsidiaries. Among other requirements, the Company may not permit the Fixed Charge Coverage Ratio (as defined in the Credit Agreement) to be less than a certain specified ratio for each fiscal quarter during the term of the Credit Agreement or the consolidated senior net leverage ratio to be greater than a certain specified ratio for each fiscal quarter during the term of the Credit Agreement. As of December 31, 2023, the Company was in compliance with its covenants under the Credit Agreement.

A summary of interest expense on the 3.75% Convertible Notes due 2026, the Revolving Credit Facility, and the Term Loan Facility is as follows (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Interest expense related to contractual interest coupon	$	2,653	$	2,362	$	5,322	$	4,394
Interest expense related to amortization of debt issuance costs		237		228		475		447
Total	$	2,890	$	2,590	$	5,797	$	4,841

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Revenue (Tables)

6 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Summary of Contract with Customer, Asset and Liability

Changes in the contract assets and liabilities are as follows (dollars in thousands):


					Change
	December 31, 2023		June 30, 2023		$			%
Contract Assets:
Unbilled accounts receivable – current (1)	$	13,187	$	9,847		3,340			34	%
Interest receivable – current (2)		332		379		(47	)		(12	%)
Long-term accounts receivable (3)		4,564		4,734		(170	)		(4	%)
Interest receivable – non-current (3)		605		673		(68	)		(10	%)
Contract Liabilities:
Customer advances		22,677		20,777		1,900			9	%
Deferred revenue – current		77,406		72,185		5,221			7	%
Deferred revenue – non-current		24,809		27,079		(2,270	)		(8	%)

(1)

Included in accounts receivable on the unaudited condensed consolidated balance sheets.

(2)

Included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets.

(3)

Included in other assets on the unaudited condensed consolidated balance sheets.

Schedule of Remaining Performance Obligations related to Warranty

The following table represents the Company's remaining performance obligations related to long-term warranty and non-cancellable post-warranty services as of December 31, 2023 (in thousands):


	Fiscal years of revenue recognition
	2024		2025		2026		Thereafter
Long-term warranty and non-cancellable post-warranty services	$	15,979	$	24,780	$	18,225	$	8,563

Supplemental Financial Information - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Accrued Liabilities and Other Liabilities [Abstract]
Value added tax liabilities	$ 8,540	$ 12,368
Commissions due to third parties	8,777	10,499
Refunds due to customers	4,041	3,364
Accrued consulting	1,246	2,599
Accrued royalties	2,518	2,398
Income tax payable	1,869	900
Other liabilities	9,262	6,143
Total other accrued liabilities	$ 36,253	$ 38,271

Segment Information - Additional Information (Details)	6 Months Ended
Segment Information - Additional Information (Details)	Dec. 31, 2023 Segment
Segment Reporting [Abstract]
Number of operating segments	1

Supplemental Financial Information - Summary of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Inventory, Net [Abstract]
Raw materials	$ 63,699	$ 62,945
Work-in-process	16,387	17,469
Finished goods	75,142	64,736
Inventories	$ 155,228	$ 145,150

Joint Venture - Schedule of Net Revenue Recognized From Intra Entity Profit Margin (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2023

Dec. 31, 2022

Schedule of Equity Method Investments [Line Items]

Net revenue recognized from intra-entity profit margin from sales

$ 294

$ 986

Joint venture

Schedule of Equity Method Investments [Line Items]

Sales recognized from released deferred intra-entity profit margin

$ 4,728

$ 4,067

6,313

6,415

Deferred intra-entity profit margin from sales

(2,858)

(3,042)

(6,019)

(5,429)

Net revenue recognized from intra-entity profit margin from sales

^[1]

$ 1,870

$ 1,025

$ 294

$ 986

[1]	Profit earned by the Company from the JV is eliminated through cost of goods sold until it is realized; such profits would generally be considered realized when the inventory has been sold through to third parties.

Stock Incentive Plan and Employee Stock Purchase Plan - Additional Information (Details) shares in Millions	Nov. 09, 2023 shares
2016 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares of stock authorized	5.0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
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+ Details

Supplemental Financial Information - Consolidated Statement Of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Supplemental Financial Information Disclosure [Abstract]
Interest expense	$ (2,922)	$ (2,644)	$ (5,844)	$ (4,906)
Foreign currency exchange loss	(1,278)	(33)	(2,234)	(284)
Other income (expense), net	(152)	(154)	45	(199)
Total other expense, net	$ (4,352)	$ (2,831)	$ (8,033)	$ (5,389)

- Definition

Amount of the cost of borrowed funds accounted for as interest expense.

+ References + Details

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities
Net loss	$ (12,590)	$ (7,323)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,797	2,327
Share-based compensation	4,706	6,042
Amortization of debt issuance costs	475	447
Provision (recoveries) for provision from credit losses	(218)	68
Provision for write-down of inventories	2,676	1,972
Loss on disposal of property and equipment	5	2
(Income) loss on equity method investment	(4)	1,067
Net revenue recognized from intra-entity profit margin from sales	(294)	(986)
Changes in assets and liabilities:
Accounts receivable	(357)	5,701
Inventories	(14,641)	(14,237)
Prepaid expenses and other assets	1,269	(2,488)
Deferred cost of revenue	293	817
Accounts payable	5,103	3,037
Operating lease liabilities, net of operating lease right-of-use assets	(120)	23
Accrued liabilities	(4,834)	(8,123)
Customer advances	1,551	(8,203)
Deferred revenues	499	1,889
Net cash used in operating activities	(13,684)	(17,968)
Cash flows from investing activities
Purchases of property and equipment	(2,341)	(2,773)
Purchase of intangible asset	0	(33)
Net cash used in investing activities	(2,341)	(2,806)
Cash flows from financing activities
Proceeds from the issuance of common stock to employees	1,360	1,139
Taxes paid related to net share settlement of equity awards	(117)	(116)
Debt issuance costs	0	(248)
Paydown under Term Loan Facility	(3,000)	(3,000)
Repayments of convertible notes	0	(2,865)
Borrowings under Revolving Credit Facility	0	5,000
Net cash used in financing activities	(1,757)	(90)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,072	(79)
Net decrease in cash, cash equivalents and restricted cash	(16,710)	(20,943)
Cash, cash equivalents and restricted cash at beginning of period	91,202	90,154
Cash, cash equivalents and restricted cash at end of period	74,492	69,211
Supplemental non-cash disclosure:
Transfers from inventory to property and equipment, net	2,911	0
Leasehold improvement from lease incentive	2,593	0
Transfers from property and equipment, net to intangible assets	0	59
Unpaid purchase of property and equipment	$ 212	$ 316

Supplemental Financial Information - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Other Assets [Abstract]
Capitalized contract costs	$ 10,736	$ 9,244
Long-term accounts receivable	4,564	4,734
Capitalized software costs to be sold	3,624	2,853
Other long-term assets	3,569	3,276
Total other assets	$ 22,493	$ 20,107

Derivative Financial Instruments

6 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 6. Derivative Financial Instruments

The Company utilizes foreign currency forward contracts with reputable financial institutions to manage its exposure of fluctuations in foreign currency exchange rates on certain intercompany balances and foreign currency denominated cash, customer receivables and liabilities. The Company does not use derivative financial instruments for speculative or trading purposes. These forward contracts are not designated as hedging instruments for accounting purposes. Principal hedged currencies primarily include the Japanese Yen, Swiss Franc, and Euro. The periods of these forward contracts range up to approximately three months and the notional amounts are intended to be consistent with changes in the underlying exposures.

The notional amount of the Company's outstanding forward currency exchange contracts consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Swiss Franc	$	45,238	$	26,867
Chinese Yuan		6,191		249
Euro		20,545		17,885
British Pound		736		516
Indian Rupee		6,356		3,539
Korean Won		2,338		—
Japanese Yen		18,799		12,492
Total outstanding forward currency exchange contracts	$	100,203	$	61,548

Gains and losses on the Company's foreign currency forward contracts are recorded in Other expense, net, on the Company's unaudited condensed consolidated statements of operations. The following table provides information about the gain or loss associated with the Company’s derivative financial instruments not designated as hedging instruments (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Foreign currency exchange gain on forward contracts	$	959	$	363	$	141	$	761

Supplemental Financial Information - Schedule of Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Prepaid Expense and Other Assets [Abstract]
Value added tax receivables	$ 7,321	$ 11,718
Prepaid commissions	5,906	5,866
Capitalized contract costs	1,800	1,782
Other prepaid assets	6,495	5,763
Other current assets	3,498	2,483
Total prepaid and other current assets	$ 25,020	$ 27,612

Joint Venture - Summary of Financial Information of Joint Ventures (Operations Data) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Schedule Of Equity Method Investments [Line Items]
Revenue	$ 107,238		$ 114,760		$ 211,130		$ 211,253
Gross profit	35,902		42,967		75,395		77,564
Net income (loss)	$ (9,621)	$ (2,969)	$ (1,874)	$ (5,449)	$ (12,590)		$ (7,323)
CNNC Accuray (Tianjin) Medical Technology Co. Ltd.
Schedule Of Equity Method Investments [Line Items]
Revenue		22,457		23,983		$ 54,312		$ 50,723
Gross profit		2,800		3,719		8,613		8,315
Net income (loss)		(872)		(1,416)		7		(2,168)
Net income (loss) attributable to the Company		$ (427)		$ (699)		$ 4		$ (1,067)

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

- Definition

Amount of Net Income (Loss) attributable to noncontrolling interest.

