Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 31, 2018	Jan. 24, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	EXTREME NETWORKS INC
Entity Central Index Key	0001078271
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	EXTR
Amendment Flag	false
Entity Common Stock, Shares Outstanding		116,759,619

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Current assets:
Cash	$ 140,643	$ 121,139
Accounts receivable, net of allowance for doubtful accounts of $1,678 at December 31, 2018 and $1,478 at June 30, 2018	144,909	212,423
Inventories	58,297	63,867
Prepaid expenses and other current assets	39,088	30,484
Total current assets	382,937	427,913
Property and equipment, net	74,499	78,519
Intangible assets, net	63,544	77,092
Goodwill	137,799	139,082
Other assets	53,170	47,642
Total assets	711,949	770,248
Current liabilities:
Current portion of long-term debt	9,009	9,007
Accounts payable	34,977	75,689
Accrued compensation and benefits	46,500	50,351
Accrued warranty	12,808	12,807
Deferred revenue	138,239	130,865
Other accrued liabilities	70,035	81,153
Total current liabilities	311,568	359,872
Deferred revenue, less current portion	47,854	43,660
Long-term debt, less current portion	174,246	188,749
Deferred income taxes	1,699	6,135
Other long-term liabilities	60,711	59,100
Commitments and contingencies (Note 10)
Stockholders’ equity:
Convertible preferred stock, $.001 par value, issuable in series, 2,000 shares authorized; none issued
Common stock, $.001 par value, 750,000 shares authorized; 119,089 and 116,124 shares issued, respectively; 116,723 and 116,124 shares outstanding, respectively	119	116
Additional paid-in-capital	962,924	942,397
Accumulated other comprehensive loss	(2,725)	(1,703)
Accumulated deficit	(829,447)	(828,078)
Treasury stock at cost: 2,366 and 0 shares, respectively	(15,000)
Total stockholders’ equity	115,871	112,732
Total liabilities and stockholders’ equity	$ 711,949	$ 770,248

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Current assets:
Allowance for doubtful accounts	$ 1,678	$ 1,478
Stockholders’ equity:
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	2,000,000	2,000,000
Convertible preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	119,089,000	116,124,000
Common stock, shares outstanding	116,723,000	116,124,000
Treasury stock, shares	2,366,000	0

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Net revenues:
Total net revenues	$ 252,680	$ 231,123	$ 492,566	$ 442,838
Cost of revenues:
Total cost of revenues	111,381	102,137	219,196	201,471
Gross profit:
Total gross profit	141,299	128,986	273,370	241,367
Operating expenses:
Research and development	52,204	45,907	103,445	80,192
Sales and marketing	68,342	65,659	135,924	121,220
General and administrative	13,886	11,669	26,657	23,854
Acquisition and integration costs, net of bargain purchase gain	67	34,115	2,613	38,359
Restructuring charges, net of reversals	474		1,282
Amortization of intangibles	1,575	2,746	3,716	4,360
Total operating expenses	136,548	160,096	273,637	267,985
Operating income (loss)	4,751	(31,110)	(267)	(26,618)
Interest income	643	717	1,037	1,364
Interest expense	(3,066)	(2,504)	(6,592)	(4,719)
Other (expense) income, net	(399)	(643)	88	2,484
Income (loss) before income taxes	1,929	(33,540)	(5,734)	(27,489)
(Benefit ) provision for income taxes	(5,270)	(1,617)	(3,868)	58
Net income (loss)	$ 7,199	$ (31,923)	$ (1,866)	$ (27,547)
Basic and diluted net (loss) income per share:
Net income (loss) per share - basic	$ 0.06	$ (0.28)	$ (0.02)	$ (0.24)
Net income (loss) per share - diluted	$ 0.06	$ (0.28)	$ (0.02)	$ (0.24)
Shares used in per share calculation - basic	117,544	113,621	117,456	112,931
Shares used in per share calculation - diluted	119,544	113,621	117,456	112,931
Product
Net revenues:
Total net revenues	$ 189,567	$ 174,850	$ 367,287	$ 339,624
Cost of revenues:
Total cost of revenues	86,487	78,472	170,030	158,517
Gross profit:
Total gross profit	103,080	96,378	197,257	181,107
Service
Net revenues:
Total net revenues	63,113	56,273	125,279	103,214
Cost of revenues:
Total cost of revenues	24,894	23,665	49,166	42,954
Gross profit:
Total gross profit	$ 38,219	$ 32,608	$ 76,113	$ 60,260

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 7,199	$ (31,923)	$ (1,866)	$ (27,547)
Available for sale securities:
Change in unrealized gains on available for sale securities		54		237
Net change in foreign currency translation adjustments	(28)	432	(525)	787
Other comprehensive income (loss), net of tax:	(28)	486	(525)	1,024
Total comprehensive income (loss)	$ 7,171	$ (31,437)	$ (2,391)	$ (26,523)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net loss	$ (1,866)	$ (27,547)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	13,476	8,093
Amortization of intangible assets	13,552	11,023
Provision for doubtful accounts	861	1,180
Stock-based compensation	15,525	11,828
Deferred income taxes	(6,516)	(2,135)
Unrealized/realized (gain) loss on equity investment	274	(3,757)
Realized gain on bargain purchase		(4,920)
Non-cash interest	1,532	510
Other non-cash items	(344)	1,308
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable	66,568	(11,188)
Inventories	5,570	(449)
Prepaid expenses and other assets	(12,390)	1,188
Accounts payable	(40,050)	17,547
Accrued compensation and benefits	(3,851)	3,734
Deferred revenue	11,568	4,446
Other current and long-term liabilities	(2,298)	3,387
Net cash provided by operating activities	61,611	14,248
Cash flows from investing activities:
Capital expenditures	(11,140)	(13,309)
Business acquisitions		(97,581)
Proceeds from sale of investment	727	4,922
Net cash used in investing activities	(10,413)	(105,968)
Cash flows from financing activities:
Borrowings under Term Loan		100,000
Repayments of debt	(14,750)	(8,686)
Loan fees on borrowings	(545)	(1,494)
Repurchase of stock	(15,000)
Proceeds from issuance of common stock, net of tax withholding	5,005	(1,536)
Capital lease financing	(183)
Contingent consideration obligations	(3,856)
Deferred payments on an acquisition	(2,000)
Net cash (used in) provided by financing activities	(31,329)	88,284
Foreign currency effect on cash	(365)	94
Net increase (decrease) in cash	19,504	(3,342)
Cash and cash equivalents at beginning of period	121,139	130,450
Cash and cash equivalents at end of period	$ 140,643	$ 127,108

Description of Business and Basis of Presentation

6 Months Ended

Dec. 31, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business and Basis of Presentation

1.	Description of Business and Basis of Presentation

Extreme Networks, Inc., together with its subsidiaries (collectively referred to as “Extreme” or the “Company”), is a leader in providing software-driven networking solutions for enterprise customers. The Company conducts its sales and marketing activities on a worldwide basis through distributors, resellers and the Company’s field sales organization. Extreme was incorporated in California in 1996 and reincorporated in Delaware in 1999.

The unaudited condensed consolidated financial statements of Extreme included herein have been prepared under 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 generally accepted accounting principles have been condensed or omitted under such rules and regulations. The condensed consolidated balance sheet at June 30, 2018 was derived from audited financial statements as of that date but does not include all disclosures required by generally accepted accounting principles for complete financial statements. These interim financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018.

The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations and cash flows for the interim periods presented and the financial condition of Extreme at December 31, 2018. The results of operations for the three and six months ended December 31, 2018 are not necessarily indicative of the results that may be expected for fiscal 2019 or any future periods.

Fiscal Year

The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2019” or “2019” represent the fiscal year ending June 30, 2019. All references herein to “fiscal 2018” or “2018” represent the fiscal year ended June 30, 2018.

Principles of Consolidation

The consolidated financial statements include the accounts of Extreme and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

The Company predominantly uses the United States Dollar as its functional currency. The functional currency for certain of its foreign subsidiaries is the local currency. For those subsidiaries that operate in a local currency functional environment, all assets and liabilities are translated to United States Dollars at current month end rates of exchange; and revenue and expenses are translated using the monthly average rate.

Accounting Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

For a description of significant accounting policies, see Note 3, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018. There have been no material changes to the Company’s significant accounting policies since the filing of the Annual Report on Form 10-K.

