Business Combinations (Tables)

12 Months Ended

Jun. 30, 2018

Summary of Unaudited Pro Forma Financial Information

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

	Year Ended
	June 30, 2018			June 30, 2017
Net revenues	$	1,076,988		$	1,205,696
Net loss	$	(27,007	)	$	(143,835	)
Net loss per share - basic	$	(0.24	)	$	(1.33	)
Net loss per share - diluted	$	(0.24	)	$	(1.33	)
Shares used in per share calculation - basic		114,221			108,273
Shares used in per share calculation - diluted		114,221			108,273

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

The purchase price allocation as of the Data Center Business Closing Date is set forth in the table below and reflects fair values. The fair values were determined through established and generally accepted valuation techniques, including work performed by third-party valuation specialists.  All valuations were considered finalized as of June 30, 2018 (in thousands):

	Preliminary Allocation as of October 28, 2017			Adjustments				Final Allocation as of June 30, 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			(10,222	)	(b)		18,938
Other assets		4,734			—				4,734
Accounts payable and accrued expenses		(15,850	)		(644	)	(c)		(16,494	)
Deferred revenue		(33,519	)		494		(d)		(33,025	)
Net tangible assets acquired		38,974			(10,411	)			28,563
Identifiable intangible assets		28,600			4,200		(e)		32,800
Goodwill		16,763			6,211				22,974
Total intangible assets acquired		45,363			10,411				55,774
Total net assets acquired	$	84,337		$	—			$	84,337

The changes during the measurement period in the table above include: a) finalization of the fair value of existing inventories as of the acquisition date, b) finalization of valuation of assets acquired with limited future use as of the acquisition date, c) identification of additional unpaid invoices existing as of the acquisition date, d) finalization of future cash flows related to deferred revenue contracts and, e) finalization of adjustments to discount rate and future cash flows.  

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		$	26,000
Customer relationships		4		5,400
Trade names		4		1,400
Total identifiable intangible assets			$	32,800

Campus Fabric Business

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

The following table below summarizes the final allocation as of June 30, 2018 of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

	Preliminary Allocation as of July 14, 2017			Adjustments				Final Allocation as of June 30, 2018
Accounts receivables	$	18,112		$	1,415		(a)	$	19,527
Inventories		16,605			(2,440	)	(g)(h)(k)		14,165
Prepaid expenses and other current assets		673			(433	)	(b)		240
Property and equipment		3,768			1,638		(c)		5,406
Other assets		2,568			4,441		(d)(h)		7,009
Accounts payable and accrued expenses		(29,716	)		(1,954	)	(e)(i)(j)		(31,670	)
Deferred revenue		(10,214	)		1,220		(d)(i)		(8,994	)
Other long-term liabilities		(6,608	)		759		(j)		(5,849	)
Net tangible assets acquired		(4,812	)		4,646				(166	)
Identifiable intangible assets		44,000			(2,700	)	(f)		41,300
In-process research and development		2,300			100		(f)		2,400
Goodwill		38,338			(2,446	)			35,892
Total intangible assets acquired		84,638			(5,046	)			79,592
Total net assets acquired	$	79,826		$	(400	)		$	79,426

Adjustments to the preliminary allocation as of the Closing Date through the final allocation during the measurement period as reflected in the table above include: a) identification of additional accounts receivable that existed as of the acquisition date, b) additional information on existing prepaid expenses as of the acquisition date, c) identification of additional property and equipment, d) adjustment to future cash flows of remaining performance obligations of certain customer contracts as of the acquisition date, e) identification of additional unpaid invoices as of the acquisition date, and f) finalization of adjustments to discount rate and future cash flows, g) additional receipts of inventory from Avaya pertaining to the Campus Fabric Business, h) reclassification of service parts to other assets, i) reclassification from deferred revenue to accounts payable, j) reclassification of long-term liabilities to short-term liabilities assumed, and k) adjustments to purchase consideration based on working capital settlement specifically related to inventory that could not be located.

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		$	31,800
Customer relationships		4		5,100
Trade names	4 - 5			2,600
Backlog		1		1,800
Total identifiable intangible assets			$	41,300

Zebra Technologies Corporation

Summary of Final 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 of $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