Sec filings

Document and Entity Information

9 Months Ended

Mar. 31, 2014

May 5, 2014

Entity Information [Line Items]

Document Type

10-Q

Amendment Flag

false

Document Period End Focus

Mar. 31, 2014

Document Fiscal Year Focus

2014

Document Fiscal Period Focus

Q3

Trading Symbol

UBNT

Entity Registrant Name

Ubiquiti Networks, Inc.

Entity Central Index Key

0001511737

Current Fiscal Year End Date

--06-30

Entity Filer Category

Accelerated Filer

Entity Common Stock, Shares Outstanding

88,099,761

Condensed Consolidated Balance Sheets (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2014

Jun. 30, 2013

Current assets:

Cash and cash equivalents

$ 291,670

$ 227,826 ¹

Accounts receivable, net of allowance for doubtful accounts of $1,400 and $2,200, respectively

49,530

35,884 ¹

Inventories

66,004

15,880 ¹

Current deferred tax asset

903

733 ¹

Prepaid income taxes

5,052

0 ¹

Prepaid expenses and other current assets

11,578

3,151 ¹

Total current assets

424,737

283,474 ¹

Property and equipment, net

7,174

5,976 ¹

Long-term deferred tax asset

0

4 ¹

Other long term assets

2,662

2,886 ¹

Total assets

434,573

292,340 ¹

Current liabilities:

Accounts payable

46,375

36,187 ¹

Customer deposits

4,347

5,123 ¹

Deferred revenues

1,126

691 ¹

Income taxes payable

0

1,257 ¹

Debt - short-term

6,269

5,013 ¹

Other current liabilities

9,746

11,150 ¹

Total current liabilities

67,863

59,421 ¹

Long-term taxes payable

14,012

11,857 ¹

Debt - long-term

66,139

71,116 ¹

Deferred revenues - long-term

2,670

2,510 ¹

Total liabilities

150,684

144,904 ¹

Commitments and contingencies (Note 8)

¹

Stockholders' equity:

Preferred stock $0.001 par value; 50,000,000 shares authorized; none issued

0

0 ¹

Common stock $0.001 par value; 500,000,000 shares authorized: 88,064,987 and 87,213,803 outstanding at March 31, 2014 and June 30, 2013, respectively

88

87 ¹

Additional paid in capital

143,915

134,982 ¹

Treasury stock 44,238,960 shares held in treasury at March 31, 2014 and June 30, 2013

(123,864)

(123,864)¹

Retained earnings

263,750

136,231 ¹

Total stockholders equity

283,889

147,436 ¹

Total liabilities and stockholders equity

$ 434,573

$ 292,340 ¹

[1] Derived from audited consolidated financial statements as of and for the year ended June 30, 2013.

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)

In Thousands, except Share data, unless otherwise specified

Mar. 31, 2014

Jun. 30, 2013

Statement of Financial Position [Abstract]

Allowance for doubtful accounts receivable

$ 1,400

$ 2,200

Preferred stock, par value (in dollars per share)

$ 0.001

Preferred stock, shares authorized

50,000,000

Preferred stock, shares issued

0

Common stock, par value (in dollars per share)

$ 0.001

Common stock, shares authorized

500,000,000

Common stock, shares outstanding

88,064,987

87,213,803

Treasury stock, shares

44,238,960

Condensed Consolidated Statements of Operations and Comprehensive Income (USD $)

In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Income Statement [Abstract]

Revenues

$ 148,331

$ 83,155

$ 416,457

$ 219,591

Cost of revenues

82,719

47,690

231,851

128,621

Gross profit

65,612

35,465

184,606

90,970

Operating expenses:

Research and development

9,413

5,677

23,807

15,440

Sales, general and administrative

6,064

6,285

17,648

16,133

Total operating expenses

15,477

11,962

41,455

31,573

Income from operations

50,135

23,503

143,151

59,397

Interest expense and other, net

(283)

(287)

(778)

(570)

Income before provision for income taxes

49,852

23,216

142,373

58,827

Provision for income taxes

4,653

2,549

14,854

7,178

Net income and comprehensive income

$ 45,199

$ 20,667

$ 127,519

$ 51,649

Net income per share of common stock:

Basic (in usd per share)

$ 0.51

$ 0.24

$ 1.45

$ 0.58

Diluted (in usd per share)

$ 0.50

$ 0.23

$ 1.42

$ 0.57

Weighted average shares used in computing net income per share of common stock:

Basic (in shares)

87,901

87,004

87,656

88,702

Diluted (in shares)

89,775

88,953

89,667

90,656

Cash dividends declared per common share

$ 0

$ 0.18

Condensed Consolidated Statements of Cash Flows (USD $)

In Thousands, unless otherwise specified

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Cash Flows from Operating Activities:

Net income and comprehensive income

$ 127,519

$ 51,649

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

2,038

1,262

Provision for inventory obsolescence

2,045

1,075

Deferred taxes

1,989

0

Excess tax benefit from employee stock-based awards

(5,279)

(414)

Stock-based compensation

3,630

2,249

Loss on disposal of fixed assets

45

150

Write-off of intangible assets

229

0

Provision for doubtful accounts

(658)

1,596

Changes in operating assets and liabilities:

Accounts receivable

(12,988)

35,631

Inventories

(52,169)

(12,722)

Deferred cost of revenues

(82)

(541)

Prepaid income taxes

(5,052)

0

Prepaid expenses and other assets

(8,335)

(1,461)

Accounts payable

10,136

5,030

Taxes payable

4,022

3,655

Deferred revenues

595

1,036

Accrued liabilities and other

(2,151)

(2,511)

Net cash provided by operating activities

65,534

85,684

Cash Flows from Investing Activities:

Purchase of property and equipment and other long-term assets

(3,244)

(4,408)

Net cash used in investing activities

(3,244)

(4,408)

Cash Flows from Financing Activities:

Proceeds from term loan

0

50,833

Repayments on term loan balance

(3,750)

(3,083)

Repurchases of common stock

0

(54,354)

Payment of special common stock dividend

0

(15,652)

Proceeds from exercise of stock options

1,783

306

Excess tax benefit from employee stock-based awards

5,279

414

Tax withholdings related to net share settlements of restricted stock units

(1,758)

(111)

Net cash provided by (used in) financing activities

1,554

(21,647)

Net increase in cash and cash equivalents

63,844

59,629

Cash and cash equivalents at beginning of period

227,826 ¹

122,060

Cash and cash equivalents at end of period

$ 291,670

$ 181,689

[1] Derived from audited consolidated financial statements as of and for the year ended June 30, 2013.

BUSINESS AND BASIS OF PRESENTATION

Business— Ubiquiti Networks, Inc. was incorporated in the State of California in 2003 as Pera Networks, Inc. In 2005 the Company changed its name to Ubiquiti Networks, Inc. and commenced its current operations. In June 2010, the Company was re-incorporated in Delaware.

Ubiquiti Networks, Inc. and its wholly owned subsidiaries (collectively, “Ubiquiti” or the “Company”) develops high performance networking technology for service providers and enterprises.

On October 13, 2011, the Company entered into an underwriting agreement for its initial public offering of 7,038,230 shares of its common stock at $15.00 per share. The Company's initial public offering closed on October 19, 2011. Immediately prior to the closing of the initial public offering, all outstanding shares of the Company’s preferred stock converted to common stock on a one for one basis.

On June 18, 2013, the Company completed a secondary offering of 7,031,464 shares of common stock at an offering price of $16.00 per share, which included 531,464 shares sold in connection with the partial exercise of the option to purchase additional shares granted to the underwriters. All of the shares sold in the offering were sold by existing stockholders of the Company, including entities affiliated with Summit Partners, L.P., and the Company's chief executive officer, Robert J. Pera. No shares were sold by the Company in the offering, and as such, the Company did not receive any proceeds from the offering.

The Company operates on a fiscal year ending June 30. In this Quarterly Report, the fiscal year ending June 30, 2014 is referred to as “fiscal 2014” and the fiscal year ended June 30, 2013 is referred to as “fiscal 2013.”

Basis of Presentation— The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) related to interim financial statements based on applicable Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. This information reflects all adjustments, which are, in the opinion of the Company, of a normal and recurring nature and necessary to state fairly the statements of financial position, results of operations and cash flows for the dates and periods presented. The June 30, 2013 balance sheet was derived from the audited financial statements as of that date. All significant intercompany transactions and balances have been eliminated.

These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2013 included in its Annual Report on Form 10-K, as filed on September 13, 2013 with the SEC (the “Annual Report”). The results of operations for the three and nine months ended March 31, 2014 are not necessarily indicative of the results to be expected for any future periods.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company’s significant accounting policies are disclosed in its audited consolidated financial statements for the year ended June 30, 2013 included in the Annual Report. Unless otherwise noted below, the Company's significant accounting policies have not changed since June 30, 2013.