Recently Adopted Accounting Pronouncements

In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. The guidance was adopted effective July 1, 2018 and the Company reclassified a $0.5 million unrealized gain, net of tax, related to its available-for-sale investments from accumulated other comprehensive loss to accumulated deficit as a cumulative-effect adjustment in the accompanying condensed consolidated balance sheets. Future changes in fair value will be included in earnings in each period.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments to provide guidance on the classification of eight cash flow issues in order to reduce diversity in practice. The Company adopted the new guidance effective July 1, 2018. The amendments in this update have been applied on a retrospective transition method to each period presented. The adoption of this guidance did not have a material effect on the Company’s presentation of cash flows.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Historically GAAP had prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold outside the consolidated group. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-16 effective July 1, 2018 on a modified retrospective basis. The adoption of this guidance did not have a material effect on the Company’s financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under Topic 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The Company adopted this guidance effective July 1, 2018, on a prospective basis. The adoption of this guidance did not have a material effect on the Company’s financial statements.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under Topic 842, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the statement of operations will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of Topic 842 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, Topic 842 is applied on the modified retrospective method through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. The Company believes that Topic 842 will have a material impact on its financial position, as a result of recognizing right-of-use assets and lease liabilities on its consolidated balance sheets. In addition, in December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842), which includes narrow-scope improvements for lessors to increase transparency and comparability about leasing transactions. The Company continues to evaluate the impact these new standards will have on its condensed consolidated statement of operations and statement of cash flows. This guidance will become effective for the Company beginning with its fiscal year 2020, beginning on July 1, 2019.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which is intended to allow companies to better align risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. In addition, in October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815), which amends Topic 815 to add the overnight index swap (OIS) rate based on the secured overnight financing rate as a fifth U.S. benchmark interest rate. These standards are effective for interim and annual reporting periods beginning after December 15, 2018. The Company is continuing to evaluate the accounting, transition and disclosure requirements of these standards, but does not believe it will have a material impact on the Company’s financial statements upon adoption. This guidance is effective for the Company beginning with its fiscal year 2020, beginning on July 1, 2019.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), this standard that allows the reclassification from AOCI to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act ("Tax Reform Act"). The amount of the reclassification is the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances related to items remaining in AOCI. This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The new standard is to be applied either in the period of adoption or retrospectively to each period (or periods) in which the effects of the change in the income tax rate in the Tax Reform Act are recognized. Management is currently evaluating implementation options and impact on the Company's financial statements and related disclosures. This guidance is effective for the Company beginning with its fiscal year 2020, beginning on July 1, 2019.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which removes, modifies and adds various disclosure requirements around the topic in order to clarify and improve the cost-benefit nature of disclosures. For example, disclosures around transfers between fair value hierarchy levels will be removed and further detail around changes in unrealized gains and losses for the period and unobservable inputs determining Level 3 fair value measurements will be added. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. This guidance is effective for the Company beginning with its fiscal year 2021, beginning on July 1, 2020.

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), which aligns the requirements for capitalizing implementation costs incurred in a service contract hosting arrangement with those of developing or obtaining internal-use software. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. This guidance is effective for the Company beginning with its fiscal year 2021, beginning on July 1, 2020.

Revenues

6 Months Ended

Dec. 31, 2018

Revenue From Contract With Customer [Abstract]

Revenues

The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which the Company adopted on July 1, 2017, using the retrospective method. The Company derives the majority of its revenue from sales of its networking equipment, with the remaining revenue generated from service fees primarily relating to maintenance contracts with additional revenues from professional services, and training for its products. The Company sells its products and maintenance contracts direct to customers and to partners in two distribution channels, or tiers. The first tier consists of a limited number of independent distributors that stock its products and sell primarily to resellers. The second tier of the distribution channel consists of a non-stocking distributors and value-added resellers that sell directly to end-users. Products and services may be sold separately or in bundled packages.

Revenue Recognition

Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using the best estimated selling price approach.

The Company’s performance obligations are satisfied at a point in time or over time as work progresses. Substantially all of the Company’s product sales revenues as reflected on the condensed consolidated statements of operations for the three and six months ended December 31, 2018 and 2017 are recognized at a point in time. Substantially all of the Company’s service revenue is recognized over time. For revenue recognized over time, the Company uses an input measure, days elapsed, to measure progress.

On December 31, 2018, the Company had $186.1 million of remaining performance obligations, which is comprised of deferred maintenance revenue and services not yet delivered. The Company expects to recognize approximately 48 percent of its remaining performance obligations as revenue in fiscal 2019, an additional 35 percent in fiscal 2020 and 17 percent of the balance thereafter.

Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue in the consolidated balance sheet. Services provided under renewable support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are typically at periodic intervals (e.g., quarterly or annually). The Company sometimes receives payments from its customers in advance of services being provided, resulting in deferred revenues. These liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period.

Revenue recognized for the three months ended December 31, 2018 and 2017 that was included in the deferred revenue balance at the beginning of each period was $59.9 million and $36.9 million, respectively. Revenue recognized for the six months ended December 31, 2018 and 2017 that was included in the deferred revenue balance at the beginning of each period was $88.8 million and $52.9 million, respectively.

Contract Costs. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. Management expects that commission fees paid to sales representative as a result of obtaining service contracts and contract renewals are recoverable and therefore the Company’s capitalized balances in the amount of $5.3 million and $3.2 million at December 31, 2018 and 2017, respectively. Capitalized commission fees are amortized on a straight-line basis over the average period of service contracts of approximately three years, and are included in “Sales and marketing” in the accompanying condensed consolidated statements of operations. Amortization recognized during the three months ended December 31, 2018 and 2017, was $0.7 million and $0.5 million, respectively. Amortization recognized during the six months ended December 31, 2018 and 2017 was $1.4 million and $0.9 million, respectively. There was no impairment loss in relation to the costs capitalized.

Estimated Variable Consideration. There were no material changes in the current period to the estimated variable consideration for performance obligations which were satisfied or partially satisfied during previous periods.

Revenue by Category

The following table sets forth the Company’s revenue disaggregated by sales channel and geographic region based on the customer’s ship-to locations (in thousands):

	Three Months Ended
	December 31, 2018						December 31, 2017
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	44,141	$	55,326	$	99,467	$	56,269	$	54,559	$	110,828
Other		8,269		5,380		13,649		1,155		5,698		6,853
Total Americas		52,410		60,706		113,116		57,424		60,257		117,681
EMEA		79,876		32,773		112,649		55,956		33,624		89,580
APAC		4,767		22,148		26,915		5,131		18,731		23,862
Total net revenues	$	137,053	$	115,627	$	252,680	$	118,511	$	112,612	$	231,123

	Six Months Ended
	December 31, 2018						December 31, 2017
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	100,883	$	115,262	$	216,145	$	98,661	$	105,549	$	204,210
Other		12,762		10,904		23,666		15,491		12,093		27,584
Total Americas		113,645		126,166		239,811		114,152		117,642		231,794
EMEA		141,207		63,611		204,818		107,188		61,527		168,715
APAC:		7,116		40,821		47,937		8,395		33,934		42,329
Total net revenues	$	261,968	$	230,598	$	492,566	$	229,735	$	213,103	$	442,838

Customer Concentrations

The Company performs ongoing credit evaluations of its customers and generally does not require collateral in exchange for credit.

The following table sets forth major customers accounting for 10% or more of the Company’s net revenues:

	Three Months Ended		Six Months Ended
	December 31, 2018	December 31, 2017	December 31, 2018	December 31, 2017
Tech Data Corporation	22%	12%	19%	12%
Westcon Group Inc.	15%	14%	14%	15%
Jenne Corporation	12%	*	12%	10%

The following table sets forth major customers accounting for 10% or more of the Company’s accounts receivable balance:

	December 31, 2018	June 30, 2018
Westcon Group Inc.	23%	*
Tech Data Corporation	22%	17%
Jenne Corporation	*	13%

* Less than 10% of accounts receivable

Business Combinations

6 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Business Combinations

4. Business Combinations

Fiscal 2018 Acquisitions

Data Center Business

The Company completed its acquisition of the data center business (the “Data Center Business”) of Brocade Communication Systems, Inc.’s (“Brocade”) on October 27, 2017 (the “Data Center Closing Date”), pursuant to an Asset Purchase Agreement (the “Data Center Business APA”) dated as of October 3, 2017, by and between the Company and Brocade for an aggregate purchase consideration of $84.3 million. Under the terms and conditions of the Data Center Business APA, the Company acquired customers, employees, technology and other assets of the Data Center Business as well as assumed certain contracts and other liabilities of the Data Center Business.

The following table below summarizes the final allocation of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

		Final Allocation
Accounts receivables		$	33,488
Inventories			19,934
Prepaid expenses and other current assets			988
Property and equipment	(a)		20,220
Other assets			4,734
Accounts payable and accrued expenses			(16,494	)
Deferred revenue			(33,025	)
Net tangible assets acquired			29,845
Identifiable intangible assets			32,800
Goodwill	(a)		21,692
Total intangible assets acquired			54,492
Total net assets acquired		$	84,337

(a)

Includes an adjustment after the measurement period to record $1.3 million of additional property and equipment acquired at an international location.

Campus Fabric Business

The Company completed its acquisition of Avaya Inc.’s (“Avaya”) fabric-based secure networking solutions and network security solutions business (the “Campus Fabric Business”) on July 14, 2017, (the “Campus Fabric Business Closing Date”) pursuant to an Asset Purchase Agreement (the “Campus Fabric Business APA”) dated March 7, 2017. Under the terms and conditions of the Campus Fabric Business APA, the Company acquired the customers, employees, technology and other assets of the Campus Fabric Business, as well as assumed certain contracts and other liabilities of the Campus Fabric Business, for total consideration of $79.4 million.

The following table below summarizes the final allocation of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

	Final Allocation
Accounts receivables	$	19,527
Inventories		14,165
Prepaid expenses and other current assets		240
Property and equipment		5,406
Other assets		7,009
Accounts payable and accrued expenses		(31,670	)
Deferred revenue		(8,994	)
Other long-term liabilities		(5,849	)
Net tangible assets acquired		(166	)
Identifiable intangible assets		41,300
In-process research and development		2,400
Goodwill		35,892
Total intangible assets acquired		79,592
Total net assets acquired	$	79,426

Capital Financing Business

On December 1, 2017, Company completed its acquisition of a capital financing business (the “CF Business”), pursuant to a Bill of Sale and Assignment and Assumption Agreement (the “Assumption Agreement”) between the Company and Broadcom. Under the terms and conditions of the Assumption Agreement, the Company acquired customers, employees, contracts and lease equipment of the CF Business equal to the earn out payments to Broadcom of 90% of acquired financing receivables to be collected commencing at the closing date.

