ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED JUNE 30, 2017 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . |
MASSACHUSETTS | 04-2741391 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
50 MINUTEMAN ROAD ANDOVER, MA | 01810 |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered |
Common Stock, Par Value $.01 Per Share | NASDAQ Global Select Market |
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ITEM 1. | BUSINESS |
• | Components. Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include but are not limited to power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices. |
• | Modules and Sub-assemblies. Modules and sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include but are not limited to embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO (input-output) boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers. |
• | Integrated Subsystems. Integrated subsystems include multiple modules and/or subassemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub- assemblies sold as part of the same program for use in or with integrated subsystems sold by us. |
• | The aerospace and defense electronics market is expected to grow in 2017 and beyond. According to Renaissance Strategic Advisors (“RSA”), the global aerospace and defense electronics market is estimated to be $97 billion in 2017, growing to $108 billion by 2021. Within this global market, RSA estimates that the U.S. defense electronics market will be approximately $43 billion in 2017, growing to $47 billion in 2021. Within the context of the overall U.S. defense budget and spending for defense electronics specifically, we believe the ISR, EW, guided missiles and precision munitions, and ballistic missile defense market segments have a high priority for future DoD spending. We continue to build on our strengths in the design and development of performance optimized electronic subsystems for these markets, and often team with multiple defense prime contractors as they bid for projects, thereby increasing our chance of a successful outcome. |
• | The rapidly expanding demand for tactical ISR is leading to significant growth in sensor data being generated, leading to even greater demand for the capability of our products to securely store and process data onboard platforms. An increase in the prevalence and resolution of ISR sensors is generating significant growth in the associated data that needs to be stored and turned into information for the warfighter in a timely manner. In addition, several factors are driving the defense and intelligence industries to demand greater capability to collect, store, and process data onboard the aircraft, UAVs, ships and other vehicles, which we refer to collectively as platforms. These factors include the limited communications bandwidth of existing platforms, the need for platforms that can operate more autonomously and possibly in denied communications environments, the need for platforms with increased persistence to enable them to remain in or fly above the battlefield for extended periods, and the need for greater onboard processing capabilities. |
• | Rogue nations’ missile programs and threats from peer nations are causing greater investment in advanced new radar, EW and ballistic missile defense capabilities. There are a number of new and emerging threats, such as peer nations developing stealth technologies, including stealth aircraft, new anti-ship ballistic missiles that potentially threaten the U.S. naval fleet, and a variety of other advanced missile capabilities. Additionally, U.S. armed forces require enhanced signals intelligence and jamming capabilities. In response to these emerging threats, we have participated in key DoD |
• | The long-term DoD budget pressure is pushing more dollars toward upgrades of the electronic subsystems on existing platforms, which may increase demand for our products. The DoD is moving from major new weapons systems developments to upgrades of the electronic subsystems on existing platforms. These upgrades are expected to include more sensors, signal processing, ISR algorithms, multi-intelligence fusion and exploitation, computing and communications. We believe that upgrades to provide new urgent war fighting capability, driven by combatant commanders, are occurring more rapidly than traditional defense prime contractors can easily react to. We believe these trends will cause defense prime contractors to increasingly seek out our high-performance, cost-effective open architecture products. |
• | Defense procurement reform is causing the defense prime contractors to outsource more work to commercial companies. RSA estimates that in 2017 the U.S. defense tier 2 embedded computing and RF market addressable by suppliers such as Mercury is approximately $13 billion. RSA estimates that the U.S. defense prime contractors currently outsource only a small percentage of their work. On a global basis the tier 2 embedded computing and RF market in 2017 is estimated by RSA to be over $30 billion. The U.S. government is intensely focused on making systems more affordable and shortening their development time. As a company that provides commercial items to the defense industry, we believe our products and subsystem solutions are often more affordable than solutions with the same functionality developed by a defense prime contractor. Several factors are providing incentives for defense prime contractors to outsource more work to subcontractors with significant expertise and cost-effective technology capabilities and solutions, and we have transformed our business model over the last several years to address these long-term outsourcing trends and other needs. |
• | DoD security and program protection requirements are creating new opportunities for our advanced secure processing capabilities. The government is focused on ensuring that the U.S. military protects its defense electronic systems and the information held within them from nefarious activities such as tampering, reverse engineering, and other forms of advanced attacks, including cyber. The requirement to add security comes at a time when the commercial technology world continues to offshore more of the design, development, manufacturing, and support of such capabilities, making it more difficult to protect against embedded vulnerabilities, tampering, reverse engineering and other undesired activities. The DoD has a mandate to ensure both the provenance and integrity of the technology and its associated supply chain. These factors have created a unique opportunity for us to expand beyond sensor processing into the provision of advanced secure processing subsystems and capabilities for other on-board critical computing applications designed, developed, manufactured, and supported in the U.S.A. In addition, advanced systems sold to foreign military buyers also require protection so that the technologies, techniques and data associated with them do not become more widely available, which further enhances our market opportunity. |
• | Subsystem Solutions Provider for the C4ISR and EW Markets. Through our commercially developed, specialized processing subsystem solutions, we address the challenges associated with the collection and processing of massive, continuous streams of data and dramatically shorten the time that it takes to give information to U.S. armed forces at the tactical edge. Our solutions are specifically designed for flexibility and interoperability, allowing our products to be easily integrated into larger system-level solutions. Our ability to integrate subsystem-level capabilities allows us to provide solutions that most effectively address the mission-critical challenges within the C4ISR market, including multi-intelligence data fusion and intelligence processing onboard the platform. We leverage our deep expertise in embedded multicomputing, embedded sensor processing, with the addition of our RF microwave and millimeter subsystems and components, along with strategic investments in research and development to provide solutions across the sensor processing chain. |
• | Diverse Mix of Stable, Growth Programs Aligned with DoD Funding Priorities. Our products and solutions have been deployed on more than 300 different programs and over 25 different defense prime contractors. We serve high priority markets for the DoD and foreign militaries, such as UAVs, ballistic missile defense, guided missiles and precision munitions, airborne reconnaissance, EW, and have secured positions on mission-critical programs including Aegis, Predator and Reaper UAVs, F-35 Joint Strike Fighter, Patriot missile, SEWIP, and Paveway. In addition, we consistently |
• | We are a leading commercial provider of secure processing subsystems designed and made in the U.S.A. We have a portfolio of OSA technology building blocks across the entire sensor processing chain. We offer embedded secure processing capabilities with advanced packaging and cooling technologies that ruggedize commercial technologies while allowing them to stay cool for reliable operation. These capabilities allow us to help our customers meet the demanding SWaP requirements of today’s defense platforms. Our pre-integrated subsystems improve affordability by substantially reducing customer system integration costs and time-to-market for our solutions. System integration costs are one of the more substantial costs our customers bear in developing and deploying technologies in defense programs and platforms. Our pre-integrated solutions approach allows for more rapid and affordable modernization of existing platforms and faster deployment of new platforms. |
• | We provide advanced, integrated security features for our products and subsystems, addressing an increasingly prevalent requirement for DoD program security. We offer secure processing expertise that is built-in to our pre-integrated subsystems, not bolted on. By doing this we are able to provide secure building blocks that allow our customers to also incorporate their own security capabilities. This assists our customers in ensuring program protection as they deploy critical platforms and programs, all in support of DoD missions. The Carve-Out Acquisition brought us new security technologies and also allowed us to provide enhanced security capabilities in areas such as memory and storage devices. The Carve-Out Acquisition also provided us with a DMEA (“Defense Micro-Electronics Association”) certified trusted manufacturing facility for microelectronics in our Phoenix, Arizona facility. |
• | We are pioneering a next generation business model. The DoD and the defense industrial base is currently undergoing a major transformation. Domestic political and budget uncertainty, geopolitical instability and evolving global threats have become constants. The defense budget, while stabilized in the short term, remains under pressure and R&D and technology spending are often in budgetary competition with the increasing costs of military personnel requirements, health care costs, and other important elements within the DoD and the federal budget generally. Finally, defense acquisition reform calls for the continued drive for innovation and competition within the defense industrial base, while also driving down acquisition costs. Our approach is built around a few key pillars: |
• | We continue to leverage our expertise in building pre-integrated subsystems in support of critical defense programs, driving out procurement costs by lowering integration expenses of our customers. |
• | We have been a pioneer in driving OSA for both embedded computing and RF. |
• | The DoD has asked defense industry participants to invest their own resources into R&D. This approach is a pillar of our business model. |
• | Security and program protection are now critical considerations for both program modernizations as well as for new program deployment. We are now in our third generation of building secure embedded processing solutions. |
• | Value-Added Subsystem Solution Provider for Defense Prime Contractors. Because of the DoD’s continuing shift toward a firm fixed price contract procurement model, an increasingly uncertain budgetary and procurement environment, and increased budget pressures from both the U.S. and allied governments, defense prime contractors are accelerating their move toward outsourcing opportunities to help mitigate the increased program and financial risk. Our differentiated secure sensor and safety-critical processing solutions offer meaningful capabilities upgrades for our customers and enable the rapid, cost-effective deployment of systems to the end customer. We believe our open architecture subsystems offer differentiated sensor processing and data analytics capabilities that cannot be easily replicated. Our solutions minimize program risk, maximize application portability, and accelerate customers’ time to market, all within a fixed-pricing contracting environment. |
• | Delivery of Platform-Ready Solutions for Classified Programs. We believe our integration work through our Cypress, California facility provides us with critical insights as we implement and incorporate key classified government intellectual property, including critical intelligence and signal processing algorithms, into advanced systems. This integration work provides us the opportunity to combine directly and integrate our technology building blocks along with our intellectual |
• | Advanced Microelectronics Centers. Our Advanced Microelectronics Centers (“AMCs”) in Hudson, New Hampshire and West Caldwell, New Jersey, design, build and test RF components and subsystems in support of a variety of key customer programs. With our fiscal 2014 move into our new AMC in Hudson, New Hampshire, including the installation of integrated business systems into both our AMCs, we have a platform for scalable, continued growth in our RF product lines. Our scalable microelectronics manufacturing operations at our AMCs enable rapid, cost-effective deployment of RF solutions to our customers. The acquisitions of the Carve-Out Business and Delta have provided us with west coast RF manufacturing locations providing similar advanced capabilities and better proximity to certain key customer locations. |
• | United States Manufacturing Operations. Our United States Manufacturing Operations (“USMO”) in Phoenix, Arizona is built around scalable, repeatable, secure, affordable, and predictable manufacturing. The facility is a DMEA certified secure trusted site, certified to AS9100 quality standards and it utilizes Lean Six Sigma methodologies throughout manufacturing. The USMO is designed for efficient manufacture, enabling our customers to access the best proven technology and high performing, secure processing solutions. This allows for the most repeatable product performance, while optimizing affordability and production responsiveness. |
• | Long-Standing Industry Relationships. We have established long-standing relationships with defense prime contractors, the U.S. government and other key organizations in the defense industry over our 30 years in the defense electronics industry. Our customers include BAE Systems, The Boeing Company, Harris, L3 Technologies, Lockheed Martin Corporation, Northrop Grumman Corporation, and Raytheon Company. Over this period, we have become recognized for our ability to develop new technologies and meet stringent program requirements. We believe we are well-positioned to maintain these high-level customer engagements and enhance them through the additional relationships that our recently acquired businesses have with many of the same customers. |
• | Proven Management Team. Over the past several years, our senior management team has refocused the Company on its economic core, developed a long-term compelling strategy for the defense markets and restored profitability to the business. Having completed these critical steps to rebuild the Company and with a senior management team with significant experience in growing and scaling businesses, both through operating execution and acquisitions, we believe that we have demonstrated our operational capabilities and we are well-positioned to continue growing and scaling our business. |
ITEM 1A. | RISK FACTORS: |
• | reduced and delayed demand for our products; |
• | increased risk of order cancellations or delays; |
• | downward pressure on the prices of our products; |
• | greater difficulty in collecting accounts receivable; and |
• | risks to our liquidity, including the possibility that we might not have access to our cash and short-term investments or to our line of credit when needed. |
• | Changes in government administration and national and international priorities, including developments in the geo-political environment, could have a significant impact on national or international defense spending priorities and the efficient handling of routine contractual matters. These changes could have a negative impact on our business in the future. |
• | Our contracts with the U.S. and foreign governments and their defense prime contractors and subcontractors are subject to termination either upon default by us or at the convenience of the government or contractor if, among other reasons, the program itself has been terminated. Termination for convenience provisions generally entitle us to recover costs incurred, settlement expenses and profit on work completed prior to termination, but there can be no assurance in this regard. |
• | Because we contract to supply goods and services to the U.S. and foreign governments and their prime and subcontractors, we compete for contracts in a competitive bidding process and, in the event we are awarded a contract, we are subject to protests by disappointed bidders of contract awards that can result in the reopening of the bidding process and changes in governmental policies or regulations and other political factors. In addition, we may be subject to multiple rebid requirements over the life of a defense program in order to continue to participate on such program, which can result in the loss of the program or significantly reduce our revenue or margin from the program. The government’s requirements for more frequent technology refreshes on defense programs may lead to increased costs and lower long term revenues. |
• | Consolidation among defense industry contractors has resulted in a few large contractors with increased bargaining power relative to us. The increased bargaining power of these contractors may adversely affect our ability to compete for contracts and, as a result, may adversely affect our business or results of operations in the future. |
• | Our customers include U.S. government contractors who must comply with and are affected by laws and regulations relating to the formation, administration, and performance of U.S. government contracts. In addition, when we contract with the U.S. government, we must comply with these laws and regulations, including the organizational conflict-of-interest regulations. A violation of these laws and regulations could result in the imposition of fines and penalties to us or our customers or the termination of our or their contracts with the U.S. government. As a result, there could be a delay in our receipt of orders from our customers, a termination of such orders, or a termination of contracts between us and the U.S. government. |
• | We sell many products to U.S. and international defense contractors and also directly to the U.S. government as a commercial supplier such that cost data is not supplied. To the extent that there are interpretations or changes in the Federal Acquisition Regulations regarding the qualifications necessary to be a commercial item supplier, there could be a material adverse effect on our business and operating results. For example, there have been legislative proposals to narrow the definition of a “commercial item” (as defined in the Federal Acquisition Regulations) that could limit our ability to contract as a commercial item supplier. In addition, growth in our defense sales relative to our commercial sales could adversely impact our status as a commercial supplier, which could adversely affect our business and operating results. Changes in our mix of business, in federal regulations, or in the interpretation of federal regulations, may subject us to audit by the Defense Contract Audit Agency ("DCAA") for certain of our products or services. Operating under a cost-accounting business model rather than our historical commercial item business model could adversely impact our revenues and profitability. |
• | We qualify as a “small business” for government contracts purposes under the definition of that term in an applicable NAICS code because we have fewer than 1,250 employees. As we grow and potentially have a rolling 12-month average of over 1,250 employees in the future, we would no longer qualify as a small business. Loss of our small business status could negatively impact us, including our customers purchases from us would not qualify as purchases from a small business, customers may flow down additional Federal Acquisition Regulation, or FAR, clauses in their contracts with us that are less favorable than our existing contract terms and conditions. We expect to lose our status as a small business during fiscal 2018. |
• | We are subject to the Defense Federal Acquisition Regulations Supplement, referred to as DFARS, in connection with our defense work for the U.S. government and defense prime contractors. Amendments to the DFARS, such as the amendment to the DFARS specialty metals clause requiring that the specialty metals in specified items be smelted or produced in the U.S. or other qualifying countries, may increase our costs for certain materials or result in supply-chain difficulties or production delays due to the limited availability of compliant materials. Compliance with the conflict minerals regulations enacted pursuant to the Dodd Frank legislation may pose similar risks and increase our costs. The new DFARS cyber-security requirements may increase our costs or delay the award of contracts if we are unable to certify that we satisfy such cyber-security requirements by the implementation deadline for the security protocols, which is currently scheduled during our fiscal 2018. |
• | The U.S. government or a defense prime contractor customer could require us to relinquish data rights to a product in connection with performing work on a defense contract, which could lead to a loss of valuable technology and intellectual property in order to participate in a government program. |
• | We are subject to various U.S. federal export-control statutes and regulations which affect our business with, among others, international defense customers. In certain cases the export of our products and technical data to foreign persons, and the provision of technical services to foreign persons related to such products and technical data, may require licenses from the U.S. Department of Commerce or the U.S. Department of State. The time required to obtain these licenses, and the restrictions that may be contained in these licenses, may put us at a competitive disadvantage with respect to competing with international suppliers who are not subject to U.S. federal export control statutes and regulations. In addition, violations of these statutes and regulations can result in civil and, under certain circumstances, criminal liability as well as administrative penalties which could have a material adverse effect on our business and operating results. |
• | We anticipate that sales to our U.S. prime defense contractor customers as part of foreign military sales (“FMS”) programs will be an increasing part of our business going forward. These FMS sales combine several different types of risks and uncertainties highlighted above, including risks related to government contracts, risks related to defense contracts, timing and budgeting of foreign governments, and approval from the U.S. and foreign governments related to the programs, all of which may be impacted by macroeconomic and geopolitical factors outside of our control. For example, the decline in oil prices may negatively impact foreign defense budgets. |
• | Certain of our employees with appropriate security clearances may require access to classified information in connection with the performance of a U.S. government contract. We must comply with security requirements pursuant to the National Industrial Security Program Operating Manual, or NISPOM, and other U.S. government security protocols when accessing sensitive information. Failure to comply with the NISPOM or other security requirements may subject us to civil or criminal penalties, loss of access to sensitive information, loss of a U.S. government contract, or potentially debarment as a government contractor. |
• | We may need to invest additional capital to build out higher level security infrastructure at certain of our facilities to capture new design wins on defense programs with higher level security requirements. Failure to invest in such infrastructure may limit our ability to obtain new design wins on defense programs. In addition, we may need to invest in additional secure laboratory space to efficiently integrate subsystem level solutions and maintain quality assurance on current and future programs. |
• | our ability to create demand for products in new markets; |
• | our ability to manage growth effectively; |
• | our ability to respond to changes in our customers’ businesses by updating existing products and introducing, in a timely fashion, new products which meet the needs of our customers; |
• | our ability to develop a reputation as a best-of-breed technology provider; |
• | the quality of our new products; |
• | our ability to respond rapidly to technological change; and |
• | our ability to successfully integrate any acquisitions that we make and achieve revenue and cost synergies and economies of scale. |
• | problems and increased costs in connection with the integration of the personnel, operations, technologies, or products of the acquired businesses; |
• | layering of integration activity due to multiple overlapping acquisitions; |
• | unanticipated costs; |
• | failure to achieve anticipated increases in revenues and profitability; |
• | diversion of management’s attention from our core business; |
• | adverse effects on business relationships with suppliers and customers and those of the acquired company; |
• | acquired assets becoming impaired as a result of technical advancements or worse-than-expected performance by the acquired company; |
• | failure to rationalize manufacturing capacity, locations, and operating models to achieve anticipated economies of scale, or disruptions to manufacturing and product design operations during the combination of facilities; |
• | volatility associated with accounting for earn-outs in a given transaction; |
