Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 15, 2019 | Dec. 31, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ACCURAY INC | ||
Entity Central Index Key | 0001138723 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Trading Symbol | ARAY | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 226,552,976 | ||
Entity Common Stock, Shares Outstanding | 88,777,310 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-33301 | ||
Entity Tax Identification Number | 208370041 | ||
Entity Address, Address Line One | 1310 Chesapeake Terrace | ||
Entity Address, City or Town | Sunnyvale | ||
Entity Address, State or Province | California | ||
Entity Address, Postal Zip Code | 94089 | ||
City Area Code | 408 | ||
Local Phone Number | 7164600 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 76,798 | $ 83,083 |
Restricted cash | 10,218 | 9,830 |
Accounts receivable, net of allowance for doubtful accounts of $605 and $251 as of June 30, 2019 and June 30, 2018, respectively | 111,885 | 65,994 |
Inventories | 120,823 | 108,540 |
Prepaid expenses and other current assets | 24,205 | 15,569 |
Deferred cost of revenue | 146 | 1,141 |
Total current assets | 344,075 | 284,157 |
Property and equipment, net | 17,122 | 23,698 |
Goodwill | 57,770 | 57,855 |
Intangible assets, net | 679 | 821 |
Restricted cash | 1,162 | 620 |
Other assets | 17,373 | 11,576 |
Total assets | 438,181 | 378,727 |
Current liabilities: | ||
Accounts payable | 29,562 | 19,694 |
Accrued compensation | 31,150 | 28,992 |
Other accrued liabilities | 32,742 | 22,448 |
Customer advances | 20,395 | 22,896 |
Deferred revenue | 78,332 | 75,404 |
Total current liabilities | 192,181 | 169,434 |
Long-term liabilities: | ||
Long-term other liabilities | 9,646 | 8,608 |
Deferred revenue | 26,639 | 20,976 |
Long-term debt | 159,844 | 131,077 |
Total liabilities | 388,310 | 330,095 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; authorized: 5,000,000 shares; no shares issued and outstanding | ||
Common stock, $0.001 par value; authorized: 200,000,000 shares as of June 30, 2019 and June 30, 2018, respectively; issued and outstanding: 88,521,511 and 86,129,256 shares at June 30, 2019 and June 30, 2018, respectively | 89 | 86 |
Additional paid-in-capital | 535,332 | 521,738 |
Accumulated other comprehensive income (loss) | (10) | 1,093 |
Accumulated deficit | (485,540) | (474,285) |
Total stockholders' equity | 49,871 | 48,632 |
Total liabilities and stockholders’ equity | $ 438,181 | $ 378,727 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 605 | $ 251 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 88,521,511 | 86,129,256 |
Common stock, outstanding shares | 88,521,511 | 86,129,256 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net revenue: | |||
Total net revenue | $ 418,785 | $ 404,897 | $ 383,414 |
Cost of revenue: | |||
Total cost of revenue | 256,134 | 243,202 | 242,073 |
Gross profit | 162,651 | 161,695 | 141,341 |
Operating expenses: | |||
Research and development | 56,493 | 57,251 | 49,921 |
Selling and marketing | 55,998 | 60,105 | 57,477 |
General and administrative | 49,577 | 48,136 | 43,766 |
Total operating expenses | 162,068 | 165,492 | 151,164 |
Income (loss) from operations | 583 | (3,797) | (9,823) |
Other expense, net | (14,927) | (19,224) | (18,718) |
Loss before provision for income taxes | (14,344) | (23,021) | (28,541) |
Provision for income taxes | 2,086 | 878 | 1,038 |
Net loss | $ (16,430) | $ (23,899) | $ (29,579) |
Net loss per share—basic and diluted | $ (0.19) | $ (0.28) | $ (0.36) |
Weighted average common shares used in computing net loss per share: | |||
Basic and diluted | 87,465 | 84,893 | 82,495 |
Net loss | $ (16,430) | $ (23,899) | $ (29,579) |
Foreign currency translation adjustment | (247) | 83 | 33 |
Reclassification adjustments on available for sale investments, net of tax | 89 | (74) | |
Change in defined benefit pension obligation | (856) | 973 | 949 |
Comprehensive loss | (17,533) | (22,754) | (28,671) |
Products | |||
Net revenue: | |||
Total net revenue | 196,665 | 183,898 | 179,611 |
Cost of revenue: | |||
Total cost of revenue | 116,711 | 103,038 | 113,357 |
Services | |||
Net revenue: | |||
Total net revenue | 222,120 | 220,999 | 203,803 |
Cost of revenue: | |||
Total cost of revenue | $ 139,423 | $ 140,164 | $ 128,716 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Jun. 30, 2016 | $ 59,660 | $ 81 | $ 481,346 | $ (960) | $ (420,807) |
Balance (in shares) at Jun. 30, 2016 | 81,378,208 | ||||
Exercise of Stock options, net | 463 | 463 | |||
Exercise of Stock options, net (in shares) | 112,482 | ||||
Issuance of restricted stock | $ 2 | (2) | |||
Issuance of restricted stock (in shares) | 1,709,957 | ||||
Issuance of common stock under employee stock purchase plan | 3,346 | $ 1 | 3,345 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 870,037 | ||||
Share-based compensation | 13,154 | 13,154 | |||
Tax withholding upon vesting of restricted stock units | (1,419) | (1,419) | |||
Tax withholding upon vesting of restricted stock units (in shares) | (330,880) | ||||
Net loss | (29,579) | (29,579) | |||
Cumulative translation adjustment | 33 | 33 | |||
Unrealized (loss) on investments, net of tax | (74) | (74) | |||
Reclassification adjustments on available for sale investments, net of tax | (74) | ||||
Change in defined benefit pension obligation | 949 | 949 | |||
Balance at Jun. 30, 2017 | 46,533 | $ 84 | 496,887 | (52) | (450,386) |
Balance (in shares) at Jun. 30, 2017 | 83,739,804 | ||||
Exercise of Stock options, net | 437 | 437 | |||
Exercise of Stock options, net (in shares) | 108,800 | ||||
Issuance of restricted stock | $ 1 | (1) | |||
Issuance of restricted stock (in shares) | 1,166,776 | ||||
Issuance of common stock under employee stock purchase plan | 3,334 | $ 1 | 3,333 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 921,583 | ||||
Share-based compensation | 12,289 | 12,289 | |||
Tax withholding upon vesting of restricted stock units | (293) | (293) | |||
Tax withholding upon vesting of restricted stock units (in shares) | (61,536) | ||||
Retirement of Convertible Senior Notes | 288 | 288 | |||
Retirement of Convertible Senior Notes (in shares) | 253,829 | ||||
Allocated transaction cost in debt issuance | 8,798 | 8,798 | |||
Net loss | (23,899) | (23,899) | |||
Cumulative translation adjustment | 83 | 83 | |||
Reclassification adjustments on available for sale investments, net of tax | 89 | 89 | |||
Change in defined benefit pension obligation | 973 | 973 | |||
Balance at Jun. 30, 2018 | $ 48,632 | $ 86 | 521,738 | 1,093 | (474,285) |
Balance (in shares) at Jun. 30, 2018 | 86,129,256 | 86,129,256 | |||
Exercise of Stock options, net | $ 489 | 489 | |||
Exercise of Stock options, net (in shares) | 114,932 | ||||
Issuance of restricted stock | $ 2 | (2) | |||
Issuance of restricted stock (in shares) | 1,491,379 | ||||
Issuance of common stock under employee stock purchase plan | 3,022 | $ 1 | 3,021 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 911,741 | ||||
Share-based compensation | 10,086 | 10,086 | |||
Tax withholding upon vesting of restricted stock units (in shares) | (125,797) | ||||
Adoption of new revenue recognition standard | 5,175 | 5,175 | |||
Net loss | (16,430) | (16,430) | |||
Cumulative translation adjustment | (247) | (247) | |||
Change in defined benefit pension obligation | (856) | (856) | |||
Balance at Jun. 30, 2019 | $ 49,871 | $ 89 | $ 535,332 | $ (10) | $ (485,540) |
Balance (in shares) at Jun. 30, 2019 | 88,521,511 | 88,521,511 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | |||
Net loss | $ (16,430) | $ (23,899) | $ (29,579) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 10,491 | 9,732 | 18,043 |
Share-based compensation | 10,601 | 12,289 | 13,629 |
Amortization of debt issuance costs | 1,528 | 1,629 | 3,785 |
Amortization and accretion of discount and premium on investments | (15) | 67 | |
Loss on sales of investments | 171 | ||
Accretion of interest on debt | 3,371 | 3,376 | 4,052 |
Provision for (recovery of) bad debt, net | 3,681 | (73) | 119 |
Provision for write-down of inventories | 2,340 | 1,603 | 2,253 |
(Gain) loss on disposal of property and equipment | 2,588 | (8) | 8 |
Loss on extinguishment of debt | 3,452 | ||
Gain on termination of lease obligation | (1,007) | ||
Provision (benefit) for deferred income taxes | (86) | 30 | (268) |
Changes in assets and liabilities: | |||
Accounts receivable, short and long-term | (46,165) | 7,223 | (15,732) |
Inventories | (14,165) | (8,685) | 7,675 |
Prepaid expenses and other assets | (13,049) | 4,209 | (4,437) |
Deferred cost of revenue, short and long-term | 531 | 2,422 | 3,321 |
Accounts payable | 9,456 | 2,002 | 2,189 |
Accrued liabilities | 10,857 | 1,577 | 8,316 |
Customer advances | (2,549) | 6,189 | (5,158) |
Deferred revenues, short and long-term | 8,366 | (4,893) | (8,663) |
Net cash provided by (used in) operating activities | (29,641) | 18,331 | (380) |
Cash flows from investing activities | |||
Purchases of property and equipment, net | (4,311) | (6,276) | (5,031) |
Purchase of intangible assets | (333) | (333) | |
Purchases of investments | (5,940) | (14,992) | |
Sales and maturities of investments | 30,315 | 38,179 | |
Net cash provided by (used in) investing activities | (4,311) | 17,766 | 17,823 |
Cash flows from financing activities | |||
Proceeds from employee stock plans | 3,927 | 4,389 | 3,786 |
Taxes paid related to net share settlement of equity awards | (293) | (1,419) | |
Payments made to note and loan holders | (69,797) | (105,158) | |
Proceeds from debt, net of costs | 19,968 | 66,111 | 48,253 |
Borrowings (repayments) under Revolving Credit Facility, net | 4,578 | (27,863) | |
Net cash provided by (used in) financing activities | 28,473 | (27,453) | (54,538) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 124 | (346) | 197 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (5,355) | 8,298 | (36,898) |
Cash, cash equivalents and restricted cash at beginning of period | 93,533 | 85,235 | 122,133 |
Cash, cash equivalents and restricted cash at end of period | 88,178 | 93,533 | 85,235 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for income taxes | 2,191 | 1,460 | 4,458 |
Cash paid for interest | 9,761 | 9,187 | 9,927 |
Non-cash financing activities: | |||
Exchange of Convertible Notes | 6,641 | ||
Modification of Revolving Credit Facility | 1,997 | ||
Non-cash investing activities: | |||
Unpaid purchase of property and equipment at end of year | 235 | 399 | 210 |
Unpaid purchase of intangible assets at end of year | 667 | ||
Transfers from inventory to property and equipment | $ 1,170 | $ 174 | $ 1,395 |
The Company and its Significant
The Company and its Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
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 has its principal place of business in Sunnyvale, California. The Company has primary offices in the United States, Switzerland, China, Hong Kong and Japan and conducts its business worldwide. Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared in accordance with United States accounting generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The fair value measurement footnote disclosure for the year ended June 30, 2018 was revised to correct an error in the presentation of the fair value for the 3.75% convertible notes. As a result, the fair value was increased by $15.9 million. The supplemental financial information footnote for the year ended June 30, 2018, was revised to correct an error in the presentation of unbilled fees and services. As a result, unbilled fees and services was increased by $0.6 million. These revisions have no impact on the consolidated balance sheet as of June 30, 2018 and the consolidated statement of operations and comprehensive loss, stockholders’ equity and cash flows for the year then ended. Use of Estimates The preparation of 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. Key estimates and assumptions made by the Company relate to revenue recognition, assessment of recoverability of goodwill and intangible assets, valuation of inventories, share‑based compensation expense, convertible notes, income taxes, allowance for doubtful accounts and loss contingencies. Actual results could differ materially from those estimates. Foreign Currency The Company’s international subsidiaries use their local currencies as their functional currencies. For those subsidiaries, assets and liabilities are translated at exchange rates in effect at the balance sheet date and income and expense accounts at the average exchange rate. Resulting translation adjustments are excluded from the determination of net loss and are recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity. Net foreign currency exchange transaction gains or losses are included as a component of other expense, net, in the Company’s consolidated statements of operations and comprehensive loss. Fair Value Measurements The carrying values of the Company’s financial instruments including cash equivalents, restricted cash, accounts receivable and accounts payable are approximately equal to their respective fair values due to the relatively short‑term nature of these instruments. Also refer to Note 8, Fair Value Measurements, Cash and Cash Equivalents The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally. Investments The Company classifies all its investments as available‑for‑sale at the time of purchase since it is management’s intent that these investments be available for current operations, and as such, includes these investments as short‑term investments on its balance sheets. These investments primarily consist of commercial paper, U.S. treasury securities, and U.S. government agency and corporate debt securities. Short‑term investments classified as available‑for‑sale are recorded at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), as a separate component of stockholders’ equity. Realized gains and losses on the sale of securities are determined by specific identification of each security’s cost basis. The Company regularly reviews its investment portfolio to determine if any security is other‑than‑temporarily impaired, which would require it to record an impairment charge in the period any such determination is made. In making this judgment, management evaluates, among other things, the duration and extent to which the fair value of a security is less than its cost, the financial condition of the issuer and any changes thereto, and management’s intent to sell, or whether it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. Other expense, net, includes interest, dividends, amortization of purchase premiums and discounts, realized gains and losses on sales of securities and other‑than‑temporary declines in the fair value of securities, if any. Concentration of Credit Risk and Other Risks and Uncertainties The Company’s cash and cash equivalents are mainly deposited with several major financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant risk on these balances. The Company places its investments with high‑credit quality issuers. The Company does not invest an amount exceeding 5% of its combined cash, cash equivalents and investments in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies and money market accounts. The Company had no customer that represented 10% or more of total net revenue for the years ended June 30, 2019, 2018 and 2017. The Company had one customer at June 30, 2019 and no customer at June 30, 2018 that accounted for more than 10% of accounts receivable, net. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. Accounts receivable are deemed past due in accordance with the contractual terms of the agreement. Accounts are charged against the allowance for doubtful accounts once collection efforts are unsuccessful. Historically, such losses have been within management’s expectations. Single‑source suppliers presently provide the Company with several components. In most cases, if a supplier was unable to deliver these components, the Company believes that it would be able to find other sources for these components subject to any regulatory qualifications, if required. Restricted Cash Restricted cash primarily consists of cash that is temporarily held in bank accounts which are under the control of the lender to the Revolving Credit Facility, certificates of deposit held as guarantees in connection with customer contracts and corporate leases as well as funds held as guarantees for Value‑Added Tax (VAT) obligations in a foreign jurisdiction. Inventories Inventories are stated at the lower of cost (on a first‑in, first‑out basis) or net realizable value. Excess and obsolete inventories are written down based on historical sales and forecasted demand, as judged by management. Revenue Recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers, on January 1, 2018. The Company’s revenue consists of product revenue resulting from the sale of systems, system upgrades and service revenue. The Company accounts for a contract with a customer when there is a legally enforceable contract between the Company and its customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. The Company’s revenues are measured based on the consideration specified in the contract with each customer, net of any discounts and taxes collected from customers that are remitted to government authorities. The Company’s revenue is primarily derived from sales of CyberKnife and TomoTherapy Systems and services, which include post-contract customer support (“PCS”), installation services, training and other professional services. The majority of the Company's revenue arrangements consists of multiple performance obligations, which can include system, upgrades, installation, training, services, construction, and consumables. For bundled arrangements, the Company accounts for individual products and services separately if a product or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company’s products are generally sold without a right of return, and the Company’s contracts generally provide a fixed transaction price. The Company may offer incentives in the form of discounts, including volume system discounts, which are included in the contract and used to calculate the final fixed price of the arrangement. These discounts may pertain to all performance obligations in a specific contract or may be allocated to a specific performance obligation. The Company also from time to time offers extended payment terms beyond one year and commissions or other forms of payment to customers. The Company estimates a financing component in transactions with payment terms extending beyond one year. This financing component is recognized as financing income at the time payment is received. The Company applies the practical expedient to not adjust for a significant financing component if the gap between payment and delivery was expected, at the contract inception, to be less than one year. The Company offers customers the opportunity to trade in their older systems for credit towards the purchase of a new system. The Company generally does not provide specifc trade-in prices or upgrade rights at the time of purchase of the original system. Trade-in or upgrade transactions are based on the then fair value of the system and are separately negotiated taking into consideration circumstances existing at the time of the trade-in or upgrade. Accordingly, trade-ins and upgrades are not considered separate performance obligations in system sales agreements. Traded-in systems generally can be reconditioned and may be resold. The Company accounts for the fair value of the traded-in system in the total consideration in the arrangement by including the net realizable value of the traded-in system less a normal profit margin. The stand-alone selling price (“SSP”) of performance obligations is determined based on observable prices at which the Company separately sells the products and services. If the SSP is not directly observable, then the Company will estimate the SSP considering market conditions, entity-specific factors, and information about the customer or class of customer that is reasonably available. The SSP is generally assessed as a percentage of the list price. The contract consideration allocation is based on the SSP at contract inception. The consideration (net of any discounts) is allocated among separate products and services in a bundle based on their individual SSP. For contract modifications that add additional goods or services or changes pricing, the most recent SSP is used for allocation to the remaining performance obligations. The Company recognizes revenue for certain performance obligations at the point in time when control is transferred, such as delivery of products and upgrades. Service revenue is recognized over the term of the service period as the customer benefits from the services throughout the service period. Revenue related to services performed on a time-and-materials basis is recognized when performed. Services recognized over a period of time comprise a single stand-ready performance obligation satisfied over time as our customers simultaneously receive and consume benefits from the Company's performance. This performance obligation constitutes a series of services that are substantially the same and provided over time using the same measure of progress. Revenues derived from these arrangements are recognized over time using an output method based upon the passage of time as this provides a faithful depiction of the pattern of transfer of control. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer when the Company expects to generate future economic benefits from the related revenue-generating contracts. The Company capitalizes incremental contract acquisition costs, and amortizes such costs over a five year period, the period which the Company expects to benefit, based on historical service renewal rates, and expectations of future customer renewals. Most of the Company’s contract costs are associated with its internal sales force compensation program and a portion of its employee bonus program. The Company capitalizes and presents these contract assets in Prepaid expenses and other current assets and Other assets on its consolidated balance sheets. These contract assets are amortized over a period of five years commencing upon the initial transfer of control of the system to the customer. The amortization of these contract assets is included in cost of sales, research and development, sales and marketing, and general and administrative expenses based on department headcount allocations in the consolidated statements of operations. The pattern of amortization is commensurate with the pattern of transfer of control of the performance obligations to the customer. The Company elected to use the practical expedient in ASC 340-40-25-4 and expense as incurred commissions related to service renewals and upgrades because the contract term is less than a year. The Company invoices its customers based on the billing schedules in its sales arrangements. Payment terms vary from 30 to 90 days, or longer, from the date of invoice. Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms. Deferred revenue for periods presented primarily relates to service contracts where the service fees are billed up-front, generally quarterly or annually, prior to services being performed. The associated deferred revenue is generally recognized over the term of the service period. The Company did not have any significant impairment losses on its contract assets for any period presented. Deferred Revenue and Deferred Cost of Revenue Deferred revenue consists of deferred product revenue and deferred service revenue. Deferred product revenue arises from timing differences between the shipment of product and satisfaction of all revenue recognition criteria consistent with the Company’s revenue recognition policy. Deferred service revenue results from the advance payment for services to be delivered over a period of time. Deferred cost of revenue consists of the direct costs associated with the manufacturing of units and direct service upgrade costs for which the revenue has been deferred in accordance with the Company’s revenue recognition policies. Deferred revenue and associated deferred cost of revenue expected to be realized within one year are classified as current liabilities and current assets, respectively. Customer Advances Customer advances represent payments made by customers in advance of product shipment. In general, customer advances are required for a contract to be recognized in our backlog. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight‑line method over the estimated useful lives of the related assets. Leasehold improvements are depreciated on a straight‑line basis over the remaining term of the lease or the estimated useful life of the asset, whichever is shorter. Machinery and equipment are depreciated over five years. Furniture and fixtures are depreciated over four years. Computer and office equipment and computer software are depreciated over three years. Repairs and maintenance costs, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. Software Capitalization Costs Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. No costs associated with the development of software have been capitalized as the Company believes its current software development process is essentially completed concurrent with the establishment of technological feasibility. Impairment of Long‑Lived Assets The Company reviews long‑lived assets, including intangible assets, property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable using pretax undiscounted cash flows. Impairment, if any, is measured as the amount by which the carrying value of a long‑lived asset exceeds its fair value. Goodwill and Purchased Intangible Assets Goodwill is not amortized, but is evaluated for impairment on an annual basis and when impairment indicators are present. The Company has assessed that it has one operating segment and one reporting unit, and the consolidated net assets, including existing goodwill and other intangible assets, are considered to be the carrying value of the reporting unit. The Company estimates the fair value of the reporting unit based on the Company’s closing stock price on the trading day closest to the annual review date multiplied by the outstanding shares on that date. If the carrying value of the reporting unit is in excess of its fair value, an impairment may exist, and the Company must perform the second step of the analysis, in which the implied fair value of the goodwill is compared to its carrying value to determine the impairment charge, if any. If the estimated fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and no further analysis is required. The Company adopted the new accounting guidance that simplifies the testing for goodwill impairment in the first quarter of fiscal 2019. Refer to Note 2, Recent Accounting Pronouncements. Purchased intangible assets other than goodwill, including developed technology are amortized on a straight‑line basis over their estimated useful lives unless their lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets which range from approximately one to seven years. Shipping and Handling The Company’s billings for shipping and handling for product shipments to customers are included in cost of products. Shipping and handling costs incurred for inventory purchases are capitalized in inventory and expensed in cost of products. Advertising Expenses The Company expenses the costs of advertising and promoting its products and services as incurred. Advertising expenses were approximately $0.5 million, $0.4 million and $0.4 million for the years ended June 30, 2019, 2018 and 2017, respectively, and are included in selling and marketing expense in the consolidated statements of operations. Research and Development Costs Costs related to research, design and development of products are charged to research and development expense as incurred. These costs include direct compensation, benefits, and other headcount related costs for research and development personnel; costs for materials used in research and development activities; costs for outside services and allocated portions of facilities and other corporate costs. The Company has entered into research and clinical study arrangements with selected hospitals, cancer treatment centers, academic institutions and research institutions worldwide. These agreements support the Company’s internal research and development capabilities. Share‑Based Compensation The Company issues stock‑based compensation awards to employees and directors in the form of stock options, restricted stock units (RSUs), performance stock units (PSUs), market stock units (MSUs) and employee stock purchase plan (ESPP) awards (collectively, awards). The Company measures and recognizes compensation expense for all stock‑based awards based on the awards’ fair value. Share‑based compensation for RSUs and PSUs is measured based on the value of the Company’s common stock on the grant date. The Company uses the Monte‑Carlo simulation model to estimate the fair value of MSUs. Share‑based compensation for employee stock options and ESPP awards are measured on the date of grant using a Black‑Scholes option pricing model. Awards vest either on a graded schedule or in a lump sum. The Company determines the fair value of each award as a single award and recognizes the expense on a straight‑line basis over the service period of the award, which is generally the vesting period. The exercise price of stock options granted is equal to the fair market value of the Company’s common stock on the date of grant. Stock options expire ten years from the date of grant. Share‑based compensation expense for stock options, RSUs, PSUs and the ESPP awards is based on awards ultimately expected to vest, and the expense is recorded net of estimated forfeitures. The Company recognizes expense for MSUs net of estimated forfeitures and does not adjust the expense for subsequent changes in the expected outcome of the market‑based vesting conditions. Loss Contingencies The Company is involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. The Company reviews these provisions quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. Net Loss Per Common Share Basic and diluted net loss per share is computed by dividing net loss attributable to stockholders by the weighted average number of common shares outstanding during the year. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to stockholders follows (in thousands): Years Ended June 30, 2019 2018 2017 Numerator: Net loss used to compute basic and diluted loss per share $ (16,430 ) $ (23,899 ) $ (29,579 ) Denominator: Weighted average shares used to compute basic and diluted loss per share 87,465 84,893 82,495 The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the vesting of Restricted Stock Units (RSU), Market Stock Units (MSU) and Performance Stock Units (PSU), and the purchase of shares under the Employee Stock Purchase Program (ESPP), as determined under the treasury stock method, are excluded from the computation of diluted net loss per share because their effect would have been anti‑dilutive. Additionally, the 3.75% Convertible Notes due August 2022 (the “3.75% Convertible Notes”), the 3.50% Convertible Senior Notes due February 1, 2018 (the “3.50% Convertible Notes”), the 3.50% Series A Convertible Notes (the “3.50% Series A Convertible Notes”) due February 1, 2018 are included in the calculation of diluted net income per share only if their inclusion is dilutive for periods during which the notes were outstanding. The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti‑dilutive (in thousands): As of June 30, 2019 2018 2017 Stock options 5,220 2,684 2,463 RSUs, PSUs and MSUs 3,725 5,159 5,227 3.50% Convertible Notes — — 8,378 8,945 7,843 16,068 Outstanding Convertible Notes—Diluted Share Impact The 3.75% Convertible Notes and the 3.50% Series A Convertible Notes have an optional physical (share), cash or combination settlement feature and contain certain conditional conversion features. The 3.50% Series A Convertible Notes were retired in February 2018. Due to the optional cash settlement feature and management’s intent to settle the principal amount thereof in cash, the shares of our common stock issuable upon conversion of the outstanding principal amount of the 3.75% Convertible Notes outstanding as of June 30, 2019, totaling approximately 14.9 million shares of our common stock, were not included in the basic and diluted net loss per common share table above. Income Taxes The Company is required to estimate its income taxes in each of the tax jurisdictions in which it operates prior to the completion and filing of tax returns for such periods. This process involves estimating actual current tax expense together with assessing temporary differences in the treatment of items for tax purposes versus financial accounting purposes that may create net deferred tax assets and liabilities. The Company accounts for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax bases of the Company’s assets and liabilities and their financial statement reported amounts. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses, research and development credit carryforwards and other deferred tax assets. The Company records a valuation allowance to reduce its deferred tax assets to the amount the Company believes is more likely than not to be realized. Because of the uncertainty of the realization of the deferred tax assets, the Company has recorded a full valuation allowance against its domestic and certain foreign net deferred tax assets. The calculation of unrecognized tax benefits involves dealing with uncertainties in the application of complex global tax regulations. Management regularly assesses the Company’s tax positions in light of legislative, bilateral tax treaty, regulatory and judicial developments in the countries in which the Company does business. The Company anticipates that except for $0.01 million in uncertain tax positions that may be reduced related to the lapse of various statutes of limitation, there will be no material changes in uncertain tax positions in the next 12 months. Accumulated Other Comprehensive Loss The components of comprehensive loss consist of net loss, unrealized gains and losses on available‑for‑sale investments, changes in foreign currency exchange rate translation and net changes related to a defined benefit pension plan. The unrealized gains and losses on available‑for‑sale investments, changes in foreign currency exchange rate translation and net changes related to the defined benefit pension plan are excluded from earnings and reported as a component of stockholders’ equity. The foreign currency translation adjustment results from those subsidiaries not using the United States 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 at the current exchange rates at the end of each period. The resulting cumulative translation adjustments are recorded directly to the accumulated other comprehensive loss account in stockholders’ equity. Revenues and expenses are translated at average exchange rates in effect during the period. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Accounting Pronouncement Recently Adopted In June 2018, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-7, Compensation – Stock Compensation (Topic 718) — Improvements to Nonemployee Share-Based Payment Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718)—Scope of Modification Accounting. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715)—Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other Topics (Topic 350)—Simplifying the Test for Goodwill Impairment. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606 The Company completed its assessment of the impact this guidance has on its consolidated financial statements and related disclosures. Based on that assessment, the Company concluded the significant impact areas were recognizing revenue from sales of systems at the time of transfer of control, which is generally upon delivery, the capitalization and amortization of incremental costs of obtaining a contract, primarily related to certain bonuses and sales commissions, change in SSP and the removal of software revenue recognition rules along with the elimination of revenue deferral for cash basis customers. Under the new standards, the Company capitalizes incremental contract acquisition costs, such as certain bonuses and sales commissions, and amortizes such costs over the period which the Company benefits, as estimated by management, which may extend beyond the initial contract term. The Company amortizes capitalized bonuses and sales commissions over a period of five years commencing upon the initial transfer of control of the system to the customer. The pattern of amortization is commensurate with the pattern of transfer of control of the performance obligations to the customer. The Company elected to use the practical expedient in ASC 340-40-25-4 and expense commissions related to service renewals and upgrades with a renewal contract term of one year or less as incurred. The Company recorded a net reduction to opening accumulated deficit of $5.1 million, net of tax, as of July 1, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to the deferral of incremental costs to obtain contracts. Under ASC 606, product revenue for direct sales are accelerated to reflect transfer of control upon delivery while an element of installation is deferred until performed. Prior to the adoption of ASC 606, the Company deferred revenue until installation had occurred. The revenue recognition method for indirect sales and service revenues is unchanged under the new guidance. Refer to Note 3, Revenue, Accounting Pronouncements Not Yet Effective In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging. In June 2016, the FASB issued ASU No. 2016-13 Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" (ASU 2016-02 or Topic 842), which requires lessees to recognize right-of-use (ROU) assets and lease liabilities arising from operating and financing leases with terms longer than 12 months in the consolidated balance sheets and to disclose key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements (ASU 2016-02 or Topic 842)" allowing an alternative modified transition method. Under this method, the cumulative-effect adjustment to the opening balance of retained earnings is recognized on the date of adoption with comparative prior periods not being restated. The new standard, including subsequent amendments is effective for our interim and annual periods beginning July 1, 2019. The Company will adopt the new guidance in the first quarter of fiscal year 2020 using the alternative modified transition basis, thereby recognizing the cumulative effect of initially applying Topic 842 as an adjustment to opening balance sheet on the adoption date, without revising the balances in comparative periods. The Company plans to elect the package of transitional practical expedients allowing, among other provisions, the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct cost, for any existing leases on the adoption date. For the facility and car leases, the Company intends to elect to account for lease and non-lease components as a single lease component. The Company intends to make an accounting policy election not to record leases that, at the lease commencement date, have a lease term of 12 months or less on the balance sheet. The Company has substantially completed its evaluation of the new lease guidance implementation and assessed the effect of the adoption on its consolidated financial statements. In connection with the adoption of the new guidance, the Company expects to recognize ROU asset ranging from $29.6 million to $31.6 million and lease liability ranging from $33.5 million to $35.5 million in its balance sheet as of July 1, 2019, with no impact to its results of operations and cash flows. The difference between the leased assets and lease liabilities represents the net position of existing prepaid rent and deferred rent liabilities balance, resulting from historical straight-lining of operating leases, which will be effectively reclassified upon adoption to reduce the measurement of the leased assets. The Company believes that substantially all of its undiscounted future minimum operating lease commitments based on its current lease portfolio that were not recognized on its consolidated balance sheet as of June 30, 2019 but disclosed in Note 9 to the consolidated financial statements, will be subject to the new standard. |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 3. Revenue On July 1, 2018, the Company adopted ASC 606 electing the modified retrospective method for contracts that were still open as of July 1, 2018. Results for reporting periods after July 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with legacy accounting guidance under ASC 605. The beginning net cumulative-effect adjustment to retained earnings for the adoption of ASC 606 is as follows: Balance at Adjustment Balance as Reported at (Dollars in thousands) July 1, 2018 ASC 606 June 30, 2018 Assets: Account receivable, net $ 66,251 $ 257 $ 65,994 Deferred cost of revenue - current 677 (464 ) 1,141 Prepaid expenses and other current assets 16,239 670 15,569 Other assets 17,416 5,840 11,576 Liabilities and Stockholders' Equity: Other accrued liabilities 23,059 611 22,448 Deferred revenue - current 75,515 111 75,404 Long-term other liabilities 9,075 467 8,608 Accumulated deficit (469,171 ) 5,114 (474,285 ) Select consolidated balance sheets line items, which reflect the adoption of ASC 606 are as follows: June 30, 2019 (Dollars in thousands) As Reported Adjustments Balances Without Adoption Assets: Account receivable, net $ 111,885 $ 6,568 $ 105,317 Deferred cost of revenue - current 146 (20,124 ) 20,270 Prepaid expenses and other current assets 24,205 3,508 20,697 Other assets 17,373 6,893 10,480 Liabilities and Stockholders' Equity: Other accrued liabilities 32,742 760 31,982 Deferred revenue - current 78,332 (31,220 ) 109,552 Long-term other liabilities 9,646 1,200 8,446 Accumulated deficit (485,540 ) 26,104 (511,644 ) Select consolidated statements of operations and comprehensive loss line items for the year ended June 30, 2019, which reflect the adoption of ASC 606 are as follows: Year Ended June 30, 2019 (Dollars in thousands) As Reported Adjustments Balances Without Adoption Net revenue $ 418,785 $ 37,861 $ 380,924 Cost of goods sold 256,134 19,257 236,877 Other expense, net 14,927 (622 ) 15,549 Research and development 56,493 (307 ) 56,800 Selling and marketing 55,998 (1,108 ) 57,106 General and administrative 49,577 (657 ) 50,234 Provision for income taxes 2,086 308 1,778 Net loss (16,430 ) 20,990 (37,420 ) Net loss per share - basic and diluted $ (0.19 ) $ 0.23 $ (0.42 ) The adoption of ASC 606 had no impact to net cash from or used in operating, investing or financing activities in the Company's consolidated statements of cash flows. Contract Balances The timing of revenue recognition, billings, and cash collections results in trade, unbilled receivables, and deferred revenues on the consolidated balance sheets. The Company may offer longer or extended payments 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 up to two and half years from the time of order to revenue recognition due to the Company’s long sales cycle. Changes in the contract assets and contract liabilities are as follows: June 30, 2019 July 2018 Change (Dollars in thousands) Amount Amount $ % Assets: Unbilled accounts receivable – current (1) $ 5,260 $ 3,218 2,042 63 Interest receivable – current (2) 361 — 361 100 Long-term accounts receivable (3) 4,116 6,833 (2,717 ) (40 ) Interest receivable – non-current (3) 1,255 611 644 105 Liabilities: Customer advances 20,395 22,896 (2,501 ) (11 ) Deferred revenue – current 78,332 75,515 2,817 4 Deferred revenue – non-current 26,639 20,976 5,663 27 (1) Included in accounts receivable on consolidated balance sheets (2) Included in prepaid expenses and other current assets on consolidated balance sheets (3) Included in other assets on consolidated balance sheets During fiscal 2019, contract assets changed primarily due to the contractual timing of billings occurring after the revenues were recognized and payment terms exceeding 12 months. Contract liabilities changed due to timing of system sales for which the warranty has not yet started and was deferred. Changes in deferred revenue from contracts with customers are as follows: Year Ended (Dollars in thousands) June 30, 2019 Balance at beginning of period $ 96,491 New billings 427,264 Recognition of deferred revenue from opening balance (78,614 ) Recognition of new additions (340,170 ) Balance at end of period $ 104,971 Remaining Performance Obligations Remaining performance obligations represent deferred revenue from open contracts for which performance has already started and the transaction price from signed contracts for which performance has not yet started. Service contracts in general are considered month-to-month contracts, and the Company has elected the practical expedient available in the guidance related to ASC 606, to not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. As of June 30, 2019, total remaining performance obligations amounted to $863.8 million. Of this total amount, $84.5 million related to long-term warranty and service, which is expected to be recognized over the remaining warranty period for systems that have been delivered. For systems that have been delivered but not yet installed, management estimates the timing of installation since warranty starts upon installation. The following table represents the Company's remaining performance obligations related to long-term warranty and service as of June 30, 2019 and the estimated revenue expected to be recognized: Fiscal years of revenue recognition (Dollars in thousands) 2020 2021 2022 Thereafter Long-term warranty and service $ 32,853 $ 27,361 $ 13,333 $ 10,964 For the remaining $779.3 million of performance obligations, the Company estimates 22% to 31% will be recognized in the next 12 months, and the remaining 69% to 78% will be recognized in the 30 months 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. Based on historical cancellation, about 17% to 27% of the Company’s contracts may never result in revenue due to cancellation. 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. Capitalized Contract Costs The Company capitalizes and amortizes the incremental costs of obtaining a contract, primarily related to certain bonuses and sales commissions. The capitalized bonuses and sales commissions are amortized over a period of five years commencing upon the initial transfer of control of the system to the customer. The pattern of amortization is commensurate with the pattern of transfer of control of the performance obligations to the customer. The opening balance of capitalized costs to obtain a contract was $5.9 million as of July 1, 2018. As of June 30, 2019, the balance of capitalized costs to obtain a contract was $8.4 million. 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 consolidated balance sheets. The Company incurred a $0.5 million impairment loss for the periods presented. During the year ended June 30, 2019, the Company recognized $2.2 million in expense related to the amortization of the capitalized contract costs. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Jun. 30, 2019 | |
Supplemental Financial Information Disclosure [Abstract] | |
Supplemental Financial Information | Note 4. Supplemental Financial Information Consolidated Balance Sheet Accounts receivable, net Accounts receivable, net consisted of the following (in thousands): June 30, 2019 June 30, 2018 Accounts receivable $ 107,230 $ 63,027 Unbilled fees and services 5,260 3,218 112,490 66,245 Less: Allowance for doubtful accounts (605 ) (251 ) Accounts receivable, net $ 111,885 $ 65,994 The Company received payment or had credits of $0.2 million and added $0.6 million to the allowance for doubtful accounts in fiscal 2019. The Company received payment or had credits of $0.2 million, added $0.1 million and wrote off $0.1 million from the allowance for doubtful accounts in fiscal 2018. Financing receivables A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset in the Company’s balance sheet. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year and sales‑type leases, totaled $4.3 million and $6.9 million at June 30, 2019 and 2018, respectively, and are included in Other Assets in the consolidated balance sheets. The $4.3 million in financing receivables at June 30, 2019 related to contractual maturities of more than one year. Of the $6.9 million in financing receivables at June 30, 2018, $1.0 million related to sales‑type leases with customers while the remaining $5.9 million related to contractual maturities of more than one year. The Company evaluates the credit quality of an obligor at contract inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new customers and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the 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 performed an assessment of the allowance for credit losses related to its financing receivables as of June 30, 2019. Based upon such assessment, the Company recorded adjustments of $3.6 million and less than $0.1 million to the allowance for credit losses related to such financing receivables as of June 30, 2019 and as of June 30, 2018, respectively. A summary of the Company’s financing receivables is presented as follows (in thousands): June 30, 2019 Lease Receivables Financed Service Contracts and Other Total Gross $ — $ 13,288 $ 13,288 Residual value — — — Unearned income — (1,535 ) (1,535 ) Allowance for credit loss — (3,582 ) (3,582 ) Total, net $ — $ 8,171 $ 8,171 Reported as: Current $ — $ 3,902 $ 3,902 Non-current — 4,269 4,269 Total, net $ — $ 8,171 $ 8,171 June 30, 2018 Lease Receivables Financed Service Contracts and Other Total Gross $ 1,588 $ 8,009 $ 9,597 Residual value — — — Unearned income (137 ) — (137 ) Allowance for credit loss — — — Total, net $ 1,451 $ 8,009 $ 9,460 Reported as: Current $ 432 $ 2,139 $ 2,571 Non-current 1,019 5,870 6,889 Total, net $ 1,451 $ 8,009 $ 9,460 Actual cash collections may differ from the contracted maturities due to early customer buyouts, refinancing, or defaults. There are no future minimum lease payments to be received as of June 30, 2019. Inventories Inventories consisted of the following (in thousands): June 30, 2019 June 30, 2018 Raw materials $ 40,966 $ 37,144 Work-in-process 18,152 17,703 Finished goods 61,705 53,693 Inventories $ 120,823 $ 108,540 Property and Equipment, net Property and equipment consisted of the following (in thousands): June 30, 2019 June 30, 2018 Furniture and fixtures $ 2,728 $ 2,927 Computer and office equipment 11,183 11,315 Software 11,236 11,307 Leasehold improvements 25,741 25,423 Machinery and equipment 45,472 47,065 Construction in progress 1,658 5,629 98,018 103,666 Less: Accumulated depreciation (80,896 ) (79,968 ) Property and equipment, net $ 17,122 $ 23,698 Depreciation and amortization expense related to property and equipment for the years ended June 30, 2019, 2018 and 2017 was $8.1 million, $9.6 million and $10.3 million, respectively. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive income (loss) by component (in thousands): Foreign Currency Items Unrealized Gains and (Losses) on Available-for- Sale Securities Change in Defined Pension Benefit Obligation Total Balance at June 30, 2017 $ 1,154 $ (89 ) $ (1,117 ) $ (52 ) Other comprehensive income 83 89 973 1,145 Balance at June 30, 2018 $ 1,237 $ — $ (144 ) $ 1,093 Other comprehensive (loss) (247 ) — (856 ) (1,103 ) Balance at June 30, 2019 $ 990 $ — $ (1,000 ) $ (10 ) Consolidated Statements of Operations Other expense, net consisted of the following (in thousands): Years Ended June 30, (in thousands) 2019 2018 2017 Interest expense $ (15,084 ) $ (14,959 ) (17,302 ) Foreign currency transaction loss (665 ) (986 ) (1,267 ) Other (expense) income 822 (3,279 ) (149 ) Total other expense, net $ (14,927 ) $ (19,224 ) $ (18,718 ) |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets | Note 5. Goodwill and Purchased Intangible Assets Goodwill Goodwill as of June 30, 2019 and 2018 and changes in the carrying amount of goodwill for the respective periods are as follows (in thousands): As of June 30, 2019 2018 Balance at the beginning of the period $ 57,855 $ 57,812 Currency translation (85 ) 43 Balance at the end of the period $ 57,770 $ 57,855 In fiscal 2019, the Company performed its annual goodwill impairment test 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 intangible assets associated with purchased patent license are as follows (in thousands): As of June 30, 2019 As of June 30, 2018 Useful Lives Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount (in years) Patent license 7 $ 1,000 $ (321 ) $ 679 $ 1,000 $ (179 ) $ 821 During fiscal 2017, the Company purchased a patent license with a useful life of seven years. The Company did not identify any triggering events that would indicate potential impairment of its definite‑lived intangible and long‑lived assets as of June 30, 2019 and 2018. Amortization expense related to purchased intangible assets was $0.1 million, $0.1 million and $7.7 million for the years ended June 30, 2019, 2018 and 2017, respectively. The estimated future amortization expense of purchased intangible assets as of June 30, 2019 is as follows (in thousands): Year Ending June 30, Amount 2020 143 2021 143 2022 143 2023 143 2024 107 $ 679 |
Investments