+ References + Details

- Definition

+ References

+ Details

The Company and its Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany 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 (“U.S. 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. The results for the three and six months ended December 31, 2023, are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2024, 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, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on September 7, 2023.
Reclassifications	Reclassifications Certain amounts on the unaudited condensed consolidated statements of cash flows and statements of stockholders' equity in prior periods have been reclassified to conform to current year presentation.
Risks and Uncertainties	Risks and Uncertainties The Company is subject to risks and uncertainties caused, directly or indirectly, by events with significant geopolitical and macroeconomic impacts, including, but not limited to, rising inflation; actions taken to counter inflation, including rising interest rates; foreign currency exchange rate fluctuations; uncertainty and volatility in the banking and financial services sector; tightening credit markets, the effects of the COVID-19 pandemic; geopolitical concerns, such as the Russia-Ukraine and Israel-Hamas conflicts and increasing tension between China and the U.S., including with respect to Taiwan; and other factors that may emerge. The Company is also continuing to navigate supply chain and inflation challenges, and adverse foreign currency exchange rate fluctuations, all of which continues to be a significant headwind that affects the Company’s results of operations. The Company expects that the business of its customers and its own business will continue to be adversely impacted, directly or indirectly, by these macroeconomic and geopolitical issues. Delays in deliveries and installations as a result of the COVID-19 pandemic and its effects on the global economic environment may continue, to some degree, through the remainder of calendar year 2024, which could have a negative impact on our revenue during such period. In addition, ongoing supply chain challenges and logistics costs, including difficulties in obtaining a sufficient supply of component materials and increased component costs, have adversely affected the Company's gross margins and net income or loss, and the Company’s current expectations are that gross margins and net income or loss will continue to be adversely affected by increased material costs and freight and logistic expenses through at least the remainder of fiscal year 2024, if not longer. Furthermore, certain parts required for the manufacturing and servicing of the Company's products, such as electronic components, are scarce and becoming increasingly difficult to source, even at increased prices. If such parts become unavailable to the Company, it would not be able to manufacture or service our products, which would adversely impact revenue, gross margins, and net income (loss). The extent of the ongoing impact of these macroeconomic events on our business, our markets and on global economic activity, however, is uncertain and the related financial impact cannot be reasonably estimated with any certainty at this time. The Company’s past results may not be indicative of its future performance, and historical trends, including conversion of backlog to revenue, income (loss) from operations, net income (loss), net income (loss) per share and cash flows may differ materially. The Company continues to critically review its liquidity and anticipated capital requirements in light of the significant uncertainty created by geopolitical and macroeconomic conditions. Based on the Company’s cash and cash equivalents balance, available debt facilities, current business plan and revenue prospects, the Company believes that it will have sufficient cash resources and anticipated cash flows to fund its operations for at least the next 12 months. The Company, however, is unable to predict with certainty the impact of geopolitical and macroeconomic conditions, including its effect on global supply chain and logistics, will have on its ability to maintain compliance with the debt covenants contained in the credit agreement related to its Credit Facilities, including financial covenants regarding the consolidated fixed charge coverage ratio and consolidated senior net leverage ratio. The Company was in compliance with such covenants at December 31, 2023. Failing to comply with these covenants could adversely affect the Company’s ability to finance its future operations or capital needs, withstand a future downturn in its business or the economy in general, engage in business activities, including future opportunities that may be in its interest, and plan for or react to market conditions or otherwise execute its business strategies. The Company’s ability to comply with the covenants and other terms governing the Credit Facilities will depend in part on its future operating performance. In addition, because substantially all of the Company’s assets are pledged as a security under the Credit Facilities, if the Company is not able to cure any default or repay outstanding borrowings, such assets are subject to the risk of foreclosure by the Company’s lenders. Failure to meet the covenant requirements in the future could cause the Company to be in default and the maturity of the related debt could be accelerated and become immediately payable. This may require the Company to obtain waivers or amendments to the credit agreement in order to maintain compliance and there can be no certainty that any such waiver or amendment will be available, or what the cost of such waiver or amendment, if obtained, would be. If the Company is unable to obtain necessary waivers or amendments and the debt under such credit facility is accelerated, the Company would be required to obtain replacement financing at prevailing market rates, which may not be favorable to the Company. There is no guarantee that the Company would be able to satisfy its obligations if any of its indebtedness is accelerated.
Use of Estimates	Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company. Actual results could differ materially from those estimates.
Significant Accounting Policies	Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies during the six months ended December 31, 2023, compared to the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended June 30, 2023.
Accounting Pronouncements Not Yet Effective
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Accounting Pronouncements Not Yet Effective	Accounting Pronouncements Not Yet Effective In December 2023, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update (“ASU”) 2023-09 to improve the transparency and usefulness of income tax disclosures. The accounting standard expands disclosures to the entity’s income tax rate reconciliation table and requires cash taxes paid disaggregated by jurisdiction. These changes will be applied on a prospective basis. The update will be effective for annual periods beginning after December 15, 2024. The Company plans to adopt ASU 2023-09 on July 1, 2025. The Company is currently assessing the impact of this update on its consolidated financial statement disclosures. In November 2023, the FASB issued ASU 2023-07 to improve reportable segment disclosures. The ASU is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures to be disclosed in interim periods. The update is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company plans to adopt ASU 2023-07 on July 1, 2024. The ASU requires retrospective application to all prior periods presented in the financial statements. The Company is currently assessing the timing and impact of adopting the updated provisions.

Supplemental Financial Information - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss)
Cumulative foreign currency translation adjustment	$ (1,697)	$ (2,332)
Defined benefit pension obligation	2,754	2,754
Accumulated other comprehensive income	$ 1,057	$ 422

- Definition

Amount, after tax, of accumulated increase (decrease) in equity from transaction and other event and circumstance from nonowner source.

+ References + Details

Leases

6 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Note 4. Leases

The Company has operating leases for corporate offices and warehouse facilities worldwide. Additionally, the Company leases cars, copy machines and laptops that are considered operating leases. Some of the Company’s leases are non-cancellable operating lease agreements with various expiration dates through June 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore, are not factored into the determination of lease payments.

The following table provides information related to the Company’s operating leases:


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Operating lease costs (1)	$	2,456	$	2,314	$	5,010	$	4,651
Short-term operating lease costs	$	72	$	130	$	133	$	231
Cash paid for amounts included in the measurement of lease liabilities	$	2,536	$	2,211	$	5,025	$	4,443

(1)

Excludes expenses related to short-term lease operating costs.

Operating lease right-of-use assets and operating lease liabilities consisted of the following (in thousands):


	December 31, 2023			June 30, 2023
Operating lease right-of-use assets
Balance at the beginning of period	$	25,853		$	16,798
Lease assets added		1,046			17,157
Amortization for the period		(3,805	)		(8,102	)
Balance at the end of period	$	23,094		$	25,853

Operating lease liabilities
Balance at the beginning of period	$	27,753		$	19,020
Lease liabilities added		3,361			16,834
Repayment and interest accretion		(3,649	)		(8,101	)
Balance at the end of period	$	27,465		$	27,753

Current portion of operating lease liabilities	$	5,707		$	4,151
Non-current portion of operating lease liabilities		21,758			23,602

Maturities of operating lease liabilities as of December 31, 2023, are presented in the table below (dollars in thousands):


	Amount
2024 (remaining six months)	$	3,955
2025		4,094
2026		3,736
2027		3,638
2028		3,349
Thereafter		23,306
Total operating lease payments		42,078
Less: imputed interest		(14,613	)
Present value of operating lease liabilities	$	27,465
Weighted average remaining lease term (in years)		9.0
Weighted average discount rate		9.8	%

Fair Value Measurements

6 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

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.

Assets and Liabilities That Are Measured at Fair Value

As of December 31, 2023, the Company had open currency forward contracts to purchase or sell foreign currencies with a stated or notional value of $100.2 million. The fair value of the underlying currency, based upon the December 31, 2023 exchange rate, was $100.4 million, which it considers to be a Level 2 fair value measurement.

As of June 30, 2023, the Company had open currency forward contracts to purchase or sell foreign currencies with a stated or notional value of $61.5 million. The fair value of the underlying currency, based upon the June 30, 2023 exchange rate, was $61.2 million, which it considers to be a Level 2 fair value measurement.

The Company’s convertible debt is measured on a recurring basis using Level 2 based upon observable inputs. The Company's Revolving Credit Facility and Term Loan Facility (as defined in Note 9) collectively (the “Credit Facilities”) reflect the bank quoted market rates, which the Company considers to be a Level 2 fair value measurement. The Company believes that the carrying value of the Credit Facilities approximates its estimated fair value based on the effective interest rate, compared to the current market rate available to the Company at quarter-end.

The table below summarizes the carrying value and estimated fair value of the 3.75% Convertible Senior Notes due 2026, Term Loan Facility, and the Revolving Credit Facility (in thousands):


	December 31, 2023				June 30, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
3.75% Convertible Notes due 2026	$	98,483	$	91,349	$	98,189	$	98,265
Term Loan Facility		66,275		66,275		69,094		69,094
Revolving Credit Facility		10,000		10,000		10,000		10,000
Total	$	174,758	$	167,624	$	177,283	$	177,359

- 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

Supplemental Financial Information - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Property and equipment, net
Software capitalized cost	$ 8.1		$ 8.1
Depreciation expense	$ 1.5	$ 1.1	$ 2.7	$ 2.2

Segment Information (Tables)

6 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Summary of Revenue by Geographic Region

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


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Americas	$	23,742	$	27,919	$	44,299	$	55,204
EIMEA		43,800		39,664		83,333		76,410
China		23,375		22,278		49,590		35,278
Japan		10,648		15,700		23,240		27,188
Asia Pacific, excluding China		5,673		9,199		10,668		17,173
Total	$	107,238	$	114,760	$	211,130	$	211,253

Schedule of Geographic Areas in Which the Company has Long-Lived Assets, Property, Plant and Equipment Net, and Operating Lease Right of Use Assets

Information regarding geographic areas in which the Company has long-lived assets, which consists of property, plant and equipment, net, and operating lease right-of-use assets are as follows (in thousands):


	December 31,		June 30,
	2023		2023
Americas	$	44,360	$	41,569
EIMEA		2,369		3,074
China		1,139		501
Japan		803		1,096
Asia Pacific, excluding China		342		539
Total	$	49,013	$	46,779

Stock Incentive Plan and Employee Stock Purchase Plan

6 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock Incentive Plan and Employee Stock Purchase Plan

Note 10. Stock Incentive Plan and Employee Stock Purchase Plan

The following table presents details of share-based compensation expenses, by functional line item, noted within the Company's operating expenses (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Cost of revenue	$	390	$	443	$	626	$	809
Research and development		280		403		681		771
Selling and marketing		437		458		845		944
General and administrative		1,207		1,822		2,554		3,518
Total share-based compensation	$	2,314	$	3,126	$	4,706	$	6,042

