Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

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,
	2018			2017			2016
				(As adjusted)			(As adjusted)
Domestic	$	(55,197	)	$	(7,228	)	$	(34,271	)
Foreign		8,550			9,824			2,244
Total	$	(46,647	)	$	2,596		$	(32,027	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for fiscal years 2018, 2017 and 2016 consisted of the following (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2018			2017			2016
Current:
Federal	$	(155	)	$	(155	)	$	727
State		521			168			75
Foreign		4,456			2,332			1,793
Total current		4,822			2,345			2,595
Deferred:
Federal		(6,358	)		3,063			1,659
State		294			99			108
Foreign		1,387			(1,167	)		(26	)
Total deferred		(4,677	)		1,995			1,741
Provision for income taxes	$	145		$	4,340		$	4,336

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 (28 percent for fiscal 2018 pursuant to the recently enacted U.S. tax legislation) to income before taxes is explained below (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2018			2017			2016
				(As adjusted)			(As adjusted)
Tax at federal statutory rate	$	(13,061	)	$	909		$	(11,209	)
State income tax, net of federal benefit		521			168			75
Change in valuation allowance		25,302			3,246			9,465
Research and development credits		(7,311	)		(1,355	)		(1,364	)
Foreign earnings taxed at other than U.S. rates		(1,065	)		(492	)		1,678
Stock based compensation		(5,901	)		(573	)		3,564
Goodwill amortization		2,004			1,795			1,672
Nondeductible officer compensation		1,927			470			77
Nondeductible meals and entertainment		510			391			289
AMT credit monetization		(155	)		(155	)		—
Deferred tax liability release - Tax reform		(2,482	)		—			—
Other		(144	)		(64	)		89
Provision for income taxes	$	145		$	4,340		$	4,336

Schedule of Deferred Tax Assets and Liabilities

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

	June 30,
	2018			2017			2016
				(As adjusted)			(As adjusted)
Deferred tax assets:
Net operating loss carry-forwards	$	49,429		$	109,170		$	108,563
Tax credit carry-forwards		48,093			34,444			32,730
Depreciation		1,422			1,312			—
Intangible amortization		35,107			32,919			28,480
Deferred revenue, net		159			3,320			3,190
Inventory write-downs		13,682			11,111			6,207
Other allowances and accruals		25,700			13,002			10,568
Stock based compensation		4,872			3,545			4,048
Other		2,185			4,270			4,275
Total deferred tax assets		180,649			213,093			198,061
Valuation allowance		(177,869	)		(212,111	)		(196,640	)
Total net deferred tax assets		2,780			982			1,421
Deferred tax liabilities:
Depreciation		—			—			(343	)
Goodwill amortization		(3,363	)		(6,254	)		(4,459	)
Deferred tax liability on foreign withholdings		(357	)		(321	)		(235	)
Total deferred tax liabilities		(3,720	)		(6,575	)		(5,037	)
Net deferred tax liabilities	$	(940	)	$	(5,593	)	$	(3,616	)
Recorded as:
Net non-current deferred tax assets	$	5,195		$	983		$	1,077
Net non-current deferred tax liabilities		(6,135	)		(6,576	)		(4,693	)
Net deferred tax liabilities	$	(940	)	$	(5,593	)	$	(3,616	)

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, 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
Decrease related to prior year tax positions		(1,407	)
Balance at June 30, 2018	$	17,506