Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2017 | Feb. 06, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Focus | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | UBNT | |
Entity Registrant Name | Ubiquiti Networks, Inc. | |
Entity Central Index Key | 1,511,737 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 77,686,785 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 823,776 | $ 604,198 |
Accounts receivable, net of allowance for doubtful accounts of $461 and $440 at December 31, 2017 and June 30, 2017, respectively | 159,153 | 140,561 |
Inventories | 98,893 | 142,048 |
Vendor deposits | 54,523 | 54,082 |
Prepaid income taxes | 0 | 2,419 |
Prepaid expenses and other current assets | 11,295 | 9,026 |
Total current assets | 1,147,640 | 952,334 |
Property and equipment, net | 15,657 | 12,916 |
Long-term deferred tax assets | 2,880 | 5,133 |
Other long-term assets | 2,151 | 2,328 |
Total assets | 1,168,328 | 972,711 |
Current liabilities: | ||
Accounts payable | 11,947 | 49,008 |
Income taxes payable | 12,588 | 1,707 |
Debt - short-term | 14,743 | 14,743 |
Other current liabilities | 65,600 | 33,030 |
Total current liabilities | 104,878 | 98,488 |
Long-term taxes payable | 130,308 | 28,023 |
Debt - long-term | 452,950 | 241,821 |
Other long-term liabilities | 4,162 | 2,615 |
Total liabilities | 692,298 | 370,947 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock—$0.001 par value; 50,000,000 shares authorized; none issued | 0 | 0 |
Common stock—$0.001 par value; 500,000,000 shares authorized: 78,210,182 and 80,275,965 outstanding at December 31, 2017 and June 30, 2017, respectively | 78 | 80 |
Additional paid–in capital | 771 | 525 |
Retained earnings | 475,181 | 601,159 |
Total stockholders’ equity | 476,030 | 601,764 |
Total liabilities and stockholders’ equity | $ 1,168,328 | $ 972,711 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 461 | $ 440 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 77,645,785 | 80,275,965 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 250,811 | $ 213,536 | $ 496,679 | $ 418,293 |
Cost of revenues | 153,911 | 118,397 | 288,123 | 224,850 |
Gross profit | 96,900 | 95,139 | 208,556 | 193,443 |
Operating expenses: | ||||
Research and development | 20,468 | 16,338 | 37,396 | 30,877 |
Sales, general and administrative | 10,352 | 9,001 | 18,017 | 17,864 |
Total operating expenses | 30,820 | 25,339 | 55,413 | 48,741 |
Income from operations | 66,080 | 69,800 | 153,143 | 144,702 |
Interest expense and other, net | (2,492) | (1,170) | (3,853) | (2,269) |
Income before provision for income taxes | 63,588 | 68,630 | 149,290 | 142,433 |
Provision for income taxes | 115,047 | 8,022 | 125,824 | 10,037 |
Net (loss) income and comprehensive (loss) income | $ (51,459) | $ 60,608 | $ 23,466 | $ 132,396 |
Net (loss) income per share of common stock: | ||||
Net income per share of common stock, Basic (in usd per share) | $ (0.66) | $ 0.74 | $ 0.30 | $ 1.61 |
Net income per share of common stock, Diluted (in usd per share) | $ (0.66) | $ 0.72 | $ 0.29 | $ 1.58 |
Weighted average shares used in computing net (loss) income per share of common stock: | ||||
Basic (in shares) | 77,654 | 82,169 | 78,895 | 81,990 |
Diluted (in shares) | 77,654 | 83,888 | 80,494 | 83,875 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 23,466 | $ 132,396 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,415 | 3,363 |
Provision for inventory obsolescence | 3,151 | 1,484 |
Provision/(Recovery) for loss on vendor deposits & purchase commitments | 16,187 | (1,053) |
Stock-based compensation | 1,691 | 1,492 |
Deferred Taxes | 2,253 | 0 |
Other, net | 411 | 1,034 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (18,613) | (33,333) |
Inventories | 39,533 | (48,189) |
Vendor deposits | (11,153) | (5,759) |
Prepaid income taxes | 2,419 | (5,079) |
Prepaid expenses and other assets | (2,147) | (4,820) |
Accounts payable | (36,888) | 25,989 |
Income taxes payable | 113,166 | 2,175 |
Deferred revenues | 1,207 | 1,787 |
Accrued liabilities and other current liabilities | 27,568 | 4,184 |
Net cash provided by operating activities | 165,666 | 75,671 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment and other long-term assets | (6,195) | (2,836) |
Net cash (used in) investing activities | (6,195) | (2,836) |
Cash Flows from Financing Activities: | ||
Proceeds from revolver loan | 218,500 | 0 |
Repayments of term loan | (7,500) | (5,000) |
Repurchases of common stock | (151,255) | (6,483) |
Proceeds from exercise of stock options | 849 | 1,287 |
Tax withholdings related to net share settlements of restricted stock units | (487) | (945) |
Net cash (used in) provided by financing activities | 60,107 | (11,141) |
Net increase in cash and cash equivalents | 219,578 | 61,694 |
Cash and cash equivalents at beginning of period | 604,198 | 551,031 |
Cash and cash equivalents at end of period | 823,776 | 612,725 |
Non-Cash Investing Activities: | ||
Unpaid property and equipment and other long-term assets | $ 288 | $ 379 |
BUSINESS AND BASIS OF PRESENTAT
BUSINESS AND BASIS OF PRESENTATION | 6 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND BASIS OF PRESENTATION | BUSINESS AND BASIS OF PRESENTATION Business — Ubiquiti Networks, Inc. and its wholly owned subsidiaries (collectively, “Ubiquiti” or the “Company”) develop high performance networking technology for service providers, enterprises, and consumers globally. The Company operates on a fiscal year ending June 30. In this Quarterly Report, the fiscal year ending June 30, 2018 is referred to as “fiscal 2018 ” and the fiscal year ended June 30, 2017 is referred to as “fiscal 2017 ”. Basis of Presentation — The Company's consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) related to interim financial statements based on applicable Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. These consolidated financial statements reflect all adjustments, which are, in the opinion of the Company, of a normal and recurring nature and those necessary to state fairly the statements of financial position, results of operations and cash flows for the dates and periods presented. The June 30, 2017 balance sheet was derived from the audited financial statements as of that date. All significant intercompany transactions and balances have been eliminated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2017 , included in its Annual Report on Form 10-K, as filed with the SEC on August 25, 2017 (the “Annual Report”). The results of operations for the three and six months ended December 31, 2017 are not necessarily indicative of the results to be expected for any future periods. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company’s significant accounting policies are disclosed in its audited consolidated financial statements for the year ended June 30, 2017 , included in the Annual Report. Except as noted below, there have been no changes to the Company’s significant accounting policies as discussed in the Annual Report. Recent Accounting Standards or Updates Not Yet Effective In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, with amendments in 2015 and 2016, which creates new ASC Topic 606 ("Topic 606") that will replace most existing revenue recognition guidance in GAAP when it becomes effective. Topic 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard will be effective for the Company’s first quarter of fiscal year 2019. Topic 606 may be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. The Company is still completing its evaluation of the impact of adopting Topic 606 on its consolidated financial statements and related financial statement disclosures, including the transition method for its adoption of this standard in fiscal 2019. However, based upon our preliminary analysis performed to date, we currently do not expect the adoption of Topic 606 will have a material impact on the Company's consolidated financial statements and related financial statement disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize assets and liabilities on the balance sheet for leases with lease terms greater than twelve months and disclose key information about leasing arrangements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years, with early application permitted. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The accounting guidance establishes a three-tier fair value hierarchy that requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The fair value hierarchy prioritizes the inputs into three levels that may be used in measuring fair value as follows: Level 1 —observable inputs which include quoted prices in active markets for identical assets or liabilities. Level 2 —inputs which include observable inputs other than Level 1, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 —inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. For certain of the Company’s financial instruments, including cash, accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate fair value due to their short maturities. Additionally, as of December 31, 2017 , we held $676.0 million of our $823.8 million of cash and cash equivalents in accounts of our subsidiaries outside of the United States. As of December 31, 2017 and June 30, 2017 the Company had debt associated with its Amended Credit Agreement with Wells Fargo Bank (See Note 7), which are carried at historical cost. The fair value of the Company’s debt disclosed below was estimated based on the current rates offered to the Company for debt with similar terms and remaining maturities and was a Level 2 measurement. As of December 31, 2017 and June 30, 2017 , the fair value of the Company's debt carried at historical cost was $468.3 million and $257.3 million , respectively. |
(LOSS) EARNINGS PER SHARE
(LOSS) EARNINGS PER SHARE | 6 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
