x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 20-1303994 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer | ¨ | Accelerated filer | x | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 6. | ||
December 31, 2016 | July 2, 2016 | ||||||
(Thousands, except par value) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 222,796 | $ | 95,929 | |||
Restricted cash | 715 | 715 | |||||
Short-term investments | 19,948 | — | |||||
Accounts receivable, net of allowances for doubtful accounts of $1,641 and $1,674 as of December 31, 2016 and July 2, 2016, respectively | 107,513 | 93,571 | |||||
Inventories | 82,313 | 76,369 | |||||
Prepaid expenses and other current assets | 33,183 | 23,591 | |||||
Total current assets | 466,468 | 290,175 | |||||
Property and equipment, net | 81,402 | 65,045 | |||||
Other intangible assets, net | 986 | 1,498 | |||||
Other non-current assets | 2,364 | 2,331 | |||||
Total assets | $ | 551,220 | $ | 359,049 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 82,167 | $ | 71,201 | |||
Accrued expenses and other liabilities | 40,358 | 34,818 | |||||
Capital lease obligations, current | 2,425 | 3,753 | |||||
Total current liabilities | 124,950 | 109,772 | |||||
Deferred gain on sale-leaseback | 5,938 | 6,809 | |||||
Convertible notes payable | — | 62,058 | |||||
Capital lease obligations, non-current | 1,579 | 2,105 | |||||
Other non-current liabilities | 10,502 | 11,694 | |||||
Total liabilities | 142,969 | 192,438 | |||||
Commitments and contingencies (Note 7) | |||||||
Stockholders’ equity: | |||||||
Preferred stock: 1,000 shares authorized; none issued and outstanding | — | — | |||||
Common stock: $0.01 par value per share; 275,000 shares authorized; 166,485 shares issued and outstanding at December 31, 2016 and 112,207 shares issued and outstanding at July 2, 2016 | 1,665 | 1,122 | |||||
Additional paid-in capital | 1,681,999 | 1,471,280 | |||||
Accumulated other comprehensive income | 36,581 | 39,821 | |||||
Accumulated deficit | (1,311,994 | ) | (1,345,612 | ) | |||
Total stockholders’ equity | 408,251 | 166,611 | |||||
Total liabilities and stockholders’ equity | $ | 551,220 | $ | 359,049 |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, 2016 | December 26, 2015 | December 31, 2016 | December 26, 2015 | ||||||||||||
(Thousands, except per share amounts) | |||||||||||||||
Revenues | $ | 153,914 | $ | 94,129 | $ | 289,406 | $ | 181,679 | |||||||
Cost of revenues | 93,150 | 67,521 | 182,286 | 132,374 | |||||||||||
Gross profit | 60,764 | 26,608 | 107,120 | 49,305 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 13,758 | 11,075 | 26,865 | 22,020 | |||||||||||
Selling, general and administrative | 13,355 | 12,791 | 28,147 | 25,999 | |||||||||||
Amortization of other intangible assets | 241 | 250 | 485 | 501 | |||||||||||
Restructuring, acquisition and related (income) expense, net | 82 | 6 | 393 | 38 | |||||||||||
(Gain) loss on sale of property and equipment | (74 | ) | (46 | ) | (111 | ) | 167 | ||||||||
Total operating expenses | 27,362 | 24,076 | 55,779 | 48,725 | |||||||||||
Operating income | 33,402 | 2,532 | 51,341 | 580 | |||||||||||
Other income (expense): | |||||||||||||||
Interest income (expense), net | 70 | (1,247 | ) | (13,788 | ) | (2,523 | ) | ||||||||
Gain (loss) on foreign currency transactions, net | (3,324 | ) | (500 | ) | (3,842 | ) | 4 | ||||||||
Other income (expense), net | 156 | 357 | 350 | 470 | |||||||||||
Total other income (expense) | (3,098 | ) | (1,390 | ) | (17,280 | ) | (2,049 | ) | |||||||
Income (loss) before income taxes | 30,304 | 1,142 | 34,061 | (1,469 | ) | ||||||||||
Income tax provision | 37 | 985 | 443 | 1,884 | |||||||||||
Net income (loss) | $ | 30,267 | $ | 157 | $ | 33,618 | $ | (3,353 | ) | ||||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | 0.18 | $ | 0.00 | $ | 0.23 | $ | (0.03 | ) | ||||||
Diluted | $ | 0.18 | $ | 0.00 | 0.21 | (0.03 | ) | ||||||||
Shares used in computing net income (loss) per share: | |||||||||||||||
Basic | 165,822 | 110,296 | 149,151 | 109,877 | |||||||||||
Diluted | 168,856 | 112,394 | 159,801 | 109,877 |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, 2016 | December 26, 2015 | December 31, 2016 | December 26, 2015 | ||||||||||||
(Thousands) | |||||||||||||||
Net income (loss) | $ | 30,267 | $ | 157 | $ | 33,618 | $ | (3,353 | ) | ||||||
Other comprehensive income (loss): | |||||||||||||||
Unrealized gain on marketable securities | 5 | — | 5 | — | |||||||||||
Currency translation adjustments | (3,799 | ) | (596 | ) | (3,245 | ) | (2,479 | ) | |||||||
Pension adjustments | — | — | — | (10 | ) | ||||||||||
Total comprehensive income (loss) | $ | 26,473 | $ | (439 | ) | $ | 30,378 | $ | (5,842 | ) |
Six Months Ended | |||||||
December 31, 2016 | December 26, 2015 | ||||||
(Thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 33,618 | $ | (3,353 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Amortization of deferred gain on sale-leaseback | (370 | ) | (441 | ) | |||
Amortization of debt discount and issuance costs in connection with convertible notes payable | 102 | 406 | |||||
Depreciation and amortization | 10,168 | 8,040 | |||||
Interest make-whole charge and induced conversion expense related to convertible notes | 8,463 | — | |||||
Stock-based compensation expense | 5,032 | 4,367 | |||||
Other non-cash adjustments | (112 | ) | 167 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (17,067 | ) | (4,268 | ) | |||
Inventories | (11,517 | ) | (6,355 | ) | |||
Prepaid expenses and other current assets | (12,042 | ) | 1,734 | ||||
Other non-current assets | (207 | ) | 296 | ||||
Accounts payable | 8,489 | 1,930 | |||||
Accrued expenses and other liabilities | 8,585 | 5,479 | |||||
Net cash provided by operating activities | 33,142 | 8,002 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (23,030 | ) | (6,632 | ) | |||
Purchases of short-term investments | (19,953 | ) | — | ||||
Transfer from restricted cash | — | 1,555 | |||||
Net cash used in investing activities | (42,983 | ) | (5,077 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from the exercise of stock options | 2,587 | 133 | |||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (2,518 | ) | (554 | ) | |||
Proceeds from the sale of common stock in connection with public offering, net of expenses | 135,153 | — | |||||
Payments on capital lease obligations | (1,493 | ) | (1,468 | ) | |||
Net cash provided by (used in) financing activities | 133,729 | (1,889 | ) | ||||
Effect of exchange rate on cash and cash equivalents | 2,979 | 1,182 | |||||
Net increase in cash and cash equivalents | 126,867 | 2,218 | |||||
Cash and cash equivalents at beginning of period | 95,929 | 111,840 | |||||
Cash and cash equivalents at end of period | $ | 222,796 | $ | 114,058 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for interest make-whole and induced conversion charges related to the exercise of convertible notes | $ | 4,700 | $ | — | |||
Supplemental disclosures of non-cash transactions: | |||||||
Issuance of common stock in exchange for the net carrying value of the liability component of convertible notes | $ | 62,125 | $ | — | |||
Purchases of property and equipment funded by accounts payable | $ | 9,359 | $ | 6,099 |
December 31, 2016 | July 2, 2016 | ||||||
(Thousands) | |||||||
Cash and cash equivalents: | |||||||
Cash-in-bank | $ | 49,806 | $ | 70,925 | |||
Money market funds | 157,627 | 25,004 | |||||
Commercial paper | 11,489 | — | |||||
Corporate bonds | 3,874 | — | |||||
$ | 222,796 | $ | 95,929 | ||||
Short-term investments: | |||||||
Commercial paper | $ | 15,947 | $ | — | |||
Corporate bonds | 4,001 | — | |||||
$ | 19,948 | $ | — |
December 31, 2016 | July 2, 2016 | ||||||
(Thousands) | |||||||
Inventories: | |||||||
Raw materials | $ | 26,649 | $ | 23,751 | |||
Work-in-process | 32,458 | 32,819 | |||||
Finished goods | 23,206 | 19,799 | |||||
$ | 82,313 | $ | 76,369 |
December 31, 2016 | July 2, 2016 | ||||||
(Thousands) | |||||||
Property and equipment, net: | |||||||
Buildings and improvements | $ | 9,787 | $ | 10,389 | |||
Plant and machinery | 73,064 | 59,696 | |||||
Fixtures, fittings and equipment | 2,904 | 3,005 | |||||
Computer equipment | 9,016 | 9,846 | |||||
94,771 | 82,936 | ||||||
Less: Accumulated depreciation | (13,369 | ) | (17,891 | ) | |||
$ | 81,402 | $ | 65,045 |
Core and Current Technology | Development and Supply Agreements | Customer Relationships | Patent Portfolio | Other Intangibles | Amortization | Total | |||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||
Balance at July 2, 2016 | $ | 6,249 | $ | 4,509 | $ | 2,402 | $ | 915 | $ | 3,338 | $ | (15,915 | ) | $ | 1,498 | ||||||||||||
Amortization | — | — | — | — | — | (485 | ) | (485 | ) | ||||||||||||||||||
Translations and adjustments | — | (27 | ) | — | — | — | — | (27 | ) | ||||||||||||||||||
Balance at December 31, 2016 | $ | 6,249 | $ | 4,482 | $ | 2,402 | $ | 915 | $ | 3,338 | $ | (16,400 | ) | $ | 986 |
December 31, 2016 | July 2, 2016 | ||||||
(Thousands) | |||||||
Accrued expenses and other liabilities: | |||||||
Trade payables | $ | 8,831 | $ | 6,429 | |||
Compensation and benefits related accruals | 15,260 | 14,038 | |||||
Warranty accrual | 4,560 | 3,827 | |||||
Accrued restructuring, current | — | 204 | |||||
Purchase commitments in excess of future demand, current | 2,625 | 1,723 | |||||
Other accruals | 9,094 | 8,597 | |||||
$ | 40,370 | $ | 34,818 |
December 31, 2016 | July 2, 2016 | ||||||
