Balance Sheet Accounts (Tables)

9 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash, Cash Equivalents, Short-Term Investments and Marketable Securities

Cash, Cash Equivalents, Short-Term Investments and Marketable Securities

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

	March 31, 2014		June 30, 2013
Cash	$	70,668	$	41,518
Cash equivalents	$	687	$	54,285
Short-term investments	34,700		43,034
Marketable securities	—		66,776
Total available-for-sale	$	35,387	$	164,095
Total cash, cash equivalents and available for sale securities	$	106,055	$	205,613

Available-for-sale Securities

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
March 31, 2014
Money market funds	$	687	$	687	$	—	$	—
U.S. corporate debt securities	34,579		34,700		121		—
	$	35,266	$	35,387	$	121	$	—
Classified as:
Cash equivalents	$	687	$	687	$	—	$	—
Short-term investments	34,579		34,700		121		—
	$	35,266	$	35,387	$	121	$	—
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	)

The amortized cost and estimated fair value of available-for-sale investments in debt securities at March 31, 2014, by contractual maturity, were as follows (in thousands):

	Amortized Cost		Fair Value
Due in 1 year or less	$	24,697	$	24,803
Due in 1-2 years	7,553		7,568
Due in 2-5 years	3,016		3,016
Total investments in available for sale debt securities	$	35,266	$	35,387

Schedule of Goodwill

The following table reflects the changes in the carrying amount of goodwill (in thousands):

	Total
Balance as of September 30, 2013	$	—
Addition due to acquisition of Enterasys (Note 4)	57,922
Balance as of December 31, 2013	$	57,922
Purchase price allocation adjustments	6,615
Balance as of March 31, 2014	$	64,537

Schedule of Indefinite-Lived Intangible Assets

The following tables present details of the Company’s intangible assets (in thousands):

March 31, 2014	Weighted average remaining amortization period	Gross		Accumulated amortization		Net
Intangible assets with finite lives:
Developed technology	2.4 years	$	45,000	$	6,736	$	38,264
Customer relationships	2.6 years	37,000		5,139		31,861
Maintenance contracts	4.6 years	17,000		1,417		15,583
Trademarks	2.6 years	2,500		347		2,153
Order backlog	1.0 year	7,400		4,542		2,858
License agreements	10.9 years	10,447		7,971		2,476
Other intangibles	5.2 years	2,459		1,449		1,010
Total intangible assets with finite lives		121,806		27,601		94,205
In-process research and development, with indefinite life		3,000		—		3,000
Total		$	124,806	$	27,601	$	97,205

Schedule of Finite-Lived Intangible Assets

The following tables present details of the Company’s intangible assets (in thousands):

March 31, 2014	Weighted average remaining amortization period	Gross		Accumulated amortization		Net
Intangible assets with finite lives:
Developed technology	2.4 years	$	45,000	$	6,736	$	38,264
Customer relationships	2.6 years	37,000		5,139		31,861
Maintenance contracts	4.6 years	17,000		1,417		15,583
Trademarks	2.6 years	2,500		347		2,153
Order backlog	1.0 year	7,400		4,542		2,858
License agreements	10.9 years	10,447		7,971		2,476
Other intangibles	5.2 years	2,459		1,449		1,010
Total intangible assets with finite lives		121,806		27,601		94,205
In-process research and development, with indefinite life		3,000		—		3,000
Total		$	124,806	$	27,601	$	97,205

June 30, 2013	Weighted average remaining amortization period	Gross	Accumulated amortization	Net
Intangible assets with finite lives:
License agreements	10.3 years	10,447	7,407	3,040
Other intangibles	5.8 years	2,459	1,256	1,203
Total intangible assets with finite lives		12,906	8,663	4,243

Future Amortization Expense

The estimated future amortization expense for finite lived intangibles to be recorded for each of the next five years is as follows (in thousands):

Fiscal year	Amount
2014 (remaining 3 months)	$	9,540
2015	34,648
2016	31,286
2017	12,379
2018	3,682
2019	1,415
Thereafter	1,255
Total	$	94,205

Schedule of Deferred Revenue, Net

The following table summarizes deferred revenue, net at March 31, 2014 and June 30, 2013, respectively (in thousands):

	March 31, 2014		June 30, 2013
Deferred services	$	84,206	$	38,003
Deferred product and other revenue	6,644		3,451
Total deferred revenue	90,850		41,454
Less: current portion	71,183		33,184
Non-current deferred revenue, net	$	19,667	$	8,270

Change in Deferred Support Revenue

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

	Three Months Ended						Nine Months Ended
	March 31, 2014			March 31, 2013			March 31, 2014			March 31, 2013
Balance beginning of period	$	81,485		$	35,797		$	38,003		$	37,461
Assumed from acquisition	—			—			35,879			—
New support arrangements	30,986			14,431			77,475			41,745
Recognition of support revenue	(28,265		)	(13,420		)	(67,151		)	(42,398		)
Balance end of period	84,206			36,808			84,206			36,808
Less: current portion	64,539			28,801			64,539			28,801
Non-current deferred revenue	$	19,667		$	8,007		$	19,667		$	8,007

Schedule of Deferred Distributors Revenue

The following table summarizes deferred distributors revenue, net of cost of sales to distributors at March 31, 2014 and June 30, 2013, respectively (in thousands):

	March 31, 2014			June 30, 2013
Deferred distributors revenue	$	31,070		$	22,411
Deferred cost of sales to distributors	(6,853		)	(5,023		)
Deferred distributors revenue, net of cost of sales to distributors	$	24,217		$	17,388

Schedule of Debt

The Company's debt is comprised of the following:

	March 31, 2014
Current portion of long-term debt:
Term Loan	4,875
Revolving Facility	24,000
Current portion of long-term debt	28,875
Long-term debt, less current portion:
Term Loan	58,500
Revolving Facility	35,000
Total long-term debt, less current portion	93,500
Total debt	122,375

Schedule of Product Warranty Liability

The following table summarizes the activity related to the Company’s product warranty liability during the three and nine months ended March 31, 2014 and 2013:

	Three Months Ended						Nine Months Ended
	March 31, 2014			March 31, 2013			March 31, 2014			March 31, 2013
Balance beginning of period	$	7,479		$	2,971		$	3,296		$	2,871
Assumed from acquisition	—			—			3,732			—
New warranties issued	1,824			1,257			4,782			4,761
Warranty expenditures	(1,478		)	(1,332		)	(3,985		)	(4,736		)
Balance end of period	$	7,825		$	2,896		$	7,825		$	2,896

Schedules of Concentration of Risk, by Risk Factor

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

	Three Months Ended				Nine Months Ended
	March 31, 2014		March 31, 2013		March 31, 2014		March 31, 2013
Tech Data	16	%	11	%	12	%	*
Westcon Group Inc.	14	%	19	%	13	%	10	%
Scansource, Inc.	*		10	%	*		*
* Less than 10% of revenue