Business Combinations (Tables)

9 Months Ended

Mar. 31, 2018

Summary of Unaudited Pro Forma Financial Information

The following table summarizes the unaudited pro forma financial information (in thousands, except per share amounts):

	Three Months Ended						Nine Months Ended
	March 31, 2018			March 31, 2017			March 31, 2018			March 31, 2017
				(As adjusted)						(As adjusted)
Net revenues	$	262,004		$	267,176		$	799,044		$	911,611
Net loss	$	(13,613	)	$	(40,235	)	$	(21,235	)	$	(136,207	)
Net loss per share - basic	$	(0.12	)	$	(0.37	)	$	(0.19	)	$	(1.27	)
Net loss per share - diluted	$	(0.12	)	$	(0.37	)	$	(0.19	)	$	(1.27	)
Shares used in per share calculation - basic		115,059			109,213			113,641			107,531
Shares used in per share calculation - diluted		115,059			109,213			113,641			107,531

Data Center Business

Components of Aggregate Estimated Purchase Consideration

The components of aggregate estimated purchase consideration are as follows (in thousands):

Estimated purchase consideration	October 27, 2017
Cash paid to sellers at closing	$	23,000
Deferred payments		18,430
Contingent consideration		34,100
Working capital adjustment		6,534
Replacement of stock-based awards		2,273
Aggregate estimated purchase consideration	$	84,337

Summary of Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed

The following table below summarizes the preliminary allocation as of March 31, 2018 of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

	Preliminary Allocation as of December 31, 2017			Change during three months ended March 31, 2018				Preliminary Allocation as of March 31, 2018
Accounts receivables	$	33,488		$	—			$	33,488
Inventories		19,973			(39	)	(a)		19,934
Prepaid expenses and other current assets		988			—				988
Property and equipment		29,160			—				29,160
Other assets		4,734			—				4,734
Accounts payable and accrued expenses		(15,850	)		113		(b)		(15,737	)
Deferred revenue		(33,519	)		494		(c)		(33,025	)
Net tangible assets acquired		38,974			568				39,542
Identifiable intangible assets		28,600			3,600		(d)		32,200
Goodwill		16,763			(4,168	)			12,595
Total intangible assets acquired		45,363			(568	)			44,795
Total net assets acquired	$	84,337		$	—			$	84,337

The changes during the period in the table above include: a) additional information regarding the existence of inventories and unpaid invoices as of the acquisition date, b) additional information on unpaid invoices as of the acquisition date, c) an adjustment of the fair value of deferred maintenance revenue and d) revised fair value based on adjustments to discount rate used in the models for usefulness of identifiable intangible assets.

Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition

The following table presents details of the identifiable intangible assets acquired as part of the acquisition (dollars in thousands):

Intangible Assets	Estimated Useful Life (in years)		Amount
Developed technology	2 - 5		$	25,400
Customer relationships		5		5,400
Trade names		4		1,400
Total identifiable intangible assets			$	32,200

Campus Fabric Business

Summary of Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed

The following table below summarizes the preliminary allocation as of March 31, 2018 of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

	Preliminary Allocation as of December 31, 2017			Change during three months ended March 31, 2018				Preliminary Allocation as of March 31, 2018
Accounts receivables	$	18,295		$	417		(a)	$	18,712
Inventories		15,545			—				15,545
Prepaid expenses and other current assets		673			(24	)	(b)		649
Property and equipment		3,768			1,638		(c)		5,406
Other assets		5,311			(517	)	(d)		4,794
Accounts payable and accrued expenses		(31,919	)		(395	)	(c)		(32,314	)
Deferred revenue		(10,051	)		1,057		(e)		(8,994	)
Other long-term liabilities		(5,205	)		—				(5,205	)
Net tangible assets acquired		(3,583	)		2,176				(1,407	)
Identifiable intangible assets		46,900			(4,700	)	(f)		42,200
In-process research and development		2,500			100		(f)		2,600
Goodwill		34,009			2,424				36,433
Total intangible assets acquired		83,409			(2,176	)			81,233
Total net assets acquired	$	79,826		$	—			$	79,826

The changes during the period in the table above include: a) additional information on accounts receivable as of the acquisition date, b) additional information on prepaid expenses as of the acquisition date, c) update on preliminary estimate of the fair value of property and equipment which led to an increase, d) an adjustment of the fair value of deferred maintenance revenue and associated deferred cost of revenue, e) additional information on unpaid invoices as of the acquisition date, and f) revised fair value based on revisions to estimated useful life of identifiable intangible assets and in-process research and development acquired.

Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition

The following table presents details of the identifiable intangible assets acquired as part of the acquisition (dollars in thousands):

Intangible Assets	Estimated Useful Life (in years)		Amount
Developed technology	2 - 4		$	32,700
Customer relationships		4		5,100
Trade names	4 - 5			2,600
Backlog		1		1,800
Total identifiable intangible assets			$	42,200

Zebra Technologies Corporation

Summary of Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed

On October 28, 2016, the Company completed its acquisition of the wireless local area network business (“WLAN Business”) from Zebra Technologies Corporation.  Under the terms of the WLAN Asset Purchase Agreement, the Company acquired customers, employees, technology and other assets as well as assumed certain contracts and other liabilities of the WLAN Business, for a net cash consideration to $49.5 million.  The following table below summarizes the final allocation of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

	Final Allocation as of October 28, 2016
Accounts receivables, net	$	14,636
Inventories		13,593
Other current assets		808
Property and equipment		3,159
Other assets		7,634
Deferred revenue		(14,159	)
Other liabilities		(7,201	)
Total tangible assets acquired and liabilities assumed		18,470
Identifiable intangible assets		20,300
In-process research and development		1,400
Goodwill		9,339
Total intangible assets acquired		31,039
Total net assets acquired	$	49,509