(LOSS) EARNINGS PER SHARE | (LOSS) EARNINGS PER SHARE The following table sets forth the computation of basic and diluted (loss) earnings per share for the periods indicated (in thousands, except per share data): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 Numerator: Net (loss) income and comprehensive (loss) income $ (51,459 ) $ 60,608 $ 23,466 $ 132,396 Denominator: Weighted-average shares used in computing basic (loss) earnings per share 77,654 82,169 78,895 81,990 Add—dilutive potential common shares: Stock options — 1,611 1,522 1,766 Restricted stock units — 108 77 119 Weighted-average shares used in computing diluted net (loss) income per share 77,654 83,888 80,494 83,875 Net (loss) income per share of common stock: Basic $ (0.66 ) $ 0.74 $ 0.30 $ 1.61 Diluted $ (0.66 ) $ 0.72 $ 0.29 $ 1.58 The Company excludes potentially dilutive securities from its diluted net (loss) income per share calculation when their effect would be anti-dilutive to net (loss) income per share amounts. The following table summarizes the total potential shares of common stock that were excluded from the diluted per share calculation as including them would have been anti-dilutive for the period (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 Restricted stock units 2 — 1 — Due to the net loss for the three months ended December 31, 2017, 1.5 million dilutive potential shares related to stock options and 0.1 million dilutive potential shares related to restricted stock units were excluded from the diluted per share calculation as including them would have been anti-dilutive for the period. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 6 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Inventories Inventories consisted of the following (in thousands): December 31, 2017 June 30, 2017 Finished goods $ 91,786 $ 133,832 Raw materials 7,107 8,216 Total $ 98,893 $ 142,048 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): December 31, 2017 June 30, 2017 Testing equipment $ 7,996 $ 7,587 Computer and other equipment 6,304 5,740 Tooling equipment 9,378 7,828 Furniture and fixtures 1,710 1,528 Leasehold improvements 9,395 6,424 Software 5,879 5,601 Property and Equipment, Gross 40,662 34,708 Less: Accumulated depreciation (25,005 ) (21,792 ) Property and Equipment, Net $ 15,657 $ 12,916 Other Long-term Assets Other long-term assets consisted of the following (in thousands): December 31, 2017 June 30, 2017 Intangible assets, net (1) $ 383 $ 437 Other long-term assets 1,768 1,891 Total $ 2,151 $ 2,328 (1) - Accumulated amortization was $1.3 million and $ 1.2 million as of December 31, 2017 and June 30, 2017 , respectively. Other Current Liabilities Other current liabilities consisted of the following (in thousands): December 31, 2017 June 30, 2017 Accrued expenses $ 14,995 $ 9,826 Accrued compensation and benefits 2,675 2,467 Warranty accrual 3,984 3,601 Deferred revenue - short term 6,415 5,254 Customer deposits 410 1,905 Reserve for sales returns 3,520 3,600 Other payables 33,601 6,377 Total $ 65,600 $ 33,030 Other Long Term Liabilities Other long-term liabilities consisted of the following (in thousands): December 31, 2017 June 30, 2017 Deferred Revenue - long term $ 2,634 $ 2,588 Other long-term liabilities 1,528 27 Total $ 4,162 $ 2,615 |
ACCRUED WARRANTY
ACCRUED WARRANTY | 6 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
ACCRUED WARRANTY | ACCRUED WARRANTY The Company offers warranties on certain products and records a liability for the estimated future costs associated with potential warranty claims. The warranty costs are reflected in the Company’s consolidated statements of operations and comprehensive income within cost of revenues. The warranties are typically in effect for twelve months from the distributor’s purchase date of the product. The Company’s estimate of future warranty costs is largely based on historical factors including product failure rates, material usage, and service delivery cost incurred in correcting product failures. In certain circumstances, the Company may have recourse from its contract manufacturers for replacement cost of defective products, which it also factors into its warranty liability assessment. Warranty obligations, included in other current liabilities, were as follows (in thousands): Six Months Ended December 31, 2017 2016 Beginning balance $ 3,601 $ 2,236 Accruals for warranties issued during the period 3,373 3,331 Changes in liability for pre-existing warranties during the period (343 ) 1,144 Settlements made during the period (2,647 ) (2,835 ) Ending balance $ 3,984 $ 3,876 |
DEBT
DEBT | 6 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT On March 3, 2015, Ubiquiti Networks, Inc. and Ubiquiti International Holding Company Limited (the “Cayman Borrower”) amended and restated its 2014 Credit Agreement (as defined below) with Wells Fargo Bank, National Association ("Wells Fargo"), the other financial institutions named as lenders therein, and Wells Fargo as administrative agent for the lenders (the "Credit Agreement"). The Credit Agreement replaced the Company's $150.0 million senior secured revolving credit facility under its prior credit agreement dated May 5, 2014 (the "2014 Credit Agreement"). On April 14, 2017, the Company, the Cayman Borrower and certain of its subsidiaries entered into the First Amendment (the “First Amendment”) to the Credit Agreement. The First Amendment increased the maximum aggregate amount of the senior secured credit revolving facility from $200.0 million to $300.0 million , but maintained the $100.0 million senior secured term facility under the Credit Agreement and the option to request increases in the amounts of such Facilities by up to an additional $125.0 million in the aggregate (any such increase to be in each lender’s sole discretion). On October 31, 2017, the Company, the Cayman Borrower and certain of its subsidiaries entered in the Second Amendment (the “Second Amendment”) to the Credit Agreement (as amended by the First Amendment and Second Amendment, the "Amended Credit Agreement"). The Second Amendment increased the maximum aggregate amount of the senior secured credit revolving facility (the "Revolving Facility") from $300.0 million to $425.0 million , but maintained the $100.0 million senior secured term facility ("Term Facility", together with the Revolving Facility, the "Facilities") under the Credit Agreement and the option to request increases in the amounts of such Facilities by up to an additional $50.0 million in the aggregate (any such increase to be in each lender’s sole discretion). All other material terms and provisions of the Credit Agreement remain substantially identical to the terms and provisions in place immediately prior to the effectiveness of the Second Amendment, other than the revision or inclusion of certain customary market provisions. The Amended Credit Agreement matures on March 3, 2020. The $100.0 million term loan facility of the Amended Credit Agreement was fully drawn at closing of the original Credit Agreement, and $72.3 million was used to repay the outstanding balance under its prior credit agreement. The Facilities are available for working capital and general corporate purposes that comply with the terms of the Amended Credit Agreement. On January 17, 2018, the Company, the Cayman Borrower and certain of its subsidiaries entered into an amended and restated credit agreement as further described in Note 14. Our Debt consisted of the following (in thousands): December 31, 2017 June 30, 2017 Term Loan - short term $ 15,000 $ 15,000 Debt issuance costs, net (257 ) (257 ) Total Debt - short term 14,743 14,743 Term Loan - long term 53,750 61,250 Revolver - long term 399,500 181,000 Debt issuance costs, net (300 ) (429 ) Total Debt - long term $ 452,950 $ 241,821 As of December 31, 2017 , the interest rate on the term loan was 2.94% . The table below shows the respective interest rates as of December 31, 2017 in addition to interest rate reset dates and rates as available for each revolver draw. Interest Rate as of Debt Payment Obligations December 31, 2017 Rate Reset Date Reset Rate $18 Million Revolver 2.99% * * $45 Million Revolver 3.03% * * $46 Million Revolver 2.98% * * $48 Million Revolver 3.07% * * $69 Million Revolver 2.87% * * $73.5 Million Revolver 2.87% * * $100 Million Revolver 2.88% * * * As of January 17, 2018, the Company has paid the principal and interest related to this revolver pursuant to the Amended and Restated Credit Agreement (see Note 14). The Revolving Facility includes a sub-limit of $10.0 million for letters of credit and a sub-limit of $25.0 million for swingline loans. The Facilities are available for working capital and general corporate purposes that comply with the terms of the Amended Credit Agreement. Under the Amended Credit Agreement, revolving loans and swingline loans may be borrowed, repaid and reborrowed until March 3, 2020, at which time all amounts borrowed must be repaid. The term loan is payable in quarterly installments of 3.75% of the original principal amount of the term loan, in each case plus accrued and unpaid interest. Revolving, swingline and term loans may be prepaid at any time without penalty. Revolving and term loans bear interest, at the Company’s option, at either (i) a floating rate per annum equal to the base rate plus a margin of between 0.50% and 1.25% , depending on the Company’s leverage ratio as of the most recently ended fiscal quarter or (ii) a floating per annum rate equal to the applicable LIBOR rate for a specified period, plus a margin of between 1.50% and 2.25% , depending on the Company’s leverage ratio as of the most recently ended fiscal quarter. Swingline loans bear interest at a floating rate per annum equal to the base rate plus a margin of between 0.50% and 1.25% , depending on the Company’s leverage ratio as of the most recently ended fiscal quarter. Base rate is defined as the greatest of (A) Wells Fargo's prime rate, (B) the federal funds rate plus 0.50% or (C) the applicable LIBOR rate for a period of one month plus 1.00% . A default interest rate shall apply on all obligations during certain events of default under the Amended Credit Agreement at a rate per annum equal to 2.00% above the applicable interest rate. The Company will pay to each lender a facility fee on a quarterly basis based on the unused amount of each lender's commitment to make revolving loans, of between 0.20% and 0.35% , depending on the Company's leverage ratio as of the most recently ended fiscal quarter. The Company will also pay to the applicable lenders on a quarterly basis certain fees based on the daily amount available to be drawn under each outstanding letter of credit, including aggregate letter of credit commissions of between 1.50% and 2.25% , depending on the Company's leverage ratio as of the most recently ended fiscal quarter, and issuance fees of 0.125% per annum. The Company is also obligated to pay Wells Fargo, as agent, fees customary for a credit facility of this size and type. The Amended Credit Agreement requires the Company to maintain during the term of the Facilities (i) a maximum leverage ratio of 2.50 to 1.00 and (ii) minimum liquidity of $250.0 million , which can be satisfied with unrestricted cash and cash equivalents and up to $50.0 million of availability under the Revolving Facility. All other material terms and provisions of the Amended Credit Agreement remain substantially identical to the terms and provisions in place immediately prior to the effectiveness of the Second Amendment, other than the revision or inclusion of certain customary market provisions. In addition, the Amended Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the ability of the Company and its subsidiaries to, among other things, grant liens or enter into agreements restricting their ability to grant liens on property, enter into mergers, dispose of assets, change their accounting or reporting policies, change their business and incur indebtedness, in each case subject to customary exceptions for a credit facility of this size and type. The Amended Credit Agreement includes customary events of default that include, among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments, change of control and certain ERISA events. The occurrence of an event of default could