Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of Income (Loss) before Income Tax, Domestic and Foreign

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

	Year Ended
	June 30,			June 30,			June 30,
	2022			2021			2020
Domestic	$	(1,204	)	$	(4,194	)	$	(143,651	)
Foreign		53,398			14,379			23,159
Income (loss) before income taxes	$	52,194		$	10,185		$	(120,492	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for the years ended June 30, 2022, 2021 and 2020 consisted of the following (in thousands):

	Year Ended
	June 30,			June 30,		June 30,
	2022			2021		2020
Current:
Federal	$	—		$	—	$	(22	)
State		1,069			1,160		256
Foreign		6,460			5,334		4,597
Total current		7,529			6,494		4,831
Deferred:
Federal		396			324		333
State		227			1,169		44
Foreign		(229	)		262		1,145
Total deferred		394			1,755		1,522
Provision for income taxes	$	7,923		$	8,249	$	6,353

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) to income (loss) before income taxes is explained below (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2022			2021			2020
Tax at federal statutory rate	$	10,960		$	2,139		$	(25,303	)
State income tax, net of federal benefit		844			917			202
Global Intangible Low-Taxed Income (GILTI)		15,470			—			4,094
US valuation allowance change – deferred tax movement		(13,795	)		(9,387	)		2,414
Research and development credits		(3,122	)		(2,423	)		(4,947	)
Tax impact of foreign earnings		(3,762	)		11,979			2,831
Foreign withholding taxes		1,032			828			762
Stock based compensation		(5,011	)		1,162			4,349
Goodwill amortization		525			1,467			331
Nondeductible officer compensation		4,589			1,496			862
Nondeductible meals and entertainment		193			71			364
AMT credit monetization		—			—			(22	)
Gain on transfer of intellectual property		—			—			19,819
Other		—			—			597
Provision for income taxes	$	7,923		$	8,249		$	6,353

Schedule of Deferred Tax Assets and Liabilities

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

	June 30,
	2022			2021			2020
Deferred tax assets:
Net operating loss carry-forwards	$	51,494		$	69,126		$	74,548
Tax credit carry-forwards		70,683			68,003			67,364
Depreciation		2,093			3,113			2,755
Intangible amortization		29,538			35,340			32,642
Deferred revenue		15,928			11,625			7,610
Inventory write-downs		13,121			14,501			13,014
Other allowances and accruals		26,508			28,899			32,318
Stock based compensation		2,746			2,792			3,169
Deferred intercompany gain		3,693			3,693			3,693
Ireland goodwill amortization		5,583			6,303			7,132
Other		244			1,175			888
Total deferred tax assets		221,631			244,570			245,133
Valuation allowance		(209,727	)		(230,588	)		(232,862	)
Total net deferred tax assets		11,904			13,982			12,271
Deferred tax liabilities:
Goodwill amortization		(10,415	)		(8,575	)		(6,691	)
Prepaid commissions		(3,931	)		(3,166	)		(1,958	)
Deferred tax liability on foreign withholdings		(676	)		(578	)		(551	)
Total deferred tax liabilities		(15,022	)		(12,319	)		(9,200	)
Net deferred tax assets	$	(3,118	)	$	1,663		$	3,071
Recorded as:
Net non-current deferred tax assets		4,599			5,491			5,405
Net non-current deferred tax liabilities		(7,717	)		(3,828	)		(2,334	)
Net deferred tax assets	$	(3,118	)	$	1,663		$	3,071

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, 2019	$	17,168
Increase related to prior year tax positions		8,906
Increase related to current year tax positions		44
Decrease related to prior year tax positions		(1,800	)
Lapse of statute of limitations		(421	)
Balance at June 30, 2020		23,897
Decrease related to prior year tax positions		(4,296	)
Increase related to prior year tax positions		28
Increase related to current year tax positions		72
Lapse of statute of limitations		(637	)
Balance at June 30, 2021	$	19,064
Decrease related to prior year tax positions		(34	)
Increase related to prior year tax positions		-
Increase related to current year tax positions		11
Lapse of statute of limitations		(674	)
Balance at June 30, 2022	$	18,367