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<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The following tables summarize the Company’s short-term investments (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 42%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 42%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" style="border-bottom: #000000 2px solid; text-align: center; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortized</div>Cost</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Gross </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Unrealized</div>Gains</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Gross </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Unrealized</div>Losses</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" style="border-bottom: #000000 2px solid; 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padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25,184</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total short-term investments</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,247</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">15</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(20</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,242</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table><div> </div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 42%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Corporate bonds and commercial paper</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">26,359</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">9</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(5</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">26,363</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">U.S. Government agency securities</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,038</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">32</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total short-term investments</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,397</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">41</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(5</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,433</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
18290000
19718000
24071000
26359000
49247000
25176000
46397000
20038000
29529000
28107000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2. Basis of Presentation and Significant Accounting Policies</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The accompanying condensed consolidated financial statements as of September 30, 2016, and for the three months ended September 30, 2016 and 2015 have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement have been included.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The condensed consolidated balance sheet as of June 30, 2016 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2016. The results of operations for the three months ended September 30, 2016 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future periods.</div><div><br /></div><div style="background-color: #ffffff;"><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Correction of Prior Period Error</div><div><br /></div></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Subsequent to the issuance of the condensed consolidated financial statements as of and for the three months ended September 30, 2015, the Company determined installation revenue and related cost of revenue was being deferred and recognized over the contractual life for certain contracts that should have been recognized over the customer life. Accordingly, the accompanying condensed consolidated financial statements reflect the Company’s correction of the condensed consolidated statement of operations impact of the error for the three months ended September 30, 2015. As a result, hosted and related services revenue and cost of revenue were decreased by $0.1 million for the three months ended September 30, 2015. The correction did not affect the net cash provided by operating activities, net cash used in investing activities or net cash used in financing activities for the three months ended September 30, 2015. The correction did not affect the net income per share for the three months ended September 30, 2015. The foregoing corrections are not considered material by the Company.</div><div><br /></div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Computation of Net Income (Loss) per Share</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Basic net income (loss) per share is determined by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is determined by dividing net income by the weighted average number of common shares used in the basic income per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding under the treasury stock method. Dilutive securities of 5.2 million weighted shares and 3.0 million weighted shares were not included in the computation of diluted net income per share for the three months ended September 30, 2016 and 2015, respectively, because such securities were anti-dilutive.</div><div><br /></div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Concentration of Credit Risk</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, cash equivalents, short-term investments and accounts receivable. As of September 30, 2016, all of the Company’s cash, cash equivalents and short-term investments were managed by multiple financial institutions. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses.</font> Accounts receivable from one value-added distributor accounted for 38% of total accounts receivable at September 30, 2016. <font style="font-family: 'Times New Roman'; font-size: 10pt;">At June 30, 2016 the same value-added distributor accounted for 42% of the total accounts receivable</font>.</div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"> </div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Significant Accounting Policies</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The Company’s significant accounting policies are included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016.</div><div><br /></div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Recent Accounting Pronouncements</div><div><br /></div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Recent Accounting Standards or Updates Not Yet Effective</div><div><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In May 2014, the FASB issued ASU No. 2014-9 <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue from Contracts with Customers (Topic 606)</font> - an accounting standard that supersedes the revenue recognition requirements in <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Topic 605, Revenue Recognition</font>.  The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. The effective date of the new standard was deferred by one year by ASU No. 2015-14, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date</font>. In March 2016, the FASB issued ASU No. 2016-08<font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;"> Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, </font>which amends the guidance to clarify the implementation guidance on principal versus agent considerations (gross versus net revenue presentation). In April 2016, the FASB issued ASU No. 2016-10 <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue from Contracts with Customers (Topic 606):</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Identifying Performance Obligations and Licensing,</font> which amends the guidance with respect to certain implementation issues on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-11 <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 pursuant to Staff announcements at the March 3, 2016 EITF Meeting</font>, which rescinds from the FASB Accounting Standards Codification certain SEC paragraphs as a result of two SEC Staff Announcements at the March 3, 2016 meeting. In May 2016, the FASB issued ASU 2016-12, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients</font>, clarify certain narrow aspects of Topic 606 such as assessing the collectability criterion, presentation of sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications at transition, completed contracts at transition, and technical correction.<font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font>This accounting guidance is effective for the Company in annual financial reporting periods beginning after December 15, 2017; early adoption is permitted for periods beginning after December 15, 2016. ASU No. 2014-9 may be applied retrospectively (a) to each reporting period presented or (b) with the cumulative effect in retained earnings at the beginning of the adoption period. The Company is currently evaluating the method of adoption and the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div style="background-color: #ffffff;"><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In July 2015, the FASB issued ASU 2015-11, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Inventory (Topic 330):</font> <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Simplifying the Measurement of Inventory</font>. Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. This accounting guidance is effective for the Company in financial reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div style="background-color: #ffffff;"><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In February 2016, the FASB issued ASU 2016-02, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Leases (Topic 842)</font>, which supersedes the lease accounting requirements in Topic 840. This ASU requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The guidance also requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. This accounting guidance is effective for the Company in annual financial reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In March 2016, the FASB issued ASU 2016-09, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,</font> which is intended to simplify several aspects of the accounting for share-based payment transactions, including certain income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This accounting guidance is effective for the Company in annual financial reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div style="text-align: left; background-color: #ffffff; text-indent: 35.9pt; font-family: 'Times New Roman'; margin-left: 0.1pt; font-size: 10pt;"> </div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In June 2016, the FASB issued ASU 2016-13, </font><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Financial Instruments - Credit Losses </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Topic 326</font><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">):  Measurement of Credit Losses on Financial Instruments</font>, which changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. <font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses.</font> This accounting guidance is effective for the Company in financial reporting periods beginning after December 15, 2019. Early adoption is permitted in financial reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div style="background-color: #ffffff;"><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In August 2016, the FASB issued ASU 2016-15, </font><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">, which addresses </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities for certain cash receipts and cash payments. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The guidance is effective for financial reporting periods beginning after December 15, 2017 with early adoption permitted. </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</font></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Significant Accounting Policies</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The Company’s significant accounting policies are included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016.</div></div>
2015-11-16
2016-01-06
386000
933000
164000
3301000
1174000
966000
224000
227000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">3.</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Business Combinations</font></div><div><br /></div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">M5 Networks Australia Pty Ltd Acquisition</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">On November 16, 2015, the Company acquired all of the outstanding common stock of M5 Networks Australia Pty Ltd. (“M5 Australia”), a privately-held company based in Australia and a provider of hosted unified communications solutions, for a total cash consideration of $6.1 million (8.5 million Australian dollars). The acquisition accelerates the Company’s growth and expansion of providing hosted unified communications services in Australia.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In accordance with ASC 805, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Business Combinations</font>, the acquisition of M5 Australia was recorded as a purchase acquisition. Under the purchase method of accounting, the fair value of the consideration was allocated to assets and liabilities assumed at their fair values. The excess of the fair value of consideration paid over the fair values of net assets and liabilities acquired and identifiable intangible assets resulted in recognition of goodwill of approximately $5.2 million. The goodwill consists largely of expected expansion of the customer base and market share within the Australian hosted communications industry. The goodwill recorded is not deductible for income tax purposes.</div><div style="text-align: left; text-indent: 36pt; font-family: 'Times New Roman'; font-size: 10pt;"> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Purchase Price Allocation</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The total purchase price was allocated to M5 Australia’s net tangible and identifiable intangible assets based on their estimated fair values as of November 16, 2015 as set forth below. The following is the purchase price allocation (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(in thousands)</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Estimated useful lives<font style="font-family: 'Times New Roman'; font-size: 10pt;"><br /></font> (in years)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cash acquired</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">224</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other current assets</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">386</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Intangible assets:</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Customer relationships</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,300</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;">5</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Goodwill</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,210</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other long-term assets</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">164</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other liabilities assumed</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(1,174</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 46%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,110</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div><br /></div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Corvisa LLC Acquisition</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">On January 6, 2016, the Company acquired all of the outstanding membership interest in Corvisa LLC (“Corvisa”), a provider of cloud-based communications solutions, for total cash consideration of $8.7 million. The acquisition accelerates the Company’s growth and expansion of its hosted unified communications service offering.