result in the acceleration of the obligations under the Amended Credit Agreement. The obligations of the Company and certain domestic subsidiaries, if any, under the Amended Credit Agreement are required to be guaranteed by such domestic subsidiaries (the "Domestic Guarantors") and are collateralized by substantially all assets (excluding intellectual property) of the Company and the Domestic Guarantors. The obligations of the Cayman Borrower and certain foreign subsidiaries under the Amended Credit Agreement are required to be guaranteed by certain domestic and material foreign subsidiaries (the "Guarantors") and are collateralized by substantially all assets (excluding intellectual property) of the Company and the Guarantors. During the three months ended December 31, 2017 , the Company made a payment of $4.3 million against the balance under the Term Facility, of which $3.8 million was a repayment of principal and $0.5 million was payment of interest. During the six months ended December 31, 2017 , the Company made aggregate payments of $8.6 million against the balance under the Term Facility, of which $7.5 million was a repayment of principal and $1.1 million was payment of interest. During the three months ended December 31, 2017 , the Company made a $2.5 million payment of interest under the Revolving Facility. During the six months ended December 31, 2017 , the Company made a $3.8 million payment of interest under the Revolving Facility. The following table summarizes our estimated debt and interest payment obligations as of December 31, 2017 , for the remainder of fiscal 2018 and future fiscal years (in thousands): 2018 (remainder) 2019 2020 2021 2022 Thereafter Total Debt payment obligations (2) $ 7,500 $ 15,000 $ 445,750 $ — $ — $ — $ 468,250 Interest and other payments on debt payment obligations (1)(2) 6,823 13,319 8,844 — — — 28,986 Total $ 14,323 $ 28,319 $ 454,594 $ — $ — $ — $ 497,236 (1) - Interest payments are calculated based on the applicable rates and payment dates as of December 31, 2017 . Furthermore, one to three-month payment intervals on the revolving debt have been assumed, consistent with the Company's elections to date. (2) As of January 17, 2018, the Company has paid the principal and interest related to this revolver pursuant to the Amended and Restated Credit Agreement (see Note 14). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases Certain facilities and equipment are leased under non-cancelable operating leases. The Company generally pays taxes, insurance and maintenance costs on leased facilities and equipment. The Company leases its headquarters in New York, New York and other locations under non-cancelable operating leases that expire at various dates through fiscal 2023 . At December 31, 2017 , future minimum annual payments under operating leases for the remainder of fiscal 2018 and future fiscal years are as follows (in thousands): 2018 (remainder) 2019 2020 2021 2022 Thereafter Total Operating leases $ 2,473 $ 3,383 $ 2,963 $ 1,811 $ 1,047 $ 604 $ 12,281 Purchase Obligations The Company subcontracts with other companies to manufacture our products. During the normal course of business, our contract manufacturers procure components based upon orders placed by us. If we cancel all or part of the orders, we may still be liable to the contract manufacturers for the cost of the components purchased by them to manufacture our products. We periodically review the potential liability under the orders, and to date, no significant liabilities for cancellations have been recorded. Our consolidated financial position and results of operations could be negatively impacted if we were required to compensate the contract manufacturers for unrecorded liabilities incurred. We had inventory purchase obligations of $19.6 million for finished goods and $5.5 million for raw materials as of December 31, 2017 . Other Obligations The Company had other obligations of $0.9 million as of December 31, 2017 , which consisted primarily of commitments related to research and development projects. Indemnification Obligations The Company enters into standard indemnification agreements with many of its business partners in the ordinary course of business. These agreements include provisions for indemnifying the business partner against any claim brought by a third-party to the extent any such claim alleges that a Company product infringes a patent, copyright or trademark, or violates any other proprietary rights of that third-party. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is not estimable and the Company has not incurred any material costs to defend lawsuits or settle claims related to these indemnification agreements to date. Legal Matters The Company may be involved, from time to time, in a variety of claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters and other litigation matters relating to various claims that arise in the normal course of business. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using available information. The Company develops its views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. Taking all of the above factors into account, the Company records an amount where it is probable that the Company will incur a loss and where that loss can be reasonably estimated. However, the Company’s estimates may be incorrect and the Company could ultimately incur more or less than the amounts initially recorded. The Company may also incur significant legal fees, which are expensed as incurred, in defending against these claims. The Company is not currently aware of any pending or threatened litigation that would have a material adverse effect on the Company's financial statements. Shareholder Class Action Lawsuits Beginning on September 7, 2012, two class action lawsuits were filed in the United States District Court for the Northern District of California (the “Court”) against Ubiquiti Networks, Inc., certain of its officers and directors, and the underwriters of its initial public offering, alleging claims under U.S. securities laws (collectively, the “Shareholder Lawsuit”). On January 30, 2013, the plaintiffs filed an amended consolidated complaint. On March 26, 2014, the court issued an order granting a motion to dismiss the complaint with leave to amend. Following the plaintiffs’ decision not to file an amended complaint, on April 16, 2014, the court ordered the dismissal of the lawsuit with prejudice, and entered judgment in favor of the Company and the other defendants, and against the plaintiffs. On May 15, 2014, the plaintiffs filed a notice of appeal from the judgment of the court. The Ninth Circuit heard oral arguments on August 10, 2015. On October 24, 2016, the Ninth Circuit issued an unpublished memorandum opinion, reaffirming the district court’s dismissal of the alleged violations of Section10(b) and 20(a) of the Securities Exchange Act of 1934 and reversing the district court’s dismissal of the alleged violations of Section 11 and 15 of the Securities Act of 1933. On August 4, 2017, the parties to the Shareholder Lawsuit filed with the Court a settlement that they reached to resolve the Shareholder Lawsuit against the defendants. Pursuant to the settlement stipulation and subject to certain conditions therein, the settlement class will receive $6.8 million , funded largely by the Company’s insurance carriers. The settlement was approved by the district court and final judgment was entered on December 20, 2017. Gericke and Klein Shareholder Action On September 25, 2017, a purported class action, captioned Richard Gericke v. Ubiquiti Networks, Inc. et al., No. 17-cv-7279 (the "Gericke Action"), was filed in the United States District Court for the Southern District of New York against the Company and certain of its current and former officers and directors. The Gericke Action complaint alleged that the defendants made misrepresentations in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making false and/or misleading statements and failing to disclose material adverse facts about the Company's business, operations, and prospects. On October 2, 2017, a substantially similar purported class action, captioned Gabby Klein v. Ubiquiti Networks, Inc. et al., No. 17-cv-7524 (the “Klein Action”), was filed in the Southern District of New York, as previously disclosed in Note 14 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2017. The Gerick and Klein Actions were voluntarily dismissed without prejudice on November 20, 2017 and November 29, 2017, respectively. Synopsys On February 3, 2017, Synopsys, Inc. (“Synopsys”) filed a complaint against the Company, one of our subsidiaries and an employee in the United States District Court for the Northern District of California, alleging claims under the Digital Millennium Copyright Act (“DMCA”). On March 28, 2017, Synopsys filed an amended complaint alleging (i) additional claims under the DMCA, (ii) claims under the Anti-Counterfeiting Act, and (iii) claims for label trafficking, fraud, civil RICO and negligent misrepresentation. On April 11, 2017, the Company moved to dismiss all but the initial DMCA claim in the amended complaint and its subsidiary moved to dismiss for lack of personal jurisdiction and joined the Company’s motion to dismiss certain claims. On August 15, 2017, the court issued an order granting the Company’s motion to dismiss the Anti- Counterfeiting Act claim and certain of the predicate acts alleged under the civil RICO claim. The court denied the motion to dismiss the remaining claims, and denied the subsidiary’s motion to dismiss for lack of jurisdiction. On September 5, 2017, Synopsys filed a Second Amended Complaint. On September 19, 2017, the defendants answered, and Ubiquiti Networks International Limited (“UNIL”) filed counterclaims for (1) declaratory judgment under 17 U.S.C. § 1201, (2) violation of 18 U.S.C. § 1030, the Computer Fraud and Abuse Act, (3) violation of California Penal Code § 502, the Computer Data Access Fraud Act, (4) trespass to personal property and chattels, (5) conversion, (6) civil RICO pursuant to 18 U.S.C. § 1962(c), (7) RICO conspiracy pursuant to 18 U.S.C. § 1962(d), and (8) common law fraud. Ubiquiti also moved for leave to amend its existing counterclaims against Synopsys, for breach of contract and declaratory judgment under 17 U.S.C. § 1201, to include the counterclaims filed by UNIL. On October 3, 2017, Synopsys filed its opposition to the Company’s motion for leave to amend its counterclaims, as well as a motion to dismiss UNIL’s counterclaims and an anti-SLAPP motion to strike state law claims by both the Company and UNIL. The Company plans to vigorously defend itself against these claims; however, there can be no assurance that the Company will prevail in the lawsuit. The Company cannot currently estimate the possible loss or range of losses, if any, that it may experience in connection with this litigation. Vivato/XR On April 19, 2017, XR Communications, LLC, d/b/a Vivato Technologies (“Vivato”), filed a complaint against the Company in the United States District Court for the Central District of California, alleging that at least one of the Company’s products infringes United States Patent Numbers 7,062,296 (the “’296 Patent”), 7,729,728 (the “’728 Patent”), and 6,611,231 (the “’231 Patent and, collectively, the “Patents-in-Suit”). The ‘296 and ‘728 Patents are entitled “Forced Beam Switching in Wireless Communication Systems Having Smart Antennas.” The ‘231 Patent is entitled “Wireless Packet Switched Communications Systems and Networks Using Adaptively Steered Antenna Arrays.” Vivato amended its complaint on June 23, 2017 and again on July 6, 2017. According to the complaint, the products accused of infringing the Patents-in-Suit include Wi-Fi access points and routers supporting MU-MIMO, including without limitation access points and routers utilizing the IEEE 802.11ac-2013 standard. Vivato has also recently filed nine other lawsuits asserting the same patents against other defendants in the Central District of California. The Company plans to vigorously defend itself against these claims; however, there can be no assurance that the Company will prevail in the lawsuit. The Company cannot currently estimate the possible loss or range of losses, if any, that it may experience in connection with this litigation. |