(Thousands) | |||||||
Accumulated other comprehensive income: | |||||||
Currency translation adjustments | $ | 36,939 | $ | 40,184 | |||
Unrealized gain on marketable securities | 5 | — | |||||
Japan defined benefit plan | (363 | ) | (363 | ) | |||
$ | 36,581 | $ | 39,821 |
Level 1- | Quoted prices in active markets for identical assets or liabilities. |
Level 2- | Inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices of identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets), or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Level 3- | Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Fair Value Measurement at December 31, 2016 Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(Thousands) | |||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents: (1) | |||||||||||||||
Money market funds | $ | 157,627 | $ | — | $ | — | $ | 157,627 | |||||||
Commercial paper | — | 11,489 | — | 11,489 | |||||||||||
Corporate bonds | — | 3,873 | — | 3,873 | |||||||||||
Short-term investments: | |||||||||||||||
Commercial paper | — | 15,947 | — | 15,947 | |||||||||||
Corporate bonds | — | 4,001 | — | 4,001 | |||||||||||
Restricted cash: | |||||||||||||||
Money market funds | 712 | — | — | 712 | |||||||||||
Total assets measured at fair value | $ | 158,339 | $ | 35,310 | $ | — | $ | 193,649 |
(1) | Excludes $49.8 million in cash held in our bank accounts at December 31, 2016. |
Fair Value Measurement at July 2, 2016 Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(Thousands) | |||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents: (1) | |||||||||||||||
Money market funds | $ | 25,004 | $ | — | $ | — | $ | 25,004 | |||||||
Restricted cash: | |||||||||||||||
Money market funds | 712 | — | — | 712 | |||||||||||
Total assets measured at fair value | $ | 25,716 | $ | — | $ | — | $ | 25,716 |
(1) | Excludes $70.9 million in cash held in our bank accounts at July 2, 2016. |
• | On August 8, 2016, we entered into a privately negotiated agreement pursuant to which we (i) issued 12,051,282 shares of our common stock, and (ii) made a cash payment equal to $4.7 million during August 2016 in exchange for approximately $23.5 million aggregate principal amount of our 6.00% Notes. |
• | On August 9, 2016, we entered into privately negotiated agreements pursuant to which we agreed to issue (i) an aggregate of 20,564,101 shares of our common stock, plus (ii) a to be determined number of additional shares of our common stock based on certain formulaic consideration in exchange for $40.1 million aggregate principal amount of our 6.00% Notes. On August 12, 2016, including the additional shares of common stock, we issued an aggregate of 21,852,477 shares of our common stock. |
• | On August 18, 2016, we entered into privately negotiated agreements, pursuant to which, on August 22, 2016, we issued an aggregate of 756,213 shares of our common stock, in exchange for $1.4 million aggregate principal amount of our 6.00% Notes. |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, 2016 | December 26, 2015 | December 31, 2016 | December 26, 2015 | ||||||||||||
(Thousands) | |||||||||||||||
Service cost | $ | 152 | $ | 122 | $ | 324 | $ | 244 | |||||||
Interest cost | 1 | 11 | 2 | 21 | |||||||||||
Net periodic pension costs | $ | 153 | $ | 133 | $ | 326 | $ | 265 |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, 2016 | December 26, 2015 | December 31, 2016 | December 26, 2015 | ||||||||||||
(Thousands) | |||||||||||||||
Warranty provision—beginning of period | $ | 4,600 | $ | 3,168 | $ | 3,827 | $ | 2,932 | |||||||
Warranties issued | 437 | 353 | 1,542 | 857 | |||||||||||
Warranties utilized or expired | (371 | ) | (435 | ) | (655 | ) | (688 | ) | |||||||
Currency translation and other adjustments | (106 | ) | 11 | (154 | ) | (4 | ) | ||||||||
Warranty provision—end of period | $ | 4,560 | $ | 3,097 | $ | 4,560 | $ | 3,097 |
Capital Leases | |||
(Thousands) | |||
Fiscal Year Ending: | |||
2017 (remaining) | $ | 1,641 | |
2018 | 1,172 | ||
2019 | 569 | ||
2020 | 604 | ||
2021 | 276 | ||
Thereafter | 13 | ||
Total minimum lease payments | 4,275 | ||
Less amount representing interest | (271 | ) | |
Present value of capitalized payments | 4,004 | ||
Less: current portion | (2,425 | ) | |
Long-term portion | $ | 1,579 |
Shares Available For Grant | Stock Options / SARs Outstanding | Weighted- Average Exercise Price | Time and Performance-based Restricted Stock Awards / Units Outstanding | Weighted- Average Grant Date Fair Value | ||||||||||||
(Thousands) | (Thousands) | (Thousands) | ||||||||||||||
Balance at July 2, 2016 | 12,824 | 2,975 | $ | 7.03 | 5,022 | $ | 2.67 | |||||||||
Increase in share reserve | 6,000 | — | — | — | — | |||||||||||
Granted | (5,221 | ) | — | — | 3,729 | 6.33 | ||||||||||
Exercised or released | — | (504 | ) | 5.10 | (2,388 | ) | 2.45 | |||||||||
Forfeited or expired | 287 | (62 | ) | 15.50 | (80 | ) | 4.63 | |||||||||
Balance at December 31, 2016 | 13,890 | 2,409 | $ | 7.19 | 6,283 | $ | 4.90 |
Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
(Thousands) | (Years) | (Thousands) | ||||||||||
Options and SARs exercisable | 2,269 | $ | 7.49 | 3.2 | $ | 6,848 | ||||||
Options and SARs outstanding | 2,409 | $ | 7.19 | 3.4 | $ | 7,768 |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, 2016 | December 26, 2015 | December 31, 2016 | December 26, 2015 | ||||||||||||
(Thousands) | |||||||||||||||
Stock-based compensation by category of expense: | |||||||||||||||
Cost of revenues | $ | 462 | $ | 472 | $ | 751 | $ | 928 | |||||||
Research and development | 526 | 491 | 983 | 915 | |||||||||||
Selling, general and administrative | 1,601 | 1,580 | 3,298 | 2,524 | |||||||||||
$ | 2,589 | $ | 2,543 | $ | 5,032 | $ | 4,367 | ||||||||
Stock-based compensation by type of award: | |||||||||||||||
Stock options | $ | 32 | $ | 53 | $ | 70 | $ | 115 | |||||||
Restricted stock awards | 2,612 | 2,535 | 5,203 | 4,296 | |||||||||||
Inventory adjustment to cost of revenues | (55 | ) | (45 | ) | (241 | ) | (44 | ) | |||||||
$ | 2,589 | $ | 2,543 | $ | 5,032 | $ | 4,367 |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, 2016 | December 26, 2015 | December 31, 2016 | December 26, 2015 | ||||||||||||
(Thousands, except per share amounts) | |||||||||||||||
Net income (loss) | $ | 30,267 | $ | 157 | $ | 33,618 | $ | (3,353 | ) | ||||||
Weighted-average shares - Basic | 165,822 | 110,296 | 149,151 | 109,877 | |||||||||||
Effect of dilutive potential common shares from: | |||||||||||||||
Stock options and stock appreciation rights | 752 | 82 | 724 | — | |||||||||||
Restricted stock units and awards | 2,282 | 2,016 | 2,420 | — | |||||||||||
Convertible notes | — | — | 7,506 | — | |||||||||||
Weighted-average shares - Diluted | 168,856 | 112,394 | 159,801 | 109,877 | |||||||||||
Basic net income (loss) per share | $ | 0.18 | $ | — | $ | 0.23 | $ | (0.03 | ) | ||||||
Diluted net income (loss) per share | $ | 0.18 | $ | — | $ | 0.21 | $ | (0.03 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, 2016 | December 26, 2015 | December 31, 2016 | December 26, 2015 | ||||||||||||
(Thousands) | |||||||||||||||
Asia-Pacific: | |||||||||||||||
China | $ | 63,927 | $ | 35,179 | $ | 122,669 | $ | 68,235 | |||||||
Thailand | 32,184 | 403 | 54,130 | 763 | |||||||||||
Malaysia | 5,377 | 8,307 | 11,704 | 16,160 | |||||||||||
Other Asia-Pacific | 3,028 | 903 | 6,364 | 1,915 | |||||||||||
Total Asia-Pacific | $ | 104,516 | $ | 44,792 | $ | 194,867 | $ | 87,073 | |||||||
Americas: | |||||||||||||||
United States | 17,281 | 16,916 | 31,742 | 29,967 | |||||||||||
Mexico | 8,068 | 14,196 | 17,359 | 26,534 | |||||||||||
Other Americas | 6,211 | 1,821 | 8,213 | 2,975 | |||||||||||
Total Americas | $ | 31,560 | $ | 32,933 | $ | 57,314 | $ | 59,476 | |||||||
EMEA: | |||||||||||||||
Italy | 6,718 | 6,818 | 16,024 | 13,889 | |||||||||||
Germany | 3,088 | 4,010 | 6,377 | 8,952 | |||||||||||
Other EMEA | 6,084 | 4,232 | 11,346 | 9,323 | |||||||||||
Total EMEA | $ | 15,890 | $ | 15,060 | 33,747 | 32,164 | |||||||||
Japan | $ | 1,948 | $ | 1,344 | 3,478 | 2,966 | |||||||||
Total revenues | $ | 153,914 | $ | 94,129 | $ | 289,406 | $ | 181,679 |
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, 2016 | December 26, 2015 | December 31, 2016 | December 26, 2015 | ||||||||||||
(Thousands) | |||||||||||||||
100 Gb/s transmission modules | $ | 113,835 | $ | 49,554 | $ | 211,606 | $ | 90,382 | |||||||
40 Gb/s and lower transmission modules | 40,079 | 44,575 | 77,800 | 91,297 | |||||||||||
$ | 153,914 | $ | 94,129 | $ | 289,406 | $ | 181,679 |
• | On August 8, 2016, we entered into a privately negotiated agreement pursuant to which we (i) issued 12,051,282 shares of our common stock, par value $0.01 per share, and (ii) made a cash payment equal to $4.7 million during August 2016 in exchange for approximately $23.5 million aggregate principal amount of our 6.00% Notes. |
• | On August 9, 2016, we entered into privately negotiated agreements pursuant to which we agreed to issue (i) an aggregate of 20,564,101 shares of our common stock, plus (ii) a to be determined number of additional shares of our common stock based on certain formulaic consideration in exchange for $40.1 million aggregate principal amount of our 6.00% Notes. On August 12, 2016, including the additional shares of common stock, we issued an aggregate of 21,852,477 shares of our common stock. |