Net assets acquired included financing receivables of $13.7 million, lease equipment of $3.5 million and identifiable intangible assets of $0.8 million, and the fair value of the contingent consideration was $13.0 million. As the preliminary fair value of the net assets acquired exceeded the fair value of the purchase consideration, the Company recorded a bargain purchase gain of $5.0 million.

Pro forma financial information

The following unaudited pro forma results of operations are presented as though the acquisitions of the Data Center Business, CF Business and Campus Fabric Business had occurred as of the beginning of fiscal 2017 presented after giving effect to purchase accounting adjustments relating to inventories, deferred revenue, depreciation and amortization on acquired property and equipment and intangibles, acquisition costs, interest income and expense and related tax effects.

The pro forma results of operations are not necessarily indicative of the combined results that would have occurred had the acquisition been consummated as of the beginning of fiscal 2017, nor are they necessarily indicative of future operating results. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the unaudited pro forma results.

The unaudited pro forma financial information for the three and six months ended December 31, 2017, combines the historical results for Extreme for those periods, which include the results of the Data Center Business and CF Business subsequent to the acquisition date, with their historical results up to the acquisition date.

Pro forma results of operations from the Data Center Business, CF Business and Campus Fabric Business acquisitions included in the pro forma results of operations for the three and six months ended December 31, 2017, have not been adjusted for the adoption of Topic 606 because the Company determined it is impractical to estimate the impact of the adoption.

The following table summarizes the unaudited pro forma financial information (in thousands, except per share amounts):

	Three Months Ended			Six Months Ended
		December 31, 2017		December 31, 2017
Net revenues		$	252,532	$	537,040
Net income (loss)		$	1,152	$	(7,622	)
Net income (loss) per share - basic		$	0.01	$	(0.07	)
Net income (loss) per share - diluted		$	0.01	$	(0.07	)
Shares used in per share calculation - basic			113,621		112,931
Shares used in per share calculation - diluted			119,656		112,931

Balance Sheet Accounts

6 Months Ended

Dec. 31, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance Sheet Accounts

5.	Balance Sheet Accounts

Cash and Marketable Securities

The following is a summary of cash and marketable securities (in thousands):

	December 31, 2018		June 30, 2018
Cash	$	140,643	$	121,139
Marketable securities (consisting of available-for-sale securities)		428		1,459
Total cash and marketable securities	$	141,071	$	122,598

Marketable equity securities are recorded in “Prepaid expense and other current assets” in the accompanying condensed consolidated balance sheets as these securities are publicly-traded with readily determinable values. Marketable equity securities are classified as available-for-sale and reported at fair value with unrealized gains and losses included in “Other (expense) income, net” in the accompanying condensed consolidated statements of operations.

Inventories

The Company values its inventory at lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The Company has established inventory allowances when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Any written down or obsolete inventory subsequently sold has not had a material impact on gross margin for any of the periods presented.

Inventories consist of the following (in thousands):

	December 31, 2018		June 30, 2018
Finished goods	$	44,179	$	49,393
Raw materials		14,118		14,474
Total Inventories	$	58,297	$	63,867

Property and Equipment, Net

Property and equipment consist of the following (in thousands):

	December 31, 2018			June 30, 2018
Computers and equipment	$	70,121		$	60,677
Purchased software		22,968			21,389
Office equipment, furniture and fixtures		11,564			14,980
Leasehold improvements		51,167			50,070
Total property and equipment		155,820			147,116
Less: accumulated depreciation and amortization		(81,321	)		(68,597	)
Property and equipment, net	$	74,499		$	78,519

Deferred Revenue

Deferred revenue represents amounts for (i) deferred maintenance and support revenue and (ii) other deferred revenue including professional services and training when the revenue recognition criteria have not been met.

Guarantees and Product Warranties

The Company’s standard hardware warranty period is typically 12 months from the date of shipment to end-users and 90 days for software. For certain products, the Company offers a limited lifetime hardware warranty commencing on the date of shipment from the Company and ending five (5) years following the Company’s announcement of the end of sale of such product. Upon shipment of products to its customers, the Company estimates expenses for the cost to repair or replace products that may be returned under warranty and accrue a liability in cost of product revenue for this amount. The determination of the Company’s warranty requirements is based on actual historical experience with the product or product family, estimates of repair and replacement costs and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors.

The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2018 and 2017 (in thousands):

	Three Months Ended						Six Months Ended
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Balance beginning of period	$	12,601		$	13,499		$	12,807		$	10,584
Warranties assumed due to acquisitions		—			526			—			3,682
New warranties issued		4,145			1,657			7,867			3,929
Warranty expenditures		(3,938	)		(2,672	)		(7,866	)		(5,185	)
Balance end of period	$	12,808		$	13,010		$	12,808		$	13,010

To facilitate sales of its products in the normal course of business, the Company indemnifies its resellers and end-user customers with respect to certain matters. The Company has agreed to hold the customer harmless against losses arising from a breach of intellectual property infringement or other. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results or financial position.

Other long-term liabilities

The following is a summary of long-term liabilities (in thousands):

	December 31, 2018		June 30, 2018
Acquisition related deferred payments, less current portion	$	11,442	$	13,251
Contingent consideration obligations, less current portion		4,095		4,898
Other contractual obligations, less current portion		29,647		31,200
Other		15,527		9,751
Total other long-term liabilities	$	60,711	$	59,100

Concentrations

The Company may be subject to concentration of credit risk as a result of certain financial instruments consisting of accounts receivable and marketable securities. The Company does not invest an amount exceeding 10% of its combined cash or cash equivalents in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies and money market accounts.

Fair Value Measurements

6 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

6.	Fair Value Measurements

A three-tier fair value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows:

•

Level 1 Inputs - unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 2 Inputs - quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and

•

Level 3 Inputs - unobservable inputs reflecting the Company’s own assumptions in measuring the asset or liability at fair value.

The following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a

recurring basis (in thousands):

December 31, 2018	Level 1		Level 2		Level 3		Total
Assets
Investments:
Marketable securities	$	428	$	—	$	—	$	428
Total assets measured at fair value	$	428	$	—	$	—	$	428
Liabilities
Acquisition-related contingent consideration obligations	$	—	$	—	$	8,649	$	8,649
Total liabilities measured at fair value	$	—	$	—	$	8,649	$	8,649

June 30, 2018	Level 1		Level 2		Level 3		Total
Assets
Investments:
Marketable securities	$	1,459	$	—	$	—	$	1,459
Total assets measured at fair value	$	1,459	$	—	$	—	$	1,459
Liabilities
Acquisition-related contingent consideration obligations	$	—	$	—	$	12,749	$	12,749
Total liabilities measured at fair value	$	—	$	—	$	12,749	$	12,749

Level 1 investments:

The Company holds an investment in marketable equity securities which is classified as available-for-sale marketable securities at Level 1 as the investments have readily determinable fair value (see below, Level 3 investments). An unrealized holding gain on the investments of $0.5 million as of June 30, 2018 was reclassified from accumulated other comprehensive loss to accumulated deficit on July 1, 2018 upon the adoption of ASU 2016-01 (see Note 3)..

Level 2 assets and liabilities:

The Company includes U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, and state, municipal and provincial obligations for which quoted prices are available as Level 2. There were no transfers of assets or liabilities between Level 1 and Level 2 for the periods presented.

The fair value of the borrowings under the Credit Agreement is estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2. Due to the short duration until maturity of the Credit Agreement, the fair value approximates the face amount of the Company’s indebtedness of $185.3 million and $200.0 million as of December 31, 2018 and June 30, 2018, respectively.

Level 3 assets and liabilities:

Certain of the Company’s assets, including intangible assets and goodwill are measured at fair value on a non-recurring basis if impairment is indicated.

At June 30, 2018, the Company reflected a liability for contingent consideration related to a certain acquisition completed in fiscal 2018. The fair value measurement of the contingent consideration obligation is determined using Level 3 inputs. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense the Company records in any given period. Changes in the value of the contingent consideration obligations would be recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations.

The change in the acquisition-related contingent consideration obligations is as follows (in thousands):

	Six Months Ended
	December 31, 2018
Beginning balance	$	12,749
Payments		(4,222	)
Accretion on discount		122
Ending balance	$	8,649

There were no transfers of assets or liabilities between Level 2 and Level 3 during the three and six months ended December 31, 2018 or 2017. There were no impairments recorded for the three and six months ended December 31, 2018 or 2017.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

7.Goodwill and Intangible Assets

The following table reflects the changes in the carrying amount of goodwill (in thousands):

	December 31, 2018
Balance as of June 30, 2018	$	139,082
Changes due to additional property and equipment acquired (See Note 4)		(1,283	)
Balance at end of period	$	137,799

The following tables summarize the components of gross and net intangible asset balances (dollars in thousands):

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
December 31, 2018
Developed technology	2.8 years	$	117,000	$	67,888	$	49,112
Customer relationships	2.5 years		51,639		42,522		9,117
Maintenance contracts	0.1 years		17,000		17,000		-
Trade names	2.9 years		9,100		4,871		4,229
License agreements	5.6 years		2,232		1,313		919
Other intangibles	1.1 years		1,382		1,215		167
Total intangibles, net		$	198,353	$	134,809	$	63,544

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
June 30, 2018
Developed technology	3.3 years	$	117,000	$	58,299	$	58,701
Customer relationships	3.0 years		51,639		40,634		11,005
Maintenance contracts	0.3 years		17,000		15,866		1,134
Trade names	3.4 years		9,100		4,141		4,959
Backlogs	— years		1,800		1,800		—
License agreements	5.8 years		2,445		1,390		1,055
Other intangibles	1.6 years		1,382		1,144		238
Total intangibles, net		$	200,366	$	123,274	$	77,092

The amortization expense of intangibles for the periods presented is summarized below (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Amortization in “Cost of revenues: Product”	$	4,904	$	3,866	$	9,836	$	6,663
Amortization of intangibles in "Operations"		1,575		2,746		3,716		4,360
Total amortization	$	6,479	$	6,612	$	13,552	$	11,023

The amortization expense that is recognized in “Cost of revenues: Product” is comprised of amortization for developed technology, license agreements and other intangibles.