• | entering markets in which we have no, or limited, prior experience; |
• | potential loss of key employees; and |
• | adversely affect our internal control over financial reporting before the acquiree's complete integration into the Company’s control environment. |
• | issue stock that would dilute our existing shareholders’ ownership percentages; |
• | incur debt and assume liabilities; |
• | obtain financing on unfavorable terms, or not be able to obtain financing on any terms at all; |
• | incur amortization expenses related to acquired intangible assets or incur large and immediate write-offs; |
• | incur large expenditures related to office closures of the acquired companies, including costs relating to the termination of employees and facility and leasehold improvement charges resulting from our having to vacate the acquired companies’ premises; and |
• | reduce the cash that would otherwise be available to fund operations or for other purposes. |
• | failure to implement our business plan for the combined business; |
• | unanticipated issues in integrating manufacturing, logistics, information, communications and other systems; |
• | unanticipated changes in applicable laws and regulations; |
• | failure to retain key employees; |
• | failure to retain key customers; |
• | operating risks inherent in the Carve-Out Business, CES, Delta, and RTL and our business; |
• | the impact of any assumed legal proceedings; |
• | the impact on our internal controls and compliance with the regulatory requirements under the Sarbanes-Oxley Act of 2002; and |
• | unanticipated issues, expenses costs, charges and liabilities related to the Acquisition. |
• | making it more difficult for us to satisfy our obligations under our debt instruments, including, without limitation, the Revolving Credit Facility; and if we fail to comply with these requirements, an event of default could result; |
• | limiting our ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions or other general corporate requirements; |
• | requiring a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for working capital, capital expenditures, acquisitions and other general corporate purposes; |
• | increasing our vulnerability to general adverse economic and industry conditions; |
• | exposing us to the risk of increased interest rates as certain of our borrowings have variable interest rates, which could increase the cost of servicing our financial instruments and could materially reduce our profitability and cash flows; |
• | limiting our flexibility in planning for and reacting to changes in the industry in which we compete; |
• | placing us at a disadvantage compared to other, less leveraged competitors; and |
• | increasing our cost of borrowing. |
• | changes in applicable laws and regulatory requirements; |
• | export and import restrictions; |
• | export controls relating to technology; |
• | tariffs and other trade barriers; |
• | less favorable intellectual property laws; |
• | difficulties in staffing and managing foreign operations; |
• | longer payment cycles; |
• | problems in collecting accounts receivable; |
• | adverse economic conditions in foreign markets; |
• | political instability; |
• | fluctuations in currency exchange rates; |
• | expatriation controls; and |
• | potential adverse tax consequences. |
• | delays in completion of internal product development projects; |
• | delays in shipping hardware and software; |
• | delays in acceptance testing by customers; |
• | a change in the mix of products sold to our served markets; |
• | changes in customer order patterns; |
• | production delays due to quality problems with outsourced components; |
• | inability to scale quick reaction capability products due to low product volume; |
• | shortages and costs of components; |
• | the timing of product line transitions; |
• | declines in quarterly revenues from previous generations of products following announcement of replacement products containing more advanced technology; |
• | inability to realize the expected benefits from acquisitions and restructurings, or delays in realizing such benefits; |
• | potential asset impairment, including goodwill and intangibles, or restructuring charges; and |
• | changes in estimates of completion on fixed price service engagements. |
• | investors’ perception of, and demand for, securities of defense technology companies; |
• | conditions of the United States and other capital markets in which we may seek to raise funds; |
• | our future results of operations, financial condition and cash flows; and |
• | prevailing interest rates. |
• | further develop or enhance our customer base; |
• | acquire necessary technologies, products or businesses; |
• | expand operations in the United States and elsewhere; |
• | hire, train and retain employees; |
• | market our software solutions, services and products; or |
• | respond to competitive pressures or unanticipated capital requirements. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
Location | Size in Sq. Feet | Commitment | |||
Phoenix, AZ | 116,858 | Leased, expiring 2020 | |||
Andover, MA | 114,198 | Leased, expiring 2029 | |||
Hudson, NH | 100,111 | Leased, expiring 2024 | |||
Cypress, CA | 42,770 | Leased, expiring 2021 | |||
Oxnard, CA | 35,650 | Leased, expiring 2019 | |||
Huntsville, AL | 25,950 | Leased, expiring 2018 | |||
Camarillo, CA | 25,195 | Leased, expiring 2020 | |||
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 4.1. | EXECUTIVE OFFICERS OF THE REGISTRANT |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
High | Low | ||||||
2017 Fourth quarter | $ | 43.15 | $ | 36.09 | |||
Third quarter | $ | 40.86 | $ | 29.31 | |||
Second quarter | $ | 32.75 | $ | 22.31 | |||
First quarter | $ | 26.37 | $ | 21.52 | |||
2016 Fourth quarter | $ | 24.87 | $ | 18.98 | |||
Third quarter | $ | 20.85 | $ | 15.67 | |||
Second quarter | $ | 19.99 | $ | 15.52 | |||
First quarter | $ | 16.44 | $ | 13.56 | |||
Period of Net Share Settlement | Total Number of Shares Net Settled (1) | Average Price Per Share | |||||
July 1, 2016 - September 30, 2016 | 260 | $ | 23.48 | ||||
October 1, 2016 - December 31, 2016 | 53 | $ | 27.34 | ||||
January 1, 2017 - March 31, 2017 | 4 | $ | 36.01 | ||||
April 1, 2017 - June 30, 2017 | 27 | $ | 39.43 | ||||
Total | 344 | ||||||
ITEM 6. | SELECTED FINANCIAL DATA |
For the Years Ended June 30, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Statement of Operations Data: | |||||||||||||||||||
Net revenues | $ | 408,588 | $ | 270,154 | $ | 234,847 | $ | 208,729 | $ | 194,231 | |||||||||
Income (loss) from operations | $ | 37,403 | $ | 23,973 | $ | 18,355 | $ | (7,405 | ) | $ | (24,810 | ) | |||||||
Income (loss) from continuing operations | $ | 24,875 | $ | 19,742 | $ | 14,429 | $ | (4,072 | ) | $ | (13,782 | ) | |||||||
Adjusted EBITDA(1) | $ | 93,921 | $ | 57,274 | $ | 44,414 | $ | 23,522 | $ | 9,940 | |||||||||
Net earnings (loss) per share from continuing operations: | |||||||||||||||||||
Basic | $ | 0.59 | $ | 0.58 | $ | 0.45 | $ | (0.13 | ) | $ | (0.46 | ) | |||||||
Diluted | $ | 0.58 | $ | 0.56 | $ | 0.44 | $ | (0.13 | ) | $ | (0.46 | ) | |||||||
As of June 30, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Working capital | $ | 173,351 | $ | 177,748 | $ | 142,472 | $ | 127,375 | $ | 115,483 | |||||||||
Total assets | $ | 815,745 | $ | 736,496 | $ | 386,880 | $ | 373,712 | $ | 374,431 | |||||||||
Long-term obligations | $ | 17,483 | $ | 195,808 | $ | 3,457 | $ | 13,635 | $ | 15,112 | |||||||||
Total shareholders’ equity | $ | 725,417 | $ | 473,044 | $ | 350,138 | $ | 327,147 | $ | 328,501 | |||||||||
(1) | In our periodic communications, we discuss a key measure that is not calculated according to U.S. generally accepted accounting principles (“GAAP”), adjusted EBITDA. Adjusted EBITDA is defined as earnings from continuing operations before interest income and expense, income taxes, depreciation, amortization of intangible assets, restructuring and other charges, impairment of long-lived assets, acquisition and financing costs, fair value adjustments from purchase accounting, litigation and settlement income and expense and stock-based compensation expense. We use adjusted EBITDA as an important indicator of the operating performance of our business. We use adjusted EBITDA in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our board of directors, determining components of bonus and equity compensation for executive officers based on operating performance and evaluating short-term and long-term operating trends in our operations. We believe the adjusted EBITDA financial measure assists in providing a more complete understanding of our underlying operational measures to manage our business, to evaluate our performance compared to prior periods and the marketplace, and to establish operational goals. We believe that these non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making. |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
(In thousands) | Fiscal 2017 | As a % of Total Net Revenue | Fiscal 2016 | As a % of Total Net Revenue | |||||||||
Net revenues | $ | 408,588 | 100.0 | % | $ | 270,154 | 100.0 | % | |||||
Cost of revenues | 217,045 | 53.1 | 142,535 | 52.8 | |||||||||
Gross margin | 191,543 | 46.9 | 127,619 | 47.2 | |||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative | 76,491 | 18.7 | 52,952 | 19.6 | |||||||||
Research and development | 54,086 | 13.2 | 36,388 | 13.4 | |||||||||
Amortization of intangible assets | 19,680 | 4.8 | 8,842 | 3.2 | |||||||||
Restructuring and other charges | 1,952 | 0.5 | 1,240 | 0.5 | |||||||||
Impairment of long-lived assets | — | — | 231 | 0.1 | |||||||||
Acquisition costs and other related expenses | 1,931 | 0.5 | 3,993 | 1.5 | |||||||||
Total operating expenses | 154,140 | 37.7 | 103,646 | 38.3 | |||||||||
Income from operations | 37,403 | 9.2 | 23,973 | 8.9 | |||||||||
Interest income | 462 | 0.1 | 131 | — | |||||||||
Interest expense | (7,568 | ) | (1.9 | ) | (1,172 | ) | (0.4 | ) | |||||
Other income, net | 771 | 0.2 | 2,354 | 0.9 | |||||||||
Income from continuing operations before income taxes | 31,068 | 7.6 | 25,286 | 9.4 | |||||||||
Tax provision | 6,193 | 1.5 | 5,544 | 2.1 | |||||||||
Net income | $ | 24,875 | 6.1 | % | $ | 19,742 | 7.3 | % | |||||
(In thousands) | Fiscal 2017 | As a % of Total Net Revenue | Fiscal 2016 | As a % of Total Net Revenue | $ Change | % Change | ||||||||||||||
Organic revenue | $ | 277,699 | 68 | % | $ | 253,516 | 94 | % | $ | 24,183 | 10 | % | ||||||||
Acquired revenue | 130,889 | 32 | % | 16,638 | 6 | % | 114,251 | 687 | % | |||||||||||
Total revenues | $ | 408,588 | 100 | % | $ | 270,154 | 100 | % | $ | 138,434 | 51 | % | ||||||||
(In thousands) | Fiscal 2016 | As a % of Total Net Revenue | Fiscal 2015 | As a % of Total Net Revenue | |||||||||
Net revenues | $ | 270,154 | 100.0 | % | $ | 234,847 | 100.0 | % | |||||
Cost of revenues | 142,535 | 52.8 | 120,647 | 51.4 | |||||||||
Gross margin | 127,619 | 47.2 | 114,200 | 48.6 | |||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative | 52,952 | 19.6 | 49,010 | 20.9 | |||||||||
Research and development | 36,388 | 13.4 | 36,535 | 15.6 | |||||||||
Amortization of intangible assets | 8,842 | 3.2 | 7,008 | 2.9 | |||||||||
Restructuring and other charges | 1,240 | 0.5 | 3,175 | 1.4 | |||||||||
Impairment of long-lived assets | 231 | 0.1 | — | — | |||||||||
Acquisition costs and other related expenses | 3,993 | 1.5 | 117 | — | |||||||||
Total operating expenses | 103,646 | 38.3 | 95,845 | 40.8 | |||||||||
Income from operations | 23,973 | 8.9 | 18,355 | 7.8 | |||||||||
Interest income | 131 | — | 21 | — | |||||||||
Interest expense | (1,172 | ) | (0.4 | ) | (34 | ) | — | ||||||
Other income, net | 2,354 | 0.9 | 453 | 0.2 | |||||||||
Income from continuing operations before income taxes | 25,286 | 9.4 | 18,795 | 8.0 | |||||||||
Tax provision | 5,544 | 2.1 | 4,366 | 1.9 | |||||||||
Income from continuing operations | 19,742 | 7.3 | 14,429 | 6.1 | |||||||||
Loss from discontinued operations, net of income taxes | — | — | (4,060 | ) | (1.7 | ) | |||||||
Net income | $ | 19,742 | 7.3 | % | $ | 10,369 | 4.4 | % | |||||
(In thousands) | Fiscal 2016 | As a % of Total Net Revenue | Fiscal 2015 | As a % of Total Net Revenue | $ Change | % Change | ||||||||||||||
Organic revenue | $ | 253,516 | 94 | % | $ | 234,847 | 100 | % | $ | 18,669 | 8 | % | ||||||||
Acquired revenue | 16,638 | 6 | % | — | — | % | 16,638 | 100 | % | |||||||||||
Total revenues | $ | 270,154 | 100 | % | $ | 234,847 | 100 | % | $ | 35,307 | 15 | % | ||||||||
• | the acquisition of other companies or businesses; |
• | the repayment and refinancing of debt; |
• | capital expenditures; |
• | working capital; and |
• | other purposes as described in the prospectus supplement. |
(In thousands) As of and for the fiscal year ended | June 30, 2017 | June 30, 2016 | June 30, 2015 | ||||||||
Net cash provided by operating activities | $ | 59,146 | $ | 36,940 | $ | 32,207 | |||||
Net cash used in investing activities | $ | (111,087 | ) | $ | (318,208 | ) | $ | (5,598 | ) | ||
Net cash provided by financing activities | $ | 11,338 | $ | 284,894 | $ | 3,905 | |||||
Net (decrease) increase in cash and cash equivalents | $ | (40,054 | ) | $ | 4,105 | $ | 30,299 | ||||
Cash and cash equivalents at end of year | $ | 41,637 | $ | 81,691 | $ | 77,586 | |||||
(In thousands) | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | ||||||||||||||
Operating leases | $ | 43,517 | $ | 6,139 | $ | 10,803 | $ | 7,678 | $ | 18,897 | |||||||||
Purchase obligations | 59,173 | 59,173 | — | — | — | ||||||||||||||
$ | 102,690 | $ | 65,312 | $ | 10,803 | $ | 7,678 | $ | 18,897 | ||||||||||
Year Ended June 30, | |||||||||||
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Income from continuing operations | $ | 24,875 | $ | 19,742 | $ | 14,429 | |||||
Interest expense, net | 7,106 | 1,041 | 13 | ||||||||
Tax provision | 6,193 | 5,544 | 4,366 | ||||||||
Depreciation | 12,589 | 6,900 | 6,332 | ||||||||
Amortization of intangible assets | 19,680 | 8,842 | 7,008 | ||||||||
Restructuring and other charges (1) | 1,952 | 1,240 | 3,175 | ||||||||
Impairment of long-lived assets | — | 231 | — | ||||||||
Acquisition and financing costs | 2,389 | 4,701 | 451 | ||||||||
Fair value adjustments from purchase accounting (2) | 3,679 | 1,384 | — | ||||||||
Litigation and settlement expense (income), net | 117 | (1,925 | ) | — | |||||||
Stock-based compensation expense | 15,341 | 9,574 | 8,640 | ||||||||
Adjusted EBITDA | $ | 93,921 | $ | 57,274 | $ | 44,414 | |||||
Year Ended June 30, | |||||||||||||||||||||||
(In thousands, except per share data) | 2017 | 2016 | 2015 | ||||||||||||||||||||
Income from continuing operations and diluted earnings per share | $ | 24,875 | $ | 0.58 | $ | 19,742 | $ | 0.56 | $ | 14,429 | $ | 0.44 | |||||||||||
Amortization of intangible assets | 19,680 | 8,842 | 7,008 | ||||||||||||||||||||
Restructuring and other charges (1) | 1,952 | 1,240 | 3,175 | ||||||||||||||||||||
Impairment of long-lived assets | — | 231 | — | ||||||||||||||||||||
Acquisition and financing costs | 2,389 | 4,701 | 451 | ||||||||||||||||||||
Fair value adjustments from purchase accounting (2) | 3,679 | 1,384 | — | ||||||||||||||||||||
Litigation and settlement expense (income), net | 117 | (1,925 | ) | — | |||||||||||||||||||
Stock-based compensation expense | 15,341 | 9,574 | 8,640 | ||||||||||||||||||||
Impact to income taxes (3) | (18,602 | ) | (9,975 | ) | (6,733 | ) | |||||||||||||||||
Adjusted income from continuing operations and adjusted earnings per share | $ | 49,431 | $ | 1.15 | $ | 33,814 | $ | 0.96 | $ | 26,970 | $ | 0.82 | |||||||||||
Diluted weighted-average shares outstanding | 43,018 | 35,097 | 32,939 | ||||||||||||||||||||
Year Ended June 30, | |||||||||||
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Cash provided by operating activities | $ | 59,146 | $ | 36,940 | $ | 32,207 | |||||
Capital expenditures | (32,844 | ) | (7,885 | ) | (5,984 | ) | |||||
Free cash flow | $ | 26,302 | $ | 29,055 | $ | 26,223 | |||||
• | estimated step-ups for the fixed assets and inventory; |
• | estimated fair values of intangible assets; and |
• | estimated income tax assets and liabilities assumed from the acquiree. |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
June 30, | |||||||
2017 | 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 41,637 | $ | 81,691 | |||
Accounts receivable, net of allowance for doubtful accounts of $83 and $92 at June 30, 2017 and 2016, respectively | 76,341 | 73,427 | |||||
Unbilled receivables and costs in excess of billings | 37,332 | 22,467 | |||||
Inventory | 81,071 | 58,284 | |||||
Prepaid income taxes | 1,434 | 3,401 | |||||
Prepaid expenses and other current assets | 8,381 | 6,122 | |||||
Total current assets | 246,196 | 245,392 | |||||
Restricted cash | — | 264 | |||||
Property and equipment, net | 51,643 | 28,337 | |||||
Goodwill | 380,846 | 344,027 | |||||
Intangible assets, net | 129,037 | 116,673 | |||||
Other non-current assets | 8,023 | 1,803 | |||||
Total assets | $ | 815,745 | $ | 736,496 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 27,485 | $ | 26,723 | |||
Accrued expenses | 20,594 | 10,273 | |||||
Accrued compensation | 18,406 | 13,283 | |||||
Deferred revenues and customer advances | 6,360 | 7,365 | |||||
Current portion of long-term debt | — | 10,000 | |||||
Total current liabilities | 72,845 | 67,644 | |||||
Deferred income taxes | 4,856 | 11,842 | |||||
Income taxes payable | 855 | 700 | |||||
Long-term debt | — | 182,275 | |||||
Other non-current liabilities | 11,772 | 991 | |||||
Total liabilities | 90,328 | 263,452 | |||||
Commitments and contingencies (Note K) | |||||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding | — | — | |||||
Common stock, $0.01 par value; 85,000,000 shares authorized; 46,303,075 and 38,675,340 shares issued and outstanding at June 30, 2017 and 2016, respectively | 463 | 387 | |||||
Additional paid-in capital | 584,795 | 357,500 | |||||
Retained earnings | 139,085 | 114,210 | |||||
Accumulated other comprehensive income | 1,074 | 947 | |||||
Total shareholders’ equity | 725,417 | 473,044 | |||||
Total liabilities and shareholders’ equity | $ | 815,745 | $ | 736,496 | |||
For the Years Ended June 30, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net revenues | $ | 408,588 | $ | 270,154 | $ | 234,847 | |||||
Cost of revenues | 217,045 | 142,535 | 120,647 | ||||||||
Gross margin | 191,543 | 127,619 | 114,200 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 76,491 | 52,952 | 49,010 | ||||||||
Research and development | 54,086 | 36,388 | 36,535 | ||||||||
Amortization of intangible assets | 19,680 | 8,842 | 7,008 | ||||||||
Restructuring and other charges | 1,952 | 1,240 | 3,175 | ||||||||
Impairment of long-lived assets | — | 231 | — | ||||||||
Acquisition costs and other related expenses | 1,931 | 3,993 | 117 | ||||||||
Total operating expenses | 154,140 | 103,646 | 95,845 | ||||||||
Income from operations | 37,403 | 23,973 | 18,355 | ||||||||
Interest income | 462 | 131 | 21 | ||||||||
Interest expense | (7,568 | ) | (1,172 | ) | (34 | ) | |||||
Other income, net | 771 | 2,354 | 453 | ||||||||
Income from continuing operations before income taxes | 31,068 | 25,286 | 18,795 | ||||||||
Tax provision | 6,193 | 5,544 | 4,366 | ||||||||
Income from continuing operations | 24,875 | 19,742 | 14,429 | ||||||||
Loss from discontinued operations, net of income taxes | — | — | (4,060 | ) | |||||||
Net income | $ | 24,875 | $ | 19,742 | $ | 10,369 | |||||
Basic net earnings (loss) per share: | |||||||||||
Income from continuing operations | $ | 0.59 | $ | 0.58 | $ | 0.45 | |||||
Loss from discontinued operations, net of income taxes | — | — | (0.13 | ) | |||||||
Net income | $ | 0.59 | $ | 0.58 | $ | 0.32 | |||||
Diluted net earnings (loss) per share: | |||||||||||
Income from continuing operations | $ | 0.58 | $ | 0.56 | $ | 0.44 | |||||
Loss from discontinued operations, net of income taxes | — | — | (0.13 | ) | |||||||
Net income | $ | 0.58 | $ | 0.56 | $ | 0.31 | |||||
Weighted-average shares outstanding: | |||||||||||
Basic | 41,986 | 34,241 | 32,114 | ||||||||
Diluted | 43,018 | 35,097 | 32,939 | ||||||||
Comprehensive income: | |||||||||||
Net income | $ | 24,875 | $ | 19,742 | $ | 10,369 | |||||
Foreign currency translation adjustments | (93 | ) | 171 | (235 | ) | ||||||
Pension benefit plan, net of tax | 220 | — | — | ||||||||
Total other comprehensive income, net of tax | 127 | 171 | (235 | ) | |||||||
Total comprehensive income | $ | 25,002 | $ | 19,913 | $ | 10,134 | |||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | ||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance at June 30, 2014 | 31,284 | $ | 312 | $ | 241,725 | $ | 84,099 | $ | 1,011 | $ | 327,147 | |||||||||||
Issuance of common stock under employee stock incentive plans | 1,275 | 13 | 3,697 | — | — | 3,710 | ||||||||||||||||
Issuance of common stock under employee stock purchase plan | 79 | 1 | 837 | — | — | 838 | ||||||||||||||||
Retirement of common stock | (67 | ) | — | (944 | ) | — | — | (944 | ) | |||||||||||||
Stock-based compensation | — | — | 8,728 | — | — | 8,728 | ||||||||||||||||
Tax shortfall from employee stock plan awards | — | — | 525 | — | — | 525 | ||||||||||||||||
Net income | — | — | — | 10,369 | — | 10,369 | ||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (235 | ) | (235 | ) | ||||||||||||||
Balance at June 30, 2015 | 32,571 | 326 | 254,568 | 94,468 | 776 | 350,138 | ||||||||||||||||
Issuance of common stock under employee stock incentive plans | 1,267 | 12 | 6,867 | — | — | 6,879 | ||||||||||||||||
Issuance of common stock under employee stock purchase plan | 88 | 1 | 1,217 | — | — | 1,218 | ||||||||||||||||
Retirement of common stock | (426 | ) | (4 | ) | (7,951 | ) | — | — | (7,955 | ) | ||||||||||||
Follow-on public stock offering | 5,175 | 52 | 92,726 | — | — | 92,778 | ||||||||||||||||
Stock-based compensation | — | — | 9,666 | — | — | 9,666 | ||||||||||||||||
Net income | — | — | — | 19,742 | — | 19,742 | ||||||||||||||||
Share-based business combination consideration | — | — | 407 | — | — | 407 | ||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 171 | 171 | ||||||||||||||||
Balance at June 30, 2016 | 38,675 | 387 | 357,500 | 114,210 | 947 | 473,044 | ||||||||||||||||
Issuance of common stock under employee stock incentive plans | 976 | 9 | 2,747 | — | — | 2,756 | ||||||||||||||||
Issuance of common stock under employee stock purchase plan | 96 | 1 | 2,213 | — | — | 2,214 | ||||||||||||||||
Retirement of common stock | (344 | ) | (3 | ) | (8,763 | ) | — | — | (8,766 | ) | ||||||||||||
Follow-on public stock offering | 6,900 | 69 | 215,656 | — | — | 215,725 | ||||||||||||||||
Stock-based compensation | — | — | 15,442 | — | — | 15,442 | ||||||||||||||||
Net income | — | — | — | 24,875 | — | 24,875 | ||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (93 | ) | (93 | ) | ||||||||||||||
Pension benefit plan, net of tax | — | — | — | — | 220 | 220 | ||||||||||||||||
Balance at June 30, 2017 | 46,303 | $ | 463 | $ | 584,795 | $ | 139,085 | $ | 1,074 | $ | 725,417 | |||||||||||
For the Years Ended June 30, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 24,875 | $ | 19,742 | $ | 10,369 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expense | 32,269 | 15,742 | 13,840 | ||||||||
Stock-based compensation expense | 15,341 | 9,574 | 8,728 | ||||||||
Deferred income taxes | (7,841 | ) | (3,061 | ) | (1,038 | ) | |||||
Impairment of goodwill and long-lived assets | — | 231 | 2,283 | ||||||||
Excess tax benefit from stock-based compensation | — | — | (943 | ) | |||||||
Loss on sale of discontinued operations | — | — | 892 | ||||||||
Non-cash interest expense | 1,810 | 301 | — | ||||||||
Other non-cash items | (626 | ) | (722 | ) | (495 | ) | |||||
Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||||||
Accounts receivable, unbilled receivables, and costs in excess of billings | (14,054 | ) | (25,396 | ) | 5,935 | ||||||
Inventory | (9,318 | ) | (865 | ) | (345 | ) | |||||
Prepaid income taxes | 1,978 | 346 | (2,265 | ) | |||||||
Prepaid expenses and other current assets | (1,270 | ) | 2,964 | (4,964 | ) | ||||||
Other non-current assets | 372 | (778 | ) | 565 | |||||||
Accounts payable and accrued expenses | 3,520 | 18,871 | (475 | ) | |||||||
Deferred revenues and customer advances | (1,621 | ) | (194 | ) | 1,138 | ||||||
Income taxes payable | 9,622 | 253 | (938 | ) | |||||||
Other non-current liabilities | 4,089 | (68 | ) | (80 | ) | ||||||
Net cash provided by operating activities | 59,146 | 36,940 | 32,207 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of businesses, net of cash acquired | (77,757 | ) | (309,756 | ) | — | ||||||
Purchases of property and equipment | (32,844 | ) | (7,885 | ) | (5,984 | ) | |||||
Proceeds from sale of discontinued operations | — | — | 885 | ||||||||
Other investing activities | (486 | ) | (567 | ) | (499 | ) | |||||
Net cash used in investing activities | (111,087 | ) | (318,208 | ) | (5,598 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from equity offering, net | 215,725 | 92,778 | — | ||||||||
Proceeds from employee stock plans | 4,970 | 8,097 | 4,548 | ||||||||
Payment for retirement of common stock | (8,766 | ) | (7,955 | ) | (944 | ) | |||||
Excess tax benefit from stock-based compensation | — | — | 943 | ||||||||
Proceeds from issuance of term debt, net | — | 194,900 | — | ||||||||
Payments of debt issuance costs | (591 | ) | (2,926 | ) | — | ||||||
Payments of term debt | (200,000 | ) | — | — | |||||||
Payments of capital lease obligations | — | — | (642 | ) | |||||||
Net cash provided by financing activities | 11,338 | 284,894 | 3,905 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 549 | 479 | (215 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | (40,054 | ) | 4,105 | 30,299 | |||||||
Cash and cash equivalents at beginning of year | 81,691 | 77,586 | 47,287 | ||||||||
Cash and cash equivalents at end of year | $ | 41,637 | $ | 81,691 | $ | 77,586 | |||||
Cash paid during the period for: | |||||||||||
Interest | $ | 5,758 | $ | 1,041 | $ | 34 | |||||
Income taxes | $ | 2,834 | $ | 7,975 | $ | 7,875 | |||||
Supplemental disclosures—non-cash activities: | |||||||||||
Share-based business combination consideration | $ | — | $ | 407 | $ | — | |||||
• | estimated step-ups for the fixed assets and inventory; |
• | estimated fair values of intangible assets; and |
• | estimated income tax assets and liabilities assumed from the acquiree. |
Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | |||||||||
Beginning balance at July 1, | $ | 1,523 | $ | 1,974 | $ | 2,078 | |||||
Warranty assumed from CES | 176 | — | — | ||||||||
Warranty assumed from Delta | 30 | — | — | ||||||||
Warranty assumed from Carve-Out Business | — | 114 | — | ||||||||
Accruals for warranties issued during the period | 1,328 | 1,976 | 1,465 | ||||||||
Settlements made during the period | (1,366 | ) | (2,541 | ) | (1,569 | ) | |||||
Ending balance at June 30, | $ | 1,691 | $ | 1,523 | $ | 1,974 | |||||