On November 9, 2023, the Company’s stockholders approved amending and restating the Company’s 2016 Equity Incentive Plan to increase the number of shares of the Company’s common stock available for issuance by 5.0 million shares.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Net Loss Per Common Share - Additional Information (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023	May 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common stock not included in the calculation of potentially diluted shares	17.1	17.1	17.1	17.1
3.75% Convertible Notes Due 2026
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Interest rate (as a percent)	3.75%	3.75%	3.75%	3.75%	3.75%	3.75%
Convertible debt maturity period	2026	2026	2026	2026

Debt - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022	May 31, 2021
Debt Instrument [Line Items]
Principal amount of the Notes	$ 177,000	$ 177,000	$ 180,000
Unamortized debt costs	$ 2,242	2,242	2,717
Revolving Credit Facility
Debt Instrument [Line Items]
Weighted average effective interest rate	8.40%
Principal amount of the Notes	$ 10,000	10,000	10,000
Unamortized debt costs	$ 0	$ 0	$ 0
Term Loan
Debt Instrument [Line Items]
Weighted average effective interest rate		8.40%
3.75% Convertible Notes Due 2026
Debt Instrument [Line Items]
Aggregate principal amount of debt issued					$ 100,000
Interest rate (as a percent)	3.75%	3.75%	3.75%	3.75%	3.75%
Principal amount of the Notes	$ 100,000	$ 100,000	$ 100,000
Unamortized debt costs	1,517	1,517	$ 1,811
Senior Secured Credit Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility borrowing capacity	40,000	$ 40,000
Senior Secured Credit Agreement \| Term Loan
Debt Instrument [Line Items]
Term of loan		5 years
Credit facility borrowing capacity	$ 80,000	$ 80,000
Senior Secured Credit Agreement \| Credit Agreement \| If all or Portion of Loans Under New Term Loan Facility are Prepaid
Debt Instrument [Line Items]
Unused commitment fee percentage per annum of average unused portion of the New Revolving Credit Facility		1.00%
Senior Secured Credit Agreement \| 90-day SOFR
Debt Instrument [Line Items]
Interest rate determination basis		90-day term Secured Overnight Financing Rate
Senior Secured Credit Agreement \| 90-day SOFR \| Floor Rate
Debt Instrument [Line Items]
Variable rate (as a percent)		0.50%
Senior Secured Credit Agreement \| Minimum \| Credit Agreement \| Consolidated Senior Net Leverage Ratio is Greater Than or Equal to 3.00:1.00
Debt Instrument [Line Items]
Unused commitment fee percentage per annum of average unused portion of the New Revolving Credit Facility		0.25%
Senior Secured Credit Agreement \| Minimum \| 90-day SOFR
Debt Instrument [Line Items]
Variable rate (as a percent)		2.50%
Senior Secured Credit Agreement \| Maximum \| Credit Agreement \| Consolidated Senior Net Leverage Ratio is Greater Than or Equal to 3.00:1.00
Debt Instrument [Line Items]
Unused commitment fee percentage per annum of average unused portion of the New Revolving Credit Facility		0.40%
Senior Secured Credit Agreement \| Maximum \| 90-day SOFR
Debt Instrument [Line Items]
Variable rate (as a percent)		3.25%

Income Tax

6 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax

Note 14. Income Tax

On a quarterly basis, the Company provides for income taxes based upon an estimated annual effective income tax rate. The Company recognized income tax expense, which were primarily related to foreign taxes, of $0.9 million and $2.8 million during the three and six months ended December 31, 2023, respectively, and $1.0 million and $1.4 million during the three and six months ended December 31, 2022, respectively.

Starting in fiscal year 2019, certain income earned by controlling foreign corporations (“CFCs”) must be included in the gross income of the CFC’s U.S. shareholder. The income required to be included in gross income is referred to as global intangible low tax income (“GILTI”) and is defined under IRC Section 951A as the excess of the shareholder’s net CFC tested income over the net

deemed tangible income return. The GILTI inclusion amount is expected to be fully absorbed by net operating losses carryforward and is not expected to cause the Company to be in a U.S. taxable income position for fiscal year 2024.

There is no material impact on the Company’s unaudited condensed consolidated financial statements for fiscal year 2024 relating to the change in U.S. tax law that requires capitalization and amortization of research and experimental expenditures incurred after July 1, 2022 which has been fully offset by pre-2018 net operating loss carryforwards. The Company will continue to evaluate the impact of this tax law change on future periods.

As of December 31, 2023, the Company’s gross unrecognized tax benefits were $21.6 million, of which $21.2 million would not affect income tax expense before consideration of any valuation allowance. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. Interest and penalties accrued on unrecognized tax benefits and are recorded as a component of income tax expense.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
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-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

The Company and its Significant Accounting Policies

6 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and its Significant Accounting Policies

Note 1. The Company and its Significant Accounting Policies

The Company

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

Basis of Presentation

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany 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 (“U.S. 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. The results for the three and six months ended December 31, 2023, are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2024, 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, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on September 7, 2023.

Reclassifications

Certain amounts on the unaudited condensed consolidated statements of cash flows and statements of stockholders' equity in prior periods have been reclassified to conform to current year presentation.

Risks and Uncertainties

The Company is subject to risks and uncertainties caused, directly or indirectly, by events with significant geopolitical and macroeconomic impacts, including, but not limited to, rising inflation; actions taken to counter inflation, including rising interest rates; foreign currency exchange rate fluctuations; uncertainty and volatility in the banking and financial services sector; tightening credit markets, the effects of the COVID-19 pandemic; geopolitical concerns, such as the Russia-Ukraine and Israel-Hamas conflicts and increasing tension between China and the U.S., including with respect to Taiwan; and other factors that may emerge. The Company is also continuing to navigate supply chain and inflation challenges, and adverse foreign currency exchange rate fluctuations, all of which continues to be a significant headwind that affects the Company’s results of operations.

The Company expects that the business of its customers and its own business will continue to be adversely impacted, directly or indirectly, by these macroeconomic and geopolitical issues. Delays in deliveries and installations as a result of the COVID-19 pandemic and its effects on the global economic environment may continue, to some degree, through the remainder of calendar year 2024, which could have a negative impact on our revenue during such period. In addition, ongoing supply chain challenges and logistics costs, including difficulties in obtaining a sufficient supply of component materials and increased component costs, have adversely affected the Company's gross margins and net income or loss, and the Company’s current expectations are that gross margins and net income or loss will continue to be adversely affected by increased material costs and freight and logistic expenses through at least the remainder of fiscal year 2024, if not longer. Furthermore, certain parts required for the manufacturing and servicing of the Company's products, such as electronic components, are scarce and becoming increasingly difficult to source, even at increased prices. If such parts become unavailable to the Company, it would not be able to manufacture or service our products, which would adversely impact revenue, gross margins, and net income (loss). The extent of the ongoing impact of these macroeconomic events on our business, our markets and on global economic activity, however, is uncertain and the related financial impact cannot be reasonably estimated with any certainty at this time. The Company’s past results may not be indicative of its future performance, and historical trends, including conversion of backlog to revenue, income (loss) from operations, net income (loss), net income (loss) per share and cash flows may differ materially.

The Company continues to critically review its liquidity and anticipated capital requirements in light of the significant uncertainty created by geopolitical and macroeconomic conditions. Based on the Company’s cash and cash equivalents balance, available debt facilities, current business plan and revenue prospects, the Company believes that it will have sufficient cash resources and anticipated cash flows to fund its operations for at least the next 12 months. The Company, however, is unable to predict with certainty the impact of geopolitical and macroeconomic conditions, including its effect on global supply chain and logistics, will have on its ability to maintain compliance with the debt covenants contained in the credit agreement related to its Credit Facilities, including financial covenants regarding the consolidated fixed charge coverage ratio and consolidated senior net leverage ratio. The Company was in compliance with such covenants at December 31, 2023. Failing to comply with these covenants could adversely affect the Company’s ability to finance its future operations or capital needs, withstand a future downturn in its business or the economy in general, engage in business activities, including future opportunities that may be in its interest, and plan for or react to market conditions or otherwise execute its business strategies. The Company’s ability to comply with the covenants and other terms governing the Credit Facilities will depend in part on its future operating performance. In addition, because substantially all of the Company’s assets are pledged as a security under the Credit Facilities, if the Company is not able to cure any default or repay outstanding borrowings, such assets are subject to the risk of foreclosure by the Company’s lenders. Failure to meet the covenant requirements in the future could cause the Company to be in default and the maturity of the related debt could be accelerated and become immediately payable. This may require the Company to obtain waivers or amendments to the credit agreement in order to maintain compliance and there can be no certainty that any such waiver or amendment will be available, or what the cost of such waiver or amendment, if obtained, would be. If the Company is unable to obtain necessary waivers or amendments and the debt under such credit facility is accelerated, the Company would be required to obtain replacement financing at prevailing market rates, which may not be favorable to the Company. There is no guarantee that the Company would be able to satisfy its obligations if any of its indebtedness is accelerated.

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company. Actual results could differ materially from those estimates.

Significant Accounting Policies

There have been no material changes in the Company’s significant accounting policies during the six months ended December 31, 2023, compared to the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

Accounting Pronouncements Not Yet Effective

In December 2023, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update (“ASU”) 2023-09 to improve the transparency and usefulness of income tax disclosures. The accounting standard expands disclosures to the entity’s income tax rate reconciliation table and requires cash taxes paid disaggregated by jurisdiction. These changes will be applied on a prospective basis. The update will be effective for annual periods beginning after December 15, 2024. The Company plans to adopt ASU 2023-09 on July 1, 2025. The Company is currently assessing the impact of this update on its consolidated financial statement disclosures.

In November 2023, the FASB issued ASU 2023-07 to improve reportable segment disclosures. The ASU is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures to be disclosed in interim periods. The update is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company plans to adopt ASU 2023-07 on July 1, 2024. The ASU requires retrospective application to all prior periods presented in the financial statements. The Company is currently assessing the timing and impact of adopting the updated provisions.

Joint Venture

6 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Joint Venture

Note 13. Joint Venture

In January 2019, the Company’s wholly-owned subsidiary, Accuray Asia Limited (“Accuray Asia”), entered into an agreement with CNNC High Energy Equipment (Tianjin) Co., Ltd. (the “CIRC Subsidiary”), a wholly-owned subsidiary of China Isotope & Radiation Corporation, to form a joint venture, CNNC Accuray (Tianjin) Medical Technology Co. Ltd. (the “JV”), to manufacture and sell radiation oncology systems in China. As of December 31, 2023, the Company owned a 49% interest in the JV, which is reported as an investment in joint venture on the Company’s unaudited condensed consolidated balance sheets.