COMMON STOCK AND TREASURY STOCK
COMMON STOCK AND TREASURY STOCK | 6 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
COMMON STOCK AND TREASURY STOCK | COMMON STOCK AND TREASURY STOCK As of December 31, 2017 and June 30, 2017 , the authorized capital of the Company included 500,000,000 shares of common stock. As of December 31, 2017 and June 30, 2017 , there were 77,645,785 and 80,275,965 shares of common stock outstanding, respectively. Common Stock Repurchases On March 3, 2017, the Board of Directors of the Company approved a $50 million stock repurchase program. Under the stock repurchase program, the Company may repurchase up to $50 million of its common stock. The program expires on March 31, 2018. During the third quarter of fiscal 2017, the Company repurchased and retired 917,455 shares of its common stock at an average price per share of $50.43 for an aggregate amount of $46.3 million . This included unpaid stock repurchases of $3.0 million relating to repurchases executed on or prior to March 31, 2017 for trades that settled in the fourth quarter of fiscal 2017. During the fourth quarter of fiscal 2017, the Company repurchased and retired 50,000 shares of its common stock at an average price per share of $ 49.55 for an aggregate amount of $2.5 million . As of June 30, 2017, the Company had $1.3 million available under the stock repurchase program. During the first quarter of fiscal 2018, the Board of Directors of the Company approved a $50 million stock repurchase program on September 5, 2017 and an additional $100 million stock repurchase program on September 18, 2017. Both programs expire on September 30, 2018. Under these authorizations, in addition to the $1.3 million available under the March 3, 2017 stock repurchase plan, the Company repurchased and retired 2,148,832 shares of common stock at an average price per share of $54.34 for an aggregate amount of $116.8 million . This included unpaid stock repurchases of $8.8 million relating to repurchases executed on or prior to September 30, 2017 for trades settled in the second quarter of fiscal 2018. As of September 30, 2017, the Company had $34.5 million available under the stock repurchase program. During the second quarter of fiscal 2018, the Company repurchased and retired 602,192 shares of its common stock at an average price per share of $ 57.28 for an aggregate amount of $34.5 million . As of October 6, 2017, there is no remaining balance available for share repurchases under the share repurchase programs approved by the Board of directors in the first quarter of fiscal 2018. On November 8, 2017, the Board of Directors of the Company approved a $50 million stock repurchase program (the "November Program"). Under the November Program, the Company may repurchase up to $50 million of its common stock. The November Program expires on December 31, 2018. As of February 8, 2018 , the Company had $50 million available under the November Program. On February 6, 2018, the Board of Directors of the Company approved a new $150 million stock repurchase program (the “New Program”). Under the New Program, the Company may repurchase up to $150 million of its common stock. The New Program expires on December 31, 2018. See Note 14 for further detail. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION Stock-Based Compensation Plans The Company’s 2010 Equity Incentive Plan and 2005 Equity Incentive Plan are described in its Annual Report. As of December 31, 2017 , the Company had 10,010,412 authorized shares available for future issuance under all of its stock incentive plans. Stock-Based Compensation The following table shows total stock-based compensation expense included in the Consolidated Statements of Operations for the three and six months ended December 31, 2017 and 2016 (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 Cost of revenues $ 40 $ 30 $ 285 $ 174 Research and development 370 381 826 941 Sales, general and administrative 370 155 581 378 $ 780 $ 566 $ 1,692 $ 1,493 Stock Options The following is a summary of option activity for the Company’s stock incentive plans for the six months ended December 31, 2017 : Common Stock Options Outstanding Number Weighted Weighted Aggregate Balance, June 30, 2017 1,621,601 $ 1.76 1.55 $ 81,413 Exercised (97,667 ) $ 8.70 Balance, December 31, 2017 1,523,934 $ 1.32 0.82 $ 106,218 Vested as of December 31, 2017 1,523,934 $ 1.32 0.82 $ 106,218 Vested and exercisable as of December 31, 2017 1,523,934 $ 1.32 0.82 $ 106,218 During the three months ended December 31, 2017 and 2016 , the aggregate intrinsic value of options exercised under the Company’s stock incentive plans was $1.7 million and $3.5 million , respectively, as determined as of the date of option exercise. During the six months ended December 31, 2017 and 2016 , the aggregate intrinsic value of options exercised under the Company's stock incentive plans was $5.5 million and $24.2 million , respectively, as determined as of the date of the option exercise. As of December 31, 2017 , the Company had no unrecognized compensation costs related to stock options. The Company estimates the fair value of employee stock options using the Black-Scholes option pricing model. The fair value of employee stock options is amortized on a straight-line basis over the requisite service period of the awards. The Company did not grant any employee stock options during the three and six months ended December 31, 2017 and 2016 . Restricted Stock Units (“RSUs”) The following table summarizes the activity of the RSUs made by the Company: Number of Shares Weighted Average Grant Date Fair Value Per Share Non-vested RSUs, June 30, 2017 180,373 $ 40.51 RSUs granted 44,074 $ 62.43 RSUs vested (32,904 ) $ 35.41 RSUs canceled (18,477 ) $ 40.52 Non-vested RSUs, December 31, 2017 173,066 $ 47.06 The intrinsic value of RSUs vested in the three months ended December 31, 2017 and 2016 was $0.6 million and $0.9 million , respectively. The intrinsic value of RSUs vested in the six months ended December 31, 2017 and 2016 was $ 1.9 million and $3.7 million , respectively. The total intrinsic value of all outstanding RSUs was $12.3 million as of December 31, 2017 . As of December 31, 2017 , there were unrecognized compensation costs related to RSUs of $5.7 million which the Company expects to recognize over a weighted average period of 3.4 years . |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the U.S. government enacted a comprehensive tax legislation, commonly referred to as the U.S. Tax Cuts and Jobs Act (the “2017 Tax Act”). The primary impact of the 2017 Tax Act in fiscal year 2018 is a reduction of the Company’s federal statutory tax rate from 35% to 28% and taxation of the accumulated unremitted earnings of the Company’s foreign subsidiaries (“Repatriation Tax”). Accumulated unremitted earnings are taxed at a rate of 15.5% to the extent of the aggregate foreign cash position of the Company’s foreign subsidiaries and a rate of 8% to the extent that accumulated unremitted earnings exceeds the aggregate foreign cash position. The 2017 Tax Act allows the Company to elect to pay the Repatriation Tax in eight annual interest free installments beginning in September 2018, although for accounting purposes the Company recorded our provisional estimate of the entire Repatriation tax in the second quarter of fiscal year 2018. The 2017 Tax Act has other provisions that will significantly impact the Company beginning in fiscal year 2019, including a further reduction of the federal statutory tax rate to 21% and provisions such as Global Intangible Low Tax Income and Base Erosion Anti-Abuse Tax that may impact taxation of the Company’s international earnings. The Company is still considering the impact of these provisions on its effective tax rate in fiscal year 2019 and future years. Securities and Exchange Commission (“SEC”) staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance that companies should apply each reporting period related to the income tax effects of the 2017 Tax Act. SAB 118 provides that companies (i) should record the effects of the changes from the 2017 Tax Act for which the accounting is complete (not provisional), (ii) should record provisional amounts for the effects of the changes from the 2017 Tax Act for which the accounting is not complete, and for which reasonable estimates can be determined, in the period they are identified, and (iii) should not record provisional amounts if reasonable estimates cannot be made for the effects of the changes from the 2017 Tax Cut, and should continue to apply guidance based on the tax law in effect prior to the enactment on December 22, 2017. In addition, SAB 118 establishes a one-year measurement period (through December 22, 2018) where a provisional amount could be subject to adjustment, and requires certain qualitative and quantitative disclosures related to provisional amounts and accounting during the measurement period. The Company recorded a tax provision of $115.0 million and $125.8 million for the three and six months ended December 31, 2017 as compared to $8.0 million and $10.0 million for the three and six months ended December 31, 2016 . The tax provision for the three and six months ended December 31, 2017 reflects provisional charges under SAB 118 of $110.5 million for Repatriation Tax and $2.3 million for the remeasurement of deferred tax assets and liabilities to reflect the U.S. Federal statutory rate reductions in the Tax Act. The Company’s estimated fiscal year 2018 effective tax rate differs from the U.S. statutory rate primarily due to profits earned in jurisdictions where the tax rate is lower than the U.S. tax rate and due to the impact of the 2017 Tax Act. The U.S. Department of Treasury has issued guidance regarding the Repatriation Tax and we expect that they will issue additional guidance. Based on the information currently available, we can make a reasonable estimate of the Repatriation Tax and therefore recorded a provisional Repatriation Tax of $110.5 million , however, we are continuing to gather additional information and analyze the available authorities to more precisely compute the amount of the Repatriation Tax. As of December 31, 2017 , the Company had approximately $27.6 million of unrecognized tax benefits, substantially all of which would, if recognized, affect its tax expense. The Company recorded a net decrease of its unrecognized tax benefits of $1.2 million for the three months ended December 31, 2017 . The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Operations and Comprehensive Income. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. As of December 31, 2017 , the Company had $2.1 million accrued interest related to uncertain tax matters. The Company believes that it is reasonably possible that a decrease of up to $4 million in unrecognized tax benefits may occur due to settlements with tax authorities or statute lapse. On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. On June 27, 2016, the Internal Revenue Service appealed the court's decision to the Ninth Circuit Court of Appeals. On November 10, 2016, the Internal Revenue Service filed its reply brief. We have reviewed this case and its potential impact on Ubiquiti and concluded that no adjustment to the consolidated financial statements is appropriate at this time. We will continue to monitor ongoing developments and potential impacts to our consolidated financial statements. |