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In accordance with ASC 805, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Business Combinations</font>, the acquisition of Corvisa was recorded as a purchase acquisition. Under the purchase method of accounting, the fair value of the consideration was allocated to assets and liabilities assumed at their fair values. <font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">The fair value of purchased identifiable intangible assets was derived from model-based valuations from significant unobservable inputs (“Level 3 inputs”) determined by management. The fair value of purchased identifiable intangible assets was determined using the Company’s discounted cash flow models from operating projections prepared by management using a market participant rate of 35.0%. </font>The excess of the preliminary fair value of consideration paid over the preliminary fair values of net assets and liabilities acquired and identifiable intangible assets resulted in recognition of goodwill of approximately $1.5 million. The goodwill consists largely of expected expansion of the customer base and market share within hosted communications industry. The goodwill recorded is deductible for income tax purposes.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Preliminary Purchase Price Allocation</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The total purchase price was preliminarily allocated to Corvisa’s net tangible and identifiable intangible assets based on their estimated fair values as of January 6, 2016 as set forth below. The primary areas of the purchase price allocation that are not yet finalized relate to property and equipment, contingency accruals, deferred taxes and goodwill. The following is the preliminary purchase price allocation (in thousands):</div><div><br /></div><div><table align="center" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(in thousands)</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: center; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Estimated useful lives<font style="font-family: 'Times New Roman'; font-size: 10pt;"><br /></font> (in years)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cash acquired</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">227</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other current assets</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">933</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Intangible assets:</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Existing technology</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,400</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;">5</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Customer relationships</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">100</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;">3</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Favorable leases</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">178</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;">6</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Goodwill</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,489</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other long-term assets</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,301</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other liabilities assumed</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(966</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 46%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8,662</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Valuing certain components of the acquisition required us to make estimates that may be adjusted in the future, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. Consequently, the purchase price allocation is considered preliminary. Final determination of these estimates could result in an adjustment to the preliminary purchase price allocation, with an offsetting adjustment to goodwill. Measurement period adjustments <font style="font-family: 'Times New Roman'; font-size: 10pt;">will be recorded in the period in which the adjustment amounts are determined.</font></div></div>
1300000
3400000
100000
178000
6110000
8500000
8662000
534000
116000
53600000
58200000
61726000
54284000
82162000
96532000
14370000
-7442000
0
0
0
3533000
0
718000
718000
3533000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">13. Litigation, Commitments, Contingencies and Leases</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Litigation</font> — As of September 30, 2016, the Company was involved in litigation relating to claims arising out of the ordinary course of business or otherwise. Any litigation, regardless of outcome, is costly and time-consuming, can divert the attention of management and key personnel from business operations, deter distributors from selling the Company’s products and dissuade potential customers from purchasing the Company’s products. The Company defends itself vigorously against any such claims. Due to the uncertainty surrounding the litigation process, the Company is unable to estimate a range of loss, if any, at this time, however the Company does not believe a material loss is probable.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Contingencies — </font>During fiscal 2015 the Internal Revenue Service (“IRS”) issued a Notice of Proposed Adjustment (“NOPA”) resulting from a withholding tax audit of payments made to non-U.S. vendors during calendar years 2008 through 2012.  The NOPA asserts a liability for under-withheld taxes of approximately $2.0 million, plus related penalties and estimated interest of approximately $1.3 million. In connection with the asserted NOPA, the Company accrued $1.1 million for the liability during fiscal 2015, an additional $0.1 million during fiscal 2016 and a reversal of $0.1 million due to final settlement of this matter for $1.1 million during the three months ended September 30, 2016.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Leases</font> — The Company leases its facilities under noncancelable operating leases which expire at various times through fiscal 2023. The leases provide for the lessee to pay all costs of utilities, insurance, and taxes. Future minimum lease payments under the noncancelable operating leases as of September 30, 2016, are as follows (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="border-bottom: #000000 2px solid; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Years Ending June 30,</div></td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Operating </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Leases</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2017 (remaining 9 months)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,774</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2018</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,770</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2019</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,297</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2020</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,884</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2021</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,102</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">Therafter</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,724</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">Total minimum lease payments</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25,551</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Lease obligations for the Company’s foreign offices are denominated in foreign currencies, which were converted in the above table to U.S. dollars at the interbank exchange rate on September 30, 2016.</div><div><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Rent expense for the three months ended September 30, 2016 and 2015 was $1.5 million and $1.2 million, respectively.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Purchase commitments</font> — The Company had purchase commitments with contract manufacturers for inventory <font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">and with technology firms for usage of software licenses </font>totaling approximately $16.7 million as of September 30, 2016 and $15.4 million as of June 30, 2016.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="background-color: #ffffff; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Letters of credit </font><font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">— Outstanding letters of credit maintained by the Company totaled $635,000 as of September 30, 2016.</font></div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Indemnification — </font>Under the indemnification provisions of the Company’s customer agreements, the Company agrees to indemnify and defend its customers against infringement of any patent, trademark, or copyright or the misappropriation of any trade secret, arising from the customers’ legal use of the Company’s services. The exposure to the Company under these indemnification provisions is generally limited to the total amount paid by the customers under pertinent agreements. However, certain indemnification provisions potentially expose the Company to losses in excess of the aggregate amount received from the customer.</div><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;"> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The Company also has entered into customary indemnification agreements with each of its officers and directors.</div></div>
67517000
68044000
500000000
500000000
4191000
4569000
378000
3500000
0.001
0.001
67391000
67918000
379871000
382940000
2109000
-5672000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Concentration of Credit Risk</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, cash equivalents, short-term investments and accounts receivable. As of September 30, 2016, all of the Company’s cash, cash equivalents and short-term investments were managed by multiple financial institutions. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses.</font> Accounts receivable from one value-added distributor accounted for 38% of total accounts receivable at September 30, 2016. <font style="font-family: 'Times New Roman'; font-size: 10pt;">At June 30, 2016 the same value-added distributor accounted for 42% of the total accounts receivable</font>.</div></div>
0.38
0.42
0.24
0.26
32013000
31951000
4705000
4659000
13481000
10189000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">6. Line of Credit</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">On October 22, 2014 the Company entered into an Amended and Restated Credit Agreement <font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">which was further amended on December 1, 2014 and again on August 5, 2015 </font>(“Credit Facility”)<font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">. </font>This Credit Facility replaces the Company’s previous credit facility. The Credit Facility includes a revolving loan facility for an aggregate principal amount not exceeding $100.0 million. The Credit Facility matures on October 22, 2019 and is payable in full upon maturity. The amounts borrowed and repaid under the Credit Facility are available for future borrowings.  The borrowings under the Credit Facility accrue interest (at the election of the Company) either at (i) the London interbank offered rate then in effect, plus a margin of between 1.50% and 2.25%, which is based on the Company’s consolidated EBITDA (as defined in the Credit Facility), or (ii) the higher of (a) the bank’s publicly-announced prime rate then in effect and (b) the federal funds rate plus 0.50%, in each case of (a) or (b), plus a margin of between 0.00% and 0.50%, which will be based upon the Company’s consolidated EBITDA. The Company also pays annual commitment fees during the term of the Credit Facility which varies depending on the Company’s consolidated EBITDA. The Credit Facility is secured by substantially all of the Company’s assets. As of September 30, 2016, the Company had $54.0 million available for borrowing under the Credit Facility.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The Credit Facility contains customary affirmative and negative covenants, including compliance with financial ratios and metrics. The Credit Facility and the related amendment requires the Company to maintain a minimum ratio of liquidity to its indebtedness (each as defined in the Credit Facility) and varying amounts of Liquidity and Consolidated EBITDA specified in the Credit Facility throughout the term of the agreement. The Company was in compliance with all such covenants as of September 30, 2016.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">As of September 30, 2016, no amounts were outstanding under the Credit Facility. The Company amortizes deferred financing costs to interest expense on a straight-line basis over the term of the Credit Facility.</div></div>
0.005
0
0.005
0.0225
0.015
0
0.005
57404000
56765000
77924000
12807000
5433000
77705000
59423000
59465000
5279000
13222000
20520000
20940000
5409000
4833000
3200000
2900000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">15. Derivative Instruments and Hedging Activities</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In the normal course of business, the Company is exposed to fluctuations in interest rates and the exchange rates associated with foreign currencies. During the three months ended September 30, 2016, the Company used derivative instruments to reduce the volatility of earnings associated with changes in foreign currency exchange rates. The Company used foreign exchange forward contracts to mitigate the gains and losses generated from the re-measurement of certain foreign monetary assets and liabilities, primarily including cash balances, third party accounts receivable and intercompany transactions recorded on the balance sheet. These derivatives are not designated and do not qualify as hedge instruments. Accordingly, changes in the fair value of these instruments are recognized in other income and expenses during the period of change. These derivatives have maturities of approximately one month. The foreign exchange forward contracts outstanding as of September 30, 2016 were entered into by the Company on the last business day of the period. Given the relatively short duration such contracts are outstanding in relation to changes in potential market rates; the change in the fair value is not material and is not reflected either as an asset or a liability.</div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The following table presents the gross notional value of all of the Company’s foreign exchange forward contracts outstanding as of September 30, 2016 and June 30, 2016 (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: middle;"></td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Local Currency </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Notional Contract </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount (USD)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Australian dollar</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,480</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,117</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">British pound</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">£</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,810</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,336</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Canadian dollar</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">790</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">599</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Euro</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">€</div></td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">840</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">941</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,993</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table><div> </div><table align="center" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: middle;"></td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Local Currency </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Notional Contract </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount (USD)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Australian dollar</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,800</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,316</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">British pound</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">£</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">830</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,088</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Canadian dollar</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">940</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Euro</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">€</div></td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,500</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,650</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,772</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