The Company applies the equity method of accounting to its ownership interest in the JV as the Company has the ability to exercise significant influence over the JV but lacks controlling financial interest and is not the primary beneficiary. The Company recognizes the 49% proportionate share of the JV income or loss on a one-quarter lag due to the timing of the availability of the JV’s financial records. The Company recognizes revenue on sales to the JV in the current period, eliminating a portion of profit to the extent goods sold have not been sold through by the JV to an end customer at the end of such reporting period.

The following table shows the reconciliation between the carrying value of the Company's investment in the JV and its proportional share of the underlying equity in net assets of the JV (in thousands):


	December 31, 2023			June 30, 2023
Carrying value of investment in joint venture	$	14,536		$	15,128
Deferred intra-entity profit margin		5,443			5,737
Equity method goodwill		(4,720	)		(4,720	)
Proportional share of equity investment in joint venture	$	15,259		$	16,145

As of December 31, 2023, the Company’s carrying value of the investment in the JV was decreased for the Company's proportional share of the JV's currency translation adjustment by $0.9 million. As of June 30, 2023, the Company’s carrying value of the investment in the JV for the Company's proportional share of the JV's currency translation adjustment was not material.

Summarized financial information of the JV is as follows (in thousands):


	Three Months Ended September 30,						Six Months Ended September 30,
Statement of Operations Data:	2023			2022			2023		2022
Revenue	$	22,457		$	23,983		$	54,312	$	50,723
Gross profit		2,800			3,719			8,613		8,315
Net income (loss)		(872	)		(1,416	)		7		(2,168	)
Net income (loss) attributable to the Company		(427	)		(699	)		4		(1,067	)


Summarized Balance Sheet Data:	As of September 30, 2023		As of September 30, 2022
Assets
Current assets	$	94,504	$	74,525
Non-current assets		13,576		17,658
Total assets	$	108,080	$	92,183
Liabilities and Stockholders' Equity
Current liabilities	$	76,338	$	66,618
Non-current liabilities		174		669
Stockholders' equity		31,568		24,896
Total liabilities and stockholders' equity	$	108,080	$	92,183

The following table shows the activity of the Company’s net revenue recognized from intra-entity profit margin from sales (in thousands):


	Three Months Ended December 31,						Six Months Ended December 31,
	2023			2022			2023			2022
Sales recognized from released deferred intra-entity profit margin	$	4,728		$	4,067		$	6,313		$	6,415
Deferred intra-entity profit margin from sales		(2,858	)		(3,042	)		(6,019	)		(5,429	)
Net revenue recognized from intra-entity profit margin from sales (1)	$	1,870		$	1,025		$	294		$	986

(1)

Profit earned by the Company from the JV is eliminated through cost of goods sold until it is realized; such profits would generally be considered realized when the inventory has been sold through to third parties.

Debt (Tables)

6 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Schedule of Carrying Values of all Debt

The Company's outstanding debt as of December 31, 2023 and June 30, 2023, is as follows (in thousands):


	December 31, 2023							June 30, 2023
	Principal Amount		Unamortized Debt Costs			Net Carrying Amount		Principal Amount		Unamortized Debt Costs			Net Carrying Amount
3.75% Convertible Senior Notes due 2026	$	100,000	$	(1,517	)	$	98,483	$	100,000	$	(1,811	)	$	98,189
Term Loan Facility		67,000		(725	)		66,275		70,000		(906	)		69,094
Revolving Credit Facility		10,000		—			10,000		10,000		—			10,000
Total debt	$	177,000	$	(2,242	)	$	174,758	$	180,000	$	(2,717	)	$	177,283
Reported as:
Short-term debt						$	6,738						$	5,721
Long-term debt							168,020							171,562
Total debt						$	174,758						$	177,283

Summary of Interest Expense on Notes and the Revolving Credit Facility, and the Term Loan Facility

A summary of interest expense on the 3.75% Convertible Notes due 2026, the Revolving Credit Facility, and the Term Loan Facility is as follows (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Interest expense related to contractual interest coupon	$	2,653	$	2,362	$	5,322	$	4,394
Interest expense related to amortization of debt issuance costs		237		228		475		447
Total	$	2,890	$	2,590	$	5,797	$	4,841

Leases (Tables)

6 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of Operating Leases

The following table provides information related to the Company’s operating leases:


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Operating lease costs (1)	$	2,456	$	2,314	$	5,010	$	4,651
Short-term operating lease costs	$	72	$	130	$	133	$	231
Cash paid for amounts included in the measurement of lease liabilities	$	2,536	$	2,211	$	5,025	$	4,443

(1)

Excludes expenses related to short-term lease operating costs.

Schedule of Operating Lease Right-of-use Assets and Operating Lease Liabilities

Operating lease right-of-use assets and operating lease liabilities consisted of the following (in thousands):


	December 31, 2023			June 30, 2023
Operating lease right-of-use assets
Balance at the beginning of period	$	25,853		$	16,798
Lease assets added		1,046			17,157
Amortization for the period		(3,805	)		(8,102	)
Balance at the end of period	$	23,094		$	25,853

Operating lease liabilities
Balance at the beginning of period	$	27,753		$	19,020
Lease liabilities added		3,361			16,834
Repayment and interest accretion		(3,649	)		(8,101	)
Balance at the end of period	$	27,465		$	27,753

Current portion of operating lease liabilities	$	5,707		$	4,151
Non-current portion of operating lease liabilities		21,758			23,602

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of December 31, 2023, are presented in the table below (dollars in thousands):


	Amount
2024 (remaining six months)	$	3,955
2025		4,094
2026		3,736
2027		3,638
2028		3,349
Thereafter		23,306
Total operating lease payments		42,078
Less: imputed interest		(14,613	)
Present value of operating lease liabilities	$	27,465
Weighted average remaining lease term (in years)		9.0
Weighted average discount rate		9.8	%

Supplemental Financial Information (Tables)

6 Months Ended

Dec. 31, 2023

Supplemental Financial Information Disclosure [Abstract]

Schedule of Financing Receivables

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


	December 31, 2023			June 30, 2023
Financing receivables	$	4,717		$	5,854
Allowance for credit losses		(798	)		(798	)
Total, net	$	3,919		$	5,056
Reported as:
Current	$	1,604		$	2,016
Non-current		2,315			3,040
Total, net	$	3,919		$	5,056

Schedule of Inventories

Inventories consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Raw materials	$	63,699	$	62,945
Work-in-process		16,387		17,469
Finished goods		75,142		64,736
Inventories	$	155,228	$	145,150

Schedule of Prepaid and Other Current Assets

Prepaid and other current assets consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Value added tax receivables	$	7,321	$	11,718
Prepaid commissions		5,906		5,866
Capitalized contract costs		1,800		1,782
Other prepaid assets		6,495		5,763
Other current assets		3,498		2,483
Total prepaid and other current assets	$	25,020	$	27,612

Schedule of Property and Equipment, Net

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


	December 31, 2023			June 30, 2023
Furniture and fixtures	$	1,848		$	1,581
Computer and office equipment		7,781			7,798
Software		13,238			5,191
Leasehold improvements		35,667			26,641
Machinery and equipment		44,649			44,779
Construction in progress		3,426			13,499
		106,609			99,489
Less: Accumulated depreciation		(80,690	)		(78,563	)
Property and equipment, net	$	25,919		$	20,926

Schedule of Other Assets

Other assets consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Capitalized contract costs	$	10,736	$	9,244
Long-term accounts receivable		4,564		4,734
Capitalized software costs to be sold		3,624		2,853


Other long-term assets		3,569		3,276
Total other assets	$	22,493	$	20,107

Schedule of Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Value added tax liabilities	$	8,540	$	12,368
Commissions due to third parties		8,777		10,499
Refunds due to customers		4,041		3,364
Accrued consulting		1,246		2,599
Accrued royalties		2,518		2,398
Income tax payable		1,869		900
Other liabilities		9,262		6,143
Total other accrued liabilities	$	36,253	$	38,271

Schedule of Accumulated Other Comprehensive Income (loss) in the Stockholders' Equity Section

The components of accumulated other comprehensive income in the stockholders' equity section of the Company’s unaudited condensed consolidated balance sheets are as follows (in thousands):


	December 31, 2023			June 30, 2023
Cumulative foreign currency translation adjustment	$	(1,697	)	$	(2,332	)
Defined benefit pension obligation		2,754			2,754
Accumulated other comprehensive income	$	1,057		$	422

Schedule of Statements of Operations

Other expense, net, consisted of the following (in thousands):


	Three Months Ended December 31,						Six Months Ended December 31,
	2023			2022			2023			2022
Interest expense	$	(2,922	)	$	(2,644	)	$	(5,844	)	$	(4,906	)
Foreign currency exchange loss		(1,278	)		(33	)		(2,234	)		(284	)
Other, net		(152	)		(154	)		45			(199	)
Total other expense, net	$	(4,352	)	$	(2,831	)	$	(8,033	)	$	(5,389	)

Goodwill and Intangible Assets - Additional Information (Details)	3 Months Ended
	Dec. 31, 2023 USD ($)
Finite Lived Intangible Assets [Line Items]
Impairment of goodwill	$ 0

Leases - Schedule of Operating Lease Right-of-use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Leases [Abstract]
Balance at the beginning of period-Operating lease right-of-use assets	$ 25,853	$ 16,798
Lease assets added	1,046	17,157
Amortization for the period	(3,805)	(8,102)
Balance at the end of period-Operating lease right-of-use assets	23,094	25,853
Balance at the beginning of period- Operating lease liabilities	27,753	19,020
Lease liabilities added	3,361	16,834
Repayment and interest accretion	(3,649)	(8,101)
Balance at the end of period-Operating lease liabilities	27,465	27,753
Current portion of operating lease liabilities	5,707	4,151
Non-current portion of operating lease liabilities	$ 21,758	$ 23,602

Revenue

6 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Note 2. Revenue

Contract Balances

The timing of revenue recognition, billings, and cash collections results in trade receivables, unbilled receivables, and deferred revenues on the unaudited condensed consolidated balance sheets. The Company may offer longer or extended payment terms of more than one year for qualified customers in some circumstances. At times, revenue recognition occurs before the billing, resulting in an unbilled receivable, which represents a contract asset. The contract asset is a component of accounts receivable and other assets for the current and non-current portions, respectively. When the Company receives advances or deposits from customers before revenue is recognized, this results in a contract liability. It can take two or more years from the time of order to revenue recognition due to the Company’s long sales cycle.