Investments | 12 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 6. Investments The Company considers all highly liquid investments held at major banks, certificates of deposit and other securities with original maturities of three months or less to be cash equivalents. The Company classifies all of its investments as available-for-sale at the time of purchase because management intends for these investments to be available for current operations and includes these investments on its balance sheet as short-term investments. Investments with original maturities longer than three months include commercial paper, U.S. agency securities, non-U.S. government securities and investment-grade corporate debt securities. Investments classified as available-for-sale are recorded at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses are recorded based on specific identification of each security’s cost basis. In January 2018, the Company sold all of its available-for-sale investments for proceeds of $23.9 million and realized an insignificant loss on the sale of its investments. The Company reviews its investments quarterly to identify and evaluate investments that have an indication of possible impairment. Gross realized gains and losses were insignificant for the year ended June 30, 2018 and the year ended June 30, 2017. Upon the sale of its available for sale securities, the Company reclassified $77 thousand from other comprehensive income to Other expense, net. The Company had an investment in a technology company, which had historically been accounted for using the cost method and recorded in Other assets. Subsequent to such company’s initial public offering in October 2017, the Company owned approximately 143,000 shares of such company’s common stock. Considering the liquidity in these shares at the time, the Company reclassified its investment from Other assets to short-term investments. In the fourth quarter of fiscal 2018, the Company sold all of its shares for a proceed of $0.4 million and recognized a loss on the sale of $0.1 million. The Company had no available-for-sale securities at June 30, 2019 or 2018. The Company held zero positions as of June 30, 2018 that were in an unrealized loss position. Gross realized gains and gross realized losses were insignificant for the years ended June 30, 2018 and 2017. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 7. 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 include the Euro, Japanese Yen, Swiss Franc, and U.S. Dollar. 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 Company intends to exchange foreign currencies for U.S. Dollars at maturity. There were no outstanding foreign currency forward contracts at the end of fiscal years 2019 and 2018. The following table shows the effect of forward contracts not designated as hedging instruments and foreign currency transactions gains and losses, which were included in “Other expense, net” on the consolidated statements of operations in fiscal years (in thousands): Years ended June 30, 2019 2018 2017 Foreign currency exchange gain (loss) on foreign contracts $ 17 $ (2,461 ) $ (1,322 ) Foreign currency transactions gain (loss) (682 ) 1,475 55 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels of inputs that may be used to measure fair value, as follows: Level 1— Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2— Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets in non-active markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by other observable market data. Level 3— Unobservable inputs that cannot be corroborated by observable market data and require the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The Company had cash of $76.8 million and $83.1 million at June 30, 2019 and June 30, 2018, respectively. Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis The Company’s debt is measured on a non-recurring basis using Level 2 inputs based upon observable inputs of the Company’s underlying stock price and the time value of the conversion option, since an observable quoted price of the 3.75% Convertible Notes (collectively the “Notes”) are not readily available. The Revolving Credit Facility and the Term Loan (collectively, the “Credit Facilities”) are valued at market interest rates, which it considers to be a level 2 fair value measurement. The carrying value of these financial instruments approximate its estimated fair value as there have not been significant changes in the Company’s credit quality or capital markets that would suggest changes in interest rates since these Credit Facilities were amended in May 2019. The following table summarizes the carrying value and estimated fair value of Credit Facilities and Notes (in thousands): June 30, 2019 June 30, 2018 Carrying Value Fair Value Carrying Value Fair Value 3.75% Convertible Notes $ 72,730 $ 84,227 $ 69,382 $ 86,666 Term Loan Facility 58,849 58,849 38,010 38,010 Revolving Credit Facility 28,265 28,265 23,685 23,685 Total $ 159,844 $ 171,341 $ 131,077 $ 148,361 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Operating Lease and Long‑term Debt Commitments The Company leases office and manufacturing space under non‑cancelable operating leases with various expiration dates through June 2025. Rent expense was $8.3 million, $9.2 million and $8.6 million for the years ended June 30, 2019, 2018 and 2017, respectively. The terms of some of the facility leases provide for rental payments on a graduated scale. For these leases, the Company recognizes rent expense on a straight‑line basis over the lease period, and has accrued for rent expense incurred but not paid. The Company is also required to make semi‑annual interest payments on the Existing 3.75% Convertible Notes, and monthly interest payments on the Revolving Credit Facility and Term Loan. See Note 10, Debt Future minimum lease payments under non‑cancelable operating lease agreements and long‑term principal and interest on the 3.75% Convertible Notes and Credit Facilities as of June 30, 2019 are as follows (in thousands): Year Ending June 30, Operating Leases Long-Term Debt (1) 2020 $ 8,675 $ 9,807 2021 7,352 11,487 2022 7,159 29,086 2023 7,161 109,414 2024 5,118 51,672 Thereafter 2,610 — Total $ 38,075 $ 211,466 (1) These amounts represent principal and interest cash payments over the contractual life of the debt obligations, including anticipated interest payments that are not recorded on the Company’s consolidated balance sheet. Any conversion, premium, redemption or purchase of the 3.75% Convertible Notes would impact cash payments noted in the preceding table. Purchase Commitments The Company’s purchase commitments and obligations include all open purchase orders and contractual obligations in the ordinary course of business, including commitments with contract manufacturers and suppliers, for which the Company has not received the goods or services and acquisition and licensing of intellectual property. A majority of these purchase obligations are due within a year. Although open purchase orders are considered enforceable and legally binding, the terms generally allows the Company the option to cancel, reschedule, and adjust its requirements based on the Company’s business needs prior to the delivery of goods or performance of services, and hence, have not been included in the table above. Indemnities, Commitments and Guarantees 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 June 30, 2018. In January 2019, the Company, through its wholly-owned subsidiary, 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. The Company, through Accuray Asia, expects to make an initial capital contribution to the JV in stages, to be completed by December 31, 2019 in the form of in-kind contributions consisting of components for two full radiation oncology systems from our inventory in exchange for a 49% equity interest in the joint venture. Any remaining amount of capital contributions due, if not satisfied by such in-kind contributions, will be made by us, through Accuray Asia, in accordance with the schedule set by the board of directors of the JV. Royalty The Company has an exclusive license agreement with the Wisconsin Alumni Research Foundation (WARF), to make, use, sell and otherwise distribute products under certain of WARF’s patents anywhere in the world. The Company is required to pay WARF a royalty for each TomoTherapy System sold that includes the licensed technology. The license agreement expires upon expiration of the patents and may be terminated earlier if the Company so elects. WARF has the right to terminate the license agreement if the Company does not meet the minimum royalty obligation of $0.3 million per year, or if the Company commits any breach of the license agreement’s covenants. The Company recorded royalty costs of $0.6 million, $0.5 million and $0.5 million for the years ended June 30, 2019, 2018 and 2017, respectively, which were recorded in cost of revenue or deferred cost of revenue. The Company had accrued liabilities of approximately $0.2 million and $0.2 million at June 30, 2019 and 2018, respectively, related to this agreement. Software License Indemnity Under the terms of the Company’s software license agreements with its customers, the Company agrees that in the event the software sold infringes upon any patent, copyright, trademark, or any other proprietary right of a third‑party, it will indemnify its customer licensees against any loss, expense, or liability from any damages that may be awarded against 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 June 30, 2019. Litigation From time to time, the Company is involved in legal proceedings arising in the ordinary course of its business. The Company records a provision for a loss when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Currently, management believes the Company does not have any probable and reasonably estimable losses related to any current legal proceedings and claims. Although occasional adverse decisions or settlements may occur, management does not believe that an adverse determination with respect to any of these claims would individually or in the aggregate materially and adversely affect the Company’s financial condition or operating results. Litigation is inherently unpredictable and is subject to significant uncertainties, some of which are beyond the Company’s control. Should any of these estimates and assumptions change or prove to have been incorrect, the Company could incur significant charges related to legal matters that could have a material impact on its results of operations, financial position and cash flows. |
Debt
Debt | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 10. Debt 3.50% Convertible Senior Notes due February 2018 In February 2013, the Company issued 3.50% Convertible Senior Notes due 2018 (the “3.50% Convertible Notes”) under an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Holders of the 3.50% Convertible Notes were entitled to convert their notes at any time until the close of the business day immediately preceding the maturity date of February 1, 2018. The 3.50% Convertible Notes were convertible into common stock of the Company at an initial conversion rate equal to 187.6877 shares of common stock per $1,000 principal amount, which is equivalent to a conversion price of approximately $5.33 per share of common stock, subject to adjustment. On January 30, 2018, the Company entered into exchange agreements (the “Exchange Agreements”) with the holders of the 3.50% Convertible Notes, which amended the original settlement terms of the notes and allowed the Company to settle the then outstanding $13.0 million principal balance of the 3.50% Convertible Notes and accrued interest in cash at maturity, and any excess equity value over the original conversion price in shares. In exchange for the agreement to settle in cash, the Company agreed to pay $0.3 million exchange premium. The $0.3 million exchange premium was accounted for as debt extinguishment and included in Other expense, net. On February 1, 2018, pursuant to the Exchange Agreements, the Company paid $13.2 million in cash to settle outstanding principal and accrued interest, and on February 7, 2018 issued 253,000 shares of the Company’s common stock to the 3.50% Convertible Notes holders. The total number of shares was determined using a three-day volume weighted averaging price period and based on a prescribed formula in the Exchange Agreements. As a result, the 3.50% Convertible Notes were repaid in full and were not outstanding at June 30, 2018. 3.50% Series A Convertible Senior Notes due February 2018 In April 2014, the Company issued 3.50% Series A Convertible Senior Notes due 2018 (the “3.50% Series A Convertible Notes”) under an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. Holders of the 3.50% Series A Convertible Notes were entitled to convert their notes at any time on or after November 1, 2017 until the close of business on the business day immediately preceding the maturity date of February 1, 2018. The initial conversion rate is 187.6877 shares of the Company’s common stock per $1,000 principal amount, which represents an initial conversion price of approximately $5.33 per share of the Company’s common stock. Pursuant to the original settlement terms, the Company made an irrevocable net share settlement election and paid cash for principal plus accrued interest upon maturity to holders who did not elect to convert. Prior to maturity, one note holder elected to convert their notes and receive a combination of cash and shares at settlement. The number of shares was determined based on a prescribed formula in the indenture. On February 1, 2018, the Company paid an aggregate amount of $27.0 million in cash and delivered 1,252 shares of its common stock to settle the 3.50% Series A Convertible Notes. As a result, the 3.50% Series A Convertible Notes were repaid in full and were not outstanding at June 30, 2018. 3.75% Convertible Senior Notes due July 2022 In August 2017, the Company issued $85.0 million aggregate principal amount of its 3.75% Convertible Senior Notes due 2022 (the “3.75% Convertible Notes”) under an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. $53.0 million aggregate principal amount of the 3.75% Convertible Notes were issued to certain holders of the Company’s outstanding 3.50% Convertible Notes and 3.50% Series A Convertible Notes (together, the “Existing Notes”) in exchange for approximately $47.0 million aggregate principal amount of the Existing Notes (the “Exchange”) and $32.0 million aggregate principal amount of the 3.75% Convertible Notes were issued to certain other qualified new investors for cash. The net proceeds of the cash issuance were used to repurchase approximately $28.0 million of Existing Notes (the “Repurchase”). Holders of the 3.75% Convertible Notes may convert their notes at any time on or after April 15, 2022 until the close of the business day immediately preceding the maturity date. Prior to April 15, 2022, holders of the 3.75% Convertible Notes may convert their notes only under certain circumstances. Upon conversion, the Company will have the right to pay cash, or deliver shares of common stock of the Company or a combination thereof, at the Company’s election. The initial conversion rate is 174.8252 shares of the Company’s common stock per $1,000 principal amount (which represents an initial conversion price of approximately $5.72 per share of the Company’s common stock). The conversion rate, and thus the conversion price, is subject to adjustment as further described below. Holders of the 3.75% Convertible Notes who convert their notes in connection with a “make-whole fundamental change,” as defined in the indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, in the event of a “fundamental change,” as defined in the indenture, holders of the 3.75% Convertible Notes may require the Company to purchase all or a portion of their note at a fundamental change repurchase price equal to 100% of the principal amount of the 3.75% Convertible Notes, plus accrued and unpaid interest, if any, to, but not including, the fundamental change repurchase date. As of June 30, 2019, approximately $85.0 million aggregate principal amount was outstanding. Revolving Credit Facility On June 14, 2017, the Company entered into a credit and security agreement with a lender (the “Credit Agreement”). The Credit Agreement provides the Company with a revolving credit facility in the initial amount of $52.0 million (the “Revolving Credit Facility”). Availability for borrowings under the Revolving Credit Facility is subject to a borrowing base that is calculated as a function of the value of the Company’s eligible accounts receivable and eligible inventory, and the Company is required to maintain a minimum drawn balance of at least 30% of such availability. Interest on the borrowings under the Revolving Credit Facility is payable monthly in arrears at an annual interest rate of reserve-adjusted, 90-day LIBOR plus 4.50% and had initial maturity date of June 14, 2021. In December 2017, concurrently with the Term Loan Agreement (as defined below), the Company entered into an amendment to the Credit Agreement (the “Amendment” and, collectively with the Credit Agreement, the “Amended Credit Agreement”). The Amendment reduced the maximum borrowings under the Revolving Credit Facility to $32.0 million and extended the maturity date of the Revolving Credit Facility to December 15, 2022. In July 2018, the Company amended both the Amended Credit Agreement and the Term Loan Agreement. The amendments provide for, among other things, adjustments to the Fixed Charge Coverage Ratio such that in the case of the Defined Periods (as defined in the Amended Credit Agreement and the Term Loan Agreement) for (i) the fiscal quarter ending June 30, 2018 as well as (ii) the fiscal quarter ending March 31, 2019, the Fixed Charge Coverage Ratio is not less than 0.75 to 1.00 and 0.50 to 1.00, respectively. Other significant terms remain unchanged. In December 2018, the Company amended the Amended Credit Agreement (“Amendment 3”) which, among other things, updated the calculation of the deferred revolving loan origination fee such that it is based on the amount of time elapsed from the effective date of Amendment 3. Other significant terms remain unchanged. In May 2019, the Company amended the Amended Credit Agreement to, among other things, decrease the interest rate from 90-day LIBOR plus 4.50% to 90-day LIBOR plus 3.50% and extend the maturity date to May 30, 2024 and update the calculation of the deferred revolving loan origination fee such that it is based on the amount of time elapsed from the effective date of the May 2019 amendment. The Company accounted for the amendment as a modification of existing debt and deferred an insignificant amount of offering costs on the consolidated balance sheet as of June 30, 2019. As of June 30, 2019, approximately $28.3 million of aggregate principal amount was outstanding under the Revolving Credit Facility, and $1.1 million of unamortized debt costs associated with the Revolving Credit Facility was included in other assets on the condensed consolidated balance sheet. Term Loan In December 2017, the Company entered into a credit and security agreement with a lender (the “Term Loan Agreement”). The Term Loan Agreement provides for an initial term loan of $40.0 million with an additional tranche of $20.0 million undrawn and available through December 31, 2018, if specified conditions are met (the “Term Loan”). In connection with the Amendment, the Company used a portion of the net proceeds from the initial advance to repay a portion of the outstanding borrowings under the Revolving Credit Facility. Interest on the Term Loan is payable monthly in arrears at an annual interest rate of 6.75% plus 90-day LIBOR. The Term Loan Agreement matures December 15, 2022 and, if prepaid, has fees equal to 3%, 2%, and 1% of the prepayment amount if such termination occurs within the first year, the second year, and the third year of funding, respectively. The term of the loan is 60 months with interest only for the first 24 months followed by straight-line amortization of principal for the remaining months. In addition, the Company will pay an annual administrative fee of 0.25% and a final payment of 4.0% of the Term Loan amount. In December 2018, the Company drew an additional $5.0 million under the Term Loan Agreement and in connection therewith entered into the second amendment to the Term Loan Agreement (“Amendment 2”) which, among other things, (i) extended the term loan tranche 2 commitment termination date for the remaining $15.0 million unfunded commitment from December 31, 2018 to June 30, 2019; (ii) provided that term loan tranche 2 may be drawn in two separate advances; and (iii) updated the calculation of the prepayment fee such that it is based on the amount of time elapsed from the effective date of Amendment 2. In May 2019, the Company amended the Term Loan Agreement to, among other things, increase the loan tranch 2 commitment by $0.5 million, extend the maturity date to May 30, 2024, decrease the annual interest rate from 6.75% plus 90-day LIBOR to 5.50% plus 90-day LIBOR, and modify the calculation prepayment fee such that it is based on the amount of time elapsed from the effective date of the May 2019 amendment. The Company accounted for the amendment as a modification of existing debt and recorded approximately $1.5 million of debt discount costs associated with the amendment against long-term debt on the consolidated balance sheets as of June 30, 2019. As of June 30, 2019, approximately $63.0 million aggregate principal amount was outstanding. The following table presents the carrying value of all Credit Facilities and 3.75% Convertible Notes (in thousands): Revolving Credit Facility 3.75% Convertible Notes Term Loan Facility Total Carrying amount of equity conversion component $ — $ 14,650 $ — $ 14,650 Principal amount $ 28,265 $ 85,000 $ 63,031 $ 176,296 Unamortized debt costs — (2,687 ) (1,231 ) (3,918 ) Unamortized debt discount — (9,583 ) (2,951 ) (12,534 ) Net carrying amount $ 28,265 $ 72,730 $ 58,849 $ 159,844 A summary of interest expense on the Credit Facilities and Notes is as follows (in thousands): Year ended June 30, 2019 2018 2017 Interest expense related to contractual interest coupon $ 10,185 $ 9,953 $ 9,465 Interest expense related to amortization of debt discount 3,370 3,377 4,052 Interest expense related to amortization of debt issuance costs 1,529 1,629 3,785 Total $ 15,084 $ 14,959 $ 17,302 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 30, 2019 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | Note 11. Shareholders’ Equity At June 30, 2019, the Company had 8.9 million shares of common stock reserved for issuance under the stock incentive plans and the employee stock purchase plan. |
Stock Incentive Plan and Employ
Stock Incentive Plan and Employee Stock Purchase Plan | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plan and Employee Stock Purchase Plan | Note 12. Stock Incentive Plan and Employee Stock Purchase Plan As of June 30, 2019, the Company had three outstanding stock incentive plans: the 2016 Equity Incentive Plan, or the 2016 Plan; the 2007 Incentive Award Plan, or the 2007 Plan; and the 1998 Stock Incentive Plan, or the 1998 Plan. The 2016 Plan permits the granting of stock options, stock appreciation rights, restricted stock awards, performance shares, performance units, and restricted stock units, or RSUs. The vesting of RSUs granted under the 2016 Plan are primarily service‑based (over the requisite service period) while the vesting of performance units granted under the 2016 Plan are primarily performance‑based, or PSUs, or market‑based, or MSUs. Only employees of the Company are eligible to receive incentive stock options. Non‑employees may be granted non‑qualified stock options. Stock options granted under the 2016 Plan have an exercise price of at least 100% of the fair market value of the underlying stock on the grant date. The stock options have 10 year contractual terms and generally become exercisable for 25% of the option shares one year from the date of grant and then ratably over the following 36 months. Service‑based RSUs granted under the equity plans generally vest 25% of the share units covered by the grant on each of the first through fourth anniversaries of the date of the grant, subject to the continued service of the grantee through each such date. However, certain of the outstanding RSUs under our equity plans vest 50% upon the first anniversary year of the grant date, and 50% upon the second anniversary year of the grant date. The Board of Directors has the discretion to use different vesting schedules. As of June 30, 2019, the 2007 Plan and the 1998 Plan each continued to remain in effect; however, the Company can no longer grant equity awards under such plans. The following table summarizes the share‑based compensation charges included in the Company’s consolidated statements of operations and comprehensive loss (in thousands): Years ended June 30, 2019 2018 2017 Cost of revenue $ 1,666 $ 1,866 $ 1,991 Research and development 1,773 2,312 2,490 Selling and marketing 2,081 1,390 2,827 General and administrative 5,081 6,721 6,321 Total $ 10,601 $ 12,289 $ 13,629 The amount of capitalized share‑based compensation costs as components of inventory was insignificant at June 30, 2019, 2018 and 2017. Stock Options The fair value of each option is estimated at the date of grant using the Black‑Scholes option pricing formula with the following assumptions: Years Ended June 30, 2019 2018 2017 Risk–free interest rate 1.94% - 2.81% 1.98 % 1.76 % Dividend yield — % — % — % Expected term 5.31 - 5.51 5.25 5.12 Expected volatility 47.0% - 47.1% 43.9 % 46.4 % Determining Fair Value of Stock Options The fair value of each grant of stock options was determined by the Company using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment to determine. Valuation and Amortization Method —The Company estimates the fair value of its stock options using the Black‑Scholes option‑pricing model. This fair value is then amortized over the requisite service periods of the awards. Expected Term —The Company estimates the expected term of stock option by taking the average of the vesting term and the contractual term of the option, as illustrated by the simplified method. Expected Volatility —The expected volatility is derived from the Company’s historical stock volatility over a period approximately equal to the expected term of the options. Risk‑Free Interest Rate —The risk‑free interest rate is based on the U.S. Treasury yield curve on the date of grant. Dividend Yield —The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. A summary of option activity under the Company’s incentive plan during the fiscal years is presented below (in thousands except per share and term amounts): Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Balance at June 30, 2016 2,377 8.00 3.97 $ 452 Options granted 760 5.05 Options exercised (113 ) 5.18 Options forfeited/expired (561 ) 13.38 Balance at June 30, 2017 2,463 6.05 5.42 $ 191 Options granted 795 4.12 Options exercised (109 ) 4.02 Options forfeited/expired (465 ) 7.76 Balance at June 30, 2018 2,684 5.26 6.16 $ 60 Options granted 3,359 4.09 Options exercised (115 ) 4.26 Options forfeited/expired (708 ) 5.51 Balance at June 30, 2019 5,220 4.50 7.97 $ 11 Vested or Expected to vest at June 30, 2019 4,427 4.56 Exercisable at June 30, 2019 1,383 $ 5.50 The aggregate intrinsic value in the table above represents the total pre‑tax intrinsic value (the difference between the fair value of the Company’s common stock on June 28, 2019 of $3.87 and the exercise price of the options that would have been received by option holders if all options exercisable had been exercised on June 30, 2019. The total intrinsic value of options exercised in the years ended June 30, 2019, 2018 and 2017 was approximately $0.1 million, $0.1 million and $0.1 million, respectively. During the years ended June 30, 2019, 2018 and 2017, the Company recognized $1.4 million, $0.6 million and $0.5 million, respectively, of share‑based compensation expense for stock options granted to employees. Tax benefits from tax deductions for exercised options and disqualifying dispositions in excess of the deferred tax asset attributable to stock compensation costs for such options are credited to additional paid‑in capital. Upon adoption of ASU 2016-09 on July 1, 2017, the benefit are recognized against income taxes. Realized excess tax benefits related to stock options exercises was zero for each of the years ended June 30, 2019, 2018 and 2017. As of June 30, 2019, there was approximately $6.7 million of unrecognized compensation cost net of estimated forfeitures, related to unvested stock options, which is expected to be recognized over a weighted average period of 3.25 years. The following table summarizes information about outstanding and exercisable options at June 30, 2019 (in thousands, except years and exercise price): Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $3.71 – 4.00 584,809 8.27 $ 3.97 235,615 $ 4.00 $4.01 – 4.01 77,796 2.27 4.01 77,796 4.01 $4.10 – 4.10 3,291,100 9.42 4.10 — — $4.23 – 5.38 529,375 7.41 5.05 332,192 5.05 $5.61 – 6.58 529,752 2.08 6.09 529,752 6.09 $6.63 – 6.96 191,772 2.74 6.87 191,772 6.87 $7.06 – 7.06 4,800 2.75 7.06 4,800 7.06 $7.70 – 7.70 2,333 2.83 7.70 2,333 7.70 $8.01 – 8.01 2,250 2.00 8.01 2,250 8.01 $8.89 – 8.89 6,000 1.83 8.89 6,000 8.89 Total Outstanding 5,219,987 7.97 $ 4.50 1,382,510 $ 5.50 Restricted Stock The following table summarizes the activity of RSUs, PSUs and MSUs (in thousands, except fair value per share): Unvested Restricted Stock Restricted Stock Units Performance Stock Units Market Stock Units Total Number of Shares Underlying Stock Awards Weighted Average Grant Date Fair Value Per Share Unvested at June 30, 2016 4,204 — 1,162 5,366 6.48 Granted 1,622 10 708 2,340 5.03 Vested (1,534 ) — (176 ) (1,710 ) 4.99 Cancelled/Forfeited (408 ) — (361 ) (769 ) 5.86 Unvested at June 30, 2017 3,884 10 1,333 5,227 5.75 Granted 1,529 53 654 2,236 4.40 Vested (1,167 ) — — (1,167 ) 6.24 Cancelled/Forfeited (546 ) — (590 ) (1,136 ) 5.87 Unvested at June 30, 2018 3,700 63 1,397 5,160 5.03 Granted 1,386 — — 1,386 3.68 Vested (1,481 ) (10 ) — (1,491 ) 5.44 Cancelled/Forfeited (521 ) (53 ) (756 ) (1,330 ) 5.10 Unvested at June 30, 2019 3,084 — 641 3,725 $ 4.34 As of June 30, 2019, there was approximately $10.1 million of unrecognized compensation cost, net of estimated forfeitures, related to restricted stock, which is expected to be recognized over a weighted average period of 1.65 years. Restricted Stock Units The Company recognized $7.2 million, $7.8 million and $9.5 million of share‑based compensation expense, net of estimated forfeitures, related to RSUs during the years ended June 30, 2019, 2018 and 2017. The weighted average grant date fair value per share of RSUs was $3.68, $4.57 and $5.03 for the