Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Allowance for Credit Losses on Financing Receivables

The Company estimates and adjusts this allowance at each balance sheet date.

Description	Balance at beginning of period		Charges to costs and expenses		(Deductions)			Balance at end of period
Year Ended July 3, 2012:
Allowance for sales returns	$	645	$	1,013	$	(396	)	$	1,262
Year Ended June 30, 2013:
Allowance for sales returns	$	1,262	$	130	$	(615	)	$	777
Year Ended June 30, 2014:
Allowance for sales returns	$	777	$	3,063	$	(1,140	)	$	2,700

The Company mitigates some collection risk by requiring most of its customers in the Asia-Pacific region, excluding Japan and Australia, to pay cash in advance or secure letters of credit when placing an order with the Company.

Description	Balance at beginning of period		Charges to costs and expenses		(Deductions) (1)			Balance at end of period
Year Ended July 3, 2012:
Allowance for doubtful accounts	$	767	$	127	$	(510	)	$	384
Year Ended June 30, 2013:
Allowance for doubtful accounts	$	384	$	312	$	(221	)	$	475
Year Ended June 30, 2014:
Allowance for doubtful accounts	$	475	$	468	$	(25	)	$	918
(1) Uncollectible accounts written off, net of recoveries

Schedule of Revenue by Major Customers by Reporting Segments

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

	Fiscal Year Ended
	June 30, 2014		June 30, 2013		June 30, 2012
Tech Data Corporation	11	%	10	%	*
Westcon Group Inc.	11	%	16	%	19	%
Scansource, Inc.	*		12	%	13	%
Ericsson AB	*		*		12	%
* Less than 10% of revenue

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

	June 30, 2014		June 30, 2013
Westcon Group Inc.	19	%	25	%
Tech Data Corporation	13	%	*
* Less than 10% of accounts receivable

Cash, Cash Equivalents and Investments

Cash Equivalents, Short-Term Investments and Marketable Securities

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

	June 30
	2014		2013
Cash	$	72,623	$	41,518
Cash equivalents	$	567	$	54,285
Short-term investments	32,692		43,034
Marketable securities	—		66,776
Total available-for-sale	$	33,259	$	164,095
Total cash and available for sale securities	$	105,882	$	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
June 30, 2014
Money market funds	$	567	$	567	$	—	$	—
U.S. corporate debt securities	32,578		32,692		114		—
	$	33,145	$	33,259	$	114	$	—
Classified as:
Cash equivalents	$	567	$	567	$	—	$	—
Short-term investments	32,578		32,692		114		—
Marketable securities	—		—		—		—
	$	33,145	$	33,259	$	114	$	—
June 30, 2013
Money market funds	$	54,285	$	54,285	$	—	$	—
U.S. corporate debt securities	110,078		109,810		126		(394		)
U.S. government agency securities	—		—		—		—
U.S. municipal bonds	—		—		—		—
	$	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 June 30, 2014, by contractual maturity, were as follows (in thousands):

	Amortized Cost		Fair Value
Due in 1 year or less	$	23,512	$	23,598
Due in 1-2 years	6,049		6,070
Due in 2-5 years	3,017		3,024
Total investments in available for sale debt securities	$	32,578	$	32,692

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

The Company did not hold any financial liabilities that required measurement at fair value on a recurring basis. The following table presents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis:

June 30, 2014	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Investments:
Money market funds	$	567	$	—	$	—	$	567
Corporate notes/bonds	—		32,692		—		32,692
Foreign currency forward contracts	—		21		—		21
Total	$	567	$	32,713	$	—	$	33,280

June 30, 2013	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets
Investments:
Municipal bonds	$	—	$	—	$	—	$	—
Federal agency notes	—		—		—		—
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

Property, Plant and Equipment

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

	June 30, 2014			June 30, 2013
Computer equipment	$	27,319		$	29,400
Purchased software	10,859			3,699
Office equipment, furniture and fixtures	28,813			1,506
Leasehold improvements	29,029			11,344
	96,020			45,949
Less: accumulated depreciation and amortization	(49,466		)	(22,305		)
Property and equipment, net	$	46,554		$	23,644

Schedule of Goodwill

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

	Total
Balance as of June 30, 2013	$	—
Addition due to acquisition of Enterasys (Note 2)	70,877
Balance as of June 30, 2014	$	70,877

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, 2014
Developed technology	2.2 years	$	48,000	$	11,028	$	36,972
Customer relationships	2.3 years	37,000		8,222		28,778
Maintenance contracts	4.3 years	17,000		2,267		14,733
Trademarks	2.3 years	2,500		555		1,945
Order backlog	1.3 years	7,400		5,667		1,733
License Agreements	11.2 years	10,447		8,141		2,306
Other Intangibles	4.8 years	2,547		1,555		992
		$	124,894	$	37,435	$	87,459

	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
June 30, 2013
License Agreements	10.3 years	$	10,447	$	7,407	$	3,040
Other Intangibles	5.8 years	2,459		1,256		1,203
Total assets with finite lives		$	12,906	$	8,663	$	4,243

Schedule of Expected Amortization Expense

For the fiscal year ending:
2015	$	35,699
2016	32,281
2017	13,129
2018	3,682
2019	1,415
Thereafter	1,253
Total	$	87,459

Deferred Revenue, by Arrangement, Disclosure

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

	June 30, 2014		June 30, 2013
Deferred services	$	89,657	$	38,003
Deferred product and other revenue	8,020		3,451
Total deferred revenue	97,677		41,454
Less: current portion	74,735		33,184
Non-current deferred revenue, net	$	22,942	$	8,270

Deferred Revenue Roll Forward

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

	Year Ended
	June 30, 2014			June 30, 2013
Balance beginning of period	$	38,003		$	37,461
Assumed from acquisition	35,879			—
New support arrangements	113,412			57,342
Recognition of support revenue	(97,637		)	(56,800		)
Balance end of period	89,657			38,003
Less: current portion	66,715			29,733
Non-current deferred revenue	$	22,942		$	8,270

Schedule of Deferred Distributors Revenue

The following table summarizes deferred distributors revenue, net of cost of sales to distributors at the end of fiscal 2014 and 2013, respectively (in thousands):

	Year Ended
	June 30, 2014			June 30, 2013
Deferred distributors revenue	$	40,715		$	22,411
Deferred cost of sales to distributors	(8,723		)	(5,023		)
Total deferred distributors revenue, net of cost of sales to distributors	$	31,992		$	17,388

Schedule of Debt

The Company's debt is comprised of the following:

	June 30, 2014
Current portion of long-term debt:
Term Loan	$	5,688
Revolving Facility	24,000
Current portion of long-term debt	$	29,688
Long-term debt, less current portion:
Term Loan	$	56,875
Revolving Facility	35,000
Total long-term debt, less current portion	$	91,875
Total debt	$	121,563

Schedule of Product Warranty Liability

The following table summarizes the activity related to the Company’s product warranty liability during fiscal 2014 and fiscal 2013:

	Year ended
	June 30, 2014			June 30, 2013
Balance beginning of period	$	3,296		$	2,871
Assumed from acquisition	3,702			—
New warranties issued	6,225			4,299
Warranty expenditures	(5,672		)	(3,874		)
Balance end of period	$	7,551		$	3,296

Schedule of Other Accrued Liabilities

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

	June 30, 2014		June 30, 2013
Accrued general and administrative costs	$	4,018	$	2,959
Other accrued liabilities	34,017		13,543
Total	$	38,035	$	16,502