Changes in the contract assets and liabilities are as follows (dollars in thousands):


					Change
	December 31, 2023		June 30, 2023		$			%
Contract Assets:
Unbilled accounts receivable – current (1)	$	13,187	$	9,847		3,340			34	%
Interest receivable – current (2)		332		379		(47	)		(12	%)
Long-term accounts receivable (3)		4,564		4,734		(170	)		(4	%)
Interest receivable – non-current (3)		605		673		(68	)		(10	%)
Contract Liabilities:
Customer advances		22,677		20,777		1,900			9	%
Deferred revenue – current		77,406		72,185		5,221			7	%
Deferred revenue – non-current		24,809		27,079		(2,270	)		(8	%)

(1)

Included in accounts receivable on the unaudited condensed consolidated balance sheets.

(2)

Included in prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets.

(3)

Included in other assets on the unaudited condensed consolidated balance sheets.

During the six months ended December 31, 2023, contract assets changed primarily due to changes in the timing of billings that occurred after revenues were recognized and changes in transactions with payment terms exceeding 12 months. During the six months ended December 31, 2023, contract liabilities changed due to changes in the timing of revenue recognition as a result of changes in shipping timing, modifications to the transaction price, reduced customer deposits for system sales and for which the warranty was deferred.

During the three and six months ended December 31, 2023, the Company recognized revenue of $21.2 million and $51.2 million, which was included in the deferred revenue balances at June 30, 2023. During the three and six months ended December 31, 2022, the Company recognized revenue of $20.6 million and $55.5 million, which was included in the deferred revenue balances at June 30, 2022.

Remaining Performance Obligations

Remaining performance obligations represent deferred revenue from open contracts for which performance has already started and the transaction price from executed contracts for which performance has not yet started. Service contracts in general are considered month-to-month contracts.

As of December 31, 2023, total remaining performance obligations amounted to $987.9 million. Of this total amount, $67.5 million related to long-term warranty and non-cancellable post-warranty services, which is the estimated revenue expected to be recognized over the remaining service period and warranty period for systems that have been delivered (the time bands reflect management’s best estimate of when the Company will transfer control to the customer and may change based on timing of shipment, readiness of customers’ facilities for installation, installation requirements, and availability of products). The Company has elected the practical expedient to not disclose the unsatisfied performance obligations of contracts with an original expected duration of one year or less.

The following table represents the Company's remaining performance obligations related to long-term warranty and non-cancellable post-warranty services as of December 31, 2023 (in thousands):


	Fiscal years of revenue recognition
	2024		2025		2026		Thereafter
Long-term warranty and non-cancellable post-warranty services	$	15,979	$	24,780	$	18,225	$	8,563

For the remaining $920.4 million of performance obligations (i.e., open systems sales, upgrades, training and other miscellaneous items), the Company estimates 28% to 31% will be recognized in the next 12 months, and the remaining portion will be recognized thereafter. The Company’s historical experience indicates that some of its customers will cancel or renegotiate contracts as economic conditions change or when product offerings change during the long sales cycle. The Company anticipates a portion of its open contracts may never result in revenue recognition primarily due to the long sales cycle and factors outside of its control, including changes to its customers' needs or financial condition, changes in government or health insurance reimbursement policies, or changes to regulatory requirements. Based on historical experience and management's best estimate, approximately 23% of the Company’s $870.4 million open system sales contracts as of December 31, 2023, may never result in revenue.

Capitalized Contract Costs

As of December 31, 2023, and June 30, 2023, the balance of capitalized costs to obtain a contract was $12.5 million and $11.0 million, respectively. The Company has classified the capitalized costs to obtain a contract as a component of prepaid expenses and other current assets and other assets with respect to the current and non-current portions of capitalized costs, respectively, on the unaudited condensed consolidated balance sheets.

The Company recognized expenses related to the amortization of the capitalized contract costs of $0.7 million and $1.6 million during the three and six months ended December 31, 2023, respectively, and $1.0 million and $1.9 million during the three and six months ended December 31, 2022, respectively. The Company recorded $0.1 million in capitalized contract impairment losses during both the three and six months ended December 31, 2023, and recorded $0.2 million and $0.4 million in capitalized contract impairment losses during the three and six months ended December 31, 2022, respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 31, 2023	Feb. 01, 2024
Cover [Abstract]
Entity Registrant Name	ACCURAY INCORPORATED
Entity Central Index Key	0001138723
Document Type	10-Q
Document Period End Date	Dec. 31, 2023
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Trading Symbol	ARAY
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		99,168,765
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity File Number	001-33301
Entity Tax Identification Number	20-8370041
Entity Address, Address Line One	1240 Deming Way
Entity Address, City or Town	Madison
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53717
City Area Code	608
Local Phone Number	824-2800
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, $0.001 par value per share
Security Exchange Name	NASDAQ

Fair Value Measurements - Additional Information (Details) - Forward Currency Exchange Contracts - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Financial assets
Outstanding forward currency exchange contracts	$ 100,203,000	$ 61,548,000
Level 2
Financial assets
Outstanding forward currency exchange contracts	100,200,000	61,500,000
Fair value of currency contract based on exchange rate	$ 100,400,000	$ 61,200,000

Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance at Jun. 30, 2022	$ 53,189	$ 94	$ 543,211	$ 2,406	$ (492,522)
Balance (in shares) at Jun. 30, 2022		93,500,000
Issuance of common stock to employees, (In shares)		279,000
Share-based compensation	2,906		2,906
Net Income (Loss)	(5,449)				(5,449)
Foreign currency translation adjustment	(3,655)			(3,655)
Balance at Sep. 30, 2022	46,991	$ 94	546,117	(1,249)	(497,971)
Balance (in shares) at Sep. 30, 2022		93,779,000
Balance at Jun. 30, 2022	53,189	$ 94	543,211	2,406	(492,522)
Balance (in shares) at Jun. 30, 2022		93,500,000
Net Income (Loss)	(7,323)
Foreign currency translation adjustment	(865)
Balance at Dec. 31, 2022	51,745	$ 95	550,288	1,541	(500,179)
Balance (in shares) at Dec. 31, 2022		95,494,000
Balance at Sep. 30, 2022	46,991	$ 94	546,117	(1,249)	(497,971)
Balance (in shares) at Sep. 30, 2022		93,779,000
Issuance of common stock to employees	1,139	$ 1	1,138
Issuance of common stock to employees, (In shares)		1,765,000
Tax withholding upon vesting of restricted stock units	(116)		(116)
Tax withholding upon vesting of restricted stock units (in shares)		(50,000)
Share-based compensation	3,136		3,136
Net Income (Loss)	(1,874)				(1,874)
Foreign currency translation adjustment	2,790			2,790
Other	(321)		13		(334)
Balance at Dec. 31, 2022	51,745	$ 95	550,288	1,541	(500,179)
Balance (in shares) at Dec. 31, 2022		95,494,000
Balance at Jun. 30, 2023	$ 53,659	$ 97	555,276	422	(502,136)
Balance (in shares) at Jun. 30, 2023	96,534,609	96,535,000
Issuance of common stock to employees, (In shares)		192,000
Share-based compensation	$ 2,392		2,392
Net Income (Loss)	(2,969)				(2,969)
Foreign currency translation adjustment	(2,138)			(2,138)
Balance at Sep. 30, 2023	50,944	$ 97	557,668	(1,716)	(505,105)
Balance (in shares) at Sep. 30, 2023		96,727,000
Balance at Jun. 30, 2023	$ 53,659	$ 97	555,276	422	(502,136)
Balance (in shares) at Jun. 30, 2023	96,534,609	96,535,000
Net Income (Loss)	$ (12,590)
Foreign currency translation adjustment	635
Balance at Dec. 31, 2023	$ 47,653	$ 99	561,223	1,057	(514,726)
Balance (in shares) at Dec. 31, 2023	99,163,920	99,164,000
Balance at Sep. 30, 2023	$ 50,944	$ 97	557,668	(1,716)	(505,105)
Balance (in shares) at Sep. 30, 2023		96,727,000
Issuance of common stock to employees	1,360	$ 2	1,358
Issuance of common stock to employees, (In shares)		2,484,000
Tax withholding upon vesting of restricted stock units	(117)		(117)
Tax withholding upon vesting of restricted stock units (in shares)		(47,000)
Share-based compensation	2,314		2,314
Net Income (Loss)	(9,621)				(9,621)
Foreign currency translation adjustment	2,773			2,773
Balance at Dec. 31, 2023	$ 47,653	$ 99	$ 561,223	$ 1,057	$ (514,726)
Balance (in shares) at Dec. 31, 2023	99,163,920	99,164,000

Joint Venture - Summary of Financial Information of Joint Ventures (Balance Sheet Data) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022
Schedule Of Equity Method Investments [Line Items]
Current assets	$ 331,170		$ 338,033
Total assets	476,350		479,214
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	209,306		198,637
Stockholder's equity	47,653	$ 50,944	53,659	$ 51,745	$ 46,991	$ 53,189
Total liabilities and stockholders' equity	$ 476,350		$ 479,214
Joint venture
Schedule Of Equity Method Investments [Line Items]
Current assets		94,504			74,525
Non current assets		13,576			17,658
Total assets		108,080			92,183
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities		76,338			66,618
Non current liabilities		174			669
Stockholder's equity		31,568			24,896
Total liabilities and stockholders' equity		$ 108,080			$ 92,183

Income Tax - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Taxes [Line Items]
Income tax expense	$ 878	$ 1,049	$ 2,810	$ 1,390
Gross unrecognized tax benefits	21,600		21,600
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	21,200		$ 21,200
Subsequent period within which no material changes in unrecognized tax benefits are expected			12 months
Foreign
Income Taxes [Line Items]
Income tax expense	$ 900	$ 1,000	$ 2,800	$ 1,400

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Supplemental Financial Information

6 Months Ended

Dec. 31, 2023

Supplemental Financial Information Disclosure [Abstract]

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 on the Company’s balance sheets. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year are included in other assets on the unaudited condensed consolidated balance sheets. The Company evaluates the credit quality of a customer at contract inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new orders and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the contract term and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of non‑payment. The Company performs an assessment each quarter of the allowance for credit losses related to its financing receivables.