Advertising Costs

The Company expenses all advertising costs as incurred. Advertising costs totaled $1.8 million and $2.4 million during the three and nine months ended March 31, 2014. Advertising costs during the three and nine months ended March 31, 2013 were not significant.

Recent Accounting Pronouncements

In July 2013, the FASB issued a new accounting standard update on the financial statement presentation of unrecognized tax benefits. The new guidance provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a new operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The new guidance will become effective for the Company on July 1, 2014 and it should be applied prospectively to unrecognized tax benefits that exist as of the effective date with retrospective application permitted. The Company is currently assessing the impact of this new guidance.

FAIR VALUE OF FINANCIAL INSTRUMENTS

Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The accounting guidance establishes a three-tier fair value hierarchy that requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The fair value hierarchy prioritizes the inputs into three levels that may be used in measuring fair value as follows:

Level 1—observable inputs which include quoted prices in active markets for identical assets or liabilities.

Level 2—inputs which include observable inputs other than Level 1, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3—inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.

For certain of the Company’s financial instruments, including cash, accounts receivable and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below. Additionally, as of March 31, 2014, we held $274.9 million of our $291.7 million of cash and cash equivalents in accounts of our subsidiaries outside of the United States and we will incur significant tax liabilities if we were to repatriate those amounts.

At March 31, 2014 and June 30, 2013 the Company had debt associated with its Loan and Security Agreement with East West Bank (see Note 7). The fair value of the Company’s debt was estimated based on the current rates offered to the Company for debt with similar terms and remaining maturities and was determined to be a Level 2 measurement.

As of March 31, 2014 and June 30, 2013, the fair value hierarchy for the Company’s financial liabilities was as follows (in thousands):



	March 31, 2014								June 30, 2013
	Fair Value		Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3
Debt	$	72,408	$	—	$	72,408	$	—	$	76,129	$	—	$	76,129	$	—

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):



	Three Months Ended March 31,				Nine Months Ended March 31,
	2014		2013		2014		2013
Numerator:
Net income attributable to common stockholders	$	45,199	$	20,667	$	127,519	$	51,649
Denominator:
Weighted-average shares used in computing basic net income per share	87,901		87,004		87,656		88,702
Add—dilutive potential common shares:
Stock options	1,646		1,803		1,754		1,808
Restricted stock units	228		146		257		146
Weighted-average shares used in computing diluted net income per share	89,775		88,953		89,667		90,656
Net income per share of common stock:
Basic	$	0.51	$	0.24	$	1.45	$	0.58
Diluted	$	0.50	$	0.23	$	1.42	$	0.57

The Company excludes certain securities from its diluted net income per share calculation when their effect would be antidilutive to net income per share amounts. The following table summarizes the total potential shares of common stock that were excluded from the diluted per share calculation, because to include them would have been anti-dilutive for the period (in thousands):



	Three Months Ended March 31,		Nine Months Ended March 31,
	2014	2013	2014	2013
Stock options	—	655	—	356
Restricted stock units	6	205	85	129
	6	860	85	485

BALANCE SHEET COMPONENTS

Inventories

Inventories consisted of the following (in thousands):



	March 31, 2014		June 30, 2013
Finished goods	$	65,622	$	15,618
Raw materials	382		262
	$	66,004	$	15,880

Prepaid Expenses and Other Current Assets

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



	March 31, 2014		June 30, 2013
Vendor deposits	$	8,043	$	—
Non-trade receivables	1,727		2,203
Other current assets	1,808		948
	$	11,578	$	3,151

Property and Equipment, Net

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



	March 31, 2014			June 30, 2013
Testing equipment	$	3,677		$	3,309
Computer and other equipment	1,009			841
Tooling equipment	2,854			1,737
Furniture and fixtures	768			652
Leasehold improvements	2,902			1,858
Software	343			245
	11,553			8,642
Less: Accumulated depreciation and amortization	(4,379		)	(2,666		)
	$	7,174		$	5,976

Other Long-term Assets

Other long-term assets consisted of the following (in thousands):



	March 31, 2014		June 30, 2013
Long-term deferred cost of revenues	$	1,218	$	1,185
Intangible assets, net	815		1,029
Other long-term assets	629		672
	$	2,662	$	2,886

The Company's intangible assets consist primarily of legal costs associated with the application for and registration of the Company’s trademarks. The Company recorded $25,000 and $200,000 of amortization of intangible assets during the three and nine months ended March 31, 2014, respectively. The Company did not record any amortization of intangible assets during the three and nine months ended March 31, 2013. The balance of accumulated amortization was $400,000 and $200,000 at March 31, 2014 and June 30, 2013, respectively. Estimated future amortization related to trademark registration fees is $37,000, $244,000, $244,000, $222,000, $61,000 and $7,000 for the remainder of fiscal 2014 and fiscal years 2015, 2016, 2017, 2018, and thereafter, respectively.

Other Current Liabilities

Accrued liabilities consisted of the following (in thousands):



	March 31, 2014		June 30, 2013
Warranty accrual	$	2,950	$	2,913
Accrued compensation and benefits	2,724		2,712
Accrual for an export compliance matter	—		1,625
Other accruals	4,072		3,900
	$	9,746	$	11,150

ACCRUED WARRANTY

The Company offers warranties on certain products, generally for a period of one year, and records a liability for the estimated future costs associated with potential warranty claims. The warranty costs are reflected in the Company’s consolidated statement of operations within cost of revenues. The warranties are typically in effect for 12 months from the distributor’s purchase date of the product. The Company’s estimate of future warranty costs is largely based on historical experience factors including product failure rates, material usage, and service delivery cost incurred in correcting product failures. In certain circumstances, the Company may have recourse from its contract manufacturers for replacement cost of defective products, which it also factors into its warranty liability assessment.

Warranty obligations, included in other current liabilities, were as follows (in thousands):



	Nine Months Ended March 31,
	2014			2013
Beginning balance	$	2,913		$	1,381
Accruals for warranties issued during the period	3,287			1,684
Warranty costs incurred during the period	(3,250		)	(1,115		)
	$	2,950		$	1,950

DEBT

On August 7, 2012, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with U.S. Bank, as syndication agent, and East West Bank, as administrative agent for the lenders party to the Loan Agreement. The Loan Agreement provides for (i) a $50.0 million revolving credit facility, with a $5.0 million sublimit for the issuance of letters of credit and a $5.0 million sublimit for the making of swingline loan advances (the “Revolving Credit Facility”), and (ii) a $50.0 million term loan facility (the “Term Loan Facility”). The Company may request borrowings under the Revolving Credit Facility until August 7, 2015. The Loan Agreement replaced a previous agreement whereby the Company had an existing term loan balance of $29.2 million as of the date the new Loan Agreement. On August 7, 2012, the Company borrowed $20.8 million under the Term Loan Facility, and no borrowings remain available for borrowing thereunder. On November 21, 2012, the Company borrowed $10.0 million under the Revolving Credit Facility. On December 20, 2012, the Company borrowed an additional $20.0 million under the Revolving Credit Facility, and $20.0 million remains available for borrowing thereunder.

The loans bear interest, at the Company’s option, at the base rate plus a spread of 1.25% to 1.75% or an adjusted LIBOR rate (at the Company’s election, for a period of 30, 60, or 90 days) plus a spread of 2.25% to 2.75%, in each case with such spread being determined based on the debt service coverage ratio for its most recently ended fiscal quarter. The base rate is the highest of (i) East West Bank’s prime rate, (ii) the federal funds rate plus a margin equal to 0.50%, or (iii) the LIBOR rate plus a margin equal to 1.00%. The Company is also obligated to pay other customary closing fees, arrangement fees, administration fees, commitment fees and letter of credit fees for a credit facility of this size and type.

Interest is due and payable monthly in arrears in the case of loans bearing interest at the base rate and at the end of an interest period in the case of loans bearing interest at the adjusted LIBOR rate. Principal payments under the Term Loan Facility will be made in quarterly installments on the first day of each calendar quarter, and each such quarterly installment shall be equal to $1.25 million through July 1, 2014, then equal to $1.875 million from October 1, 2014 through July 1, 2015, and then equal to $2.5 million from October 1, 2015 through July 1, 2017, with the remaining outstanding principal balance and all accrued and unpaid interest due on August 7, 2017. All outstanding loans under the Revolving Credit Facility, together with all accrued and unpaid interest, are due on August 7, 2015.

The Company may prepay the loans, in whole or in part, at any time without premium or penalty, subject to certain conditions including minimum amounts and reimbursement of certain costs in the case of prepayments of LIBOR loans. In addition, the Company is required to prepay the loan under the Term Loan Facility with (i) the proceeds from certain financing transactions or asset sales (subject, in the case of asset sales, to reinvestment rights) and (ii) 25.0% of the Company’s excess cash flow in the U.S., as determined after each fiscal year and in accordance with the Loan Agreement, provided that the Company shall not be required to prepay the loan out of its excess cash flow if its leverage ratio is greater than 1.50:1.00 on the last day of such fiscal year.