P1M
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">9. Stock-Based Compensation</div><div><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The following table shows total non-cash stock-based compensation expense included in the accompanying condensed consolidated statements of operation for the three months ended September 30, 2016 and 2015 (in thousands):</div><div> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 80%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 56%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</div>September 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 56%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2015</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cost of product revenue</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">29</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cost of hosted and related services revenue</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">85</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">384</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cost of support and services revenue</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">126</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">212</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Research and development</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">676</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">487</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Sales and marketing</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">959</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">862</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">General and administrative</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,336</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">798</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,207</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,772</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The Company estimated the grant date fair value of stock option awards and purchase rights under the 2007 Employee Stock Purchase Plan (“2007 ESPP”) rights using the Black-Scholes option valuation model with the following assumptions:</div><div><br /></div><div style="text-align: left;"><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 76%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 76%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2015</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 76%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected life from grant date of option (in years)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5.15</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5.13</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 76%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected life from grant date of ESPP (in years)</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0.50</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0.50</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 76%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Risk free interest rate for options</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1.13</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1.55</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 76%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Risk free interest rate for ESPP</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0.40</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0.14</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 76%; vertical-align: middle;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected volatility for options</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">45</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">48</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 76%; vertical-align: middle;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected volatility for ESPP</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">37</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">35</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 76%; vertical-align: middle;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected dividend yield</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr></table></div><div style="text-align: left; text-indent: 18pt;"> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Compensation expense is recognized only for the portion of stock options that are expected to vest, assuming an expected forfeiture rate in determining stock-based compensation expense, which could affect the stock-based compensation expense recorded if there is a significant difference between actual and estimated forfeiture rates. As of September 30, 2016, total unrecognized compensation cost related to stock-based options and awards granted to employees and non-employee directors was $12.4 million. This cost will be amortized on a ratable basis over a weighted-average vesting period of approximately 3.0 years.</div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">At September 30, 2016, the Company has reserved shares of common stock for issuance as follows (in thousands):</div><div> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 80%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="background-color: #cceeff; width: 68%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Reserved under stock option plans</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,191</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 68%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Reserved under employee stock purchase plan</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">378</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 68%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,569</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Computation of Net Income (Loss) per Share</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Basic net income (loss) per share is determined by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is determined by dividing net income by the weighted average number of common shares used in the basic income per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding under the treasury stock method. Dilutive securities of 5.2 million weighted shares and 3.0 million weighted shares were not included in the computation of diluted net income per share for the three months ended September 30, 2016 and 2015, respectively, because such securities were anti-dilutive.</div></div>
0.03
-0.08
-0.08
0.03
14493000
18925000
P3Y
12400000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">5. Fair Value Disclosure</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. Further, entities are required to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows:</div><div><br /></div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td style="width: 27pt;"> </td><td style="width: 18.35pt; font-family: 'Times New Roman'; font-size: 10pt; vertical-align: top; align: right;">•</td><td style="text-align: left; vertical-align: top;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">Level 1 — Quoted prices in active markets for identical assets or liabilities.</div></td></tr></table></div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td style="width: 27pt;"></td><td style="width: 18.35pt; font-family: 'Times New Roman'; font-size: 10pt; vertical-align: top; align: right;">•</td><td style="text-align: left; vertical-align: top;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">Level 2 — Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means.</div></td></tr></table></div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td style="width: 27pt;"></td><td style="width: 18.35pt; font-family: 'Times New Roman'; font-size: 10pt; vertical-align: top; align: right;">•</td><td style="text-align: left; vertical-align: top;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">Level 3 — Unobservable inputs that are supported by little or no market activity, are significant to the fair value of the assets or liabilities, and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.</div></td></tr></table></div><div style="text-align: left;"> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The tables below set forth the Company’s financial instruments and liabilities measured at fair value on a recurring basis (in thousands):</div><div> </div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Assets:</div></td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cash and cash equivalents:</div></td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Money market funds</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Short-term investments:</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Corporate notes and commercial paper</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,058</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,058</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">U.S. Government agency securities</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25,184</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25,184</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total assets measured and recorded at fair value</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,960</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,242</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The above table excludes $53.6 million of cash balances on deposit at banks.</div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman'; font-size: 10pt;"> </div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Assets:</div></td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cash and cash equivalents:</div></td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Money market funds</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,533</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,533</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Short-term investments:</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Corporate notes and commercial paper</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">26,363</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">26,363</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">U.S. Government agency securities</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total assets measured and recorded at fair value</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,966</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,533</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,433</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The above table excludes $58.2 million of cash balances on deposit at banks.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. Short-term investments are classified within Level 2 of the fair value hierarchy because they are valued based on other observable inputs, including broker or dealer quotations, or alternative pricing sources. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from independent pricing services. Non-binding quotes are based on proprietary valuation models prepared by independent pricing services. These models use algorithms based on inputs such as observable market data, quoted market prices for similar instruments, historical pricing trends of a security as relative to its peers, internal assumptions of the independent pricing service and statistically supported models. The Company corroborates the reasonableness of non-binding quotes received from the independent pricing service by comparing them to the (a) actual experience gained from the purchases and redemption of investment securities, (b) quotes received on similar securities obtained when purchasing securities and (c) monitoring changes in ratings of similar securities and the related impact on the fair value. The types of instruments valued based on other observable inputs include U.S. government agency securities, corporate notes and commercial paper. The Company reviewed financial and non-financial assets and liabilities and concluded that there were no other-than-temporary impairment charges during the three months ended September 30, </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">2016 and 2015</font><font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">.</font> <font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">The Company reviews the fair value hierarchy on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels of certain securities within the fair value hierarchy. The Company recognizes transfers into and out of levels within the fair </font>value hierarchy as of the date in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1 and Level 2 of the fair value hierarchy for any of the periods presented.</div><div><br /></div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Non-financial assets such as goodwill, intangible assets, and property, plant, and equipment are evaluated for impairment and adjusted to fair value using Level 3 inputs, only when impairment is recognized. Fair values are considered Level 3 when management makes significant assumptions in developing a discounted cash flow model based upon a number of considerations including projections of revenues, earnings and a discount rate. In addition, in evaluating the fair value of goodwill impairment, further corroboration is obtained using the Company’s market capitalization. There were no indicators of impairment during <font style="font-family: 'Times New Roman'; font-size: 10pt;">the three months ended September 30, 2016 and 2015 </font>that required a nonrecurring fair value analysis to be performed on non-financial assets.</div></div>
13000
5513000
10187000
6763000
16675000
156000
464000
9292000
18788000
163000
527000
7911000
3919000
44083000
14513000
23523000
