Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Available-for-sale Securities

Summary of Cash and Available-for-Sale Securities (in thousands)

	June 30
	2013		2012
Cash	$	41,518	$	18,455
Cash equivalents	$	54,285	$	36,141
Short-term investments	43,034		23,358
Marketable securities	66,776		75,561
Total available-for-sale	$	164,095	$	135,060
Total cash and available for sale securities	$	205,613	$	153,515

Available-for-Sale Securities

The following is a summary of available-for-sale securities (in thousands): 

	Amortized Cost		Fair Value		Unrealized Holding Gains		Unrealized Holding Losses
June 30, 2013
Money market funds	$	54,285	$	54,285	$	—	$	—
U.S. corporate debt securities	110,078		109,810		126		(394		)
	$	164,363	$	164,095	$	126	$	(394	)
Classified as:
Cash equivalents	$	54,285	$	54,285	$	—	$	—
Short-term investments	42,994		43,034		44		(4		)
Marketable securities	67,084		66,776		82		(390		)
	$	164,363	$	164,095	$	126	$	(394	)
June 30, 2012
Money market funds	$	36,141	$	36,141	$	—	$	—
U.S. corporate debt securities	84,882		84,949		148		(81		)
U.S. government agency securities	11,241		11,234		3		(10		)
U.S. municipal bonds	2,738		2,736		—		(2		)
	$	135,002	$	135,060	$	151	$	(93	)
Classified as:
Cash equivalents	$	36,141	$	36,141	$	—	$	—
Short-term investments	23,311		23,358		48		(1		)
Marketable securities	75,550		75,561		103		(92		)
	$	135,002	$	135,060	$	151	$	(93	)

The amortized cost and estimated fair value of available-for-sale investments in debt securities at June 30, 2013, by contractual maturity, were as follows (in thousands):

	Amortized Cost		Fair Value
Due in 1 year or less	$	42,994	$	43,034
Due in 1-2 years	33,516		33,540
Due in 2-5 years	33,568		33,236
Total investments in available for sale debt securities	$	110,078	$	109,810

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

The following table presents the Company’s investments’ gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
June 30, 2013
U.S. corporate debt securities	$	60,782	$	(390	)	$	1,048	$	(4	)	$	61,830	$	(394	)
	$	60,782	$	(390	)	$	1,048	$	(4	)	$	61,830	$	(394	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Fair value is measured based on a fair value hierarchy following three levels of inputs, of which the first two are considered observable and the last unobservable:

• Level 1	Quoted prices in active markets for identical assets or liabilities;
• Level 2	Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
• Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table presents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis:

June 30, 2013	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Investments:
Money market funds	$	54,285	$	—	$	—	$	54,285
Corporate notes/bonds	—		109,810		—		109,810
Foreign currency forward contracts	—		21		—		21
Total	$	54,285	$	109,831	$	—	$	164,116

June 30, 2012	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Investments:
Municipal bonds	$	—	$	2,736	$	—	$	2,736
Federal agency notes	—		11,234		—		11,234
Money market funds	36,141		—		—		36,141
Corporate notes/bonds	—		84,949		—		84,949
Foreign currency forward contracts	—		179		—		179
Total	$	36,141	$	99,098	$	—	$	135,239

Schedules of Concentration of Risk, by Risk Factor

The following table sets forth major customers accounting for 10% or more of our net revenue:

	Fiscal Year Ended
	June 30, 2013		June 30, 2012		July 3, 2011
Westcon Group Inc.	16	%	19	%	16	%
Scansource, Inc.	12	%	13	%	14	%
Tech Data Corporation	10	%	*		11	%
Ericsson AB	*		12	%	11	%
* Less than 10% of revenue

The following table sets forth major customers accounting for 10% or more of our accounts receivable balance.

	June 30, 2013		June 30, 2012
Ericsson AB	*		21	%
Westcon Group Inc.	25	%	16	%
* Less than 10% of accounts receivable

Property, Plant and Equipment

Property and equipment consist of the following (in thousands):

	June 30, 2013			June 30, 2012
Computer equipment	$	29,400		$	42,771
Land	—			10,300
Buildings and improvements	—			9,581
Purchased software	3,699			11,961
Office equipment, furniture and fixtures	1,506			3,201
Leasehold improvements	11,344			5,467
	45,949			83,281
Less: accumulated depreciation and amortization	(22,305		)	(58,101		)
Property and equipment, net	$	23,644		$	25,180

Schedule of Intangible Assets

The following tables summarize the components of gross and net intangible asset balances (in thousands):

	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
June 30, 2013
Patents	6.7 years	$	1,800	$	846	$	954
License Agreements	10.3 years	10,447		7,407		3,040
Other Intangibles	2.3 years	659		410		249
		$	12,906	$	8,663	$	4,243

	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
June 30, 2012
Patents	7.4 years	$	1,800	$	669	$	1,131
License Agreements	9.3 years	10,158		6,231		3,927
Other Intangibles	0.3 years	324		276		48
		$	12,282	$	7,176	$	5,106

Schedule of Expected Amortization Expense

Amortization expense expected to be recorded for each of the next five years is as follows (in thousands):

For the fiscal year ending:
2014	$	988
2015	622
2016	447
2017	368
2018	282
Thereafter	1,536
Total	$	4,243

Deferred Revenue Roll Forward

The change in the Company’s deferred revenue balance in relation to these arrangements was as follows (in thousands):

	Year Ended
	June 30, 2013			June 30, 2012
Deferred product and other revenue, net	$	3,451		$	1,867
Deferred services revenue, net
Balance beginning of period	37,461			35,802
New support arrangements	57,342			59,313
Recognition of support revenue	(56,800		)	(57,654		)
Balance end of period	38,003			37,461
Total deferred revenue, net	41,454			39,328
Less: current portion	33,184			31,769
Non-current deferred revenue	$	8,270		$	7,559

Schedule of Deferred Distributors Revenue

The following table summarizes deferred distributors revenue, net of cost of sales to distributors at the end of fiscal 2013 and 2012, respectively (in thousands):

	Year Ended
	June 30, 2013			June 30, 2012
Deferred revenue	$	22,411		$	20,361
Deferred cost of Sales	(5,023		)	(5,042		)
Total deferred distributors revenue, net of cost of sales to distributors	$	17,388		$	15,319

Schedule of Product Warranty Liability

The following table summarizes the activity related to the Company’s product warranty liability during fiscal 2013 and fiscal 2012:

	Year ended
	June 30, 2013			June 30, 2012
Balance beginning of period	$	2,871		$	2,640
New warranties issued	4,299			3,117
Warranty expenditures	(3,874		)	(2,886		)
Balance end of period	$	3,296		$	2,871

Schedule of Other Accrued Liabilities

The following are the components of other accrued liabilities (in thousands):

	June 30, 2013		June 30, 2012
Accrued general and administrative costs	$	2,959	$	1,599
Other accrued liabilities	13,543		11,881
Total	$	16,502	$	13,480