All of the obligations of the Company under the Loan Agreement are collateralized by substantially all of the Company’s assets, including all of the capital stock of the Company’s future domestic subsidiaries and 65% of the capital stock of the Company’s existing and future foreign subsidiaries, but excluding the Company’s intellectual property, which is subject to a negative pledge agreement. All of the Company’s future domestic subsidiaries are required to guaranty the obligations under the Loan Agreement. Such guarantees by future subsidiaries will be collateralized by substantially all of the property of such subsidiaries, excluding intellectual property.

The Loan Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, pay dividends or make distributions, make investments, make acquisitions, prepay certain indebtedness, change the nature of its business, enter into certain transactions with affiliates, enter into restrictive agreements, and make capital expenditures, in each case subject to customary exceptions for a credit facility of this size and type. The Company is also required to maintain a minimum debt service coverage ratio, a maximum leverage ratio, and a minimum liquidity ratio. As of March 31, 2014, the Company was in compliance with all affirmative and negative covenants, debt service coverage ratio, leverage ratio and liquidity ratio requirements.

The Loan Agreement includes customary events of default that include, among other things, defaults for the failure to timely pay principal, interest, or other amounts due, defaults due to the inaccuracy of representations and warranties, covenant defaults, a cross default to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults, defaults due to the unenforceability of a guaranty, and defaults due to circumstances that have or could reasonably be expected to have a material adverse effect on the Company's business, operations or financial condition, its ability to pay or perform under the Loan Agreement, or on the lenders' security interests. The occurrence of an event of default could result in the acceleration of the obligations under the Loan Agreement. During the existence of an event of default, interest on the obligations under the Loan Agreement could be increased by 2.00% above the otherwise applicable interest rate.

During the three and nine months ended March 31, 2014, the Company made aggregate payments of $1.3 million and $3.8 million, respectively, against the loan balance. During the three and nine months ended March 31, 2013, the Company made aggregate payments of $1.3 million and $3.1 million, respectively, against the loan balance. As of March 31, 2014, the Company has classified $6.3 million and $66.1 million in short-term and long-term debt, respectively, on its condensed consolidated balance sheet related to the Loan Agreement.

The following table summarizes our estimated debt and interest payment obligations as of March 31, 2014 for the remainder of fiscal 2014 and future fiscal years (in thousands):



	2014 (remainder)		2015		2016		2017		2018		Total
Debt payment obligations	$	1,250	$	6,875	$	39,375	$	10,000	$	15,000	$	72,500
Interest payments on debt payment obligations	446		1,723		1,043		532		125		3,869
Total	$	1,696	$	8,598	$	40,418	$	10,532	$	15,125	$	76,369

On May 5, 2014, the Company entered into a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), the financial institutions named as lenders therein, and Wells Fargo as administrative agent for the lenders. In connection with the execution of the credit agreement, the Company terminated and repaid all outstanding obligations under the Term Loan Facility and Revolving Credit Facility under the Loan Agreement described above. Please see Part 1, Item 1, Note 14 below for a full description of the credit agreement.

COMMITMENTS AND CONTINGENCIES

Operating Leases

Certain facilities and equipment are leased under non-cancelable operating leases. The Company generally pays taxes, insurance and maintenance costs on leased facilities and equipment. The Company leases office space in San Jose, California and other locations under various non-cancelable operating leases that expire at various dates through fiscal 2019.

At March 31, 2014, future minimum annual payments under operating leases for the remainder of fiscal 2014 and future fiscal years are as follows (in thousands):



	2014 (remainder)		2015		2016		2017		2018		Thereafter		Total
Operating leases	$	633	$	2,503	$	2,497	$	1,537	$	297	$	53	$	7,520

Purchase Commitments

The Company subcontracts with other companies to manufacture its products. During the normal course of business, the Company’s contract manufacturers procure components based upon orders placed by the Company. If the Company cancels all or part of the orders, it may still be liable to the contract manufacturers for the cost of the components purchased by them to manufacture the Company’s products. The Company periodically reviews the potential liability and to date no significant accruals have been recorded. The Company had $20.9 million in non-cancelable purchase commitments as of March 31, 2014, the related expenses of which are expected to be incurred in future periods. The Company did not have any non-cancelable purchase commitments as of June 30, 2013.

Indemnification Obligations

The Company enters into standard indemnification agreements with many of its business partners in the ordinary course of business. These agreements include provisions for indemnifying the business partner against any claim brought by a third party to the extent any such claim alleges that a Ubiquiti product infringes a patent, copyright or trademark, or violates any other proprietary rights of that third party. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is not estimable and the Company has not incurred any material costs to defend lawsuits or settle claims related to these indemnification agreements to date.

Legal Matters

The Company may be involved, from time to time, in a variety of claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters and other litigation matters relating to various claims that arise in the normal course of business. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using available information. The Company develops its views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. Taking all of the above factors into account, the Company records an amount where it is probable that the Company will incur a loss and where that loss can be reasonably estimated. However, the Company’s estimates may be incorrect and the Company could ultimately incur more or less than the amounts initially recorded. The Company may also incur significant legal fees, which are expensed as incurred, in defending against these claims.

Export Compliance Matters

In May 2011, the Company filed a self-disclosure statement with the U.S. Commerce Department, Bureau of Industry and Security’s (“BIS”) Office of Export Enforcement (“OEE”) relating to a review conducted by the Company regarding certain export transactions from 2008 through March 2011 in which products may have been later resold into Iran by third parties. In June 2011, the Company also filed a self-disclosure statement with the U.S. Department of the Treasury’s Office of Foreign Asset Control (“OFAC”) regarding these compliance issues. In August 2011, the Company received a warning letter from OEE stating that OEE had not referred the findings of the Company’s review for criminal or administrative prosecution and closed the investigation of the Company without penalty. Based upon its review of the matter, OFAC identified certain apparent violations (“Apparent Violations”) of the Iranian Transactions and Sanctions Regulations by the Company during the period of in or about March 2008 through in or about February 2011. On March 4, 2014, the Company entered into a settlement agreement with OFAC resolving this administrative matter. Pursuant to the terms of the settlement agreement, the Company agreed to make a one-time payment to the U.S. Department of the Treasury in the amount of $504,000 in consideration of OFAC agreeing to release and forever discharge the Company from any and all civil liability in connection with the Apparent Violations. The Company previously accrued a reserve of $1.6 million relating to this matter in fiscal 2010 and, accordingly, reversed the excess of the accrual of $1.1 million as of the effective date of the settlement agreement.

Shareholder Class Action Lawsuits

Beginning on September 7, 2012, two class action lawsuits were filed in the United States District Court for the Northern District of California against Ubiquiti Networks, Inc. (the “Company”), certain of its officers and directors, and the underwriters of its initial public offering, alleging claims under U.S. securities laws. On January 30, 2013, the plaintiffs filed an amended consolidated complaint. The Company filed a motion to dismiss the complaint, and on March 26, 2014, the court issued an order granting the motion to dismiss with leave to amend the complaint. Following the plaintiffs’ decision not to file an amended complaint, on April 16, 2014 the court ordered the dismissal of the shareholder class action lawsuit with prejudice, and entered judgment in favor of the Company and the other defendants, and against the plaintiffs. The plaintiffs may appeal the court’s decision.

COMMON STOCK AND TREASURY STOCK

As of March 31, 2014 and June 30, 2013, the authorized capital of the Company included 500,000,000 shares of common stock. As of March 31, 2014, 132,303,947 shares of common stock were issued and 88,064,987 were outstanding. As of June 30, 2013, 131,452,763 shares of common stock were issued and 87,213,803 were outstanding.

Common Stock Repurchases

On August 9, 2012, the Company announced that its Board of Directors authorized the Company to repurchase up to $100 million of its common stock. The share repurchase program commenced August 13, 2012 and expired on August 12, 2013. The share repurchase program was funded with proceeds from the Loan Agreement as discussed in Note 7 and from existing cash on hand.

Common stock repurchase activity under the share repurchase program was as follows (in thousands, except share and per share amounts):



Period	Total Number of Shares Purchased	Average Price Paid per Share		Estimated remaining balance available for share repurchase
August 13, 2012 – August 31, 2012	2,179,900	$	8.88	$	80,599
September 1, 2012 – September 30, 2012	992,014	$	11.93	$	68,742
October 1, 2012 - October 31, 2012	371,665	$	11.72	$	64,377
November 1, 2012 - November 30, 2012	657,700	$	11.16	$	57,024
December 1, 2012 - December 31, 2012	957,771	$	11.86	$	45,646
Total	5,159,050	$	10.52	$	45,646

The Company did not repurchase any of its common stock from January 1, 2013 through August 12, 2013, the date that the plan expired.