SEGMENT INFORMATION, REVENUES B
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS | 6 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS | SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS Management has determined that the Company operates as one reportable and operating segment as it only reports financial information on an aggregate and consolidated basis to its Chief Executive Officer, who is the Company’s Chief Operating Decision Maker. Furthermore, the Company does not organize or report its costs on a segment basis. The Company presents its revenues by product type in two primary categories, including Service Provider Technology and Enterprise Technology. • Service Provider Technology includes our airMAX, EdgeMAX, UFiber and airFiber platforms, as well as embedded radio products and other 802.11 standard products including base stations, radios, backhaul equipment and Customer Premise Equipment (“CPE”). Additionally, Service Provider Technology includes antennas and other products in the 0.9 to 6.0GHz spectrum and miscellaneous products such as mounting brackets, cables and power over Ethernet adapters. • Enterprise Technology includes our UniFi and mFi platforms, including UniFi enterprise Wi-Fi products, Unifi Video products, Unifi switching and routing solutions. Enterprise Technology also includes FrontRow and AmpliFi products and revenues that are attributable to PCS. Revenues by product type are as follows (in thousands, except percentages): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 Service Provider Technology $ 119,852 48 % $ 115,580 54 % $ 239,767 48 % $ 236,212 56 % Enterprise Technology 130,959 52 % 97,956 46 % 256,912 52 % 182,081 44 % Total revenues $ 250,811 100 % $ 213,536 100 % $ 496,679 100 % $ 418,293 100 % Revenues by geography based on customer’s ship-to destinations were as follows (in thousands, except percentages): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 North America (1) $ 94,957 38 % $ 94,609 44 % $ 191,127 38 % $ 168,774 40 % South America 20,746 8 % 19,285 9 % 51,799 10 % 43,469 10 % Europe, the Middle East and Africa ("EMEA") 102,026 41 % 77,381 36 % 195,340 39 % 158,756 38 % Asia Pacific 33,082 13 % 22,261 11 % 58,413 13 % 47,294 12 % Total revenues $ 250,811 100 % $ 213,536 100 % $ 496,679 100 % $ 418,293 100 % (1) Revenue for the United States was $89.8 million and $90.2 million for the three months ended December 31, 2017 and 2016 , respectively. Revenue for the United States was $181.7 million and $160.8 million for the six months ended December 31, 2017 and 2016 , respectively. Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated: Percentage of Revenues Percentage of Accounts Receivable Three Months Ended December 31, Six Months Ended December 31, December 31, June 30, 2017 2016 2017 2016 2017 2017 Customer A * * * * 12% * Customer B 13% * 11% * 15% 12% Customer C * 12% * 11% 10% 18% * denotes less than 10% |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS | 6 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS | RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS Aircraft Lease Agreement On November 13, 2013, the Company entered into an aircraft lease agreement (the “Aircraft Lease Agreement”) with RJP Manageco LLC (the “Lessor”), a limited liability company owned by the Company’s CEO, Robert J. Pera. Pursuant to the Aircraft Lease Agreement, the Company may lease an aircraft owned by the Lessor for Company business purposes. Under the Aircraft Lease Agreement, the aircraft may be leased at a rate of $ 5,000 per flight hour. This hourly rate does not include the cost of flight crew or on-board services, which the Company purchases from a third-party provider. The Company recognized a total of approximately $0.4 million and $0.7 million in expenses pursuant to the Aircraft Lease Agreement during the three and six months ended December 31, 2017 , respectively. The Company recognized a total of approximately $0.5 million and $1.2 million in expenses pursuant to the Aircraft Lease Agreement during the three and six months ended December 31, 2016 , respectively. All expenses pursuant to the Aircraft Lease Agreement have been included in the Company’s sales, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive (Loss) Income. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Second Amended and Restated Credit Agreement On January 17, 2018, the Company, the Cayman Borrower and certain of its subsidiaries entered into an amended and restated credit agreement (the "Second Amended & Restated Credit Agreement") with Wells Fargo, the other financial institutions names as lenders therein, and Wells Fargo as administrative agent for the lenders, that provides for a $400 million senior secured revolving credit facility and a $ 500 million senior secured term loan facility (collectively, the "Amended Facilities"), with an option to request increase in the amounts of such credit facilities by up to an additional $300 million in the aggregate (any such increase to be in each lender's sole discretion). The revolving credit facility includes a sub-limit of $10 million for letters of credit and a sub-limit of $25 million for swingline loans. The revolving credit facility requires the Company to maintain during the term of the Facilities (i) a maximum consolidated total leverage ratio of 3.25 to 1.00 and (ii) minimum liquidity of $250 million , which can be satisfied with unrestricted cash and cash equivalents and up to $50 million of availability under the revolving credit facility. The Amended Facilities replace the Company's Amended Credit Agreement. The Amended Facilities are available for working capital and general corporate purposes that comply with the terms of the Credit Agreement, including to finance the repurchase of the Company's common stock or to make dividends to the holders of the Company's common stock. Under the Second Amended & Restated Credit Agreement, revolving loans and swingline loans may be borrowed, repaid and reborrowed until January 17, 2023, at which time all amounts borrowed must be repaid. The term loan facility was drawn in full at closing, with a portion thereof used to refinance the Existing Facility, and matures on January 17, 2023. Repurchase Program On February 6, 2018, the Board approved a new $150 million stock repurchase program (the “New Program”). Under the New Program, the Company may repurchase up to $150 million of its common stock. The New Program expires on December 31, 2018. As part of the New Program, shares may be purchased from time to time, depending upon market conditions, in open market transactions, including through block purchases, through privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Exchange Act. The timing, manner, price and amount of any repurchases will be determined in the Company’s discretion and the New Program may be suspended, terminated or modified at any time for any reason. The New Program does not obligate the Company to acquire any specific number of shares, and all open market repurchases will be made in accordance with Rule 10b-18 of the Exchange Act, which sets certain restrictions on the method, timing, price and volume of open market stock repurchases. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The Company's consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) related to interim financial statements based on applicable Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. These consolidated financial statements reflect all adjustments, which are, in the opinion of the Company, of a normal and recurring nature and those necessary to state fairly the statements of financial position, results of operations and cash flows for the dates and periods presented. The June 30, 2017 balance sheet was derived from the audited financial statements as of that date. All significant intercompany transactions and balances have been eliminated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2017 , included in its Annual Report on Form 10-K, as filed with the SEC on August 25, 2017 (the “Annual Report”). The results of operations for the three and six months ended December 31, 2017 are not necessarily indicative of the results to be expected for any future periods. |
New Accounting Updates Recently Adopted and Recent Accounting Standards or Updates Not Yet Effective | Recent Accounting Standards or Updates Not Yet Effective In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, with amendments in 2015 and 2016, which creates new ASC Topic 606 ("Topic 606") that will replace most existing revenue recognition guidance in GAAP when it becomes effective. Topic 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard will be effective for the Company’s first quarter of fiscal year 2019. Topic 606 may be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. The Company is still completing its evaluation of the impact of adopting Topic 606 on its consolidated financial statements and related financial statement disclosures, including the transition method for its adoption of this standard in fiscal 2019. However, based upon our preliminary analysis performed to date, we currently do not expect the adoption of Topic 606 will have a material impact on the Company's consolidated financial statements and related financial statement disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize assets and liabilities on the balance sheet for leases with lease terms greater than twelve months and disclose key information about leasing arrangements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years, with early application permitted. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. |