15000
41970000
22000
24671000
15408000
3982000
4446000
178000
24700000
178000
31434000
4446000
31434000
24700000
60758000
60758000
P5Y
P5Y
P6Y
P3Y
P8Y
P2Y
5395000
477000
1267000
4010000
10451000
10115000
129449000
129449000
5210000
1489000
58012000
54323000
2008
2012
2000000
-5507000
2517000
1300000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">7. Income Taxes</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The Company recorded an income tax provision of $0.1 million and $0.4 million for the three months ended September 30, 2016 and 2015, respectively. These income tax provisions are primarily comprised of state taxes and foreign income taxes. No income tax benefit was accrued for jurisdictions where the Company anticipates incurring a loss during the full fiscal year as the related deferred tax assets were fully offset by a valuation allowance.  The Company’s resulting effective tax rate differs from the applicable statutory rate primarily due to the valuation allowance against its deferred tax assets in select jurisdictions.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The Company maintains liabilities for uncertain tax positions. As of September 30, 2016 and June 30, 2016, the Company’s total amount of unrecognized tax benefits was $6.5 million and $6.3 million, respectively. Of the total of $6.5 million of unrecognized tax benefit as of September 30, 2016, $0.2 million, if recognized, would impact the effective tax rate. The Company does not expect its unrecognized tax benefits to change materially over the next 12 months.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">While management believes that the Company has adequately provided for all tax positions, amounts asserted by tax authorities could be greater or less than the Company’s current position. Accordingly, the Company’s provisions for federal, state and foreign tax related matters to be recorded in the future may change as revised estimates are made or as the underlying matters are settled or otherwise resolved.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The Company’s primary tax jurisdiction is in the United States. For federal and state tax purposes, the tax years 2002 through 2015 remain open and subject to tax examination by the appropriate federal or state taxing authorities.</div></div>
124000
403000
648000
270000
-1100000
1303000
-8723000
-7917000
724000
-5306000
-1699000
3008000
2861000
219000
-713000
-4432000
200000
611000
1984000
-383000
16675000
18788000
117000
124000
12000
6000
12488000
15475000
13860000
10754000
57000
57000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The following table summarizes the maturities of the Company’s fixed income securities (in thousands): </div><div> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 60%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 36%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 36%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortized </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Cost</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" style="border-bottom: #000000 2px solid; text-align: center; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="width: 36%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Less than 1 year</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">29,529</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">29,519</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Due in 1 to 3 years</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">19,718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">19,723</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,247</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,242</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table><div> </div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 60%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 36%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 36%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortized </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Cost</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" style="border-bottom: #000000 2px solid; text-align: center; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="width: 36%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Less than 1 year</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">28,107</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">28,114</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Due in 1 to 3 years</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">18,290</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">18,319</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,397</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,433</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
635000
131418000
139609000
342338000
331544000
114936000
107157000
0
2019-10-22
100000000
54000000
1100000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">1. Description of Business</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">ShoreTel, Inc. was incorporated in California on September 17, 1996 and reincorporated in Delaware on June 22, 2007. ShoreTel, Inc. and its subsidiaries (“the Company”) </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">is a leading provider of brilliantly simple business communication solutions, comprised of integrated voice, video, data and mobile applications based on Internet Protocol (“IP”) technologies.</font> The Company focuses on the small and medium sized businesses, with a Unified Communications (“UC”) platform that allows them to communicate anytime, anyplace and through any device that they choose. The Company’s strategy is to provide customers with a flexible choice of deployment options: either operating the Company’s solution by subscribing to our cloud-based communication services, in their own onsite data centers or a hybrid combination of both.</div></div>
-5119000
-6157000
-147000
-77000
19566000
-1138000
2114000
-5631000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Recent Accounting Pronouncements</div><div><br /></div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; margin-left: 27pt; font-size: 10pt; font-weight: bold;">Recent Accounting Standards or Updates Not Yet Effective</div><div><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In May 2014, the FASB issued ASU No. 2014-9 <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue from Contracts with Customers (Topic 606)</font> - an accounting standard that supersedes the revenue recognition requirements in <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Topic 605, Revenue Recognition</font>.  The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. The effective date of the new standard was deferred by one year by ASU No. 2015-14, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date</font>. In March 2016, the FASB issued ASU No. 2016-08<font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;"> Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, </font>which amends the guidance to clarify the implementation guidance on principal versus agent considerations (gross versus net revenue presentation). In April 2016, the FASB issued ASU No. 2016-10 <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue from Contracts with Customers (Topic 606):</font><font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Identifying Performance Obligations and Licensing,</font> which amends the guidance with respect to certain implementation issues on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-11 <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 pursuant to Staff announcements at the March 3, 2016 EITF Meeting</font>, which rescinds from the FASB Accounting Standards Codification certain SEC paragraphs as a result of two SEC Staff Announcements at the March 3, 2016 meeting. In May 2016, the FASB issued ASU 2016-12, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients</font>, clarify certain narrow aspects of Topic 606 such as assessing the collectability criterion, presentation of sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications at transition, completed contracts at transition, and technical correction.<font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font>This accounting guidance is effective for the Company in annual financial reporting periods beginning after December 15, 2017; early adoption is permitted for periods beginning after December 15, 2016. ASU No. 2014-9 may be applied retrospectively (a) to each reporting period presented or (b) with the cumulative effect in retained earnings at the beginning of the adoption period. The Company is currently evaluating the method of adoption and the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div style="background-color: #ffffff;"><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In July 2015, the FASB issued ASU 2015-11, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Inventory (Topic 330):</font> <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Simplifying the Measurement of Inventory</font>. Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. This accounting guidance is effective for the Company in financial reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div style="background-color: #ffffff;"><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In February 2016, the FASB issued ASU 2016-02, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Leases (Topic 842)</font>, which supersedes the lease accounting requirements in Topic 840. This ASU requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The guidance also requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. This accounting guidance is effective for the Company in annual financial reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">In March 2016, the FASB issued ASU 2016-09, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,</font> which is intended to simplify several aspects of the accounting for share-based payment transactions, including certain income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This accounting guidance is effective for the Company in annual financial reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div style="text-align: left; background-color: #ffffff; text-indent: 35.9pt; font-family: 'Times New Roman'; margin-left: 0.1pt; font-size: 10pt;"> </div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In June 2016, the FASB issued ASU 2016-13, </font><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Financial Instruments - Credit Losses </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">(Topic 326</font><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">):  Measurement of Credit Losses on Financial Instruments</font>, which changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. <font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses.</font> This accounting guidance is effective for the Company in financial reporting periods beginning after December 15, 2019. Early adoption is permitted in financial reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</div><div style="background-color: #ffffff;"><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt;">In August 2016, the FASB issued ASU 2016-15, </font><font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">, which addresses </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities for certain cash receipts and cash payments. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The guidance is effective for financial reporting periods beginning after December 15, 2017 with early adoption permitted. </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company is currently evaluating the impact that the adoption of this accounting guidance may have on its consolidated financial statements.</font></div></div>
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2002
2015
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54795000
59580000
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1500000
5297000
-5257000
3217000
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2102000
5581000
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15404000
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19922000
20323000
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73462000
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53070000
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20000
75000
15400000
16700000
14000
9000
13837000
16691000
-176359000
-181990000
8047000
P6Y9M22D
0.85
0.85
P7Y2M23D
P5Y7M28D
18641000
P0Y6M
P5Y1M17D
P0Y6M
P5Y1M24D
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The estimated amortization expenses for intangible assets as of September 30, 2016 for the next five years and thereafter are as follows (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 60%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="border-bottom: #000000 2px solid; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Years Ending June 30,</div></td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2017 (remaining 9 months)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,395</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2018</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,513</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2019</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,010</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2020</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,267</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2021</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">477</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Thereafter</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">13</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">16,675</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
90025000
86274000
82671000
7354000
6694000
79580000
19090000
18803000
41533000