Years Ended June 30, | ||||||||
2017 | 2016 | 2015 | ||||||
Basic weighted-average shares outstanding | 41,986 | 34,241 | 32,114 | |||||
Effect of dilutive equity instruments | 1,032 | 856 | 825 | |||||
Diluted weighted-average shares outstanding | 43,018 | 35,097 | 32,939 | |||||
C. | Acquisitions |
Amounts | |||
Consideration transferred | |||
Cash paid at closing | $ | 40,500 | |
Net purchase price | $ | 40,500 | |
Estimated fair value of tangible assets acquired and liabilities assumed | |||
Accounts receivable and cost in excess of billings | $ | 957 | |
Inventory | 4,452 | ||
Fixed assets | 1,918 | ||
Other current and non-current assets | 67 | ||
Current liabilities | (1,854 | ) | |
Estimated fair value of net tangible assets acquired | 5,540 | ||
Estimated fair value of identifiable intangible assets | 17,000 | ||
Estimated goodwill | 17,960 | ||
Estimated fair value of net assets acquired | 40,500 | ||
Net purchase price | $ | 40,500 | |
Amounts | |||
Consideration transferred | |||
Cash paid at closing | $ | 39,123 | |
Working capital adjustment | (330 | ) | |
Net purchase price | $ | 38,793 | |
Estimated fair value of tangible assets acquired and liabilities assumed | |||
Accounts receivable and cost in excess of billings | $ | 2,698 | |
Inventory | 8,950 | ||
Fixed assets | 1,480 | ||
Other current and non-current assets | 748 | ||
Current liabilities | (3,154 | ) | |
Non-current liabilities | (6,140 | ) | |
Deferred tax liabilities | (857 | ) | |
Estimated fair value of net tangible assets acquired | 3,725 | ||
Estimated fair value of identifiable intangible assets | 14,722 | ||
Estimated goodwill | 20,346 | ||
Estimated fair value of net assets acquired | 38,793 | ||
Net purchase price | $ | 38,793 | |
Amounts | |||
Consideration transferred | |||
Cash paid at closing | $ | 300,000 | |
Value allocated to replacement awards | 407 | ||
Working capital adjustment | (1,838 | ) | |
Net purchase price | $ | 298,569 | |
Fair value of tangible assets acquired and liabilities assumed | |||
Accounts receivable and cost in excess of billings | $ | 17,157 | |
Inventory | 25,477 | ||
Fixed assets | 13,996 | ||
Other current and non-current assets | 524 | ||
Current liabilities | (4,692 | ) | |
Non-current deferred tax liabilities | (25,449 | ) | |
Fair value of net tangible assets acquired | 27,013 | ||
Fair value of identifiable intangible assets | 102,800 | ||
Goodwill | 168,756 | ||
Fair value of assets acquired | 298,569 | ||
Net purchase price | $ | 298,569 | |
D. | Fair Value of Financial Instruments |
Fair Value Measurements | |||||||||||||||
June 30, 2017 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Certificates of deposit | $ | 1,043 | $ | — | $ | 1,043 | $ | — | |||||||
Total | $ | 1,043 | $ | — | $ | 1,043 | $ | — | |||||||
Fair Value Measurements | |||||||||||||||
June 30, 2016 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Certificates of deposit | $ | 30,075 | $ | — | $ | 30,075 | $ | — | |||||||
Total | $ | 30,075 | $ | — | $ | 30,075 | $ | — | |||||||
June 30, | |||||||
2017 | 2016 | ||||||
Raw materials | $ | 48,645 | $ | 31,205 | |||
Work in process | 22,567 | 15,967 | |||||
Finished goods | 9,859 | 11,112 | |||||
Total | $ | 81,071 | $ | 58,284 | |||
F. | Property and Equipment |
Estimated Useful Lives (Years) | June 30, | ||||||||
2017 | 2016 | ||||||||
Computer equipment and software | 3-4 | $ | 64,374 | $ | 62,409 | ||||
Furniture and fixtures | 5 | 4,810 | 8,547 | ||||||
Leasehold improvements | lesser of estimated useful life or lease term | 19,092 | 8,515 | ||||||
Machinery and equipment | 5-10 | 42,193 | 29,078 | ||||||
130,469 | 108,549 | ||||||||
Less: accumulated depreciation | (78,826 | ) | (80,212 | ) | |||||
$ | 51,643 | $ | 28,337 | ||||||
MCE | MDS | Carve-Out Business | Total | ||||||||||||
Balance at June 30, 2015 | $ | 134,378 | $ | 33,768 | $ | — | $ | 168,146 | |||||||
Goodwill arising from the LIT acquisition | — | 5,638 | — | 5,638 | |||||||||||
Goodwill arising from the Carve-Out Business Acquisition | — | — | 170,243 | 170,243 | |||||||||||
Balance at June 30, 2016 | $ | 134,378 | $ | 39,406 | $ | 170,243 | $ | 344,027 | |||||||
MCE | MDS | Carve-Out Business | Total | ||||||||||||
Balance at June 30, 2016 | $ | 134,378 | $ | 39,406 | $ | 170,243 | $ | 344,027 | |||||||
Goodwill adjustment for the Carve-Out Business acquisition | — | — | (1,487 | ) | (1,487 | ) | |||||||||
Goodwill arising from the CES acquisition | 20,346 | — | — | 20,346 | |||||||||||
Goodwill arising from the Delta acquisition | 17,960 | — | — | 17,960 | |||||||||||
Balance at May 31, 2017 | $ | 172,684 | $ | 39,406 | $ | 168,756 | $ | 380,846 | |||||||
H. | Intangible Assets |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life | ||||||||||
June 30, 2017 | |||||||||||||
Customer relationships | $ | 117,630 | $ | (31,533 | ) | $ | 86,097 | 10.0 years | |||||
Licensing agreements and patents | 1,131 | (277 | ) | 854 | 3.7 years | ||||||||
Completed technologies | 44,503 | (6,079 | ) | 38,424 | 7.9 years | ||||||||
Backlog | 5,430 | (1,768 | ) | 3,662 | 2.0 years | ||||||||
$ | 168,694 | $ | (39,657 | ) | $ | 129,037 | |||||||
June 30, 2016 | |||||||||||||
Customer relationships | $ | 105,370 | $ | (23,824 | ) | $ | 81,546 | 9.9 years | |||||
Licensing agreements and patents | 756 | (38 | ) | 718 | 4.0 years | ||||||||
Completed technologies | 35,840 | (3,545 | ) | 32,295 | 7.6 years | ||||||||
Backlog | 2,330 | (216 | ) | 2,114 | 2.0 years | ||||||||
$ | 144,296 | $ | (27,623 | ) | $ | 116,673 | |||||||
Year Ending June 30, | |||
2018 | $ | 21,722 | |
2019 | 17,542 | ||
2020 | 14,767 | ||
2021 | 14,165 | ||
2022 | 14,165 | ||
Thereafter | 46,676 | ||
Total future amortization expense | $ | 129,037 | |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life | ||||||||||
Customer relationships | $ | 8,000 | $ | (225 | ) | $ | 7,775 | 9.1 years | |||||
Completed technologies | 5,900 | (148 | ) | 5,752 | 10.0 years | ||||||||
Backlog | 3,100 | (388 | ) | 2,712 | 2.0 years | ||||||||
$ | 17,000 | $ | (761 | ) | $ | 16,239 | |||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life | ||||||||||
Customer relationships | $ | 9,060 | $ | (681 | ) | $ | 8,379 | 9.0 years | |||||
Completed technologies | 5,662 | (547 | ) | 5,115 | 7.0 years | ||||||||
$ | 14,722 | $ | (1,228 | ) | $ | 13,494 | |||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life | ||||||||||
Customer relationships | $ | 70,900 | $ | (7,856 | ) | $ | 63,044 | 11.5 years | |||||
Completed technologies | 29,700 | (4,690 | ) | 25,010 | 7.8 years | ||||||||
Backlog | 2,200 | (1,283 | ) | 917 | 2.0 years | ||||||||
$ | 102,800 | $ | (13,829 | ) | $ | 88,971 | |||||||
Severance & Related | Facilities & Other | Total | |||||||||
Restructuring liability at June 30, 2015 | $ | 657 | $ | 1,335 | $ | 1,992 | |||||
Restructuring charges | 752 | 589 | 1,341 | ||||||||
Cash paid | (1,118 | ) | (1,188 | ) | (2,306 | ) | |||||
Reversals (*) | (101 | ) | — | (101 | ) | ||||||
Restructuring liability at June 30, 2016 | 190 | 736 | 926 | ||||||||
Restructuring charges | 1,706 | 253 | 1,959 | ||||||||
Cash paid | (524 | ) | (989 | ) | (1,513 | ) | |||||
Reversals (*) | (7 | ) | — | (7 | ) | ||||||
Restructuring liability at June 30, 2017 | $ | 1,365 | $ | — | $ | 1,365 | |||||
Year Ended June 30, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Income from continuing operations before income taxes: | |||||||||||
United States | $ | 30,499 | $ | 25,194 | $ | 18,443 | |||||
Foreign | 569 | 92 | 352 | ||||||||
$ | 31,068 | $ | 25,286 | $ | 18,795 | ||||||
Tax provision (benefit): | |||||||||||
Federal: | |||||||||||
Current | $ | 11,476 | $ | 6,707 | $ | 4,267 | |||||
Deferred | (7,645 | ) | (2,627 | ) | (458 | ) | |||||
$ | 3,831 | $ | 4,080 | $ | 3,809 | ||||||
State: | |||||||||||
Current | $ | 3,650 | $ | 1,839 | $ | 1,372 | |||||
Deferred | (1,684 | ) | (424 | ) | (921 | ) | |||||
$ | 1,966 | $ | 1,415 | $ | 451 | ||||||
Foreign: | |||||||||||
Current | $ | 240 | $ | 59 | $ | 58 | |||||
Deferred | 156 | (10 | ) | 48 | |||||||
396 | 49 | 106 | |||||||||
$ | 6,193 | $ | 5,544 | $ | 4,366 | ||||||
Year Ended June 30, | ||||||||
2017 | 2016 | 2015 | ||||||
Tax provision at federal statutory rates | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income tax, net of federal tax benefit | 4.9 | 5.0 | 4.9 | |||||
Research and development credits | (6.1 | ) | (8.4 | ) | (4.8 | ) | ||
Excess tax benefits on stock compensation | (13.1 | ) | (4.4 | ) | — | |||
Domestic manufacturing deduction | (3.9 | ) | (3.5 | ) | (3.2 | ) | ||
Income from legal settlement excluded from taxable income | — | (2.8 | ) | — | ||||
Deemed repatriation of foreign earnings | (0.1 | ) | (0.2 | ) | (0.4 | ) | ||
Foreign income tax rate differential | 0.2 | — | — | |||||
Equity compensation | 0.6 | 0.3 | (0.1 | ) | ||||
Officers' compensation | 1.2 | 2.3 | 2.8 | |||||
Deferred tax asset and liability adjustments | — | — | (4.2 | ) | ||||
Change in state tax rates | — | — | (3.1 | ) | ||||
Acquisition costs | 0.9 | — | — | |||||
Reserves for tax contingencies | (0.6 | ) | (3.2 | ) | (5.0 | ) | ||
Other | 0.9 | 1.8 | 1.3 | |||||
19.9 | % | 21.9 | % | 23.2 | % | |||
June 30, | |||||||
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Inventory valuation and receivable allowances | $ | 13,845 | $ | 12,768 | |||
Accrued compensation | 4,555 | 3,267 | |||||
Equity compensation | 4,858 | 3,201 | |||||
Federal and state research and development tax credit carryforwards | 13,415 | 15,870 | |||||
Gain on sale-leaseback | — | 371 | |||||
Other accruals | 2,125 | 1,570 | |||||
Deferred compensation | 1,606 | — | |||||
Capital loss carryforwards | 3,562 | 3,562 | |||||
Other temporary differences | 1,500 | 4,011 | |||||
45,466 | 44,620 | ||||||
Valuation allowance | (16,570 | ) | (18,472 | ) | |||
Total deferred tax assets | 28,896 | 26,148 | |||||
Deferred tax liabilities: | |||||||
Prepaid expenses | (481 | ) | (773 | ) | |||
Property and equipment | (3,749 | ) | (2,451 | ) | |||
Intangible assets | (28,163 | ) | (33,826 | ) | |||
Tax method of accounting change | (285 | ) | (570 | ) | |||
Other temporary differences | (441 | ) | (370 | ) | |||
Total deferred tax liabilities | (33,119 | ) | (37,990 | ) | |||
Net deferred tax (liabilities) assets | $ | (4,223 | ) | $ | (11,842 | ) | |
As reported: | |||||||
Deferred tax assets | $ | 633 | $ | — | |||
Deferred tax liabilities | (4,856 | ) | (11,842 | ) | |||
$ | (4,223 | ) | $ | (11,842 | ) | ||
Year Ended June 30, | |||||||
2017 | 2016 | ||||||
Unrecognized tax benefits, beginning of period | $ | 1,566 | $ | 2,190 | |||
Increases for previously recognized positions | 46 | 79 | |||||
Settlements of previously recognized positions | (793 | ) | — | ||||
Reductions as a result of a lapse of the applicable statute of limitations | (273 | ) | — | ||||
Increases for currently recognized positions | 384 | 302 | |||||
Reductions for previously recognized positions deemed effectively settled | — | (681 | ) | ||||
Reductions for previously recognized positions | (126 | ) | (324 | ) | |||
Unrecognized tax benefits, end of period | $ | 804 | $ | 1,566 | |||
Year Ending June 30, | |||
2018 | $ | 6,139 | |
2019 | 5,595 | ||
2020 | 5,208 | ||
2021 | 4,291 | ||
2022 | 3,387 | ||
Thereafter | 18,897 | ||
Total minimum lease payments | $ | 43,517 | |
Year Ended June 30, | |||
2018 | $ | 526 | |
2019 | 678 | ||
2020 | 800 | ||
2021 | 497 | ||
2022 | 622 | ||
Thereafter (next 5 years) | 3,928 | ||
Total | $ | 7,051 | |
Year Ended June 30, 2017 | |||
Service cost | $ | 557 | |
Interest cost | 73 | ||
Expected return on assets | (105 | ) | |
Amortization of prior service cost | 20 | ||
Net periodic benefit cost | $ | 545 | |
Year Ended June 30, 2017 | ||
Discount rate | 0.70 | % |
Expected rate of return on Plan assets | 1.50 | % |
Expected inflation | 1.00 | % |
Rate of compensation increases | 1.00 | % |
Year Ending June 30, 2017 | |||
Projected benefit obligation at November 4, 2016 | $ | 17,086 | |
Service cost | 557 | ||
Interest cost | 73 | ||
Employee contributions | 581 | ||
Actuarial gain | (598 | ) | |
Benefits paid | (563 | ) | |
Plan amendment | 390 | ||
Projected benefit obligation at end of year | $ | 17,526 | |
Year Ending June 30, 2017 | |||
Fair value of plan assets at November 4, 2016 | $ | 10,459 | |
Actual return on Plan assets | 100 | ||
Company contributions | 348 | ||
Employee contributions | 581 | ||
Benefits paid | (563 | ) | |
Fair value of plan assets at end of year | $ | 10,925 | |
Year Ended June 30, 2017 | |||
Projected benefit obligation at end of year | $ | 17,526 | |
Fair value of plan assets at end of year | 10,925 | ||
Funded status | $ | (6,601 | ) |
Options Outstanding | ||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value as of 6/30/2017 | |||||||||
Outstanding at June 30, 2015 | 830 | $ | 13.43 | 1.66 | ||||||||
Granted | — | — | ||||||||||
Exercised | (524 | ) | 13.12 | |||||||||
Cancelled | (48 | ) | 17.25 | |||||||||
Outstanding at June 30, 2016 | 258 | $ | 13.34 | 1.06 | ||||||||
Granted | — | — | ||||||||||
Exercised | (207 | ) | 13.29 | |||||||||
Cancelled | — | — | ||||||||||
Outstanding at June 30, 2017 | 51 | $ | 13.53 | 0.60 | $ | 1,442 | ||||||
Vested and expected to vest at June 30, 2017 | 51 | $ | 13.53 | 0.60 | $ | 1,442 | ||||||
Exercisable at June 30, 2017 | 51 | $ | 13.53 | 0.60 | $ | 1,442 | ||||||
Non-Vested Restricted Stock Awards | ||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||
Outstanding at June 30, 2015 | 1,866 | $ | 10.72 | |||
Granted | 667 | 16.26 | ||||
Vested | (743 | ) | 10.93 | |||
Forfeited | (124 | ) | 11.70 | |||
Outstanding at June 30, 2016 | 1,666 | $ | 13.09 | |||
Granted | 718 | 24.72 | ||||
Vested | (769 | ) | 11.94 | |||
Forfeited | (51 | ) | 15.02 | |||
Outstanding at June 30, 2017 | 1,564 | $ | 18.93 | |||
Year Ended June 30, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cost of revenues | $ | 531 | $ | 441 | $ | 493 | |||||
Selling, general and administrative | 13,212 | 7,864 | 6,751 | ||||||||
Research and development | 1,598 | 1,269 | 1,396 | ||||||||
Share-based compensation expense before tax | 15,341 | 9,574 | 8,640 | ||||||||
Income taxes | (5,874 | ) | (3,727 | ) | (3,332 | ) | |||||
Share-based compensation expense, net of income taxes | $ | 9,467 | $ | 5,847 | $ | 5,308 | |||||
US | Europe | Asia Pacific | Eliminations | Total | |||||||||||||||
YEAR ENDED JUNE 30, 2017 | |||||||||||||||||||
Net revenues to unaffiliated customers | $ | 380,538 | $ | 22,242 | $ | 5,808 | $ | — | $ | 408,588 | |||||||||
Inter-geographic revenues | 7,637 | 44 | — | (7,681 | ) | — | |||||||||||||
Net revenues | $ | 388,175 | $ | 22,286 | $ | 5,808 | $ | (7,681 | ) | $ | 408,588 | ||||||||
Identifiable long-lived assets (1) | $ | 50,340 | $ | 1,288 | $ | 15 | $ | — | $ | 51,643 | |||||||||
YEAR ENDED JUNE 30, 2016 | |||||||||||||||||||
Net revenues to unaffiliated customers | $ | 259,781 | $ | 5,464 | $ | 4,909 | $ | — | $ | 270,154 | |||||||||
Inter-geographic revenues | 7,911 | 447 | — | (8,358 | ) | — | |||||||||||||
Net revenues | $ | 267,692 | $ | 5,911 | $ | 4,909 | $ | (8,358 | ) | $ | 270,154 | ||||||||
Identifiable long-lived assets (1) | $ | 28,187 | $ | 127 | $ | 23 | $ | — | $ | 28,337 | |||||||||
YEAR ENDED JUNE 30, 2015 | |||||||||||||||||||
Net revenues to unaffiliated customers | $ | 229,849 | $ | 2,076 | $ | 2,922 | $ | — | $ | 234,847 | |||||||||
Inter-geographic revenues | 2,806 | 475 | — | (3,281 | ) | — | |||||||||||||
Net revenues | $ | 232,655 | $ | 2,551 | $ | 2,922 | $ | (3,281 | ) | $ | 234,847 | ||||||||
Identifiable long-lived assets (1) | $ | 13,127 | $ | 68 | $ | 31 | $ | — | $ | 13,226 | |||||||||
Year Ended June 30, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Domestic (1) | $ | 341,699 | $ | 220,253 | $ | 189,596 | ||||||
International/Foreign Military Sales (2) | 66,889 | 49,901 | 45,251 | |||||||||
Total Net Revenue | $ | 408,588 | $ | 270,154 | $ | 234,847 | ||||||
Year Ended June 30, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Radar (1) | $ | 150,441 | $ | 140,289 | $ | 143,475 | ||||||
Electronic Warfare (2) | 106,446 | 72,118 | 51,419 | |||||||||
Other (3) | 151,701 | 57,747 | 39,953 | |||||||||
Total Net Revenue | $ | 408,588 | $ | 270,154 | $ | 234,847 | ||||||
Year Ended June 30, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Components (1) | $ | 105,669 | $ | 31,252 | $ | 15,543 | ||||||
Modules and Sub-assemblies (2) | 161,973 | 126,777 | 107,922 | |||||||||
Integrated Subsystems (3) | 140,946 | 112,125 | 111,382 | |||||||||
Total Net Revenue | $ | 408,588 | $ | 270,154 | $ | 234,847 | ||||||
Year Ended June 30, | ||||||||
2017 | 2016 | 2015 | ||||||
Lockheed Martin Corporation | 20 | % | 23 | % | 20 | % | ||
Raytheon Company | 16 | 20 | 37 | |||||
36 | % | 43 | % | 57 | % | |||
Year Ended June 30, | ||||||||
2017 | 2016 | 2015 | ||||||
SEWIP | * | 12 | % | * | ||||
Aegis | * | 10 | % | 12 | % | |||
Patriot | * | * | 18 | % | ||||
F-35 | * | * | 16 | % | ||||
— | % | 22 | % | 46 | % | |||
For the Year Ended June 30, | |||
2015 | |||
Net revenues of discontinued operations | $ | 3,493 | |
Costs of discontinued operations: | |||
Cost of revenues | 2,385 | ||
Selling, general and administrative | 1,958 | ||
Research and development | 305 | ||
Amortization of intangible assets | 279 | ||
Restructuring and other charges | — | ||
Impairment of goodwill | 2,283 | ||
Loss from discontinued operations before income taxes | (3,717 | ) | |
Loss on disposal of discontinued operations before income taxes | (892 | ) | |
Tax benefit | (549 | ) | |
Loss from discontinued operations, net of income taxes | $ | (4,060 | ) |
For the Year Ended June 30, 2015 | |||
Depreciation | $ | 100 | |
Amortization of intangible assets | $ | 279 | |
Capital expenditures | $ | — | |
Impairment of goodwill | $ | 2,283 | |
Stock-based compensation expense | $ | 88 | |
2017 (In thousands, except per share data) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Net revenues | $ | 87,649 | $ | 98,014 | $ | 107,317 | $ | 115,608 | |||||||
Gross margin | $ | 39,444 | $ | 47,389 | $ | 50,783 | $ | 53,927 | |||||||
Income from operations | $ | 3,742 | $ | 8,958 | $ | 11,695 | $ | 13,008 | |||||||
Income from continuing operations before income taxes | $ | 2,560 | $ | 6,983 | $ | 10,218 | $ | 11,307 | |||||||
Income tax (benefit) provision | $ | (1,259 | ) | $ | 1,779 | $ | 3,170 | $ | 2,503 | ||||||
Income from continuing operations | $ | 3,819 | $ | 5,204 | $ | 7,048 | $ | 8,804 | |||||||
Net income | $ | 3,819 | $ | 5,204 | $ | 7,048 | $ | 8,804 | |||||||
Net income per share: | |||||||||||||||
Basic net income per share: | $ | 0.10 | $ | 0.13 | $ | 0.16 | $ | 0.19 | |||||||
Diluted net income per share: | $ | 0.10 | $ | 0.13 | $ | 0.16 | $ | 0.19 | |||||||
2016 (In thousands, except per share data) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||
Net revenues | $ | 58,409 | $ | 60,417 | $ | 65,898 | $ | 85,430 | |||||||
Gross margin (1) | $ | 28,302 | $ | 29,739 | $ | 31,402 | $ | 38,176 | |||||||
Income from operations | $ | 3,131 | $ | 6,369 | $ | 6,819 | $ | 7,654 | |||||||
Income from continuing operations before income taxes | $ | 3,224 | $ | 6,473 | $ | 6,999 | $ | 8,590 | |||||||
Income tax provision (2) | $ | 368 | $ | 1,433 | $ | 2,642 | $ | 1,101 | |||||||
Income from continuing operations | $ | 2,856 | $ | 5,040 | $ | 4,357 | $ | 7,489 | |||||||
Net income | $ | 2,856 | $ | 5,040 | $ | 4,357 | $ | 7,489 | |||||||
Net income per share: | |||||||||||||||
Basic net income per share | $ | 0.09 | $ | 0.15 | $ | 0.13 | $ | 0.20 | |||||||
Diluted net income per share | $ | 0.08 | $ | 0.15 | $ | 0.13 | $ | 0.19 | |||||||
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
(a) | EFFECTIVENESS OF DISCLOSURE CONTROLS AND PROCEDURES |
(b) | INHERENT LIMITATIONS ON EFFECTIVENESS OF CONTROLS |
(c) | MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING |
(d) | CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING |
• | an increase for the annual perquisite for the Company’s executive officers from up to $2,000 annually for personal tax and financial planning to a $4,000 annual allowance for personal tax and financial planning; |
• | an amendment to Mr. Aslett's employment agreement to provide that he is entitled to continue to participate in the Company’s group health, dental, and vision programs for 24 months following a termination of his employment by the Company without “cause” or by him for “good reason” (as defined in his employment agreement); and |
• | an agreement for each of the Company’s non-CEO named executive officers that provides for termination and severance benefits in the case of a termination of the executive's employment by the Company without “cause” or by the executive for “good reason.” |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
1. | Financial statements: |
2. | Financial Statement Schedule: |
II. | Valuation and Qualifying Accounts |
BALANCE AT BEGINNING OF PERIOD | ADDITIONS | REVERSALS | WRITE- OFFS | BALANCE AT END OF PERIOD | |||||||||||||||
2017 | $ | 92 | $ | 22 | $ | — | $ | 31 | $ | 83 | |||||||||
2016 | $ | 56 | $ | 425 | $ | — | $ | 389 | $ | 92 | |||||||||
2015 | $ | 34 | $ | 44 | $ | 1 | $ | 21 | $ | 56 | |||||||||
BALANCE AT BEGINNING OF PERIOD | CHARGED TO COSTS & EXPENSES | CHARGED TO OTHER ACCOUNTS | DEDUCTIONS | BALANCE AT END OF PERIOD | |||||||||||||||
2017 | $ | 18,472 | $ | (1,902 | ) | $ | — | $ | — | $ | 16,570 | ||||||||
2016 | $ | 18,864 | $ | (392 | ) | $ | — | $ | — | $ | 18,472 | ||||||||
2015 | $ | 10,844 | $ | 8,020 | $ | — | $ | — | $ | 18,864 | |||||||||
MERCURY SYSTEMS, INC. | ||
By | /s/ GERALD M. HAINES II | |
Gerald M. Haines II EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER, AND TREASURER [PRINCIPAL FINANCIAL OFFICER] | ||
Signature | Title(s) | Date | ||
/s/ MARK ASLETT | President, Chief Executive Officer and Director (principal executive officer) | August 18, 2017 | ||
Mark Aslett | ||||
/S/ GERALD M. HAINES II | Executive Vice President, Chief Financial Officer, and Treasurer (principal financial officer) | August 18, 2017 | ||
Gerald M. Haines II | ||||
/S/ CHARLES A. SPEICHER | Vice President, Controller, and Chief Accounting Officer (principal accounting officer) | August 18, 2017 | ||
Charles A. Speicher | ||||
/S/ VINCENT VITTO | Chairman of the Board of Directors | August 18, 2017 | ||
Vincent Vitto | ||||
/S/ JAMES K. BASS | Director | August 18, 2017 | ||
James K. Bass | ||||
/S/ MICHAEL A. DANIELS | Director | August 18, 2017 | ||
Michael A. Daniels | ||||
/S/ LISA S. DISBROW | Director | August 18, 2017 | ||
Lisa S. Disbrow | ||||
/S/ MARY LOUISE KRAKAUER | Director | August 18, 2017 | ||
Mary Louise Krakauer | ||||
/S/ GEORGE K. MUELLNER | Director | August 18, 2017 | ||
George K. Muellner | ||||
/S/ MARK S. NEWMAN | Director | August 18, 2017 | ||
Mark S. Newman | ||||
/S/ WILLIAM K. O’BRIEN | Director | August 18, 2017 | ||
William K. O’Brien | ||||
ITEM NO. | DESCRIPTION OF EXHIBIT | |
1.1 | Underwriting Agreement, dated April 7, 2016, among Mercury Systems, Inc. as issuer and Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as representatives of the several underwriters named therein (incorporated herein by reference to Exhibit 1.1 of the Company's current report on Form 8-K filed on April 8, 2016) | |
1.2 | Underwriting Agreement, dated January 26, 2017, among the Company as issuer and Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC as representatives of the several underwriters named therein (incorporated herein by reference to Exhibit 1.1 of the Company's current report on Form 8-K filed on January 27, 2017) | |
3.1.1 | Articles of Organization (incorporated herein by reference to Exhibit 3.1.1 of the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2009) | |
3.1.2 | Articles of Amendment (incorporated herein by reference to Exhibit 3.1.2 of the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2010) | |
3.1.3 | Articles of Amendment (incorporated herein by reference to Exhibit 1 of the Company’s registration statement on Form 8-A filed on December 15, 2005) | |
3.1.4 | Articles of Amendment (incorporated herein by reference to Exhibit 3.1 of the Company's current report on Form 8-K filed on November 13, 2012) | |
3.1.5 | Articles of Amendment (incorporated herein by reference to Exhibit 3.1 of the Company's current report on Form 8-K filed on June 30, 2015) | |
3.2 | Bylaws, amended and restated effective as of January 17, 2017 (incorporated herein by reference to Exhibit 3.1 of the Company’s current report on Form 8-K filed on January 20, 2017 | |
4.1 | Form of Stock Certificate (incorporated herein by reference to Exhibit 4.1 of the Company’s Registration Statement on Form S-1 (File No. 333-41139)) | |
10.1* | 1997 Employee Stock Purchase Plan, as amended and restated (incorporated herein by reference to Appendix B to the Company’s definitive proxy statement filed on October 29, 2015) | |
10.2* | Form of Indemnification Agreement between the Company and each of its current directors (incorporated herein by reference to Exhibit 10.4 of the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2009) | |
10.3* | Annual Executive Bonus Plan - Corporate Financial Performance (incorporated herein by reference to Appendix A to the Company’s definitive proxy statement filed on August 30, 2013) | |
10.4* | 2005 Stock Incentive Plan, as amended and restated (incorporated herein by reference to Appendix A to the Company’s definitive proxy statement filed on September 20, 2016) | |
10.5.1* | Form of Stock Option Agreement under the 2005 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.8.1 of the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2011) | |
10.5.2* | Form of Restricted Stock Award Agreement under the 2005 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.8.2 of the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2011) | |
10.5.3* | Form of Deferred Stock Award Agreement under the 2005 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.8.3 of the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2011) | |
10.5.4* | Form of Stock Option Agreement for performance stock options under the 2005 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.1 of the Company’s current report on Form 8-K filed on September 28, 2007) | |
10.5.5* | Form of Amended and Restated Performance-Based Restricted Stock Award Agreement under the 2005 Stock Incentive Plan (incorporated herein by reference to Exhibit 10.1 of the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2014) | |
10.6.1* | Form of Change in Control Severance Agreement between the Company and Mark Aslett (incorporated herein by reference to Exhibit 10.9.1 of the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2011) | |
10.6.2* | Form of Change in Control Severance Agreement between the Company and Non-CEO Executives (incorporated herein by reference to Exhibit 10.9.2 of the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2011) | |
10.7† | Compensation Policy for Non-Employee Directors | |