Special Dividend

On December 14, 2012, the Company announced that its Board of Directors had authorized a special cash dividend of $0.18 per share for each share of common stock outstanding on December 24, 2012. The aggregate dividend payment of $15.7 million was paid on December 28, 2012 to stockholders of record on December 24, 2012. The dividend payment was funded using proceeds from the Loan Agreement as discussed in Note 7.

STOCK BASED COMPENSATION

Stock-Based Compensation Plans

The Company’s 2010 Equity Incentive Plan and 2005 Equity Incentive Plan are described in its Annual Report. As of March 31, 2014, the Company had 9,916,169 authorized shares available for future issuance under all of its stock incentive plans.

Stock-based Compensation

The following table shows total stock-based compensation expense included in the Condensed Consolidated Statements of Operations for the three and nine months ended March 31, 2014 and 2013 (in thousands):



	Three Months Ended March 31,				Nine Months Ended March 31,
	2014		2013		2014		2013
Cost of revenues	$	153	$	124	$	445	$	309
Research and development	630		324		1,679		991
Sales, general and administrative	258		252		1,506		949
	$	1,041	$	700	$	3,630	$	2,249

Stock Options

The following is a summary of option activity for the Company’s stock incentive plans for the nine months ended March 31, 2014:



	Common Stock Options Outstanding
	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
						(In thousands)
Balance, June 30, 2013	3,614,262		$	3.07
Exercised	(749,237	)	2.38
Forfeitures and cancellations	(107,318	)	10.55
Balance, March 31, 2014	2,757,707		$	2.96	5.36	$	117,166
Vested and expected to vest as of March 31, 2014	2,730,108		$	2.88	5.33	$	116,212
Vested and exercisable as of March 31, 2014	2,240,079		$	1.44	4.73	$	98,595

During the three months ended March 31, 2014 and 2013, the aggregate intrinsic value of options exercised under the Company’s stock incentive plans was $13.2 million and $1.1 million, respectively, as determined as of the date of option exercise. During the nine months ended March 31, 2014 and 2013, the aggregate intrinsic value of options exercised under the Company’s stock incentive plans was $26.9 million and $1.5 million, respectively, as determined as of the date of option exercise.

As of March 31, 2014, the Company had unrecognized compensation costs of $2.3 million related to stock options which the Company expects to recognize over a weighted-average period of 2.4 years. Future option grants will increase the amount of compensation expense to be recorded in these periods.

The Company estimates the fair value of employee stock options using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The Company did not grant any employee stock options during the three and nine months ended March 31, 2014. For the three and nine months ended March 31, 2013, the fair value of employee stock options was estimated using the following weighted average assumptions:



	Three Months Ended March 31, 2013			Nine Months Ended March 31, 2013
Expected term	6.1 years			6.1 years
Expected volatility	52		%	52		%
Risk-free interest rate	1.0		%	0.8		%
Expected dividend yield	—			—
Weighted average grant date fair value	$	6.69		$	5.51

Restricted Stock Units (“RSUs”)

The following table summarizes the activity of the RSUs made by the Company:



	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested RSUs, June 30, 2013	744,906		$	14.74
RSUs granted	193,528		37.72
RSUs vested	(149,697	)	15.28
RSUs canceled	(223,124	)	22.01
Non-vested RSUs, March 31, 2014	565,613		$	19.59

The intrinsic value of RSUs vested in the three months ended March 31, 2014 and 2013 was $2.4 million and $389,000, respectively. The intrinsic value of RSUs vested in the nine months ended March 31, 2014 and 2013 was $5.3 million and $622,000, respectively.

As of March 31, 2014, there was unrecognized compensation costs related to RSUs of $10.1 million which the Company expects to recognize over a weighted average period of 3.4 years.

INCOME TAXES

As of March 31, 2014, the Company had approximately $13.8 million of unrecognized tax benefits, substantially all of which would, if recognized, affect its tax expense. The Company has elected to include interest and penalties related to uncertain tax positions as a component of tax expense. At March 31, 2014, an insignificant amount of interest and penalties are included in long-term income tax payable. The Company recorded an increase of its unrecognized tax benefits of $535,000 for the three months ended March 31, 2014. The Company does not expect any significant increases or decreases to its unrecognized tax benefits in the next twelve months.

The Company recorded income tax provisions of $4.7 million and $14.9 million for the three and nine months ended March 31, 2014, respectively. The Company’s estimated 2014 effective tax rate differs from the U.S. statutory rate primarily due to profits earned in jurisdictions where the tax rate is lower than the U.S. tax rate.

The Company files U.S. federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The Company’s tax years from 2009 and onwards could be subject to examinations by tax authorities.

SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS

During the first quarter of fiscal 2014, the Company began presenting its revenues by product type in two primary categories, Service Provider Technology and Enterprise Technology. These categories better represent how the Company's business is managed and benchmarked internally, and better reflect the Company’s end user customer delineation.

•

Service Provider Technology includes the Company's airMAX, EdgeMAX and airFiber platforms, as well as embedded radio products and other 802.11 standard products including base stations, radios, backhaul equipment and Customer Premise Equipment (“CPE”). Additionally, Service Provider Technology includes antennas and other products in the 2.0 to 6.0GHz spectrum and miscellaneous products such as mounting brackets, cables and power over Ethernet adapters.


•	Enterprise Technology includes the Company's UniFi, mFi and airVision platforms.

Revenues by product type for the three and nine months ended March 31, 2014 and 2013 were as follows (in thousands, except percentages):



	Three Months Ended March 31,								Nine Months Ended March 31,
	2014				2013				2014				2013
Service Provider Technology	$	120,987	82	%	$	75,475	91	%	$	326,658	78	%	$	195,262	89	%
Enterprise Technology	27,344		18	%	7,680		9	%	89,799		22	%	24,329		11	%
Total revenues	$	148,331	100	%	$	83,155	100	%	$	416,457	100	%	$	219,591	100	%

The Company generally forwards products directly from its manufacturers to its customers via logistics distribution hubs in Asia. Beginning in the quarter ended December 31, 2012, the Company's products were predominantly routed through a third party logistics provider in China and prior to the quarter ended December 31, 2012, the Company's products were predominantly delivered to its customers through distribution hubs in Hong Kong. The Company's logistics provider, in turn, ships to other locations throughout the world. The Company has determined the geographical distribution of product revenues based upon the customer's ship-to destinations.

Revenues by geography were as follows (in thousands, except percentages):



	Three Months Ended March 31,								Nine Months Ended March 31,
	2014				2013				2014				2013
North America(1)	$	29,178	20	%	$	21,052	25	%	$	99,178	24	%	$	53,519	24	%
South America	25,059		17	%	18,496		22	%	73,827		18	%	45,820		21	%
Europe, the Middle East and Africa	77,883		52	%	31,617		38	%	189,591		45	%	90,690		41	%
Asia Pacific	16,211		11	%	11,990		15	%	53,861		13	%	29,562		14	%
Total revenues	$	148,331	100	%	$	83,155	100	%	$	416,457	100	%	$	219,591	100	%


(1)	Revenue for the United States was $27.7 million and $19.7 million for the three months ended March 31, 2014 and 2013, respectively. Revenue for the United States was $95.0 million and $50.5 million for the nine months ended March 31, 2014 and 2013, respectively.

Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated:



	Percentage of Revenues								Percentage of Accounts Receivable
	Three Months Ended March 31,				Nine Months Ended March 31,				March 31,		June 30,
	2014		2013		2014		2013		2014		2013
Customer A	11	%	15	%	13	%	13	%	12	%	12	%
Customer B	10	%	*		*		*		15	%	*
Customer C	*		*		*		*		14	%	11	%
Customer D	*		*		*		*		*		15	%

* denotes less than 10%

RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS

On November 13, 2013, the Company entered into an aircraft lease agreement (the "Aircraft Lease Agreement") with RJP Manageco LLC (the "Lessor"), a limited liability company owned by the Company’s CEO, Robert J. Pera. Pursuant to the Aircraft Lease Agreement, the Company may lease an aircraft owned by the Lessor for Company business purposes. Under the Aircraft Lease Agreement, the aircraft may be leased at a rate of $5,000 per flight hour. This hourly rate does not include the cost of flight crew or on-board services, which the Company will purchase from a third-party provider. The Company recognized a total of approximately $120,000 in expenses pursuant to the Aircraft Lease Agreement during the three months ended March 31, 2014. All expenses pursuant to the Aircraft Lease Agreement have been included in the Company's sales, general and administrative expenses in the Condensed Consolidated Statements of Operations.