years ended June 30, 2019, 2018 and 2017, respectively. The aggregate fair market value of RSUs that vested during the year ended June 30, 2019 was $6.2 million. Performance Stock Units The Compensation Committee approved the grant of zero, 53,000 and 10,000 PSUs to select employees of the Company in the years ended June 30, 2019, 2018 and 2017, respectively. Of these PSUs, 10,000, zero and zero vested in the years ended June 30, 2019, 2018 and 2017, respectively, due to the achievement of the requisite performance targets while 53,000 were cancelled in the year ended June 30, 2019. No PSUs were cancelled in the years ended June 30, 2018 and 2017. The Company recognized a benefit of $0.1 million and expense of $0.1 million, and zero, of share‑based compensation expense, net of estimated forfeitures, related to PSUs during the years ended June 30, 2019, 2018, and 2017, respectively. Market Stock Units The Compensation Committee approved the performance equity program, referred to as the market stock unit program, or MSU program, in October 2012. The Company’s MSU Program uses the Russell 2000 index as a performance benchmark and requires that the Company’s total stockholder return match or exceed that of the Russell 2000. Based on a sliding scale of how much the Company’s total stockholder return outperforms the Russell 2000 benchmark, the participating executives can earn up to a maximum of 150% of the target number of shares over two measurement periods. The Company uses a Monte‑Carlo simulation to calculate the fair value of the award on the grant date. The Compensation Committee approved the grant of zero, 0.6 million and 0.7 million MSUs to select employees of the Company in the years ended June 30, 2019, 2018 and 2017, respectively. Of these MSUs, zero, zero and 0.2 million vested in the years ending June 30, 2019, 2018 and 2017, respectively, due to the Company’s total stockholder return performance against the Russell 2000 index while 0.8 million, 0.6 million and 0.4 million MSUs were cancelled in the years ended June 30, 2019, 2018 and 2017, respectively. The Company recognized $1.0 million, $2.6 million and $2.5 million of share‑based compensation expense, net of estimated forfeitures, related to MSUs during the years ended June 30, 2019, 2018 and 2017, respectively. There were no MSUs granted during the year ended June 30, 2019. The weighted average grant date fair value per share of MSUs was $4.11, and $5.20 for the years ended June 30, 2018 and 2017, respectively. As of June 30, 2019, there was approximately $1.0 million of unrecognized compensation cost, net of estimated forfeitures, related to MSUs. Employee Stock Purchase Plan Under the Company’s Amended and Restated 2007 Employee Stock Purchase Plan, or ESPP, qualified employees are permitted to purchase the Company’s common stock at 85% of the lower of the fair market value of the common stock on the commencement date of each offering period or the fair market value on the specified purchase date. The ESPP is deemed compensatory and compensation costs are accounted for under ASC 718, Stock Compensation The Company estimates the fair value of ESPP shares at the date of grant using the Black‑Scholes option pricing model. The weighted average assumptions were as follows: Years Ended June 30, 2019 2018 2017 Risk–free interest rate 2.11% - 2.72% 1.07% –2.28% 0.49% – 0.70% Dividend yield —% —% —% Expected term 0.5 - 1.0 0.5 – 1.0 0.5 – 1.0 Expected volatility 30.9% - 60.0% 31.3% – 51.1% 24.6% – 42.0% The risk‑free rate for the expected term of the ESPP option was based on the U.S. Treasury Constant Maturity rate for each offering period; expected volatility was based on the historical volatility of the Company’s common stock; and the expected term was based upon the offering period of the ESPP. For the years ended June 30, 2019, 2018 and 2017, the Company recognized $1.1 million, $1.2 million and $1.2 million, respectively, of compensation expense related to its ESPP. The Company issued 0.9 million and 0.9 million shares under the ESPP in fiscal 2019 and 2018, respectively, at a weighted average price per share of $3.31 and $3.62, respectively. As of June 30, 2019, total unrecognized compensation cost related to the ESPP plan was $0.6 million, which the Company expects to recognize over a weighted average period of 0.8 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes Loss before provision for income taxes on the accompanying statements of operations and comprehensive loss included the following components (in thousands): Years Ended June 30, 2019 2018 2017 Domestic $ (23,799 ) $ (30,747 ) $ (35,227 ) Foreign 9,455 7,726 6,686 Total worldwide $ (14,344 ) $ (23,021 ) $ (28,541 ) The provision for income taxes consisted of the following (in thousands): Years Ended June 30, 2019 2018 2017 Current: Federal $ — $ — $ — State 32 63 14 Foreign 2,140 785 1,292 Total current $ 2,172 $ 848 $ 1,306 Deferred: Federal — — — State — — — Foreign (86 ) 30 (268 ) Total deferred (86 ) 30 (268 ) Total provision for income taxes $ 2,086 $ 878 $ 1,038 Income tax payable was $1.6 million, $1.1 million and $1.2 million at June 30, 2019, 2018 and 2017, respectively. A reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes included in the accompanying consolidated statements of operations and comprehensive loss is as follows (in thousands): Years Ended June 30, 2019 2018 2017 U.S. federal taxes (benefit): At federal statutory rate $ (3,012 ) $ (6,446 ) $ (9,988 ) State tax, net of federal benefit 32 63 14 Share-based compensation expense 1,128 1,712 802 Debt extinguishment — 967 — Other non-deductible permanent items 486 702 771 R&D credits (877 ) (142 ) (359 ) Foreign taxes (38 ) (1,295 ) (1,355 ) Other 58 (228 ) 83 Transition Tax — 3,348 — Tax Cuts and Jobs Act — 54,072 — Global Intangible Low-Taxed Income 1,924 — — Change in valuation allowance 2,385 (51,875 ) 11,070 Total $ 2,086 $ 878 $ 1,038 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred tax assets were as follows (in thousands): June 30, 2019 2018 Deferred tax assets: Federal and state net operating losses $ 77,228 $ 77,870 Accrued expenses and reserves 7,497 6,290 Deferred revenue 2,897 2,985 R&D Credits 22,108 20,857 Share-based compensation expense 1,327 2,233 Capitalized research and development 3,343 3,988 Unicap 1,953 1,571 Fixed assets/intangibles 1,323 1,486 Section 163(j) interest 1,857 — Other 1,582 1,650 Total deferred tax assets 121,115 118,930 Deferred tax liabilities: Contract acquisition costs (1,146 ) — Section 481 adjustment — (239 ) Total deferred tax liabilities (1,146 ) (239 ) Valuation allowance (119,125 ) (117,674 ) Net deferred tax assets $ 844 $ 1,017 As of June 30, 2019, the Company had approximately $330.9 million and $131.6 million in federal and state net operating loss carryforwards, respectively. The federal and state carryforwards expire in varying amounts beginning in 2025 for federal and 2020 for state purposes. As of July 1, 2017, the Company adopted ASU 2016-09 and as a result recognized a stock compensation excess windfall that was converted into net operating losses deferred tax which did not materially affect the deferred tax balance. In addition, as of June 30, 2019, the Company had federal and state research and development tax credits of approximately $20.6 million and $20.1 million, respectively. If not utilized, the federal research credits will begin to expire in 2020, the California research credits have no expiration date, and the other state research credits will begin to expire in 2020. Under the Internal Revenue Code (“IRC”) Sections 382 and 383, annual use of our net operating loss and research tax credit carryforwards to offset taxable income may be limited based on cumulative changes in ownership. Although ownership changes have occurred in the past, the carryovers should be available for utilization by the Company before they expire, provided the Company generates sufficient future taxable income. There were no equity financings in the current fiscal year that would result in an ownership change under Section 382. The Company will continue to monitor the changes in equity that would affect the tax attributes as reported. Based on the available objective evidence and history of losses, the Company has established a 100% valuation allowance against the combined domestic net deferred tax assets of Accuray and TomoTherapy because of uncertainty surrounding the realization of such deferred tax assets. In December 2017, the Tax Cuts and Jobs Act of 2017 (Tax Act) was signed into law which significantly amends the Internal Revenue Code of 1986, among other things reduces the corporate tax rate from a top marginal rate of 35% to a flat rate of 21%, imposes a one-time tax on offshore earnings at reduced rates regardless of whether they are repatriated, limits the tax deduction for interest expense to 30% of adjusted tax earnings, eliminates net operating loss carrybacks, and allows for federal net operating losses (“NOL”) to be carried over indefinitely for NOL generated after December 31, 2017. As permitted by the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118 ("SAB 118"), the Company has completed its accounting analysis based on the guidance, interpretations, and data available as of June, 30, 2019. The Company has finalized its assessment of the transitional impacts of the Tax Act, which did not impact its tax expense for the fiscal year ended June 30, 2019. Any future legislative changes, as well as any other new or proposed Treasury regulations, which have yet to be issued, will continue to be assessed and evaluated. The Tax Act has a requirement that certain income earned by controlled foreign corporations (“CFCs”) must be included currently 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 has been absorbed by net operating losses. The Company has made a policy decision to record GILTI tax as a current-period expense when incurred. The Tax Act also enacted the Base Erosion and Anti-Abuse Tax (“BEAT”). The BEAT minimum tax under IRC Section 59A is applicable to the extent that the BEAT tax amount is greater than the regular corporate tax for a given year. This tax is applicable to companies with prior 3-year average annual gross receipts exceeding $500 million. The Company does not currently meet this threshold since its current average annual gross receipts is less than $500 million. The Company continues to permanently re-invest its $39.7 million undistributed earnings of its foreign subsidiaries outside the U.S. Future repatriation of the Company's foreign earnings are subject to income taxes. The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in thousands): Years Ended June 30, 2019 2018 2017 Balance at beginning of year $ 15,299 $ 15,819 $ 16,643 Tax positions related to current year: Additions 934 823 1,190 Tax positions related to prior years: Additions 580 — 299 Reductions (533 ) (1,343 ) (2,313 ) Balance at end of year $ 16,280 $ 15,299 $ 15,819 The calculation of unrecognized tax benefits involves dealing with uncertainties in the application of complex global tax regulations. Management regularly assesses the Company’s tax positions with respect to legislative, bilateral tax treaty, regulatory and judicial developments in the countries in which the Company does business. The reduction in prior year’s tax positions primarily relates to lapses of applicable statutes of limitations. The Company anticipates that except for $0.01 million in uncertain tax positions that may be reduced related to the lapse of various statutes of limitation, there will be no material changes in uncertain tax positions in the next 12 months. As of June 30, 2019, the amount of gross unrecognized tax benefits was $16.3 million of which $14.4 million would not affect income tax expense before consideration of any valuation allowance. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of June 30, 2019 and 2018, the Company had approximately $0.06 million and $0.04 million, respectively, of accrued interest and penalties related to uncertain tax positions. The Company files income tax returns in the United States federal, various states and foreign jurisdictions. Due to tax attributes being carried forward and utilized during open years, the statute of limitations remains open for the U.S. federal jurisdiction and domestic states for tax years from 1999 and forward. The statutes of limitation with respect to the foreign jurisdictions where the Company files income tax returns vary from jurisdiction to jurisdiction and range from 3 to 10 years, and the material foreign jurisdictions are France, Switzerland, and Japan. The Company is also subject to examination of its income tax returns by the Internal Revenue Service (IRS) and other tax authorities, and in some cases the Company has received additional tax assessments which have not been significant. During fiscal year 2017, the Company received tax assessments from the Swiss Vaud Canton tax administration for the 2013, 2015 and 2016 tax periods. The Swiss total assessment of $0.1 million was settled in 2017. In fiscal 2018, the Company was audited by the French tax authorities for the fiscal periods 2015, 2016 and 2017 with no material assessment. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 14. Employee Benefit Plan The Company’s employee savings and retirement plan is qualified under Section 401(k) of the United States Internal Revenue Code. Employees may make voluntary, tax‑deferred contributions to the 401(k) Plan up to the statutorily prescribed annual limit. The Company makes discretionary matching contributions to the 401(k) Plan on behalf of employees up to the limit determined by the Board of Directors. The Company contributed $2.1 million, $2.2 million and $2.0 million to the 401(k) Plan during the years ended June 30, 2019, 2018 and 2017, respectively. |
Defined Benefit Pension Obligat
Defined Benefit Pension Obligation | 12 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Pension Obligation Disclosure [Abstract] | |
Defined Benefit Pension Obligation | Note 15. Defined Benefit Pension Obligation The Company has established a defined pension plan for its employees in its Switzerland subsidiary. The plan provides benefits to employees upon retirement, death or disability. The Company uses June 30 as the year‑end measurement date for this plan. The unfunded liability of $3.3 million was recognized in long‑term other liabilities in the accompanying balance sheet as of June 30, 2019. Actuarial loss of $0.7 million was recognized in other comprehensive loss in fiscal 2019. Obligations and Funded Status The following table presents the funded status of the defined benefit pension plan (in thousands): June 30, 2019 2018 Change in benefit obligation: Benefit obligation—beginning of fiscal year $ 14,254 $ 13,979 Service cost 1,865 1,887 Interest cost 128 97 Plan participants’ contributions 1,818 1,878 Plan amendment — (108 ) Actuarial (gain)/loss 742 (935 ) Foreign currency changes 250 (470 ) Benefit and expense payments (1,480 ) (2,074 ) Benefit obligation—end of fiscal year $ 17,577 $ 14,254 Change in plan assets: Plan assets—beginning of fiscal year $ 12,192 $ 11,293 Employer contributions 1,373 1,347 Actual return on plan assets 122 141 Plan participants’ contributions 1,818 1,878 Foreign currency changes 203 (393 ) Benefit and expense payments (1,480 ) (2,074 ) Plan assets—end of fiscal year $ 14,228 $ 12,192 Funded status $ (3,349 ) $ (2,062 ) Amounts recognized within the consolidated balance sheets: Assets $ — $ — Long-term other liabilities (3,349 ) (2,062 ) Net amount recognized $ (3,349 ) $ (2,062 ) The following table presents the amounts recognized in accumulated other comprehensive loss (before tax) for the defined benefit pension plan (in thousands): June 30, 2019 2018 Net loss $ (144 ) $ (1,117 ) Prior service cost (856 ) 973 Accumulated other comprehensive loss $ (1,000 ) $ (144 ) The following table presents the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for this defined benefit pension plan where accumulated benefit obligation exceeded the fair value of plan assets (in thousands): June 30, 2019 2018 Projected benefit obligation $ 17,577 $ 14,254 Accumulated benefit obligation $ 15,506 $ 12,143 Fair value of plan assets $ 14,228 $ 12,192 Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss The following table shows the components of the Company’s net periodic benefit costs and the other amounts recognized in other comprehensive loss, before tax, related to the Company’s defined benefit pension plan (in thousands): Year ended June 30, 2019 2018 2017 Net Periodic Benefit Costs: Service cost $ 1,865 $ 1,887 $ 1,996 Interest cost 128 97 49 Expected returns on assets (170 ) (156 ) (132 ) Amortization of prior service cost (55 ) (44 ) (46 ) Amortization of net loss — 11 114 Net periodic benefit costs 1,768 1,795 1,981 Other Amounts Recognized in Other Comprehensive Loss: Net (gain) loss arising during the year 801 (901 ) (881 ) Prior service cost — (105 ) 46 Amortization of prior service cost 55 44 — Amortization of net gain — (11 ) (114 ) Total recognized in other comprehensive gain (loss) 856 (973 ) (949 ) Total recognized in net periodic benefit costs and other comprehensive loss $ 2,624 $ 822 $ 1,032 The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during fiscal year 2020 related to the Company’s defined benefit pension plan are as follows (in thousands): 2020 Net loss $ 1,496 Prior service credit (436 ) Accumulated other comprehensive loss $ 1,060 Assumptions The assumptions used to determine net periodic benefit cost and to compute the expected long‑term return on assets for the Company’s defined benefit pension plan were as follows: Fiscal Years 2019 2018 2017 Net Periodic Benefit Costs: Discount rate 0.45 % 0.90 % 0.70 % Rate of compensation increase 1.50 % 1.50 % 2.00 % Expected long-term return on assets 1.20 % 1.40 % 1.40 % The assumptions used to measure the benefit obligation for the Company’s defined benefit pension plan were as follows: June 30, 2019 2018 Benefit Obligation: Discount rate 0.45 % 0.90 % Rate of compensation increase 1.50 % 1.50 % Estimated Contributions and Future Benefit Payments The Company made contributions of approximately $1.4 million, $1.3 million and $1.3 million to the defined benefit pension plan during fiscal years 2019, 2018 and 2017 respectively. The Company expects total contributions to the defined benefit pension plan for fiscal year 2020 will be approximately $1.5 million. Estimated future benefit payments to the defined benefit pension plan at June 30, 2019 were as follows (in thousands): Year Ending June 30, Future Benefits 2020 $ 1,164 2021 1,080 2022 1,017 2023 970 2024 1,443 Thereafter 4,633 Total $ 10,307 Plan Assets The plan assets are invested in insurance contracts with Swiss Life Foundation BVG (BVG) insurance company based in Zurich, Switzerland at the end of fiscal year 2019 and 2018 and are expected to be invested 100% in insurance contracts in fiscal 2020, which are reinsured by Swiss Life Ltd (SLL). SLL invests the vested pension capital and provides a 100% capital and interest rate guarantee as negotiated by the Company. In 2019, the Company negotiated a guaranteed interest rate of 1.00% for mandatory retirement savings and 0.25% for supplementary retirement savings. The pension plan is entitled to an annual bonus from the SLL comprising the effective savings, risk and cost results. The technical administration and management of the savings account are guaranteed by the SLL on behalf of BVG. Insurance benefits due are paid directly to the entitled persons by the SLL in the name of and for the account of the collective foundation. The Company has committed itself to pay the annual contributions and costs due under the pension fund regulations. The contract of affiliation between the Company and BVG can be terminated by either side. In the event of a termination, recipients of retirement and survivors’ benefits would remain with the collective foundation. The Company commits itself to transfer its active insured members and recipients of disability benefits to the new employee benefits institution, thus releasing BVG from all obligations. |
Segment Disclosure
Segment Disclosure | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Disclosure | Note 16. Segment Disclosure 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 areas. Revenues attributed to a country or region is based on the shipping addresses of the Company’s customers. The following summarizes revenue by geographic region (in thousands): Years ended June 30, 2019 2018 2017 Americas $ 135,683 $ 145,689 $ 151,442 Europe, Middle East, India and Africa 149,095 120,032 104,026 Asia Pacific 63,793 72,925 59,278 Japan 70,214 66,251 68,668 Total $ 418,785 $ 404,897 $ 383,414 Information regarding geographic areas in which the Company has long‑lived tangible assets is as follows (in thousands): June 30, 2019 June 30, 2018 Americas $ 13,853 $ 19,698 Europe, Middle East, India and Africa 575 569 Asia Pacific (excluding Japan and India) 1,419 1,635 Japan 1,275 1,796 Total $ 17,122 $ 23,698 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Jun. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | Note 17. Restructuring Charges In October 2018, the Company informed affected employees of a cost savings initiative designed to reduce operating costs through the elimination of approximately 5 percent of its global workforce. These restructuring charges of $1.5 million were recorded in cost of goods sold and operating expenses in the consolidated statements of operations, of which $1.0 million was paid during fiscal 2019 and $0.5 million is accrued in the consolidated balance sheet as of June 30, 2019. The Company incurred no restructuring charges for the years ended June 30, 2018 and 2017. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (unaudited) | Note 18. Quarterly Financial Data (unaudited) The following table provides the selected quarterly financial data for fiscal 2019 and 2018 (in thousands, except net income (loss) per share amounts: Quarters ended September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 Net revenue $ 95,829 $ 102,318 $ 103,221 $ 117,417 Gross profit $ 37,879 $ 38,380 $ 40,466 $ 45,926 Net loss $ (9,206 ) $ (4,640 ) $ (1,184 ) $ (1,400 ) Net loss per share—basic and diluted $ (0.11 ) $ (0.05 ) $ (0.01 ) $ (0.02 ) Shares used in basic and diluted per share calculation 86,479 87,237 87,962 88,202 Quarters ended September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 Net revenue $ 90,950 $ 100,329 $ 99,832 $ 113,786 Gross profit $ 38,106 $ 39,355 $ 36,249 $ 47,985 Net income (loss) $ (9,382 ) $ (4,719 ) $ (8,852 ) $ (946 ) Net loss per share—basic and diluted $ (0.11 ) $ (0.06 ) $ (0.10 ) $ (0.01 ) Shares used in basic and diluted per share calculation 83,747 84,586 85,459 85,677 |
The Company and its Significa_2
The Company and its Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared in accordance with United States accounting generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The fair value measurement footnote disclosure for the year ended June 30, 2018 was revised to correct an error in the presentation of the fair value for the 3.75% convertible notes. As a result, the fair value was increased by $15.9 million. The supplemental financial information footnote for the year ended June 30, 2018, was revised to correct an error in the presentation of unbilled fees and services. As a result, unbilled fees and services was increased by $0.6 million. These revisions have no impact on the consolidated balance sheet as of June 30, 2018 and the consolidated statement of operations and comprehensive loss, stockholders’ equity and cash flows for the year then ended. |
Use of Estimates | Use of Estimates The preparation of 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. Key estimates and assumptions made by the Company relate to revenue recognition, assessment of recoverability of goodwill and intangible assets, valuation of inventories, share‑based compensation expense, convertible notes, income taxes, allowance for doubtful accounts and loss contingencies. Actual results could differ materially from those estimates. |
Foreign Currency | Foreign Currency The Company’s international subsidiaries use their local currencies as their functional currencies. For those subsidiaries, assets and liabilities are translated at exchange rates in effect at the balance sheet date and income and expense accounts at the average exchange rate. Resulting translation adjustments are excluded from the determination of net loss and are recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity. Net foreign currency exchange transaction gains or losses are included as a component of other expense, net, in the Company’s consolidated statements of operations and comprehensive loss. |
Fair Value Measurements | Fair Value Measurements The carrying values of the Company’s financial instruments including cash equivalents, restricted cash, accounts receivable and accounts payable are approximately equal to their respective fair values due to the relatively short‑term nature of these instruments. Also refer to Note 8, Fair Value Measurements, |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers currency on hand, demand deposits, time deposits, and all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Cash and cash equivalents are held in various financial institutions in the United States and internationally. |
Investments | Investments The Company classifies all its investments as available‑for‑sale at the time of purchase since it is management’s intent that these investments be available for current operations, and as such, includes these investments as short‑term investments on its balance sheets. These investments primarily consist of commercial paper, U.S. treasury securities, and U.S. government agency and corporate debt securities. Short‑term investments classified as available‑for‑sale are recorded at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), as a separate component of stockholders’ equity. Realized gains and losses on the sale of securities are determined by specific identification of each security’s cost basis. The Company regularly reviews its investment portfolio to determine if any security is other‑than‑temporarily impaired, which would require it to record an impairment charge in the period any such determination is made. In making this judgment, management evaluates, among other things, the duration and extent to which the fair value of a security is less than its cost, the financial condition of the issuer and any changes thereto, and management’s intent to sell, or whether it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. Other expense, net, includes interest, dividends, amortization of purchase premiums and discounts, realized gains and losses on sales of securities and other‑than‑temporary declines in the fair value of securities, if any. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties The Company’s cash and cash equivalents are mainly deposited with several major financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant risk on these balances. The Company places its investments with high‑credit quality issuers. The Company does not invest an amount exceeding 5% of its combined cash, cash equivalents and investments in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies and money market accounts. The Company had no customer that represented 10% or more of total net revenue for the years ended June 30, 2019, 2018 and 2017. The Company had one customer at June 30, 2019 and no customer at June 30, 2018 that accounted for more than 10% of accounts receivable, net. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. Accounts receivable are deemed past due in accordance with the contractual terms of the agreement. Accounts are charged against the allowance for doubtful accounts once collection efforts are unsuccessful. Historically, such losses have been within management’s expectations. Single‑source suppliers presently provide the Company with several components. In most cases, if a supplier was unable to deliver these components, the Company believes that it would be able to find other sources for these components subject to any regulatory qualifications, if required. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash that is temporarily held in bank accounts which are under the control of the lender to the Revolving Credit Facility, certificates of deposit held as guarantees in connection with customer contracts and corporate leases as well as funds held as guarantees for Value‑Added Tax (VAT) obligations in a foreign jurisdiction. |