31849000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Information regarding RSAs and RSUs outstanding at September 30, 2016 is summarized below:</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 54%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Number of Shares </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(thousands)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Weighted Average </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Remaining </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Contractual Lives</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Aggregate Intrinsic </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Value<font style="font-family: 'Times New Roman'; font-size: 10pt;"><br /></font> (thousands)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 54%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Shares outstanding</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,330</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1.93</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">18,641</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 54%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Shares expected to vest</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,298</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1.56</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">10,388</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The following table presents the gross notional value of all of the Company’s foreign exchange forward contracts outstanding as of September 30, 2016 and June 30, 2016 (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: middle;"></td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Local Currency </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Notional Contract </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount (USD)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Australian dollar</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,480</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,117</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">British pound</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">£</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,810</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,336</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Canadian dollar</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">790</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">599</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Euro</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">€</div></td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">840</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">941</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,993</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table><div> </div><table align="center" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; margin-left: 27pt; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: middle;"></td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"></td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Local Currency </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Notional Contract </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount (USD)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Australian dollar</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,800</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,316</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">British pound</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">£</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">830</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,088</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Canadian dollar</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">940</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Euro</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">€</div></td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,500</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,650</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,772</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Transactions under the Company’s equity incentive plans are summarized as follows (in thousands, except per share data and contractual term):</div><div><br /></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; text-indent: -9pt; margin-left: 9pt; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Options Outstanding</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; text-indent: -9pt; margin-left: 9pt; vertical-align: middle;"> </td><td rowspan="2" valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" rowspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Shares </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Subject to </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Options </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Outstanding</div></td><td nowrap="nowrap" rowspan="2" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td rowspan="2" valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" rowspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Weighted- </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Average </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Exercise </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Price</div></td><td nowrap="nowrap" rowspan="2" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" rowspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Weighted- </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Average </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Remaining </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Contractual </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Term</div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(in years)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td rowspan="2" valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" rowspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Aggregate </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Intrinsic </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Value</div></td><td nowrap="nowrap" rowspan="2" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; text-indent: -9pt; margin-left: 9pt; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Balance at July 1, 2016</div></td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,268</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.31</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 18pt; font-size: 10pt;">Options granted (weighted average fair value $3.27 per share)</div></td><td valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,352</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8.00</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #ffffff; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 18pt; font-size: 10pt;">Options exercised</div></td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(232</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4.77</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 18pt; font-size: 10pt;">Options cancelled/forfeited</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(222</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.66</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Balance at September 30, 2016</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,166</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.67</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7.23</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">10,460</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Vested and expected to vest at September 30, 2016</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,889</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.48</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.81</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">9,826</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Options exercisable at September 30, 2016</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,741</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.04</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5.66</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8,047</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div>The following presents total revenue by geographic region (in thousands):</div><div style="text-align: left; text-indent: 22.5pt;"><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</div>September 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2015</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">United States of America</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">79,580</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">82,671</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">International</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,694</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,354</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">86,274</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">90,025</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div> </div><div style="text-align: left; text-indent: 27.35pt; font-family: 'Times New Roman'; font-size: 10pt;">The following presents a summary of long-lived assets, excluding deferred tax assets, other assets, goodwill and intangible assets (in thousands):</div><div style="text-align: left; text-indent: 27.35pt; font-family: 'Times New Roman'; font-size: 10pt;"> </div><div><table align="center" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30,</div>2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30,</div>2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">United States of America</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">19,922</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,323</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">International</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,174</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,228</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">21,096</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">21,551</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The Company estimated the grant date fair value of stock option awards and purchase rights under the 2007 Employee Stock Purchase Plan (“2007 ESPP”) rights using the Black-Scholes option valuation model with the following assumptions:</div><div><br /></div><div style="text-align: left;"><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 76%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 76%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2015</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 76%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected life from grant date of option (in years)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5.15</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5.13</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 76%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected life from grant date of ESPP (in years)</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0.50</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0.50</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 76%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Risk free interest rate for options</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1.13</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1.55</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 76%; vertical-align: bottom;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Risk free interest rate for ESPP</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0.40</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0.14</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 76%; vertical-align: middle;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected volatility for options</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">45</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">48</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 76%; vertical-align: middle;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected volatility for ESPP</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">37</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">35</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 76%; vertical-align: middle;"><div style="text-align: left; text-indent: -7.2pt; font-family: 'Times New Roman'; margin-left: 7.2pt; font-size: 10pt;">Expected dividend yield</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">0</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">%</div></td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">RSA and RSU activity for the three months ended September 30, 2016 and 2015 is as follows (in thousands):</div><div> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</div>September 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2015</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Beginning outstanding</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,927</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,452</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Awarded</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">982</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">822</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Released</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(452</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(386</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Forfeited</div></td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(127</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(53</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Ending outstanding</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,330</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,835</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The tables below set forth the Company’s financial instruments and liabilities measured at fair value on a recurring basis (in thousands):</div><div> </div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Assets:</div></td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cash and cash equivalents:</div></td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Money market funds</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Short-term investments:</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Corporate notes and commercial paper</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,058</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,058</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">U.S. Government agency securities</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25,184</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25,184</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total assets measured and recorded at fair value</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,960</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,242</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The above table excludes $53.6 million of cash balances on deposit at banks.