SUBSEQUENT EVENTS

On May 5, 2014, the Company and certain of its subsidiaries entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), the financial institutions named as lenders therein, and Wells Fargo as administrative agent for the lenders, that provides for a $150 million senior secured revolving credit facility, with an option to request an increase in the amount of the credit facility by up to an additional $50 million (any such increase to be in each lender’s sole discretion). The Company may borrow up to $110 million of the facility as a U.S. sublimit. The entire amount of the facility is available to Ubiquiti International Holding Company Limited, a wholly-owned subsidiary of the Company organized under the laws of the Cayman Islands. The credit facility includes a sub-limit of $5 million for letters of credit and a sub-limit of $15 million for swingline loans. In connection with the execution of the Credit Agreement, the Company terminated the $50 million line of credit facility under the Loan Agreement described in Note 7, “Debt”. Under the Credit Agreement, revolving loans and swingline loans may be borrowed, repaid and reborrowed until May 5, 2019, at which time all amounts borrowed must be repaid. Additionally, $72.3 million is currently outstanding under the Credit Agreement, which was borrowed by the Company to repay obligations under the Loan Agreement and to pay transaction fees and costs. Revolving loans bear interest, at the Company’s option, at either (i) a floating rate per annum equal to the base rate plus a margin of between 0.250% and 1.000%, depending on the Company’s leverage ratio as of the most recently ended fiscal quarter or (ii) a per annum rate equal to the applicable LIBOR rate for a specified period, plus a margin of between 1.250% and 2.000%, depending on the Company’s leverage ratio as of the most recently ended fiscal quarter. Swingline loans will bear interest at a floating rate per annum equal to the base rate plus a margin of between 0.250% and 1.000%, depending on the Company’s leverage ratio as of the most recently ended fiscal quarter. Base rate is defined as the greatest of (A) Wells Fargo’s prime rate, (B) the federal funds rate plus 0.500% or (C) a per annum rate equal to the rate at which dollar deposits are offered in the London interbank market for a period of one month plus 1.000%. A default interest rate shall apply on all obligations during a payment event of default under the Credit Agreement at a rate per annum equal to 2.000% above the applicable interest rate. The Company will pay to each lender a facility fee on a quarterly basis based on the unused amount of each lender’s commitment to make loans, of between 0.200% and 0.350%, depending on the Company’s leverage ratio as of the most recently ended fiscal quarter. Revolving loans and swingline loans may be prepaid at any time without penalty. The Company is also obligated to pay Wells Fargo, as agent, fees customary for a credit facility of this size and type.

The Credit Agreement requires the Company to maintain a maximum leverage ratio and a minimum interest coverage ratio during the term of the credit facility. In addition, the Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the ability of the Company and its subsidiaries to, among other things, grant liens or enter into agreements restricting their ability to grant liens on property, enter into mergers, dispose of assets, change their accounting or reporting policies, change their business and incur subsidiary indebtedness, in each case subject to customary exceptions for a credit facility of this size and type. The Credit Agreement includes customary events of default that, include among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments, change of control and certain ERISA events. The occurrence of an event of default could result in the acceleration of the obligations under the Credit Agreement. The credit facility under the Credit Agreement expires May 5, 2019.

The obligations of the Company and its subsidiaries under the Credit Agreement are collateralized by substantially all assets (excluding intellectual property) of the Company and its subsidiaries.

Wells Fargo and the lenders party to the Credit Agreement, and certain of their respective affiliates, have provided, and in the future may provide, financial, banking and related services to the Company. These parties have received, and in the future may receive, compensation from the Company for these services.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

Recent Accounting Pronouncements

In July 2013, the FASB issued a new accounting standard update on the financial statement presentation of unrecognized tax benefits. The new guidance provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a new operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The new guidance will become effective for the Company on July 1, 2014 and it should be applied prospectively to unrecognized tax benefits that exist as of the effective date with retrospective application permitted. The Company is currently assessing the impact of this new guidance.

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

Fair value hierarchy for company's financial assets and liabilities

As of March 31, 2014 and June 30, 2013, the fair value hierarchy for the Company’s financial liabilities was as follows (in thousands):



	March 31, 2014								June 30, 2013
	Fair Value		Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3
Debt	$	72,408	$	—	$	72,408	$	—	$	76,129	$	—	$	76,129	$	—

EARNINGS PER SHARE (Tables)

Computation of basic and diluted earnings per share

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):



	Three Months Ended March 31,				Nine Months Ended March 31,
	2014		2013		2014		2013
Numerator:
Net income attributable to common stockholders	$	45,199	$	20,667	$	127,519	$	51,649
Denominator:
Weighted-average shares used in computing basic net income per share	87,901		87,004		87,656		88,702
Add—dilutive potential common shares:
Stock options	1,646		1,803		1,754		1,808
Restricted stock units	228		146		257		146
Weighted-average shares used in computing diluted net income per share	89,775		88,953		89,667		90,656
Net income per share of common stock:
Basic	$	0.51	$	0.24	$	1.45	$	0.58
Diluted	$	0.50	$	0.23	$	1.42	$	0.57

Potential shares of common stock excluded from diluted per share calculation

The following table summarizes the total potential shares of common stock that were excluded from the diluted per share calculation, because to include them would have been anti-dilutive for the period (in thousands):



	Three Months Ended March 31,		Nine Months Ended March 31,
	2014	2013	2014	2013
Stock options	—	655	—	356
Restricted stock units	6	205	85	129
	6	860	85	485

BALANCE SHEET COMPONENTS (Tables)

Inventories

Inventories consisted of the following (in thousands):



	March 31, 2014		June 30, 2013
Finished goods	$	65,622	$	15,618
Raw materials	382		262
	$	66,004	$	15,880

Prepaid expenses and other current assets

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



	March 31, 2014		June 30, 2013
Vendor deposits	$	8,043	$	—
Non-trade receivables	1,727		2,203
Other current assets	1,808		948
	$	11,578	$	3,151

Property and equipment, net

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



	March 31, 2014			June 30, 2013
Testing equipment	$	3,677		$	3,309
Computer and other equipment	1,009			841
Tooling equipment	2,854			1,737
Furniture and fixtures	768			652
Leasehold improvements	2,902			1,858
Software	343			245
	11,553			8,642
Less: Accumulated depreciation and amortization	(4,379		)	(2,666		)
	$	7,174		$	5,976

Other long-term assets

Other long-term assets consisted of the following (in thousands):



	March 31, 2014		June 30, 2013
Long-term deferred cost of revenues	$	1,218	$	1,185
Intangible assets, net	815		1,029
Other long-term assets	629		672
	$	2,662	$	2,886

Accrued liabilities

Accrued liabilities consisted of the following (in thousands):



	March 31, 2014		June 30, 2013
Warranty accrual	$	2,950	$	2,913
Accrued compensation and benefits	2,724		2,712
Accrual for an export compliance matter	—		1,625
Other accruals	4,072		3,900
	$	9,746	$	11,150

ACCRUED WARRANTY (Tables)

Warranty obligations

Warranty obligations, included in other current liabilities, were as follows (in thousands):



	Nine Months Ended March 31,
	2014			2013
Beginning balance	$	2,913		$	1,381
Accruals for warranties issued during the period	3,287			1,684
Warranty costs incurred during the period	(3,250		)	(1,115		)
	$	2,950		$	1,950

DEBT (Tables)

Summary of estimated debt and interest payment obligations

The following table summarizes our estimated debt and interest payment obligations as of March 31, 2014 for the remainder of fiscal 2014 and future fiscal years (in thousands):



	2014 (remainder)		2015		2016		2017		2018		Total
Debt payment obligations	$	1,250	$	6,875	$	39,375	$	10,000	$	15,000	$	72,500
Interest payments on debt payment obligations	446		1,723		1,043		532		125		3,869
Total	$	1,696	$	8,598	$	40,418	$	10,532	$	15,125	$	76,369

COMMITMENTS AND CONTINGENCIES (Tables)

Future minimum annual payments under operating leases

At March 31, 2014, future minimum annual payments under operating leases for the remainder of fiscal 2014 and future fiscal years are as follows (in thousands):



	2014 (remainder)		2015		2016		2017		2018		Thereafter		Total
Operating leases	$	633	$	2,503	$	2,497	$	1,537	$	297	$	53	$	7,520

COMMON STOCK AND TREASURY STOCK (Tables)

Common stock repurchase activity

Common stock repurchase activity under the share repurchase program was as follows (in thousands, except share and per share amounts):



Period	Total Number of Shares Purchased	Average Price Paid per Share		Estimated remaining balance available for share repurchase
August 13, 2012 – August 31, 2012	2,179,900	$	8.88	$	80,599
September 1, 2012 – September 30, 2012	992,014	$	11.93	$	68,742
October 1, 2012 - October 31, 2012	371,665	$	11.72	$	64,377
November 1, 2012 - November 30, 2012	657,700	$	11.16	$	57,024
December 1, 2012 - December 31, 2012	957,771	$	11.86	$	45,646
Total	5,159,050	$	10.52	$	45,646