Inventories | Inventories Inventories are stated at the lower of cost (on a first‑in, first‑out basis) or net realizable value. Excess and obsolete inventories are written down based on historical sales and forecasted demand, as judged by management. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers, on January 1, 2018. The Company’s revenue consists of product revenue resulting from the sale of systems, system upgrades and service revenue. The Company accounts for a contract with a customer when there is a legally enforceable contract between the Company and its customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. The Company’s revenues are measured based on the consideration specified in the contract with each customer, net of any discounts and taxes collected from customers that are remitted to government authorities. The Company’s revenue is primarily derived from sales of CyberKnife and TomoTherapy Systems and services, which include post-contract customer support (“PCS”), installation services, training and other professional services. The majority of the Company's revenue arrangements consists of multiple performance obligations, which can include system, upgrades, installation, training, services, construction, and consumables. For bundled arrangements, the Company accounts for individual products and services separately if a product or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company’s products are generally sold without a right of return, and the Company’s contracts generally provide a fixed transaction price. The Company may offer incentives in the form of discounts, including volume system discounts, which are included in the contract and used to calculate the final fixed price of the arrangement. These discounts may pertain to all performance obligations in a specific contract or may be allocated to a specific performance obligation. The Company also from time to time offers extended payment terms beyond one year and commissions or other forms of payment to customers. The Company estimates a financing component in transactions with payment terms extending beyond one year. This financing component is recognized as financing income at the time payment is received. The Company applies the practical expedient to not adjust for a significant financing component if the gap between payment and delivery was expected, at the contract inception, to be less than one year. The Company offers customers the opportunity to trade in their older systems for credit towards the purchase of a new system. The Company generally does not provide specifc trade-in prices or upgrade rights at the time of purchase of the original system. Trade-in or upgrade transactions are based on the then fair value of the system and are separately negotiated taking into consideration circumstances existing at the time of the trade-in or upgrade. Accordingly, trade-ins and upgrades are not considered separate performance obligations in system sales agreements. Traded-in systems generally can be reconditioned and may be resold. The Company accounts for the fair value of the traded-in system in the total consideration in the arrangement by including the net realizable value of the traded-in system less a normal profit margin. The stand-alone selling price (“SSP”) of performance obligations is determined based on observable prices at which the Company separately sells the products and services. If the SSP is not directly observable, then the Company will estimate the SSP considering market conditions, entity-specific factors, and information about the customer or class of customer that is reasonably available. The SSP is generally assessed as a percentage of the list price. The contract consideration allocation is based on the SSP at contract inception. The consideration (net of any discounts) is allocated among separate products and services in a bundle based on their individual SSP. For contract modifications that add additional goods or services or changes pricing, the most recent SSP is used for allocation to the remaining performance obligations. The Company recognizes revenue for certain performance obligations at the point in time when control is transferred, such as delivery of products and upgrades. Service revenue is recognized over the term of the service period as the customer benefits from the services throughout the service period. Revenue related to services performed on a time-and-materials basis is recognized when performed. Services recognized over a period of time comprise a single stand-ready performance obligation satisfied over time as our customers simultaneously receive and consume benefits from the Company's performance. This performance obligation constitutes a series of services that are substantially the same and provided over time using the same measure of progress. Revenues derived from these arrangements are recognized over time using an output method based upon the passage of time as this provides a faithful depiction of the pattern of transfer of control. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer when the Company expects to generate future economic benefits from the related revenue-generating contracts. The Company capitalizes incremental contract acquisition costs, and amortizes such costs over a five year period, the period which the Company expects to benefit, based on historical service renewal rates, and expectations of future customer renewals. Most of the Company’s contract costs are associated with its internal sales force compensation program and a portion of its employee bonus program. The Company capitalizes and presents these contract assets in Prepaid expenses and other current assets and Other assets on its consolidated balance sheets. These contract assets are amortized over a period of five years commencing upon the initial transfer of control of the system to the customer. The amortization of these contract assets is included in cost of sales, research and development, sales and marketing, and general and administrative expenses based on department headcount allocations in the consolidated statements of operations. The pattern of amortization is commensurate with the pattern of transfer of control of the performance obligations to the customer. The Company elected to use the practical expedient in ASC 340-40-25-4 and expense as incurred commissions related to service renewals and upgrades because the contract term is less than a year. The Company invoices its customers based on the billing schedules in its sales arrangements. Payment terms vary from 30 to 90 days, or longer, from the date of invoice. Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms. Deferred revenue for periods presented primarily relates to service contracts where the service fees are billed up-front, generally quarterly or annually, prior to services being performed. The associated deferred revenue is generally recognized over the term of the service period. The Company did not have any significant impairment losses on its contract assets for any period presented. |
Deferred Revenue and Deferred Cost of Revenue | Deferred Revenue and Deferred Cost of Revenue Deferred revenue consists of deferred product revenue and deferred service revenue. Deferred product revenue arises from timing differences between the shipment of product and satisfaction of all revenue recognition criteria consistent with the Company’s revenue recognition policy. Deferred service revenue results from the advance payment for services to be delivered over a period of time. Deferred cost of revenue consists of the direct costs associated with the manufacturing of units and direct service upgrade costs for which the revenue has been deferred in accordance with the Company’s revenue recognition policies. Deferred revenue and associated deferred cost of revenue expected to be realized within one year are classified as current liabilities and current assets, respectively. |
Customers Advances | Customer Advances Customer advances represent payments made by customers in advance of product shipment. In general, customer advances are required for a contract to be recognized in our backlog. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight‑line method over the estimated useful lives of the related assets. Leasehold improvements are depreciated on a straight‑line basis over the remaining term of the lease or the estimated useful life of the asset, whichever is shorter. Machinery and equipment are depreciated over five years. Furniture and fixtures are depreciated over four years. Computer and office equipment and computer software are depreciated over three years. Repairs and maintenance costs, which are not considered improvements and do not extend the useful life of the property and equipment, are expensed as incurred. |
Software Capitalization Costs | Software Capitalization Costs Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. No costs associated with the development of software have been capitalized as the Company believes its current software development process is essentially completed concurrent with the establishment of technological feasibility. |
Impairment of Long-Lived Assets | Impairment of Long‑Lived Assets The Company reviews long‑lived assets, including intangible assets, property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable using pretax undiscounted cash flows. Impairment, if any, is measured as the amount by which the carrying value of a long‑lived asset exceeds its fair value. |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets Goodwill is not amortized, but is evaluated for impairment on an annual basis and when impairment indicators are present. The Company has assessed that it has one operating segment and one reporting unit, and the consolidated net assets, including existing goodwill and other intangible assets, are considered to be the carrying value of the reporting unit. The Company estimates the fair value of the reporting unit based on the Company’s closing stock price on the trading day closest to the annual review date multiplied by the outstanding shares on that date. If the carrying value of the reporting unit is in excess of its fair value, an impairment may exist, and the Company must perform the second step of the analysis, in which the implied fair value of the goodwill is compared to its carrying value to determine the impairment charge, if any. If the estimated fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and no further analysis is required. The Company adopted the new accounting guidance that simplifies the testing for goodwill impairment in the first quarter of fiscal 2019. Refer to Note 2, Recent Accounting Pronouncements. Purchased intangible assets other than goodwill, including developed technology are amortized on a straight‑line basis over their estimated useful lives unless their lives are determined to be indefinite. Purchased intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets which range from approximately one to seven years. |
Shipping and Handling Costs [Policy Text Block] | Shipping and Handling The Company’s billings for shipping and handling for product shipments to customers are included in cost of products. Shipping and handling costs incurred for inventory purchases are capitalized in inventory and expensed in cost of products. |
Advertising Expenses | Advertising Expenses The Company expenses the costs of advertising and promoting its products and services as incurred. Advertising expenses were approximately $0.5 million, $0.4 million and $0.4 million for the years ended June 30, 2019, 2018 and 2017, respectively, and are included in selling and marketing expense in the consolidated statements of operations. |
Research and Development Costs | Research and Development Costs Costs related to research, design and development of products are charged to research and development expense as incurred. These costs include direct compensation, benefits, and other headcount related costs for research and development personnel; costs for materials used in research and development activities; costs for outside services and allocated portions of facilities and other corporate costs. The Company has entered into research and clinical study arrangements with selected hospitals, cancer treatment centers, academic institutions and research institutions worldwide. These agreements support the Company’s internal research and development capabilities. |
Share-Based Compensation | Share‑Based Compensation The Company issues stock‑based compensation awards to employees and directors in the form of stock options, restricted stock units (RSUs), performance stock units (PSUs), market stock units (MSUs) and employee stock purchase plan (ESPP) awards (collectively, awards). The Company measures and recognizes compensation expense for all stock‑based awards based on the awards’ fair value. Share‑based compensation for RSUs and PSUs is measured based on the value of the Company’s common stock on the grant date. The Company uses the Monte‑Carlo simulation model to estimate the fair value of MSUs. Share‑based compensation for employee stock options and ESPP awards are measured on the date of grant using a Black‑Scholes option pricing model. Awards vest either on a graded schedule or in a lump sum. The Company determines the fair value of each award as a single award and recognizes the expense on a straight‑line basis over the service period of the award, which is generally the vesting period. The exercise price of stock options granted is equal to the fair market value of the Company’s common stock on the date of grant. Stock options expire ten years from the date of grant. Share‑based compensation expense for stock options, RSUs, PSUs and the ESPP awards is based on awards ultimately expected to vest, and the expense is recorded net of estimated forfeitures. The Company recognizes expense for MSUs net of estimated forfeitures and does not adjust the expense for subsequent changes in the expected outcome of the market‑based vesting conditions. |
Loss Contingencies | Loss Contingencies The Company is involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. The Company reviews these provisions quarterly and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. |
Net Loss Per Common Share | Net Loss Per Common Share Basic and diluted net loss per share is computed by dividing net loss attributable to stockholders by the weighted average number of common shares outstanding during the year. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to stockholders follows (in thousands): Years Ended June 30, 2019 2018 2017 Numerator: Net loss used to compute basic and diluted loss per share $ (16,430 ) $ (23,899 ) $ (29,579 ) Denominator: Weighted average shares used to compute basic and diluted loss per share 87,465 84,893 82,495 The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the vesting of Restricted Stock Units (RSU), Market Stock Units (MSU) and Performance Stock Units (PSU), and the purchase of shares under the Employee Stock Purchase Program (ESPP), as determined under the treasury stock method, are excluded from the computation of diluted net loss per share because their effect would have been anti‑dilutive. Additionally, the 3.75% Convertible Notes due August 2022 (the “3.75% Convertible Notes”), the 3.50% Convertible Senior Notes due February 1, 2018 (the “3.50% Convertible Notes”), the 3.50% Series A Convertible Notes (the “3.50% Series A Convertible Notes”) due February 1, 2018 are included in the calculation of diluted net income per share only if their inclusion is dilutive for periods during which the notes were outstanding. The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti‑dilutive (in thousands): As of June 30, 2019 2018 2017 Stock options 5,220 2,684 2,463 RSUs, PSUs and MSUs 3,725 5,159 5,227 3.50% Convertible Notes — — 8,378 8,945 7,843 16,068 Outstanding Convertible Notes—Diluted Share Impact The 3.75% Convertible Notes and the 3.50% Series A Convertible Notes have an optional physical (share), cash or combination settlement feature and contain certain conditional conversion features. The 3.50% Series A Convertible Notes were retired in February 2018. Due to the optional cash settlement feature and management’s intent to settle the principal amount thereof in cash, the shares of our common stock issuable upon conversion of the outstanding principal amount of the 3.75% Convertible Notes outstanding as of June 30, 2019, totaling approximately 14.9 million shares of our common stock, were not included in the basic and diluted net loss per common share table above. |
Income Taxes | Income Taxes The Company is required to estimate its income taxes in each of the tax jurisdictions in which it operates prior to the completion and filing of tax returns for such periods. This process involves estimating actual current tax expense together with assessing temporary differences in the treatment of items for tax purposes versus financial accounting purposes that may create net deferred tax assets and liabilities. The Company accounts for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax bases of the Company’s assets and liabilities and their financial statement reported amounts. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses, research and development credit carryforwards and other deferred tax assets. The Company records a valuation allowance to reduce its deferred tax assets to the amount the Company believes is more likely than not to be realized. Because of the uncertainty of the realization of the deferred tax assets, the Company has recorded a full valuation allowance against its domestic and certain foreign net deferred tax assets. The calculation of unrecognized tax benefits involves dealing with uncertainties in the application of complex global tax regulations. Management regularly assesses the Company’s tax positions in light of legislative, bilateral tax treaty, regulatory and judicial developments in the countries in which the Company does business. The Company anticipates that except for $0.01 million in uncertain tax positions that may be reduced related to the lapse of various statutes of limitation, there will be no material changes in uncertain tax positions in the next 12 months. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of comprehensive loss consist of net loss, unrealized gains and losses on available‑for‑sale investments, changes in foreign currency exchange rate translation and net changes related to a defined benefit pension plan. The unrealized gains and losses on available‑for‑sale investments, changes in foreign currency exchange rate translation and net changes related to the defined benefit pension plan are excluded from earnings and reported as a component of stockholders’ equity. The foreign currency translation adjustment results from those subsidiaries not using the United States 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 at the current exchange rates at the end of each period. The resulting cumulative translation adjustments are recorded directly to the accumulated other comprehensive loss account in stockholders’ equity. Revenues and expenses are translated at average exchange rates in effect during the period. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Pronouncement Recently Adopted | |
Accounting Pronouncements | Accounting Pronouncement Recently Adopted In June 2018, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-7, Compensation – Stock Compensation (Topic 718) — Improvements to Nonemployee Share-Based Payment Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718)—Scope of Modification Accounting. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715)—Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other Topics (Topic 350)—Simplifying the Test for Goodwill Impairment. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606 The Company completed its assessment of the impact this guidance has on its consolidated financial statements and related disclosures. Based on that assessment, the Company concluded the significant impact areas were recognizing revenue from sales of systems at the time of transfer of control, which is generally upon delivery, the capitalization and amortization of incremental costs of obtaining a contract, primarily related to certain bonuses and sales commissions, change in SSP and the removal of software revenue recognition rules along with the elimination of revenue deferral for cash basis customers. Under the new standards, the Company capitalizes incremental contract acquisition costs, such as certain bonuses and sales commissions, and amortizes such costs over the period which the Company benefits, as estimated by management, which may extend beyond the initial contract term. The Company amortizes capitalized bonuses and sales commissions over a period of five years commencing upon the initial transfer of control of the system to the customer. The pattern of amortization is commensurate with the pattern of transfer of control of the performance obligations to the customer. The Company elected to use the practical expedient in ASC 340-40-25-4 and expense commissions related to service renewals and upgrades with a renewal contract term of one year or less as incurred. The Company recorded a net reduction to opening accumulated deficit of $5.1 million, net of tax, as of July 1, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to the deferral of incremental costs to obtain contracts. Under ASC 606, product revenue for direct sales are accelerated to reflect transfer of control upon delivery while an element of installation is deferred until performed. Prior to the adoption of ASC 606, the Company deferred revenue until installation had occurred. The revenue recognition method for indirect sales and service revenues is unchanged under the new guidance. Refer to Note 3, Revenue, |
Accounting Pronouncements Not Yet Effective | |
Accounting Pronouncements | Accounting Pronouncements Not Yet Effective In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging. In June 2016, the FASB issued ASU No. 2016-13 Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" (ASU 2016-02 or Topic 842), which requires lessees to recognize right-of-use (ROU) assets and lease liabilities arising from operating and financing leases with terms longer than 12 months in the consolidated balance sheets and to disclose key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements (ASU 2016-02 or Topic 842)" allowing an alternative modified transition method. Under this method, the cumulative-effect adjustment to the opening balance of retained earnings is recognized on the date of adoption with comparative prior periods not being restated. The new standard, including subsequent amendments is effective for our interim and annual periods beginning July 1, 2019. The Company will adopt the new guidance in the first quarter of fiscal year 2020 using the alternative modified transition basis, thereby recognizing the cumulative effect of initially applying Topic 842 as an adjustment to opening balance sheet on the adoption date, without revising the balances in comparative periods. The Company plans to elect the package of transitional practical expedients allowing, among other provisions, the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct cost, for any existing leases on the adoption date. For the facility and car leases, the Company intends to elect to account for lease and non-lease components as a single lease component. The Company intends to make an accounting policy election not to record leases that, at the lease commencement date, have a lease term of 12 months or less on the balance sheet. The Company has substantially completed its evaluation of the new lease guidance implementation and assessed the effect of the adoption on its consolidated financial statements. In connection with the adoption of the new guidance, the Company expects to recognize ROU asset ranging from $29.6 million to $31.6 million and lease liability ranging from $33.5 million to $35.5 million in its balance sheet as of July 1, 2019, with no impact to its results of operations and cash flows. The difference between the leased assets and lease liabilities represents the net position of existing prepaid rent and deferred rent liabilities balance, resulting from historical straight-lining of operating leases, which will be effectively reclassified upon adoption to reduce the measurement of the leased assets. The Company believes that substantially all of its undiscounted future minimum operating lease commitments based on its current lease portfolio that were not recognized on its consolidated balance sheet as of June 30, 2019 but disclosed in Note 9 to the consolidated financial statements, will be subject to the new standard. |
The Company and its Significa_3
The Company and its Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per common share | A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to stockholders follows (in thousands): Years Ended June 30, 2019 2018 2017 Numerator: Net loss used to compute basic and diluted loss per share $ (16,430 ) $ (23,899 ) $ (29,579 ) Denominator: Weighted average shares used to compute basic and diluted loss per share 87,465 84,893 82,495 |
Schedule of all potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per common share | The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti‑dilutive (in thousands): As of June 30, 2019 2018 2017 Stock options 5,220 2,684 2,463 RSUs, PSUs and MSUs 3,725 5,159 5,227 3.50% Convertible Notes — — 8,378 8,945 7,843 16,068 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Schedule of Net Cumulative-effect Adjustment to Retained Earnings for the Adoption of ASC 606 | The beginning net cumulative-effect adjustment to retained earnings for the adoption of ASC 606 is as follows: Balance at Adjustment Balance as Reported at (Dollars in thousands) July 1, 2018 ASC 606 June 30, 2018 Assets: Account receivable, net $ 66,251 $ 257 $ 65,994 Deferred cost of revenue - current 677 (464 ) 1,141 Prepaid expenses and other current assets 16,239 670 15,569 Other assets 17,416 5,840 11,576 Liabilities and Stockholders' Equity: Other accrued liabilities 23,059 611 22,448 Deferred revenue - current 75,515 111 75,404 Long-term other liabilities 9,075 467 8,608 Accumulated deficit (469,171 ) 5,114 (474,285 ) |
Summary of Contract with Customer, Asset and Liability | Changes in the contract assets and contract liabilities are as follows: June 30, 2019 July 2018 Change (Dollars in thousands) Amount Amount $ % Assets: Unbilled accounts receivable – current (1) $ 5,260 $ 3,218 2,042 63 Interest receivable – current (2) 361 — 361 100 Long-term accounts receivable (3) 4,116 6,833 (2,717 ) (40 ) Interest receivable – non-current (3) 1,255 611 644 105 Liabilities: Customer advances 20,395 22,896 (2,501 ) (11 ) Deferred revenue – current 78,332 75,515 2,817 4 Deferred revenue – non-current 26,639 20,976 5,663 27 (1) Included in accounts receivable on consolidated balance sheets (2) Included in prepaid expenses and other current assets on consolidated balance sheets (3) Included in other assets on consolidated balance sheets |
Summary of Changes In Deferred Revenue From Contracts With Customers | During fiscal 2019, contract assets changed primarily due to the contractual timing of billings occurring after the revenues were recognized and payment terms exceeding 12 months. Contract liabilities changed due to timing of system sales for which the warranty has not yet started and was deferred. Changes in deferred revenue from contracts with customers are as follows: Year Ended (Dollars in thousands) June 30, 2019 Balance at beginning of period $ 96,491 New billings 427,264 Recognition of deferred revenue from opening balance (78,614 ) Recognition of new additions (340,170 ) Balance at end of period $ 104,971 |