</div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman'; font-size: 10pt;"> </div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Assets:</div></td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cash and cash equivalents:</div></td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Money market funds</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,533</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,533</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Short-term investments:</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Corporate notes and commercial paper</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">26,363</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">26,363</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">U.S. Government agency securities</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total assets measured and recorded at fair value</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,966</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,533</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,433</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div>The following is the purchase price allocation (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(in thousands)</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Estimated useful lives<font style="font-family: 'Times New Roman'; font-size: 10pt;"><br /></font> (in years)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cash acquired</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">224</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other current assets</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">386</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Intangible assets:</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Customer relationships</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,300</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;">5</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Goodwill</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,210</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other long-term assets</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">164</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other liabilities assumed</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(1,174</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 46%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,110</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div>The following is the preliminary purchase price allocation (in thousands):</div><div><br /></div><div><table align="center" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(in thousands)</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: center; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Estimated useful lives<font style="font-family: 'Times New Roman'; font-size: 10pt;"><br /></font> (in years)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cash acquired</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">227</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other current assets</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">933</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Intangible assets:</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Existing technology</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,400</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;">5</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Customer relationships</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">100</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;">3</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Favorable leases</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">178</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;">6</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Goodwill</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,489</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other long-term assets</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,301</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Other liabilities assumed</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(966</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 46%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8,662</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Intangible assets consist of the following (in thousands):</div><div style="text-align: left;"><br /></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="10" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="10" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Gross</div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Carrying</div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Accumulated </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortization</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Net</font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Carrying </font></div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Gross</font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Carrying</font></div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Accumulated </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortiza<font style="font-family: 'Times New Roman'; font-size: 10pt;">tion</font></div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Net</font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Carrying </font></div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Patents</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,446</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(3,982</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">464</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,446</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(3,919</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">527</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Technology</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">31,434</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(24,671</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,763</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">31,434</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(23,523</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,911</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Customer relationships</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,700</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(15,408</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">9,292</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,700</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(14,513</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">10,187</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Intangible assets in process and other</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">178</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(22</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">156</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">178</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(15</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">163</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Intangible assets</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">60,758</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(44,083</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">16,675</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">60,758</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(41,970</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">18,788</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div>Future minimum lease payments under the noncancelable operating leases as of September 30, 2016, are as follows (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="border-bottom: #000000 2px solid; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Years Ending June 30,</div></td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Operating </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Leases</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2017 (remaining 9 months)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,774</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2018</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,770</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2019</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,297</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2020</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,884</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">2021</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,102</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">Therafter</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,724</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 58%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">Total minimum lease payments</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25,551</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The following table shows total non-cash stock-based compensation expense included in the accompanying condensed consolidated statements of operation for the three months ended September 30, 2016 and 2015 (in thousands):</div><div> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 80%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 56%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</div>September 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 56%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2015</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cost of product revenue</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">29</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cost of hosted and related services revenue</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">85</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">384</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Cost of support and services revenue</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">126</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">212</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Research and development</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">676</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">487</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Sales and marketing</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">959</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">862</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">General and administrative</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,336</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">798</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 56%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,207</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,772</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">14. Segment Information</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">ASC Topic 280, <font style="font-style: italic; font-family: 'Times New Roman'; font-size: 10pt;">Segment Reporting</font>, establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker or decision making group in deciding how to allocate resources and in assessing performance.<font style="font-family: 'Times New Roman'; font-size: 10pt;"> </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">The Company’s chief operating decision-maker is its Chief Executive Officer (“CEO”). The CEO reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. On this basis, the Company is organized and operates in a single segment: the design, development, marketing, and sale of </font><font style="font-family: 'Times New Roman'; font-size: 10pt;">enterprise communication solutions</font><font style="font-family: 'Times New Roman'; font-size: 10pt;">.</font></div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Revenue by geographic region is based on the ship to address on the customer order. The following presents total revenue by geographic region (in thousands):</div><div style="text-align: left; text-indent: 22.5pt;"><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</div>September 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2015</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">United States of America</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">79,580</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">82,671</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">International</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,694</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,354</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">86,274</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">90,025</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div> </div><div style="text-align: left; background-color: #ffffff; text-indent: 27.35pt; font-family: 'Times New Roman'; font-size: 10pt;">Revenue from one value-added distributor accounted for approximately 24% and 26% of the total revenue during the three months ended September 30, 2016 and 2015, respectively.</div><div><br /></div><div style="text-align: left; text-indent: 27.35pt; font-family: 'Times New Roman'; font-size: 10pt;">The Company’s assets are primarily located in the United States of America and not allocated to any specific region; furthermore, the Company does not measure the performance of its geographic regions based upon asset-based metrics.</div><div><br /></div><div style="text-align: left; text-indent: 27.35pt; font-family: 'Times New Roman'; font-size: 10pt;">The following presents a summary of long-lived assets, excluding deferred tax assets, other assets, goodwill and intangible assets (in thousands):</div><div style="text-align: left; text-indent: 27.35pt; font-family: 'Times New Roman'; font-size: 10pt;"> </div><div><table align="center" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30,</div>2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30,</div>2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">United States of America</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">19,922</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,323</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">International</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,174</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,228</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">21,096</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">21,551</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
30843000
32489000
3207000
2772000
862000
126000
85000
212000
1336000
384000
29000
959000
798000
25000
676000
487000
8.00
P1Y11M5D
4.77
1352000
6.66
822000
982000
127000
53000
1927000
1452000
2330000
1835000
6.04
0.0113
0.0014
0.004
0.0155
3741000
500000
600000
386000
452000
0
0
0.35
0.48
0.37
0.45
6.31
6.67
222000
9826000
6268000
7166000
6.48
5889000
10460000
3.27
46433000
49242000
0
232000
200126000
202729000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">15. Subsequent Event</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">On August 18, 2016, the Board of Directors approved the 2016 Employee Stock Purchase Plan (“2016 ESPP”), subject to stockholder approval at the annual meeting on November 9, 2016. The 2016 ESPP is the successor to the 2007 ESPP which terminated automatically in October 2016 upon the issuance of all shares of our common stock reserved for issuance thereunder. A total of 3.5 million shares of our common stock will be reserved for issuance under the 2016 ESPP and the automatic share reserve, also known as an “evergreen” provision, which was in the 2007 ESPP, will be eliminated. Offering periods are six-months long and employees will be able to purchase shares of our common stock at a purchase price of the lower of 85% of the fair market value of our common stock on the first day of an offering period or on the purchase date (the last day of the applicable offering period).