STOCK BASED COMPENSATION (Tables)

Stock-based compensation expense

The following table shows total stock-based compensation expense included in the Condensed Consolidated Statements of Operations for the three and nine months ended March 31, 2014 and 2013 (in thousands):



	Three Months Ended March 31,				Nine Months Ended March 31,
	2014		2013		2014		2013
Cost of revenues	$	153	$	124	$	445	$	309
Research and development	630		324		1,679		991
Sales, general and administrative	258		252		1,506		949
	$	1,041	$	700	$	3,630	$	2,249

Summary of option activity for the company's stock incentive plans

The following is a summary of option activity for the Company’s stock incentive plans for the nine months ended March 31, 2014:



	Common Stock Options Outstanding
	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
						(In thousands)
Balance, June 30, 2013	3,614,262		$	3.07
Exercised	(749,237	)	2.38
Forfeitures and cancellations	(107,318	)	10.55
Balance, March 31, 2014	2,757,707		$	2.96	5.36	$	117,166
Vested and expected to vest as of March 31, 2014	2,730,108		$	2.88	5.33	$	116,212
Vested and exercisable as of March 31, 2014	2,240,079		$	1.44	4.73	$	98,595

Fair value of employee stock options

For the three and nine months ended March 31, 2013, the fair value of employee stock options was estimated using the following weighted average assumptions:



	Three Months Ended March 31, 2013			Nine Months Ended March 31, 2013
Expected term	6.1 years			6.1 years
Expected volatility	52		%	52		%
Risk-free interest rate	1.0		%	0.8		%
Expected dividend yield	—			—
Weighted average grant date fair value	$	6.69		$	5.51

Activity of RSUs

The following table summarizes the activity of the RSUs made by the Company:



	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested RSUs, June 30, 2013	744,906		$	14.74
RSUs granted	193,528		37.72
RSUs vested	(149,697	)	15.28
RSUs canceled	(223,124	)	22.01
Non-vested RSUs, March 31, 2014	565,613		$	19.59

SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS (Tables)

Revenues by product type

Revenues by product type for the three and nine months ended March 31, 2014 and 2013 were as follows (in thousands, except percentages):



	Three Months Ended March 31,								Nine Months Ended March 31,
	2014				2013				2014				2013
Service Provider Technology	$	120,987	82	%	$	75,475	91	%	$	326,658	78	%	$	195,262	89	%
Enterprise Technology	27,344		18	%	7,680		9	%	89,799		22	%	24,329		11	%
Total revenues	$	148,331	100	%	$	83,155	100	%	$	416,457	100	%	$	219,591	100	%

Revenues by geography

Revenues by geography were as follows (in thousands, except percentages):



	Three Months Ended March 31,								Nine Months Ended March 31,
	2014				2013				2014				2013
North America(1)	$	29,178	20	%	$	21,052	25	%	$	99,178	24	%	$	53,519	24	%
South America	25,059		17	%	18,496		22	%	73,827		18	%	45,820		21	%
Europe, the Middle East and Africa	77,883		52	%	31,617		38	%	189,591		45	%	90,690		41	%
Asia Pacific	16,211		11	%	11,990		15	%	53,861		13	%	29,562		14	%
Total revenues	$	148,331	100	%	$	83,155	100	%	$	416,457	100	%	$	219,591	100	%


(1)	Revenue for the United States was $27.7 million and $19.7 million for the three months ended March 31, 2014 and 2013, respectively. Revenue for the United States was $95.0 million and $50.5 million for the nine months ended March 31, 2014 and 2013, respectively.

Percentage of revenue and accounts receivable

Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated:



	Percentage of Revenues								Percentage of Accounts Receivable
	Three Months Ended March 31,				Nine Months Ended March 31,				March 31,		June 30,
	2014		2013		2014		2013		2014		2013
Customer A	11	%	15	%	13	%	13	%	12	%	12	%
Customer B	10	%	*		*		*		15	%	*
Customer C	*		*		*		*		14	%	11	%
Customer D	*		*		*		*		*		15	%

* denotes less than 10%

BUSINESS AND BASIS OF PRESENTATION - Additional Information (Detail) (USD $)

9 Months Ended

0 Months Ended

Mar. 31, 2014

Oct. 13, 2011

Jun. 18, 2013

Existing stockholders, including the Company's CEO and entities affiliated with Summit Partners, L.P.

Jun. 18, 2013

Options granted to underwriters

Oct. 19, 2011

Common Stock [Member]

IPO [Member]

Class of Stock [Line Items]

Year of incorporation

2003

Year of commencement of business

2005

Common stock issued under initial public offering (shares)

7,038,230

Common stock issue price under initial public offering (in usd per share)

$ 15.00

Conversion of preferred stock into common stock ratio

1

Number of shares offered

7,031,464

Price (in usd per share)

$ 16.00

Number of shares sold in connection with the partial exercise of the option to purchase additional shares

531,464

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Advertising costs

$ 1.8

$ 2.4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value Hierarchy (Detail) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2014

Jun. 30, 2013

Liabilities:

Debt

$ 72,408

$ 76,129

Level 1

Liabilities:

Debt

0

Level 2

Liabilities:

Debt

72,408

76,129

Level 3

Liabilities:

Debt

$ 0

FAIR VALUE OF FINANCIAL INSTRUMENTS - Additional Information (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2014

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Cash and cash equivalents

$ 291.7

International

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Cash and cash equivalents

$ 274.9

EARNINGS PER SHARE - Computation of basic and diluted earnings per share (Detail) (USD $)

In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Numerator:

Net income attributable to common stockholders

$ 45,199

$ 20,667

$ 127,519

$ 51,649

Denominator:

Weighted-average shares used in computing basic net income per share

87,901

87,004

87,656

88,702

Weighted-average shares used in computing diluted net income per share

89,775

88,953

89,667

90,656

Net income per share of common stock:

Basic (in usd per share)

$ 0.51

$ 0.24

$ 1.45

$ 0.58

Diluted (in usd per share)

$ 0.50

$ 0.23

$ 1.42

$ 0.57

Stock options

Denominator:

Stock options

1,646

1,803

1,754

1,808

Restricted stock units

Denominator:

Stock options

228

146

257

146

EARNINGS PER SHARE - Anti-dilutive Securities (Detail)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Potential shares of common stock excluded from the EPS calculation (in shares)

6

860

85

485

Stock options

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Potential shares of common stock excluded from the EPS calculation (in shares)

0

655

0

356

Restricted stock units

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Potential shares of common stock excluded from the EPS calculation (in shares)

6

205

85

129

BALANCE SHEET COMPONENTS - Inventory (Detail) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2014

Jun. 30, 2013

Balance Sheet Components [Abstract]

Finished goods

$ 65,622

$ 15,618

Raw materials

382

262

Inventories

$ 66,004

$ 15,880 ¹

[1] Derived from audited consolidated financial statements as of and for the year ended June 30, 2013.

BALANCE SHEET COMPONENTS - Prepaid Expenses and Other Current Assets (Detail) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2014

Jun. 30, 2013

Balance Sheet Components [Abstract]

Vendor deposits

$ 8,043

$ 0

Non-trade receivables

1,727

2,203

Other current assets

1,808

948

Prepaid expenses and other current assets

$ 11,578

$ 3,151 ¹

[1] Derived from audited consolidated financial statements as of and for the year ended June 30, 2013.

BALANCE SHEET COMPONENTS - Property and Equipment, Net (Detail) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2014

Jun. 30, 2013

Property, Plant and Equipment [Line Items]

Property and equipment gross

$ 11,553

$ 8,642

Less: Accumulated depreciation and amortization

(4,379)

(2,666)

Property and equipment, net

7,174

5,976 ¹

Testing equipment

Property, Plant and Equipment [Line Items]

Property and equipment gross

3,677

3,309

Computer and other equipment

Property, Plant and Equipment [Line Items]

Property and equipment gross

1,009

841

Tooling equipment

Property, Plant and Equipment [Line Items]

Property and equipment gross

2,854

1,737

Furniture and fixtures

Property, Plant and Equipment [Line Items]

Property and equipment gross

768

652

Leasehold improvements

Property, Plant and Equipment [Line Items]

Property and equipment gross

2,902

1,858

Software

Property, Plant and Equipment [Line Items]

Property and equipment gross

$ 343

$ 245

[1] Derived from audited consolidated financial statements as of and for the year ended June 30, 2013.

