Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

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,
	2019			2018			2017
Domestic	$	22,330		$	(55,197	)	$	(7,228	)
Foreign		(48,204	)		8,550			9,824
Total	$	(25,874	)	$	(46,647	)	$	2,596

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for the years ended 2019, 2018 and 2017 consisted of the following (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2019			2018			2017
Current:
Federal	$	—		$	(155	)	$	(155	)
State		655			521			168
Foreign		5,100			4,456			2,332
Total current		5,755			4,822			2,345
Deferred:
Federal		(3,691	)		(6,358	)		3,063
State		(488	)		294			99
Foreign		(1,597	)		1,387			(1,167	)
Total deferred		(5,776	)		(4,677	)		1,995
Provision for income taxes	$	(21	)	$	145		$	4,340

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 (21 percent for fiscal 2019 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,
	2019			2018			2017
Tax at federal statutory rate	$	(5,433	)	$	(13,061	)	$	909
State income tax, net of federal benefit		517			521			168
Release of foreign valuation allowance		(2,794	)		—			—
Release of US valuation allowance – Tax reform		(4,680	)		—			—
Establishment of Irish valuation allowance		8,642			—			—
US valuation allowance change – deferred tax movement		(4,444	)		25,302			3,246
Research and development credits		(6,598	)		(7,311	)		(1,355	)
Foreign earnings taxed at other than U.S. rates		10,562			(1,065	)		(492	)
Stock based compensation		2,436			(5,901	)		(573	)
Goodwill amortization		834			2,004			1,795
Nondeductible officer compensation		713			1,927			470
Nondeductible meals and entertainment		517			510			391
AMT credit monetization		—			(155	)		(155	)
Deferred tax liability release - Tax reform		—			(2,482	)		—
Other		(293	)		(144	)		(64	)
Provision for income taxes	$	(21	)	$	145		$	4,340

Schedule of Deferred Tax Assets and Liabilities

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

	June 30,
	2019			2018			2017
Deferred tax assets:
Net operating loss carry-forwards	$	36,514		$	49,429		$	109,170
Tax credit carry-forwards		54,745			48,093			34,444
Depreciation		2,168			1,422			1,312
Intangible amortization		36,882			35,107			32,919
Deferred revenue, net		1,887			159			3,320
Inventory write-downs		10,277			13,682			11,111
Other allowances and accruals		30,210			25,700			13,002
Stock based compensation		4,114			4,872			3,545
Deferred intercompany gain		3,693			—			—
Other		673			3,219			4,270
Total deferred tax assets		181,163			181,683			213,093
Valuation allowance		(169,343	)		(177,869	)		(212,111	)
Total net deferred tax assets		11,820			3,814			982
Deferred tax liabilities:
Goodwill amortization		(4,904	)		(3,363	)		(6,254	)
Prepaid commissions		(1,585	)		(1,034	)		—
Deferred tax liability on foreign withholdings		(505	)		(357	)		(321	)
Total deferred tax liabilities		(6,994	)		(4,754	)		(6,575	)
Net deferred tax assets (liabilities)	$	4,826		$	(940	)	$	(5,593	)
Recorded as:
Net non-current deferred tax assets		6,783			5,195			983
Net non-current deferred tax liabilities		(1,957	)		(6,135	)		(6,576	)
Net deferred tax assets (liabilities)	$	4,826		$	(940	)	$	(5,593	)

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, 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
Increase related to prior year tax positions		26
Lapse of statute of limitations		(364	)
Balance at June 30, 2019	$	17,168