• | On August 18, 2016, we entered into privately negotiated agreements, pursuant to which, on August 22, 2016, we issued an aggregate of 756,213 shares of our common stock, in exchange for $1.4 million aggregate principal amount of our 6.00% Notes. |
Three Months Ended | Increase | ||||||||||||||||||||
December 31, 2016 | December 26, 2015 | Change | (Decrease) | ||||||||||||||||||
(Thousands) | % | (Thousands) | % | (Thousands) | % | ||||||||||||||||
Revenues | $ | 153,914 | 100.0 | $ | 94,129 | 100.0 | $ | 59,785 | 63.5 | ||||||||||||
Cost of revenues | 93,150 | 60.5 | 67,521 | 71.7 | 25,629 | 38.0 | |||||||||||||||
Gross profit | 60,764 | 39.5 | 26,608 | 28.3 | 34,156 | 128.4 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||
Research and development | 13,758 | 8.9 | 11,075 | 11.8 | 2,683 | 24.2 | |||||||||||||||
Selling, general and administrative | 13,355 | 8.7 | 12,791 | 13.6 | 564 | 4.4 | |||||||||||||||
Amortization of other intangible assets | 241 | 0.2 | 250 | 0.3 | (9 | ) | (3.6 | ) | |||||||||||||
Restructuring, acquisition and related (income) expense, net | 82 | 0.1 | 6 | — | 76 | 1,266.7 | |||||||||||||||
Gain on sale of property and equipment | (74 | ) | (0.1 | ) | (46 | ) | — | (28 | ) | 60.9 | |||||||||||
Total operating expenses | 27,362 | 17.8 | 24,076 | 25.6 | 3,286 | 13.6 | |||||||||||||||
Operating income | 33,402 | 21.7 | 2,532 | 2.7 | 30,870 | 1,219.2 | |||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest income (expense), net | 70 | 0.1 | (1,247 | ) | (1.3 | ) | 1,317 | n/m | (1) | ||||||||||||
Gain (loss) on foreign currency transactions, net | (3,324 | ) | (2.2 | ) | (500 | ) | (0.5 | ) | (2,824 | ) | 564.8 | ||||||||||
Other income (expense), net | 156 | 0.1 | 357 | 0.4 | (201 | ) | (56.3 | ) | |||||||||||||
Total other income (expense) | (3,098 | ) | (2.0 | ) | (1,390 | ) | (1.5 | ) | (1,708 | ) | 122.9 | ||||||||||
Income before income taxes | 30,304 | 19.7 | 1,142 | 1.2 | 29,162 | 2,553.6 | |||||||||||||||
Income tax provision | 37 | — | 985 | 1.0 | (948 | ) | (96.2 | ) | |||||||||||||
Net income | $ | 30,267 | 19.7 | $ | 157 | 0.2 | $ | 30,110 | 19,178.3 |
(1) | Not meaningful. |
Six Months Ended | Increase | ||||||||||||||||||||
December 31, 2016 | December 26, 2015 | Change | (Decrease) | ||||||||||||||||||
(Thousands) | % | (Thousands) | % | (Thousands) | % | ||||||||||||||||
Revenues | $ | 289,406 | 100.0 | $ | 181,679 | 100.0 | $ | 107,727 | 59.3 | ||||||||||||
Cost of revenues | 182,286 | 63.0 | 132,374 | 72.9 | 49,912 | 37.7 | |||||||||||||||
Gross profit | 107,120 | 37.0 | 49,305 | 27.1 | 57,815 | 117.3 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||
Research and development | 26,865 | 9.3 | 22,020 | 12.1 | 4,845 | 22.0 | |||||||||||||||
Selling, general and administrative | 28,147 | 9.7 | 25,999 | 14.3 | 2,148 | 8.3 | |||||||||||||||
Amortization of other intangible assets | 485 | 0.2 | 501 | 0.3 | (16 | ) | (3.2 | ) | |||||||||||||
Restructuring, acquisition and related (income) expense, net | 393 | 0.1 | 38 | — | 355 | 934.2 | |||||||||||||||
(Gain) loss on sale of property and equipment | (111 | ) | — | 167 | 0.1 | (278 | ) | n/m | (1) | ||||||||||||
Total operating expenses | 55,779 | 19.3 | 48,725 | 26.8 | 7,054 | 14.5 | |||||||||||||||
Operating income | 51,341 | 17.7 | 580 | 0.3 | 50,761 | 8,751.9 | |||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest income (expense), net | (13,788 | ) | (4.7 | ) | (2,523 | ) | (1.4 | ) | (11,265 | ) | 446.5 | ||||||||||
Gain (loss) on foreign currency transactions, net | (3,842 | ) | (1.3 | ) | 4 | — | (3,846 | ) | n/m | (1) | |||||||||||
Other income (expense), net | 350 | 0.1 | 470 | 0.3 | (120 | ) | (25.5 | ) | |||||||||||||
Total other income (expense) | (17,280 | ) | (5.9 | ) | (2,049 | ) | (1.1 | ) | (15,231 | ) | 743.3 | ||||||||||
Income (loss) before income taxes | 34,061 | 11.8 | (1,469 | ) | (0.8 | ) | 35,530 | n/m | (1) | ||||||||||||
Income tax provision | 443 | 0.2 | 1,884 | 1.0 | (1,441 | ) | (76.5 | ) | |||||||||||||
Net income (loss) | $ | 33,618 | 11.6 | $ | (3,353 | ) | (1.8 | ) | $ | 36,971 | n/m | (1) |
(1) | Not meaningful. |
• | develop or respond to new technologies or technical standards; |
• | react to changing customer requirements and expectations; |
• | devote needed resources to the development, production, promotion and sale of products; |
• | attain high manufacturing yields on new product designs; and |
• | deliver competitive products at lower prices. |
• | qualify our manufacturing lines and the products we produce in Shenzhen, as required by our customers; and |
• | attract and retain qualified personnel to operate our Shenzhen facility. |
• | failure to realize the potential financial or strategic benefits of the acquisition; |
• | increased costs associated with merged or acquired operations; |
• | increased indebtedness obligations; |
• | economic dilution to gross and operating profit (loss) and earnings (loss) per share; |
• | failure to successfully further develop the combined, acquired or remaining technology, which could, among other things, result in the impairment of amounts recorded as goodwill or other intangible assets; |
• | unanticipated costs and liabilities and unforeseen accounting charges; |
• | difficulty in integrating product offerings; |
• | difficulty in coordinating and rationalizing research and development activities to enhance introduction of new products and technologies with reduced cost; |
• | difficulty in coordinating and integrating the manufacturing activities, including with respect to third-party manufacturers, including coordination, integration or transfers of any manufacturing activities associated with our acquisition of Opnext in 2012; |
• | delays and difficulties in delivery of products and services; |
• | failure to effectively integrate or separate management information systems, personnel, research and development, marketing, sales and support operations; |
• | difficulty in maintaining internal control procedures and disclosure controls that comply with the requirements of the Sarbanes-Oxley Act of 2002, or poor integration of a target’s procedures and controls; |
• | difficulty in preserving important relationships of our acquired businesses and resolving potential conflicts between business cultures; |
• | uncertainty on the part of our existing customers, or the customers of an acquired company, about our ability to operate effectively after a transaction, and the potential loss of such customers; |
• | loss of key employees; |
• | difficulty in coordinating the international activities of our acquired businesses, including Opnext, which has substantial operations in Japan, and which uses contract manufacturing suppliers in Southeast Asia; |
• | inherited tax liabilities from our acquisitions together with the effect of tax laws and other legal and regulatory regimes due to increasing the scope of our global operating structure; |
• | greater exposure to the impact of foreign currency changes on our business; |
• | the effect of employment law or regulations or other limitations in foreign jurisdictions that could have an impact on timing, amounts or costs of achieving expected synergies; and |
• | substantial demands on our management as a result of these transactions that may limit their time to attend to other operational, financial, business and strategic issues. |
• | currency fluctuations, which could result in increased operating expenses and reduced revenues; |
• | trade restrictions, including restrictions imposed by the United States government on trading with parties in foreign countries, particularly with respect to China; |
• | difficulty in enforcing or adequately protecting our intellectual property; |
• | ability to hire qualified candidates; |
• | foreign income, value added and customs taxes; |
• | greater difficulty in accounts receivable collection and longer collection periods; |
• | political, legal and economic instability in foreign markets; |
• | foreign regulations; |
• | changes in, or impositions of, legislative or regulatory requirements; |
• | transportation delays; |
• | epidemics and illnesses; |
• | terrorism and threats of terrorism; |
• | work stoppages and infrastructure problems due to adverse weather conditions or natural disasters; |
• | work stoppages related to employee dissatisfaction; and |
• | the effective protections of, and the ability to enforce, contractual arrangements. |
• | fluctuations in our financial condition and results of operations, including our gross margins and cash flow; |
• | changes in our business, operations or prospects; |
• | hiring or departure of key personnel; |
• | new contractual relationships with key suppliers or customers by us or our competitors; |
• | proposed acquisitions and dispositions by us or our competitors; |
• | financial results or projections that fail to meet public market analysts’ expectations and changes in stock market analysts’ recommendations regarding us, other optical technology companies or the telecommunication industry in general; |
• | future sales of common stock, or securities convertible into, exchangeable or exercisable for common stock; |
• | adverse judgments or settlements obligating us to pay damages; |
• | future issuances of common stock in connection with acquisitions or other transactions; |
• | acts of war, terrorism, or natural disasters; |
• | industry, domestic and international market and economic conditions, including sovereign debt issues in certain parts of the world and related global macroeconomic issues; |
