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Supplemental Financial Information
12 Months Ended
Jun. 30, 2024
Supplemental Financial Information Disclosure [Abstract]  
Supplemental Financial Information

Note 3. Supplemental Financial Information

Consolidated Balance Sheets

Financing receivables

 

A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset on the Company’s balance sheets. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year, are included in other assets on the consolidated balance sheets. The Company evaluates the credit quality of a customer at contract inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new orders and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the contract term and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. Actual cash collections may differ from the contracted maturities due to early customer buyouts, refinancing, or defaults. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near‑term risk of non‑payment. The Company performs an assessment each quarter on the allowance for credit losses related to its financing receivables.

A summary of the Company’s financing receivables is presented as follows (in thousands):

 

 

 

June 30, 2024

 

 

June 30, 2023

 

Financing receivable

 

$

2,871

 

 

$

5,854

 

Allowance for credit losses

 

 

 

 

 

(798

)

Total, net

 

$

2,871

 

 

$

5,056

 

Reported as:

 

 

 

 

 

 

Current

 

$

1,340

 

 

$

2,016

 

Non-current

 

 

1,531

 

 

 

3,040

 

Total, net

 

$

2,871

 

 

$

5,056

 

 

In the fourth quarter of fiscal year 2024, the Company wrote-off $0.8 million in financing receivables and related allowance for credit loss because the Company determined it would no longer be able to collect from the customer.

 

Inventories

Inventories consisted of the following (in thousands):

 

 

 

June 30,
2024

 

 

June 30,
2023

 

Raw materials

 

$

57,699

 

 

$

62,945

 

Work-in-process

 

 

13,629

 

 

 

17,469

 

Finished goods

 

 

66,996

 

 

 

64,736

 

Total inventories

 

$

138,324

 

 

$

145,150

 

 

The Company's inventories on the consolidated balance sheets are net of reserves.

 

Prepaid and Other Current Assets

Prepaid and other current assets consisted of the following (in thousands):

 

 

 

June 30,
2024

 

 

June 30,
2023

 

Value added tax receivables

 

$

4,026

 

 

$

12,023

 

Prepaid commissions

 

 

5,288

 

 

 

5,866

 

Capitalized contract costs

 

 

1,876

 

 

 

1,782

 

Income tax receivable

 

 

368

 

 

 

495

 

Dividend receivable from JV

 

 

2,460

 

 

 

 

Other prepaid assets

 

 

5,018

 

 

 

5,763

 

Other current assets

 

 

3,970

 

 

 

1,683

 

Total prepaid and other current assets

 

$

23,006

 

 

$

27,612

 

 

Property and Equipment, net

 

Property and equipment, net consisted of the following (in thousands):

 

 

 

June 30,
2024

 

 

June 30,
2023

 

Machinery and equipment

 

$

45,539

 

 

$

44,779

 

Leasehold improvements

 

 

30,994

 

 

 

26,641

 

Computer and office equipment

 

 

6,347

 

 

 

7,798

 

Software

 

 

11,308

 

 

 

5,191

 

Furniture and fixtures

 

 

1,719

 

 

 

1,581

 

Construction in progress

 

 

2,550

 

 

 

13,499

 

 

 

98,457

 

 

 

99,489

 

Less: Accumulated depreciation

 

 

(73,683

)

 

 

(78,563

)

Total property and equipment, net

 

$

24,774

 

 

$

20,926

 

 

At June 30, 2024, software includes $8.1 million in capitalized costs for the completed transition of the Company's new enterprise resource planning system in August 2023. At June 30, 2023, construction in progress included $7.5 million in capitalized costs for the development of internal use software. The Company will depreciate the cost associated with the enterprise resource planning system over five years. Depreciation expense related to property and equipment was $5.8 million, $4.4 million and $5.4 million, during the years ended June 30, 2024, 2023 and 2022, respectively.

 

Other Assets

Other assets consisted of the following (in thousands):

 

 

 

June 30,
2024

 

 

June 30,
2023

 

Capitalized contract costs

 

$

7,768

 

 

$

9,244

 

Long-term accounts receivable

 

 

2,859

 

 

 

4,734

 

Capitalized software costs to be sold

 

 

4,683

 

 

 

2,853

 

Deferred tax asset

 

 

659

 

 

 

860

 

Other long-term assets

 

 

1,981

 

 

 

2,416

 

Total other assets

 

$

17,950

 

 

$

20,107

 

 

There was no amortization expense or amounts written down to net realizable value for the capitalized software costs to be sold during the years ended June 30, 2024, 2023 and 2022, respectively.

 

Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):

 

 

 

June 30,
2024

 

 

June 30,
2023

 

Value added tax liabilities

 

$

5,202

 

 

$

12,709

 

Commissions due to third parties

 

 

5,048

 

 

 

10,499

 

Refunds due to customers

 

 

6,079

 

 

 

3,364

 

Accrued consulting

 

 

1,238

 

 

 

2,599

 

Accrued royalties

 

 

2,939

 

 

 

2,398

 

Interest payable

 

 

485

 

 

 

453

 

Income tax payable

 

 

1,206

 

 

 

900

 

Other liabilities

 

 

6,311

 

 

 

5,349

 

Total other accrued liabilities

 

$

28,508

 

 

$

38,271

 

 

Treasury Stock

The Company records treasury stock at cost. Treasury stock is comprised of shares of common stock purchased by the Company in the secondary market. As of June 30, 2024, and June 30, 2023, the Company had 3.1 million shares of treasury stock valued at $14.1 million. Treasury stock is included in Additional paid-in capital on the consolidated balance sheets.

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component (in thousands):

 

 

 

Cumulative Translation Adjustment

 

 

Defined
Pension
Benefit
Obligation

 

 

Total

 

Balance at June 30, 2022

 

$

(1,541

)

 

$

3,947

 

 

$

2,406

 

Other comprehensive loss

 

 

(791

)

 

 

(1,193

)

 

 

(1,984

)

Balance at June 30, 2023

 

$

(2,332

)

 

$

2,754

 

 

$

422

 

Other comprehensive loss

 

 

(2,445

)

 

 

(2,199

)

 

 

(4,644

)

Balance at June 30, 2024

 

$

(4,777

)

 

$

555

 

 

$

(4,222

)

 

Consolidated Statements of Operations

 

Other expense, net consisted of the following (in thousands):

 

 

 

Years Ended June 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Foreign currency transaction loss

 

$

(2,046

)

 

$

(878

)

 

$

(2,618

)

Other, net

 

 

(492

)

 

 

(232

)

 

 

356

 

Total other expense, net

 

$

(2,538

)

 

$

(1,110

)

 

$

(2,262

)

 

Restructuring Charges

In the second quarter of fiscal year 2024, the Company informed affected employees of a cost savings initiative to reduce operating expenses resulting in the elimination of approximately 5.9 percent of the Company’s global workforce. The Company recorded restructuring charges of $2.6 million in restructuring charges during fiscal year 2024. These charges are cash-based and are primarily related to severance expenses and other one-time termination benefits. At June 30, 2024, the Company has completed the cost savings initiative.

 

In the second quarter of fiscal year 2023, the Company announced a cost savings initiative designed to reduce operating costs. This cost savings initiative resulted in the reduction of the Company’s global workforce by 4.5%. The Company recorded $2.7 million in restructuring charges during fiscal year 2023. These charges were cash-based charges, primarily related to severance expenses and other one-time termination benefits. The Company did not have any remaining accruals related to this cost savings initiative as of June 30, 2023.