Schedule of Remaining Performance Obligations related to Warranty | The following table represents the Company's remaining performance obligations related to long-term warranty and service as of June 30, 2019 and the estimated revenue expected to be recognized: Fiscal years of revenue recognition (Dollars in thousands) 2020 2021 2022 Thereafter Long-term warranty and service $ 32,853 $ 27,361 $ 13,333 $ 10,964 |
ASC 606 | |
Schedule of Net Cumulative-effect Adjustment to Retained Earnings for the Adoption of ASC 606 | Select consolidated balance sheets line items, which reflect the adoption of ASC 606 are as follows: June 30, 2019 (Dollars in thousands) As Reported Adjustments Balances Without Adoption Assets: Account receivable, net $ 111,885 $ 6,568 $ 105,317 Deferred cost of revenue - current 146 (20,124 ) 20,270 Prepaid expenses and other current assets 24,205 3,508 20,697 Other assets 17,373 6,893 10,480 Liabilities and Stockholders' Equity: Other accrued liabilities 32,742 760 31,982 Deferred revenue - current 78,332 (31,220 ) 109,552 Long-term other liabilities 9,646 1,200 8,446 Accumulated deficit (485,540 ) 26,104 (511,644 ) |
Schedule of Effect of Adoption of ASC 606 on Consolidated Statements of Operations and Comprehensive Loss | Select consolidated statements of operations and comprehensive loss line items for the year ended June 30, 2019, which reflect the adoption of ASC 606 are as follows: Year Ended June 30, 2019 (Dollars in thousands) As Reported Adjustments Balances Without Adoption Net revenue $ 418,785 $ 37,861 $ 380,924 Cost of goods sold 256,134 19,257 236,877 Other expense, net 14,927 (622 ) 15,549 Research and development 56,493 (307 ) 56,800 Selling and marketing 55,998 (1,108 ) 57,106 General and administrative 49,577 (657 ) 50,234 Provision for income taxes 2,086 308 1,778 Net loss (16,430 ) 20,990 (37,420 ) Net loss per share - basic and diluted $ (0.19 ) $ 0.23 $ (0.42 ) |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Supplemental Financial Information Disclosure [Abstract] | |
Schedule of accounts receivable, net | Accounts receivable, net consisted of the following (in thousands): June 30, 2019 June 30, 2018 Accounts receivable $ 107,230 $ 63,027 Unbilled fees and services 5,260 3,218 112,490 66,245 Less: Allowance for doubtful accounts (605 ) (251 ) Accounts receivable, net $ 111,885 $ 65,994 |
Schedule of financing receivables | A summary of the Company’s financing receivables is presented as follows (in thousands): June 30, 2019 Lease Receivables Financed Service Contracts and Other Total Gross $ — $ 13,288 $ 13,288 Residual value — — — Unearned income — (1,535 ) (1,535 ) Allowance for credit loss — (3,582 ) (3,582 ) Total, net $ — $ 8,171 $ 8,171 Reported as: Current $ — $ 3,902 $ 3,902 Non-current — 4,269 4,269 Total, net $ — $ 8,171 $ 8,171 June 30, 2018 Lease Receivables Financed Service Contracts and Other Total Gross $ 1,588 $ 8,009 $ 9,597 Residual value — — — Unearned income (137 ) — (137 ) Allowance for credit loss — — — Total, net $ 1,451 $ 8,009 $ 9,460 Reported as: Current $ 432 $ 2,139 $ 2,571 Non-current 1,019 5,870 6,889 Total, net $ 1,451 $ 8,009 $ 9,460 |
Schedule of inventories | Inventories consisted of the following (in thousands): June 30, 2019 June 30, 2018 Raw materials $ 40,966 $ 37,144 Work-in-process 18,152 17,703 Finished goods 61,705 53,693 Inventories $ 120,823 $ 108,540 |
Schedule of property and equipment, net | Property and equipment consisted of the following (in thousands): June 30, 2019 June 30, 2018 Furniture and fixtures $ 2,728 $ 2,927 Computer and office equipment 11,183 11,315 Software 11,236 11,307 Leasehold improvements 25,741 25,423 Machinery and equipment 45,472 47,065 Construction in progress 1,658 5,629 98,018 103,666 Less: Accumulated depreciation (80,896 ) (79,968 ) Property and equipment, net $ 17,122 $ 23,698 |
Schedule of components of accumulated other comprehensive income (loss) | The following table summarizes the changes in accumulated other comprehensive income (loss) by component (in thousands): Foreign Currency Items Unrealized Gains and (Losses) on Available-for- Sale Securities Change in Defined Pension Benefit Obligation Total Balance at June 30, 2017 $ 1,154 $ (89 ) $ (1,117 ) $ (52 ) Other comprehensive income 83 89 973 1,145 Balance at June 30, 2018 $ 1,237 $ — $ (144 ) $ 1,093 Other comprehensive (loss) (247 ) — (856 ) (1,103 ) Balance at June 30, 2019 $ 990 $ — $ (1,000 ) $ (10 ) |
Schedule of consolidated statement of operations | Other expense, net consisted of the following (in thousands): Years Ended June 30, (in thousands) 2019 2018 2017 Interest expense $ (15,084 ) $ (14,959 ) (17,302 ) Foreign currency transaction loss (665 ) (986 ) (1,267 ) Other (expense) income 822 (3,279 ) (149 ) Total other expense, net $ (14,927 ) $ (19,224 ) $ (18,718 ) |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and changes in the carrying amount of goodwill | Goodwill as of June 30, 2019 and 2018 and changes in the carrying amount of goodwill for the respective periods are as follows (in thousands): As of June 30, 2019 2018 Balance at the beginning of the period $ 57,855 $ 57,812 Currency translation (85 ) 43 Balance at the end of the period $ 57,770 $ 57,855 |
Schedule of intangible assets associated with purchased patent license | The Company’s intangible assets associated with purchased patent license are as follows (in thousands): As of June 30, 2019 As of June 30, 2018 Useful Lives Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount (in years) Patent license 7 $ 1,000 $ (321 ) $ 679 $ 1,000 $ (179 ) $ 821 |
Schedule of estimated future amortization expense of purchased intangible assets | The estimated future amortization expense of purchased intangible assets as of June 30, 2019 is as follows (in thousands): Year Ending June 30, Amount 2020 143 2021 143 2022 143 2023 143 2024 107 $ 679 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of effect of forward contracts not designated as hedging instruments and foreign currency transactions gains and losses | The following table shows the effect of forward contracts not designated as hedging instruments and foreign currency transactions gains and losses, which were included in “Other expense, net” on the consolidated statements of operations in fiscal years (in thousands): Years ended June 30, 2019 2018 2017 Foreign currency exchange gain (loss) on foreign contracts $ 17 $ (2,461 ) $ (1,322 ) Foreign currency transactions gain (loss) (682 ) 1,475 55 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of carrying values and estimated fair values of short-term and long-term debt | The following table summarizes the carrying value and estimated fair value of Credit Facilities and Notes (in thousands): June 30, 2019 June 30, 2018 Carrying Value Fair Value Carrying Value Fair Value 3.75% Convertible Notes $ 72,730 $ 84,227 $ 69,382 $ 86,666 Term Loan Facility 58,849 58,849 38,010 38,010 Revolving Credit Facility 28,265 28,265 23,685 23,685 Total $ 159,844 $ 171,341 $ 131,077 $ 148,361 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Lease Agreements and Long-term Principal and Interest on Convertible Notes | Future minimum lease payments under non‑cancelable operating lease agreements and long‑term principal and interest on the 3.75% Convertible Notes and Credit Facilities as of June 30, 2019 are as follows (in thousands): Year Ending June 30, Operating Leases Long-Term Debt (1) 2020 $ 8,675 $ 9,807 2021 7,352 11,487 2022 7,159 29,086 2023 7,161 109,414 2024 5,118 51,672 Thereafter 2,610 — Total $ 38,075 $ 211,466 (1) These amounts represent principal and interest cash payments over the contractual life of the debt obligations, including anticipated interest payments that are not recorded on the Company’s consolidated balance sheet. Any conversion, premium, redemption or purchase of the 3.75% Convertible Notes would impact cash payments noted in the preceding table. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of carrying values of all Debt | The following table presents the carrying value of all Credit Facilities and 3.75% Convertible Notes (in thousands): Revolving Credit Facility 3.75% Convertible Notes Term Loan Facility Total Carrying amount of equity conversion component $ — $ 14,650 $ — $ 14,650 Principal amount $ 28,265 $ 85,000 $ 63,031 $ 176,296 Unamortized debt costs — (2,687 ) (1,231 ) (3,918 ) Unamortized debt discount — (9,583 ) (2,951 ) (12,534 ) Net carrying amount $ 28,265 $ 72,730 $ 58,849 $ 159,844 |
Summary of interest expense on all Credit Facilities and Convertible Notes | A summary of interest expense on the Credit Facilities and Notes is as follows (in thousands): Year ended June 30, 2019 2018 2017 Interest expense related to contractual interest coupon $ 10,185 $ 9,953 $ 9,465 Interest expense related to amortization of debt discount 3,370 3,377 4,052 Interest expense related to amortization of debt issuance costs 1,529 1,629 3,785 Total $ 15,084 $ 14,959 $ 17,302 |
Stock Incentive Plan and Empl_2
Stock Incentive Plan and Employee Stock Purchase Plan (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of share-based compensation charges included in the Company's consolidated statements of operations and comprehensive loss | The following table summarizes the share‑based compensation charges included in the Company’s consolidated statements of operations and comprehensive loss (in thousands): Years ended June 30, 2019 2018 2017 Cost of revenue $ 1,666 $ 1,866 $ 1,991 Research and development 1,773 2,312 2,490 Selling and marketing 2,081 1,390 2,827 General and administrative 5,081 6,721 6,321 Total $ 10,601 $ 12,289 $ 13,629 |
Schedule of assumptions used for determining fair value of stock options | The fair value of each option is estimated at the date of grant using the Black‑Scholes option pricing formula with the following assumptions: Years Ended June 30, 2019 2018 2017 Risk–free interest rate 1.94% - 2.81% 1.98 % 1.76 % Dividend yield — % — % — % Expected term 5.31 - 5.51 5.25 5.12 Expected volatility 47.0% - 47.1% 43.9 % 46.4 % |
Schedule of option activity under the Company's Incentive Plan | A summary of option activity under the Company’s incentive plan during the fiscal years is presented below (in thousands except per share and term amounts): Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Balance at June 30, 2016 2,377 8.00 3.97 $ 452 Options granted 760 5.05 Options exercised (113 ) 5.18 Options forfeited/expired (561 ) 13.38 Balance at June 30, 2017 2,463 6.05 5.42 $ 191 Options granted 795 4.12 Options exercised (109 ) 4.02 Options forfeited/expired (465 ) 7.76 Balance at June 30, 2018 2,684 5.26 6.16 $ 60 Options granted 3,359 4.09 Options exercised (115 ) 4.26 Options forfeited/expired (708 ) 5.51 Balance at June 30, 2019 5,220 4.50 7.97 $ 11 Vested or Expected to vest at June 30, 2019 4,427 4.56 Exercisable at June 30, 2019 1,383 $ 5.50 |
Summary of information about outstanding and exercisable options | The following table summarizes information about outstanding and exercisable options at June 30, 2019 (in thousands, except years and exercise price): Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Outstanding Weighted Average Exercise Price $3.71 – 4.00 584,809 8.27 $ 3.97 235,615 $ 4.00 $4.01 – 4.01 77,796 2.27 4.01 77,796 4.01 $4.10 – 4.10 3,291,100 9.42 4.10 — — $4.23 – 5.38 529,375 7.41 5.05 332,192 5.05 $5.61 – 6.58 529,752 2.08 6.09 529,752 6.09 $6.63 – 6.96 191,772 2.74 6.87 191,772 6.87 $7.06 – 7.06 4,800 2.75 7.06 4,800 7.06 $7.70 – 7.70 2,333 2.83 7.70 2,333 7.70 $8.01 – 8.01 2,250 2.00 8.01 2,250 8.01 $8.89 – 8.89 6,000 1.83 8.89 6,000 8.89 Total Outstanding 5,219,987 7.97 $ 4.50 1,382,510 $ 5.50 |
Summary of activity of RSUs, PSUs and MSUs | The following table summarizes the activity of RSUs, PSUs and MSUs (in thousands, except fair value per share): Unvested Restricted Stock Restricted Stock Units Performance Stock Units Market Stock Units Total Number of Shares Underlying Stock Awards Weighted Average Grant Date Fair Value Per Share Unvested at June 30, 2016 4,204 — 1,162 5,366 6.48 Granted 1,622 10 708 2,340 5.03 Vested (1,534 ) — (176 ) (1,710 ) 4.99 Cancelled/Forfeited (408 ) — (361 ) (769 ) 5.86 Unvested at June 30, 2017 3,884 10 1,333 5,227 5.75 Granted 1,529 53 654 2,236 4.40 Vested (1,167 ) — — (1,167 ) 6.24 Cancelled/Forfeited (546 ) — (590 ) (1,136 ) 5.87 Unvested at June 30, 2018 3,700 63 1,397 5,160 5.03 Granted 1,386 — — 1,386 3.68 Vested (1,481 ) (10 ) — (1,491 ) 5.44 Cancelled/Forfeited (521 ) (53 ) (756 ) (1,330 ) 5.10 Unvested at June 30, 2019 3,084 — 641 3,725 $ 4.34 |
Schedule of weighted average assumptions used for determining fair value of ESPP shares | The Company estimates the fair value of ESPP shares at the date of grant using the Black‑Scholes option pricing model. The weighted average assumptions were as follows: Years Ended June 30, 2019 2018 2017 Risk–free interest rate 2.11% - 2.72% 1.07% –2.28% 0.49% – 0.70% Dividend yield —% —% —% Expected term 0.5 - 1.0 0.5 – 1.0 0.5 – 1.0 Expected volatility 30.9% - 60.0% 31.3% – 51.1% 24.6% – 42.0% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of loss before provision for income taxes on the accompanying statements of operations and comprehensive loss | Loss before provision for income taxes on the accompanying statements of operations and comprehensive loss included the following components (in thousands): Years Ended June 30, 2019 2018 2017 Domestic $ (23,799 ) $ (30,747 ) $ (35,227 ) Foreign 9,455 7,726 6,686 Total worldwide $ (14,344 ) $ (23,021 ) $ (28,541 ) |
Schedule of provision for income taxes | The provision for income taxes consisted of the following (in thousands): Years Ended June 30, 2019 2018 2017 Current: Federal $ — $ — $ — State 32 63 14 Foreign 2,140 785 1,292 Total current $ 2,172 $ 848 $ 1,306 Deferred: Federal — — — State — — — Foreign (86 ) 30 (268 ) Total deferred (86 ) 30 (268 ) Total provision for income taxes $ 2,086 $ 878 $ 1,038 |
Schedule of reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes included in the accompanying consolidated statements of operations and comprehensive loss | Income tax payable was $1.6 million, $1.1 million and $1.2 million at June 30, 2019, 2018 and 2017, respectively. A reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes included in the accompanying consolidated statements of operations and comprehensive loss is as follows (in thousands): Years Ended June 30, 2019 2018 2017 U.S. federal taxes (benefit): At federal statutory rate $ (3,012 ) $ (6,446 ) $ (9,988 ) State tax, net of federal benefit 32 63 14 Share-based compensation expense 1,128 1,712 802 Debt extinguishment — 967 — Other non-deductible permanent items 486 702 771 R&D credits (877 ) (142 ) (359 ) Foreign taxes (38 ) (1,295 ) (1,355 ) Other 58 (228 ) 83 Transition Tax — 3,348 — Tax Cuts and Jobs Act — 54,072 — Global Intangible Low-Taxed Income 1,924 — — Change in valuation allowance 2,385 (51,875 ) 11,070 Total $ 2,086 $ 878 $ 1,038 |
Schedule of significant components of net deferred tax assets | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred tax assets were as follows (in thousands): June 30, 2019 2018 Deferred tax assets: Federal and state net operating losses $ 77,228 $ 77,870 Accrued expenses and reserves 7,497 6,290 Deferred revenue 2,897 2,985 R&D Credits 22,108 20,857 Share-based compensation expense 1,327 2,233 Capitalized research and development 3,343 3,988 Unicap 1,953 1,571 Fixed assets/intangibles 1,323 1,486 Section 163(j) interest 1,857 — Other 1,582 1,650 Total deferred tax assets 121,115 118,930 Deferred tax liabilities: Contract acquisition costs (1,146 ) — Section 481 adjustment — (239 ) Total deferred tax liabilities (1,146 ) (239 ) Valuation allowance (119,125 ) (117,674 ) Net deferred tax assets $ 844 $ 1,017 |
Schedule of aggregate changes in the balance of gross unrecognized tax benefits | The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in thousands): Years Ended June 30, 2019 2018 2017 Balance at beginning of year $ 15,299 $ 15,819 $ 16,643 Tax positions related to current year: Additions 934 823 1,190 Tax positions related to prior years: Additions 580 — 299 Reductions (533 ) (1,343 ) (2,313 ) Balance at end of year $ 16,280 $ 15,299 $ 15,819 |
Defined Benefit Pension Oblig_2
Defined Benefit Pension Obligation (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Pension Obligation Disclosure [Abstract] | |
Schedule of funded status | The following table presents the funded status of the defined benefit pension plan (in thousands): June 30, 2019 2018 Change in benefit obligation: Benefit obligation—beginning of fiscal year $ 14,254 $ 13,979 Service cost 1,865 1,887 Interest cost 128 97 Plan participants’ contributions 1,818 1,878 Plan amendment — (108 ) Actuarial (gain)/loss 742 (935 ) Foreign currency changes 250 (470 ) Benefit and expense payments (1,480 ) (2,074 ) Benefit obligation—end of fiscal year $ 17,577 $ 14,254 Change in plan assets: Plan assets—beginning of fiscal year $ 12,192 $ 11,293 Employer contributions 1,373 1,347 Actual return on plan assets 122 141 Plan participants’ contributions 1,818 1,878 Foreign currency changes 203 (393 ) Benefit and expense payments (1,480 ) (2,074 ) Plan assets—end of fiscal year $ 14,228 $ 12,192 Funded status $ (3,349 ) $ (2,062 ) Amounts recognized within the consolidated balance sheets: Assets $ — $ — Long-term other liabilities (3,349 ) (2,062 ) Net amount recognized $ (3,349 ) $ (2,062 ) |
Schedule of amounts recognized in accumulated other comprehensive loss (before tax) | The following table presents the amounts recognized in accumulated other comprehensive loss (before tax) for the defined benefit pension plan (in thousands): June 30, 2019 2018 Net loss $ (144 ) $ (1,117 ) Prior service cost (856 ) 973 Accumulated other comprehensive loss $ (1,000 ) $ (144 ) |
Schedule of projected benefit obligations, accumulated benefit obligation and fair value of plan assets where accumulated benefit obligation exceeded fair value of plan assets | The following table presents the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for this defined benefit pension plan where accumulated benefit obligation exceeded the fair value of plan assets (in thousands): June 30, 2019 2018 Projected benefit obligation $ 17,577 $ 14,254 Accumulated benefit obligation $ 15,506 $ 12,143 Fair value of plan assets $ 14,228 $ 12,192 |
Schedule Of Net Benefit Costs And Other Amounts Recognized In Other Comprehensive Income Loss Table Text Block | The following table shows the components of the Company’s net periodic benefit costs and the other amounts recognized in other comprehensive loss, before tax, related to the Company’s defined benefit pension plan (in thousands): Year ended June 30, 2019 2018 2017 Net Periodic Benefit Costs: Service cost $ 1,865 $ 1,887 $ 1,996 Interest cost 128 97 49 Expected returns on assets (170 ) (156 ) (132 ) Amortization of prior service cost (55 ) (44 ) (46 ) Amortization of net loss — 11 114 Net periodic benefit costs 1,768 1,795 1,981 Other Amounts Recognized in Other Comprehensive Loss: Net (gain) loss arising during the year 801 (901 ) (881 ) Prior service cost — (105 ) 46 Amortization of prior service cost 55 44 — Amortization of net gain — (11 ) (114 ) Total recognized in other comprehensive gain (loss) 856 (973 ) (949 ) Total recognized in net periodic benefit costs and other comprehensive loss $ 2,624 $ 822 $ 1,032 |
Schedule of amounts in accumulated other comprehensive loss that are expected to be recognized | The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during fiscal year 2020 related to the Company’s defined benefit pension plan are as follows (in thousands): 2020 Net loss $ 1,496 Prior service credit (436 ) Accumulated other comprehensive loss $ 1,060 |
Schedule of assumptions used to determine net periodic benefit cost and benefit obligation | The assumptions used to determine net periodic benefit cost and to compute the expected long‑term return on assets for the Company’s defined benefit pension plan were as follows: Fiscal Years 2019 2018 2017 Net Periodic Benefit Costs: Discount rate 0.45 % 0.90 % 0.70 % Rate of compensation increase 1.50 % 1.50 % 2.00 % Expected long-term return on assets 1.20 % 1.40 % 1.40 % The assumptions used to measure the benefit obligation for the Company’s defined benefit pension plan were as follows: June 30, 2019 2018 Benefit Obligation: Discount rate 0.45 % 0.90 % Rate of compensation increase 1.50 % 1.50 % |
Schedule of estimated future benefit payments | Estimated future benefit payments to the defined benefit pension plan at June 30, 2019 were as follows (in thousands): Year Ending June 30, Future Benefits 2020 $ 1,164 2021 1,080 2022 1,017 2023 970 2024 1,443 Thereafter 4,633 Total $ 10,307 |
Segment Disclosure (Tables)
Segment Disclosure (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | Revenues attributed to a country or region is based on the shipping addresses of the Company’s customers. The following summarizes revenue by geographic region (in thousands): Years ended June 30, 2019 2018 2017 Americas $ 135,683 $ 145,689 $ 151,442 Europe, Middle East, India and Africa 149,095 120,032 104,026 Asia Pacific 63,793 72,925 59,278 Japan 70,214 66,251 68,668 Total $ 418,785 $ 404,897 $ 383,414 |
Schedule of Geographic Areas in Which the Company has Long Lived Tangible Assets | Information regarding geographic areas in which the Company has long‑lived tangible assets is as follows (in thousands): June 30, 2019 June 30, 2018 Americas $ 13,853 $ 19,698 Europe, Middle East, India and Africa 575 569 Asia Pacific (excluding Japan and India) 1,419 1,635 Japan 1,275 1,796 Total $ 17,122 $ 23,698 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of selected quarterly financial data (unaudited) | The following table provides the selected quarterly financial data for fiscal 2019 and 2018 (in thousands, except net income (loss) per share amounts: Quarters ended September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 Net revenue $ 95,829 $ 102,318 $ 103,221 $ 117,417 Gross profit $ 37,879 $ 38,380 $ 40,466 $ 45,926 Net loss $ (9,206 ) $ (4,640 ) $ (1,184 ) $ (1,400 ) Net loss per share—basic and diluted $ (0.11 ) $ (0.05 ) $ (0.01 ) $ (0.02 ) Shares used in basic and diluted per share calculation 86,479 87,237 87,962 88,202 Quarters ended September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 Net revenue $ 90,950 $ 100,329 $ 99,832 $ 113,786 Gross profit $ 38,106 $ 39,355 $ 36,249 $ 47,985 Net income (loss) $ (9,382 ) $ (4,719 ) $ (8,852 ) $ (946 ) Net loss per share—basic and diluted $ (0.11 ) $ (0.06 ) $ (0.10 ) $ (0.01 ) Shares used in basic and diluted per share calculation 83,747 84,586 85,459 85,677 |
The Company and its Significa_4
The Company and its Significant Accounting Policies - Additional Information (Details) shares in Millions | 12 Months Ended | |||
Jun. 30, 2019USD ($)ItemCustomersegmentshares | Jun. 30, 2018USD ($)Customer | Jun. 30, 2017USD ($)Customer | Aug. 31, 2017 | |
Concentration Risk [Line Items] | ||||
Description of impact of revision in financial statements | These revisions have no impact on the consolidated balance sheet as of June 30, 2018 and the consolidated statement of operations and comprehensive loss, stockholders’ equity and cash flows for the year then ended. | |||
Maximum expected period to classify deferred revenue as current liabilities and deferred costs of revenue as current assets | 1 year | |||
Capitalized development of software costs | $ 0 | |||
Number of operating segments | segment | 1 | |||
Number of reporting units | segment | 1 | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | |
Advertising expenses | 500,000 | $ 400,000 | $ 400,000 | |
Reduction in uncertain tax position due to lapse of various statutes of limitation | $ 10,000 | |||
Subsequent period within which no material changes in unrecognized tax benefits are expected | 12 months | |||
Stock options | ||||
Concentration Risk [Line Items] | ||||
Expiration period | 10 years | |||
Machinery and equipment | ||||
Concentration Risk [Line Items] | ||||
Period over which property and equipment are depreciated | 5 years | |||
Furniture and fixtures | ||||
Concentration Risk [Line Items] | ||||
Period over which property and equipment are depreciated | 4 years | |||
Computer and office equipment | ||||
Concentration Risk [Line Items] | ||||
Period over which property and equipment are depreciated | 3 years | |||
Computer Software | ||||
Concentration Risk [Line Items] | ||||
Period over which property and equipment are depreciated | 3 years | |||
Maximum | ||||
Concentration Risk [Line Items] | ||||
Estimated useful lives of purchased intangible assets | 7 years | |||
Minimum | ||||
Concentration Risk [Line Items] | ||||
Estimated useful lives of purchased intangible assets | 1 year | |||
Cash, cash equivalent and investments | Investment concentration risk | ||||
Concentration Risk [Line Items] | ||||
Number of obligors or makers | Item | 1 | |||
Cash, cash equivalent and investments | Investment concentration risk | Maximum | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 5.00% | |||
Total net revenue | Customer concentration risk | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 10.00% | 10.00% | 10.00% | |
Total net revenue | Customer concentration risk | Minimum | ||||
Concentration Risk [Line Items] | ||||
Number of significant customers | Customer | 0 | 0 | 0 | |
Total accounts receivable | Credit concentration risk | ||||
Concentration Risk [Line Items] | ||||
Number of significant customers | Customer | 1 | 0 | ||
Total accounts receivable | Credit concentration risk | Minimum | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 10.00% | |||
3.75% Convertible Senior Notes due 2022 | ||||
Concentration Risk [Line Items] | ||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |
Common stock not included in the calculation of potentially diluted shares | shares | 14.9 | |||
3.75% Convertible Notes | ||||
Concentration Risk [Line Items] | ||||
Interest rate (as a percent) | 3.75% | |||
Convertible debt maturity period | 2022-08 | |||
3.50% Convertible Senior Notes | ||||
Concentration Risk [Line Items] | ||||
Interest rate (as a percent) | 3.50% | |||
Convertible debt maturity maturity date | Feb. 1, 2018 | |||
3.50% Series A Convertible Notes | ||||
Concentration Risk [Line Items] | ||||
Interest rate (as a percent) | 3.50% | |||
Convertible debt maturity maturity date | Feb. 1, 2018 | |||
Error Correction in Presentation of Fair Value | ||||
Concentration Risk [Line Items] | ||||
Increase in unbilled fees and services, error correction | $ 600,000 | |||
Error Correction in Presentation of Fair Value | 3.75% Convertible Senior Notes due 2022 | ||||
Concentration Risk [Line Items] | ||||
Increase in fair value of debt instrument, error correction | $ 15,900,000 |
The Company and its Significa_5
The Company and its Significant Accounting Policies - Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per common share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | |||||||||||
Net loss used to compute basic and diluted loss per share | $ (1,400) | $ (1,184) | $ (4,640) | $ (9,206) | $ (946) | $ (8,852) | $ (4,719) | $ (9,382) | $ (16,430) | $ (23,899) | $ (29,579) |
Weighted average common shares used in computing net loss per share: | |||||||||||
Weighted average shares used to compute basic and diluted loss per share | 88,202 | 87,962 | 87,237 | 86,479 | 85,677 | 85,459 | 84,586 | 83,747 | 87,465 | 84,893 | 82,495 |
The Company and its Significa_6
The Company and its Significant Accounting Policies - Schedule of all potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per common share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share (in shares) | 8,945 | 7,843 | 16,068 |
Stock options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share (in shares) | 5,220 | 2,684 | 2,463 |
RSUs, PSUs and MSUs | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share (in shares) | 3,725 | 5,159 | 5,227 |
3.50% Convertible Notes | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share (in shares) | 8,378 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Additional Information (Details) - USD ($) | Jul. 01, 2019 | Jul. 01, 2018 |