• | low trading volume in our stock; |
• | developments relating to patents or property rights; and |
• | government regulatory changes. |
• | adversely affect the voting power of the holders of our common stock; |
• | make it more difficult for a third-party to gain control of us; |
• | discourage bids for our common stock at a premium; |
• | limit or eliminate any payments that the holders of our common stock could expect to receive upon our liquidation; or |
• | otherwise adversely affect the market price of our common stock. |
• | authorizing the board of directors to issue preferred stock; |
• | prohibiting cumulative voting in the election of directors; |
• | limiting the persons who may call special meetings of stockholders; |
• | prohibiting stockholder actions by written consent; |
• | creating a classified board of directors pursuant to which our directors are elected for staggered three-year terms; |
• | permitting the board of directors to increase the size of the board and to fill vacancies; |
• | requiring a super-majority vote of our stockholders to amend our bylaws and certain provisions of our certificate of incorporation; and |
• | establishing advance notice requirements for nominations for election to the board of directors or for proposing matters that can be acted on by stockholders at stockholder meetings. |
OCLARO, INC. (Registrant) | |||
February 6, 2017 | By: | /s/ GREG DOUGHERTY | |
Greg Dougherty Chief Executive Officer (Principal Executive Officer) | |||
February 6, 2017 | By: | /s/ PETE MANGAN | |
Pete Mangan Chief Financial Officer (Principal Financial Officer) |
Exhibit Number | Description of Exhibit | |
31.1 (1) | Certification of Chief Executive Officer Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002. | |
31.2 (1) | Certification of Chief Financial Officer Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002. | |
32.1 (1) | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350. | |
32.2 (1) | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
(1) | Filed herewith. |
1. | I have reviewed this Quarterly Report on Form 10-Q of Oclaro, Inc. for the period ended December 31, 2016; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
February 6, 2017 | By: | /s/ GREG DOUGHERTY | |
Greg Dougherty | |||
Chief Executive Officer | |||
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Oclaro, Inc. for the period ended December 31, 2016; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
February 6, 2017 | By: | /s/ PETE MANGAN | |
Pete Mangan | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
February 6, 2017 | By: | /s/ GREG DOUGHERTY | |
Greg Dougherty | |||
Chief Executive Officer | |||
(Principal Executive Officer) |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
February 6, 2017 | By: | /s/ PETE MANGAN | |
Pete Mangan | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
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Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Feb. 01, 2017 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | OCLR | |
Entity Registrant Name | OCLARO, INC. | |
Entity Central Index Key | 0001110647 | |
Current Fiscal Year End Date | --07-01 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 166,590,393 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jul. 02, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,641 | $ 1,674 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 275,000,000 | 275,000,000 |
Common stock, shares issued | 166,485,000 | 112,207,000 |
Common stock, shares outstanding | 166,485,000 | 112,207,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 26, 2015 |
Dec. 31, 2016 |
Dec. 26, 2015 |
|
Income Statement [Abstract] | ||||
Revenues | $ 153,914 | $ 94,129 | $ 289,406 | $ 181,679 |
Cost of revenues | 93,150 | 67,521 | 182,286 | 132,374 |
Gross profit | 60,764 | 26,608 | 107,120 | 49,305 |
Operating expenses: | ||||
Research and development | 13,758 | 11,075 | 26,865 | 22,020 |
Selling, general and administrative | 13,355 | 12,791 | 28,147 | 25,999 |
Amortization of other intangible assets | 241 | 250 | 485 | 501 |
Restructuring, acquisition and related (income) expense, net | 82 | 6 | 393 | 38 |
(Gain) loss on sale of property and equipment | (74) | (46) | (111) | 167 |
Total operating expenses | 27,362 | 24,076 | 55,779 | 48,725 |
Operating income | 33,402 | 2,532 | 51,341 | 580 |
Other income (expense): | ||||
Interest income (expense), net | 70 | (1,247) | (13,788) | (2,523) |
Gain (loss) on foreign currency transactions, net | (3,324) | (500) | (3,842) | 4 |
Other income (expense), net | 156 | 357 | 350 | 470 |
Total other income (expense) | (3,098) | (1,390) | (17,280) | (2,049) |
Income (loss) before income taxes | 30,304 | 1,142 | 34,061 | (1,469) |
Income tax provision | 37 | 985 | 443 | 1,884 |
Net income (loss) | $ 30,267 | $ 157 | $ 33,618 | $ (3,353) |
Net income (loss) per share: | ||||
Basic (in USD per share) | $ 0.18 | $ 0.00 | $ 0.23 | $ (0.03) |
Diluted (in USD per share) | $ 0.18 | $ 0.00 | $ 0.21 | $ (0.03) |
Shares used in computing net income (loss) per share: | ||||
Basic (in shares) | 165,822 | 110,296 | 149,151 | 109,877 |
Diluted (in shares) | 168,856 | 112,394 | 159,801 | 109,877 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 26, 2015 |
Dec. 31, 2016 |
Dec. 26, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 30,267 | $ 157 | $ 33,618 | $ (3,353) |
Other comprehensive income (loss): | ||||
Unrealized gain on marketable securities | 5 | 0 | 5 | 0 |
Currency translation adjustments | (3,799) | (596) | (3,245) | (2,479) |
Pension adjustments | 0 | 0 | 0 | (10) |
Total comprehensive income (loss) | $ 26,473 | $ (439) | $ 30,378 | $ (5,842) |
BASIS OF PREPARATION |
6 Months Ended |
---|---|
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PREPARATION | BASIS OF PREPARATION Basis of Presentation Oclaro, Inc., a Delaware corporation, is sometimes referred to in this Quarterly Report on Form 10-Q as “Oclaro,” “we,” “us” or “our.” The accompanying unaudited condensed consolidated financial statements of Oclaro as of December 31, 2016 and for the three and six months ended December 31, 2016 and December 26, 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission ("SEC") Regulation S-X, and include the accounts of Oclaro and all of our subsidiaries. Accordingly, they do not include all of the information and footnotes required by such accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our consolidated financial position and results of operations have been included. The condensed consolidated results of operations for the three and six months ended December 31, 2016 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending July 1, 2017. The condensed consolidated balance sheet as of July 2, 2016 has been derived from our audited financial statements as of such date, but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with our audited financial statements included in our Annual Report on Form 10-K for the year ended July 2, 2016 ("2016 Form 10-K"). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reported periods. Examples of significant estimates and assumptions made by management involve the fair value of other intangible assets and long-lived assets, valuation allowances for deferred tax assets, the fair value of stock-based compensation, the fair value of embedded derivatives related to convertible debt, the fair value of pension liabilities, estimates for allowances for doubtful accounts and valuation of excess and obsolete inventories. These judgments can be subjective and complex and consequently actual results could differ materially from those estimates and assumptions. Descriptions of the key estimates and assumptions are included in our 2016 Form 10-K. Fiscal Years We operate on a 52/53 week year ending on the Saturday closest to June 30. Our fiscal year ending July 1, 2017 will be a 52 week year, with the quarter ended December 31, 2016 being a 13 week quarterly period. Our fiscal year ended July 2, 2016 was a 53 week year, with the quarter ended December 26, 2015 being a 13 week quarterly period. Reclassifications For presentation purposes, we have reclassified certain prior period amounts to conform to the current period financial statement presentation. These reclassifications did not affect our consolidated revenues, net loss, cash flows, cash and cash equivalents or stockholders’ equity as previously reported. Recent Developments In August 2016, we entered into multiple privately negotiated agreements, pursuant to which all of our 6.00% Notes were cancelled, and the indenture, by and between us and U.S. Bank National Association, pursuant to which the 6.00% Notes were issued, was satisfied and discharged. In connection with these privately negotiated agreements, we issued a total of 34,659,972 shares of our common stock and made total cash payments of $4.7 million. See Note 5, Credit Line and Notes, for additional information. In September 2016, we entered into an underwriting agreement with Jefferies LLC, as representative of several underwriters, pursuant to which we sold 17,250,000 shares of our common stock in a public offering. The net proceeds to us after deducting underwriting discounts and commissions and offering expenses was approximately $135.2 million. See Note 3, Balance Sheet Details for additional information. In November 2016, our stockholders approved an amendment to the Fifth Amended and Restated 2001 Long-Term Stock Incentive Plan, adding 6.0 million shares of common stock to the share reserve. See Note 8, Employee Stock Plans, for additional information. |