ITEM NO. | DESCRIPTION OF EXHIBIT | |
10.8.1* | Employment Agreement, dated as of November 19, 2007, by and between the Company and Mark Aslett (incorporated herein by reference to Exhibit 10.1 of the Company’s current report on Form 8-K filed on November 20, 2007) | |
10.8.2* | First Amendment to Employment Agreement, dated as of December 20, 2008, by and between the Company and Mark Aslett (incorporated by reference to Exhibit 10.2 of the Company’s quarterly report on Form 10-Q for the quarter ended December 31, 2008) | |
10.8.3* | Second Amendment to Employment Agreement, dated as of September 30, 2009, by and between the Company and Mark Aslett (incorporated by reference to Exhibit 10.1 of the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2009) | |
10.9* | Agreement, dated March 1, 2010, by and between the Company and Gerald M. Haines II (incorporated herein by reference to Exhibit 10.13 of the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2011) | |
10.10 | Micronetics, Inc. 2006 Equity Incentive Plan (incorporated herein by reference to Exhibit 99.1 to the Company’s registration statement on Form S-8 filed on August 10, 2012) | |
10.11 | Stock Purchase Agreement by and between Mercury Systems, Inc. and Microsemi Corporation, dated as of March 23, 2016 (incorporated by reference to Exhibit 10.1 of the Company's current report on Form 8-K filed on April 4, 2016) | |
10.12.1 | Credit Agreement, dated May 2, 2016, among Mercury Systems, Inc., the Guarantors party thereto, the Lenders party thereto and Bank of America, N.A., as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 10.1 of the Company's current report on Form 8-K filed on May 2, 2016) | |
10.12.2 | Amendment No. 1 to Credit Agreement, dated June 27, 2017, among Mercury Systems, Inc., the Guarantors party thereto, the Lenders party thereto and Bank of America, N.A., as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 10.1 of the Company's current report on Form 8-K filed on June 27, 2017) | |
12.1† | Computation of Ratio of Earnings to Fixed Charges | |
21.1† | Subsidiaries of the Company | |
23.1† | Consent of KPMG LLP | |
31.1† | Certification of the Company’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2† | Certification of the Company’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1+ | Certification of the Company’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101† | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Statement of Operations, (ii) Consolidated Balance Sheet, (iii) Consolidated Statement of Shareholders’ Equity, (iv) Consolidated Statement of Cash Flows, and (v) Notes to Consolidated financial Statements | |
* | Identifies a management contract or compensatory plan or arrangement in which an executive officer or director of the Company participates. |
† | Filed with this Form 10-K. |
+ | Furnished herewith. This certification shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
• | a market survey of Board compensation to peer companies at the 50th and 75th percentiles; |
• | a review of Board and Committee meeting frequency; |
• | Board member personal preparation time for Board and Committee meetings; and |
• | Board member responsibilities. |
NAME | JURISDICTION OF ORGANIZATION |
Mercury Defense Systems, Inc. | California |
Mercury Mission Systems, LLC | Delaware |
Delta Microwave, LLC | California |
Mercury Corp. - Security Solutions | Delaware |
Arxan Research, Inc. | Delaware |
Nihon Mercury Computer Systems K.K. | Japan |
Mercury Computer Systems Limited. | United Kingdom |
Mercury Mission Systems Canada, Inc. | Canada |
Mercury Mission Systems Holding SA | Switzerland |
Mercury Mission Systems SA | Switzerland |
Creative Electronic Systems SL | Spain |
CES do Brasil Creative Electronic Systems Participacces Ltda. | Brazil |
1. | I have reviewed this annual report on Form 10-K of Mercury Systems, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ MARK ASLETT |
Mark Aslett |
PRESIDENT AND CHIEF EXECUTIVE OFFICER [PRINCIPAL EXECUTIVE OFFICER] |
1. | I have reviewed this annual report on Form 10-K of Mercury Systems, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ GERALD M. HAINES II |
Gerald M. Haines II |
EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER, AND TREASURER [PRINCIPAL FINANCIAL OFFICER] |
/S/ MARK ASLETT |
Mark Aslett PRESIDENT AND CHIEF EXECUTIVE OFFICER |
/S/ GERALD M. HAINES II |
Gerald M. Haines II EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER, AND TREASURER |
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jul. 31, 2017 |
Dec. 31, 2016 |
|
| Document Documentand Entity Information [Abstract] | |||
| Document Type | 10-K | ||
| Amendment Flag | false | ||
| Document Period End Date | Jun. 30, 2017 | ||
| Document Fiscal Year Focus | 2017 | ||
| Document Fiscal Period Focus | FY | ||
| Trading Symbol | MRCY | ||
| Entity Registrant Name | MERCURY SYSTEMS INC | ||
| Entity Central Index Key | 0001049521 | ||
| Current Fiscal Year End Date | --06-30 | ||
| Entity Well-known Seasoned Issuer | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Filer Category | Accelerated Filer | ||
| Entity Common Stock, Shares Outstanding | 48,108,360 | ||
| Entity Public Float | $ 1,241.0 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Jun. 30, 2016 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Accounts receivable, allowance for doubtful accounts | $ 83 | $ 92 |
| Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
| Preferred stock, shares issued | 0 | 0 |
| Preferred stock, shares outstanding | 0 | 0 |
| Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Common stock, shares authorized | 85,000,000 | 85,000,000 |
| Common stock, shares issued | 46,303,075 | 38,675,340 |
| Common stock, shares outstanding | 46,303,075 | 38,675,340 |
Description of Business |
12 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Description of Business | Description of Business Mercury Systems, Inc. (the “Company” or “Mercury”) is a leading commercial provider of secure sensor and safety critical mission processing subsystems. Optimized for customer and mission success, its solutions power a wide variety of critical defense and intelligence programs. Headquartered in Andover, Massachusetts, it is pioneering a next-generation defense electronics business model specifically designed to meet the industry's current and emerging technology and business needs. The Company delivers affordable innovative solutions, rapid time-to-value and service and support to its defense prime contractor customers. The Company's products and solutions have been deployed in more than 300 programs with over 25 different defense prime contractors. Key programs include Aegis, Patriot, Surface Electronic Warfare Improvement Program ("SEWIP"), Gorgon Stare, Predator, F-16, F-35, E2D Hawkeye, Reaper and Paveway. The Company's organizational structure allows it to deliver capabilities that combine technology building blocks and deep domain expertise in the aerospace defense sector. On April 3, 2017, the Company acquired Delta Microwave, LLC (“Delta”) on a cash-free, debt-free basis for a total purchase price of $40,500, subject to net working capital and net debt adjustments. Based in Oxnard, California, Delta is a leading designer and manufacturer of high-value radio frequency ("RF"), microwave and millimeter wave sub-assemblies and components for the military, aerospace, and space markets. See Note C to consolidated financial statements. On November 3, 2016, the Company acquired CES Creative Electronic Systems, S.A. (“CES”) for a total purchase price of approximately $39,123, subject to net working capital and net debt adjustments. Based in Geneva, Switzerland, CES is a leading provider of embedded solutions for military and aerospace mission critical computing applications. CES specializes in the design, development and manufacture of safety-certifiable product and subsystems solutions including: primary flight control units, flight test computers, mission computers, command and control processors, graphics and video processing and avionics-certified Ethernet and input-output ("IO"). CES has decades of experience designing subsystems deployed in applications certified up to the highest levels of design assurance. CES products and solutions are used on platforms such as aerial refueling tankers and multi-mission aircraft, as well as several types of unmanned platforms. See Note C to consolidated financial statements. On May 2, 2016, the Company acquired the custom microelectronics, RF and microwave solutions, and embedded security operations of Microsemi Corporation (the “Carve-Out Business”), resulting in the entities comprising the Carve-Out Business becoming 100% owned direct or indirect subsidiaries of Mercury (the “Carve-Out Acquisition”). Under the terms of the Purchase Agreement, the Company paid $300,000 in cash on a cash-free, debt-free basis, subject to working capital and other post-closing adjustments. |
Summary of Significant Accounting Policies |
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| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies | Summary of Significant Accounting Policies PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. USE OF ESTIMATES The preparation of financial statements in conformity with Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. RECLASSIFICATION The Company included costs related to the sustainment of its product portfolio as research and development expense, which was previously included as costs of revenues on the Consolidated Statements of Operations and Comprehensive Income. For comparative purposes, for the fiscal years ended June 30, 2016 and 2015, the Company has reclassified $2,845 and $3,981, respectively, from costs of revenues to research and development expense. BUSINESS COMBINATIONS The Company utilizes the acquisition method of accounting under FASB ASC 805, Business Combinations, (“FASB ASC 805”), for all transactions and events which it obtains control over one or more other businesses, to recognize the fair value of all assets and liabilities acquired, even if less than one hundred percent ownership is acquired, and in establishing the acquisition date fair value as measurement date for all assets and liabilities assumed. The Company also utilizes FASB ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations. Other estimates include:
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business acquisition date, the estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the purchase price allocation period, which is generally one year from the business acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. For changes in the valuation of intangible assets between the preliminary and final purchase price allocation, the related amortization is adjusted in the period it occurs. Subsequent to the purchase price allocation period, any adjustment to assets acquired or liabilities assumed is included in operating results in the period in which the adjustment is determined. REVENUE RECOGNITION The Company relies upon FASB ASC 605, Revenue Recognition, to account for its revenue transactions. Revenue is recognized upon shipment provided that title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sales price is fixed or determinable, collection of the related receivable is reasonably assured, and customer acceptance criteria, if any, have been successfully demonstrated. Out-of-pocket expenses that are reimbursable by the customer are included in revenue and cost of revenue. Certain contracts with customers require the Company to perform tests of its products prior to shipment to ensure their performance complies with the Company’s published product specifications and, on occasion, with additional customer-requested specifications. In these cases, the Company conducts such tests and, if they are completed successfully, includes a written confirmation with each order shipped. As a result, at the time of each product shipment, the Company believes that no further customer testing requirements exist and that there is no uncertainty of acceptance by its customer. The Company uses FASB Accounting Standards Update (“ASU”) No. 2009-13 (“FASB ASU 2009-13”), Multiple-Deliverable Revenue Arrangements. FASB ASU 2009-13 establishes a selling price hierarchy for determining the selling price of a deliverable, which includes: (1) vendor-specific objective evidence (“VSOE”) if available; (2) third-party evidence (“TPE”) if VSOE is not available; and (3) best estimated selling price (“BESP”), if neither VSOE nor TPE is available. Additionally, FASB ASU 2009-13 expands the disclosure requirements related to a vendor’s multiple-deliverable revenue arrangements. The Company enters into multiple-deliverable arrangements that may include a combination of hardware components, related integration or other services. These arrangements generally do not include any performance-, cancellation-, termination- or refund-type provisions. In accordance with the provisions of FASB ASU 2009-13, the Company allocates arrangement consideration to each deliverable in an arrangement based on its relative selling price. The Company generally expects that it will not be able to establish VSOE or TPE due to limited single element transactions and the nature of the markets in which the Company competes, and, as such, the Company typically determines its relative selling price using BESP. The Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact if the product or service were sold by the Company on a standalone basis. The Company’s determination of BESP involves the consideration of several factors based on the specific facts and circumstances of each arrangement. Specifically, the Company considers the cost to produce the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar parts, the Company’s ongoing pricing strategy and policies (as evident from the price list established and updated by management on a regular basis), the value of any enhancements that have been built into the deliverable and the characteristics of the varying markets in which the deliverable is sold. The Company analyzes the selling prices used in its allocation of arrangement consideration at a minimum on an annual basis. Selling prices will be analyzed on a more frequent basis if a significant change in the Company’s business necessitates a more timely analysis or if the Company experiences significant variances in its selling prices. Each deliverable within the Company’s multiple-deliverable revenue arrangements is accounted for as a separate unit of accounting under the guidance of FASB ASU 2009-13 if both of the following criteria are met: the delivered item or items have value to the customer on a standalone basis; and for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The Company’s revenue arrangements generally do not include a general right of return relative to delivered products. The Company considers a deliverable to have standalone value if the item is sold separately by the Company or another vendor or if the item could be resold by the customer. Deliverables not meeting the criteria for being a separate unit of accounting are combined with a deliverable that does meet that criterion. The appropriate allocation of arrangement consideration and recognition of revenue is then determined for the combined unit of accounting. The Company also engages in long-term contracts for development, production and services activities which it accounts for consistent with FASB ASC 605-35, Accounting for Performance of Construction-Type and Certain Production-Type Contracts, and other relevant revenue recognition accounting literature. The Company considers the nature of these contracts and the types of products and services provided when determining the proper accounting for a particular contract. Generally for fixed-price contracts, other than service-type contracts, revenue is recognized primarily under the percentage of completion method or, for certain short-term contracts, by the completed contract method. Revenue from service-type fixed-price contracts is recognized ratably over the contract period or by other appropriate input or output methods to measure service provided, and contract costs are expensed as incurred. The Company establishes billing terms at the time project deliverables and milestones are agreed. Revenues recognized in excess of the amounts invoiced to clients are classified as unbilled receivables. The Company expects to bill substantially all of the unbilled receivables during fiscal 2018. The risk to the Company on a fixed-price contract is that if estimates to complete the contract change from one period to the next, profit levels will vary from period to period. For time and materials contracts, revenue reflects the number of direct labor hours expended in the performance of a contract multiplied by the contract billing rate, as well as reimbursement of other billable direct costs. For all types of contracts, the Company recognizes anticipated contract losses as soon as they become known and estimable. The Company also considers whether contracts should be combined or segmented in accordance with the applicable criteria under GAAP. The Company combines closely related contracts when all the applicable criteria under GAAP are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single project, which should be combined to reflect an overall profit rate. Similarly, the Company may separate a project, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria under GAAP are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement was negotiated and the performance criteria. The decision to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. The use of contract accounting requires significant judgment relative to estimating total contract revenues and costs, including assumptions relative to the length of time to complete the contract, the nature and complexity of the work to be performed, anticipated increases in wages and prices for subcontractor services and materials, and the availability of subcontractor services and materials. The Company’s estimates are based upon the professional knowledge and experience of its engineers, program managers and other personnel, who review each long-term contract monthly to assess the contract’s schedule, performance, technical matters and estimated cost at completion. Changes in estimates are applied retrospectively and when adjustments in estimated contract costs are identified, such revisions may result in current period adjustments to earnings applicable to performance in prior periods. Contract costs also may include estimated contract recoveries for matters such as contract changes and claims for unanticipated contract costs. The Company records revenue associated with these matters only when the amount of recovery can be estimated reliably and realization is probable. Assumed recoveries for claims included in contracts in process were not material at June 30, 2017 or 2016. The Company defines service revenues as revenue from activities that are not associated with the design, development, production, or delivery of tangible assets, software or specific capabilities sold. Examples of the Company's service revenues include: analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. The Company combines its product and service revenues into a single class as service revenues are less than 10 percent of total revenues. The Company does not provide its customers with rights of product return, other than those related to warranty provisions that permit repair or replacement of defective goods. The Company accrues for anticipated warranty costs upon product shipment. Revenues from product royalties are recognized upon invoice by the Company. Additionally, all revenues are reported net of government assessed taxes (e.g. sales taxes or value-added taxes). CASH AND CASH EQUIVALENTS Cash equivalents, consisting of highly liquid money market funds and U.S. government and U.S. government agency issues with original maturities of 90 days or less at the date of purchase, are carried at fair market value which approximates cost. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures at fair value certain financial assets and liabilities, including cash equivalents, restricted cash and contingent consideration. FASB ASC 820, Fair Value Measurement and Disclosures, specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1—Quoted prices for identical instruments in active markets; Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. CONCENTRATION OF CREDIT RISK Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents with financial institutions of high credit quality. At June 30, 2017 and 2016, the Company had $41,637 and $81,691, respectively, of cash and cash equivalents on deposit or invested with its financial and lending institutions. The Company provides credit to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. At June 30, 2017, five customers accounted for 53% of the Company's accounts receivable, unbilled receivables and costs in excess of billings. At June 30, 2016, five customers accounted for 50% of the Company’s accounts receivable, unbilled receivables and costs in excess of billings. INVENTORY Inventory is stated at the lower of cost (first-in, first-out) or market value, and consists of materials, labor and overhead. On a quarterly basis, the Company evaluates inventory for net realizable value. Once an item is written down, the value becomes the new inventory cost basis. The Company reduces the value of inventory for excess and obsolete inventory, consisting of on-hand and non-cancelable on-order inventory in excess of estimated usage. The excess and obsolete inventory evaluation is based upon assumptions about future demand, product mix and possible alternative uses. SEGMENT INFORMATION The Company uses the management approach for segment disclosure, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of its reportable segments. The Company manages its business on the basis of one reportable segment, as a commercial provider of secure sensor and safety critical mission processing subsystems for critical defense and intelligence applications. GOODWILL AND INTANGIBLE ASSETS Goodwill is the amount by which the cost of the net assets obtained in a business acquisition exceeded the fair values of the net identifiable assets on the date of purchase (see Note G). Goodwill is not amortized in accordance with the requirements of FASB ASC 350, Intangibles-Goodwill and Other (“FASB ASC 350”). Goodwill is assessed for impairment at least annually, on a reporting unit basis, or when events and circumstances occur indicating that the recorded goodwill may be impaired. If the book value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recorded in an amount equal to that excess. Intangible assets result from the Company’s various business acquisitions (see Note H) and certain licensed technologies, and consist of identifiable intangible assets, including completed technology, licensing agreements, customer relationships, trademarks, backlog, and non-compete agreements. Intangible assets are reported at cost, net of accumulated amortization and are either amortized on a straight-line basis over their estimated useful lives of up to twelve years or over the period the economic benefits of the intangible asset are consumed. LONG-LIVED ASSETS Long-lived assets primarily include property and equipment and acquired intangible assets. The Company regularly evaluates its long-lived assets for events and circumstances that indicate a potential impairment in accordance with FASB ASC 360, Property, Plant, and Equipment (“FASB ASC 360”). The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the estimated undiscounted cash flows of the asset as compared to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. Property and equipment are the long-lived, physical assets of the Company acquired for use in the Company’s normal business operations and are not intended for resale by the Company. These assets are recorded at cost. Renewals and betterments that increase the useful lives of the assets are capitalized. Repair and maintenance expenditures that increase the efficiency of the assets are expensed as incurred. Equipment under capital lease is recorded at the present value of the minimum lease payments required during the lease period. Depreciation is based on the estimated useful lives of the assets using the straight-line method (see Note F). As assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Expenditures for major software purchases and software developed for internal use are capitalized and depreciated using the straight-line method over the estimated useful lives of the related assets, which are generally three years. For software developed for internal use, all external direct costs for material and services and certain payroll and related fringe benefit costs are capitalized in accordance with FASB ASC 350. During fiscal 2017, 2016 and 2015, the Company capitalized $508, $0 and $0 of software development costs. DEFERRED REVENUES AND CUSTOMER ADVANCES Deferred revenues consist of deferred product revenue, billings in excess of revenues, and deferred service revenue. Deferred product revenue represents amounts that have been invoiced to customers, but are not yet recognizable as revenue because one or more of the conditions for revenue recognition have not been met. Billings in excess of revenues represents milestone billing arrangements on percentage of completion projects where the billings of the contract exceed recognized revenues. Deferred service revenue primarily represents amounts invoiced to customers for annual maintenance contracts or extended warranty concessions, which are recognized ratably over the term of the arrangements. Customer advances represent deposits received from customers on an order. INCOME TAXES The Company accounts for income taxes under FASB ASC 740, Income Taxes (“FASB ASC 740”). The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates for the year in which the differences are expected to reverse. The Company records a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. FASB ASC 740 requires a two-step approach to recognizing and measuring uncertain tax positions. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. PRODUCT WARRANTY ACCRUAL The Company’s product sales generally include a 12 month standard hardware warranty. At time of product shipment, the Company accrues for the estimated cost to repair or replace potentially defective products. Estimated warranty costs are based upon prior actual warranty costs for substantially similar transactions and any specifically identified warranty requirements. Product warranty accrual is included as part of accrued expenses in the accompanying consolidated balance sheets. The following table presents the changes in the Company's product warranty accrual.