Debt

6 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

8.Debt

The Company’s debt is comprised of the following (in thousands):

	December 31, 2018			June 30, 2018
Current portion of long-term debt:
Term Loan	$	9,500		$	9,500
Less: unamortized debt issuance costs		(491	)		(493	)
Current portion of long-term debt	$	9,009		$	9,007

Long-term debt, less current portion:
Term Loan	$	175,750		$	180,500
Revolving Facility		—			10,000
Less: unamortized debt issuance costs		(1,504	)		(1,751	)
Total long-term debt, less current portion		174,246			188,749
Total debt	$	183,255		$	197,756

On May 1, 2018, the Company entered into a Credit Agreement (the “Credit Agreement”), by and among the Company, as borrower, BMO Harris Bank N.A., as an issuing lender and swingline lender, Bank of Montreal, as administrative and collateral agent, and the financial institutions or entities that are a party thereto as lenders. The Credit Agreement provides for i) a $40 million five-year revolving credit facility (the “New Revolving Facility”) ii) a $190 million five-year term loan (the “New Term Loan”) and iii) an uncommitted additional incremental loan facility in the principal amount of up to $100 million (“New Incremental Facility”). On May 1, 2018, the Company borrowed $200 million under the Credit Agreement to pay off existing debt and for general corporate purposes.

Borrowings under the Credit Agreement will bear interest, at the Company’s election, as of May 1, 2018, at a rate per annum equal to LIBOR plus 1.50% to 2.75%, or the adjusted base rate plus 0.50% to 1.75%, based on the Company’s consolidated leverage ratio. In addition, the Company is required to pay a commitment fee of between 0.25% and 0.40% quarterly (currently 0.35%) on the unused portion of the New Revolving Facility, also based on the Company’s consolidated leverage ratio. Principal installments are payable on the New Term Loan in varying percentages quarterly starting September 30, 2018 and to the extent not previously paid, all outstanding balances are to be paid at maturity. The Credit Agreement is secured by substantially all of the Company’s assets.

The Credit Agreement requires the Company to maintain certain minimum financial ratios at the end of each fiscal quarter. The Credit Agreement also includes covenants and restrictions that limit, among other things, the Company’s ability to incur additional indebtedness, create liens upon any of its property, merge, consolidate or sell all or substantially all of its assets. The Credit Agreement also includes customary events of default which may result in acceleration of the outstanding balance.

Financing costs incurred in connection with obtaining long-term financing are deferred and amortized over the term of the Credit Agreement. Amortization of deferred financing costs included in “Interest expense” in the accompanying condensed consolidated statements of operations totaled $0.2 million for each of the three months ended December 31, 2018 and 2017 and totaled $0.3 million for each of the six months ended December 31, 2018 and 2017, respectively.

The Company had $39.0 million of availability under the New Revolving Facility as of December 31, 2018. The Company had $1.0 million of outstanding letters of credit as of December 31, 2018.

Commitments and Contingencies

6 Months Ended

Dec. 31, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9.Commitments and Contingencies

Purchase Commitments

The Company currently has arrangements with contract manufacturers and suppliers for the manufacture of its products. Those arrangements allow the contract manufactures to procure long lead-time component inventory based upon a rolling production forecast provided by the Company. The Company is obligated to purchase long lead-time component inventory that its contract manufacturer procures in accordance with the Company’s forecast, unless the Company gives notice of order cancellation outside of applicable component lead-times. As of December 31, 2018, the Company had commitments to purchase $172.6 million of such inventory. As of December 31, 2018, the Company had commitments to purchase $111.6 million of software and new product support services.

Legal Proceedings

The Company may from time to time be party to litigation arising in the course of its business, including, without limitation, allegations relating to commercial transactions, business relationships or intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and managerial resources. Litigation in general, and intellectual property and securities litigation in particular, can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings are difficult to predict.

In accordance with applicable accounting guidance, the Company records accruals for certain of its outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. The Company evaluates, at least on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. When a loss contingency is not both probable and reasonably estimable, the Company does not record a loss accrual. However, if the loss (or an additional loss in excess of any prior accrual) is at least a reasonable possibility and material, then the Company would disclose an estimate of the possible loss or range of loss, if such estimate can be made, or disclose that an estimate cannot be made. The assessment whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, involves a series of complex judgments about future events. Even if a loss is reasonably possible, the Company may not be able to estimate a range of possible loss, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel or unsettled legal theories or a large number of parties. In such cases, there is considerable uncertainty regarding the ultimate resolution of such matters, including the amount of any possible loss, fine or penalty. Accordingly, for current proceedings, except as noted below, the Company is currently unable to estimate any reasonably possible loss or range of possible loss. However, an adverse resolution of one or more of such matters could have a material adverse effect on the Company's results of operations in a particular quarter or fiscal year.

Brazilian Tax Assessment Matter

On May 28, 2007, the Public Treasury Department of the State of Sao Paolo, Brazil (the “Tax Authority”) assessed the Company’s Brazilian subsidiary, Enterasys Networks do Brasil Ltda. (“Enterasys Brasil”), based on an alleged underpayment of taxes. The Tax Authority also charged interest and penalties with respect to the assessment (collectively, the “ICMS Tax Assessment”). The Tax Authority denied Enterasys Brasil the use of certain presumed tax credits granted by the State of Espirito Santo, Brazil under the terms of the FUNDAP program for the period from February 2003 to December 2004. The value of the disallowed presumed tax credits is BRL 3.4 million (USD $0.8 million), excluding interest and penalties. All currency conversions in this Legal Proceedings section are as of December 31, 2018.

Unable to resolve the matter at the administrative level, on October 1, 2014, Enterasys Brasil filed a lawsuit in the 11th Public Treasury Court of the Sao Paolo State Court of Justice (Judiciary District of Sao Paolo) to overturn or reduce the ICMS Tax Assessment. As part of this lawsuit, Enterasys Brasil requested a stay of execution, so that no tax foreclosure could be filed and no guarantee would be required until the court issued its final ruling. On or about October 6, 2014, the court granted a preliminary injunction staying any execution on the assessment, but requiring that Enterasys Brasil deposit the assessed amount with the court. Enterasys Brasil appealed this ruling and, on or about January 28, 2015, the appellate court ruled that no cash deposit (or guarantee) was required. In a decision dated August 28, 2017, and published on October 3, 2017, the court validated the assessment and penalty imposed by the Tax Authority but ruled that the Tax Authority was charging an unlawfully high interest rate on the tax assessment and penalty amounts and ordered the interest rate reduced to the maximum Federal rate. The August 28, 2017 decision, were it to become final, would require Enterasys Brasil to pay a total of BRL 19.6 million (USD $4.8 million), which includes penalties, court costs, attorneys’ fees, and accrued interest as of December 31, 2018. The Company believes the ICMS Tax Assessment against Enterasys Brasil is without merit and has appealed the lower court’s decision. The appellate court ruled that no cash deposit (or guarantee) is required during the pendency of the appeal.

Based on the currently available information, the Company believes the ultimate outcome of the ICMS Tax Assessment litigation will not have a material adverse effect on the Company's financial position or overall results of operations. However, due to the complexities and uncertainty surrounding the judicial process in Brazil and the nature of the claims asserted, there can be no assurance of a favorable outcome for Enterasys Brasil, which recorded an accrual of BRL 9.4 million (USD $2.3 million) as of the date the Company acquired Enterasys Networks.

The Company made a demand on April 11, 2014 for a defense from, and indemnification by, the former equity holder of Enterasys Networks, Inc. (“Seller”) in connection with the ICMS Tax Assessment. Seller agreed to assume the defense of the ICMS Tax Assessment on May 20, 2014. In addition, through the settlement of an indemnification-related lawsuit with the Seller on June 18, 2015, Seller agreed to continue to defend the Company with respect to the ICMS Tax Assessment and to indemnify the Company for losses related thereto subject to certain conditions. These conditions include the offsetting of foreign income tax benefits realized by the Company in connection with the acquisition of Enterasys. Based upon current projections of the foreign income tax benefits to be realized, and the potential liability in the event of an adverse final judgment in the ICMS Tax Assessment litigation, the Company does not presently anticipate that any amounts under the indemnification will be due from the Seller in connection with the ICMS Tax Assessment.