RECENT ACCOUNTING STANDARDS |
6 Months Ended |
---|---|
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING STANDARDS | RECENT ACCOUNTING STANDARDS In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-18, Statement of Cash Flows: Restricted Cash to standardize the presentation of transfers between cash and restricted cash in the cash flow statement. Amounts described as restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance will be effective for us in the first quarter of fiscal 2019, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, to reduce the complexity related to the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. This guidance will be effective for us in the first quarter of fiscal 2019, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments to reduce the diversity in practice related to the presentation and classification of various cash flow scenarios. This guidance will be effective for us in the first quarter of fiscal 2019, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In May 2014 and May 2016, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, respectively. These updates clarify the principles for recognizing revenue and develop a common revenue standard for GAAP and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. This guidance will be effective for us in the first quarter of fiscal 2019, with early adoption permitted for periods beginning after December 15, 2016. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation: Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards, and classification on the statement of cash flows. This guidance will be effective for us in the first quarter of fiscal 2018, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance will be effective for us in the first quarter of fiscal 2020, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. |
BALANCE SHEET DETAILS |
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Balance Sheet Details [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET DETAILS | BALANCE SHEET DETAILS Cash, Cash Equivalents and Short-Term Investments The following table provides details regarding our cash, cash equivalents and short-term investments at the dates indicated:
We classify short-term investments, which consist primarily of securities purchased with original maturities at date of purchase of more than three months and less than one year, as “available for sale securities”. These short-term investments are reported at market value, with the aggregate unrealized holding gains and losses reported as a component of accumulated other comprehensive income in stockholders’ equity. All realized gains and losses and unrealized losses resulting from declines in fair value that are other than temporary and not involving credit losses are recorded in the consolidated statements of operations in the period they occur. Restricted Cash As of December 31, 2016, we had restricted cash of $1.1 million, comprised of $0.7 million in current assets and $0.4 million in other non-current assets, representing collateral for the performance of our obligations under certain lease facility agreements, collateral to secure certain of our credit card accounts and deposits for value-added taxes in foreign jurisdictions. Inventories The following table provides details regarding our inventories at the dates indicated:
Property and Equipment, Net The following table provides details regarding our property and equipment, net at the dates indicated:
Property and equipment includes assets under capital leases of $4.0 million at December 31, 2016 and $5.9 million at July 2, 2016, respectively. Amortization associated with assets under capital leases is recorded in depreciation expense. Other Intangible Assets, Net The following table summarizes the activity related to our other intangible assets for the six months ended December 31, 2016:
We expect the amortization of intangible assets to be $0.3 million for the remainder of fiscal year 2017 and $0.6 million for fiscal year 2018, based on the current level of our other intangible assets as of December 31, 2016. Accrued Expenses and Other Liabilities The following table presents details regarding our accrued expenses and other liabilities at the dates indicated:
Common Stock In August 2016, we issued a total of 34,659,972 shares of our common stock in connection with the cancellation of our 6.00% Notes. See Note 5, Credit Line and Notes, for additional information. On September 21, 2016, we entered into an underwriting agreement (the “Underwriting Agreement”) with Jefferies LLC, as representative of the several underwriters (the “Underwriters”), relating to the offering, issuance and sale (the “Offering”) of 15.0 million shares of our common stock, par value $0.01 per share (the “Common Stock”). The price to the public in the Offering was $8.35 per share. Under the terms of the Underwriting Agreement, we granted the Underwriters a 30-day option to purchase up to an additional 2,250,000 shares of Common Stock. The option was exercised in full by the Underwriters on September 23, 2016. All of the shares in the Offering were sold by us. The Offering closed on September 27, 2016, subject to customary closing conditions. The net proceeds to us after deducting underwriting discounts and commissions and offering expenses are approximately $135.2 million. Accumulated Other Comprehensive Income The following table presents the components of accumulated other comprehensive income at the dates indicated:
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FAIR VALUE |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE We define fair value as the estimated price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. We apply the following fair value hierarchy, which ranks the quality and reliability of the information used to determine fair values:
Our cash equivalents and short-term investment instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The types of instruments valued based on quoted market prices in active markets include most money market and marketable securities. Such instruments are generally classified within Level 1 of the fair value hierarchy. The types of instruments valued based on other observable inputs include investment-grade corporate bonds and commercial paper. Such instruments are generally classified within Level 2 of the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are shown in the table below by their corresponding balance sheet caption and consisted of the following types of instruments at December 31, 2016 and July 2, 2016:
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CREDIT LINE AND NOTES |
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Debt Disclosure [Abstract] | |||||||||||||
CREDIT LINE AND NOTES | CREDIT LINE AND NOTES 6.00% Convertible Senior Notes due 2020 ("6.00% Notes") On February 12, 2015, we entered into a Purchase Agreement (the “Purchase Agreement”), with Jefferies LLC (the “Initial Purchaser”), pursuant to which we agreed to issue and sell to the Initial Purchaser up to $65.0 million in aggregate principal Convertible Senior Notes due 2020 (the “6.00% Notes”). On February 19, 2015, we closed the private placement of $65.0 million aggregate principal amount of the 6.00% Notes. The 6.00% Notes were sold at 100 percent of par, resulting in net proceeds of approximately $61.6 million, after deducting the Initial Purchaser’s discounts of $3.4 million. We also incurred offering expenses of $0.6 million. The net proceeds of this offering are being used for general corporate purposes, including working capital for, among other things, investing in development of new products and technologies. The Purchase Agreement contained customary representations and warranties of the parties and indemnification and contribution provisions under which we, on the one hand, and the Initial Purchaser, on the other, agreed to indemnify each other against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Prior to February 15, 2018, in the event that the last reported sale price of our common stock for 20 or more trading days (whether or not consecutive) in a period of 30 consecutive trading days ending within five trading days immediately prior to the date we receive a notice of conversion exceeds the conversion price in effect on each such trading day, we will, in addition to delivering shares upon conversion by the holder of 6.00% Notes, together with cash in lieu of fractional shares, make an interest make-whole payment in cash equal to the sum of the remaining scheduled payments of interest on the 6.00% Notes to be converted through February 15, 2018. The 6.00% Notes were scheduled to mature on February 15, 2020 and bear interest at a fixed rate of 6.00 percent per year, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2015. In August 2016, we entered into multiple privately negotiated agreements, pursuant to which all of our 6.00% Notes were canceled, and the indenture, by and between us and U.S. Bank National Association, pursuant to which the 6.00% Notes were issued, was satisfied and discharged. In connection with these privately negotiated agreements, we issued a total of 34,659,972 shares of our common stock and made total cash payments of $4.7 million.