RESEARCH AND DEVELOPMENT COSTS Research and development costs are expensed as incurred. Research and development costs are primarily made up of labor charges and prototype material and development expenses. STOCK-BASED COMPENSATION Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of the awards that will be forfeited. Stock-based compensation expense for the Company’s performance-based restricted stock awards are amortized over the requisite service period using graded vesting. The Company’s other restricted stock awards recognize expense over the requisite service period on a straight-line basis. The Company uses the Black-Scholes valuation model for estimating the fair value on the date of grant of stock options. RETIREMENT OF COMMON STOCK Stock that is repurchased or received in connection with the exercise of stock options or in order to cover tax payment obligations triggered by exercise of stock options or the vesting of restricted stock is retired immediately upon the Company’s repurchase. The Company accounts for this under the cost method and upon retirement the excess amount over par value is charged against additional paid-in capital. NET EARNINGS PER SHARE Basic net earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net earnings per share computation includes the effect of shares which would be issuable upon the exercise of outstanding stock options and the vesting of restricted stock, reduced by the number of shares which are assumed to be purchased by the Company under the treasury stock method. For all periods presented, income from continuing operations is the control number for determining whether securities are dilutive or not. Basic and diluted weighted average shares outstanding were as follows:
Equity instruments to purchase 16, 7 and 453 shares of common stock were not included in the calculation of diluted net earnings per share for the fiscal years ended June 30, 2017, 2016 and 2015, respectively, because the equity instruments were anti-dilutive. ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income includes foreign currency translation adjustments and pension benefit plan adjustments. The components of accumulated other comprehensive income included $(93) and $171 of accumulated foreign currency translation adjustments for the years ended June 30, 2017 and 2016. In addition, pension benefit plan adjustments totaled $220 for the year ended June 30, 2017. There were no material accumulated net unrealized gains on investments at June 30, 2017 and 2016. FOREIGN CURRENCY Local currencies are the functional currency for the Company’s subsidiaries in Switzerland, United Kingdom and Japan. The accounts of foreign subsidiaries are translated using exchange rates in effect at period-end for assets and liabilities and at average exchange rates during the period for results of operations. The related translation adjustments are reported in accumulated other comprehensive income in shareholders’ equity. Gains (losses) resulting from non-U.S. currency transactions are included in other income (expense), net in the Consolidated Statements of Operations and Comprehensive Income and were immaterial for all periods presented. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which 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 ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for the Company on July 1, 2018, and it does not plan to early adopt this ASU. The standard permits the use of either the retrospective or cumulative effect transition method. The Company currently intends to use the retrospective transition method upon adoption of the standard. During fiscal 2017, the Company has made significant investments in its data reporting infrastructure in order to support the reporting requirements of the standard. Throughout fiscal 2018, the Company will continue enhancing its infrastructure to capture each of the specific disclosure requirements detailed in the standard. The Company is continuing to evaluate the future impact that the adoption of the standard will have on its consolidated financial statements. However, the Company does anticipate that the additional disclosure requirements will represent a significant change from current practices. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), an amendment of the FASB Accounting Standards Codification. This ASU requires lessees to recognize a right-of-use asset and lease liability for most lease arrangements. The new standard is effective for the Company on July 1, 2019. The standard mandates a modified retrospective transition method for all entities and early adoption is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, an amendment of the FASB Accounting Standards Codification. This ASU will reduce diversity in practice for classifying cash payments and receipts in the statement of cash flows for a number of common transactions. It will also clarify when identifiable cash flows should be separated versus classified based on their predominant source or use. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is evaluating the effect that ASU 2016-15 will have on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, an amendment of the FASB Accounting Standards Codification. This ASU requires the seller and buyer to recognize at the transaction date the current and deferred income tax consequences of intercompany asset transfers (except transfers of inventory). Under current GAAP, the seller and buyer defer the consolidated tax consequences of an intercompany asset transfer from the period of the transfer to a future period when the asset is transferred out of the consolidated group, or otherwise affects consolidated earnings. This standard will cause volatility in companies’ effective tax rates, particularly for those that transfer intangible assets to foreign subsidiaries. For public entities, the new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2017. An entity may early adopt the standard but only at the beginning of an annual period for which it has not issued or made available for issuance financial statements (interim or annual). The Company is evaluating the effect that ASU 2016-16 will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, an amendment of the FASB Accounting Standards Codification. This ASU eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (“the Step 2 test”) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. For public business entities, the new standard is effective for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The ASU requires prospective adoption and permits early adoption for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect this guidance to have a material impact to its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, an amendment of the FASB Accounting Standards Codification. This ASU requires employers that sponsor defined benefit pension and/or other post-retirement benefit plans to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Employers are required to present the other components of net benefit costs in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component of net periodic pension cost will be eligible for asset capitalization. For public entities, the new standard is effective for annual periods beginning after December 15, 2017, including interim periods within that annual period. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. This ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets.The Company is evaluating the effect that ASU 2017-07 will have on its consolidated financial statements and related disclosures. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Effective July 1, 2016, the Company adopted FASB ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, an amendment of the FASB Accounting Standards Codification. This ASU eliminates the separate presentation of extraordinary items, net of tax and the related earnings per share, but does not affect the requirement to disclose material items that are unusual in nature or infrequently occurring. The ASU aligns GAAP more closely with International Financial Reporting Standards. The Company will continue to evaluate whether items are unusual in nature or infrequent in their occurrence for disclosure purposes and when estimating the annual effective tax rate for interim reporting purposes. Such adoption did not have any impact to the Company's consolidated financial statements. Effective June 30, 2017, the Company adopted FASB ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, an amendment of the FASB Accounting Standards Codification. The ASU has added additional disclosure requirements to the codification. It requires management to assess, at each interim and annual reporting period, whether substantial doubt exists about an entity’s ability to continue as a going concern. Substantial doubt exists if it is probable (the “probable” threshold under GAAP has generally been interpreted to be between 75 and 80 percent) that the entity will be unable to meet its obligations as they become due within one year after the date the financial statements are issued or available to be issued (assessment date). There was not a going concern uncertainty in the current year or in the foreseeable future, and therefore this guidance did not have an impact to the Company's consolidated financial statements. Effective July 1, 2017, the Company adopted FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, an amendment of the FASB Accounting Standards Codification. This ASU changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value for entities that do not measure inventory using the last-in, first-out or retail inventory method. The ASU also eliminates the requirement for these entities to consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. Such adoption did not have any impact to the Company's consolidated financial statements. |
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Acquisitions |
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| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions | Acquisitions DELTA ACQUISITION On April 3, 2017, the Company entered into a membership interest purchase agreement with Delta, pursuant to which, the Company acquired Delta on a cash-free, debt-free basis for a total purchase price of $40,500, subject to net working capital and net debt adjustments. Delta is a designer and manufacturer of high-value RF, microwave and millimeter wave sub-assemblies and components for the military, aerospace and space markets. The acquisition and transaction related expenses were funded with cash on hand. The following table presents the net purchase price and the preliminary fair values of the assets and liabilities of Delta:
The amounts above represent the preliminary fair value estimates as of June 30, 2017 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period. The preliminary identifiable intangible asset estimates include customer relationships of $8,000 with a useful life of 9 years, developed technology of $5,900 with a useful life of 7 years and backlog of $3,100 with a useful life of 2 years. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill. The goodwill of $17,960 largely reflects the potential synergies and expansion of the Company's offerings across product lines and markets complementary to the Company's existing products and markets. The Delta acquisition expands scale and breadth of the Company’s RF, microwave and millimeter wave capabilities, provides highly complementary program portfolio in missiles and munitions, deepens market penetration in core radar, electronic warfare ("EW"), and precision-guided munitions markets, and opens new growth opportunities in space launch, GPS, satellite communications and datalinks. The goodwill from this acquisition was initially reported under the MCE reporting unit. The Company and the shareholders of Delta have agreed to treat the acquisition of Delta as an asset purchase for tax purposes by filing the required election forms under IRC Section 338(h)(10). The Company has estimated the tax value of the intangible assets from this transaction and is amortizing the amount over 15 years for tax purposes. As of June 30, 2017, the Company had $18,029 of goodwill deductible for tax purposes. The revenues and income before income taxes from Delta included in the Company's consolidated results for the fiscal year ended June 30, 2017 were $5,435 and $805, respectively. The Company has not furnished pro forma financial information relating to Delta because such information is not material to the Company's financial results. CES ACQUISITION On November 4, 2016, the Company and the shareholders of CES entered into a Stock Purchase Agreement, pursuant to which, Mercury acquired CES for a total purchase price of $39,123, subject to net working capital and net debt adjustments. The acquisition and associated transaction expenses were funded with cash on hand. Based in Geneva, Switzerland, CES is a provider of embedded solutions for military and aerospace mission-critical computing applications. CES specializes in the design, development and manufacture of safety-certifiable product and subsystems solutions including: primary flight control units, flight test computers, mission computers, command and control processors, graphics and video processing and avionics-certified Ethernet and IO. CES products and solutions are used on platforms such as aerial refueling tankers and multi-mission aircraft, as well as the several types of unmanned platforms. The following table presents the net purchase price and the preliminary fair values of the assets and liabilities of CES:
The amounts above represent the preliminary fair value estimates as of June 30, 2017 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period. The preliminary identifiable intangible asset estimates include customer relationships of $9,060 with a useful life of 9 years and developed technology of $5,662 with a useful life of 7 years. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill. The goodwill of $20,346 largely reflects the potential synergies and expansion of the Company's offerings across product lines and markets complementary to the Company's existing products and markets. CES provides the Company with capabilities in mission computing, safety-critical avionics and platform management that are in demand from its customers. These new capabilities will also substantially expand Mercury’s addressable market into commercial aerospace, defense platform management, command, control, communications, computers, and intelligence ("C4I") and mission computing markets that are aligned to Mercury’s existing market focus. The acquisition is directly aligned with the Company's strategy of expanding its capabilities, services and offerings along the sensor processing chain. The goodwill from this acquisition was initially reported under the MCE reporting unit. The revenues and income before income taxes from CES included in the Company's consolidated results for the fiscal year ended June 30, 2017 were $17,008 and $1,196, respectively. The Company has not furnished pro forma financial information relating to CES because such information is not material to the Company's financial results. CARVE-OUT BUSINESS ACQUISITION On March 23, 2016, the Company and Microsemi entered into a Stock Purchase Agreement, pursuant to which, Microsemi agreed to sell all the membership interests in the Carve-Out Business to the Company for $300,000 in cash on a cash-free, debt-free basis, subject to a working capital adjustment. On May 2, 2016, the transaction closed and the Company acquired the Carve-Out Business. Pursuant to the terms of the Stock Purchase Agreement, all outstanding Carve-Out Business employee stock awards that were unvested at the closing were replaced by Mercury. The replacement stock awards granted were determined based on a conversion ratio provided in the Stock Purchase Agreement. Mercury funded the acquisition with a combination of a new $200,000 bank term loan facility (see Note L) and cash on hand, which included net proceeds of approximately $92,788 raised from an underwritten common stock public offering (see Note N). The following table presents the net purchase price and the fair values of the assets and liabilities of the Carve-Out Business:
On May 2, 2017, the measurement period for the Carve-Out Business expired. The identifiable intangible assets include customer relationships of $70,900, completed technology of $29,700 and backlog of $2,200. The goodwill of $168,756 largely reflects the potential synergies and expansion of the Company's offerings across product lines and markets complementary to the Company's existing products and markets. The Carve-Out Business provides the Company with additional capability and expertise related to embedded security custom microelectronics, and microwave and radio frequency technology. The acquisition is directly aligned with the Company's strategy of expanding its capabilities, services and offerings along the sensor processing chain. The goodwill from this acquisition is reported under the AMS and MDS reporting units. As of June 30, 2016, the Company had $26,494 of goodwill deductible for tax purposes. |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at June 30, 2017:
The carrying values of cash and cash equivalents, including money market funds, restricted cash, accounts receivable and payable, and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company’s certificates of deposit are determined through quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable. The cost-method investment, which is presented within other non-current assets in the accompanying consolidated balance sheets, does not have a readily determinable fair value, as such the Company recorded the investment at cost and will continue to evaluate the asset for impairment on a quarterly basis. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at June 30, 2016:
The Company determined the face value of its long-term debt approximated fair value at June 30, 2016 due to the recent issuance and stability of interest rates during that period. |
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Inventory |
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| Inventory | Inventory Inventory was comprised of the following:
The $22,787 increase in inventory was primarily due to the inclusion of inventory from CES and Delta. There are no amounts in inventory relating to contracts having production cycles longer than one year. |
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Property and Equipment |
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| Property and Equipment | Property and Equipment Property and equipment consisted of the following:
The $23,306 increase in property and equipment was primarily due to the build-out of the Company's new corporate headquarters, integration activities associated with the Carve-Out Business, and the acquisition of CES and Delta. In fiscal 2017 and 2016, the Company retired $14,310 and $32, respectively, of computer equipment and software, furniture, and fixtures, leasehold improvements, and machinery and equipment that were no longer in use by the Company. Depreciation expense related to property and equipment for the fiscal years ended June 30, 2017, 2016 and 2015 was $12,589, $6,900 and $6,332, respectively. On April 20, 2007, the Company entered into a sales agreement and a lease agreement in connection with a sale-leaseback of the Company’s former headquarters in Chelmsford, Massachusetts. Pursuant to the agreements, the Company sold all land, land improvements, buildings and building improvements related to the facilities and leased back those assets. The term of the lease was ten years and included two five year options to renew, which the Company did not exercise. Under the provisions of sale-leaseback accounting, the transaction was considered a normal leaseback; thus the realized gain of $11,569 was deferred and was amortized to other income on a straight-line basis over the initial lease term. The unamortized deferred gain of $929 at June 30, 2016 was included in accrued expenses and in the accompanying consolidated balance sheets and has been fully amortized as of June 30, 2017. |
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Goodwill |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | Goodwill Throughout fiscal 2017, the Company undertook a series of integration activities related to the Carve-Out Business. These integration activities included system conversions, the build-out of our U.S. Manufacturing Organization in Phoenix, insourcing of embedded sensor products manufacturing previously outsourced, retirement of legacy internal controls related to the Carve-Out Business, and integration of the acquired sites into the legacy control environment. Significant work was done through the fourth quarter of fiscal 2017 to complete these integration activities. The conclusion of these integration efforts resulted in a reorganization of the Company's reporting unit structure from MCE, MDS and the Carve-Out Business to: Sensor and Mission Processing (“SMP”), Advanced Microelectronic Solutions (“AMS”) and Mercury Defense Systems (“MDS”). This change had no effect on the Company’s operating segment, as the Chief Operating Decision Maker (“CODM”) continues to evaluate and manage the Company on the basis of one reportable segment. The following table summarizes the changes in goodwill at the Company's three reporting units for the year ended June 30, 2016, prior to the reorganization of the Company's reporting unit structure in fiscal 2017:
The following table summarizes the changes in goodwill at the Company's three reporting units from June 30, 2016 through May 31, 2017, immediately before the reorganization of the Company's reporting unit structure:
In accordance with FASB ASC 350, Intangibles-Goodwill and Other (“ASC 350”), the Company determines its reporting units based upon whether discrete financial information is available, if management regularly reviews the operating results of the component, the nature of the products offered to customers and the market characteristics of each reporting unit. A reporting unit is considered to be an operating segment or one level below an operating segment also known as a component. The Company reviewed its analysis of its internally reorganized business in order to determine its reporting units in accordance with ASC 350. Component level financial information is now reviewed by management at SMP, AMS and MDS. Accordingly, these were determined to be the Company’s new reporting units. In fiscal 2017, after its reorganization, the Company reassigned goodwill to the businesses in the affected reporting units based on their relative fair values in accordance with ASC 350. There were no changes in the total carrying amount of goodwill for the one month ended June 30, 2017 after reallocation. The carrying amounts of goodwill by reporting unit at June 30, 2017 are $116,003, $217,956, and $46,887 for SMP, AMS and MDS, respectively. The change in reporting units qualified as a triggering event and required goodwill to be tested for impairment. As required by ASC 350, the Company analyzed goodwill for impairment immediately prior to and immediately subsequent to the reorganization. As a result of these analyses, it was determined that goodwill was not impaired either prior to or subsequent to the reorganization. |
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Intangible Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets | Intangible Assets Intangible assets consisted of the following:
Estimated future amortization expense for intangible assets remaining at June 30, 2017 is as follows:
The following table summarizes the preliminary estimated fair value of acquired intangible assets arising as a result of the Delta acquisition. These assets are included in the Company's gross and net carrying amounts as of June 30, 2017.
The following table summarizes the preliminary estimated fair value of acquired intangible assets arising as a result of the CES acquisition. These assets are included in the Company's gross and net carrying amounts as of June 30, 2017.
The following table summarizes the fair value of acquired intangible assets arising as a result of the Carve-Out Business acquisition. These assets are included in the Company's gross and net carrying amounts as of June 30, 2017.