(LOSS) EARNINGS PER SHARE (Tabl
(LOSS) EARNINGS PER SHARE (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted (loss) earnings per share for the periods indicated (in thousands, except per share data): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 Numerator: Net (loss) income and comprehensive (loss) income $ (51,459 ) $ 60,608 $ 23,466 $ 132,396 Denominator: Weighted-average shares used in computing basic (loss) earnings per share 77,654 82,169 78,895 81,990 Add—dilutive potential common shares: Stock options — 1,611 1,522 1,766 Restricted stock units — 108 77 119 Weighted-average shares used in computing diluted net (loss) income per share 77,654 83,888 80,494 83,875 Net (loss) income per share of common stock: Basic $ (0.66 ) $ 0.74 $ 0.30 $ 1.61 Diluted $ (0.66 ) $ 0.72 $ 0.29 $ 1.58 |
Potential shares of common stock excluded from diluted per share calculation | The following table summarizes the total potential shares of common stock that were excluded from the diluted per share calculation as including them would have been anti-dilutive for the period (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 Restricted stock units 2 — 1 — |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): December 31, 2017 June 30, 2017 Finished goods $ 91,786 $ 133,832 Raw materials 7,107 8,216 Total $ 98,893 $ 142,048 |
Property and equipment, net | Property and equipment, net consisted of the following (in thousands): December 31, 2017 June 30, 2017 Testing equipment $ 7,996 $ 7,587 Computer and other equipment 6,304 5,740 Tooling equipment 9,378 7,828 Furniture and fixtures 1,710 1,528 Leasehold improvements 9,395 6,424 Software 5,879 5,601 Property and Equipment, Gross 40,662 34,708 Less: Accumulated depreciation (25,005 ) (21,792 ) Property and Equipment, Net $ 15,657 $ 12,916 |
Other Long-term Assets | Other long-term assets consisted of the following (in thousands): December 31, 2017 June 30, 2017 Intangible assets, net (1) $ 383 $ 437 Other long-term assets 1,768 1,891 Total $ 2,151 $ 2,328 (1) - Accumulated amortization was $1.3 million and $ 1.2 million as of December 31, 2017 and June 30, 2017 , respectively. |
Other Current Liabilities | Other current liabilities consisted of the following (in thousands): December 31, 2017 June 30, 2017 Accrued expenses $ 14,995 $ 9,826 Accrued compensation and benefits 2,675 2,467 Warranty accrual 3,984 3,601 Deferred revenue - short term 6,415 5,254 Customer deposits 410 1,905 Reserve for sales returns 3,520 3,600 Other payables 33,601 6,377 Total $ 65,600 $ 33,030 |
Other Long Term Liabilities | Other long-term liabilities consisted of the following (in thousands): December 31, 2017 June 30, 2017 Deferred Revenue - long term $ 2,634 $ 2,588 Other long-term liabilities 1,528 27 Total $ 4,162 $ 2,615 |
ACCRUED WARRANTY (Tables)
ACCRUED WARRANTY (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Warranty obligations | Warranty obligations, included in other current liabilities, were as follows (in thousands): Six Months Ended December 31, 2017 2016 Beginning balance $ 3,601 $ 2,236 Accruals for warranties issued during the period 3,373 3,331 Changes in liability for pre-existing warranties during the period (343 ) 1,144 Settlements made during the period (2,647 ) (2,835 ) Ending balance $ 3,984 $ 3,876 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes our estimated debt and interest payment obligations as of December 31, 2017 , for the remainder of fiscal 2018 and future fiscal years (in thousands): 2018 (remainder) 2019 2020 2021 2022 Thereafter Total Debt payment obligations (2) $ 7,500 $ 15,000 $ 445,750 $ — $ — $ — $ 468,250 Interest and other payments on debt payment obligations (1)(2) 6,823 13,319 8,844 — — — 28,986 Total $ 14,323 $ 28,319 $ 454,594 $ — $ — $ — $ 497,236 (1) - Interest payments are calculated based on the applicable rates and payment dates as of December 31, 2017 . Furthermore, one to three-month payment intervals on the revolving debt have been assumed, consistent with the Company's elections to date. (2) As of January 17, 2018, the Company has paid the principal and interest related to this revolver pursuant to the Amended and Restated Credit Agreement (see Note 14). Our Debt consisted of the following (in thousands): December 31, 2017 June 30, 2017 Term Loan - short term $ 15,000 $ 15,000 Debt issuance costs, net (257 ) (257 ) Total Debt - short term 14,743 14,743 Term Loan - long term 53,750 61,250 Revolver - long term 399,500 181,000 Debt issuance costs, net (300 ) (429 ) Total Debt - long term $ 452,950 $ 241,821 |
Summary of interest rates | The table below shows the respective interest rates as of December 31, 2017 in addition to interest rate reset dates and rates as available for each revolver draw. Interest Rate as of Debt Payment Obligations December 31, 2017 Rate Reset Date Reset Rate $18 Million Revolver 2.99% * * $45 Million Revolver 3.03% * * $46 Million Revolver 2.98% * * $48 Million Revolver 3.07% * * $69 Million Revolver 2.87% * * $73.5 Million Revolver 2.87% * * $100 Million Revolver 2.88% * * * As of January 17, 2018, the Company has paid the principal and interest related to this revolver pursuant to the Amended and Restated Credit Agreement (see Note 14). |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum annual payments under operating leases | At December 31, 2017 , future minimum annual payments under operating leases for the remainder of fiscal 2018 and future fiscal years are as follows (in thousands): 2018 (remainder) 2019 2020 2021 2022 Thereafter Total Operating leases $ 2,473 $ 3,383 $ 2,963 $ 1,811 $ 1,047 $ 604 $ 12,281 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation expense | The following table shows total stock-based compensation expense included in the Consolidated Statements of Operations for the three and six months ended December 31, 2017 and 2016 (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 Cost of revenues $ 40 $ 30 $ 285 $ 174 Research and development 370 381 826 941 Sales, general and administrative 370 155 581 378 $ 780 $ 566 $ 1,692 $ 1,493 |
Summary of option activity for the company's stock incentive plans | The following is a summary of option activity for the Company’s stock incentive plans for the six months ended December 31, 2017 : Common Stock Options Outstanding Number Weighted Weighted Aggregate Balance, June 30, 2017 1,621,601 $ 1.76 1.55 $ 81,413 Exercised (97,667 ) $ 8.70 Balance, December 31, 2017 1,523,934 $ 1.32 0.82 $ 106,218 Vested as of December 31, 2017 1,523,934 $ 1.32 0.82 $ 106,218 Vested and exercisable as of December 31, 2017 1,523,934 $ 1.32 0.82 $ 106,218 |
Activity of RSUs | The following table summarizes the activity of the RSUs made by the Company: Number of Shares Weighted Average Grant Date Fair Value Per Share Non-vested RSUs, June 30, 2017 180,373 $ 40.51 RSUs granted 44,074 $ 62.43 RSUs vested (32,904 ) $ 35.41 RSUs canceled (18,477 ) $ 40.52 Non-vested RSUs, December 31, 2017 173,066 $ 47.06 |
SEGMENT INFORMATION, REVENUES27
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenues by product | Revenues by product type are as follows (in thousands, except percentages): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 Service Provider Technology $ 119,852 48 % $ 115,580 54 % $ 239,767 48 % $ 236,212 56 % Enterprise Technology 130,959 52 % 97,956 46 % 256,912 52 % 182,081 44 % Total revenues $ 250,811 100 % $ 213,536 100 % $ 496,679 100 % $ 418,293 100 % |
Revenues by geography | Revenues by geography based on customer’s ship-to destinations were as follows (in thousands, except percentages): Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 North America (1) $ 94,957 38 % $ 94,609 44 % $ 191,127 38 % $ 168,774 40 % South America 20,746 8 % 19,285 9 % 51,799 10 % 43,469 10 % Europe, the Middle East and Africa ("EMEA") 102,026 41 % 77,381 36 % 195,340 39 % 158,756 38 % Asia Pacific 33,082 13 % 22,261 11 % 58,413 13 % 47,294 12 % Total revenues $ 250,811 100 % $ 213,536 100 % $ 496,679 100 % $ 418,293 100 % (1) Revenue for the United States was $89.8 million and $90.2 million for the three months ended December 31, 2017 and 2016 , respectively. |
Percentage of revenue and accounts receivable | Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated: Percentage of Revenues Percentage of Accounts Receivable Three Months Ended December 31, Six Months Ended December 31, December 31, June 30, 2017 2016 2017 2016 2017 2017 Customer A * * * * 12% * Customer B 13% * 11% * 15% 12% Customer C * 12% * 11% 10% 18% * denotes less than 10% |
FAIR VALUE OF FINANCIAL INSTR28
FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Fair Value Disclosures [Abstract] | ||||
Deposits of cash outside the United States | $ 676,000 | |||
Cash and cash equivalents | 823,776 | $ 604,198 | $ 612,725 | $ 551,031 |
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt | $ 468,300 | $ 257,300 |
(LOSS) EARNINGS PER SHARE - Co
(LOSS) EARNINGS PER SHARE - Computation of basic and diluted earnings per share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | ||||
Net (loss) income and comprehensive (loss) income | $ (51,459) | $ 60,608 | $ 23,466 | $ 132,396 |
Denominator: | ||||
Weighted-average shares used in computing basic net income per share (in shares) | 77,654 | 82,169 | 78,895 | 81,990 |
Add—dilutive potential common shares: | ||||
Weighted-average shares used in computing diluted net income per share (in shares) | 77,654 | 83,888 | 80,494 | 83,875 |
Net (loss) income per share of common stock: | ||||
Net income per share of common stock, Basic (in usd per share) | $ (0.66) | $ 0.74 | $ 0.30 | $ 1.61 |
Net income per share of common stock, Diluted (in usd per share) | $ (0.66) | $ 0.72 | $ 0.29 | $ 1.58 |
Stock options | ||||
Add—dilutive potential common shares: | ||||
Dilutive potential common shares (in shares) | 0 | 1,611 | 1,522 | 1,766 |
Restricted stock units | ||||
Add—dilutive potential common shares: | ||||
Dilutive potential common shares (in shares) | 0 | 108 | 77 | 119 |
(LOSS) EARNINGS PER SHARE - An
(LOSS) EARNINGS PER SHARE - Anti-dilutive Securities (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock compensation plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential shares of common stock excluded from the EPS calculation (in shares) | 2,000 | 0 | 1,000 | 0 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential shares of common stock excluded from the EPS calculation (in shares) | 1,500,000 | |||
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential shares of common stock excluded from the EPS calculation (in shares) | 100,000 |
BALANCE SHEET COMPONENTS - Inv
BALANCE SHEET COMPONENTS - Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 91,786 | $ 133,832 |
Raw materials | 7,107 | 8,216 |
Inventories | $ 98,893 | $ 142,048 |
BALANCE SHEET COMPONENTS - Pro
BALANCE SHEET COMPONENTS - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 40,662 | $ 34,708 |