In re Extreme Networks, Inc. Securities Litigation

On October 23 and 29, 2015, punitive class action complaints alleging violations of securities laws were filed in the U.S. District Court for the Northern District of California against the Company and three of its former officers (Charles W. Berger, Kenneth B. Arola, and John T. Kurtzweil). Subsequently, the cases were consolidated (In re Extreme Networks, Inc. Securities Litigation, No. 3:15-CY-04883-BLF). Plaintiffs allege that defendants violated the securities laws by disseminating materially false and misleading statements and concealing material adverse facts regarding the Company’s financial condition, business operations and growth prospects. Plaintiffs seek unspecified damages on behalf of a purported class of investors who purchased the Company’s common stock from September 12, 2013 through April 9, 2015. On June 28, 2016, the Court appointed a lead plaintiff. On September 26, 2016, the lead plaintiff filed a consolidated complaint. On November 10, 2016, defendants filed a motion to dismiss, which the Court granted with leave to amend on April 27, 2017. On June 2, 2017, the lead plaintiff filed an amended complaint, which, on July 10, 2017, defendants again moved to dismiss. In a March 21, 2018 Order (the “March 2018 Order”), the Court granted in part and denied in part the defendants’ motion. The March 2018 Order narrowed the scope of the case, but allowed certain claims to proceed. The parties have agreed to settle the litigation. On November 30, 2018, plaintiffs filed an unopposed motion for preliminary approval of the settlement, and on December 6, 2018, Extreme filed a statement of non-opposition. The motion presently is set for hearing on April 25, 2019

On February 18, 2016, a shareholder derivative case was filed in the Superior Court of California, Santa Clara County (Shaffer v. Kispert et al., No. 16 CV 291726). The complaint names current and former officers and directors as defendants, and seeks recovery on behalf of the Company based on substantially the same allegations as the securities class action litigation described above. As a result of the March 2018 Order, the stipulated stay of the derivative litigation ended. The parties have agreed to settle the litigation. On November 26, 2018, plaintiff filed an unopposed motion for preliminary approval of the settlement, and on December 6, 2018, Extreme filed a statement of non-opposition. On January 18, 2019 the Court entered an order granting preliminary approval of the settlement and approving the notice to shareholders. The Court set the final approval hearing for May 3, 2019.

XR Communications, LLC d/b/a Vivato Technologies v. Extreme Networks, Inc. Patent Infringement Suit

On April 19, 2017, XR Communications, LLC (“XR”) (d/b/a Vivato Technologies) filed a patent infringement lawsuit against the Company in the Central District of California (XR Communications, LLC, dba Vivato Technologies v. Extreme Networks, Inc., No. 2:17-cv-2953-AG). The operative Second Amended Complaint asserts infringement of U.S. Patent Nos. 7,062,296, 7,729,728, and 6,611,231 based on the Company’s manufacture, use, sale, offer for sale, and/or importation into the United States of certain access points and routers supporting multi-user, multiple-input, multiple-output technology. XR seeks unspecified damages, on-going royalties, pre- and post-judgment interest, and attorneys’ fees (but no injunction). In orders dated April 10 and May 22, 2018, the Court stayed the case pending a resolution by the Patent Trial and Appeal Board (“PTAB”) of inter partes review (IPR) petitions filed by several defendants in other XR-related patent lawsuits challenging the validity of the asserted patents. The PTAB has now instituted IPR proceedings as to all three patents and all patent claims asserted in the litigation. Given the stay, the Court took off calendar all previously scheduled events (including a Markman hearing and potential trial date). During a status conference on October 22, 2018, the Court continued the stay and set a status conference for February 11, 2019. The Company believes the claims are without merit and intends to defend them vigorously.

Orckit IP, LLC v. Extreme Networks, Inc., Extreme Networks Ireland Ltd., and Extreme Networks GmbH

On February 1, 2018, Orckit IP, LLC (“Orckit”) filed a patent infringement lawsuit against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. The lawsuit alleges direct and indirect infringement of the German portion of European Patent EP 1 958 364 B1 based on the offer, distribution, use, possession and/or importation into Germany of certain network switches equipped with the ExtremeXOS operating system. Orckit is seeking injunctive relief, an accounting, and an unspecified declaration of liability for damages and costs of the lawsuit. On May 3, 2018, Extreme Networks GmbH filed a separate nullity action in the Federal Patent Court in Munich, seeking to invalidate the asserted patents, and on May 4, 2018, the defendants answered the complaint, denying any infringement and seeking a stay of the action pending the conclusion of the nullity action. The Company believes the claims are without merit and intends to defend them vigorously.

Indemnification Obligations

Subject to certain limitations, the Company may be obligated to indemnify its current and former directors, officers and employees. These obligations arise under the terms of its certificate of incorporation, its bylaws, applicable contracts, and applicable law. The obligation to indemnify, where applicable, generally means that the Company is required to pay or reimburse, and in certain circumstances the Company has paid or reimbursed, the individuals' reasonable legal expenses and possibly damages and other liabilities incurred in connection with certain legal matters. For example, the Company currently is paying or reimbursing legal expenses being incurred by certain current and former officers and directors in connection with the shareholder litigation described above. The Company also procures Directors and Officers insurance to help cover its defense and/or indemnification costs, although its ability to recover such costs through insurance is uncertain. While it is not possible to estimate the maximum potential amount that could be owed under these indemnification agreements due to the Company’s limited history with prior indemnification claims, indemnification (including defense) costs could, in the future, have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows. As of December 31, 2018, the Company has the outstanding indemnification claims described above.

Stockholders' Equity

6 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' Equity

10.Stockholders’ Equity

Stockholders’ Rights Agreement

On April 26, 2012, the Company entered into an Amended and Restated Rights Agreement between the Company and Computershare Shareholder Services LLC as the rights agent (the “Restated Rights Plan”). The Restated Rights Plan governs the terms of each right (“Right”) that has been issued with respect to each share of common stock of Extreme Networks. Each Right initially represents the right to purchase one one-thousandth of a share of the Company’s Preferred Stock. The Restated Rights Plan replaces in its entirety the Rights Agreement, dated as of April 27, 2001, as subsequently amended, between the Company and Mellon Investor Services LLC (the “Prior Rights Plan”).

The Company’s Board of Directors (“the Board”) adopted the Restated Rights Plan to preserve the value of deferred tax assets, including net operating loss carry forwards of the Company, with respect to its ability to fully use its tax benefits to offset future income which may be limited if the Company experiences an “ownership change” for purposes of Section 382 of the Internal Revenue Code of 1986 as a result of ordinary buying and selling of its common stock. Following its review of the terms of the plan, the Board decided it was necessary and in the best interests of the Company and its stockholders to enter into the Restated Rights Plan. The Restated Rights Plan incorporates the Prior Rights Plan and the amendments thereto into a single agreement and extended the term of the Prior Rights Plan to April 30, 2013. Each year since 2013 the Board and stockholders have approved an amendment providing for a one-year extension of the term of the Restated Rights Plan. The Board unanimously approved an amendment to the Restated Rights Plan on May 9, 2018 to extend the Restated Rights Plan through May 31, 2019 which was ratified by the stockholders of the Company at the Company’s annual shareholders meeting held on November 8, 2018.

Employee Stock Purchase Plan

Our Board of Directors unanimously approved an amendment to the 2014 Employee Stock Purchase Plan to increase the maximum number of shares that will be available for sale thereunder by 7,500,000 shares which was ratified by the stockholders of the Company at the annual meeting of stockholders held on November 8, 2018.

Common Stock Repurchases

On November 2, 2018, the Company announced that the Board had authorized management to repurchase up to $60.0 million of the Company’s common stock for two years from the date of authorization. Purchases may be made from time to time in the open market or in privately negotiated transactions. A maximum of $35.0 million of the Company’s common stock may be repurchased in any calendar year.

The following table summarizes the Company's shares repurchases under its stock repurchase program (in thousands, except per share amounts):

	Three Months Ended		Six Months Ended
	December 31, 2018		December 31, 2018
Total number of shares repurchased		2,366		2,366
Average price paid per share	$	6.34	$	6.34
Dollar value of shares repurchased	$	15,000	$	15,000
Dollar value of shares that may yet be repurchased under program	$	45,000	$	45,000

Employee Benefit Plans

6 Months Ended

Dec. 31, 2018

Share Based Compensation [Abstract]

Employee Benefit Plans

11.Employee Benefit Plans

Shares reserved for issuance

The Company had reserved for issuance for the periods noted (in thousands):

	December 31, 2018		June 30, 2018
2013 Equity Incentive Plan shares available for grant		7,558		9,957
Employee stock options and awards outstanding		11,577		12,060
2014 Employee Stock Purchase Plan		4,084		5,365
Total shares reserved for issuance		23,219		27,382

Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Cost of product revenue	$	217	$	134	$	395	$	226
Cost of service revenue		677		296		1,022		429
Research and development		2,797		1,829		5,139		2,880
Sales and marketing		2,983		2,699		5,342		4,342
General and administrative		2,026		2,067		3,627		3,951
Total share-based compensation expense	$	8,700	$	7,025	$	15,525	$	11,828

During the three and six months ended December 31, 2018 or 2017, the Company did not capitalize any share-based compensation expense in inventory, as the amounts were immaterial.

Stock Awards

Stock awards may be granted under the 2013 Equity Incentive Plan (the “2013 Plan”) on terms approved by the Compensation Committee of the Board. Stock awards generally provide for the issuance of restricted stock units (“RSUs”) including performance or market-based RSUs which vest over a fixed period of time or based upon the satisfaction of certain performance criteria. The Company uses the straight-line method for expense attribution, and beginning with fiscal 2017, the Company does not estimate forfeitures, but accounts for them as incurred.