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Restructuring Plan |
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Plan | Restructuring During the fourth quarter of fiscal 2017, the Company initiated a plan to close its Manteca, California facility as a result of the acquisition of Delta. The Company incurred $910 of severance and related expenses in conjunction with the elimination of 33 positions primarily in operations related to the planned closure of the facility. Additionally, the Company incurred $1,042 in restructuring expenses related to other various restructuring events during fiscal 2017. During fiscal 2016, the Company incurred restructuring and other charges of $1,240, primarily related to executive severance and facility consolidation. During fiscal 2015, the Company incurred restructuring and other charges of $3,175 as the Company completed its acquisition integration plan primarily associated with the Micronetics, Inc. acquisition. Additionally, during the fourth quarter of fiscal 2015, the Company eliminated 16 positions, primarily in operations. All of the restructuring and other charges are classified as operating expenses in the consolidated statements of operations and any remaining severance obligations are expected to be paid within the next twelve months. The remaining restructuring liability is classified as accrued expenses in the consolidated balance sheets. The following table presents the detail of expenses for the Company’s restructuring plans:
(*) Reversals result from the unused outplacement services and operating costs. |
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Income Taxes |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Income Taxes The components of income from continuing operations before income taxes and income tax expense were as follows:
The following is the reconciliation between the statutory federal income tax rate and the Company’s effective income tax rate for continuing operations:
The components of the Company’s net deferred tax liabilities for continuing operations were as follows:
At June 30, 2017, the Company evaluated the need for a valuation allowance on deferred tax assets. In assessing whether the deferred tax assets are realizable, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the Company's past operating results, its forecast of future earnings, future taxable income, and tax planning strategies. The Company continues to conclude that it is more likely than not that most domestic deferred tax assets would be realizable based on recent financial performance, projected future taxable income and the reversal of existing deferred tax liabilities. The Company continues to record a full valuation allowance on capital loss carryforwards and certain state research and development credits as of June 30, 2017 as management continues to believe that it is not more likely than not that these deferred tax assets would be realized. Any future reversals of the valuation allowance will impact income tax expense. The Company had federal research and development credit carryforwards of $406, which will expire in 2033. The Company had state research and development credit carryforwards of $13,008, which will expire from 2017 through 2032. Upon consideration of changing business conditions and cash position in its foreign subsidiaries, management has determined that it does not need to indefinitely reinvest the earnings of certain foreign subsidiaries. Therefore, the Company has accrued deferred taxes in association with $794 in undistributed foreign earnings and profits. The Company files income tax returns in all jurisdictions in which it operates. The Company has established reserves to provide for additional income taxes that management believes will more likely than not be due in future years as these previously filed tax returns are audited. These reserves have been established based upon management’s assessment as to the potential exposures. All tax reserves are analyzed quarterly and adjustments are made as events occur and warrant modification. The changes in the Company’s reserves for unrecognized income tax benefits are summarized as follows:
The $804 of unrecognized tax benefits as of June 30, 2017, if released, would reduce income tax expense. The Company’s major tax jurisdiction is the U.S. and the open tax years are fiscal 2014 through 2017. The Internal Revenue Service (the “IRS”) accepted the final examination report during the fourth quarter of fiscal year 2017 in connection with the IRS’s examination of the Company’s consolidated federal income tax returns for the fiscal year 2013, which resolved various tax matters for the Company. As a result of the acceptance, the Company recorded a $273 income tax benefit attributable to the reversal of tax reserves and $793 for amounts previously reserved that were settled through the examination process. The Company received a refund of $1,598 during July 2017 in connection with the conclusion of the IRS examination. The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes. As of June 30, 2017 and 2016, the total amount of gross interest and penalties accrued was $54 and $258, respectively. In connection with tax matters, the Company recognized interest and penalty expense in fiscal 2017, 2016 and 2015 of $30, $204 and $26, respectively. |
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Commitments and Contingencies |
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| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies | Commitments and Contingencies LEGAL CLAIMS The Company is subject to litigation, claims, investigations and audits arising from time to time in the ordinary course of business. Although legal proceedings are inherently unpredictable, the Company believes that it has valid defenses with respect to any matters currently pending against the Company and intends to defend itself vigorously. The outcome of these matters, individually and in the aggregate, is not expected to have a material impact on the Company's cash flows, results of operations, or financial position. INDEMNIFICATION OBLIGATIONS The Company's standard product sales and license agreements entered into in the ordinary course of business typically contain an indemnification provision pursuant to which the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with any patent, copyright or other intellectual property infringement claim by any third party with respect to the Company's products. Such provisions generally survive termination or expiration of the agreements. The potential amount of future payments the Company could be required to make under these indemnification provisions is, in some instances, unlimited. PURCHASE COMMITMENTS As of June 30, 2017, the Company has entered into non-cancelable purchase commitments for certain inventory components and services used in its normal operations. The purchase commitments covered by these agreements are for less than one year and aggregate to $59,173. LEASE COMMITMENTS The Company leases certain facilities, machinery and equipment under various cancelable and non-cancelable operating leases that expire at various dates through fiscal 2029. The leases contain various renewal options. Rental charges are subject to escalation for increases in certain operating costs of the lessor. For tenant improvement allowances and rent holidays, the Company records a deferred rent liability on the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rent expense on the consolidated statements of operations. Rental expense during the fiscal years ended June 30, 2017, 2016, and 2015 was $7,774, $4,015 and $3,777, respectively. Minimum lease payments under the Company’s non-cancelable operating leases are as follows:
OTHER As part of the Company's strategy for growth, the Company continues to explore acquisitions or strategic alliances. The associated acquisition costs incurred in the form of professional fees and services may be material to the future periods in which they occur, regardless of whether the acquisition is ultimately completed. The Company may elect from time to time to purchase and subsequently retire shares of common stock in order to settle an individual employees’ tax liability associated with vesting of a restricted stock award or exercise of stock options. These transactions would be treated as a use of cash in financing activities in the Company's statement of cash flows. |
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Debt |
12 Months Ended |
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Jun. 30, 2017 | |
| Debt Disclosure [Abstract] | |
| Debt | Debt Revolving Credit Facilities On May 2, 2016, the Company and certain of its subsidiaries, as guarantors, entered into a Credit Agreement (the “Credit Agreement”) with a syndicate of commercial banks and Bank of America, N.A acting as the administrative agent. The Credit Agreement provided for a $200,000 term loan facility (“the Term Loan”) and a $100,000 revolving credit facility (“Revolver”). In connection with the issuance of Term Loan, the Company incurred $8,026 of debt issuance costs, which were recorded as a direct reduction to long-term debt on the face of the consolidated balance sheets. The debt issuance costs were amortized to non-cash interest expense using the effective interest method over the term of the Term Loan. On June 27, 2017, the Company amended the Credit Agreement to increase and extend the borrowing capacity of the Revolver to $400,000 expiring in June 2022 (“the Amended Credit Agreement”). In connection with the amendment, the Company also repaid the remaining principal and accrued and unpaid interest outstanding on the Term Loan using cash on hand. The Company evaluated the amended Credit Agreement under FASB ASC 470, Debt, and determined that the amendment represented a modification of the Credit Agreement. Accordingly, the remaining $6,522 in unamortized debt issuance costs at June 27, 2017, in addition to $591 in new fees paid to the syndicate of lenders in connection with the amendment, will be amortized to non-cash interest expense on a straight line basis over the new term of the Revolver. The Revolver remained undrawn at June 30, 2017, other than $5,897 of outstanding letters of credit. Maturity The Revolver has a five year maturity. Interest Rates and Fees Borrowings under the Revolver bear interest, at the Company’s option, at floating rates tied to LIBOR or the prime rate plus an applicable percentage. The applicable percentage has initially been set at LIBOR plus 1.375% and in future fiscal quarters will be established pursuant to a pricing grid based on the Company's total net leverage ratio. In addition to interest on the aggregate outstanding principal amounts of any borrowings, the Company will also pay a quarterly commitment fee on the unutilized commitments under the Revolver, which fee has initially been set at 0.25% per annum and in future fiscal quarters will be established pursuant to a pricing grid based on the Company's total net leverage ratio. The Company will also pay customary letter of credit and agency fees. Covenants and Events of Default The Amended Credit Agreement provides for customary negative covenants. The Amended Credit Agreement also requires the Company to comply with certain financial covenants, including a quarterly minimum consolidated cash interest charge ratio test and a quarterly maximum consolidated total net leverage ratio test. The Amended Credit Agreement also provides for customary representations and warranties, affirmative covenants and events of default. If an event of default occurs, the lenders under the Amended Credit Agreement will be entitled to take various actions, including the termination of unutilized commitments, the acceleration of amounts outstanding under the Amended Credit Agreement and all actions permitted to be taken by a secured creditor. As of June 30, 2017, the Company was in compliance with all covenants and conditions under the Amended Credit Agreement. Guarantees and Security The Company's obligations under the Amended Credit Agreement are guaranteed by certain of its material domestic wholly-owned restricted subsidiaries (the “Guarantors”). The obligations of both the Company and the Guarantors are secured by a perfected security interest in substantially all of the assets of the Company and the Guarantors, in each case, now owned or later acquired, including a pledge of all of the capital stock of substantially all of its domestic wholly-owned restricted subsidiaries and 65% of the capital stock of certain of its foreign restricted subsidiaries, subject in each case to the exclusion of certain assets and additional exceptions. |
Employee Benefit Plans |
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| Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefit Plans | Employee Benefit Plans Pension Plan With the acquisition of CES on November 4, 2016, the Company assumed a pension plan (the "Plan") for its Swiss employees, which is administered by an independent pension fund. The Plan is mandated by Swiss law and meets the criteria for a defined benefit plan under ASC 715, Compensation—Retirement Benefits (“ASC 715”), since participants of the Plan are entitled to a defined rate of return on contributions made. The independent pension fund is a multi-employer plan with unrestricted joint liability for all participating companies for which the Plan’s overfunding or underfunding is allocated to each participating company based on an allocation key determined by the Plan. The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan. On January 1, 2017, the Company changed pension providers. The Company's results contain the effects of the change in pension provider as prior service costs. These prior service costs will be amortized from other comprehensive income to net periodic benefit costs over approximately 10 years. At June 30, 2017, the accumulated benefit obligation of the Plan equals the fair value of the Plan's assets. The Plan's funded status at June 30, 2017 was a net liability of $6,601, which is recorded in other non-current liabilities on the consolidated balance sheets. The Company recorded a net gain of $220 in accumulated other comprehensive income during the year ended June 30, 2017. The Company's total expected employer contributions to the Plan during fiscal 2018 are $539. The following table reflects the total pension benefits expected to be paid from the Plan, which is funded from contributions by participants and the Company.
The following table outlines the components of net periodic benefit cost of the Plan for the year ended June 30, 2017:
The following table reflects the related actuarial assumptions used to determine net periodic benefit cost of the Plan for the year ended June 30, 2017:
The calculation of the projected benefit obligation ("PBO") utilized BVG 2015 Generational data for assumptions related to the mortality rates, disability rates, turnover rates, and early retirement ages. Assumptions used to determine the year-end pension benefit obligation is the discount rate of 0.70% and rate of compensation increases of 1.00%. The PBO represents the present value of Plan benefits earned through the end of the year, with an allowance for future salary and pension increases as well as turnover rates. The following table presents the change in projected benefit obligation for the period presented:
The following table presents the change in Plan assets for the period presented:
The following table presents the Company's reconciliation of funded status for the period presented:
The Company did not recognize any (gain) loss from other comprehensive income ("OCI") in its consolidated results of operations during the year ended June 30, 2017. The Company does not expect to recognize any (gain) loss from OCI for the year ended June 30, 2018. The fair value of Plan assets were $10,925 at June 30, 2017. The Plan is denominated in a foreign currency, the Swiss Franc, which can have an impact on the fair value of Plan assets. The Plan was not subject to material fluctuations during year ended June 30, 2017. The Plan’s assets are administered by an independent pension fund foundation (the “foundation”). As of June 30, 2017, the foundation has invested the assets of the Plan in various investments vehicles, including cash, real estate, equity securities, and bonds. The investments are measured at fair value using a mix of Level 1, Level 2 and Level 3 inputs. 401(k) Plan The Company maintains a qualified 401(k) plan (the “401(k) Plan”) for its U.S. employees. During fiscal 2017, 2016 and 2015, the Company matched employee contributions up to 3% of eligible compensation. The Company may also make optional contributions to the plan for any plan year at its discretion. Expense recognized by the Company for matching contributions related to the 401(k) plan was $3,206, $1,874 and $1,934 during the fiscal years ended June 30, 2017, 2016, and 2015, respectively. |
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Shareholders' Equity |
12 Months Ended |
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Jun. 30, 2017 | |
| Equity [Abstract] | |
| Shareholders' Equity | Shareholders’ Equity PREFERRED STOCK The Company is authorized to issue 1,000 shares of preferred stock with a par value of $0.01 per share. FOLLOW-ON EQUITY OFFERINGS On January 26, 2017, the Company announced the commencement of an underwritten public offering of its common stock, par value $0.01 per share. On February 1, 2017, the Company closed the offering, including the full over-allotment allocation, selling an aggregate of 6,900 shares of common stock at a price to the public of $33.00 for total net proceeds of $215,725. On April 4, 2016, the Company announced the commencement of an underwritten public offering of its common stock, par value $0.01 per share. On April 13, 2016, the Company closed the offering, including the full over-allotment allocation, selling an aggregate of 5,175 shares of common stock at a price to the public of $19.25 for total net proceeds of $92,788. |
Stock-Based Compensation |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | Stock-Based Compensation STOCK OPTION PLANS The number of shares authorized for issuance under the Company’s 2005 Stock Incentive Plan, as amended and restated (the “2005 Plan”), is 15,252 shares at June 30, 2017. As reflected in the Company's registration statement on Form S-8 filed on February 4, 2016, the Company's number of shares authorized for issuance under the 2005 Plan increased by 2 shares as a result of forfeitures, cancellations and/or terminations from the Company's 1997 Stock Option Plan. The 2005 Plan provides for the grant of non-qualified and incentive stock options, restricted stock, stock appreciation rights and deferred stock awards to employees and non-employees. All stock options are granted with an exercise price of not less than 100% of the fair value of the Company’s common stock at the date of grant and the options generally have a term of seven years. There were 2,559 shares available for future grant under the 2005 Plan at June 30, 2017. As part of the Company's ongoing annual equity grant program for employees, the Company grants performance-based restricted stock awards to certain executives pursuant to the 2005 Plan. Performance awards vest based on the requisite service period subject to the achievement of specific financial performance targets. Based on the performance targets, some of these awards require graded vesting which results in more rapid expense recognition compared to traditional time-based vesting over the same vesting period. The Company monitors the probability of achieving the performance targets on a quarterly basis and may adjust periodic stock compensation expense accordingly. The performance targets include: (i) the achievement of internal performance targets only, and (ii) the achievement of internal performance targets in relation to a peer group of companies. EMPLOYEE STOCK PURCHASE PLAN The number of shares authorized for issuance under the Company’s 1997 Employee Stock Purchase Plan, as amended and restated (“ESPP”), is 1,800 shares. Under the ESPP, rights are granted to purchase shares of common stock at 85% of the lesser of the market value of such shares at either the beginning or the end of each six-month offering period. The ESPP permits employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation as defined in the ESPP. The number of shares issued under the ESPP during fiscal years 2017, 2016, and 2015 was 96, 88 and 79, respectively. Shares available for future purchase under the ESPP totaled 302 at June 30, 2017. STOCK OPTION AND AWARD ACTIVITY The following table summarizes activity of the Company’s stock option plans since June 30, 2015:
The intrinsic value of the options exercised during fiscal years 2017, 2016, and 2015 was $3,762, $1,976 and $3,373, respectively. Non-vested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. As of June 30, 2017 and 2016, there was $0 of total unrecognized compensation cost related to non-vested options granted under the Company’s stock plans. There were no stock options granted during fiscal years 2017, 2016 or 2015. The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2015:
The total fair value of restricted stock awards vested during fiscal year 2017, 2016, and 2015 was $19,402, $12,185 and $9,078, respectively. Non-vested restricted stock awards are subject to the risk of forfeiture until the fulfillment of specified conditions. As of June 30, 2017, there was $12,160 of total unrecognized compensation cost related to non-vested restricted stock awards granted under the Company’s stock plans that is expected to be recognized over a weighted-average period of 1.5 years from June 30, 2017. As of June 30, 2016, there was $10,938 of total unrecognized compensation cost related to non-vested restricted stock awards granted under the Company’s stock plans that is expected to be recognized over a weighted-average period of 1.6 years from June 30, 2016. STOCK-BASED COMPENSATION EXPENSE The Company recognizes expense for its share-based payment plans in the consolidated statements of operations for the fiscal years 2017, 2016, and 2015 in accordance with FASB ASC 718. The Company had $194 and $93 of capitalized stock-based compensation expense on the Consolidated Balance Sheet as of June 30, 2017 and 2016. In the prior years, the Company did not capitalize any such costs on the consolidated balance sheets, as such costs that qualified for capitalization were not material. Under the fair value recognition provisions of FASB ASC 718, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the service period. The following table presents share-based compensation expenses from continuing operations included in the Company’s consolidated statement of operations:
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Operating Segment, Geographic Information and Significant Customers |
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| Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Segment, Geographic Information and Significant Customers | Operating Segment, Geographic Information and Significant Customers Operating segments are defined as components of an enterprise evaluated regularly by the Company's chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company is comprised of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with FASB ASC 280, Segment Reporting. The geographic distribution of the Company’s revenues as determined by order origination based on the country in which the Company's legal subsidiary is domiciled is summarized as follows:
(1) Identifiable long-lived assets exclude goodwill and intangible assets. In recent years, the Company completed a series of acquisitions that changed its technological capabilities, applications and end markets. As these acquisitions and changes occurred, the Company increased the proportion of its revenue derived from the sale of components in different technological areas, and also increased the amount of revenue associated with combining technologies into more complex and diverse products including modules, sub-assemblies and integrated subsystems. The following tables present revenue consistent with the Company's strategy of expanding its technological capabilities and program content. The following table presents the Company's net revenue by end market for the periods presented:
(1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined. (2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S. The following table presents the Company's net revenue by end application for the periods presented:
(1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects. (2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum. (3) Other products include all end markets other than Radar and Electronic Warfare. Examples include but are not limited to various commercial and other end-use applications and technologies, as well as various component and other sales where the end use is not specified. The following table below the Company's net revenue by product grouping for the periods presented:
(1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include but are not limited to power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices. (2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include but are not limited to embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers. (3) Integrated Subsystems include multiple modules and/or sub-assemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company. Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows:
While the Company typically has customers from which it derives 10% or more of its revenue, the sales to each of these customers are spread across multiple programs and platforms. Programs comprising 10% or more of the Company’s revenues for the periods shown below are as follows:
* Indicates that the amount is less than 10% of the Company's revenues for the respective period. No programs were in excess of 10% of the Company's revenues for fiscal 2017. |
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Discontinued Operations |
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| Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations | Discontinued Operations In fiscal 2014, the Company's MIS business met the "held for sale" criteria in accordance with FASB ASC 205. As the Company did not anticipate continuing involvement in the operations of MIS after its divestiture, the MIS operating results have been reported as a discontinued operation for all periods presented. On January 23, 2015, the Company completed the sale of MIS for approximately $1,600. The sale resulted in net proceeds of $885 and a loss on disposal of $892, which is reflected within discontinued operations of the Company's accompanying consolidated financial statements. The Company does not have continuing involvement in the operations of MIS after its divestiture. The amounts reported in loss from discontinued operations, net of income taxes were as follows:
There were no balances for the assets and liabilities of the discontinued operations at June 30, 2017 and 2016. The depreciation, amortization, capital expenditures and significant operating and investing non-cash items of the discontinued operations were as follows:
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Subsequent Events |
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| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events The Company has evaluated subsequent events from the date of the consolidated balance sheet through the date the consolidated financial statements were issued. |
Supplementary Information (Unaudited) |
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| Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplementary Information (Unaudited) | SUPPLEMENTARY INFORMATION (UNAUDITED) The following sets forth certain unaudited consolidated quarterly statements of operations data for each of the Company’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of the Company and the notes thereto.