Pursuant to the terms of the indenture governing the 6.00% Notes, we recorded an interest make-whole charge of $5.9 million in interest (income) expense, net, in the condensed consolidated statements of operations for the six months ended December 31, 2016, which was settled with a combination of common stock issuances and cash payments. We also recorded an induced conversion expense of $7.4 million, which we recorded in interest (income) expense, net, in the condensed consolidated statements of operations for the six months ended December 31, 2016. Silicon Valley Bank Credit Facility On March 28, 2014, we entered into a loan and security agreement (the “Loan Agreement”) with Silicon Valley Bank (the “Bank”) pursuant to which the Bank provided us with a three-year revolving credit facility of up to $40.0 million. Under the Loan Agreement, advances are available based on up to 80 percent of “eligible accounts” as defined in the Loan Agreement. The Loan Agreement has a $10.0 million sub-facility for letters of credit, foreign exchange contracts and cash management services. Borrowings made under the Loan Agreement bear interest at a rate based on either the London Interbank Offered Rate plus 2.25 percent or Wall Street Journal’s prime rate plus 1.00 percent. If the sum of (a) our unrestricted cash and cash equivalents that are subject to the Bank’s liens less (b) the amount outstanding to the Bank under the Loan Agreement (such sum being “Net Cash”) is less than $15.0 million, then the interest rates are increased by 0.75 percent until Net Cash exceeds $15.0 million for a calendar month. If interest paid under the Loan Agreement is less than $45,000 in any fiscal quarter, we are required to pay the Bank an additional amount equal to the difference between $45,000 and the actual interest paid during such fiscal quarter. The minimum interest payment is in lieu of a stand-by charge. If the Loan Agreement terminates prior to its maturity date, we will pay a termination fee equal to 1.00 percent of the total credit facility if such termination occurs in the first year after closing, 0.75 percent of the total credit facility if such termination occurs in the second year after closing and 0.50 percent of the total credit facility if such termination occurs in the third year after closing. The maturity date of the Loan Agreement is March 28, 2017. At December 31, 2016 and July 2, 2016, there were no amounts outstanding under the Loan Agreement. |
POST-RETIREMENT BENEFITS |
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POST-RETIREMENT BENEFITS | POST-RETIREMENT BENEFITS We maintain a defined contribution plan and a defined benefit plan that provide retirement benefits to our employees in Japan. We also contribute to a U.K. based defined contribution pension scheme for employees. Japan Defined Contribution Plan Under the defined contribution plan in Japan, contributions are provided based on grade level and totaled $0.1 million and $0.3 million for the three and six months ended December 31, 2016, respectively and $0.1 million and $0.2 million for the three and six months ended December 26, 2015, respectively. Employees can elect to receive the benefit as additional salary or contribute the benefit to the plan on a tax-deferred basis. Japan Defined Benefit Plan Under the defined benefit plan in Japan (the “Japan Plan”), we calculate benefits based on an employee’s individual grade level and years of service. Employees are entitled to a lump sum benefit upon retirement or upon certain instances of termination. As of December 31, 2016, there were no plan assets associated with the Japan Plan. As of December 31, 2016, there was $0.1 million in accrued expenses and other liabilities and $6.2 million in other non-current liabilities in our condensed consolidated balance sheet to account for the projected benefit obligations under the Japan Plan. Net periodic pension costs for the Japan Plan included the following:
We made benefit payments under the Japan Plan of $0.1 million and $0.2 million during the three and six months ended December 31, 2016, respectively, and zero and $0.1 million during the three and six months ended December 26, 2015, respectively. U.K. Defined Contribution Pension Scheme Under the defined contribution pension scheme, contributions totaled $0.3 million and $0.5 million for the three and six months ended December 31, 2016, respectively, and $0.3 million and $0.6 million for the three and six months ended December 26, 2015, respectively. |
COMMITMENTS AND CONTINGENCIES |
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COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Loss Contingencies We are involved in various lawsuits, claims, and proceedings that arise in the ordinary course of business. We record a loss provision when we believe it is both probable that a liability has been incurred and the amount can be reasonably estimated. Guarantees We indemnify our directors and certain employees as permitted by law, and have entered into indemnification agreements with our directors and executive officers. We have not recorded a liability associated with these indemnification arrangements, as we historically have not incurred any material costs associated with such indemnification obligations. Costs associated with such indemnification obligations may be mitigated by insurance coverage that we maintain, however, such insurance may not cover any, or may cover only a portion of, the amounts we may be required to pay. In addition, we may not be able to maintain such insurance coverage in the future. We also have indemnification clauses in various contracts that we enter into in the normal course of business, such as indemnifications in favor of customers in respect of liabilities they may incur as a result of purchasing our products should such products infringe the intellectual property rights of a third party. We have not historically paid out any material amounts related to these indemnifications; therefore, no accrual has been made for these indemnifications. Warranty Accrual We generally provide a warranty for our products for twelve months to thirty-six months from the date of sale, although warranties for certain of our products may be longer. We accrue for the estimated costs to provide warranty services at the time revenue is recognized. Our estimate of costs to service our warranty obligations is based on historical experience and expectation of future conditions. To the extent we experience increased warranty claim activity or increased costs associated with servicing those claims, our warranty costs would increase, resulting in a decrease in gross profit. The following table summarizes movements in the warranty accrual for the periods indicated:
Capital Leases In connection with our acquisition of Opnext, Inc. in 2012, we assumed certain capital leases for certain equipment. The terms of the leases generally range from one to five years and the equipment can be purchased at the residual value upon expiration. We can terminate the leases at our discretion in return for a penalty payment as stated in the lease contracts. In October 2015, we entered into a capital lease agreement for certain capital equipment. The lease term is for 5 years, after which time the ownership of the equipment will transfer from lessor to us. During the lease term, we will make twenty equal installments of principal and interest, payable quarterly. Interest on the capital lease will accrue at 1.15 percent per annum. The following table shows the future minimum lease payments due under non-cancelable capital leases at December 31, 2016:
Purchase Commitments We purchase components from a variety of suppliers and use contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with suppliers and contract manufacturers that either allow them to procure inventory based upon criteria as defined by us or establish the parameters defining our requirements. A significant portion of our reported purchase commitments arising from these agreements consist of firm, non-cancelable and unconditional commitments. We record a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of December 31, 2016 and July 2, 2016, the liability for these purchase commitments was $2.6 million and $1.7 million, respectively, and was included in accrued expenses and other liabilities in our condensed consolidated balance sheets. Malaysian Goods and Services Tax (“GST”) In February 2016, the Malaysian tax authorities preliminarily denied our Malaysia GST refund claims representing approximately $2.4 million. These claims were made in connection with the export of finished goods from our contract manufacturing partner’s Malaysian facilities. We are currently contesting the denial of these claims, and believe that additional appeal options may be available to us if we do not obtain a favorable resolution. Although we have taken action to minimize the impact of the GST with respect to our ongoing operations, we believe it is reasonably possible that, ultimately, we may not be able to recover these GST amounts. We have accounted for the $2.4 million GST claims as a receivable classified in prepaid expenses and other current assets in our condensed consolidated balance sheet at December 31, 2016. Litigation Overview In the ordinary course of business, we are involved in various legal proceedings, and we anticipate that additional actions will be brought against us in the future. The most significant of these proceedings are described below. These legal proceedings, as well as other matters, involve various aspects of our business and a variety of claims in various jurisdictions. Complex legal proceedings frequently extend for several years, and a number of the matters pending against us are at very early stages of the legal process. As a result, some pending matters have not yet progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to determine whether the proceeding is material to us or to estimate a range of possible loss, if any. Unless otherwise disclosed, we are unable to estimate the possible loss or range of loss for the legal proceeding described below. While it is not possible to accurately predict or determine the eventual outcome of this item, an adverse determination in the item currently pending could have a material adverse effect on our results of operations, financial position or cash flows. Kunst Worker Compensation Matter On June 18, 2015, Gerald Kunst, or Kunst, filed a civil suit against us and Travelers Property Casualty Company of America, or Travelers, in Massachusetts Superior Court, Civil Action No. SUCV2015-01818F. Travelers is our general liability insurance carrier. The complaint filed by Kunst, an employee of a third party service provider, alleges that he was injured while performing air conditioning repair services on the premises of our Acton, Massachusetts facility and seeks judgment in an amount to be determined by the court or jury, together with interest and costs. On July 24, 2015, we filed an answer to the complaint, which included our affirmative defenses. A pretrial conference is scheduled for April 12, 2017. We intend to vigorously defend against this litigation. |