The following table summarizes stock award activity for the six months ended December 31, 2018 (in thousands, except grant date fair value):

	Number of Shares			Weighted- Average Grant Date Fair Value		Aggregate Fair Market Value
Non-vested stock awards outstanding at June 30, 2018		7,764		$	8.60	$	61,804
Granted		4,042			6.40
Released		(2,271	)		7.75
Cancelled		(738	)		8.66
Non-vested stock awards outstanding at December 31, 2018		8,797		$	7.80	$	53,661

The following table summarizes stock option activity for the six months ended December 31, 2018 (in thousands, except per share and contractual term):

	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Options outstanding at June 30, 2018		2,193		$	3.88		2.90	$	8,996
Granted		852			6.40
Exercised		(178	)		3.56
Cancelled		(87	)		6.01
Options outstanding at December 31, 2018		2,780		$	4.60		3.70	$	4,414
Vested and expected to vest at December 31, 2018		2,780		$	4.60		3.70	$	4,414
Exercisable at December 31, 2018		1,962		$	3.94		2.53	$	4,234

The fair value of each stock option grant under the 2013 Plan and 2005 Equity Incentive Plan is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The Company uses the Monte-Carlo simulation model to determine the fair value and the derived service period of stock awards with market conditions, on the date of the grant. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk-free rate is based upon the estimated life of the option and the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock.

The fair value of each RSU grant with performance-based vesting criteria (“PSUs”) under the 2013 Plan is estimated on the date of grant using the Monte-Carlo simulation model to determine the fair value and the derived service period of stock awards with market conditions, on the date of the grant.

During the second quarter of fiscal 2019, the Company approved the grant of 705,009 stock awards, including 357,142 stock awards to its Chief Financial Officer, and 347,867 stock awards to its other employees. During the first quarter of fiscal 2019, the Company approved the grant of 1,269,800 stock awards to its vice president level employees or above (“VPs”), which includes 278,000 stock awards to its Executive Officers. The Company also approved 2,067,074 stock awards to its other employees. Fifty percent (50%) of the stock awards granted to the VPs and the chief executive officer, were in the form of PSUs, with grant date fair values of $6.40, and fifty percent (50%) of the stock awards granted were in the form of service-based RSUs. The RSUs vest from the original grant date as to one-third (1/3) on the one-year anniversary and one-twelfth (1/12) each quarter thereafter, subject to continued service to the Company. No PSUs were granted during the second quarter of fiscal 2018.

For the PSUs referenced in the preceding paragraph, they will be considered earned once the Company’s combined earnings per share equals or exceeds $0.20 over two consecutive quarters (the “FY19 Performance Threshold”). Upon satisfying the FY19 Performance Threshold, the PSUs shall vest with respect to the same number of RSUs that have vested which were granted on the same date and thereafter, shall vest on the same schedule as the RSUs, subject to continued service to the Company. If the FY19 Performance Threshold is not met by the third anniversary of the grant date the award is canceled. In addition, the FY19 Performance Threshold shall be deemed satisfied upon the closing of a Change in Control (within the meaning of the Company’s 2013 Equity Incentive Plan) in the event the per share consideration received by the Company’s stockholders equals or exceeds $10.00 per share.

During the six months ended December 31, 2018, the Performance Thresholds were not achieved for fiscal 2018 or fiscal 2019.

During the first quarter of fiscal 2019, the Company granted 851,700 Performance Stock Options (“PSOs”) to certain officers and executive vice presidents that will vest if the Company’s stock price achieves a price hurdle of $10.00 during the three-year performance period from August 29, 2018 through August 31, 2021. The price hurdle will be deemed to have been achieved if, at any time over the performance period, the Company’s stock maintains a price of $10.00 for 30 consecutive days. If the price hurdle is achieved, the PSOs will vest as follows:

If the price hurdle is met before or on August 31, 2019, one-third of the PSOs will vest on August 31, 2019 and the remainder will vest quarterly over two years.

If the price hurdle is met after August 31, 2019, a number of the PSOs will vest (ratably calculated based upon the time elapsed between August 31, 2018 and the date the hurdle is met) and the remainder will vest quarterly through August 31, 2021. The grant date fair value was $2.62.

No PSUs were granted during the second quarter of fiscal 2019.

2014 Employee Stock Purchase Plan

The fair value of each share purchase option under the Company’s 2014 Employee Stock Purchase Plan (“ESPP”) is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The expected term of the ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock.

There were no shares granted under the ESPP during the three months ended December 31, 2018 and 2017. There were 1,280,708 and 1,267,930 shares issued under the ESPP during the six months ended December 31, 2018 and 2017, respectively. The following assumptions were used to calculate the fair value of shares granted under the ESPP during the following periods:

	Employee Stock Purchase Plan
	Six Months Ended
	December 31, 2018			December 31, 2017
Expected life	0.5 years			0.5 years
Risk-free interest rate		2.20	%		1.15	%
Volatility		63	%		42	%
Dividend yield		—	%		—	%

The weighted-average fair value of shares granted under the ESPP during the six months ended December 31, 2018 and 2017 was $2.73 and $2.41, respectively.

Information about Segments of Geographic Areas

6 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Information about Segments of Geographic Areas

12.	Information about Segments of Geographic Areas

The Company operates in one segment, the development and marketing of network infrastructure equipment. The Company conducts business globally and is managed geographically. Revenue is attributed to a geographical area based on the location of its customers. The Company operates in three geographical areas: Americas, which includes the United States, Canada, Mexico, Central America and South America; EMEA, which includes Europe, Russia, Middle East and Africa; and APAC which includes Asia Pacific, South Asia, India, Australia and Japan. The Company’s chief operating decision maker, who is its CEO, reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.

See Note 3 Net Revenues for the Company’s revenues by geographic regions and channel based on the customer’s ship-to location.

The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands):

Long-lived Assets	December 31, 2018		June 30, 2018
Americas	$	142,580	$	178,251
EMEA		36,384		15,106
APAC		12,249		9,896
Total long-lived assets	$	191,213	$	203,253

Foreign Exchange Forward Contracts

6 Months Ended

Dec. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Foreign Exchange Forward Contracts

13.	Foreign Exchange Forward Contracts

The Company uses derivative financial instruments to manage exposures to foreign currency. The Company’s objective for holding derivatives is to use the most effective methods to minimize the impact of these exposures. The Company does not enter into derivatives for speculative or trading purposes. The fair value of the Company’s derivatives in a gain position are recorded in “Prepaid expenses and other current assets” and derivatives in a loss position are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets. Changes in the fair value of derivatives are recorded in “Other income (expense), net” in the accompanying condensed consolidated statements of operations. The Company enters into foreign exchange forward contracts to mitigate the effect of gains and losses generated by foreign currency transactions related to certain operating expenses and re-measurement of certain assets and liabilities denominated in foreign currencies. These derivatives do not qualify as hedges.

As of December 31, 2018, the Company did not have any forward foreign currency contracts. As of December 31, 2017 forward foreign currency contracts had a notional principal amount of $1.5 million and an immaterial unrealized gain. These contracts typically have maturities of less than 90 days. Changes in the fair value of these foreign exchange forward contracts are offset largely by re-measurement of the underlying assets and liabilities.

Foreign currency transactions losses from operations was less than $0.1 million and $0.6 million for the three months ended December 31, 2018 and 2017, respectively. Foreign currency transactions gains and losses from operations was a gain of $0.2 million and a loss of $1.1 million for the six months ended December 31, 2018 and 2017, respectively.

Restructuring Charges, Net of Reversals

6 Months Ended

Dec. 31, 2018

Restructuring And Related Activities [Abstract]

Restructuring Charges, Net of Reversals

14.Restructuring Charges, net of reversals

Restructuring liabilities consisted of obligations pertaining to the estimated future obligations for non-cancelable lease payments, as well as severance and benefits obligations. The restructuring liabilities are recorded in “Other accrued liabilities” and “Other long-term liabilities” in the accompanying condensed consolidated balance sheets.

The Company recorded $0.5 million and $1.3 million of restructuring charges, net of reversals during the three and six months ended December 31, 2018, respectively, associated with a reduction-in-force in the fourth quarter of fiscal 2018 and additional excess facilities obligations.

Cash payments of $4.7 million were paid during the first six months of fiscal 2019. The balance of the severance and benefits obligations are expected to be paid by the end of fiscal 2019. The excess facilities obligations will continue through fiscal year 2023.

Total restructuring and related liabilities consist of (in thousands):

	Excess Facilities			Severance Benefits			Total
Balance as of June 30, 2018	$	1,797		$	4,658		$	6,455
Period charges		104			1,524			1,628
Period reversals		—			(346	)		(346	)
Period payments		(101	)		(4,569	)		(4,670	)
Balance as of December 31, 2018	$	1,800		$	1,267		$	3,067
Less: current portion included in Other accrued liabilities								1,830
Restructuring accrual included in Other long-term liabilities							$	1,237

Income Taxes

6 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

15.Income Taxes

For the three months ended December 31, 2018 and 2017, the Company recorded an income tax benefit of $5.3 million and $1.6 million, respectively. For the six months ended December 31, 2018 and 2017, the Company recorded a tax benefit of $3.9 million and a tax provision of $0.1 million, respectively.