ASC 606 | ||
Estimated net cumulative-effect adjustment to retained earnings | $ 5,100,000 | |
ASU 2016-02 | Subsequent Event | Minimum | ||
Operating lease right of use assets | $ 29,600,000 | |
Operating lease liabilities | 33,500,000 | |
ASU 2016-02 | Subsequent Event | Maximum | ||
Operating lease right of use assets | 31,600,000 | |
Operating lease liabilities | $ 35,500,000 |
Revenue - Schedule of Net Cumul
Revenue - Schedule of Net Cumulative-effect Adjustment to Retained Earnings for the Adoption of ASC 606 (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2018 |
ASSETS | |||
Account receivable, net | $ 111,885 | $ 65,994 | |
Deferred cost of revenue - current | 146 | 1,141 | |
Prepaid expenses and other current assets | 24,205 | 15,569 | |
Other assets | 17,373 | 11,576 | |
Liabilities and Stockholders' Equity: | |||
Other accrued liabilities | 32,742 | 22,448 | |
Deferred revenue - current | 78,332 | $ 75,515 | 75,404 |
Long-term other liabilities | 9,646 | 8,608 | |
Accumulated deficit | $ (485,540) | $ (474,285) | |
ASC 606 | |||
ASSETS | |||
Account receivable, net | 66,251 | ||
Deferred cost of revenue - current | 677 | ||
Prepaid expenses and other current assets | 16,239 | ||
Other assets | 17,416 | ||
Liabilities and Stockholders' Equity: | |||
Other accrued liabilities | 23,059 | ||
Deferred revenue - current | 75,515 | ||
Long-term other liabilities | 9,075 | ||
Accumulated deficit | (469,171) | ||
ASC 606 | Adjustment Due to ASC 606 | |||
ASSETS | |||
Account receivable, net | 257 | ||
Deferred cost of revenue - current | (464) | ||
Prepaid expenses and other current assets | 670 | ||
Other assets | 5,840 | ||
Liabilities and Stockholders' Equity: | |||
Other accrued liabilities | 611 | ||
Deferred revenue - current | 111 | ||
Long-term other liabilities | 467 | ||
Accumulated deficit | $ 5,114 |
Revenue - Schedule of Effect of
Revenue - Schedule of Effect of Adoption of ASC 606 on Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2018 |
ASSETS | |||
Account receivable, net | $ 111,885 | $ 65,994 | |
Deferred cost of revenue - current | 146 | 1,141 | |
Prepaid expenses and other current assets | 24,205 | 15,569 | |
Other assets | 17,373 | 11,576 | |
Liabilities and Stockholders' Equity: | |||
Other accrued liabilities | 32,742 | 22,448 | |
Deferred revenue - current | 78,332 | $ 75,515 | 75,404 |
Long-term other liabilities | 9,646 | 8,608 | |
Accumulated deficit | (485,540) | $ (474,285) | |
ASC 606 | |||
ASSETS | |||
Account receivable, net | 66,251 | ||
Deferred cost of revenue - current | 677 | ||
Prepaid expenses and other current assets | 16,239 | ||
Other assets | 17,416 | ||
Liabilities and Stockholders' Equity: | |||
Other accrued liabilities | 23,059 | ||
Deferred revenue - current | 75,515 | ||
Long-term other liabilities | 9,075 | ||
Accumulated deficit | $ (469,171) | ||
ASC 606 | Adjustment Due to ASC 606 | |||
ASSETS | |||
Account receivable, net | 6,568 | ||
Deferred cost of revenue - current | (20,124) | ||
Prepaid expenses and other current assets | 3,508 | ||
Other assets | 6,893 | ||
Liabilities and Stockholders' Equity: | |||
Other accrued liabilities | 760 | ||
Deferred revenue - current | (31,220) | ||
Long-term other liabilities | 1,200 | ||
Accumulated deficit | 26,104 | ||
ASC 606 | Balances Without Adoption | |||
ASSETS | |||
Account receivable, net | 105,317 | ||
Deferred cost of revenue - current | 20,270 | ||
Prepaid expenses and other current assets | 20,697 | ||
Other assets | 10,480 | ||
Liabilities and Stockholders' Equity: | |||
Other accrued liabilities | 31,982 | ||
Deferred revenue - current | 109,552 | ||
Long-term other liabilities | 8,446 | ||
Accumulated deficit | $ (511,644) |
Revenue - Schedule of Effect _2
Revenue - Schedule of Effect of Adoption of ASC 606 on Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net revenue | $ 117,417 | $ 103,221 | $ 102,318 | $ 95,829 | $ 113,786 | $ 99,832 | $ 100,329 | $ 90,950 | $ 418,785 | $ 404,897 | $ 383,414 |
Cost of goods sold | 256,134 | 243,202 | 242,073 | ||||||||
Other expense, net | (14,927) | (19,224) | (18,718) | ||||||||
Research and development | 56,493 | 57,251 | 49,921 | ||||||||
Selling and marketing | 55,998 | 60,105 | 57,477 | ||||||||
General and administrative | 49,577 | 48,136 | 43,766 | ||||||||
Provision for income taxes | 2,086 | 878 | 1,038 | ||||||||
Net loss | $ (1,400) | $ (1,184) | $ (4,640) | $ (9,206) | $ (946) | $ (8,852) | $ (4,719) | $ (9,382) | $ (16,430) | $ (23,899) | $ (29,579) |
Net loss per share - basic and diluted | $ (0.02) | $ (0.01) | $ (0.05) | $ (0.11) | $ (0.01) | $ (0.10) | $ (0.06) | $ (0.11) | $ (0.19) | $ (0.28) | $ (0.36) |
ASC 606 | Adjustment Due to ASC 606 | |||||||||||
Net revenue | $ 37,861 | ||||||||||
Cost of goods sold | 19,257 | ||||||||||
Other expense, net | 622 | ||||||||||
Research and development | (307) | ||||||||||
Selling and marketing | (1,108) | ||||||||||
General and administrative | (657) | ||||||||||
Provision for income taxes | 308 | ||||||||||
Net loss | $ 20,990 | ||||||||||
Net loss per share - basic and diluted | $ 0.23 | ||||||||||
ASC 606 | Balances Without Adoption | |||||||||||
Net revenue | $ 380,924 | ||||||||||
Cost of goods sold | 236,877 | ||||||||||
Other expense, net | (15,549) | ||||||||||
Research and development | 56,800 | ||||||||||
Selling and marketing | 57,106 | ||||||||||
General and administrative | 50,234 | ||||||||||
Provision for income taxes | 1,778 | ||||||||||
Net loss | $ (37,420) | ||||||||||
Net loss per share - basic and diluted | $ (0.42) |
Revenue -Summary of Contract wi
Revenue -Summary of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2018 | ||||
ASSETS | ||||||
Unbilled accounts receivable – current | $ 5,260 | [1] | $ 3,218 | [1] | $ 3,218 | |
Interest receivable – current | [2] | 361 | ||||
Long-term accounts receivable | [3] | 4,116 | 6,833 | |||
Interest receivable – non-current | [3] | 1,255 | 611 | |||
Change in unbilled accounts receivable - current | [1] | 2,042 | ||||
Changes in Interest receivable – current | [2] | 361 | ||||
Change in long term accounts receivable | [3] | (2,717) | ||||
Change in Interest receivable - non-current | [3] | $ 644 | ||||
Percentage change in unbilled accounts receivable - current | [1] | 63.00% | ||||
Percentage change in Interest receivable – current | [2] | 100.00% | ||||
Percentage change in long term accounts receivable | [3] | (40.00%) | ||||
Percentage change in interest receivable - non-current | [3] | 105.00% | ||||
Liabilities: | ||||||
Customer advances | $ 20,395 | 22,896 | 22,896 | |||
Deferred revenue - current | 78,332 | 75,515 | 75,404 | |||
Deferred revenue – non-current | 26,639 | $ 20,976 | $ 20,976 | |||
Change in customer advances | (2,501) | |||||
Change in unbilled deferred revenue - current | 2,817 | |||||
Change in unbilled deferred revenue - non-current | $ 5,663 | |||||
Percentage change in customer advances | (11.00%) | |||||
Percentage change in unbilled deferred revenue - current | 4.00% | |||||
Percentage change in unbilled deferred revenue - non-current | 27.00% | |||||
[1] | Included in accounts receivable on consolidated balance sheets | |||||
[2] | Included in prepaid expenses and other current assets on consolidated balance sheets | |||||
[3] | Included in other assets on consolidated balance sheets |
Revenue - Summary of Revenue fr
Revenue - Summary of Revenue from Contract with Customer (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Balance at beginning of period | $ 96,491 |
New billings | 427,264 |
Recognition of deferred revenue from opening balance | (78,614) |
Recognition of new additions | (340,170) |
Balance at end of period | $ 104,971 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligations amount | $ 863.8 | |
Capitalized costs to obtain a contract | 8.4 | $ 5.9 |
Impairment loss | 0.5 | |
Capitalized contract cost, amortization | 2.2 | |
Long-term warranty and service | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligations amount | 84.5 | |
Performance Obligations Other Than Warrant | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligations amount | $ 779.3 | |
Minimum | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Percentage of changes in operating results on entity's revenue | 17.00% | |
Maximum | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Percentage of changes in operating results on entity's revenue | 27.00% |
Revenue - Schedule of Remaining
Revenue - Schedule of Remaining Performance Obligations related to Warranty (Details) - Long-term warranty and service $ in Thousands | Jun. 30, 2019USD ($) |
2020 | $ 32,853 |
2021 | 27,361 |
2022 | 13,333 |
Thereafter | $ 10,964 |
Revenue - Additional Informat_2
Revenue - Additional Information (Details1) | Jun. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations recognized period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations recognized period | 30 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations percentage | 22.00% |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations percentage | 69.00% |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations percentage | 31.00% |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations percentage | 78.00% |
Supplemental Financial Inform_3
Supplemental Financial Information - Schedule of accounts receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | [1] | Jun. 30, 2018 | |
Accounts receivable, net | |||||
Accounts receivable | $ 107,230 | $ 63,027 | |||
Unbilled fees and services | 5,260 | [1] | $ 3,218 | 3,218 | |
Accounts and other receivable, gross | 112,490 | 66,245 | |||
Less: Allowance for doubtful accounts | (605) | (251) | |||
Accounts receivable, net | $ 111,885 | $ 65,994 | |||
[1] | Included in accounts receivable on consolidated balance sheets |
Supplemental Financial Inform_4
Supplemental Financial Information - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts receivable, net | |||
Allowance for doubtful accounts, payments and credits | $ 200,000 | $ 200,000 | |
Allowance for doubtful accounts, additions | 600,000 | 100,000 | |
Allowance for doubtful accounts, write-offs | 100,000 | ||
Financing receivables | |||
Accounts receivable with contractual maturities and sales-type leases | 4,269,000 | 6,889,000 | |
Sales-type leases | 1,000,000 | ||
Accounts receivable with contractual maturities of more than one year | 5,900,000 | ||
Allowance for credit loss | 3,582,000 | ||
Future minimum lease payments receivable | 0 | ||
Property and equipment, net | |||
Depreciation expense | $ 8,100,000 | 9,600,000 | $ 10,300,000 |
Maximum | |||
Financing receivables | |||
Allowance for credit loss | $ 100,000 |
Supplemental Financial Inform_5
Supplemental Financial Information - Summary of Financing Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Financing receivables | ||
Gross | $ 13,288 | $ 9,597 |
Unearned income | (1,535) | (137) |
Allowance for credit loss | (3,582) | |
Total, net | 8,171 | 9,460 |
Current | 3,902 | 2,571 |
Non-current | 4,269 | 6,889 |
Lease Receivables | ||
Financing receivables | ||
Gross | 1,588 | |
Unearned income | (137) | |
Total, net | 1,451 | |
Current | 432 | |
Non-current | 1,019 | |
Financed Service Contracts and Other | ||
Financing receivables | ||
Gross | 13,288 | 8,009 |
Unearned income | (1,535) | |
Allowance for credit loss | (3,582) | |
Total, net | 8,171 | 8,009 |
Current | 3,902 | 2,139 |
Non-current | $ 4,269 | $ 5,870 |
Supplemental Financial Inform_6
Supplemental Financial Information - Summary of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Inventory Net [Abstract] | ||
Raw materials | $ 40,966 | $ 37,144 |
Work-in-process | 18,152 | 17,703 |
Finished goods | 61,705 | 53,693 |
Inventories | $ 120,823 | $ 108,540 |
Supplemental Financial Inform_7
Supplemental Financial Information - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Property and equipment, net | ||
Property and equipment, gross | $ 98,018 | $ 103,666 |
Less: Accumulated depreciation | (80,896) | (79,968) |
Property and equipment, net | 17,122 | 23,698 |
Furniture and Fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | 2,728 | 2,927 |
Computer and Office Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 11,183 | 11,315 |
Software | ||
Property and equipment, net | ||
Property and equipment, gross | 11,236 | 11,307 |
Leasehold Improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 25,741 | 25,423 |
Machinery and Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 45,472 | 47,065 |
Construction in Progress | ||
Property and equipment, net | ||
Property and equipment, gross | $ 1,658 | $ 5,629 |
Supplemental Financial Inform_8
Supplemental Financial Information - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) | ||
Balance | $ 48,632 | $ 46,533 |
Balance | 49,871 | 48,632 |
Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance | 1,237 | 1,154 |
Other comprehensive income (loss) | (247) | 83 |
Balance | 990 | 1,237 |
Unrealized Gains and (Losses) on Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance | (89) | |
Other comprehensive income (loss) | 89 | |
Change in Defined Pension Benefit Obligation | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance | (144) | (1,117) |
Other comprehensive income (loss) | (856) | 973 |
Balance | (1,000) | (144) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance | 1,093 | (52) |
Other comprehensive income (loss) | (1,103) | 1,145 |
Balance | $ (10) | $ 1,093 |
Supplemental Financial Inform_9
Supplemental Financial Information - Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Supplemental Financial Information Disclosure [Abstract] | |||
Interest expense | $ (15,084) | $ (14,959) | $ (17,302) |
Foreign currency transaction loss | (665) | (986) | (1,267) |
Other (expense) income | 822 | (3,279) | (149) |
Total other expense, net | $ (14,927) | $ (19,224) | $ (18,718) |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets - Schedule of Goodwill and Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | $ 57,855 | $ 57,812 |
Currency translation | (85) | 43 |
Balance at the end of the period | $ 57,770 | $ 57,855 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite Lived Intangible Assets [Line Items] | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Amortization expense | $ 100,000 | $ 100,000 | $ 7,700,000 |
Patent license | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful Lives | 7 years | 7 years |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangible Assets - Schedule of Intangible Assets Associated with Purchased Patent License (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2017 | Jun. 30, 2018 | |
Finite Lived Intangible Assets [Line Items] | |||
Net Amount | $ 679 | $ 821 | |
Patent license | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful Lives | 7 years | 7 years | |
Gross Carrying Amount | $ 1,000 | 1,000 | |
Accumulated Amortization | (321) | (179) | |
Net Amount | $ 679 | $ 821 |
Goodwill and Purchased Intang_6
Goodwill and Purchased Intangible Assets - Schedule of Estimated Future Amortization Expense of Purchased Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Estimated future amortization expense of purchased intangible assets | ||
2020 | $ 143 | |
2021 | 143 | |
2022 | 143 | |
2023 | 143 | |
2024 | 107 | |
Net Amount | $ 679 | $ 821 |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)position | Oct. 31, 2017shares | |
Cash, cash equivalents and short-term investments | ||||
Proceeds from sale of available-for-sale securities, debt | $ 23,900 | |||
Loss on sales of investments | $ 171 | |||
Available-for-sale Securities | $ 0 | $ 0 | ||
Number of positions held in an unrealized loss position | position | 0 | |||
Technology Company | Common Stock | ||||
Cash, cash equivalents and short-term investments | ||||
Investment owned, shares | shares | 143,000 | |||
Proceeds from sale of available-for-sale securities, equity | $ 400 | |||
Loss on sales of investments | $ 100 | |||
Other expense, net | ||||
Cash, cash equivalents and short-term investments | ||||
Available for sale securities, reclassified from other comprehensive income to other expense, net | $ 77 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - contract | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Outstanding foreign currency contracts (number of contracts) | 0 | 0 |
Maximum | ||
Length of forward contracts | 3 months |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Effect of Forward Contracts Not Designated as Hedging Instruments and Foreign Currency Transactions Gains and Losses (Details) - Other expense, net - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Foreign currency exchange gain (loss) on foreign contracts | $ (682) | $ 1,475 | $ 55 |
Foreign contracts | |||
Foreign currency exchange gain (loss) on foreign contracts | $ 17 | $ (2,461) | $ (1,322) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Aug. 31, 2017 |
Financial assets | |||
Cash and cash equivalents | $ 76,798 | $ 83,083 | |
3.75% Convertible Senior Notes due 2022 | |||
Financial assets | |||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Value and Estimated Fair Value of all Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Carrying Value | ||
Fair value measurement | ||
Long term debt | $ 159,844 | $ 131,077 |
Fair Value | ||
Fair value measurement | ||
Long term debt | 171,341 | 148,361 |
Non-recurring basis | Carrying Value | Level 2 | 3.75% Convertible Notes | ||
Fair value measurement | ||
Long term debt | 72,730 | 69,382 |
Non-recurring basis | Fair Value | Level 2 | 3.75% Convertible Notes | ||
Fair value measurement | ||
Long term debt | 84,227 | 86,666 |
Term loan | Non-recurring basis | Carrying Value | Level 2 | ||
Fair value measurement | ||
Long term debt | 58,849 | 38,010 |
Term loan | Non-recurring basis | Fair Value | Level 2 | ||
Fair value measurement | ||
Long term debt | 58,849 | 38,010 |
Revolving Credit Facility | Non-recurring basis | Carrying Value | Level 2 | ||
Fair value measurement | ||
Long term debt | 28,265 | 23,685 |
Revolving Credit Facility | Non-recurring basis | Fair Value | Level 2 | ||
Fair value measurement | ||
Long term debt | $ 28,265 | $ 23,685 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 31, 2019 | |
Loss Contingencies [Line Items] | ||||
Rent expense | $ 8.3 | $ 9.2 | $ 8.6 | |
License agreement | WARF (Wisconsin Alumni Research Foundation) | ||||
Loss Contingencies [Line Items] | ||||
Royalty costs | 0.6 | 0.5 | $ 0.5 | |
Royalty amount accrued | 0.2 | $ 0.2 | ||
License agreement | WARF (Wisconsin Alumni Research Foundation) | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Annual commitment amount | $ 0.3 | |||
Accuray Asia | ||||
Loss Contingencies [Line Items] | ||||
Percentage of ownership interest in joint venture | 49.00% | |||
Existing 3.75% Convertible Notes | ||||
Loss Contingencies [Line Items] | ||||
Interest rate (as a percent) | 3.75% |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Lease Agreements and Long-term Principal and Interest on Convertible Notes (Details) $ in Thousands | Jun. 30, 2019USD ($) | |
Future minimum lease payments under non-cancelable operating lease agreements | ||
2020 | $ 8,675 | |
2021 | 7,352 | |
2022 | 7,159 | |
2023 | 7,161 | |
2024 | 5,118 | |
Thereafter | 2,610 | |
Total | 38,075 | |
Long-term principal and interest on Convertible Notes | ||
2020 | 9,807 | [1] |
2021 | 11,487 | [1] |
2022 | 29,086 | [1] |
2023 | 109,414 | [1] |
2024 | 51,672 | [1] |
Total | $ 211,466 | [1] |
[1] | These amounts represent principal and interest cash payments over the contractual life of the debt obligations, including anticipated interest payments that are not recorded on the Company’s consolidated balance sheet. Any conversion, premium, redemption or purchase of the 3.75% Convertible Notes would impact cash payments noted in the preceding table. |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Lease Agreements and Long-term Principal and Interest on Convertible Notes (Parenthetical) (Details) | Jun. 30, 2019 | Jun. 30, 2018 | Aug. 31, 2017 |
3.75% Convertible Senior Notes due 2022 | |||
Debt | |||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% |
Debt - Additional Information (
Debt - Additional Information (Details) | Feb. 07, 2018shares | Feb. 01, 2018USD ($)shares | Jan. 30, 2018USD ($) | Jun. 14, 2017USD ($) | May 31, 2019USD ($) | Apr. 30, 2019 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 30, 2014USD ($)$ / shares | Feb. 28, 2013USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Aug. 31, 2017USD ($) |
Debt | |||||||||||||
Common stock value | $ 89,000 | $ 86,000 | |||||||||||
Principal amount of the Notes | 176,296,000 | ||||||||||||
Unamortized debt costs | 3,918,000 | ||||||||||||
Debt discount costs | 12,534,000 | ||||||||||||
Revolving Credit Facility | |||||||||||||
Debt | |||||||||||||
Principal amount of the Notes | 28,265,000 | ||||||||||||
Initial borrowing capacity | $ 52,000,000 | ||||||||||||
Minimum drawn balance (as a percent) | 30.00% | ||||||||||||
Outstanding revolving credit facility | 28,300,000 | ||||||||||||
Revolving Credit Facility | Other Assets | |||||||||||||
Debt | |||||||||||||
Unamortized debt costs | $ 1,100,000 | ||||||||||||
90-day LIBOR | Revolving Credit Facility | |||||||||||||
Debt | |||||||||||||
Interest rate determination basis | 90-day LIBOR | ||||||||||||
Variable rate (as a percent) | 4.50% | 3.50% | 4.50% | ||||||||||
Repurchase | |||||||||||||
Debt | |||||||||||||
Repurchase/Retirement of existing notes | $ 28,000,000 | ||||||||||||
Revolving Credit Agreement | Revolving Credit Facility | |||||||||||||
Debt | |||||||||||||
Reduced borrowing capacity | $ 32,000,000 | ||||||||||||
Term Loan Facility due December 2022 | |||||||||||||
Debt | |||||||||||||
Principal amount of the Notes | $ 63,031,000 | ||||||||||||
Unamortized debt costs | 1,231,000 | ||||||||||||
Debt discount costs | $ 2,951,000 | ||||||||||||
Term Loan Facility due December 2022 | Term loan | |||||||||||||
Debt | |||||||||||||
Initial term loan borrowing capacity | 40,000,000 | ||||||||||||
Additional term loan borrowing capacity | $ 20,000,000 | ||||||||||||
Loan prepayment fees for first year (percentage) | 3.00% | ||||||||||||
Loan prepayment fees for second year (percentage) | 2.00% | ||||||||||||
Loan prepayment fees for third year (percentage) | 1.00% | ||||||||||||
Term of loan (in months) | 60 months | ||||||||||||
Term of interest payable (in months) | 24 months | ||||||||||||
Administrative fee payable on term loan as a percentage | 0.25% | ||||||||||||
Final payment of administrative fee payable on term loan as a percentage | 4.00% | ||||||||||||
Debt instrument amount withdrawn | $ 5,000,000 | ||||||||||||
Debt instrument scheduled commitment extended termination date | Jun. 30, 2019 | ||||||||||||
Debt instrument remaining unfunded commitment amount | $ 15,000,000 | ||||||||||||
Term Loan Facility due December 2022 | 90-day LIBOR | Term loan | |||||||||||||
Debt | |||||||||||||
Interest rate determination basis | 90-day LIBOR | ||||||||||||
Variable rate (as a percent) | 6.75% | ||||||||||||
Term Loan Facility Due May 2024 | Term loan | |||||||||||||
Debt | |||||||||||||
Principal amount of the Notes | $ 63,000,000 | ||||||||||||
Debt instrument increased commitment amount | $ 500,000 | ||||||||||||
Debt discount costs | $ 1,500,000 | ||||||||||||
Term Loan Facility Due May 2024 | 90-day LIBOR | Term loan | |||||||||||||
Debt | |||||||||||||
Interest rate determination basis | 90-day LIBOR | ||||||||||||
Variable rate (as a percent) | 5.50% | 6.75% | |||||||||||
3.50% Convertible Notes | |||||||||||||
Debt | |||||||||||||
Interest rate (as a percent) | 3.50% | ||||||||||||
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares) | 187.6877 | ||||||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | ||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 5.33 | ||||||||||||
Repayment of convertible debt and accrued interest | $ 13,200,000 | $ 13,000,000 | |||||||||||
Common stock value | 300,000 | ||||||||||||
Period of volume weighted averaging price which is used to determine total number of shares | 3 days | ||||||||||||
3.50% Convertible Notes | Common Stock | |||||||||||||
Debt | |||||||||||||
Common stock shares issued to note holders | shares | 253,000 | ||||||||||||
3.50% Convertible Notes | Other expense, net | |||||||||||||
Debt | |||||||||||||
Extinguishment of debt | $ 300,000 | ||||||||||||
3.50% Series A Convertible Senior Notes | |||||||||||||
Debt | |||||||||||||
Interest rate (as a percent) | 3.50% | ||||||||||||
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares) | 187.6877 | ||||||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | ||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 5.33 | ||||||||||||
Repayment of convertible debt and accrued interest | $ 27,000,000 | ||||||||||||
3.50% Series A Convertible Senior Notes | Common Stock | |||||||||||||
Debt | |||||||||||||
Common stock shares issued to settle Convertible Notes | shares | 1,252 | ||||||||||||
3.75% Convertible Senior Notes due 2022 | |||||||||||||
Debt | |||||||||||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | ||||||||||
Conversion rate, number of shares to be issued per $1000 of principal amount (in shares) | 174.8252 | ||||||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | ||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 5.72 | ||||||||||||
Aggregate principal amount of debt issued | $ 85,000,000 | ||||||||||||
Repurchase price, as a percentage of the principal amount, in the event of a fundamental change, as defined in Indenture | 100.00% | ||||||||||||
Principal amount of the Notes | $ 85,000,000 | ||||||||||||
Unamortized debt costs | 2,687,000 | ||||||||||||
Debt discount costs | $ 9,583,000 | ||||||||||||
3.75% Convertible Senior Notes due 2022 | Exchange | |||||||||||||
Debt | |||||||||||||
Aggregate principal amount of debt issued | 53,000,000 | ||||||||||||
3.75% Convertible Senior Notes due 2022 | Repurchase | |||||||||||||
Debt | |||||||||||||
Aggregate principal amount of debt issued | 32,000,000 | ||||||||||||
3.50% Convertible Notes due 2018 and 3.5% Series A Senior Notes due February 2018 | Exchange | |||||||||||||
Debt | |||||||||||||
Aggregate principal amount of debt issued | $ 47,000,000 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values of All Debt (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Debt | |
Carrying amount of equity conversion component | $ 14,650 |
Principal amount | 176,296 |
Unamortized debt costs | (3,918) |
Unamortized debt discount | (12,534) |
Net carrying amount | 159,844 |
Revolving Credit Facility | |
Debt | |
Principal amount | 28,265 |
Net carrying amount | 28,265 |
3.75% Convertible Senior Notes due 2022 | |
Debt | |
Carrying amount of equity conversion component | 14,650 |
Principal amount | 85,000 |
Unamortized debt costs | (2,687) |
Unamortized debt discount | (9,583) |
Net carrying amount | 72,730 |
Term Loan Facility due December 2022 | |
Debt | |
Principal amount | 63,031 |
Unamortized debt costs | (1,231) |
Unamortized debt discount | (2,951) |
Net carrying amount | $ 58,849 |
Debt - Summary of interest expe
Debt - Summary of interest expense on all Credit Facilities and Convertible Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |||
Interest expense related to contractual interest coupon | $ 10,185 | $ 9,953 | $ 9,465 |
Interest expense related to amortization of debt discount | 3,370 | 3,377 | 4,052 |
Interest expense related to amortization of debt issuance costs | 1,529 | 1,629 | 3,785 |
Total | $ 15,084 | $ 14,959 | $ 17,302 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) shares in Millions | Jun. 30, 2019shares |
Stockholders Equity Note [Abstract] | |
Number of shares of common stock reserved for issuance under stock incentive plans and employee stock purchase plan | 8.9 |
Stock Incentive Plan and Empl_3
Stock Incentive Plan and Employee Stock Purchase Plan - Additional Information (Details) | 12 Months Ended | |||
Jun. 30, 2019USD ($)ItemPlan$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 28, 2019$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of stock incentive plans | Plan | 3 | |||
Fair value of common stock (in dollars per share) | $ / shares | $ 3.87 | |||
Share-based compensation expense | $ 10,601,000 | $ 12,289,000 | $ 13,629,000 | |
ESPP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,100,000 | $ 1,200,000 | 1,200,000 | |
