ShoreTel Inc

CIK:0001388133|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Hosted and related services	$ 150,242	$ 126,670	$ 105,381
Product	131,174	158,232	181,272
Support and services	76,343	75,382	73,017
Total revenue	357,759	360,284	359,670
Cost of revenue:
Hosted and related services	70,406	61,384	60,401
Product	43,543	51,881	63,253
Support and services	17,194	19,199	17,453
Total cost of revenue	131,143	132,464	141,107
Gross profit	226,616	227,820	218,563
Operating expenses:
Research and development	67,068	60,509	53,352
Sales and marketing	127,637	126,123	118,931
General and administrative	43,532	41,778	39,778
Settlements and defense fees	(30)	56	8,475
Acquisition-related costs	0	1,489	0
Total operating expenses	238,207	229,955	220,536
Income (loss) from operations	(11,591)	(2,135)	(1,973)
Other income (expense):
Interest expense	(455)	(469)	(531)
Interest income and other (expense), net	541	(1,628)	(939)
Total other income (expense)	86	(2,097)	(1,470)
Loss before provision for income taxes	(11,505)	(4,232)	(3,443)
Provision for income taxes	938	560	961
Net loss	$ (12,443)	$ (4,792)	$ (4,404)
Net loss per common share, basic and diluted (in dollars per share)	$ (0.18)	$ (0.07)	$ (0.07)
Shares used in computing net loss per common share, basic and diluted (in shares)	68,100	66,405	63,953

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (12,443)	$ (4,792)	$ (4,404)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	20,597	20,506	19,072
Stock-based compensation expense	9,789	8,871	8,413
Amortization of premium on investments	374	161	120
Loss on disposal of property, equipment and other assets	56	145	97
Provision for doubtful accounts receivable	217	216	182
Impairment of indemnification asset	0	0	3,584
Fair value of escrow settlement modification	0	0	664
Gain on non-marketable investments	(920)	0	0
Changes in assets and liabilities:
Accounts receivable	1,292	3,683	(2,918)
Inventories	711	2,910	11,413
Indemnification asset	0	0	2,022
Prepaid expenses and other current assets	605	2,109	(4,249)
Other assets	(215)	(4)	(34)
Accounts payable	(1,079)	(701)	(795)
Accrued liabilities and other	(5,127)	(1,249)	7,687
Accrued employee compensation	(2,185)	3,101	(1,216)
Accrued taxes and surcharges	(303)	(5,985)	(2,284)
Deferred revenue	5,064	6,115	3,791
Net cash provided by operating activities	16,433	35,086	41,145
Cash flows from investing activities:
Purchases of investments	(31,994)	(48,210)	(12,176)
Proceeds from sale/maturities of investments	29,280	9,673	5,757
Purchases of property and equipment	(10,937)	(10,834)	(11,393)
Cost of acquisition of businesses, net of cash acquired	0	(14,322)	0
Purchase of software licenses, patents and other intangible assets	(567)	0	(1,692)
Proceeds from sales/maturities of non-marketable investments	1,074	0	0
Net cash used in investing activities	(13,144)	(63,693)	(19,504)
Cash flows from financing activities:
Proceeds from issuance of common stock	6,067	10,589	9,294
Taxes paid on vested and released stock awards	(1,543)	(1,280)	(1,226)
Repurchases of common stock	(2,298)	(819)	0
Payments made under capital leases	(18)	(319)	(393)
Debt issuance costs	0	0	(626)
Net cash provided by (used in) financing activities	2,208	8,171	7,049
Net increase (decrease) in cash and cash equivalents	5,497	(20,436)	28,690
Cash and cash equivalents at beginning of year	61,726	82,162	53,472
Cash and cash equivalents at end of year	67,223	61,726	82,162
Supplemental cash flow disclosure:
Cash paid for interest	12	26	298
Cash paid for income taxes	785	1,209	885
Noncash financing and investing activities:
Purchase of patents included in period-end liabilities	0	0	333
Unpaid portion of property and equipment purchases included in period-end accounts payable	$ 317	$ 998	$ 1,318

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 67,223	$ 61,726
Short-term investments	48,665	46,433
Accounts receivable, net of allowances of $500 and $678 as of June 30, 2017 and 2016, respectively	31,393	32,902
Inventories	11,624	12,488
Prepaid expenses and other current assets	13,019	13,420
Total current assets	171,924	166,969
Property and equipment, net	19,066	21,551
Goodwill	129,449	129,449
Intangible assets, net	12,087	18,788
Other assets	6,926	5,581
Total assets	339,452	342,338
Current liabilities:
Accounts payable	14,011	14,932
Accrued liabilities and other	15,633	20,397
Accrued employee compensation	16,740	18,925
Accrued taxes and surcharges	3,614	3,917
Deferred revenue	61,524	56,765
Total current liabilities	111,522	114,936
Long-term deferred revenue	21,245	20,940
Other long-term liabilities	4,492	3,733
Total liabilities	137,259	139,609
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, par value $.001 per share, authorized 5,000 shares; none issued and outstanding	0	0
Common stock and additional paid-in capital, par value $.001 per share, authorized 500,000; 69,122 shares issued and 68,657 shares outstanding as of June 30, 2017 and 67,517 shares issued and 67,391 shares outstanding as of June 30, 2016	394,184	379,871
Treasury stock, at cost	(3,117)	(819)
Accumulated other comprehensive income (loss)	(72)	36
Accumulated deficit	(188,802)	(176,359)
Total stockholders' equity	202,193	202,729
Total liabilities and stockholders' equity	$ 339,452	$ 342,338