The income tax provisions for the three months ended December 31, 2018 and 2017, consisted of (1) taxes on the income of the Company’s foreign subsidiaries, (2) tax expense associated with the establishment of a U.S. deferred tax liability for amortizable goodwill resulting from the acquisition of Enterasys Networks, Inc., the WLAN Business, the Campus Fabric Business the Data Center Business, (3) foreign withholding taxes and (4) state taxes in jurisdictions where the Company has no available state Net Operating Losses (“NOLs”).

The tax provision for the three months ended December 31, 2018, is offset by a tax benefit of $2.6 million resulting from the release of a valuation allowance for the Company’s Australian NOLs given consistent and sufficient profitability following the recent acquisitions as well as a tax benefit of $4.7 million for the release of valuation allowance given changes introduced by recently enacted U.S. tax legislation as discussed below. This legislation changed the U.S. NOL rules to afford an indefinite carryforward period for NOLs generated in tax years beginning after December 31, 2017. In evaluating the realizability of Deferred Tax Assets (“DTAs”), historically the Company was unable to consider the Deferred Tax Liability (“DTL”) related to amortizable goodwill as a source of future income for reversing deductible differences with fixed lives. The change to the NOL rules creates an indefinite lived DTA and as such the indefinite lived DTL related to goodwill can now be viewed as a source of income for the newly created indefinite lived DTA. These two indefinite lived items can now be netted in determining the amount of valuation allowance needed.

The tax provision for the three months ended December 31, 2017, is offset by a tax benefit of $2.5 million resulting from the reduction of the U.S. Federal tax rate from 35% to 21% applied to the Company’s deferred tax liability related to amortizable goodwill as required by the U.S. tax legislation discussed below. The income tax provisions for both fiscal years were calculated based on the actual results of operations for the three months ended December 31, 2018 and 2017, respectively and therefore may not reflect the annual effective tax rate.

The income tax benefit and provision for the six months ended December 31. 2018 and 2017, respectively consisted primarily of taxes on the income of the Company’s foreign subsidiaries as well as tax expense associated with the establishment of a U.S. deferred tax liability for amortizable goodwill resulting from the acquisition of Enterasys Networks, Inc., the WLAN Business, the Campus Fabric Business and the Data Center Business. The income tax provision for the six months ended December 31, 2018 was offset by the two valuation allowance releases referenced above. The income tax provision for the six months ended December 31, 2017 is offset by a tax benefit of $2.5 million resulting from U.S. tax legislation which reduced the corporate federal tax rate from 35% to 21%. As a result of this change, the Company recognized a tax benefit associated with the revaluation of the Company’s deferred tax liability related to amortizable goodwill to reflect the lower statutory tax rate.

On December 22, 2017, the President of the United States signed and enacted into law H.R. 1, the Tax Cuts and Jobs Act (“TCJA”), which, except for certain provisions, is effective for the Company’s fiscal year ended 2019. As a fiscal year taxpayer, the Company was not subject to the majority of the tax law provisions until the first quarter of fiscal year 2019; however, there were certain significant items of impact that were recognized in fiscal year 2018, the year the TCJA was enacted.

The TCJA’s primary change is a reduction in the U.S. Federal statutory corporate tax rate from 35% to 21%. As a result, the Company recognized a tax benefit in the amount of $2.5 million in the second quarter of fiscal 2018 due to the revaluation of the Company's deferred tax liability related to amortizable goodwill to reflect the lower statutory rate. Because the U.S. deferred tax assets are offset by a full valuation allowance, the reduction in deferred tax assets for the lower rate was fully offset by a corresponding reduction in valuation allowance resulting in no additional tax provision.

The TCJA moves the U.S. from a global taxation regime to a modified territorial regime. Under the territorial regime, the company’s foreign earnings will generally not be subject to tax in the US. As part of transitioning to this new regime, U.S. companies were required to pay tax on historical earnings generated offshore that have not been repatriated to the U.S. (“Transition Tax”). The Company has determined there was no incremental tax provision related to the Transition Tax given the Company’s ability to utilize existing tax attributes to offset the impact of the deemed repatriation.

The TCJA makes broad and complex changes to the U.S. tax code, and in certain instances, lacks clarity and is subject to interpretation until additional U.S. Treasury guidance is issued. Certain guidance has been released during the second quarter of the Company’s Fiscal year ended June 30, 2019 and has been incorporated into the Company’s related computations. On December 22, 2017, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows registrants to record provisional amounts during a one year “measurement period” similar to that used when accounting for business combinations. However, the measurement period was deemed to have ended earlier when the registrant has obtained, prepared and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed. SAB 118 summarizes a three-step process to be applied at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where accounting is not complete, but that a reasonable estimate has been determined; and (3) a reasonable estimate cannot yet be made and therefore taxes are reflected in accordance with law prior to the enactment of the TCJA. The measurement period ended in the Company’s fiscal quarter ended December 31, 2018 and the Company has finalized all related adjustments.

Amounts recorded pursuant to Tax Reform and the provisions of SAB 118 relate to the reduction in the U.S. federal tax rate to 21 percent, which resulted in the Company reporting an income tax benefit of $2.5 million in the fiscal year ended June 30, 2018 to remeasure deferred tax liabilities associated with indefinitely lived intangible assets that will reverse at the new 21% rate. Absent this deferred tax liability, the Company has historically been in a net deferred tax asset position that is offset by a full valuation allowance. The Transition Tax introduced by TCJA has been calculated to be zero for the Company given existing tax attributes that were utilized to offset the calculated liability. As discussed below, during the quarter ended December 31, 2018 the Company completed its evaluation of whether to treat global intangible low-taxed income (“GILTI”) as a component of tax expense in the period in which it is incurred or as a component of deferred income taxes. In conjunction with this determination and the completion of schedule the reversal of deferred tax assets and liabilities the Company has reduced the valuation allowance level by $4.7 million to reflect the introduction of an indefinite carryforward period for NOLs expected to be generated in tax years beginning after December 31, 2017 once deferred tax assets reverse. With respect to provisions of the TCJA effective for the Company’s fiscal year ended 2019, the Company anticipates several new provisions will impact tax provisions in future periods including limitations on the deductibility of interest expense and certain executive compensation, a minimum tax on certain foreign earnings (i.e., GILTI). The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. Based on initial assessment and interpretation of the new provision, the Company expects that it will be subject to incremental U.S. tax on GILTI income beginning in fiscal 2019. The Company has elected to account for GILTI tax as a component of tax expense in the period in which it is incurred. The Base Erosion and Anti-Abuse Tax (“BEAT”) provisions in the Tax Reform Act eliminate the deduction of certain base-erosion payments made to related foreign corporations and impose a minimum tax if greater than regular tax. There is a reasonable amount of uncertainty surrounding the interpretation of this new provision, however, based on initial assessment and a reasonable interpretation of the new provision, the Company expects that it will not be subject to the incremental U.S. tax on BEAT income beginning in fiscal 2019, due to a realignment of the Company’s international structure.

In the three months ended September 30, 2018, the Company adopted ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset at the time the transfer occurs. Historically, GAAP has prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold outside the consolidated group. Effective as of July 1, 2018, the Company adopted ASU 2016-16 on a modified retrospective basis which requires an adjustment of the cumulative-effect of the adoption to retained earnings. However, the adjustment was immaterial to the financial statements and no such adjustment was necessary. As a result of adoption, the income tax consequences of future intra-entity transfer of assets will be recognized in earnings in each period rather than be deferred until the assets leave the consolidated group. In the three months ended September 30, 2018, the Company recognized a deferred tax asset relating to a transfer of certain assets from the US parent company to its wholly-owned Irish subsidiary of $3.7 million, which was fully offset by the establishment of a valuation allowance resulting in no impact to Company’s statement of operations.

The Company has provided a full valuation allowance against all its U.S. federal and state deferred tax assets as well as a portion of the deferred tax assets in Ireland. A valuation allowance is determined by assessing both negative and positive evidence to determine whether it is “more likely than not” that the deferred tax assets are recoverable; such assessment is required on a jurisdiction by jurisdiction basis. The Company's inconsistent earnings in recent periods, including a cumulative loss over the last three years, coupled with its difficulty in forecasting future revenue trends as well as the cyclical nature of its business represent sufficient negative evidence to require a full valuation allowance against its U.S. federal and state net deferred tax assets as well as the above mentioned foreign jurisdictions. This valuation allowance will be evaluated periodically and can be reversed partially or in whole if business results and the economic environment have sufficiently improved to support realization of some or all of the Company's deferred tax assets.

The acquisition of Enterasys in October 2013 included a U.S. parent company as well as its wholly-owned foreign subsidiaries. The Company elected to treat this stock acquisition as an asset purchase by filing the required election forms under IRC Sec 338(h)(10). In addition, the Company completed asset purchases of the WLAN Business, the Campus Fabric Business and the Data Center Business in October 2016, July 2017 and October 2017, respectively. The Company has estimated the value of the intangible assets from these transactions and is amortizing the amounts over 15 years for tax purposes. During the three and six months ended December 31, 2018, the Company deducted $1.8 million and $4.1 million of tax amortization expense respectively, for each period related to capitalized goodwill resulting from these acquisitions. As of December 31, 2018, the Company recorded a deferred tax liability of $6.4 million related to this goodwill amortization which now can be partially considered a future source of taxable income in evaluating the need for a valuation allowance against its deferred tax assets.

The Company had $17.5 million of unrecognized tax benefits as of December 31, 2018. The future impact of the unrecognized tax benefit of $17.5 million, if recognized, would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance. The Company does not anticipate any events to occur during the next twelve months that would reduce the unrealized tax benefit as currently stated in the Company’s balance sheet.