EMPLOYEE STOCK PLANS |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE STOCK PLANS | EMPLOYEE STOCK PLANS Stock Incentive Plans On November 18, 2016, our stockholders approved an amendment to the Fifth Amended and Restated 2001 Long-Term Stock Incentive Plan (the "Plan"), adding 6.0 million shares of common stock to the share reserve under the Plan. As of December 31, 2016, there were approximately 13.9 million shares of our common stock available for grant under the Plan. We generally grant stock options that vest over a two to four year service period, and restricted stock awards and restricted stock unit ("RSU") awards that vest over a one to four year service period, and in certain cases each may vest earlier based upon the achievement of specific performance-based objectives as set by our board of directors or the compensation committee of our board of directors. Performance Stock Units In August 2015, our board of directors approved a grant of 0.9 million performance-based restricted stock units ("PSUs") to certain executive officers with an aggregate estimated grant date fair value of $2.5 million. Subject to the achievement of positive free cash flow (defined as adjusted EBITDA less capital expenditures) in any fiscal quarter ending prior to June 30, 2018, vesting of these PSUs is contingent upon service conditions being met through August 10, 2018. On October 29, 2015, the compensation committee of our board of directors certified that this performance condition was achieved during the first quarter of fiscal year 2016. As a result, these PSUs cliff vested with respect to 33.4 percent of the underlying shares on August 10, 2016, and will vest with respect to 8.325 percent of the underlying shares each subsequent quarter over the following two years, subject to continuous service. In August 2016, our board of directors approved a grant of 0.8 million PSUs to certain executive officers with an aggregate estimated grant date fair value of $4.8 million. Subject to the achievement of an aggregate of $25.0 million or more of free cash flow (defined as adjusted EBITDA less capital expenditures delivered) over any consecutive four fiscal quarters ending on or before June 27, 2020, as determined by our board of directors, these PSUs will vest with respect to 25 percent of the shares subject to the PSUs on August 10, 2017, and with respect to 6.25 percent of the underlying shares each subsequent quarter over the following three years, subject to continuous service. Restricted Stock Units In July 2015, our board of directors approved a long term incentive grant of 0.9 million RSUs to certain executive officers and 1.5 million RSUs to other employees, which vest over three years. In August 2016, our board of directors approved a long term incentive grant of 0.8 million RSUs to certain executive officers and 2.0 million RSUs to other employees, which vest over four years. Stock Incentive Plan Activity The following table summarizes the combined activity under all of our equity incentive plans for the six months ended December 31, 2016:
Supplemental disclosure information about our stock options and stock appreciation rights ("SARs") outstanding as of December 31, 2016 is as follows:
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on the closing price of our common stock of $8.95 on December 30, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. There were approximately 1.6 million shares of common stock subject to in-the-money options which were exercisable as of December 31, 2016. We settle employee stock option exercises with newly issued shares of common stock. |
STOCK-BASED COMPENSATION |
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STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We recognize stock-based compensation expense in our condensed consolidated statement of operations related to all share-based awards, including grants of stock options, based on the grant date fair value of such share-based awards. As there were no stock options granted during the three and six months ended December 31, 2016 and December 26, 2015, the Black-Scholes assumptions used to value stock option grants is not applicable. The amounts included in cost of revenues and operating expenses for stock-based compensation were as follows:
As of December 31, 2016 and July 2, 2016, we had capitalized approximately $0.6 million and $0.3 million, respectively, of stock-based compensation as inventory. As of December 31, 2016, we had capitalized approximately $0.1 million of stock-based compensation in connection with the development of internal use software. As of December 31, 2016, we had $0.2 million in unrecognized stock-based compensation expense related to unvested stock options, net of estimated forfeitures, that will be recognized over a weighted-average period of 1.5 years, and $18.5 million in unrecognized stock-based compensation expense related to unvested time-based restricted stock awards, net of estimated forfeitures, that will be recognized over a weighted-average period of 2.5 years. The amount of stock-based compensation expense recognized in any one period related to PSUs can vary based on the achievement or anticipated achievement of the performance conditions. If the performance conditions are not met or not expected to be met, no compensation cost would be recognized on the shares underlying the PSUs, and any previously recognized compensation expense related to those PSUs would be reversed. As of December 31, 2016, we determined that the achievement of the performance conditions associated with the PSUs issued in August 2016 is probable at 100 percent of the target level. During the three and six months ended December 31, 2016, we recorded $0.6 million and $1.2 million, respectively, in stock-based compensation in connection with the PSUs issued in August 2015 and August 2016. During the three and six months ended December 26, 2015, we recorded $0.8 million and $1.0 million, respectively in stock-based compensation expense in connection with the issuance of PSUs. |
INCOME TAXES |
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Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax provision of $37,000 and $0.4 million for the three and six months ended December 31, 2016, respectively, relates primarily to our foreign operations, which included a $0.5 million release of a reserve in Italy due to the expiration of the applicable statute of limitations. The income tax provision of $1.0 million and $1.9 million for the three and six months ended December 26, 2015, respectively, relates primarily to our foreign operations. The total amount of our unrecognized tax benefits as of December 31, 2016 and July 2, 2016 were approximately $3.5 million and $3.8 million, respectively. As of December 31, 2016, we had $2.9 million of unrecognized tax benefits that, if recognized, would affect our effective tax rate. While it is often difficult to predict the final outcome of any particular uncertain tax position, we believe that unrecognized tax benefits could decrease by approximately $0.6 million in the next twelve months. |
NET INCOME (LOSS) PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed using only the weighted-average number of shares of common stock outstanding for the applicable period, while diluted net income (loss) per share is computed assuming conversion of all potentially dilutive securities, such as stock options, unvested restricted stock units and awards, warrants and convertible notes during such period. The following table presents the calculation of basic and diluted net income (loss) per share:
For the three and six months ended December 31, 2016, we excluded 0.8 million and 0.8 million, respectively, of outstanding stock options, stock appreciation rights and unvested restricted stock awards from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive. For the three and six months ended December 26, 2015, we excluded 36.2 million and 39.9 million, respectively, of outstanding stock options, stock appreciation rights, unvested restricted stock awards and shares issuable in connection with convertible notes from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive. |
GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION | GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION Geographic Information The following table shows revenues by geographic area based on the delivery locations of our products:
Product Groups The following table sets forth revenues by product group:
Significant Customers and Concentration of Credit Risk For the three months ended December 31, 2016, four customers accounted for 10 percent or more of our revenues, representing approximately 22 percent, 20 percent, 16 percent and 10 percent of our revenues, respectively. For the six months ended December 31, 2016 four customers accounted for 10 percent of more of our revenues, representing 20 percent, 19 percent, 18 percent and 11 percent of our revenues, respectively. For the three months ended December 26, 2015, three customers accounted for 10 percent or more of our revenues, representing approximately 21 percent, 16 percent and 10 percent of our revenues, respectively. For the six months ended December 26, 2015, three customers accounted for 10 percent or more of our revenues, representing approximately 19 percent, 16 percent and 10 percent of our revenues, respectively. As of December 31, 2016, three customers accounted for 10 percent or more of our accounts receivable, representing approximately 23 percent, 18 percent and 16 percent of our accounts receivable, respectively. As of July 2, 2016, four customers accounted for 10 percent or more of our accounts receivable, representing approximately 23 percent, 16 percent, 13 percent and 10 percent of our accounts receivable, respectively. |
BASIS OF PREPARATION (Policies) |
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Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Oclaro, Inc., a Delaware corporation, is sometimes referred to in this Quarterly Report on Form 10-Q as “Oclaro,” “we,” “us” or “our.” The accompanying unaudited condensed consolidated financial statements of Oclaro as of December 31, 2016 and for the three and six months ended December 31, 2016 and December 26, 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission ("SEC") Regulation S-X, and include the accounts of Oclaro and all of our subsidiaries. Accordingly, they do not include all of the information and footnotes required by such accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our consolidated financial position and results of operations have been included. The condensed consolidated results of operations for the three and six months ended December 31, 2016 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending July 1, 2017. The condensed consolidated balance sheet as of July 2, 2016 has been derived from our audited financial statements as of such date, but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with our audited financial statements included in our Annual Report on Form 10-K for the year ended July 2, 2016 ("2016 Form 10-K"). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reported periods. Examples of significant estimates and assumptions made by management involve the fair value of other intangible assets and long-lived assets, valuation allowances for deferred tax assets, the fair value of stock-based compensation, the fair value of embedded derivatives related to convertible debt, the fair value of pension liabilities, estimates for allowances for doubtful accounts and valuation of excess and obsolete inventories. These judgments can be subjective and complex and consequently actual results could differ materially from those estimates and assumptions. Descriptions of the key estimates and assumptions are included in our 2016 Form 10-K. |
Fiscal Years | Fiscal Years We operate on a 52/53 week year ending on the Saturday closest to June 30. Our fiscal year ending July 1, 2017 will be a 52 week year, with the quarter ended December 31, 2016 being a 13 week quarterly period. Our fiscal year ended July 2, 2016 was a 53 week year, with the quarter ended December 26, 2015 being a 13 week quarterly period. |
Reclassifications | Reclassifications For presentation purposes, we have reclassified certain prior period amounts to conform to the current period financial statement presentation. These reclassifications did not affect our consolidated revenues, net loss, cash flows, cash and cash equivalents or stockholders’ equity as previously reported. |