(1) During 2017, the Company included costs related to the sustainment of its product portfolio as research and development expense, which was previously included as costs of revenues on the Consolidated Statements of Operations and Comprehensive Income. For comparative purposes, for the fiscal year ended June 30, 2016, the Company has reclassified $2,845, from costs of revenues to research and development expense. The quarterly amounts reclassified were $773, $1,161 and $911 for the 1st quarter, 2nd quarter and 3rd quarter, respectively. (2) Upon adoption of FASB ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, the Company recognized $1,100 of excess tax benefits in the fourth quarter as a benefit to income taxes in its consolidated statements of operations and comprehensive income (loss) for the year ended June 30, 2016. The tax benefit (provision) impacts were restated above to show the effect of this adoption as if it had occurred at the beginning of fiscal 2016. The tax benefit (provision) impacts were $896, $247, $(169), and $126 for the 1st quarter, 2nd quarter, 3rd quarter and 4th quarter, respectively. Income from continuing operations, net income, and net income amounts per share were also updated as a result of the adjustment to the income tax provision. Due to the effects of rounding, the sum of the four quarters does not equal the annual total. |
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Summary of Significant Accounting Policies (Policies) |
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| Accounting Policies [Abstract] | |||||||||||||
| Principles Of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. |
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| Business Combinations | BUSINESS COMBINATIONS The Company utilizes the acquisition method of accounting under FASB ASC 805, Business Combinations, (“FASB ASC 805”), for all transactions and events which it obtains control over one or more other businesses, to recognize the fair value of all assets and liabilities acquired, even if less than one hundred percent ownership is acquired, and in establishing the acquisition date fair value as measurement date for all assets and liabilities assumed. The Company also utilizes FASB ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations. Other estimates include:
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business acquisition date, the estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the purchase price allocation period, which is generally one year from the business acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. For changes in the valuation of intangible assets between the preliminary and final purchase price allocation, the related amortization is adjusted in the period it occurs. Subsequent to the purchase price allocation period, any adjustment to assets acquired or liabilities assumed is included in operating results in the period in which the adjustment is determined. |
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| Use Of Estimates | USE OF ESTIMATES The preparation of financial statements in conformity with Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
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| Revenue Recognition | REVENUE RECOGNITION The Company relies upon FASB ASC 605, Revenue Recognition, to account for its revenue transactions. Revenue is recognized upon shipment provided that title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sales price is fixed or determinable, collection of the related receivable is reasonably assured, and customer acceptance criteria, if any, have been successfully demonstrated. Out-of-pocket expenses that are reimbursable by the customer are included in revenue and cost of revenue. Certain contracts with customers require the Company to perform tests of its products prior to shipment to ensure their performance complies with the Company’s published product specifications and, on occasion, with additional customer-requested specifications. In these cases, the Company conducts such tests and, if they are completed successfully, includes a written confirmation with each order shipped. As a result, at the time of each product shipment, the Company believes that no further customer testing requirements exist and that there is no uncertainty of acceptance by its customer. The Company uses FASB Accounting Standards Update (“ASU”) No. 2009-13 (“FASB ASU 2009-13”), Multiple-Deliverable Revenue Arrangements. FASB ASU 2009-13 establishes a selling price hierarchy for determining the selling price of a deliverable, which includes: (1) vendor-specific objective evidence (“VSOE”) if available; (2) third-party evidence (“TPE”) if VSOE is not available; and (3) best estimated selling price (“BESP”), if neither VSOE nor TPE is available. Additionally, FASB ASU 2009-13 expands the disclosure requirements related to a vendor’s multiple-deliverable revenue arrangements. The Company enters into multiple-deliverable arrangements that may include a combination of hardware components, related integration or other services. These arrangements generally do not include any performance-, cancellation-, termination- or refund-type provisions. In accordance with the provisions of FASB ASU 2009-13, the Company allocates arrangement consideration to each deliverable in an arrangement based on its relative selling price. The Company generally expects that it will not be able to establish VSOE or TPE due to limited single element transactions and the nature of the markets in which the Company competes, and, as such, the Company typically determines its relative selling price using BESP. The Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact if the product or service were sold by the Company on a standalone basis. The Company’s determination of BESP involves the consideration of several factors based on the specific facts and circumstances of each arrangement. Specifically, the Company considers the cost to produce the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar parts, the Company’s ongoing pricing strategy and policies (as evident from the price list established and updated by management on a regular basis), the value of any enhancements that have been built into the deliverable and the characteristics of the varying markets in which the deliverable is sold. The Company analyzes the selling prices used in its allocation of arrangement consideration at a minimum on an annual basis. Selling prices will be analyzed on a more frequent basis if a significant change in the Company’s business necessitates a more timely analysis or if the Company experiences significant variances in its selling prices. Each deliverable within the Company’s multiple-deliverable revenue arrangements is accounted for as a separate unit of accounting under the guidance of FASB ASU 2009-13 if both of the following criteria are met: the delivered item or items have value to the customer on a standalone basis; and for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The Company’s revenue arrangements generally do not include a general right of return relative to delivered products. The Company considers a deliverable to have standalone value if the item is sold separately by the Company or another vendor or if the item could be resold by the customer. Deliverables not meeting the criteria for being a separate unit of accounting are combined with a deliverable that does meet that criterion. The appropriate allocation of arrangement consideration and recognition of revenue is then determined for the combined unit of accounting. The Company also engages in long-term contracts for development, production and services activities which it accounts for consistent with FASB ASC 605-35, Accounting for Performance of Construction-Type and Certain Production-Type Contracts, and other relevant revenue recognition accounting literature. The Company considers the nature of these contracts and the types of products and services provided when determining the proper accounting for a particular contract. Generally for fixed-price contracts, other than service-type contracts, revenue is recognized primarily under the percentage of completion method or, for certain short-term contracts, by the completed contract method. Revenue from service-type fixed-price contracts is recognized ratably over the contract period or by other appropriate input or output methods to measure service provided, and contract costs are expensed as incurred. The Company establishes billing terms at the time project deliverables and milestones are agreed. Revenues recognized in excess of the amounts invoiced to clients are classified as unbilled receivables. The Company expects to bill substantially all of the unbilled receivables during fiscal 2018. The risk to the Company on a fixed-price contract is that if estimates to complete the contract change from one period to the next, profit levels will vary from period to period. For time and materials contracts, revenue reflects the number of direct labor hours expended in the performance of a contract multiplied by the contract billing rate, as well as reimbursement of other billable direct costs. For all types of contracts, the Company recognizes anticipated contract losses as soon as they become known and estimable. The Company also considers whether contracts should be combined or segmented in accordance with the applicable criteria under GAAP. The Company combines closely related contracts when all the applicable criteria under GAAP are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single project, which should be combined to reflect an overall profit rate. Similarly, the Company may separate a project, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria under GAAP are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement was negotiated and the performance criteria. The decision to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. The use of contract accounting requires significant judgment relative to estimating total contract revenues and costs, including assumptions relative to the length of time to complete the contract, the nature and complexity of the work to be performed, anticipated increases in wages and prices for subcontractor services and materials, and the availability of subcontractor services and materials. The Company’s estimates are based upon the professional knowledge and experience of its engineers, program managers and other personnel, who review each long-term contract monthly to assess the contract’s schedule, performance, technical matters and estimated cost at completion. Changes in estimates are applied retrospectively and when adjustments in estimated contract costs are identified, such revisions may result in current period adjustments to earnings applicable to performance in prior periods. Contract costs also may include estimated contract recoveries for matters such as contract changes and claims for unanticipated contract costs. The Company records revenue associated with these matters only when the amount of recovery can be estimated reliably and realization is probable. Assumed recoveries for claims included in contracts in process were not material at June 30, 2017 or 2016. The Company defines service revenues as revenue from activities that are not associated with the design, development, production, or delivery of tangible assets, software or specific capabilities sold. Examples of the Company's service revenues include: analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. The Company combines its product and service revenues into a single class as service revenues are less than 10 percent of total revenues. The Company does not provide its customers with rights of product return, other than those related to warranty provisions that permit repair or replacement of defective goods. The Company accrues for anticipated warranty costs upon product shipment. Revenues from product royalties are recognized upon invoice by the Company. Additionally, all revenues are reported net of government assessed taxes (e.g. sales taxes or value-added taxes). |
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| Cash And Cash Equivalents | CASH AND CASH EQUIVALENTS Cash equivalents, consisting of highly liquid money market funds and U.S. government and U.S. government agency issues with original maturities of 90 days or less at the date of purchase, are carried at fair market value which approximates cost. |
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| Fair Value Measurement, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures at fair value certain financial assets and liabilities, including cash equivalents, restricted cash and contingent consideration. FASB ASC 820, Fair Value Measurement and Disclosures, specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1—Quoted prices for identical instruments in active markets; Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
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| Concentration Of Credit Risk | CONCENTRATION OF CREDIT RISK Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents with financial institutions of high credit quality. At June 30, 2017 and 2016, the Company had $41,637 and $81,691, respectively, of cash and cash equivalents on deposit or invested with its financial and lending institutions. The Company provides credit to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. At June 30, 2017, five customers accounted for 53% of the Company's accounts receivable, unbilled receivables and costs in excess of billings. At June 30, 2016, five customers accounted for 50% of the Company’s accounts receivable, unbilled receivables and costs in excess of billings. |
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| Inventory | INVENTORY Inventory is stated at the lower of cost (first-in, first-out) or market value, and consists of materials, labor and overhead. On a quarterly basis, the Company evaluates inventory for net realizable value. Once an item is written down, the value becomes the new inventory cost basis. The Company reduces the value of inventory for excess and obsolete inventory, consisting of on-hand and non-cancelable on-order inventory in excess of estimated usage. The excess and obsolete inventory evaluation is based upon assumptions about future demand, product mix and possible alternative uses. |
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| Goodwill And Acquired Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill is the amount by which the cost of the net assets obtained in a business acquisition exceeded the fair values of the net identifiable assets on the date of purchase (see Note G). Goodwill is not amortized in accordance with the requirements of FASB ASC 350, Intangibles-Goodwill and Other (“FASB ASC 350”). Goodwill is assessed for impairment at least annually, on a reporting unit basis, or when events and circumstances occur indicating that the recorded goodwill may be impaired. If the book value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recorded in an amount equal to that excess. Intangible assets result from the Company’s various business acquisitions (see Note H) and certain licensed technologies, and consist of identifiable intangible assets, including completed technology, licensing agreements, customer relationships, trademarks, backlog, and non-compete agreements. Intangible assets are reported at cost, net of accumulated amortization and are either amortized on a straight-line basis over their estimated useful lives of up to twelve years or over the period the economic benefits of the intangible asset are consumed. |
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| Long-Lived Assets | LONG-LIVED ASSETS Long-lived assets primarily include property and equipment and acquired intangible assets. The Company regularly evaluates its long-lived assets for events and circumstances that indicate a potential impairment in accordance with FASB ASC 360, Property, Plant, and Equipment (“FASB ASC 360”). The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the estimated undiscounted cash flows of the asset as compared to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. |
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| Property And Equipment | Property and equipment are the long-lived, physical assets of the Company acquired for use in the Company’s normal business operations and are not intended for resale by the Company. These assets are recorded at cost. Renewals and betterments that increase the useful lives of the assets are capitalized. Repair and maintenance expenditures that increase the efficiency of the assets are expensed as incurred. Equipment under capital lease is recorded at the present value of the minimum lease payments required during the lease period. Depreciation is based on the estimated useful lives of the assets using the straight-line method (see Note F). As assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Expenditures for major software purchases and software developed for internal use are capitalized and depreciated using the straight-line method over the estimated useful lives of the related assets, which are generally three years. For software developed for internal use, all external direct costs for material and services and certain payroll and related fringe benefit costs are capitalized in accordance with FASB ASC 350. During fiscal 2017, 2016 and 2015, the Company capitalized $508, $0 and $0 of software development costs. |
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| Deferred Revenues And Customer Advances | DEFERRED REVENUES AND CUSTOMER ADVANCES Deferred revenues consist of deferred product revenue, billings in excess of revenues, and deferred service revenue. Deferred product revenue represents amounts that have been invoiced to customers, but are not yet recognizable as revenue because one or more of the conditions for revenue recognition have not been met. Billings in excess of revenues represents milestone billing arrangements on percentage of completion projects where the billings of the contract exceed recognized revenues. Deferred service revenue primarily represents amounts invoiced to customers for annual maintenance contracts or extended warranty concessions, which are recognized ratably over the term of the arrangements. Customer advances represent deposits received from customers on an order. |
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| Income Taxes | INCOME TAXES The Company accounts for income taxes under FASB ASC 740, Income Taxes (“FASB ASC 740”). The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates for the year in which the differences are expected to reverse. The Company records a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. FASB ASC 740 requires a two-step approach to recognizing and measuring uncertain tax positions. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. |
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| Product Warranty Accrual | PRODUCT WARRANTY ACCRUAL The Company’s product sales generally include a 12 month standard hardware warranty. At time of product shipment, the Company accrues for the estimated cost to repair or replace potentially defective products. Estimated warranty costs are based upon prior actual warranty costs for substantially similar transactions and any specifically identified warranty requirements. Product warranty accrual is included as part of accrued expenses in the accompanying consolidated balance sheets. |
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| Research And Development Costs | RESEARCH AND DEVELOPMENT COSTS Research and development costs are expensed as incurred. Research and development costs are primarily made up of labor charges and prototype material and development expenses. |
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| Stock-Based Compensation | STOCK-BASED COMPENSATION Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of the awards that will be forfeited. Stock-based compensation expense for the Company’s performance-based restricted stock awards are amortized over the requisite service period using graded vesting. The Company’s other restricted stock awards recognize expense over the requisite service period on a straight-line basis. The Company uses the Black-Scholes valuation model for estimating the fair value on the date of grant of stock options. |
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| Segment Reporting, Policy [Policy Text Block] | SEGMENT INFORMATION The Company uses the management approach for segment disclosure, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of its reportable segments. The Company manages its business on the basis of one reportable segment, as a commercial provider of secure sensor and safety critical mission processing subsystems for critical defense and intelligence applications. |
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| Retirement of Common Stock | RETIREMENT OF COMMON STOCK Stock that is repurchased or received in connection with the exercise of stock options or in order to cover tax payment obligations triggered by exercise of stock options or the vesting of restricted stock is retired immediately upon the Company’s repurchase. The Company accounts for this under the cost method and upon retirement the excess amount over par value is charged against additional paid-in capital. |
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| Net Earnings Per Share | NET EARNINGS PER SHARE Basic net earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net earnings per share computation includes the effect of shares which would be issuable upon the exercise of outstanding stock options and the vesting of restricted stock, reduced by the number of shares which are assumed to be purchased by the Company under the treasury stock method. |
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| Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income includes foreign currency translation adjustments and pension benefit plan adjustments. The components of accumulated other comprehensive income included $(93) and $171 of accumulated foreign currency translation adjustments for the years ended June 30, 2017 and 2016. In addition, pension benefit plan adjustments totaled $220 for the year ended June 30, 2017. There were no material accumulated net unrealized gains on investments at June 30, 2017 and 2016. |
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| Foreign Currency | FOREIGN CURRENCY Local currencies are the functional currency for the Company’s subsidiaries in Switzerland, United Kingdom and Japan. The accounts of foreign subsidiaries are translated using exchange rates in effect at period-end for assets and liabilities and at average exchange rates during the period for results of operations. The related translation adjustments are reported in accumulated other comprehensive income in shareholders’ equity. Gains (losses) resulting from non-U.S. currency transactions are included in other income (expense), net in the Consolidated Statements of Operations and Comprehensive Income and were immaterial for all periods presented. |
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| Recently Issued Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which 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 ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for the Company on July 1, 2018, and it does not plan to early adopt this ASU. The standard permits the use of either the retrospective or cumulative effect transition method. The Company currently intends to use the retrospective transition method upon adoption of the standard. During fiscal 2017, the Company has made significant investments in its data reporting infrastructure in order to support the reporting requirements of the standard. Throughout fiscal 2018, the Company will continue enhancing its infrastructure to capture each of the specific disclosure requirements detailed in the standard. The Company is continuing to evaluate the future impact that the adoption of the standard will have on its consolidated financial statements. However, the Company does anticipate that the additional disclosure requirements will represent a significant change from current practices. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), an amendment of the FASB Accounting Standards Codification. This ASU requires lessees to recognize a right-of-use asset and lease liability for most lease arrangements. The new standard is effective for the Company on July 1, 2019. The standard mandates a modified retrospective transition method for all entities and early adoption is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, an amendment of the FASB Accounting Standards Codification. This ASU will reduce diversity in practice for classifying cash payments and receipts in the statement of cash flows for a number of common transactions. It will also clarify when identifiable cash flows should be separated versus classified based on their predominant source or use. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is evaluating the effect that ASU 2016-15 will have on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, an amendment of the FASB Accounting Standards Codification. This ASU requires the seller and buyer to recognize at the transaction date the current and deferred income tax consequences of intercompany asset transfers (except transfers of inventory). Under current GAAP, the seller and buyer defer the consolidated tax consequences of an intercompany asset transfer from the period of the transfer to a future period when the asset is transferred out of the consolidated group, or otherwise affects consolidated earnings. This standard will cause volatility in companies’ effective tax rates, particularly for those that transfer intangible assets to foreign subsidiaries. For public entities, the new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2017. An entity may early adopt the standard but only at the beginning of an annual period for which it has not issued or made available for issuance financial statements (interim or annual). The Company is evaluating the effect that ASU 2016-16 will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, an amendment of the FASB Accounting Standards Codification. This ASU eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (“the Step 2 test”) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. For public business entities, the new standard is effective for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The ASU requires prospective adoption and permits early adoption for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect this guidance to have a material impact to its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, an amendment of the FASB Accounting Standards Codification. This ASU requires employers that sponsor defined benefit pension and/or other post-retirement benefit plans to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Employers are required to present the other components of net benefit costs in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component of net periodic pension cost will be eligible for asset capitalization. For public entities, the new standard is effective for annual periods beginning after December 15, 2017, including interim periods within that annual period. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. This ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets.The Company is evaluating the effect that ASU 2017-07 will have on its consolidated financial statements and related disclosures. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Effective July 1, 2016, the Company adopted FASB ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, an amendment of the FASB Accounting Standards Codification. This ASU eliminates the separate presentation of extraordinary items, net of tax and the related earnings per share, but does not affect the requirement to disclose material items that are unusual in nature or infrequently occurring. The ASU aligns GAAP more closely with International Financial Reporting Standards. The Company will continue to evaluate whether items are unusual in nature or infrequent in their occurrence for disclosure purposes and when estimating the annual effective tax rate for interim reporting purposes. Such adoption did not have any impact to the Company's consolidated financial statements. Effective June 30, 2017, the Company adopted FASB ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, an amendment of the FASB Accounting Standards Codification. The ASU has added additional disclosure requirements to the codification. It requires management to assess, at each interim and annual reporting period, whether substantial doubt exists about an entity’s ability to continue as a going concern. Substantial doubt exists if it is probable (the “probable” threshold under GAAP has generally been interpreted to be between 75 and 80 percent) that the entity will be unable to meet its obligations as they become due within one year after the date the financial statements are issued or available to be issued (assessment date). There was not a going concern uncertainty in the current year or in the foreseeable future, and therefore this guidance did not have an impact to the Company's consolidated financial statements. Effective July 1, 2017, the Company adopted FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, an amendment of the FASB Accounting Standards Codification. This ASU changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value for entities that do not measure inventory using the last-in, first-out or retail inventory method. The ASU also eliminates the requirement for these entities to consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. Such adoption did not have any impact to the Company's consolidated financial statements. |
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| Employee Benefit Plans | The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan. |
Summary of Significant Accounting Policies (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Product Warranty Liability | The following table presents the changes in the Company's product warranty accrual.
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| Basic and Diluted Weighted Average Shares Outstanding | Basic and diluted weighted average shares outstanding were as follows:
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Acquisitions (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Assets Acquired and Liabilities Assumed | The following table presents the net purchase price and the preliminary fair values of the assets and liabilities of Delta:
The following table presents the net purchase price and the preliminary fair values of the assets and liabilities of CES:
The following table presents the net purchase price and the fair values of the assets and liabilities of the Carve-Out Business:
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Fair Value of Financial Instruments (Tables) |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at June 30, 2016:
The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at June 30, 2017:
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Inventory (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory | Inventory was comprised of the following:
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Property and Equipment (Tables) |
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment | Property and equipment consisted of the following:
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| Unamortized Deferred Gain | The unamortized deferred gain of $929 at June 30, 2016 was included in accrued expenses and in the accompanying consolidated balance sheets and has been fully amortized as of June 30, 2017 |
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Goodwill (Tables) |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in Carrying Amount of Goodwill | The following table summarizes the changes in goodwill at the Company's three reporting units for the year ended June 30, 2016, prior to the reorganization of the Company's reporting unit structure in fiscal 2017:
The following table summarizes the changes in goodwill at the Company's three reporting units from June 30, 2016 through May 31, 2017, immediately before the reorganization of the Company's reporting unit structure:
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Intangible Assets (Tables) |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquired Intangible Assets | Intangible assets consisted of the following:
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| Estimated Future Amortization Expense for Acquired Intangible Assets | Estimated future amortization expense for intangible assets remaining at June 30, 2017 is as follows:
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| Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following table summarizes the preliminary estimated fair value of acquired intangible assets arising as a result of the Delta acquisition. These assets are included in the Company's gross and net carrying amounts as of June 30, 2017.
The following table summarizes the preliminary estimated fair value of acquired intangible assets arising as a result of the CES acquisition. These assets are included in the Company's gross and net carrying amounts as of June 30, 2017.
The following table summarizes the fair value of acquired intangible assets arising as a result of the Carve-Out Business acquisition. These assets are included in the Company's gross and net carrying amounts as of June 30, 2017.
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Restructuring Plan (Tables) |
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses by Business Segment for Restructuring Plans | The following table presents the detail of expenses for the Company’s restructuring plans:
(*) Reversals result from the unused outplacement services and operating costs. |
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Income Taxes (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Income Before Income Taxes and Income Tax Expense (Benefit) | The components of income from continuing operations before income taxes and income tax expense were as follows:
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| Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from Continuing Operations | The following is the reconciliation between the statutory federal income tax rate and the Company’s effective income tax rate for continuing operations:
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| Components of Net Deferred Tax Assets (Liabilities) |
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| Summary of Reserves for Unrecognized Income Tax Benefits | The changes in the Company’s reserves for unrecognized income tax benefits are summarized as follows:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Minimum Lease Payments under Non Cancelable Operating Leases | Minimum lease payments under the Company’s non-cancelable operating leases are as follows:
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Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
| Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Expected Benefit Payments | The following table reflects the total pension benefits expected to be paid from the Plan, which is funded from contributions by participants and the Company.
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| Schedule of Net Benefit Costs | The following table outlines the components of net periodic benefit cost of the Plan for the year ended June 30, 2017:
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| Schedule of Assumptions Used | The following table reflects the related actuarial assumptions used to determine net periodic benefit cost of the Plan for the year ended June 30, 2017:
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| Schedule of Changes in Projected Benefit Obligations | The following table presents the change in projected benefit obligation for the period presented:
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| Schedule of Changes in Fair Value of Plan Assets | The following table presents the change in Plan assets for the period presented:
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| Schedule of Net Funded Status | The following table presents the Company's reconciliation of funded status for the period presented:
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Stock-Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Stock Option Plans | The following table summarizes activity of the Company’s stock option plans since June 30, 2015:
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| Summary of Nonvested Restricted Stock | The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2015:
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| Stock Based Compensation Expenses | The following table presents share-based compensation expenses from continuing operations included in the Company’s consolidated statement of operations:
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Operating Segment, Geographic Information and Significant Customers (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations |
(1) Identifiable long-lived assets exclude goodwill and intangible assets. |
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| Revenue from External Customers by Geographic Areas | The following table presents the Company's net revenue by end market for the periods presented:
(1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined. (2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S. |
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| Revenue from External Customers by Products and Services | The following table presents the Company's net revenue by end application for the periods presented:
(1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects. (2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum. (3) Other products include all end markets other than Radar and Electronic Warfare. Examples include but are not limited to various commercial and other end-use applications and technologies, as well as various component and other sales where the end use is not specified. The following table below the Company's net revenue by product grouping for the periods presented:
(1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include but are not limited to power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices. (2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include but are not limited to embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers. (3) Integrated Subsystems include multiple modules and/or sub-assemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company. |
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| Customers Comprising Ten Percent or more Revenues | Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows:
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| Schedules of Concentration of Risk, by Risk Factor | Programs comprising 10% or more of the Company’s revenues for the periods shown below are as follows:
* Indicates that the amount is less than 10% of the Company's revenues for the respective period. No programs were in excess of 10% of the Company's revenues for fiscal 2017. |
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Discontinued Operations (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of discontinued operations | The amounts reported in loss from discontinued operations, net of income taxes were as follows:
There were no balances for the assets and liabilities of the discontinued operations at June 30, 2017 and 2016. The depreciation, amortization, capital expenditures and significant operating and investing non-cash items of the discontinued operations were as follows:
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Supplementary Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Quarterly Statements of Operations | The following sets forth certain unaudited consolidated quarterly statements of operations data for each of the Company’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of the Company and the notes thereto.
