Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes is as follows (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2017			2016			2015
Domestic	$	(10,953	)	$	(31,700	)	$	(72,176	)
Foreign		6,776			4,152			5,340
Total	$	(4,177	)	$	(27,548	)	$	(66,836	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for fiscal years 2017, 2016 and 2015 consisted of the following (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2017			2016			2015
Current:
Federal	$	(155	)	$	727		$	476
State		168			75			13
Foreign		2,332			1,793			2,447
Total current		2,345			2,595			2,936
Deferred:
Federal		3,063			1,659			1,507
State		99			108			103
Foreign		(1,167	)		(26	)		261
Total deferred		1,995			1,741			1,871
Provision for income taxes	$	4,340		$	4,336		$	4,807

Schedule of Effective Income Tax Rate Reconciliation

The difference between the provision for income taxes and the amount computed by applying the federal statutory income tax rate (35 percent) to income before taxes is explained below (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2017			2016			2015
Tax at federal statutory rate	$	(1,461	)	$	(9,642	)	$	(23,392	)
State income tax, net of federal benefit		168			75			13
Change in valuation allowance		5,616			7,898			24,408
Research and development credits		(1,355	)		(1,364	)		(303	)
Foreign earnings taxed at other than U.S. rates		(492	)		1,678			(1,113	)
Stock based compensation		(573	)		3,564			2,298
Goodwill amortization		1,795			1,672			1,690
Nondeductible officer compensation		470			77			—
Nondeductible meals and entertainment		391			289			341
AMT credit monetization		(155	)		—			—
Other		(64	)		89			865
Provision for income taxes	$	4,340		$	4,336		$	4,807

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets are as follows (in thousands):

	June 30,
	2017			2016			2015
Deferred tax assets:
Net operating loss carry-forwards	$	109,170		$	108,563		$	114,151
Tax credit carry-forwards		34,444			32,730			30,824
Depreciation		1,312			—			—
Intangible amortization		32,919			28,480			17,978
Deferred revenue (net)		10,612			7,955			7,811
Warrant amortization		—			—			1,355
Inventory write-downs		11,111			6,207			6,048
Other allowances and accruals		13,002			10,568			8,645
Stock based compensation		3,545			4,048			6,783
Other		4,270			4,275			5,902
Total deferred tax assets		220,385			202,826			199,497
Valuation allowance		(219,403	)		(201,405	)		(197,576	)
Total net deferred tax assets		982			1,421			1,921
Deferred tax liabilities:
Depreciation		—			(343	)		(707	)
Goodwill amortization		(6,254	)		(4,459	)		(2,787	)
Foreign exchange gain		—			—			—
Deferred tax liability on foreign withholdings		(321	)		(235	)		(194	)
Total deferred tax liabilities		(6,575	)		(5,037	)		(3,688	)
Net deferred tax assets (liabilities)	$	(5,593	)	$	(3,616	)	$	(1,767	)
Recorded as:
Net current deferred tax assets	$	—		$	—		$	760
Net non-current deferred tax assets		982			1,077			452
Net non-current deferred tax liabilities		(6,575	)		(4,693	)		(2,979	)
Net deferred tax assets (liabilities)	$	(5,593	)	$	(3,616	)	$	(1,767	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows (in thousands):

Balance at June 30, 2014	$	11,600
Decrease related to prior year tax positions		(225	)
Increase related to prior year tax positions		288
Increase related to current year tax positions		254
Lapse of statute of limitations		(158	)
Settlements with tax authorities		(400	)
Balance at June 30, 2015		11,359
Increase related to prior year tax positions		174
Lapse of statute of limitations		120
Balance at June 30, 2016		11,653
Increase related to prior year tax positions		7,180
Increase related to current year tax positions		233
Lapse of statute of limitations		(153	)
Balance at June 30, 2017	$	18,913