Recent Accounting Standards | RECENT ACCOUNTING STANDARDS In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-18, Statement of Cash Flows: Restricted Cash to standardize the presentation of transfers between cash and restricted cash in the cash flow statement. Amounts described as restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance will be effective for us in the first quarter of fiscal 2019, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, to reduce the complexity related to the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. This guidance will be effective for us in the first quarter of fiscal 2019, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments to reduce the diversity in practice related to the presentation and classification of various cash flow scenarios. This guidance will be effective for us in the first quarter of fiscal 2019, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In May 2014 and May 2016, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, respectively. These updates clarify the principles for recognizing revenue and develop a common revenue standard for GAAP and International Financial Reporting Standards. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. This guidance will be effective for us in the first quarter of fiscal 2019, with early adoption permitted for periods beginning after December 15, 2016. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation: Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards, and classification on the statement of cash flows. This guidance will be effective for us in the first quarter of fiscal 2018, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance will be effective for us in the first quarter of fiscal 2020, with early adoption permitted. We are currently evaluating the impact that the implementation of this standard will have on our financial statements and footnote disclosures. |
BALANCE SHEET DETAILS (Tables) |
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Balance Sheet Details [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides details regarding our cash, cash equivalents and short-term investments at the dates indicated:
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Schedule of Inventories | The following table provides details regarding our inventories at the dates indicated:
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Schedule of Property and Equipment, Net | The following table provides details regarding our property and equipment, net at the dates indicated:
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Summary of Other Intangible Assets | The following table summarizes the activity related to our other intangible assets for the six months ended December 31, 2016:
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Schedule of Accrued Expenses and Other Liabilities | The following table presents details regarding our accrued expenses and other liabilities at the dates indicated:
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Components of Accumulated Other Comprehensive Income | The following table presents the components of accumulated other comprehensive income at the dates indicated:
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FAIR VALUE (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are shown in the table below by their corresponding balance sheet caption and consisted of the following types of instruments at December 31, 2016 and July 2, 2016:
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POST-RETIREMENT BENEFITS (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Pension Costs | Net periodic pension costs for the Japan Plan included the following:
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movements in Warranty Accrual for Period | The following table summarizes movements in the warranty accrual for the periods indicated:
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Summary of Future Minimum Lease Payments Due under Non-cancelable Capital Leases | The following table shows the future minimum lease payments due under non-cancelable capital leases at December 31, 2016:
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EMPLOYEE STOCK PLANS (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Combined Activity Under All of Our Equity Incentive Plans | The following table summarizes the combined activity under all of our equity incentive plans for the six months ended December 31, 2016:
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Supplemental Disclosure Information About Stock Options and SAR's Outstanding | Supplemental disclosure information about our stock options and stock appreciation rights ("SARs") outstanding as of December 31, 2016 is as follows:
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STOCK-BASED COMPENSATION (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts Included in Cost of Revenues and Operating Expenses for Stock-Based Compensation | The amounts included in cost of revenues and operating expenses for stock-based compensation were as follows:
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NET INCOME (LOSS) PER SHARE Net Income (Loss) Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The following table presents the calculation of basic and diluted net income (loss) per share:
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GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues by Geographic Area | The following table shows revenues by geographic area based on the delivery locations of our products:
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Revenues by Product Group | The following table sets forth revenues by product group:
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BASIS OF PREPARATION (Details) - USD ($) $ in Millions |
1 Months Ended | 6 Months Ended | |||||||||
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Nov. 18, 2016 |
Sep. 27, 2016 |
Aug. 22, 2016 |
Aug. 12, 2016 |
Aug. 09, 2016 |
Aug. 08, 2016 |
Sep. 30, 2016 |
Aug. 31, 2016 |
Dec. 31, 2016 |
Oct. 31, 2015 |
Feb. 19, 2015 |
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Debt Instrument [Line Items] | |||||||||||
Stated interest rate (percent) | 1.15% | ||||||||||
Stock issued in September (shares) | 15,000,000 | ||||||||||
Proceeds from issuance of common stock, net | $ 135.2 | $ 135.2 | |||||||||
Additional shares reserved under the Plan (shares) | 6,000,000.0 | 6,000,000 | |||||||||
Convertible Notes | 6.00% Convertible Senior Notes due 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (percent) | 6.00% | 6.00% | |||||||||
Payment on 6% Notes | $ 4.7 | $ 4.7 | |||||||||
Common Stock | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Shares issued in settlement of debt (shares) | 756,213 | 21,852,477 | 20,564,101 | 12,051,282 | 34,659,972 | ||||||
Stock issued in September (shares) | 17,250,000 |
BALANCE SHEET DETAILS - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jul. 02, 2016 |
Dec. 26, 2015 |
Jun. 27, 2015 |
---|---|---|---|---|
Cash and cash equivalents: | ||||
Cash-in-bank | $ 49,806 | $ 70,925 | ||
Money market funds | 157,627 | 25,004 | ||
Commercial paper | 11,489 | 0 | ||
Corporate bonds | 3,874 | 0 | ||
Total cash and cash equivalents | 222,796 | 95,929 | $ 114,058 | $ 111,840 |
Short-term investments: | ||||
Commercial paper | 15,947 | 0 | ||
Corporate bonds | 4,001 | 0 | ||
Short-term Investments | $ 19,948 | $ 0 |
BALANCE SHEET DETAILS - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jul. 02, 2016 |
---|---|---|
Inventories: | ||
Raw materials | $ 26,649 | $ 23,751 |
Work-in-process | 32,458 | 32,819 |
Finished goods | 23,206 | 19,799 |
Total inventories | $ 82,313 | $ 76,369 |
BALANCE SHEET DETAILS - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jul. 02, 2016 |
---|---|---|
Property and equipment, net: | ||
Buildings and improvements | $ 9,787 | $ 10,389 |
Plant and machinery | 73,064 | 59,696 |
Fixtures, fittings and equipment | 2,904 | 3,005 |
Computer equipment | 9,016 | 9,846 |
Property and equipment, gross | 94,771 | 82,936 |
Less: Accumulated depreciation | (13,369) | (17,891) |
Total property and equipment, net | $ 81,402 | $ 65,045 |
BALANCE SHEET DETAILS - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jul. 02, 2016 |
---|---|---|
Accrued expenses and other liabilities: | ||
Trade payables | $ 8,831 | $ 6,429 |
Compensation and benefits related accruals | 15,260 | 14,038 |
Warranty accrual | 4,560 | 3,827 |
Accrued restructuring, current | 0 | 204 |
Purchase commitments in excess of future demand, current | 2,625 | 1,723 |
Other accruals | 9,094 | 8,597 |
Total accrued expenses and other liabilities | $ 40,370 | $ 34,818 |
BALANCE SHEET DETAILS - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jul. 02, 2016 |
---|---|---|
Accumulated other comprehensive income: | ||
Currency translation adjustments | $ 36,939 | $ 40,184 |
Unrealized gain on marketable securities | 5 | 0 |
Japan defined benefit plan | (363) | (363) |
Accumulated other comprehensive income | $ 36,581 | $ 39,821 |
POST-RETIREMENT BENEFITS - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 26, 2015 |
Dec. 31, 2016 |
Dec. 26, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions made under U.K. defined contribution pension scheme | $ 300,000 | $ 300,000 | $ 500,000 | $ 600,000 |
Japan Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total contribution provided | 100,000 | 100,000 | 300,000 | 200,000 |
Plan assets | 0 | |||
Accrued expenses and other liabilities | 100,000 | 100,000 | ||
Other non current liabilities | 6,200,000 | 6,200,000 | ||
Defined benefit plan, benefits paid | $ 100,000 | $ 0 | $ 200,000 | $ 100,000 |
POST-RETIREMENT BENEFITS - Net Periodic Pension Costs (Details) - Japan Plan - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 26, 2015 |
Dec. 31, 2016 |
Dec. 26, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 152 | $ 122 | $ 324 | $ 244 |
Interest cost | 1 | 11 | 2 | 21 |
Net periodic pension costs | $ 153 | $ 133 | $ 326 | $ 265 |
COMMITMENTS AND CONTINGENCIES - Movements in Warranty Accrual for Period (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 26, 2015 |
Dec. 31, 2016 |
Dec. 26, 2015 |
|
Warranty Provision Roll Forward: | ||||
Warranty provision—beginning of period | $ 4,600 | $ 3,168 | $ 3,827 | $ 2,932 |
Warranties issued | 437 | 353 | 1,542 | 857 |
Warranties utilized or expired | (371) | (435) | (655) | (688) |
Currency translation and other adjustments | (106) | 11 | (154) | (4) |
Warranty provision—end of period | $ 4,560 | $ 3,097 | $ 4,560 | $ 3,097 |
COMMITMENTS AND CONTINGENCIES - Summary of Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Fiscal Year Ending: | |
2017 (remaining) | $ 1,641 |
2018 | 1,172 |
2019 | 569 |
2020 | 604 |
2021 | 276 |
Thereafter | 13 |
Total minimum lease payments | 4,275 |
Less amount representing interest | (271) |
Present value of capitalized payments | 4,004 |
Less: current portion | (2,425) |
Long-term portion | $ 1,579 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 26, 2015 |
Dec. 31, 2016 |
Dec. 26, 2015 |
Jul. 02, 2016 |
|
Operating Loss Carryforwards [Line Items] | |||||
Income tax provision | $ 37 | $ 985 | $ 443 | $ 1,884 | |
Unrecognized tax benefits | 3,500 | 3,500 | $ 3,800 | ||
Estimated decrease in unrecognized tax benefits | 600 | 600 | |||
Unrecognized tax benefits that would affect effective tax rate | $ 2,900 | 2,900 | |||
Italy | |||||
Operating Loss Carryforwards [Line Items] | |||||
Release of reserve due to expiration of statute of limitations | $ 500 |
NET INCOME (LOSS) PER SHARE - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 26, 2015 |
Dec. 31, 2016 |
Dec. 26, 2015 |
|
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 30,267 | $ 157 | $ 33,618 | $ (3,353) |
Weighted-average shares - Basic (shares) | 165,822 | 110,296 | 149,151 | 109,877 |
Effect of dilutive potential common shares from: | ||||
Stock options and stock appreciation rights (shares) | 752 | 82 | 724 | 0 |
Restricted stock units and awards (shares) | 2,282 | 2,016 | 2,420 | 0 |
Convertible notes (shares) | 0 | 0 | 7,506 | 0 |
Weighted-average shares - Diluted (shares) | 168,856 | 112,394 | 159,801 | 109,877 |
Basic net income (loss) per share (in USD per share) | $ 0.18 | $ 0.00 | $ 0.23 | $ (0.03) |
Diluted net income (loss) per share (in USD per share) | $ 0.18 | $ 0.00 | $ 0.21 | $ (0.03) |
NET INCOME (LOSS) PER SHARE - Additional Information (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 26, 2015 |
Dec. 31, 2016 |
Dec. 26, 2015 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 0.8 | 36.2 | 0.8 | 39.9 |
GEOGRAPHIC INFORMATION, PRODUCT GROUPS AND CUSTOMER CONCENTRATION INFORMATION - Revenues by Product Group (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 26, 2015 |
Dec. 31, 2016 |
Dec. 26, 2015 |
|
Segment Information [Line Items] | ||||
Revenues | $ 153,914 | $ 94,129 | $ 289,406 | $ 181,679 |
100 Gb/s transmission modules | ||||
Segment Information [Line Items] | ||||
Revenues | 113,835 | 49,554 | 211,606 | 90,382 |
40 Gb/s and lower transmission modules | ||||
Segment Information [Line Items] | ||||
Revenues | $ 40,079 | $ 44,575 | $ 77,800 | $ 91,297 |
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