Weighted average period for recognition of compensation costs | 9 months 18 days | |||
Unrecognized compensation cost | $ 600,000 | |||
Purchase price expressed as percentage of fair market value of common stock | 85.00% | |||
Shares issued under the ESPP | shares | 900,000 | 900,000 | ||
Weighted average fair value (in dollars per share) | $ / shares | $ 3.31 | $ 3.62 | ||
Maximum | ESPP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Payroll deductions as percentage of salaries | 10.00% | |||
Number of shares per period up to which employees may purchase | shares | 2,500 | |||
Value of shares up to which employees may purchase in any calendar year | $ 25,000 | |||
Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total intrinsic value of options exercised | 100,000 | $ 100,000 | 100,000 | |
Share-based compensation expense | 1,400,000 | 600,000 | 500,000 | |
Realized excess tax benefits related to stock options exercises | 0 | 0 | 0 | |
Unrecognized compensation cost related to unvested stock options, net of estimated forfeitures | $ 6,700,000 | |||
Weighted average period for recognition of compensation costs | 3 years 3 months | |||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 7,200,000 | $ 7,800,000 | $ 9,500,000 | |
Weighted average period for recognition of compensation costs | 1 year 7 months 24 days | |||
Unrecognized compensation cost | $ 10,100,000 | |||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 3.68 | $ 4.57 | $ 5.03 | |
Aggregate fair market value of units vested | $ 6,200,000 | |||
Granted (in shares) | shares | 1,386,000 | 1,529,000 | 1,622,000 | |
Vested (in shares) | shares | 1,481,000 | 1,167,000 | 1,534,000 | |
Cancelled/Forfeited (in shares) | shares | 521,000 | 546,000 | 408,000 | |
Performance Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted (in shares) | shares | 0 | 53,000 | 10,000 | |
Vested (in shares) | shares | 10,000 | 0 | 0 | |
Cancelled (in shares) | shares | 53,000 | 0 | 0 | |
Share-based compensation expense (benefit) | $ (100,000) | $ 100,000 | $ 0 | |
Cancelled/Forfeited (in shares) | shares | 53,000 | |||
Market Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,000,000 | $ 2,600,000 | $ 2,500,000 | |
Unrecognized compensation cost | $ 1,000,000 | |||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.11 | $ 5.20 | ||
Granted (in shares) | shares | 0 | 654,000 | 708,000 | |
Vested (in shares) | shares | 0 | 0 | 176,000 | |
Cancelled/Forfeited (in shares) | shares | 756,000 | 590,000 | 361,000 | |
2007 Amended and Restated Plan | Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Contractual term | 10 years | |||
Percentage of the award vesting at first anniversary | 25.00% | |||
Vesting period for first 25% vesting rights | 1 year | |||
Remainder vesting period | 36 months | |||
2007 Amended and Restated Plan | Stock options | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise price of stock options as a percentage of fair market value on the grant date | 100.00% | |||
2007 Amended and Restated Plan | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of the award vesting at first anniversary | 50.00% | |||
Percentage of the award vesting at second anniversary | 50.00% | |||
2007 Amended and Restated Plan | Time-based RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Annual vesting percentage | 25.00% | |||
MSU Program | Market Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0 | $ 600,000 | $ 700,000 | |
Number of measurement periods | Item | 2 | |||
MSU Program | Market Stock Units | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Target number of shares that participating executives may earn (as a percent) | 150.00% |
Stock Incentive Plan and Empl_4
Stock Incentive Plan and Employee Stock Purchase Plan - Summary of Share-based Compensation Charges Included in the Company's Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based compensation expenses | |||
Share-based compensation expense | $ 10,601 | $ 12,289 | $ 13,629 |
Cost of revenue | |||
Share-based compensation expenses | |||
Share-based compensation expense | 1,666 | 1,866 | 1,991 |
Research and development | |||
Share-based compensation expenses | |||
Share-based compensation expense | 1,773 | 2,312 | 2,490 |
Selling and marketing | |||
Share-based compensation expenses | |||
Share-based compensation expense | 2,081 | 1,390 | 2,827 |
General and administrative | |||
Share-based compensation expenses | |||
Share-based compensation expense | $ 5,081 | $ 6,721 | $ 6,321 |
Stock Incentive Plan and Empl_5
Stock Incentive Plan and Employee Stock Purchase Plan - Schedule of Assumptions Used for Determining Fair Value of Stock Options (Details) - Stock options | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Weighted average assumptions used for determining fair value of options | |||
Risk-free interest rate (as a percent) | 1.98% | 1.76% | |
Risk-free interest rate, Minimum (as a percent) | 1.94% | ||
Risk-free interest rate, Maximum (as a percent) | 2.81% | ||
Expected term (in years) | 5 years 3 months | 5 years 1 month 13 days | |
Expected volatility (as a percent) | 43.90% | 46.40% | |
Expected volatility, Minimum (as a percent) | 47.00% | ||
Expected volatility, Maximum (as a percent) | 47.10% | ||
Minimum | |||
Weighted average assumptions used for determining fair value of options | |||
Expected term (in years) | 5 years 3 months 21 days | ||
Maximum | |||
Weighted average assumptions used for determining fair value of options | |||
Expected term (in years) | 5 years 6 months 3 days |
Stock Incentive Plan and Empl_6
Stock Incentive Plan and Employee Stock Purchase Plan - Schedule of Option Activity Under the Company's Incentive Plan (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Options Outstanding | ||||
Balance at the beginning of the year (in shares) | 2,684 | 2,463 | 2,377 | |
Options granted (in shares) | 3,359 | 795 | 760 | |
Options exercised (in shares) | (115) | (109) | (113) | |
Options forfeited/expired (in shares) | (708) | (465) | (561) | |
Balance at the end of the year (in shares) | 5,220 | 2,684 | 2,463 | 2,377 |
Vested or Expected to vest at the end of the year (in shares) | 4,427 | |||
Exercisable at the end of the year (in shares) | 1,383 | |||
Weighted Average Exercise Price | ||||
Balance at the beginning of the year (in dollars per share) | $ 5.26 | $ 6.05 | $ 8 | |
Options granted (in dollars per share) | 4.09 | 4.12 | 5.05 | |
Options exercised (in dollars per share) | 4.26 | 4.02 | 5.18 | |
Options forfeited/expired (in dollars per share) | 5.51 | 7.76 | 13.38 | |
Balance at the end of the year (in dollars per share) | 4.50 | $ 5.26 | $ 6.05 | $ 8 |
Vested or Expected to vest at the end of the year (in dollars per share) | 4.56 | |||
Exercisable at the end of the year (in dollars per share) | $ 5.50 | |||
Weighted Average Remaining Contractual Life (In Years) | ||||
Balance | 7 years 11 months 19 days | 6 years 1 month 28 days | 5 years 5 months 1 day | 3 years 11 months 19 days |
Aggregate Intrinsic Value (in thousands) | ||||
Balance at the beginning of the year | $ 11 | $ 60 | $ 191 | $ 452 |
Stock Incentive Plan and Empl_7
Stock Incentive Plan and Employee Stock Purchase Plan - Summary of Information about Outstanding and Exercisable Options (Details) - Stock options shares in Thousands | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Options Outstanding | |
Number Outstanding | shares | 5,219,987 |
Weighted-Average Remaining Contractual Life (Years) | 7 years 11 months 19 days |
Weighted-Average Exercise Price (in dollars per share) | $ 4.50 |
Options Exercisable | |
Number Outstanding | shares | 1,382,510 |
Weighted-Average Exercise Price (in dollars per share) | $ 5.50 |
$3.71 – 4.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 3.71 |
Exercise price, high end of range (in dollars per share) | $ 4 |
Options Outstanding | |
Number Outstanding | shares | 584,809 |
Weighted-Average Remaining Contractual Life (Years) | 8 years 3 months 7 days |
Weighted-Average Exercise Price (in dollars per share) | $ 3.97 |
Options Exercisable | |
Number Outstanding | shares | 235,615 |
Weighted-Average Exercise Price (in dollars per share) | $ 4 |
$4.01 – 4.01 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 4.01 |
Exercise price, high end of range (in dollars per share) | $ 4.01 |
Options Outstanding | |
Number Outstanding | shares | 77,796 |
Weighted-Average Remaining Contractual Life (Years) | 2 years 3 months 7 days |
Weighted-Average Exercise Price (in dollars per share) | $ 4.01 |
Options Exercisable | |
Number Outstanding | shares | 77,796 |
Weighted-Average Exercise Price (in dollars per share) | $ 4.01 |
$4.10 – 4.10 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 4.10 |
Exercise price, high end of range (in dollars per share) | $ 4.10 |
Options Outstanding | |
Number Outstanding | shares | 3,291,100 |
Weighted-Average Remaining Contractual Life (Years) | 9 years 5 months 1 day |
Weighted-Average Exercise Price (in dollars per share) | $ 4.10 |
$4.23 – 5.38 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 4.23 |
Exercise price, high end of range (in dollars per share) | $ 5.38 |
Options Outstanding | |
Number Outstanding | shares | 529,375 |
Weighted-Average Remaining Contractual Life (Years) | 7 years 4 months 28 days |
Weighted-Average Exercise Price (in dollars per share) | $ 5.05 |
Options Exercisable | |
Number Outstanding | shares | 332,192 |
Weighted-Average Exercise Price (in dollars per share) | $ 5.05 |
$5.61 – 6.58 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 5.61 |
Exercise price, high end of range (in dollars per share) | $ 6.58 |
Options Outstanding | |
Number Outstanding | shares | 529,752 |
Weighted-Average Remaining Contractual Life (Years) | 2 years 29 days |
Weighted-Average Exercise Price (in dollars per share) | $ 6.09 |
Options Exercisable | |
Number Outstanding | shares | 529,752 |
Weighted-Average Exercise Price (in dollars per share) | $ 6.09 |
$6.63 – 6.96 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 6.63 |
Exercise price, high end of range (in dollars per share) | $ 6.96 |
Options Outstanding | |
Number Outstanding | shares | 191,772 |
Weighted-Average Remaining Contractual Life (Years) | 2 years 8 months 26 days |
Weighted-Average Exercise Price (in dollars per share) | $ 6.87 |
Options Exercisable | |
Number Outstanding | shares | 191,772 |
Weighted-Average Exercise Price (in dollars per share) | $ 6.87 |
$7.06 – 7.06 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 7.06 |
Exercise price, high end of range (in dollars per share) | $ 7.06 |
Options Outstanding | |
Number Outstanding | shares | 4,800 |
Weighted-Average Remaining Contractual Life (Years) | 2 years 9 months |
Weighted-Average Exercise Price (in dollars per share) | $ 7.06 |
Options Exercisable | |
Number Outstanding | shares | 4,800 |
Weighted-Average Exercise Price (in dollars per share) | $ 7.06 |
$7.70 – 7.70 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 7.70 |
Exercise price, high end of range (in dollars per share) | $ 7.70 |
Options Outstanding | |
Number Outstanding | shares | 2,333 |
Weighted-Average Remaining Contractual Life (Years) | 2 years 9 months 29 days |
Weighted-Average Exercise Price (in dollars per share) | $ 7.70 |
Options Exercisable | |
Number Outstanding | shares | 2,333 |
Weighted-Average Exercise Price (in dollars per share) | $ 7.70 |
$8.01 – 8.01 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 8.01 |
Exercise price, high end of range (in dollars per share) | $ 8.01 |
Options Outstanding | |
Number Outstanding | shares | 2,250 |
Weighted-Average Remaining Contractual Life (Years) | 2 years |
Weighted-Average Exercise Price (in dollars per share) | $ 8.01 |
Options Exercisable | |
Number Outstanding | shares | 2,250 |
Weighted-Average Exercise Price (in dollars per share) | $ 8.01 |
$8.89 – 8.89 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 8.89 |
Exercise price, high end of range (in dollars per share) | $ 8.89 |
Options Outstanding | |
Number Outstanding | shares | 6,000 |
Weighted-Average Remaining Contractual Life (Years) | 1 year 9 months 29 days |
Weighted-Average Exercise Price (in dollars per share) | $ 8.89 |
Options Exercisable | |
Number Outstanding | shares | 6,000 |
Weighted-Average Exercise Price (in dollars per share) | $ 8.89 |
Stock Incentive Plan and Empl_8
Stock Incentive Plan and Employee Stock Purchase Plan - Summary of Activity of RSUs, PSUs and MSUs (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restricted Stock Units | |||
Total Number of Shares Underlying | |||
Unvested at the beginning of the year (in shares) | 3,700,000 | 3,884,000 | 4,204,000 |
Granted (in shares) | 1,386,000 | 1,529,000 | 1,622,000 |
Vested (in shares) | (1,481,000) | (1,167,000) | (1,534,000) |
Cancelled/Forfeited (in shares) | (521,000) | (546,000) | (408,000) |
Unvested at the end of the year (in shares) | 3,084,000 | 3,700,000 | 3,884,000 |
Weighted Average Grant Date Fair Value Per Share | |||
Granted (in dollars per share) | $ 3.68 | $ 4.57 | $ 5.03 |
Performance Stock Units | |||
Total Number of Shares Underlying | |||
Unvested at the beginning of the year (in shares) | 63,000 | 10,000 | |
Granted (in shares) | 0 | 53,000 | 10,000 |
Vested (in shares) | (10,000) | 0 | 0 |
Cancelled/Forfeited (in shares) | (53,000) | ||
Unvested at the end of the year (in shares) | 63,000 | 10,000 | |
Market Stock Units | |||
Total Number of Shares Underlying | |||
Unvested at the beginning of the year (in shares) | 1,397,000 | 1,333,000 | 1,162,000 |
Granted (in shares) | 0 | 654,000 | 708,000 |
Vested (in shares) | 0 | 0 | (176,000) |
Cancelled/Forfeited (in shares) | (756,000) | (590,000) | (361,000) |
Unvested at the end of the year (in shares) | 641,000 | 1,397,000 | 1,333,000 |
Weighted Average Grant Date Fair Value Per Share | |||
Granted (in dollars per share) | $ 4.11 | $ 5.20 | |
Restricted Stock Units, Performance Stock Units and Market Stock Units | |||
Total Number of Shares Underlying | |||
Unvested at the beginning of the year (in shares) | 5,160,000 | 5,227,000 | 5,366,000 |
Granted (in shares) | 1,386,000 | 2,236,000 | 2,340,000 |
Vested (in shares) | (1,491,000) | (1,167,000) | (1,710,000) |
Cancelled/Forfeited (in shares) | (1,330,000) | (1,136,000) | (769,000) |
Unvested at the end of the year (in shares) | 3,725,000 | 5,160,000 | 5,227,000 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested at the beginning of the year (in dollars per share) | $ 5.03 | $ 5.75 | $ 6.48 |
Granted (in dollars per share) | 3.68 | 4.40 | 5.03 |
Vested (in dollars per share) | 5.44 | 6.24 | 4.99 |
Cancelled/Forfeited (in dollars per share) | 5.10 | 5.87 | 5.86 |
Unvested at the end of the year (in dollars per share) | $ 4.34 | $ 5.03 | $ 5.75 |
Stock Incentive Plan and Empl_9
Stock Incentive Plan and Employee Stock Purchase Plan - ESPP (Details) - ESPP | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Weighted average assumptions used for determining fair value of options | |||
Risk-free interest rate, Minimum (as a percent) | 2.11% | 1.07% | 0.49% |
Risk-free interest rate, Maximum (as a percent) | 2.72% | 2.28% | 0.70% |
Expected volatility, Minimum (as a percent) | 30.90% | 31.30% | 24.60% |
Expected volatility, Maximum (as a percent) | 60.00% | 51.10% | 42.00% |
Minimum | |||
Weighted average assumptions used for determining fair value of options | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Maximum | |||
Weighted average assumptions used for determining fair value of options | |||
Expected term (in years) | 1 year | 1 year | 1 year |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Loss Before Provision for Income Taxes on the Accompanying Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Components of loss before provision for income taxes | |||
Domestic | $ (23,799) | $ (30,747) | $ (35,227) |
Foreign | 9,455 | 7,726 | 6,686 |
Loss before provision for income taxes | $ (14,344) | $ (23,021) | $ (28,541) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current: | |||
State | $ 32 | $ 63 | $ 14 |
Foreign | 2,140 | 785 | 1,292 |
Total current | 2,172 | 848 | 1,306 |
Deferred: | |||
Foreign | (86) | 30 | (268) |
Total deferred | (86) | 30 | (268) |
Total provision for income taxes | $ 2,086 | $ 878 | $ 1,038 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2016 | |
Income Taxes [Line Items] | |||||
Income tax payable | $ 1,600 | $ 1,200 | $ 1,100 | ||
Valuation allowance percentage established for domestic and foreign net deferred tax assets | 100.00% | ||||
Tax deduction for interest expense | 30.00% | ||||
Undistributed earnings of foreign subsidiaries | $ 39,700 | ||||
Reduction in uncertain tax position due to lapse of various statutes of limitation | $ 10 | ||||
Subsequent period within which no material changes in unrecognized tax benefits are expected | 12 months | ||||
Gross unrecognized tax benefits | $ 16,280 | 15,819 | 15,299 | $ 16,643 | |
Uncertain tax benefits that, if realized, would affect the effective tax rate | 14,400 | ||||
Accrued interest and penalties related to uncertain tax positions | 60 | $ 40 | |||
Swiss total assessment settlement | $ 100 | ||||
Minimum | |||||
Income Taxes [Line Items] | |||||
Average annual prior gross receipts treshhold amount for exemption from base erosion and anti abuse tax | $ 500,000 | ||||
Statutes of limitations with respect to jurisdictions (in years) | 3 years | ||||
Maximum | |||||
Income Taxes [Line Items] | |||||
Statutes of limitations with respect to jurisdictions (in years) | 10 years | ||||
Marginal Rate | |||||
Income Taxes [Line Items] | |||||
Effective income tax rate | 35.00% | ||||
Flat Rate | |||||
Income Taxes [Line Items] | |||||
Effective income tax rate | 21.00% | ||||
Federal | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 330,900 | ||||
Federal | Research and development | |||||
Income Taxes [Line Items] | |||||
Tax credits | 20,600 | ||||
State | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 131,600 | ||||
State | Research and development | |||||
Income Taxes [Line Items] | |||||
Tax credits | $ 20,100 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes at the Statutory Federal Income Tax Rate to the Provision for Income Taxes Included in the Accompanying Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
U.S. federal taxes (benefit): | |||
At federal statutory rate | $ (3,012) | $ (6,446) | $ (9,988) |
State tax, net of federal benefit | 32 | 63 | 14 |
Share-based compensation expense | 1,128 | 1,712 | 802 |
Debt extinguishment | 967 | ||
Other non-deductible permanent items | 486 | 702 | 771 |
R&D credits | (877) | (142) | (359) |
Foreign taxes | (38) | (1,295) | (1,355) |
Other | 58 | (228) | 83 |
Transition Tax | 3,348 | ||
Tax Cuts and Jobs Act | 54,072 | ||
Global Intangible Low-Taxed Income | 1,924 | ||
Change in valuation allowance | 2,385 | (51,875) | 11,070 |
Total provision for income taxes | $ 2,086 | $ 878 | $ 1,038 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred tax assets: | ||
Federal and state net operating losses | $ 77,228 | $ 77,870 |
Accrued expenses and reserves | 7,497 | 6,290 |
Deferred revenue | 2,897 | 2,985 |
R&D Credits | 22,108 | 20,857 |
Share-based compensation expense | 1,327 | 2,233 |
Capitalized research and development | 3,343 | 3,988 |
Unicap | 1,953 | 1,571 |
Fixed assets/intangibles | 1,323 | 1,486 |
Section 163(j) interest | 1,857 | |
Other | 1,582 | 1,650 |
Total deferred tax assets | 121,115 | 118,930 |
Deferred tax liabilities: | ||
Contract acquisition costs | (1,146) | |
Section 481 adjustment | (239) | |
Total deferred tax liabilities | (1,146) | (239) |
Valuation allowance | (119,125) | (117,674) |
Net deferred tax assets | $ 844 | $ 1,017 |
Income Taxes - Schedule of Aggr
Income Taxes - Schedule of Aggregate Changes in the Balance of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Aggregate changes in the balance of gross unrecognized tax benefits | |||
Balance at beginning of year | $ 15,299 | $ 15,819 | $ 16,643 |
Tax positions related to current year: Additions | 934 | 823 | 1,190 |
Tax positions related to prior years: Additions | 580 | 299 | |
Tax positions related to prior years: Reductions | (533) | (1,343) | (2,313) |
Balance at end of year | $ 16,280 | $ 15,299 | $ 15,819 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer's contribution to the 401(k) Plan | $ 2.1 | $ 2.2 | $ 2 |
Defined Benefit Pension Oblig_3
Defined Benefit Pension Obligation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Pension Obligation | |||
Actuarial loss | $ 700 | ||
Defined benefit pension plan | |||
Defined Benefit Pension Obligation | |||
Actuarial loss | 742 | $ (935) | |
Employer contributions | 1,373 | $ 1,347 | $ 1,300 |
Expected total contributions to defined benefit pension plan for fiscal year 2020 | $ 1,500 | ||
Defined benefit pension plan | BVG | |||
Plan Assets | |||
Plan assets expected investment percentage | 100.00% | ||
Required capital percentage | 100.00% | ||
Guaranteed interest rate for mandatory retirement savings (as a percent) | 1.00% | ||
Guaranteed interest rate for supplementary retirement savings (as a percent) | 0.25% | ||
Long-term other liabilities | |||
Defined Benefit Pension Obligation | |||
Unfunded liability | $ 3,300 |
Defined Benefit Pension Oblig_4
Defined Benefit Pension Obligation - Obligations and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Change in benefit obligation: | |||
Actuarial (gain)/loss | $ 700 | ||
Amounts recognized within the consolidated balance sheets: | |||
Assets | 438,181 | $ 378,727 | |
Defined benefit pension plan | |||
Change in benefit obligation: | |||
Benefit obligation—beginning of fiscal year | 14,254 | 13,979 | |
Service cost | 1,865 | 1,887 | $ 1,996 |
Interest cost | 128 | 97 | 49 |
Plan participants’ contributions | 1,818 | 1,878 | |
Plan amendment | (108) | ||
Actuarial (gain)/loss | 742 | (935) | |
Foreign currency changes | 250 | (470) | |
Benefit and expense payments | (1,480) | (2,074) | |
Benefit obligation—end of fiscal year | 17,577 | 14,254 | 13,979 |
Change in plan assets: | |||
Plan assets—beginning of fiscal year | 12,192 | 11,293 | |
Employer contributions | 1,373 | 1,347 | 1,300 |
Actual return on plan assets | 122 | 141 | |
Plan participants’ contributions | 1,818 | 1,878 | |
Foreign currency changes | 203 | (393) | |
Benefit and expense payments | (1,480) | (2,074) | |
Plan assets—end of fiscal year | 14,228 | 12,192 | $ 11,293 |
Funded status | (3,349) | (2,062) | |
Amounts recognized within the consolidated balance sheets: | |||
Long-term other liabilities | 3,349 | 2,062 | |
Net amount recognized | $ 3,349 | $ 2,062 |
Defined Benefit Pension Oblig_5
Defined Benefit Pension Obligation - Amounts Recognized (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Amounts recognized within the consolidated balance sheets: | ||
Assets | $ 438,181 | $ 378,727 |
Defined benefit pension plan | ||
Amounts recognized within the consolidated balance sheets: | ||
Long-term other liabilities | (3,349) | (2,062) |
Net amount recognized | (3,349) | (2,062) |
Amounts recognized in accumulated other comprehensive loss (before tax) | ||
Net loss | (144) | (1,117) |
Prior service cost | (856) | 973 |
Accumulated other comprehensive loss | (1,000) | (144) |
Accumulated benefit obligations in excess of fair value of plan assets: | ||
Projected benefit obligation | 17,577 | 14,254 |
Accumulated benefit obligation | 15,506 | 12,143 |
Fair value of plan assets | $ 14,228 | $ 12,192 |
Defined Benefit Pension Oblig_6
Defined Benefit Pension Obligation - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss (Details) - Defined benefit pension plan - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Periodic Benefit Costs: | |||
Service cost | $ 1,865 | $ 1,887 | $ 1,996 |
Interest cost | 128 | 97 | 49 |
Expected returns on assets | (170) | (156) | (132) |
Amortization of prior service cost | (55) | (44) | (46) |
Amortization of net loss | 11 | 114 | |
Net periodic benefit costs | 1,768 | 1,795 | 1,981 |
Other Amounts Recognized in Other Comprehensive Loss: | |||
Net (gain) loss arising during the year | 801 | (901) | (881) |
Prior service cost | (105) | 46 | |
Amortization of prior service cost | 55 | 44 | |
Amortization of net gain | (11) | (114) | |
Total recognized in other comprehensive gain (loss) | 856 | (973) | (949) |
Total recognized in net periodic benefit costs and other comprehensive loss | 2,624 | $ 822 | $ 1,032 |
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during fiscal year 2020 | |||
Net loss | 1,496 | ||
Prior service credit | (436) | ||
Accumulated other comprehensive loss | $ 1,060 |
Defined Benefit Pension Oblig_7
Defined Benefit Pension Obligation - Assumptions (Details) - Defined benefit pension plan | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Periodic Benefit Costs: | |||
Discount rate (as a percent) | 0.45% | 0.90% | 0.70% |
Rate of compensation increase (as a percent) | 1.50% | 1.50% | 2.00% |
Expected long-term return on assets (as a percent) | 1.20% | 1.40% | 1.40% |
Benefit Obligation: | |||
Discount rate (as a percent) | 0.45% | 0.90% | |
Rate of compensation increase (as a percent) | 1.50% | 1.50% |
Defined Benefit Pension Oblig_8
Defined Benefit Pension Obligation - Estimated Contributions and Future Benefit Payments (Details) - Defined benefit pension plan $ in Thousands | Jun. 30, 2019USD ($) |
Future Benefit Payments | |
2020 | $ 1,164 |
2021 | 1,080 |
2022 | 1,017 |
2023 | 970 |
2024 | 1,443 |
Thereafter | 4,633 |
Total | $ 10,307 |
Segment Disclosure - Additional
Segment Disclosure - Additional Information (Details) | 12 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Segment Disclosure - Summary of
Segment Disclosure - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Information | |||||||||||
Total net revenue | $ 117,417 | $ 103,221 | $ 102,318 | $ 95,829 | $ 113,786 | $ 99,832 | $ 100,329 | $ 90,950 | $ 418,785 | $ 404,897 | $ 383,414 |
Americas | |||||||||||
Segment Information | |||||||||||
Total net revenue | 135,683 | 145,689 | 151,442 | ||||||||
Europe, Middle East, India and Africa | |||||||||||
Segment Information | |||||||||||
Total net revenue | 149,095 | 120,032 | 104,026 | ||||||||
Asia Pacific | |||||||||||
Segment Information | |||||||||||
Total net revenue | 63,793 | 72,925 | 59,278 | ||||||||
Japan | |||||||||||
Segment Information | |||||||||||
Total net revenue | $ 70,214 | $ 66,251 | $ 68,668 |
Segment Disclosure - Schedule o
Segment Disclosure - Schedule of Geographic Areas in Which the Company has Long-Lived Tangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Segment Information | ||
Long lived tangible assets | $ 17,122 | $ 23,698 |
Americas | ||
Segment Information | ||
Long lived tangible assets | 13,853 | 19,698 |
Europe, Middle East, India and Africa | ||
Segment Information | ||
Long lived tangible assets | 575 | 569 |
Asia (excluding Japan and India) | ||
Segment Information | ||
Long lived tangible assets | 1,419 | 1,635 |
Japan | ||
Segment Information | ||
Long lived tangible assets | $ 1,275 | $ 1,796 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) | Oct. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Restructuring and Severance Charges | ||||
Accrued restructuring charges | $ 500,000 | |||
Employee severance | ||||
Restructuring and Severance Charges | ||||
Workforce affected by cost saving initiative (as a percent) | 5.00% | |||
Restructuring charges | 1,000,000 | $ 0 | $ 0 | |
Employee severance | Cost of Goods Sold and Operating Expense | ||||
Restructuring and Severance Charges | ||||
Restructuring charges | $ 1,500,000 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net revenue | $ 117,417 | $ 103,221 | $ 102,318 | $ 95,829 | $ 113,786 | $ 99,832 | $ 100,329 | $ 90,950 | $ 418,785 | $ 404,897 | $ 383,414 |
Gross profit | 45,926 | 40,466 | 38,380 | 37,879 | 47,985 | 36,249 | 39,355 | 38,106 | 162,651 | 161,695 | 141,341 |
Net loss | $ (1,400) | $ (1,184) | $ (4,640) | $ (9,206) | $ (946) | $ (8,852) | $ (4,719) | $ (9,382) | $ (16,430) | $ (23,899) | $ (29,579) |
Net loss per share—basic and diluted | $ (0.02) | $ (0.01) | $ (0.05) | $ (0.11) | $ (0.01) | $ (0.10) | $ (0.06) | $ (0.11) | $ (0.19) | $ (0.28) | $ (0.36) |
Shares used in basic and diluted per share calculation | 88,202 | 87,962 | 87,237 | 86,479 | 85,677 | 85,459 | 84,586 | 83,747 | 87,465 | 84,893 | 82,495 |