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


	December 31, 2023			June 30, 2023
Financing receivables	$	4,717		$	5,854
Allowance for credit losses		(798	)		(798	)
Total, net	$	3,919		$	5,056
Reported as:
Current	$	1,604		$	2,016
Non-current		2,315			3,040
Total, net	$	3,919		$	5,056

Inventories

Inventories consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Raw materials	$	63,699	$	62,945
Work-in-process		16,387		17,469
Finished goods		75,142		64,736
Inventories	$	155,228	$	145,150

The Company's inventories on the unaudited condensed consolidated balance sheets are net of reserves.

Prepaid and Other Current Assets

Prepaid and other current assets consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Value added tax receivables	$	7,321	$	11,718
Prepaid commissions		5,906		5,866
Capitalized contract costs		1,800		1,782
Other prepaid assets		6,495		5,763
Other current assets		3,498		2,483
Total prepaid and other current assets	$	25,020	$	27,612

Property and equipment, net

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


	December 31, 2023			June 30, 2023
Furniture and fixtures	$	1,848		$	1,581
Computer and office equipment		7,781			7,798
Software		13,238			5,191
Leasehold improvements		35,667			26,641
Machinery and equipment		44,649			44,779
Construction in progress		3,426			13,499
		106,609			99,489
Less: Accumulated depreciation		(80,690	)		(78,563	)
Property and equipment, net	$	25,919		$	20,926

At December 31, 2023, software includes $8.1 million in capitalized costs for the completed transition of the Company's new enterprise resource planning system in August 2023. The Company will depreciate the enterprise resource planning system over five years. Depreciation expense related to property and equipment was $1.5 million and $2.7 million during the three and six months ended December 31, 2023, respectively, and $1.1 million and $2.2 million during the three and six months ended December 31, 2022, respectively.

Other Assets

Other assets consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Capitalized contract costs	$	10,736	$	9,244
Long-term accounts receivable		4,564		4,734
Capitalized software costs to be sold		3,624		2,853


Other long-term assets		3,569		3,276
Total other assets	$	22,493	$	20,107

Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Value added tax liabilities	$	8,540	$	12,368
Commissions due to third parties		8,777		10,499
Refunds due to customers		4,041		3,364
Accrued consulting		1,246		2,599
Accrued royalties		2,518		2,398
Income tax payable		1,869		900
Other liabilities		9,262		6,143
Total other accrued liabilities	$	36,253	$	38,271

Accumulated Other Comprehensive Income

The changes in accumulated other comprehensive income 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 in the stockholders' equity section of the Company’s unaudited condensed consolidated balance sheets are as follows (in thousands):


	December 31, 2023			June 30, 2023
Cumulative foreign currency translation adjustment	$	(1,697	)	$	(2,332	)
Defined benefit pension obligation		2,754			2,754
Accumulated other comprehensive income	$	1,057		$	422

Statements of Operations

Other expense, net, consisted of the following (in thousands):


	Three Months Ended December 31,						Six Months Ended December 31,
	2023			2022			2023			2022
Interest expense	$	(2,922	)	$	(2,644	)	$	(5,844	)	$	(4,906	)
Foreign currency exchange loss		(1,278	)		(33	)		(2,234	)		(284	)
Other, net		(152	)		(154	)		45			(199	)
Total other expense, net	$	(4,352	)	$	(2,831	)	$	(8,033	)	$	(5,389	)

Debt - Schedule of Carrying Values of All Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Debt Instrument [Line Items]
Principal amount of the Notes	$ 177,000	$ 180,000
Unamortized debt costs	(2,242)	(2,717)
Net carrying amount	174,758	177,283
Reported as:
Short-term debt	6,738	5,721
Long-term debt	168,020	171,562
Net carrying amount	174,758	177,283
Revolving Credit Facility
Debt Instrument [Line Items]
Principal amount of the Notes	10,000	10,000
Unamortized debt costs	0	0
Net carrying amount	10,000	10,000
Reported as:
Net carrying amount	10,000	10,000
3.75% Convertible Notes Due 2026
Debt Instrument [Line Items]
Principal amount of the Notes	100,000	100,000
Unamortized debt costs	(1,517)	(1,811)
Net carrying amount	98,483	98,189
Reported as:
Net carrying amount	98,483	98,189
Term Loan Facility Due May 2026
Debt Instrument [Line Items]
Principal amount of the Notes	67,000	70,000
Unamortized debt costs	(725)	(906)
Net carrying amount	66,275	69,094
Reported as:
Net carrying amount	$ 66,275	$ 69,094

Fair Value Measurements - Summary of Carrying Value and Estimated Fair Value of all Debt (Parenthetical) (Details)	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022	May 31, 2021
3.75% Convertible Notes Due 2026
Fair value measurement
Interest rate (as a percent)	3.75%	3.75%	3.75%	3.75%

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Oct. 25, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Loss Contingencies [Line Items]
Royalty amount accrued		$ 2,518		$ 2,518		$ 2,398
Accrued benefit		700		700
Restructuring Charges		2,600
Cash paid for restructuring charges		1,900
License agreement \| WARF (Wisconsin Alumni Research Foundation)
Loss Contingencies [Line Items]
Royalty costs		400	$ 600	900	$ 1,100
Royalty amount accrued		2,500		2,500		2,400
Financial Guarantee \| Various Customers
Loss Contingencies [Line Items]
Bank guarantees		$ 1,200		$ 1,200		$ 1,300
Workforce affected by cost saving initiative (as a percent)	5.90%

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2023

Dec. 31, 2022

Net revenue:

Total net revenue

$ 107,238

$ 114,760

$ 211,130

$ 211,253

Cost of revenue:

Total cost of revenue

^[1]

71,336

71,793

135,735

133,689

Gross profit

35,902

42,967

75,395

77,564

Operating expenses:

Research and development

^[2]

15,281

14,641

29,294

28,733

Selling and marketing

11,361

13,586

21,605

24,381

General and administrative

13,224

12,035

26,247

23,927

Total operating expenses

39,866

40,262

77,146

77,041

Income (loss) from operations

(3,964)

2,705

(1,751)

523

Income (loss) from equity method investment, net

(427)

(699)

(1,067)

Other expense, net

(4,352)

(2,831)

(8,033)

(5,389)

Loss before provision for income taxes

(8,743)

(825)

(9,780)

(5,933)

Provision for income taxes

878

1,049

2,810

1,390

Net loss

$ (9,621)

$ (1,874)

$ (12,590)

$ (7,323)

Net loss per share - basic

$ (0.1)

$ (0.02)

$ (0.13)

$ (0.08)

Net loss per share - diluted

$ (0.1)

$ (0.02)

$ (0.13)

$ (0.08)

Weighted average common shares used in computing net loss per share:

Basic

97,776

94,567

97,165

94,048

Diluted

97,776

94,567

97,165

94,048

Other comprehensive income (loss):

Net Income (Loss)

$ (9,621)

$ (1,874)

$ (12,590)

$ (7,323)

Foreign currency translation adjustment

2,773

2,790

635

(865)

Comprehensive income (loss)

(6,848)

916

(11,955)

(8,188)

Products

Net revenue:

Total net revenue

^[3]

51,538

63,269

104,888

107,892

Cost of revenue:

Total cost of revenue

34,333

39,248

70,032

68,098

Services

Net revenue:

Total net revenue

^[4]

55,700

51,491

106,242

103,361

Cost of revenue:

Total cost of revenue

$ 37,003

$ 32,545

$ 65,703

$ 65,591

[1]	Includes cost of revenue from sales to the joint venture, an equity method investment, of $11,102 and $26,373 during the three and six months ended December 31, 2023 and $9,916 and $15,823 during the three and six months ended December 31, 2022. respectively.
[2]	Includes charge backs to the joint venture, an equity method investment, related to research and development of $67 and $199 during the three and six months ended December 31, 2023 and $487 and $1,266 during the three and six months ended December 31, 2022, respectively.
[3]	Includes sales of products to the joint venture, an equity method investment, of $17,890 and $39,842 during the three and six months ended December 31, 2023 and $16,715 and $25,584 during the three and six months ended December 31, 2022, respectively. See Note 13.
[4]	Includes sales of services to the joint venture, an equity method investment, of $4,134 and $6,988 during the three and six months ended December 31, 2023 and $2,494 and $5,451 during the three and six months ended December 31, 2022, respectively. See Note 13.

Derivative Financial Instruments - Schedule of Gain (Loss) Associated with the Company's Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Other expense, net \| Forward contracts
Foreign currency exchange gain on forward contracts	$ 959	$ 363	$ 141	$ 761

Segment Information

6 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

Note 12. Segment Information

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

The Company reports its customer revenues in four geographic regions: the Americas, EIMEA, Asia Pacific and Japan. The Americas region primarily includes the United States, Canada, and Latin America. The EIMEA region includes Europe, India, the Middle East and Africa. The Asia Pacific region consists of Asia, Australia and New Zealand.

Disaggregation of Revenues

The Company disaggregates its revenues from contracts by geographic region, as the Company believes this best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. Revenues attributed to a country or region are based on the shipping address of the Company’s customers. Additionally, the Company typically recognizes revenue at a point in time for product revenue and recognizes revenue over time for service revenue.