BALANCE SHEET COMPONENTS - Other Long-term Assets (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2013

Finite-Lived Intangible Assets [Line Items]

Long-term deferred cost of revenues

$ 1,218

$ 1,185

Intangible assets, net

815

1,029

Other long-term assets

629

672

Total

2,662

2,886 ¹

Amortization of intangible assets

25

0

200

0

Accumulated amortization

400

200

Trademarks [Member]

Finite-Lived Intangible Assets [Line Items]

Estimated future amortization trademark, remainder of fiscal year

37

Estimated future amortization trademark, 2015

244

Estimated future amortization trademark, 2016

244

Estimated future amortization trademark, 2017

222

Estimated future amortization trademark, 2018

61

Finite-Lived Intangible Assets, Amortization Expense, thereafter

$ 7

[1] Derived from audited consolidated financial statements as of and for the year ended June 30, 2013.

BALANCE SHEET COMPONENTS - Other Current Liabilities (Detail) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2014

Jun. 30, 2013

Mar. 31, 2013

Jun. 30, 2012

Balance Sheet Components [Abstract]

Warranty accrual

$ 2,950

$ 2,913

$ 1,950

$ 1,381

Accrued compensation and benefits

2,724

2,712

Accrual for an export compliance matter

0

1,625

Other accruals

4,072

3,900

Total accrued liabilities

$ 9,746

$ 11,150

ACCRUED WARRANTY - Additional Information (Detail)

9 Months Ended

Mar. 31, 2014

Product Warranties Disclosures [Abstract]

Warranty period

12 months

ACCRUED WARRANTY - Warranty Obligations (Detail) (USD $)

In Thousands, unless otherwise specified

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]

Beginning balance

$ 2,913

$ 1,381

Accruals for warranties issued during the period

3,287

1,684

Warranty costs incurred during the period

(3,250)

(1,115)

Ending balance

$ 2,950

$ 1,950

DEBT - Additional Information (Detail) (USD $)

9 Months Ended

3 Months Ended

9 Months Ended

0 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2013

Mar. 31, 2014

Line of Credit [Member]

Mar. 31, 2013

Line of Credit [Member]

Mar. 31, 2014

Line of Credit [Member]

Mar. 31, 2013

Line of Credit [Member]

Dec. 20, 2012

Revolving credit facility

Nov. 21, 2012

Revolving credit facility

Mar. 31, 2014

Revolving credit facility

Aug. 7, 2012

Revolving credit facility

Aug. 7, 2012

Sublimit for letters of credit

Aug. 7, 2012

Sublimit for swingline loan advances

Mar. 31, 2014

Term loan facility

Aug. 7, 2012

Term loan facility

Mar. 31, 2014

Term loan facility

Through July 1, 2014

Mar. 31, 2014

Term loan facility

October 1, 2014 through July 1, 2015

Mar. 31, 2014

Term loan facility

October 1, 2015 through July 1, 2017

Aug. 7, 2012

Previous credit agreement

Mar. 31, 2014

Base rate

Line of Credit [Member]

Minimum

Mar. 31, 2014

Base rate

Line of Credit [Member]

Maximum

Mar. 31, 2014

LIBOR

Line of Credit [Member]

Mar. 31, 2014

LIBOR

Line of Credit [Member]

Minimum

Mar. 31, 2014

LIBOR

Line of Credit [Member]

Maximum

Mar. 31, 2014

Federal Fund Rate

Line of Credit [Member]

Mar. 31, 2014

30 Day LIBOR

Line of Credit [Member]

Mar. 31, 2014

60 Day LIBOR

Line of Credit [Member]

Mar. 31, 2014

90 Day LIBOR

Line of Credit [Member]

Debt Disclosure [Line Items]

Revolving credit facility

$ 50,000,000.0

$ 5,000,000.0

$ 50,000,000.0

Borrowed term loans under the term loan facility

20,800,000

29,200,000

Remaining borrowing capacity under revolving credit facility

20,000,000

0

Borrowings under the revolving credit facility

20,000,000

10,000,000

Debt basis spread on variable rate

1.25%

1.75%

1.00%

2.25%

2.75%

0.50%

Variable base rate

30 days

60 days

90 days

Quarterly principal payments

1,250,000.00

1,875,000.000

2,500,000.0

Excess cash flow percent

25.00%

Leverage ratio

1.50

Company's capital stock of existing and future foreign subsidiaries

65.00%

Penal interest rate in case of default

2.00%

Debt Instrument, Periodic Payment

1,300,000

3,800,000

Repayments on term loan balance

(3,750,000)

(3,083,000)

(1,300,000)

(3,100,000)

Short term debt obligations

6,269,000

5,013,000 ¹

Long-term debt obligations

$ 66,139,000

$ 71,116,000 ¹

[1] Derived from audited consolidated financial statements as of and for the year ended June 30, 2013.

DEBT - Summary of debt and interest payment obligations (Detail) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2014

Debt Disclosure [Abstract]

Debt payment obligations, 2014 (remainder)

$ 1,250

Interest payments on debt payment obligations, 2014 (remainder)

446

Total, 2014 (remainder)

1,696

Debt payment obligations, 2015

6,875

Interest payments on debt payment obligations, 2015

1,723

Total, 2015

8,598

Debt payment obligations, 2016

39,375

Interest payments on debt payment obligations, 2016

1,043

Total, 2016

40,418

Debt payment obligations, 2017

10,000

Interest payments on debt payment obligations, 2017

532

Total, 2017

10,532

Debt payment obligations, 2018

15,000

Interest payments on debt payment obligations, 2018

125

Total, 2018

15,125

Debt payment obligations

72,500

Interest payments on debt payment obligations

3,869

Total

$ 76,369

COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) (USD $)

19 Months Ended

9 Months Ended

0 Months Ended

Mar. 31, 2014

claim

Jun. 30, 2013

Mar. 31, 2014

San Jose, CA

Mar. 4, 2014

Export Compliance Matters [Member]

Mar. 2, 2014

Export Compliance Matters [Member]

Property Subject to or Available for Operating Lease [Line Items]

Non-cancelable operating leases expiration period

through fiscal 2019

Non-cancelable purchase commitments

$ 20,900,000

$ 0

One-time payment to the U.S. Department of the Treasury

504,000

Loss contingency accrual

1,600,000

Loss contingency accrual, increase (decrease)

$ (1,100,000)

Shareholder class action complaints filed against Company

2

COMMITMENTS AND CONTINGENCIES - Future minimum annual payments under operating leases (Detail) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

2014 (remainder)

$ 633

2015

2,503

2016

2,497

2017

1,537

2018

297

Thereafter

53

Total

$ 7,520

COMMON STOCK AND TREASURY STOCK - Additional Information (Detail) (USD $)

0 Months Ended

1 Months Ended

3 Months Ended

7 Months Ended

9 Months Ended

Dec. 28, 2012

Dec. 15, 2012

Aug. 9, 2012

Dec. 31, 2012

Nov. 30, 2012

Oct. 31, 2012

Sep. 30, 2012

Aug. 31, 2012

Mar. 31, 2014

Mar. 31, 2013

Aug. 12, 2013

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2013

Common Stock And Treasury Stock [Abstract]

Common stock, shares authorized

500,000,000

Common stock, shares issued

132,303,947

131,452,763

Common stock, shares outstanding

88,064,987

87,213,803

Repurchase of common stock

$ 100,000,000

Share repurchases (in shares)

957,771

657,700

371,665

992,014

2,179,900

0

5,159,050

Dividends

$ 15,700,000

Cash dividends declared per common share

$ 0.18

$ 0

$ 0.18

COMMON STOCK AND TREASURY STOCK - Common Stock Repurchase Activity (Detail) (USD $)

0 Months Ended

1 Months Ended

3 Months Ended

7 Months Ended

9 Months Ended

Dec. 28, 2012

Dec. 15, 2012

Dec. 31, 2012

Nov. 30, 2012

Oct. 31, 2012

Sep. 30, 2012

Aug. 31, 2012

Mar. 31, 2014

Mar. 31, 2013

Aug. 12, 2013

Mar. 31, 2014

Mar. 31, 2013

Common Stock And Treasury Stock [Abstract]

Total number of shares purchased

957,771

657,700

371,665

992,014

2,179,900

0

5,159,050

Average price paid per share (in usd per share)

$ 11.86

$ 11.16

$ 11.72

$ 11.93

$ 8.88

$ 10.52

Estimated remaining balance available for share repurchase

$ 45,646,000

$ 57,024,000

$ 64,377,000

$ 68,742,000

$ 80,599,000

$ 45,646,000

Common Stock, Dividends, Per Share, Declared

$ 0.18

$ 0

$ 0.18

Dividends, Common Stock, Cash

$ 15,700,000

STOCK BASED COMPENSATION - Additional Information (Detail) (USD $)

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Authorized shares, stock incentive plans

9,916,169

Stock options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Aggregate intrinsic value of options exercised

$ 13,200,000

$ 1,100,000

$ 26,900,000

$ 1,500,000

Unrecognized compensation costs

2,300,000

Weighted-average period recognized

2 years 5 months 0 days

Restricted stock units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Unrecognized compensation costs