(1) During 2017, the Company included costs related to the sustainment of its product portfolio as research and development expense, which was previously included as costs of revenues on the Consolidated Statements of Operations and Comprehensive Income. For comparative purposes, for the fiscal year ended June 30, 2016, the Company has reclassified $2,845, from costs of revenues to research and development expense. The quarterly amounts reclassified were $773, $1,161 and $911 for the 1st quarter, 2nd quarter and 3rd quarter, respectively. (2) Upon adoption of FASB ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, the Company recognized $1,100 of excess tax benefits in the fourth quarter as a benefit to income taxes in its consolidated statements of operations and comprehensive income (loss) for the year ended June 30, 2016. The tax benefit (provision) impacts were restated above to show the effect of this adoption as if it had occurred at the beginning of fiscal 2016. The tax benefit (provision) impacts were $896, $247, $(169), and $126 for the 1st quarter, 2nd quarter, 3rd quarter and 4th quarter, respectively. Income from continuing operations, net income, and net income amounts per share were also updated as a result of the adjustment to the income tax provision. Due to the effects of rounding, the sum of the four quarters does not equal the annual total. |
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Description of Business (Details) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
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Apr. 03, 2017
USD ($)
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Nov. 04, 2016
USD ($)
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Nov. 03, 2016
USD ($)
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May 02, 2016
USD ($)
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Jun. 30, 2017
program
contractor
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
| Number of programs using products and services, more than 300 | program | 300 | ||||
| Number of contractors using products and services, more than 25 | contractor | 25 | ||||
| Delta | |||||
| Total purchase price | $ 40,500 | ||||
| Cash paid at closing | $ 40,500 | ||||
| CES Creative Electronic Systems S.A. | |||||
| Total purchase price | $ 38,793 | $ 39,123 | |||
| Cash paid at closing | $ 39,123 | ||||
| Carve-Out Business | |||||
| Total purchase price | $ 298,569 | ||||
| Cash paid at closing | $ 300,000 |
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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| Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
| Cost of revenues | $ 217,045 | $ 142,535 | $ 120,647 | |||
| As Adjusted | ||||||
| Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
| Cost of revenues | $ (1) | $ (1) | $ (1) | $ (2,845) | $ (3,981) | |
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) |
12 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Maximum | |
| Restricted Cash and Cash Equivalents Items [Line Items] | |
| Maturity of cash and cash equivalents | 90 days |
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Jun. 30, 2016 |
|---|---|---|
| Accounting Policies [Abstract] | ||
| Restricted cash | $ 0 | $ 264 |
Summary of Significant Accounting Policies - Concentration of Risk (Details) $ in Thousands |
12 Months Ended | |
|---|---|---|
|
Jun. 30, 2017
USD ($)
customer
|
Jun. 30, 2016
USD ($)
customer
|
|
| Concentration Risk [Line Items] | ||
| Cash and cash equivalent | $ | $ 41,637 | $ 81,691 |
| Customer Concentration Risk | Accounts Receivable, Unbilled Receivables, and Costs in Excess of Billings [Member] | ||
| Concentration Risk [Line Items] | ||
| Concentration risk, number | customer | 5 | 5 |
| Concentration risk, percent | 53.00% | 50.00% |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Segment Information (Details) |
12 Months Ended |
|---|---|
|
Jun. 30, 2017
segment
| |
| Accounting Policies [Abstract] | |
| Number of reportable segments | 1 |
Summary of Significant Accounting Policies - Intangible Assets (Detail) |
12 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Maximum | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Acquired intangible assets, estimated useful lives | 12 years |
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Accounting Policies [Abstract] | |||
| Property and equipment, estimated useful lives | 3 years | ||
| Capitalized software development cost | $ 508 | $ 0 | $ 0 |
Summary of Significant Accounting Policies - Income Taxes (Details) |
Jun. 30, 2017 |
|---|---|
| Accounting Policies [Abstract] | |
| Minimum likelihood of tax benefits being recognized upon ultimate settlement | 50.00% |
Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Product Warranty Liability [Line Items] | |||
| Product warranty term | 12 months | ||
| Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
| Beginning Balance | $ 1,523 | $ 1,974 | $ 2,078 |
| Accruals for warranties issued during the period | 1,328 | 1,976 | 1,465 |
| Settlements made during the period | (1,366) | (2,541) | (1,569) |
| Ending Balance | 1,691 | 1,523 | 1,974 |
| CES Creative Electronic Systems S.A. | |||
| Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
| Warranty assumed from CES | 176 | 0 | 0 |
| Delta | |||
| Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
| Warranty assumed from CES | 30 | 0 | 0 |
| Carve-Out Business | |||
| Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
| Warranty assumed from CES | $ 0 | $ 114 | $ 0 |
Summary of Significant Accounting Policies - Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Accounting Policies [Abstract] | |||
| Basic weighted-average shares outstanding | 41,986 | 34,241 | 32,114 |
| Effect of dilutive equity instruments | 1,032 | 856 | 825 |
| Diluted weighted-average shares outstanding | 43,018 | 35,097 | 32,939 |
Summary of Significant Accounting Policies - Net Earnings Per Share Additional Information (Details) - shares shares in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Accounting Policies [Abstract] | |||
| Common stock excluded from diluted earning per share (in shares) | 16 | 7 | 453 |
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) - USD ($) |
Jun. 30, 2017 |
Jun. 30, 2016 |
|---|---|---|
| Accounting Policies [Abstract] | ||
| Accumulated other comprehensive income adjustment for foreign currency | $ (93,000) | $ 171,000 |
| Accumulated other comprehensive income adjustment for pension plans | 220,000 | |
| Accumulated other comprehensive income, available-for-sale securities gains (losses) | $ 0 | $ 0 |
Fair Value of Financial Instruments - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands |
Jun. 30, 2017 |
Jun. 30, 2016 |
|---|---|---|
| Fair Value | ||
| Assets: | ||
| Fair value measurement disclosure | $ 1,043 | $ 30,075 |
| Certificates of Deposit [Member] | Fair Value | ||
| Assets: | ||
| Fair value measurement disclosure | 1,043 | 30,075 |
| Level 1 | ||
| Assets: | ||
| Fair value measurement disclosure | 0 | 0 |
| Level 1 | Certificates of Deposit [Member] | ||
| Assets: | ||
| Fair value measurement disclosure | 0 | 0 |
| Level 2 | ||
| Assets: | ||
| Fair value measurement disclosure | 1,043 | 30,075 |
| Level 2 | Certificates of Deposit [Member] | ||
| Assets: | ||
| Fair value measurement disclosure | 1,043 | 30,075 |
| Level 3 | ||
| Assets: | ||
| Fair value measurement disclosure | 0 | 0 |
| Level 3 | Certificates of Deposit [Member] | ||
| Assets: | ||
| Fair value measurement disclosure | $ 0 | $ 0 |
Inventory (Detail) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Jun. 30, 2016 |
|---|---|---|
| Inventory Disclosure [Abstract] | ||
| Raw materials | $ 48,645 | $ 31,205 |
| Work in process | 22,567 | 15,967 |
| Finished goods | 9,859 | 11,112 |
| Total | $ 81,071 | $ 58,284 |
Inventory - Additional Information (Details) |
12 Months Ended |
|---|---|
|
Jun. 30, 2017
USD ($)
| |
| Inventory Disclosure [Abstract] | |
| Increase in inventory primarily due to inclusion of inventory from acquisition | $ 22,787,000 |
| Inventory for long-term contracts or programs | $ 0 |
Property and Equipment - Additional Information (Detail) $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
|
Apr. 20, 2007
USD ($)
OptionPlan
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
|
| Property, Plant and Equipment [Line Items] | ||||
| Increase in property and equipment | $ 23,306 | |||
| Depreciation and amortization expense related to property and equipment | 12,589 | $ 6,900 | $ 6,332 | |
| Lease term | 10 years | |||
| Number of five year term option to renew | OptionPlan | 2 | |||
| Lease term, option to renew | 5 years | |||
| Deferred gain on sale-leaseback transaction | $ 11,569 | |||
| Unamortized deferred gain | 929 | |||
| Computer equipment and software | ||||
| Property, Plant and Equipment [Line Items] | ||||
| Retirement of asset | $ 14,310 | $ 32 | ||
Goodwill - Additional Information (Detail) |
1 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
segment
reporting_unit
|
May 31, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
|
| Goodwill [Line Items] | |||||
| Number of reportable segments | segment | 1 | ||||
| Number of reporting units | reporting_unit | 3 | ||||
| Goodwill impairment | $ 0 | ||||
| Goodwill | 380,846,000 | $ 380,846,000 | $ 380,846,000 | $ 344,027,000 | $ 168,146,000 |
| SMP | |||||
| Goodwill [Line Items] | |||||
| Goodwill | 116,003 | 116,003 | |||
| AMS | |||||
| Goodwill [Line Items] | |||||
| Goodwill | 217,956 | 217,956 | |||
| MDS | |||||
| Goodwill [Line Items] | |||||
| Goodwill | $ 46,887 | $ 46,887 | $ 39,406,000 | $ 39,406,000 | $ 33,768,000 |
Restructuring Plan - Additional Information (Detail) |
12 Months Ended | ||
|---|---|---|---|
|
Jun. 30, 2017
USD ($)
position
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
position
|
|
| Restructuring Cost and Reserve [Line Items] | |||
| Restructuring and other charges | $ 1,952,000 | $ 1,240,000 | $ 3,175,000 |
| Number of positions eliminated | position | 16 | ||
| Other Restructuring Costs | 1,042 | ||
| 2014 Plan Member] | |||
| Restructuring Cost and Reserve [Line Items] | |||
| Severance costs | $ 910 | ||
| Number of positions eliminated | position | 33 | ||
Restructuring Plan - Expenses by Business Segment for Restructuring Plans (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
||||
| Restructuring Reserve [Roll Forward] | |||||
| Restructuring liability at beginning of period | $ 926 | $ 1,992 | |||
| Provisions | 1,959 | 1,341 | |||
| Cash paid | (1,513) | (2,306) | |||
| Reversals | [1] | (7) | (101) | ||
| Restructuring liability at end period | 1,365 | 926 | |||
| Severance | |||||
| Restructuring Reserve [Roll Forward] | |||||
| Restructuring liability at beginning of period | 190 | 657 | |||
| Provisions | 1,706 | 752 | |||
| Cash paid | (524) | (1,118) | |||
| Reversals | [1] | (7) | (101) | ||
| Restructuring liability at end period | 1,365 | 190 | |||
| Other Members | |||||
| Restructuring Reserve [Roll Forward] | |||||
| Restructuring liability at beginning of period | 736 | 1,335 | |||
| Provisions | 253 | 589 | |||
| Cash paid | (989) | (1,188) | |||
| Reversals | [1] | 0 | 0 | ||
| Restructuring liability at end period | $ 0 | $ 736 | |||
| |||||
Income Taxes - Components of Income Before Income Taxes and Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Income from continuing operations before income taxes: | |||||||||||
| United States | $ 30,499 | $ 25,194 | $ 18,443 | ||||||||
| Foreign | 569 | 92 | 352 | ||||||||
| Income from continuing operations before income taxes | $ 11,307 | $ 10,218 | $ 6,983 | $ 2,560 | $ 8,590 | $ 6,999 | $ 6,473 | $ 3,224 | 31,068 | 25,286 | 18,795 |
| Federal: | |||||||||||
| Current | 11,476 | 6,707 | 4,267 | ||||||||
| Deferred | (7,645) | (2,627) | (458) | ||||||||
| Federal Income Tax Expense (Benefit), Continuing Operations, Total | 3,831 | 4,080 | 3,809 | ||||||||
| State: | |||||||||||
| Current | 3,650 | 1,839 | 1,372 | ||||||||
| Deferred | (1,684) | (424) | (921) | ||||||||
| State and Local Income Tax Expense (Benefit), Continuing Operations, Total | 1,966 | 1,415 | 451 | ||||||||
| Foreign: | |||||||||||
| Current | 240 | 59 | 58 | ||||||||
| Deferred | 156 | (10) | 48 | ||||||||
| Foreign, Income Tax expense benefit | 396 | 49 | 106 | ||||||||
| Income tax expense (benefit) | $ 2,503 | $ 3,170 | $ 1,779 | $ (1,259) | $ 1,101 | $ 2,642 | $ 1,433 | $ 368 | $ 6,193 | $ 5,544 | $ 4,366 |
Income Taxes - Summary of Reserves for Unrecognized Income Tax Benefits (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
| Unrecognized tax benefits, beginning of period | $ 1,566 | $ 2,190 | |
| Increases for previously recognized positions | 46 | 79 | |
| Settlements of previously recognized positions | (793) | 0 | |
| Reductions as a result of a lapse of the applicable statute of limitations | (273) | 0 | |
| Increases for currently recognized positions | 384 | 302 | |
| Reductions for previously recognized positions deemed effectively settled | 0 | (681) | |
| Reductions for previously recognized positions | (126) | (324) | |
| Unrecognized tax benefits, end of period | 804 | 1,566 | $ 2,190 |
| Unrecognized tax benefits that would impact effective tax rate | 804 | ||
| Interest and penalties accrued | 54 | 258 | |
| interest and penalties recognized | $ 30 | $ 204 | $ 26 |
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Long-term Purchase Commitment [Line Items] | |||
| Rental expenses | $ 7,774 | $ 4,015 | $ 3,777 |
| Non-cancelable purchase commitments | |||
| Long-term Purchase Commitment [Line Items] | |||
| Purchase commitments for less than one year | $ 59,173 | ||
Commitments and Contingencies - Minimum Lease Payments under Non Cancelable Operating Leases (Detail) $ in Thousands |
Jun. 30, 2017
USD ($)
|
|---|---|
| Commitments and Contingencies Disclosure [Abstract] | |
| 2015 | $ 6,139 |
| 2016 | 5,595 |
| 2017 | 5,208 |
| 2018 | 4,291 |
| 2019 | 3,387 |
| Thereafter | 18,897 |
| Total minimum lease payments | $ 43,517 |
Debt - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
May 02, 2016 |
Jun. 30, 2017 |
Jun. 27, 2017 |
|
| Line of Credit Facility [Line Items] | |||
| Letters of credit outstanding | $ 5,897 | ||
| Debt instrument borrowing term | 5 years | ||
| Collateral, capital stock | 65.00% | ||
| Term Loan | |||
| Line of Credit Facility [Line Items] | |||
| Long-term debt, gross | $ 200,000 | ||
| Debt issuance costs, gross | 8,026 | ||
| Revolver | |||
| Line of Credit Facility [Line Items] | |||
| Maximum borrowing capacity | $ 100,000 | $ 400,000 | |
| Commitment fee | 0.25% | ||
| LIBOR | Revolver | |||
| Line of Credit Facility [Line Items] | |||
| Basis spread on variable rate | 1.375% | ||
| Credit Agreement | |||
| Line of Credit Facility [Line Items] | |||
| Debt issuance costs, net | (6,522) | ||
| Amended Credit Agreement | |||
| Line of Credit Facility [Line Items] | |||
| Debt issuance costs, net | $ (591) |
Employee Benefit Plans - Pension, Additional Information (Detail) - USD ($) |
12 Months Ended | |
|---|---|---|
Jun. 30, 2017 |
Nov. 04, 2016 |
|
| Defined Benefit Plan Disclosure [Line Items] | ||
| Net gain in accumulated other comprehensive income | $ 220,000 | |
| Foreign Pension Plan | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Amortization period of prior service cost (credit) | 10 years | |
| Funded status of plan | $ 6,601,000 | |
| Net gain in accumulated other comprehensive income | 220,000 | |
| Estimated future employer contributions next fiscal year | 539,000 | |
| Recognized gain (loss) from OCI | 0 | |
| Amount expected to be recognized from OCI next year | 0 | |
| Fair value of plan assets | $ 10,925,000 | $ 10,459,000 |
| Discount rate | 0.70% | |
| Rate of compensation increases | 1.00% |
- Schedule of Expected Future Pension Benefits (Details) - Foreign Pension Plan $ in Thousands |
Jun. 30, 2017
USD ($)
|
|---|---|
| Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
| 2018 | $ 526 |
| 2019 | 678 |
| 2020 | 800 |
| 2021 | 497 |
| 2022 | 622 |
| Thereafter (next 5 years) | 3,928 |
| Total | $ 7,051 |
Employee Benefit Plans - Schedule of Net Periodic Benefit Cost - Foreign Pension Plan - USD ($) $ in Thousands |
8 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2017 |
|
| Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
| Service cost | $ 557 | $ 557 |
| Interest cost | $ 73 | 73 |
| Expected return on assets | (105) | |
| Amortization of prior service cost | 20 | |
| Net periodic benefit cost | $ 545 |
Employee Benefit Plans - Schedule of Related Actuarial Assumptions (Details) - Foreign Pension Plan |
12 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Discount rate | 0.70% |
| Expected rate of return on Plan assets | 1.50% |
| Expected inflation | 1.00% |
| Rate of compensation increases | 1.00% |
Employee Benefit Plans - Schedule of Projected Benefit Obligation (Details) - Foreign Pension Plan - USD ($) $ in Thousands |
8 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2017 |
|
| Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
| Projected benefit obligation at November 4, 2016 | $ 17,086 | |
| Service cost | 557 | $ 557 |
| Interest cost | 73 | 73 |
| Employee contributions | 581 | |
| Actuarial gain | (598) | |
| Benefits paid | (563) | |
| Plan amendment | 390 | |
| Projected benefit obligation at end of year | $ 17,526 | $ 17,526 |
Employee Benefit Plans - Schedule of Change in Plan Assets (Details) - Foreign Pension Plan $ in Thousands |
8 Months Ended |
|---|---|
|
Jun. 30, 2017
USD ($)
| |
| Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
| Fair value of plan assets at November 4, 2016 | $ 10,459 |
| Actual return on Plan assets | 100 |
| Company contributions | 348 |
| Employee contributions | 581 |
| Benefits paid | (563) |
| Fair value of plan assets at end of year | $ 10,925 |
Employee Benefit Plans - Reconciliation of Funded Status (Details) - Foreign Pension Plan - USD ($) $ in Thousands |
Jun. 30, 2017 |
Nov. 04, 2016 |
|---|---|---|
| Defined Benefit Plan Disclosure [Line Items] | ||
| Projected benefit obligation at end of year | $ 17,526 | $ 17,086 |
| Fair value of plan assets at end of year | 10,925 | $ 10,459 |
| Funded status | $ (6,601) |
- 401(k) Plan (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Defined Contribution Plan Disclosure [Line Items] | |||
| Employer contributions | $ 3,206 | $ 1,874 | $ 1,934 |
| Maximum | |||
| Defined Contribution Plan Disclosure [Line Items] | |||
| Employee Contribution of eligible compensation | 3.00% | 3.00% | |
| 401(k) Plan | Maximum | |||
| Defined Contribution Plan Disclosure [Line Items] | |||
| Employee Contribution of eligible compensation | 3.00% | ||
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
Jan. 26, 2017 |
Apr. 04, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|---|---|---|---|---|
| Equity [Abstract] | ||||
| Preferred stock shares authorized to issue | 1,000,000 | 1,000,000 | ||
| Preferred stock shares par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
| Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
| Shares sold (in shares) | 6,900,000 | 5,175,000 | ||
| Price of stock sold (in dollars per share) | $ 33.00 | $ 19.25 | ||
| Consideration received on transaction | $ 215,725 | $ 92,788 |
Stock-Based Compensation - Summary of Nonvested Restricted Stock (Detail) - Restricted Stock - $ / shares shares in Thousands |
12 Months Ended | |
|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
| Number of Shares | ||
| Beginning Balance | 1,666 | 1,866 |
| Granted | 718 | 667 |
| Vested | (769) | (743) |
| Forfeited | (51) | (124) |
| Ending Balance | 1,564 | 1,666 |
| Weighted Average Grant Date Fair Value (in dollars per share) | ||
| Beginning Balance | $ 13.09 | $ 10.72 |
| Granted | 24.72 | 16.26 |
| Vested | 11.94 | 10.93 |
| Forfeited | 15.02 | 11.70 |
| Ending Balance | $ 18.93 | $ 13.09 |
Stock-Based Compensation - Stock Based Compensation Expenses (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation expense | $ 15,341 | $ 9,574 | $ 8,640 |
| Income taxes | (5,874) | (3,727) | (3,332) |
| Share-based compensation expense, net of income taxes | 9,467 | 5,847 | 5,308 |
| Cost of revenues | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation expense | 531 | 441 | 493 |
| Selling, general and administrative | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation expense | 13,212 | 7,864 | 6,751 |
| Research and development | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Stock-based compensation expense | $ 1,598 | $ 1,269 | $ 1,396 |
Operating Segment, Geographic Information and Significant Customers - Additional Information (Details) |
12 Months Ended |
|---|---|
|
Jun. 30, 2017
segment
| |
| Segment Reporting [Abstract] | |
| Number of operating segments | 1 |
| Number of reportable segments | 1 |
Operating Segment, Geographic Information and Significant Customers - Net Revenue by End Market (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
| Net revenues | $ 115,608 | $ 107,317 | $ 98,014 | $ 87,649 | $ 85,430 | $ 65,898 | $ 60,417 | $ 58,409 | $ 408,588 | $ 270,154 | $ 234,847 |
| Domestic | |||||||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
| Net revenues | 341,699 | 220,253 | 189,596 | ||||||||
| International/Foreign Military Sales | |||||||||||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
| Net revenues | $ 66,889 | $ 49,901 | $ 45,251 | ||||||||
Operating Segment, Geographic Information and Significant Customers - Net Revenue by End Application (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Revenue from External Customer [Line Items] | |||||||||||
| Net revenues | $ 115,608 | $ 107,317 | $ 98,014 | $ 87,649 | $ 85,430 | $ 65,898 | $ 60,417 | $ 58,409 | $ 408,588 | $ 270,154 | $ 234,847 |
| Radar End User Applications | |||||||||||
| Revenue from External Customer [Line Items] | |||||||||||
| Net revenues | 150,441 | 140,289 | 143,475 | ||||||||
| Electronic Warfare End User Applications | |||||||||||
| Revenue from External Customer [Line Items] | |||||||||||
| Net revenues | 106,446 | 72,118 | 51,419 | ||||||||
| Other End User Applications | |||||||||||
| Revenue from External Customer [Line Items] | |||||||||||
| Net revenues | $ 151,701 | $ 57,747 | $ 39,953 | ||||||||
Operating Segment, Geographic Information and Significant Customers - Net Revenue by Product Grouping (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Revenue from External Customer [Line Items] | |||||||||||
| Net revenues | $ 115,608 | $ 107,317 | $ 98,014 | $ 87,649 | $ 85,430 | $ 65,898 | $ 60,417 | $ 58,409 | $ 408,588 | $ 270,154 | $ 234,847 |
| Components | |||||||||||
| Revenue from External Customer [Line Items] | |||||||||||
| Net revenues | 105,669 | 31,252 | 15,543 | ||||||||
| Modules and Sub-assemblies | |||||||||||
| Revenue from External Customer [Line Items] | |||||||||||
| Net revenues | 161,973 | 126,777 | 107,922 | ||||||||
| Integrated Subsystems | |||||||||||
| Revenue from External Customer [Line Items] | |||||||||||
| Net revenues | $ 140,946 | $ 112,125 | $ 111,382 | ||||||||
Operating Segment, Geographic Information and Significant Customers - Customers Comprising Ten Percent or More of Revenues (Detail) - Revenues |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Revenue, Major Customer [Line Items] | |||
| Concentration risk, percent | 0.00% | 22.00% | 46.00% |
| Customer Concentration Risk | |||
| Revenue, Major Customer [Line Items] | |||
| Concentration risk, percent | 36.00% | 43.00% | 57.00% |
| Customer Concentration Risk | Raytheon Company | |||
| Revenue, Major Customer [Line Items] | |||
| Concentration risk, percent | 20.00% | 23.00% | 20.00% |
| Customer Concentration Risk | Lockheed Martin Corporation | |||
| Revenue, Major Customer [Line Items] | |||
| Concentration risk, percent | 16.00% | 20.00% | 37.00% |
Operating Segment, Geographic Information and Significant Customers - Programs Comprising Ten Percent or More of Revenues (Detail) - Revenues |
12 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Segment Reporting Information [Line Items] | |||
| Concentration risk, percent | 0.00% | 22.00% | 46.00% |
| SEWIP | Program Concentration Risk | |||
| Segment Reporting Information [Line Items] | |||
| Concentration risk, percent | 12.00% | ||
| Aegis | Program Concentration Risk | |||
| Segment Reporting Information [Line Items] | |||
| Concentration risk, percent | 10.00% | 12.00% | |
| Patriot | Program Concentration Risk | |||
| Segment Reporting Information [Line Items] | |||
| Concentration risk, percent | 18.00% | ||
| F-35 | Program Concentration Risk | |||
| Segment Reporting Information [Line Items] | |||
| Concentration risk, percent | 16.00% | ||
Discontinued Operations - Additional Disclosures (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jan. 23, 2015 |
|
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
| Disposal Group, Including Discontinued Operation, Consideration | $ 1,600 | |||
| Proceeds from Divestiture of Businesses | $ 0 | $ 0 | $ 885 | |
| Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 0 | $ 0 | 892 | |
| MIS [Member] | ||||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
| Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 892 | |||
Discontinued Operations - Depreciation, Amortization, Capital Expenditures, and Significant Noncash Items (Details) - MIS [Member] $ in Thousands |
12 Months Ended |
|---|---|
|
Jun. 30, 2015
USD ($)
| |
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
| Depreciation | $ 100 |
| Amortization of intangible assets | 279 |
| Capital expenditures | 0 |
| Impairment of goodwill | 2,283 |
| Stock-based compensation expense | $ 88 |
Supplementary Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
| Unaudited consolidated quarterly statements of operations data | |||||||||||
| Net revenues | $ 115,608 | $ 107,317 | $ 98,014 | $ 87,649 | $ 85,430 | $ 65,898 | $ 60,417 | $ 58,409 | $ 408,588 | $ 270,154 | $ 234,847 |
| Gross margin | 53,927 | 50,783 | 47,389 | 39,444 | 38,176 | 31,402 | 29,739 | 28,302 | 191,543 | 127,619 | 114,200 |
| Income from operations | 13,008 | 11,695 | 8,958 | 3,742 | 7,654 | 6,819 | 6,369 | 3,131 | 37,403 | 23,973 | 18,355 |
| Income from continuing operations before income taxes | 11,307 | 10,218 | 6,983 | 2,560 | 8,590 | 6,999 | 6,473 | 3,224 | 31,068 | 25,286 | 18,795 |
| Income tax (benefit) provision | 2,503 | 3,170 | 1,779 | (1,259) | 1,101 | 2,642 | 1,433 | 368 | 6,193 | 5,544 | 4,366 |
| Income from continuing operations | 8,804 | 7,048 | 5,204 | 3,819 | 7,489 | 4,357 | 5,040 | 2,856 | 24,875 | 19,742 | 14,429 |
| Net income | $ 8,804 | $ 7,048 | $ 5,204 | $ 3,819 | $ 7,489 | $ 4,357 | $ 5,040 | $ 2,856 | $ 24,875 | $ 19,742 | $ 10,369 |
| Earnings Per Share [Abstract] | |||||||||||
| Basic net income per share (in dollars per share) | $ 0.19 | $ 0.16 | $ 0.13 | $ 0.10 | $ 0.20 | $ 0.13 | $ 0.15 | $ 0.09 | $ 0.59 | $ 0.58 | $ 0.32 |
| Diluted net income per share (in dollars per share) | $ 0.19 | $ 0.16 | $ 0.13 | $ 0.10 | $ 0.19 | $ 0.13 | $ 0.15 | $ 0.08 | $ 0.58 | $ 0.56 | $ 0.31 |
| Cost of revenues | $ 217,045 | $ 142,535 | $ 120,647 | ||||||||
| Excess tax benefit from share-based compensation recognized as a benefit to income taxes | $ 126 | $ (169) | $ 247 | $ 896 | 1,100 | ||||||
| As Adjusted | |||||||||||
| Earnings Per Share [Abstract] | |||||||||||
| Cost of revenues | $ (1) | $ (1) | $ (1) | $ (2,845) | $ (3,981) | ||||||
8?(7NS