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


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Americas	$	23,742	$	27,919	$	44,299	$	55,204
EIMEA		43,800		39,664		83,333		76,410
China		23,375		22,278		49,590		35,278
Japan		10,648		15,700		23,240		27,188
Asia Pacific, excluding China		5,673		9,199		10,668		17,173
Total	$	107,238	$	114,760	$	211,130	$	211,253

Disaggregation of Long-Lived Assets


	December 31,		June 30,
	2023		2023
Americas	$	44,360	$	41,569
EIMEA		2,369		3,074
China		1,139		501
Japan		803		1,096
Asia Pacific, excluding China		342		539
Total	$	49,013	$	46,779

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Revenue - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Recognition of deferred revenue	$ 21.2	$ 20.6	$ 51.2	$ 55.5
Remaining performance obligations amount	987.9		$ 987.9
Percentage of changes in operating results on entity's revenue			23.00%
Capitalized costs to obtain a contract	12.5		$ 12.5		$ 11.0
Impairment loss	0.1	0.2	0.1	0.4
Capitalized contract cost, amortization	0.7	$ 1.0	1.6	$ 1.9
Long-term Warranty and Service
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations amount	67.5		67.5
Performance Obligations Other Than Warrant
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations amount	920.4		920.4
Performance Obligations Service Contracts
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations amount	$ 870.4		$ 870.4

Joint Venture - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Schedule Of Equity Method Investments [Line Items]
Currency translation adjustment	$ 90	$ (159)
Joint venture
Schedule Of Equity Method Investments [Line Items]
Percentage of ownership interest in joint venture	49.00%
Currency translation adjustment	$ 900
Accuray Asia
Schedule Of Equity Method Investments [Line Items]
Proportion of recognizing joint venture income or loss	49.00%

Derivative Financial Instruments (Tables)

6 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Outstanding Forward Currency Exchange Contracts

The notional amount of the Company's outstanding forward currency exchange contracts consisted of the following (in thousands):


	December 31, 2023		June 30, 2023
Swiss Franc	$	45,238	$	26,867
Chinese Yuan		6,191		249
Euro		20,545		17,885
British Pound		736		516
Indian Rupee		6,356		3,539
Korean Won		2,338		—
Japanese Yen		18,799		12,492
Total outstanding forward currency exchange contracts	$	100,203	$	61,548

Schedule of Gain (loss) Associated With the Company's Derivative Financial Instruments

The following table provides information about the gain or loss associated with the Company’s derivative financial instruments not designated as hedging instruments (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Foreign currency exchange gain on forward contracts	$	959	$	363	$	141	$	761

Leases - Schedule of Operating Leases (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2023

Dec. 31, 2022

Leases [Abstract]

Operating lease costs

^[1]

$ 2,456

$ 2,314

$ 5,010

$ 4,651

Short-term operating lease costs

130

133

231

Cash paid for amounts included in the measurement of lease liabilities

$ 2,536

$ 2,211

$ 5,025

$ 4,443

[1]	Excludes expenses related to short-term lease operating costs.

Fair Value Measurements - Summary of Carrying Value and Estimated Fair Value of all Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Carrying Value
Fair value measurement
Long term debt	$ 174,758	$ 177,283
Fair Value
Fair value measurement
Long term debt	167,624	177,359
Non-recurring basis \| Carrying Value \| Level 2 \| 3.75% Convertible Notes Due 2026
Fair value measurement
Long term debt	98,483	98,189
Non-recurring basis \| Fair Value \| Level 2 \| 3.75% Convertible Notes Due 2026
Fair value measurement
Long term debt	91,349	98,265
Term Loan Facility \| Non-recurring basis \| Carrying Value \| Level 2
Fair value measurement
Long term debt	66,275	69,094
Term Loan Facility \| Non-recurring basis \| Fair Value \| Level 2
Fair value measurement
Long term debt	66,275	69,094
Revolving Credit Facility \| Non-recurring basis \| Carrying Value \| Level 2
Fair value measurement
Long term debt	10,000	10,000
Revolving Credit Facility \| Non-recurring basis \| Fair Value \| Level 2
Fair value measurement
Long term debt	$ 10,000	$ 10,000

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2023

Dec. 31, 2022

Total net revenue

$ 107,238

$ 114,760

$ 211,130

$ 211,253

Total cost of revenue

^[1]

71,336

71,793

135,735

133,689

Research and development

^[2]

15,281

14,641

29,294

28,733

Products

Total net revenue

^[3]

51,538

63,269

104,888

107,892

Total cost of revenue

34,333

39,248

70,032

68,098

Services

Total net revenue

^[4]

55,700

51,491

106,242

103,361

Total cost of revenue

37,003

32,545

65,703

65,591

Revenue from Joint Venture

Total cost of revenue

11,102

9,916

26,373

15,823

Research and development

487

199

1,266

Revenue from Joint Venture | Products

Total net revenue

17,890

16,715

39,842

25,584

Revenue from Joint Venture | Services

Total net revenue

$ 4,134

$ 2,494

$ 6,988

$ 5,451

[1]	Includes cost of revenue from sales to the joint venture, an equity method investment, of $11,102 and $26,373 during the three and six months ended December 31, 2023 and $9,916 and $15,823 during the three and six months ended December 31, 2022. respectively.
[2]	Includes charge backs to the joint venture, an equity method investment, related to research and development of $67 and $199 during the three and six months ended December 31, 2023 and $487 and $1,266 during the three and six months ended December 31, 2022, respectively.
[3]	Includes sales of products to the joint venture, an equity method investment, of $17,890 and $39,842 during the three and six months ended December 31, 2023 and $16,715 and $25,584 during the three and six months ended December 31, 2022, respectively. See Note 13.
[4]	Includes sales of services to the joint venture, an equity method investment, of $4,134 and $6,988 during the three and six months ended December 31, 2023 and $2,494 and $5,451 during the three and six months ended December 31, 2022, respectively. See Note 13.

- Definition

The aggregate cost of goods produced and sold and services rendered during the reporting period.

Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Changes in the carrying amount of goodwill
Balance at the beginning of the period	$ 57,681	$ 57,840
Currency translation	90	(159)
Balance at the end of the period	$ 57,771	$ 57,681

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Goodwill and Intangible Assets - Schedule of Carrying Amount of Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,132	$ 1,132
Accumulated Amortization	(1,016)	(922)
Net Amount	116	210
Patent license
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,000	1,000
Accumulated Amortization	(964)	(893)
Net Amount	36	107
Other Intangible Assets [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	132	132
Accumulated Amortization	(52)	(29)
Net Amount	$ 80	$ 103

Goodwill and Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

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


	December 31, 2023		June 30, 2023
Balance at the beginning of the period	$	57,681	$	57,840
Currency translation		90		(159	)
Balance at the end of the period	$	57,771	$	57,681

Schedule of carrying amount of acquired intangible assets, net

The Company’s carrying amount of acquired intangible assets, net, consisted of the following (in thousands):


	December 31, 2023							June 30, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Patent license	$	1,000	$	(964	)	$	36	$	1,000	$	(893	)	$	107
Other intangibles		132		(52	)		80		132		(29	)		103
Total intangible assets	$	1,132	$	(1,016	)	$	116	$	1,132	$	(922	)	$	210

Schedule of estimated future amortization expense of acquired intangible assets, net

The estimated future amortization expense of acquired intangible assets, net, as of December 31, 2023, is as follows (in thousands):


	Amount
2024 (remaining six months)	$	58
2025		44
2026		14
Total estimated future amortization expense	$	116

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

Derivative Financial Instruments - Summary of Outstanding Forward Currency Exchange Contracts (Details) - Forward Currency Exchange Contracts - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Outstanding forward currency exchange contracts	$ 100,203,000	$ 61,548,000
Swiss Franc
Outstanding forward currency exchange contracts	45,238,000	26,867,000
Chinese Yuan
Outstanding forward currency exchange contracts	6,191,000	249,000
Euro
Outstanding forward currency exchange contracts	20,545,000	17,885,000
British Pound
Outstanding forward currency exchange contracts	736,000	516,000
Indian Rupee
Outstanding forward currency exchange contracts	6,356,000	3,539,000
Korean Won
Outstanding forward currency exchange contracts	2,338,000	0
Japanese Yen
Outstanding forward currency exchange contracts	$ 18,799,000	$ 12,492,000

Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Summary of Carrying Values and Estimated Fair Values of Short-Term and Long-Term Debt

The table below summarizes the carrying value and estimated fair value of the 3.75% Convertible Senior Notes due 2026, Term Loan Facility, and the Revolving Credit Facility (in thousands):


	December 31, 2023				June 30, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
3.75% Convertible Notes due 2026	$	98,483	$	91,349	$	98,189	$	98,265
Term Loan Facility		66,275		66,275		69,094		69,094
Revolving Credit Facility		10,000		10,000		10,000		10,000
Total	$	174,758	$	167,624	$	177,283	$	177,359

Joint Venture (Tables)

6 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Summary of Reconciliation Between the Carrying Value of Investment and Proportional Share of Underlying Equity in Net Assets of Joint Ventures


	December 31, 2023			June 30, 2023
Carrying value of investment in joint venture	$	14,536		$	15,128
Deferred intra-entity profit margin		5,443			5,737
Equity method goodwill		(4,720	)		(4,720	)
Proportional share of equity investment in joint venture	$	15,259		$	16,145

Summary of Financial Information of Joint Ventures (Operations Data)

Summarized financial information of the JV is as follows (in thousands):


	Three Months Ended September 30,						Six Months Ended September 30,
Statement of Operations Data:	2023			2022			2023		2022
Revenue	$	22,457		$	23,983		$	54,312	$	50,723
Gross profit		2,800			3,719			8,613		8,315
Net income (loss)		(872	)		(1,416	)		7		(2,168	)
Net income (loss) attributable to the Company		(427	)		(699	)		4		(1,067	)

Summary of Financial Information of Joint Ventures (Balance Sheet Data)


Summarized Balance Sheet Data:	As of September 30, 2023		As of September 30, 2022
Assets
Current assets	$	94,504	$	74,525
Non-current assets		13,576		17,658
Total assets	$	108,080	$	92,183
Liabilities and Stockholders' Equity
Current liabilities	$	76,338	$	66,618
Non-current liabilities		174		669
Stockholders' equity		31,568		24,896
Total liabilities and stockholders' equity	$	108,080	$	92,183

Schedule of Net Revenue Recognized From Intra Entity Profit Margin

The following table shows the activity of the Company’s net revenue recognized from intra-entity profit margin from sales (in thousands):


	Three Months Ended December 31,						Six Months Ended December 31,
	2023			2022			2023			2022
Sales recognized from released deferred intra-entity profit margin	$	4,728		$	4,067		$	6,313		$	6,415
Deferred intra-entity profit margin from sales		(2,858	)		(3,042	)		(6,019	)		(5,429	)
Net revenue recognized from intra-entity profit margin from sales (1)	$	1,870		$	1,025		$	294		$	986

(1)

Net Loss Per Common Share (Tables)