</div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">4. Balance Sheet Details</div><div><br /></div><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">Balance sheet components consist of the following:</div><div> </div><div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 80%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30,</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(in thousands)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="width: 56%; vertical-align: middle;"><div style="text-align: left; font-style: italic; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Inventories:</div></td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Raw materials</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">57</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">57</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Distributor inventory</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,558</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,677</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Finished goods</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">13,860</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">10,754</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 54pt; font-size: 10pt;">Total inventories</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">15,475</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">12,488</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; font-style: italic; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Property and equipment:</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Computer equipment and tooling</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">53,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">50,933</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Software</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,772</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,328</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Furniture and fixtures</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,800</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,880</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Leasehold improvements and others</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8,820</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8,836</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 54pt; font-size: 10pt;">Total property and equipment</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">73,462</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">70,977</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Less accumulated depreciation and amortization</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(52,366</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(49,426</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 54pt; font-size: 10pt;">Property and equipment, net</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">21,096</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">21,551</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; font-style: italic; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Deferred revenue:</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Product</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,279</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,433</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Support and services</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">59,423</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">59,465</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Hosted and related services</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">13,222</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">12,807</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 54pt; font-size: 10pt;">Total deferred revenue</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">77,924</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">77,705</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div style="clear: both;"><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Depreciation expense for the three months ended September 30, 2016 and 2015 was $3.2 million and $2.9 million, respectively.</div><div><br /></div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Intangible Assets:</div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Intangible assets consist of the following (in thousands):</div><div style="text-align: left;"><br /></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="10" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="10" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Gross</div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Carrying</div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Accumulated </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortization</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Net</font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Carrying </font></div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Gross</font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Carrying</font></div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Accumulated </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortiza<font style="font-family: 'Times New Roman'; font-size: 10pt;">tion</font></div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;"><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Net</font><font style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Carrying </font></div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amount</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Patents</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,446</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(3,982</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">464</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,446</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(3,919</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">527</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Technology</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">31,434</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(24,671</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,763</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">31,434</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(23,523</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,911</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Customer relationships</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,700</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(15,408</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">9,292</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,700</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(14,513</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">10,187</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Intangible assets in process and other</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">178</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(22</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">156</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">178</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(15</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">163</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 28%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Intangible assets</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">60,758</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(44,083</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">16,675</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">60,758</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(41,970</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">18,788</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The intangible assets that are amortizable have estimated useful lives of two to eight years.</div><div style="text-align: left; text-indent: 24.5pt; font-family: 'Times New Roman'; font-size: 10pt;"> </div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Amortization of intangible assets for the three months ended September 30, 2016 and 2015 was $2.1 million and $1.9 million, respectively.</div><div style="text-align: left; text-indent: 24.5pt;"><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The estimated amortization expenses for intangible assets as of September 30, 2016 for the next five years and thereafter are as follows (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 60%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="border-bottom: #000000 2px solid; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Years Ending June 30,</div></td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2017 (remaining 9 months)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,395</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2018</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,513</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2019</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,010</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2020</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,267</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">2021</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">477</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Thereafter</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">13</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 48%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">16,675</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div> </div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Short-Term Investments:</div><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The following tables summarize the Company’s short-term investments (in thousands):</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 42%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 42%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" style="border-bottom: #000000 2px solid; text-align: center; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortized</div>Cost</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Gross </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Unrealized</div>Gains</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Gross </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Unrealized</div>Losses</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" style="border-bottom: #000000 2px solid; text-align: center; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="width: 42%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Corporate bonds and commercial paper</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,071</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(17</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">24,058</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">U.S. Government agency securities</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25,176</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">11</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(3</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">25,184</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total short-term investments</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,247</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">15</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(20</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,242</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table><div> </div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 42%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Corporate bonds and commercial paper</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">26,359</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">9</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(5</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">26,363</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">U.S. Government agency securities</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,038</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">32</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">-</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">20,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 42%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total short-term investments</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,397</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">41</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(5</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,433</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div> </div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The following table summarizes the maturities of the Company’s fixed income securities (in thousands): </div><div> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 60%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 36%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 36%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortized </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Cost</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" style="border-bottom: #000000 2px solid; text-align: center; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="width: 36%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Less than 1 year</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">29,529</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">29,519</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Due in 1 to 3 years</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">19,718</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">19,723</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,247</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">49,242</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table><div> </div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 60%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 36%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 36%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; background-color: #ffffff; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Amortized </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Cost</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" style="border-bottom: #000000 2px solid; text-align: center; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="width: 36%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Less than 1 year</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">28,107</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">28,114</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Due in 1 to 3 years</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">18,290</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">18,319</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 36%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,397</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">46,433</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div style="text-align: left; margin-left: 58.5pt;"><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">All available-for-sale securities have been classified as current based on management’s ability to use the funds in current operations. Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations.</div></div>
4367000
3917000
819000
819000
200000
6300000
6500000
67609000
66978000
65266000
67609000
1
1