Less: Accumulated depreciation | (25,005) | (21,792) |
Property and Equipment, Net | 15,657 | 12,916 |
Testing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 7,996 | 7,587 |
Computer and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 6,304 | 5,740 |
Tooling equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 9,378 | 7,828 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 1,710 | 1,528 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 9,395 | 6,424 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 5,879 | $ 5,601 |
BALANCE SHEET COMPONENTS - Oth
BALANCE SHEET COMPONENTS - Other Long-term Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Intangible assets, net (1) | $ 383 | $ 437 |
Other long-term assets | 1,768 | 1,891 |
Total | 2,151 | 2,328 |
Accumulated amortization, intangible assets | $ 1,300 | $ 1,200 |
BALANCE SHEET COMPONENTS - O34
BALANCE SHEET COMPONENTS - Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued expenses | $ 14,995 | $ 9,826 | ||
Accrued compensation and benefits | 2,675 | 2,467 | ||
Warranty accrual | 3,984 | 3,601 | $ 3,876 | $ 2,236 |
Deferred revenue - short term | 6,415 | 5,254 | ||
Customer deposits | 410 | 1,905 | ||
Reserve for sales returns | 3,520 | 3,600 | ||
Other payables | 33,601 | 6,377 | ||
Total | $ 65,600 | $ 33,030 |
BALANCE SHEET COMPONENTS - Othe
BALANCE SHEET COMPONENTS - Other Long Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | |||
Deferred Revenue - long term | $ 2,634 | $ 2,588 | |
Other long-term liabilities | 1,528 | 27 | |
Total | $ 4,162 | $ 2,615 | $ 2,615 |
ACCRUED WARRANTY - Additional
ACCRUED WARRANTY - Additional Information (Detail) | 6 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Warranty period (in years) | 12 months |
ACCRUED WARRANTY - Warranty Ob
ACCRUED WARRANTY - Warranty Obligations (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Warranty accrual, beginning balance | $ 3,601 | $ 2,236 |
Accruals for warranties issued during the period | 3,373 | 3,331 |
Changes in liability for pre-existing warranties during the period | (343) | 1,144 |
Settlements made during the period | (2,647) | (2,835) |
Warranty accrual, ending balance | $ 3,984 | $ 3,876 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) - USD ($) | Mar. 03, 2015 | Dec. 31, 2017 | Dec. 31, 2017 | Oct. 30, 2017 | Apr. 14, 2017 | May 05, 2014 |
Revolving credit facility | Original Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 150,000,000 | |||||
Revolving credit facility | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 200,000,000 | |||||
Issuance fees per annum | 0.125% | |||||
Maximum leverage ratio | 2.50 | |||||
Minimum liquidity to satisfy covenant terms | $ 250,000,000 | |||||
Availability of revolving credit facility to satisfy covenant term | $ 50,000,000 | |||||
Interest payment | $ 2,500,000 | $ 3,800,000 | ||||
Revolving credit facility | Amended Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage of unused borrowings | 0.20% | |||||
Revolving credit facility | Amended Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage of unused borrowings | 0.35% | |||||
Revolving credit facility | Amended Credit Agreement | Base rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt basis spread on variable rate | 0.50% | |||||
Revolving credit facility | Amended Credit Agreement | Base rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt basis spread on variable rate | 1.25% | |||||
Revolving credit facility | Amended Credit Agreement | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt basis spread on variable rate | 1.00% | |||||
Revolving credit facility | Amended Credit Agreement | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt basis spread on variable rate | 1.50% | |||||
Revolving credit facility | Amended Credit Agreement | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt basis spread on variable rate | 2.25% | |||||
Revolving credit facility | Amended Credit Agreement | Federal funds rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt basis spread on variable rate | 0.50% | |||||
Revolving credit facility | Amended Credit Agreement | Applicable interest rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt basis spread over applicable interest rate | 2.00% | |||||
Revolving credit facility | Amended Credit Agreement, First Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 300,000,000 | |||||
Additional borrowing capacity | 125,000,000 | |||||
Revolving credit facility | Amended Credit Agreement, Second Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 425,000,000 | |||||
Additional borrowing capacity | 50,000,000 | |||||
Term loan facility | Original Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of outstanding balance | 72,300,000 | |||||
Term loan facility | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 100,000,000 | |||||
Repayment of outstanding balance | 4,300,000 | $ 8,600,000 | ||||
Interest rate percentage on term loan | 2.94% | |||||
Percentage of principal due quarterly | 3.75% | |||||
Principal payment | 3,800,000 | $ 7,500,000 | ||||
Interest payment | $ 500,000 | $ 1,100,000 | ||||
Term loan facility | Amended Credit Agreement, First Amendment | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 100,000,000 | |||||
Letters of credit | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 10,000,000 | |||||
Letters of credit | Amended Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage of unused borrowings | 1.50% | |||||
Letters of credit | Amended Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage of unused borrowings | 2.25% | |||||
Sublimit for swingline loan advances | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 25,000,000 | |||||
Sublimit for swingline loan advances | Amended Credit Agreement | Base rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt basis spread on variable rate | 0.50% | |||||
Sublimit for swingline loan advances | Amended Credit Agreement | Base rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt basis spread on variable rate | 1.25% |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Debt Instrument [Line Items] | ||
Debt - short-term | $ 14,743 | $ 14,743 |
Debt issuance costs, current, net | (257) | (257) |
Debt - long-term | 452,950 | 241,821 |
Debt issuance cost, noncurrent, net | (300) | (429) |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Debt - short-term | 15,000 | 15,000 |
Debt - long-term | 53,750 | 61,250 |
Revolving credit facility | Line of credit | ||
Debt Instrument [Line Items] | ||
Debt - long-term | $ 399,500 | $ 181,000 |
DEBT - Summary of Interest Rate
DEBT - Summary of Interest Rates (Details) - Revolving credit facility | 6 Months Ended |
Dec. 31, 2017USD ($) | |
$18 Million Revolver | |
Debt Instrument [Line Items] | |
Credit facility | $ 18,000,000 |
$45 Million Revolver | |
Debt Instrument [Line Items] | |
Credit facility | 45,000,000 |
$46 Million Revolver | |
Debt Instrument [Line Items] | |
Credit facility | 46,000,000 |
$48 Million Revolver | |
Debt Instrument [Line Items] | |
Credit facility | 48,000,000 |
$69 Million Revolver | |
Debt Instrument [Line Items] | |
Credit facility | 69,000,000 |
$73.5 Million Revolver | |
Debt Instrument [Line Items] | |
Credit facility | 73,500,000 |
$100 Million Revolver | |
Debt Instrument [Line Items] | |
Credit facility | $ 100,000,000 |
Line of credit | $18 Million Revolver | |
Debt Instrument [Line Items] | |
Interest rate percentage on revolver draws | 2.99% |
Line of credit | $45 Million Revolver | |
Debt Instrument [Line Items] | |
Interest rate percentage on revolver draws | 3.03% |
Line of credit | $46 Million Revolver | |
Debt Instrument [Line Items] | |
Interest rate percentage on revolver draws | 2.98% |
Line of credit | $48 Million Revolver | |
Debt Instrument [Line Items] | |
Interest rate percentage on revolver draws | 3.07% |
Line of credit | $69 Million Revolver | |
Debt Instrument [Line Items] | |
Interest rate percentage on revolver draws | 2.87% |
Line of credit | $73.5 Million Revolver | |
Debt Instrument [Line Items] | |
Interest rate percentage on revolver draws | 2.87% |
Line of credit | $100 Million Revolver | |
Debt Instrument [Line Items] | |
Interest rate percentage on revolver draws | 2.88% |
DEBT - Summary of debt and inte
DEBT - Summary of debt and interest payment obligations (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Debt payment obligations (2) | |
Debt payment obligations, 2018 (remainder) | $ 7,500 |
Debt payment obligations, 2019 | 15,000 |
Debt payment obligations, 2020 | 445,750 |
Debt payment obligations, 2021 | 0 |
Debt payment obligations, 2022 | 0 |
Debt payment obligations, thereafter | 0 |
Debt payment obligations, total | 468,250 |
Interest and other payments on debt payment obligations (1)(2) | |
Interest and other payments on debt payment obligations, 2018 (remainder) | 6,823 |
Interest and other payments on debt payment obligations, 2019 | 13,319 |
Interest and other payments on debt payment obligations, 2020 | 8,844 |
Interest and other payments on debt payment obligations, 2021 | 0 |
Interest and other payments on debt payment obligations, 2022 | 0 |
Interest and other payments on debt payment obligations, thereafter | 0 |
Interest and other payments on debt payment obligations, total | 28,986 |
Total | |
Debt and interest payment obligations, 2018 (remainder) | 14,323 |
Debt and interest payment obligations, 2019 | 28,319 |
Debt and interest payment obligations, 2020 | 454,594 |
Debt and interest payment obligations, 2021 | 0 |
Debt and interest payment obligations, 2022 | 0 |
Debt and interest payment obligations, thereafter | 0 |
Debt and interest payment obligations, total | $ 497,236 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) $ in Millions | Aug. 04, 2017USD ($) | Sep. 07, 2012claim | Dec. 31, 2017USD ($) |
Property Subject to or Available for Operating Lease [Line Items] | |||
Other obligations | $ 0.9 | ||
Shareholder class action complaints filed against Company | claim | 2 | ||
New York, New York | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Noncancellable operating leases expiration period | through fiscal 2023 | ||
Shareholder Class Action | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Litigation settlement, amount awarded to other party | $ 6.8 | ||
Finished Goods [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Inventory purchase obligation | $ 19.6 | ||
Raw Materials [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Inventory purchase obligation | $ 5.5 |
COMMITMENTS AND CONTINGENCIES43
COMMITMENTS AND CONTINGENCIES - Future minimum annual payments under operating leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, 2018 (remainder) | $ 2,473 |
Operating leases, 2019 | 3,383 |
Operating leases, 2020 | 2,963 |
Operating leases, 2021 | 1,811 |
Operating leases, 2022 | 1,047 |
Operating leases, thereafter | 604 |
Operating leases, total | $ 12,281 |
COMMON STOCK AND TREASURY STO44
COMMON STOCK AND TREASURY STOCK (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2017 | Feb. 08, 2018 | Feb. 06, 2018 | Nov. 08, 2017 | Sep. 18, 2017 | Sep. 05, 2017 | Mar. 03, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | |||||||||