6 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net 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, except for per share amounts):


	Three Months Ended December 31,						Six Months Ended December 31,
	2023			2022			2023			2022
Numerator:
Net loss	$	(9,621	)	$	(1,874	)	$	(12,590	)	$	(7,323	)
Denominator:
Weighted average shares outstanding - basic and diluted		97,776			94,567			97,165			94,048
Basic and diluted net loss per share	$	(0.10	)	$	(0.02	)	$	(0.13	)	$	(0.08	)
Anti-dilutive share-based awards, excluded		14,601			14,910			14,601			14,910

Supplemental Financial Information - Summary of Financing Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Financing receivables
Financing receivables	$ 4,717	$ 5,854
Allowance for credit losses	(798)	(798)
Total, net	3,919	5,056
Current	1,604	2,016
Non-current	$ 2,315	$ 3,040

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 80
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479294/326-20-55-80

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479294/326-20-55-79

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479344/326-20-45-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
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-Section S99
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph (a)
-Subparagraph (1)
-Publisher SEC

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph (a)
-Subparagraph (2)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1404
-Paragraph (a)
-Publisher SEC

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-14

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 7A
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-Topic 310
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-7A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-5

+ Details

Net Loss Per Common Share

6 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Loss Per Common Share

Note 11. Net Loss Per Common Share

The Company reports both basic and diluted net 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, except for per share amounts):


	Three Months Ended December 31,						Six Months Ended December 31,
	2023			2022			2023			2022
Numerator:
Net loss	$	(9,621	)	$	(1,874	)	$	(12,590	)	$	(7,323	)
Denominator:
Weighted average shares outstanding - basic and diluted		97,776			94,567			97,165			94,048
Basic and diluted net loss per share	$	(0.10	)	$	(0.02	)	$	(0.13	)	$	(0.08	)
Anti-dilutive share-based awards, excluded		14,601			14,910			14,601			14,910

The potentially dilutive shares of the Company’s common stock are excluded from the computation of diluted net loss per share when their effect would have been anti‑dilutive. Additionally, the outstanding 3.75% Convertible Notes due 2026 are included in the calculation of diluted net loss per share only if their inclusion is dilutive for periods during which the 3.75% Convertible Notes due 2026 were outstanding. The shares of common stock issuable upon conversion of the outstanding principal amount of the 3.75% Convertible Notes due 2026 as of three and six months ended December 31, 2023 and 2022 totaled approximately 17.1 million shares and were not included in the basic and diluted net loss per common share as the effect of adding the shares were anti-dilutive.

Joint Venture - Summary of Reconciliation Between the Carrying Value of Investment and Proportional Share of Underlying Equity in Net Assets of Joint Ventures (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023	Jun. 30, 2022
Schedule of Equity Method Investments [Line Items]
Equity method goodwill	$ 57,771	$ 57,681	$ 57,840
Joint venture
Schedule of Equity Method Investments [Line Items]
Carrying value of investment in joint venture	14,536	15,128
Deferred intra-entity profit margin	5,443	5,737
Equity method goodwill	(4,720)	(4,720)
Proportional share of equity investment in joint venture	$ 15,259	$ 16,145

- Definition

+ References + Details

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Accounts receivable, allowance for credit losses (in dollars)	$ 2,866	$ 3,079
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	99,163,920	96,534,609
Common stock, outstanding shares	99,163,920	96,534,609
Accounts Receivable \| Corporate Joint Venture
Accounts receivable from joint venture	$ 19,893	$ 10,304
Prepaid Expenses and Other Current Assets \| Corporate Joint Venture
Accounts receivable from joint venture	$ 67	$ 100

Segment Information - Schedule of Geographic Areas in Which the Company has Long-Lived Assets, Property and Equipment Net and Operating Lease Right of Use Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Segment Information
Long lived tangible assets	$ 49,013	$ 46,779
Americas
Segment Information
Long lived tangible assets	44,360	41,569
Europe, India, Middle East, and Africa
Segment Information
Long lived tangible assets	2,369	3,074
China
Segment Information
Long lived tangible assets	1,139	501
Japan
Segment Information
Long lived tangible assets	803	1,096
Asia Pacific, excluding China
Segment Information
Long lived tangible assets	$ 342	$ 539

Supplemental Financial Information - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Property and equipment, net
Property and equipment, gross	$ 106,609	$ 99,489
Less: Accumulated depreciation	(80,690)	(78,563)
Property and equipment, net	25,919	20,926
Furniture and Fixtures
Property and equipment, net
Property and equipment, gross	1,848	1,581
Computer and Office Equipment
Property and equipment, net
Property and equipment, gross	7,781	7,798
Software
Property and equipment, net
Property and equipment, gross	13,238	5,191
Leasehold Improvements
Property and equipment, net
Property and equipment, gross	35,667	26,641
Machinery and Equipment
Property and equipment, net
Property and equipment, gross	44,649	44,779
Construction in Progress
Property and equipment, net
Property and equipment, gross	$ 3,426	$ 13,499

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (9,621)	$ (2,969)	$ (1,874)	$ (5,449)	$ (12,590)	$ (7,323)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Revenue - Schedule of Remaining Performance Obligations related to Warranty (Details) - Long-term Warranty and Service $ in Thousands	Dec. 31, 2023 USD ($)
2024	$ 15,979
2025	24,780
2026	18,225
Thereafter	$ 8,563

Unaudited Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Dec. 31, 2023

Jun. 30, 2023

Current assets:

Cash and cash equivalents

$ 72,756

$ 89,402

Restricted cash

485

524

Accounts receivable, net of allowance for credit losses of $2,866 and $3,079 as of December 31, 2023, and June 30, 2023, respectively

^[1]

77,397

74,777

Inventories

155,228

145,150

Prepaid expenses and other current assets

^[2]

25,020

27,612

Deferred cost of revenue

284

568

Total current assets

331,170

338,033

Property and equipment, net

25,919

20,926

Investment in joint venture

14,536

15,128

Operating lease right-of-use assets, net

23,094

25,853

Goodwill

57,771

57,681

Intangible assets, net

116

210

Restricted cash

1,251

1,276

Other assets

22,493

20,107

Total assets

476,350

479,214

Current liabilities:

Accounts payable

39,180

33,739

Accrued compensation

21,345

23,793

Operating lease liabilities, current

5,707

4,151

Other accrued liabilities

36,253

38,271

Customer advances

22,677

20,777

Deferred revenue

77,406

72,185

Short-term debt

6,738

5,721

Total current liabilities

209,306

198,637

Long-term liabilities:

Operating lease liabilities, non-current

21,758

23,602

Long-term other liabilities

4,804

4,675

Deferred revenue, non-current

24,809

27,079

Long-term debt

168,020

171,562

Total liabilities

428,697

425,555

Commitments and contingencies (Note 8)

Stockholders' equity:

Common stock, $0.001 par value; authorized: 200,000,000 shares as of December 31, 2023, and June 30, 2023, respectively; issued and outstanding: 99,163,920 and 96,534,609 shares at December 31, 2023, and June 30, 2023, respectively

Additional paid-in-capital

561,223

555,276

Accumulated other comprehensive income

1,057

422

Accumulated deficit

(514,726)

(502,136)

Total stockholders' equity

47,653

53,659

Total liabilities and stockholders' equity

$ 476,350

$ 479,214

[1]	Includes accounts receivable from the joint venture, an equity method investment, of $19,893 and $10,304 at December 31, 2023, and June 30, 2023, respectively. See Note 13.
[2]	Includes other receivables from the joint venture, an equity method investment, of $67 and $100 at December 31, 2023, and June 30, 2023, respectively.

Stock Incentive Plan and Employee Stock Purchase Plan (Tables)

6 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Share-based Compensation Expenses by Functional Line Item Noted Within Company's Operating Expenses

The following table presents details of share-based compensation expenses, by functional line item, noted within the Company's operating expenses (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Cost of revenue	$	390	$	443	$	626	$	809
Research and development		280		403		681		771
Selling and marketing		437		458		845		944
General and administrative		1,207		1,822		2,554		3,518
Total share-based compensation	$	2,314	$	3,126	$	4,706	$	6,042

Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

Goodwill

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


	December 31, 2023		June 30, 2023
Balance at the beginning of the period	$	57,681	$	57,840
Currency translation		90		(159	)
Balance at the end of the period	$	57,771	$	57,681

The Company performed its annual goodwill impairment test in the second quarter of fiscal year 2024, and determined that there was no impairment to goodwill. The Company will continue to monitor its recorded goodwill for indicators of impairment.

Purchased Intangible Assets

The Company’s carrying amount of acquired intangible assets, net, consisted of the following (in thousands):


	December 31, 2023							June 30, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
Patent license	$	1,000	$	(964	)	$	36	$	1,000	$	(893	)	$	107
Other intangibles		132		(52	)		80		132		(29	)		103
Total intangible assets	$	1,132	$	(1,016	)	$	116	$	1,132	$	(922	)	$	210

The Company did not identify any triggering events that would indicate a potential impairment of its definite-lived intangible and long-lived assets as of December 31, 2023.

The estimated future amortization expense of acquired intangible assets, net, as of December 31, 2023, is as follows (in thousands):


	Amount
2024 (remaining six months)	$	58
2025		44
2026		14
Total estimated future amortization expense	$	116

Net Loss Per Common Share - Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022
Numerator:
Net Income (Loss)	$ (9,621)	$ (2,969)	$ (1,874)	$ (5,449)	$ (12,590)	$ (7,323)
Denominator:
Weighted average shares outstanding - basic	97,776		94,567		97,165	94,048
Weighted average shares outstanding - diluted	97,776		94,567		97,165	94,048
Basic net loss per share	$ (0.1)		$ (0.02)		$ (0.13)	$ (0.08)
Diluted net loss per share	$ (0.1)		$ (0.02)		$ (0.13)	$ (0.08)
Anti-dilutive share-based awards, excluded	14,601		14,910		14,601	14,910

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Leases [Abstract]
2024 (remaining six months)	$ 3,955
2025	4,094
2026	3,736
2027	3,638
2028	3,349
Thereafter	23,306
Total operating lease payments	42,078
Less: imputed interest	(14,613)
Present value of operating lease liabilities	$ 27,465
Weighted average remaining lease term (in years)	9 years
Weighted average discount rate	9.80%