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">12. Restricted Stock</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Under the Company’s equity incentive plan, during the three months ended September 30, 2015 the Company issued fully vested restricted stock awards (“RSAs”) to certain non-employee directors electing to receive them in lieu of an annual cash retainer. In addition, restricted stock units (“RSUs”) can be issued to eligible employees.</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">RSA and RSU activity for the three months ended September 30, 2016 and 2015 is as follows (in thousands):</div><div> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 70%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Three Months Ended</div>September 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 46%; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2015</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Beginning outstanding</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,927</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,452</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Awarded</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">982</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">822</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Released</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(452</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(386</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 46%; vertical-align: bottom;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Forfeited</div></td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(127</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(53</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 46%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Ending outstanding</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,330</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,835</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div><br /></div><div style="text-align: left;"><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Information regarding RSAs and RSUs outstanding at September 30, 2016 is summarized below:</div><div><br /></div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 90%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 54%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Number of Shares </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(thousands)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Weighted Average </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Remaining </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Contractual Lives</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Aggregate Intrinsic </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Value<font style="font-family: 'Times New Roman'; font-size: 10pt;"><br /></font> (thousands)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 54%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Shares outstanding</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">2,330</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1.93</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">18,641</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 54%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Shares expected to vest</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,298</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1.56</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">10,388</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">10. Stock Option Plan</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Transactions under the Company’s equity incentive plans are summarized as follows (in thousands, except per share data and contractual term):</div><div><br /></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; text-indent: -9pt; margin-left: 9pt; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="14" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Options Outstanding</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; text-indent: -9pt; margin-left: 9pt; vertical-align: middle;"> </td><td rowspan="2" valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" rowspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Shares </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Subject to </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Options </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Outstanding</div></td><td nowrap="nowrap" rowspan="2" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td rowspan="2" valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" rowspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Weighted- </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Average </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Exercise </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Price</div></td><td nowrap="nowrap" rowspan="2" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" rowspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Weighted- </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Average </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Remaining </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Contractual </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Term</div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(in years)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td><td rowspan="2" valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" rowspan="2" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Aggregate </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Intrinsic </div><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Value</div></td><td nowrap="nowrap" rowspan="2" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; text-indent: -9pt; margin-left: 9pt; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Balance at July 1, 2016</div></td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6,268</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.31</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 18pt; font-size: 10pt;">Options granted (weighted average fair value $3.27 per share)</div></td><td valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,352</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8.00</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #ffffff; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #ffffff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 18pt; font-size: 10pt;">Options exercised</div></td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(232</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4.77</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="background-color: #cceeff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 18pt; font-size: 10pt;">Options cancelled/forfeited</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(222</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.66</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Balance at September 30, 2016</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,166</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.67</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7.23</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">10,460</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Vested and expected to vest at September 30, 2016</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,889</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.48</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.81</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">9,826</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 52%; vertical-align: middle;"><div style="text-align: left; text-indent: -9pt; font-family: 'Times New Roman'; margin-left: 9pt; font-size: 10pt;">Options exercisable at September 30, 2016</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,741</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">6.04</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5.66</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; padding-bottom: 4px; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8,047</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div><div><br /></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The total pre-tax intrinsic value for options exercised during the three months ended September 30, 2016 and 2015 was $0.6 million and $0.5 million, respectively, representing the difference between the fair values of the Company’s common stock underlying these options at the dates of exercise and the exercise prices paid.</div></div>
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">8. Common Stock</div><div><br /></div><div style="text-align: left; font-style: italic; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Common Shares Reserved for Issuance</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">At September 30, 2016, the Company has reserved shares of common stock for issuance as follows (in thousands):</div><div> </div><div><table align="center" border="0" cellpadding="0" cellspacing="0" style="width: 80%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="background-color: #cceeff; width: 68%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Reserved under stock option plans</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,191</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 68%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Reserved under employee stock purchase plan</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">378</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 68%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt;">Total</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">4,569</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
100000
1100000
100000
1677000
1558000
P1Y6M22D
1298000
10388000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">11. Employee Stock Purchase Plan</div><div><br /></div><div style="text-align: left; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">The 2007 ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The 2007 ESPP consists of six-month offering periods commencing on May 1<sup style="line-height: 1; font-size: smaller; vertical-align: text-top;">st</sup> and November 1<sup style="line-height: 1; font-size: smaller; vertical-align: text-top;">st</sup>, each year. <font style="background-color: #ffffff; font-family: 'Times New Roman'; font-size: 10pt;">Under the ESPP, employees purchase shares of the Company's common stock at 85% of the market value at either the beginning of the offering period or the end of the offering period, whichever price is lower.</font></div></div>
P6M
P6M
35622000
29402000
13827000
17103000
-51000
0
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="background-color: #ffffff;"><div style="text-align: left; font-style: italic; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Correction of Prior Period Error</div><div><br /></div></div><div style="text-align: left; background-color: #ffffff; text-indent: 27pt; font-family: 'Times New Roman'; font-size: 10pt;">Subsequent to the issuance of the condensed consolidated financial statements as of and for the three months ended September 30, 2015, the Company determined installation revenue and related cost of revenue was being deferred and recognized over the contractual life for certain contracts that should have been recognized over the customer life. Accordingly, the accompanying condensed consolidated financial statements reflect the Company’s correction of the condensed consolidated statement of operations impact of the error for the three months ended September 30, 2015. As a result, hosted and related services revenue and cost of revenue were decreased by $0.1 million for the three months ended September 30, 2015. The correction did not affect the net cash provided by operating activities, net cash used in investing activities or net cash used in financing activities for the three months ended September 30, 2015. The correction did not affect the net income per share for the three months ended September 30, 2015. The foregoing corrections are not considered material by the Company.</div></div>
450000
-1417000
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">Balance sheet components consist of the following:</div><div> </div><div><table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 80%; font-family: 'Times New Roman'; font-size: 10pt;"><tr><td valign="bottom" style="padding-bottom: 2px; width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">September 30,</div></td><td nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">June 30,</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-bottom: #000000 2px solid; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">2016</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">(in thousands)</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="width: 56%; vertical-align: middle;"><div style="text-align: left; font-style: italic; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Inventories:</div></td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="width: 1%; vertical-align: bottom;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Raw materials</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">57</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">57</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Distributor inventory</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,558</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">1,677</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Finished goods</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">13,860</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">10,754</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 54pt; font-size: 10pt;">Total inventories</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">15,475</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">12,488</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; font-style: italic; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Property and equipment:</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Computer equipment and tooling</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">53,070</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">50,933</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Software</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,772</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">7,328</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Furniture and fixtures</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,800</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">3,880</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Leasehold improvements and others</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8,820</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">8,836</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 54pt; font-size: 10pt;">Total property and equipment</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">73,462</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">70,977</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Less accumulated depreciation and amortization</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(52,366</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">(49,426</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">)</div></td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 54pt; font-size: 10pt;">Property and equipment, net</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">21,096</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">21,551</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; font-style: italic; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 36pt; font-size: 10pt; font-weight: bold;">Deferred revenue:</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Product</div></td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,279</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">5,433</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Support and services</div></td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">59,423</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">59,465</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 45pt; font-size: 10pt;">Hosted and related services</div></td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">13,222</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: left; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 2px solid; text-align: right; background-color: #ffffff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">12,807</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 2px; background-color: #ffffff; width: 1%; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 56%; vertical-align: middle;"><div style="text-align: left; text-indent: -36pt; font-family: 'Times New Roman'; margin-left: 54pt; font-size: 10pt;">Total deferred revenue</div></td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">77,924</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: left; background-color: #cceeff; width: 1%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">$</div></td><td valign="bottom" style="border-bottom: #000000 4px double; text-align: right; background-color: #cceeff; width: 9%; vertical-align: bottom;"><div style="font-family: 'Times New Roman'; font-size: 10pt;">77,705</div></td><td nowrap="nowrap" valign="bottom" style="text-align: left; padding-bottom: 4px; background-color: #cceeff; width: 1%; vertical-align: bottom;"> </td></tr></table></div></div>
-100000
-100000
0.35