Common stock, shares outstanding (in shares) | 77,645,785 | 80,275,965 | |||||||||
Stock repurchase program one | Common Stock | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Repurchase of common stock | $ 50,000,000 | ||||||||||
Value of total number of shares purchased | $ 46,300,000 | ||||||||||
Stock repurchase cost incurred but not yet paid | $ 3,000,000 | ||||||||||
Stock repurchased and retired (in shares) | 50,000 | 917,455 | |||||||||
Common stock repurchased, average price per share (in usd per share) | $ 49.55 | $ 50.43 | |||||||||
Stock repurchased, value | $ 2,500,000 | ||||||||||
Stock available under stock repurchase program | $ 1,300,000 | $ 1,300,000 | |||||||||
Stock repurchase program two | Common Stock | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Repurchase of common stock | $ 100,000,000 | $ 50,000,000 | |||||||||
Total number of shares repurchased (in shares) | 602,192 | 2,148,832 | |||||||||
Average price paid per share (in usd per share) | $ 57.28 | $ 54.34 | |||||||||
Value of total number of shares purchased | $ 34,500,000 | $ 116,800,000 | |||||||||
Stock repurchase cost incurred but not yet paid | 8,800,000 | ||||||||||
Stock available under stock repurchase program | $ 34,500,000 | ||||||||||
Stock repurchase program three | Common Stock | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Repurchase of common stock | $ 50,000,000 | ||||||||||
Subsequent event | Stock repurchase program three | Common Stock | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Repurchase of common stock | $ 50,000,000 | ||||||||||
Subsequent event | New Program | Common Stock | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Repurchase of common stock | $ 150,000,000 |
STOCK BASED COMPENSATION - Add
STOCK BASED COMPENSATION - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized shares, stock incentive plans (in shares) | 10,010,412 | 10,010,412 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value of options exercised | $ 1,700,000 | $ 3,500,000 | $ 5,500,000 | $ 24,200,000 |
Unrecognized compensation costs | 0 | 0 | ||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of RSUs vested | 600,000 | $ 900,000 | 1,900,000 | $ 3,700,000 |
Intrinsic value of RSUs outstanding | 12,300,000 | 12,300,000 | ||
Unrecognized compensation costs, RSUs | $ 5,700,000 | $ 5,700,000 | ||
Weighted-average period recognized (in years) | 3 years 4 months 24 days |
STOCK BASED COMPENSATION - Sto
STOCK BASED COMPENSATION - Stock-based compensation expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 780 | $ 566 | $ 1,692 | $ 1,493 |
Cost of revenues | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 40 | 30 | 285 | 174 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 370 | 381 | 826 | 941 |
Sales, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 370 | $ 155 | $ 581 | $ 378 |
STOCK BASED COMPENSATION - Opt
STOCK BASED COMPENSATION - Option activity for company's stock incentive plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jun. 30, 2017 | |
Number of Shares | ||
Beginning balance (in shares) | 1,621,601 | |
Exercised (in shares) | (97,667) | |
Ending balance (in shares) | 1,523,934 | 1,621,601 |
Number of shares, vested, ending balance (in shares) | 1,523,934 | |
Number of shares, vested and exercisable, ending balance (in shares) | 1,523,934 | |
Weighted Average Exercise Price | ||
Beginning balance (in usd per share) | $ 1.76 | |
Exercised (in usd per share) | 8.70 | |
Ending balance (in usd per share) | 1.32 | $ 1.76 |
Options, weighted average exercise price, vested, ending balance (in usd per share) | 1.32 | |
Options, weighted average exercise price, vested and exercisable, ending balance (in usd per share) | $ 1.32 | |
Options outstanding, weighted average remaining contractual term, ending balance (in years) | 9 months 26 days | 1 year 6 months 18 days |
Options, remaining contractual term, vested, ending balance (in years) | 9 months 26 days | |
Options, weighted average remaining contractual term, vested and exercisable, ending balance (in years) | 9 months 26 days | |
Options outstanding, intrinsic value, ending balance | $ 106,218 | $ 81,413 |
Options, aggregate intrinsic value, vested, ending balance | 106,218 | |
Options, aggregate intrinsic value, vested and exercisable, ending balance | $ 106,218 |
STOCK BASED COMPENSATION - Sum
STOCK BASED COMPENSATION - Summary of RSU activity (Detail) - Restricted stock units | 6 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of Shares | |
Non-vested RSUs, beginning balance (in shares) | shares | 180,373 |
RSUs granted (in shares) | shares | 44,074 |
RSUs vested (in shares) | shares | (32,904) |
RSUs canceled (in shares) | shares | (18,477) |
Non-vested RSUs, ending balance (in shares) | shares | 173,066 |
Weighted Average Grant Date Fair Value Per Share | |
Non-vested RSUs, weighted average grant date fair value, beginning balance (in usd per share) | $ / shares | $ 40.51 |
RSUs granted, weighted average grant date fair value (in usd per share) | $ / shares | 62.43 |
RSUs vested, weighted average grant date fair value (in usd per share) | $ / shares | 35.41 |
RSUs canceled, weighted average grant date fair value (in usd per share) | $ / shares | 40.52 |
Non-vested RSUs, weighted average grant date fair value, ending balance (in usd per share) | $ / shares | $ 47.06 |
INCOME TAXES (Detail)
INCOME TAXES (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 115,047 | $ 8,022 | $ 125,824 | $ 10,037 |
Tax cuts and jobs act of 2017, provisional income tax expense | 110,500 | 110,500 | ||
Tax cuts and jobs act of 2017, remeasurement of deferred tax assets and liabilities | 2,300 | 2,300 | ||
Unrecognized tax benefits | 27,600 | 27,600 | ||
Net increase (decrease) in unrecognized tax benefits | (1,200) | (1,200) | ||
Interest accrued related to uncertain tax matters | 2,100 | 2,100 | ||
Settlement with taxing authority | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unrecognized tax benefits, decrease is reasonably possible | $ 4,000 | $ 4,000 |
SEGMENT INFORMATION, REVENUES50
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Additional Information (Detail) | 6 Months Ended |
Dec. 31, 2017segmentrevenue_category | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Number of primary categories | revenue_category | 2 |
SEGMENT INFORMATION, REVENUES51
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Revenues by product (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 250,811 | $ 213,536 | $ 496,679 | $ 418,293 |
Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Service Provider Technology | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 119,852 | $ 115,580 | $ 239,767 | $ 236,212 |
Service Provider Technology | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 48.00% | 54.00% | 48.00% | 56.00% |
Enterprise Technology | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 130,959 | $ 97,956 | $ 256,912 | $ 182,081 |
Enterprise Technology | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 52.00% | 46.00% | 52.00% | 44.00% |
SEGMENT INFORMATION, REVENUES52
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Revenues by geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 250,811 | $ 213,536 | $ 496,679 | $ 418,293 |
Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 100.00% | 100.00% | 100.00% | 100.00% |
North America(1) | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 94,957 | $ 94,609 | $ 191,127 | $ 168,774 |
North America(1) | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 38.00% | 44.00% | 38.00% | 40.00% |
South America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 20,746 | $ 19,285 | $ 51,799 | $ 43,469 |
South America | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 8.00% | 9.00% | 10.00% | 10.00% |
Europe, the Middle East and Africa (EMEA) | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 102,026 | $ 77,381 | $ 195,340 | $ 158,756 |
Europe, the Middle East and Africa (EMEA) | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 41.00% | 36.00% | 39.00% | 38.00% |
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 33,082 | $ 22,261 | $ 58,413 | $ 47,294 |
Asia Pacific | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue percentage | 13.00% | 11.00% | 13.00% | 12.00% |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 89,800 | $ 90,200 | $ 181,700 | $ 160,800 |
SEGMENT INFORMATION, REVENUES53
SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Percentage of Revenues, Accounts Receivable (Detail) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% | |
Revenues | Customer B | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration percentage | 13.00% | 11.00% | |||
Revenues | Customer C | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration percentage | 12.00% | 11.00% | |||
Accounts Receivable | Customer A | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration percentage | 12.00% | ||||
Accounts Receivable | Customer B | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration percentage | 12.00% | 15.00% | |||
Accounts Receivable | Customer C | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration percentage | 18.00% | 10.00% |
RELATED PARTY TRANSACTIONS AN54
RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS (Details) - Chief Executive Officer - Aircraft lease agreement - USD ($) | Nov. 13, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | |||||
Rate to lease aircraft | $ 5,000 | ||||
Sales, general and administrative | |||||
Related Party Transaction [Line Items] | |||||
Aircraft leasing expenses | $ 400,000 | $ 500,000 | $ 700,000 | $ 1,200,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Feb. 06, 2018USD ($) | Jan. 17, 2018USD ($) | Oct. 30, 2017USD ($) | Mar. 03, 2015USD ($) |
Revolving credit facility | Wells Fargo, National Association | ||||
Subsequent Event [Line Items] | ||||
Maximum leverage ratio | 3.25 | |||
Minimum liquidity to satisfy covenant terms | $ 250,000,000 | |||
Availability of revolving credit facility to satisfy covenant term | $ 50,000,000 | |||
Revolving credit facility | Wells Fargo, National Association | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Credit facility | $ 400,000,000 | |||
Additional borrowing capacity | 300,000,000 | |||
Revolving credit facility | Amended Credit Agreement, Second Amendment | ||||
Subsequent Event [Line Items] | ||||
Credit facility | $ 425,000,000 | |||
Additional borrowing capacity | $ 50,000,000 | |||
Letters of credit | Wells Fargo, National Association | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Credit facility | 10,000,000 | |||
Swingline Loan | Amended Credit Agreement, Second Amendment | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Credit facility | 25,000,000 | |||
Term loan facility | Wells Fargo, National Association | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Credit facility | $ 500,000,000 | |||
New Program | Common Stock | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Repurchase of common stock | $ 150,000,000 |