10,100,000

Weighted-average period recognized

3 years 5 months

Intrinsic value of RSUs vested

$ 2,400,000

$ 389,000

$ 5,300,000

$ 622,000

STOCK BASED COMPENSATION - Stock-based compensation expense (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Stock-based compensation expense

$ 1,041

$ 700

$ 3,630

$ 2,249

Cost of sales [Member]

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Stock-based compensation expense

153

124

445

309

Research and development [Member]

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Stock-based compensation expense

630

324

1,679

991

Selling, general and administrative [Member]

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Stock-based compensation expense

$ 258

$ 252

$ 1,506

$ 949

STOCK BASED COMPENSATION - Option activity for company's stock incentive plans (Detail) (USD $)

In Thousands, except Share data, unless otherwise specified

9 Months Ended

Mar. 31, 2014

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]

Number of Shares, Beginning Balance

3,614,262

Number of Shares, Exercised

(749,237)

Number of Shares, Forfeitures and Cancellations

(107,318)

Number of Shares, Ending Balance

2,757,707

Number of Shares, Vested and expected to vest as of December 31, 2013

2,730,108

Number of Shares, Vested and exercisable as of December 31, 2013

2,240,079

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]

Options Outstanding, Weighted Average Exercise Price, Beginning Balance (in usd per share)

$ 3.07

Options, Exercised, Weighted Average Exercise Price (in usd per share)

$ 2.38

Options, Forfeitures and Cancellations, Weighted Average Exercise Price (in usd per share)

$ 10.55

Options Outstanding, Weighted Average Exercise Price, Ending Balance (in usd per share)

$ 2.96

Options, Weighted Average Exercise Price, Vested and expected to vest, Ending Balance (in usd per share)

$ 2.88

Options, Weighted Average Exercise Price, Vested and exercisable, Ending Balance (in usd per share)

$ 1.44

Options outstanding, Weighted Average Remaining Contractual Term, Ending Balance

5 years 4 months 9 days

Options, Remaining Contractual Term, Vested and expected to vest, Ending Balance

5 years 3 months 29 days

Options, Weighted Average Remaining Contractual Term, Vested and exercisable, Ending Balance

4 years 8 months 23 days

Options outstanding, Intrinsic Value, Ending Balance

$ 117,166

Options, Aggregate Intrinsic Value, Vested and expected to vest, Ending Balance

116,212

Options, Aggregate Intrinsic Value, Vested and exercisable, Ending Balance

$ 98,595

STOCK BASED COMPENSATION - RSU Valuation Assumptions (Details)

3 Months Ended

9 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Simplified Method

6 years 1 month 6 days

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate

52.00%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate

1.00%

0.80%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate

0.00%

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

$ 6.69

$ 5.51

STOCK BASED COMPENSATION - Summary of RSU activity (Detail) (USD $)

9 Months Ended

Mar. 31, 2014

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]

Non-vested RSUs, number of Shares, Beginning Balance

744,906

RSUs granted, number of Shares

193,528

RSUs vested, number of Shares

(149,697)

RSUs canceled, number of Shares

(223,124)

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]

Non-vested RSUs, weighted average grant date fair value, Beginning balance (in usd per share)

$ 14.74

RSUs granted, weighted average grant date fair value (in usd per share)

$ 37.72

RSUs vested, weighted average grant date fair value (in usd per share)

$ 15.28

RSUs cancelled, weighted average grant date fair value (in usd per share)

$ 22.01

Non-vested RSUs, weighted average grant date fair value, Ending balance (in usd per share)

$ 19.59

Non-vested RSUs, number of Shares, Ending balance

565,613

INCOME TAXES - Additional Information (Detail) (USD $)

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Unrecognized tax benefits

$ 13,800,000

Increase in unrecognized tax benefits

535,000

Provision for income taxes

$ 4,653,000

$ 2,549,000

$ 14,854,000

$ 7,178,000

SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Revenues by product (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Segment Reporting Information [Line Items]

Total revenues

$ 148,331

$ 83,155

$ 416,457

$ 219,591

Revenues by product percentage

100.00%

Service Provider Technology

Segment Reporting Information [Line Items]

Total revenues

120,987

75,475

326,658

195,262

Revenues by product percentage

82.00%

91.00%

78.00%

89.00%

Enterprise Technology

Segment Reporting Information [Line Items]

Total revenues

$ 27,344

$ 7,680

$ 89,799

$ 24,329

Revenues by product percentage

18.00%

9.00%

22.00%

11.00%

SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Revenues by geography (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Segment Reporting Information [Line Items]

Revenues

$ 148,331

$ 83,155

$ 416,457

$ 219,591

Revenues by geography percentage

100.00%

North America

Segment Reporting Information [Line Items]

Revenues

29,178 ¹

21,052 ¹

99,178 ¹

53,519 ¹

Revenues by geography percentage

20.00% ¹

25.00% ¹

24.00% ¹

South America

Segment Reporting Information [Line Items]

Revenues

25,059

18,496

73,827

45,820

Revenues by geography percentage

17.00%

22.00%

18.00%

21.00%

Europe, the Middle East and Africa

Segment Reporting Information [Line Items]

Revenues

77,883

31,617

189,591

90,690

Revenues by geography percentage

52.00%

38.00%

45.00%

41.00%

Asia Pacific

Segment Reporting Information [Line Items]

Revenues

16,211

11,990

53,861

29,562

Revenues by geography percentage

11.00%

15.00%

13.00%

14.00%

United States

Segment Reporting Information [Line Items]

Revenues

$ 27,700

$ 19,700

$ 95,000

$ 50,500

[1] Revenue for the United States was $27.7 million and $19.7 million for the three months ended March 31, 2014 and 2013, respectively. Revenue for the United States was $95.0 million and $50.5 million for the nine months ended March 31, 2014 and 2013, respectively.

SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Additional Information (Detail)

3 Months Ended

9 Months Ended

Mar. 31, 2014

revenue_category

Segment Reporting [Abstract]

Number of primary categories

2

Percentage of accounts receivable by major customer

10.00%

Percentage of revenues by major customer

10.00%

SEGMENT INFORMATION, REVENUES BY GEOGRAPHY AND SIGNIFICANT CUSTOMERS - Percentage of Revenues, Accounts Receivable (Detail)

3 Months Ended

9 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2013

Revenue, Major Customer [Line Items]

Percentage of revenues

10.00%

Percentage of accounts receivable

10.00%

Customer A

Revenue, Major Customer [Line Items]

Percentage of revenues

11.00%

15.00%

13.00%

Percentage of accounts receivable

12.00%

Customer B

Revenue, Major Customer [Line Items]

Percentage of revenues

10.00%

Percentage of accounts receivable

15.00%

Customer C

Revenue, Major Customer [Line Items]

Percentage of accounts receivable

14.00%

11.00%

Customer D

Revenue, Major Customer [Line Items]

Percentage of accounts receivable

15.00%

RELATED PARTY TRANSACTIONS AND CERTAIN OTHER TRANSACTIONS Related Party Transaction (Details) (Chief Executive Officer, Aircraft Lease Agreement, USD $)

In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2014

Nov. 13, 2013

Chief Executive Officer |
Aircraft Lease Agreement

Related Party Transaction [Line Items]

Related party transaction, aircraft lease

5,000

Related party transaction, expenses from aircraft lease

$ 120

SUBSEQUENT EVENTS - Additional Information (Details) (USD $)

0 Months Ended

Aug. 7, 2012

Revolving Credit Facility [Member]

Aug. 7, 2012

Letter of Credit [Member]

Aug. 7, 2012

Swingline Loan [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

Minimum [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

Maximum [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

Base Rate [Member]

Minimum [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

Base Rate [Member]

Maximum [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

LIBOR

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

LIBOR

Minimum [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

LIBOR

Maximum [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

Federal Fund Rate [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

Applicable Interest Rate [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Revolving Credit Facility [Member]

United States

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Letter of Credit [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Swingline Loan [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Swingline Loan [Member]

Base Rate [Member]

Minimum [Member]

May 5, 2014

Subsequent Event [Member]

Credit Agreement [Member]

Swingline Loan [Member]

Base Rate [Member]

Maximum [Member]

Subsequent Event [Line Items]

Line of credit facility, maximum borrowing capacity

$ 50,000,000.0

$ 5,000,000.0

$ 150,000,000

$ 110,000,000

$ 5,000,000

$ 15,000,000

Line of credit facility, option, additional maximum borrowing capacity

50,000,000

Line of credit facility, outstanding

$ 72,300,000

Debt basis spread on variable rate

0.25%

1.00%

1.25%

2.00%

0.25%

1.00%

Line of credit facility, base rate

1.00%

0.50%

Line of credit facility, default rate

2.00%

Line of credit facility, unused capacity, commitment fee percentage

0.20%

0.35%