The Company’s policy is to accrue interest and penalties related to the underpayment of income taxes as a component of tax expense in the accompanying condensed consolidated statements of operations.

In general, the Company’s U.S. federal income tax returns are subject to examination by tax authorities for fiscal years 2001 forward due to net operating losses and the Company's state income tax returns are subject to examination for fiscal years 2000 forward due to net operating losses. The Company recently settled an examination by the state of North Carolina for fiscal years ended 2014, 2015 and 2016. The settlement resulted in an immaterial payment to the state to close all three years.

Net Loss Per Share

6 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Net Loss Per Share

16.Net Loss Per Share

Basic earnings per share is calculated by dividing net earnings by the weighted average number of common shares outstanding during the period. Dilutive earnings per share is calculated by dividing net earnings by the weighted average number of common shares used in the basic earnings per share calculation plus the dilutive effect of shares subject to repurchase, options, warrants and unvested restricted stock units.

The following table presents the calculation of net loss per share of basic and diluted (in thousands, except per share data):

	Three Months Ended					Six Months Ended
	December 31, 2018		December 31, 2017			December 31, 2018			December 31, 2017
Net loss	$	7,199	$	(31,923	)	$	(1,866	)	$	(27,547	)

Weighted-average shares used in per share calculation - basic		117,544		113,621			117,456			112,931
Effect of potentially dilutive shares:
Options to purchase common stock		657		—			—			—
Restricted stock units		1,129		—			—			—
Employee Stock Purchase Plan shares		214		—			—			—
Weighted-average shares used in per share calculation - diluted		119,544		113,621			117,456			112,931

Net income (loss) per share - basic	$	0.06	$	(0.28	)	$	(0.02	)	$	(0.24	)
Net income (loss) per share - diluted	$	0.06	$	(0.28	)	$	(0.02	)	$	(0.24	)

The following securities were excluded from the computation of net loss per diluted share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Options to purchase common stock		781		2,622		543		2,781
Restricted stock units		6,341		7,950		1,369		7,162
Employee Stock Purchase Plan shares		1,286		834		1,286		906
Total shares excluded		8,408		11,406		3,198		10,849

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Fiscal Year

Principles of Consolidation

The consolidated financial statements include the accounts of Extreme and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

Accounting Estimates

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Revenue Recognition

Revenue by Category

The following table sets forth the Company’s revenue disaggregated by sales channel and geographic region based on the customer’s ship-to locations (in thousands):

	Three Months Ended
	December 31, 2018						December 31, 2017
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	44,141	$	55,326	$	99,467	$	56,269	$	54,559	$	110,828
Other		8,269		5,380		13,649		1,155		5,698		6,853
Total Americas		52,410		60,706		113,116		57,424		60,257		117,681
EMEA		79,876		32,773		112,649		55,956		33,624		89,580
APAC		4,767		22,148		26,915		5,131		18,731		23,862
Total net revenues	$	137,053	$	115,627	$	252,680	$	118,511	$	112,612	$	231,123

	Six Months Ended
	December 31, 2018						December 31, 2017
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	100,883	$	115,262	$	216,145	$	98,661	$	105,549	$	204,210
Other		12,762		10,904		23,666		15,491		12,093		27,584
Total Americas		113,645		126,166		239,811		114,152		117,642		231,794
EMEA		141,207		63,611		204,818		107,188		61,527		168,715
APAC:		7,116		40,821		47,937		8,395		33,934		42,329
Total net revenues	$	261,968	$	230,598	$	492,566	$	229,735	$	213,103	$	442,838

Cash and Marketable Securities

The following is a summary of cash and marketable securities (in thousands):

	December 31, 2018		June 30, 2018
Cash	$	140,643	$	121,139
Marketable securities (consisting of available-for-sale securities)		428		1,459
Total cash and marketable securities	$	141,071	$	122,598

Inventories

Inventories consist of the following (in thousands):

	December 31, 2018		June 30, 2018
Finished goods	$	44,179	$	49,393
Raw materials		14,118		14,474
Total Inventories	$	58,297	$	63,867

Property and Equipment, Net

Property and equipment consist of the following (in thousands):

	December 31, 2018			June 30, 2018
Computers and equipment	$	70,121		$	60,677
Purchased software		22,968			21,389
Office equipment, furniture and fixtures		11,564			14,980
Leasehold improvements		51,167			50,070
Total property and equipment		155,820			147,116
Less: accumulated depreciation and amortization		(81,321	)		(68,597	)
Property and equipment, net	$	74,499		$	78,519

Deferred Revenue

Guarantees and Product Warranties

The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2018 and 2017 (in thousands):

	Three Months Ended						Six Months Ended
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Balance beginning of period	$	12,601		$	13,499		$	12,807		$	10,584
Warranties assumed due to acquisitions		—			526			—			3,682
New warranties issued		4,145			1,657			7,867			3,929
Warranty expenditures		(3,938	)		(2,672	)		(7,866	)		(5,185	)
Balance end of period	$	12,808		$	13,010		$	12,808		$	13,010

Other Long-term Liabilities

Other long-term liabilities

The following is a summary of long-term liabilities (in thousands):

	December 31, 2018		June 30, 2018
Acquisition related deferred payments, less current portion	$	11,442	$	13,251
Contingent consideration obligations, less current portion		4,095		4,898
Other contractual obligations, less current portion		29,647		31,200
Other		15,527		9,751
Total other long-term liabilities	$	60,711	$	59,100

Concentrations

Earnings Per Share

Dilutive earnings per share is calculated by dividing net earnings by the weighted average number of common shares used in the basic earnings per share calculation plus the dilutive effect of shares subject to repurchase, options, warrants and unvested restricted stock units.

Revenues (Tables)

6 Months Ended

Dec. 31, 2018

Revenue From Contract With Customer [Abstract]

Schedule of Revenue Disaggregated by Sales Channel and Geographic Region

The following table sets forth the Company’s revenue disaggregated by sales channel and geographic region based on the customer’s ship-to locations (in thousands):

	Three Months Ended
	December 31, 2018						December 31, 2017
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	44,141	$	55,326	$	99,467	$	56,269	$	54,559	$	110,828
Other		8,269		5,380		13,649		1,155		5,698		6,853
Total Americas		52,410		60,706		113,116		57,424		60,257		117,681
EMEA		79,876		32,773		112,649		55,956		33,624		89,580
APAC		4,767		22,148		26,915		5,131		18,731		23,862
Total net revenues	$	137,053	$	115,627	$	252,680	$	118,511	$	112,612	$	231,123

	Six Months Ended
	December 31, 2018						December 31, 2017
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	100,883	$	115,262	$	216,145	$	98,661	$	105,549	$	204,210
Other		12,762		10,904		23,666		15,491		12,093		27,584
Total Americas		113,645		126,166		239,811		114,152		117,642		231,794
EMEA		141,207		63,611		204,818		107,188		61,527		168,715
APAC:		7,116		40,821		47,937		8,395		33,934		42,329
Total net revenues	$	261,968	$	230,598	$	492,566	$	229,735	$	213,103	$	442,838

Schedule of Major Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance

The following table sets forth major customers accounting for 10% or more of the Company’s net revenues:

	Three Months Ended		Six Months Ended
	December 31, 2018	December 31, 2017	December 31, 2018	December 31, 2017
Tech Data Corporation	22%	12%	19%	12%
Westcon Group Inc.	15%	14%	14%	15%
Jenne Corporation	12%	*	12%	10%

The following table sets forth major customers accounting for 10% or more of the Company’s accounts receivable balance:

	December 31, 2018	June 30, 2018
Westcon Group Inc.	23%	*
Tech Data Corporation	22%	17%
Jenne Corporation	*	13%

* Less than 10% of accounts receivable

Business Combinations (Tables)

6 Months Ended

Dec. 31, 2018

Summary of Unaudited Pro Forma Financial Information

The following table summarizes the unaudited pro forma financial information (in thousands, except per share amounts):

	Three Months Ended			Six Months Ended
		December 31, 2017		December 31, 2017
Net revenues		$	252,532	$	537,040
Net income (loss)		$	1,152	$	(7,622	)
Net income (loss) per share - basic		$	0.01	$	(0.07	)
Net income (loss) per share - diluted		$	0.01	$	(0.07	)
Shares used in per share calculation - basic			113,621		112,931
Shares used in per share calculation - diluted			119,656		112,931

Data Center Business

Summary of Final Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed

The following table below summarizes the final allocation of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

		Final Allocation
Accounts receivables		$	33,488
Inventories			19,934
Prepaid expenses and other current assets			988
Property and equipment	(a)		20,220
Other assets			4,734
Accounts payable and accrued expenses			(16,494	)
Deferred revenue			(33,025	)
Net tangible assets acquired			29,845
Identifiable intangible assets			32,800
Goodwill	(a)		21,692
Total intangible assets acquired			54,492
Total net assets acquired		$	84,337

(a)

Includes an adjustment after the measurement period to record $1.3 million of additional property and equipment acquired at an international location.

Campus Fabric Business

Summary of Final Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed

The following table below summarizes the final allocation of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

	Final Allocation
Accounts receivables	$	19,527
Inventories		14,165
Prepaid expenses and other current assets		240
Property and equipment		5,406
Other assets		7,009
Accounts payable and accrued expenses		(31,670	)
Deferred revenue		(8,994	)
Other long-term liabilities		(5,849	)
Net tangible assets acquired		(166	)
Identifiable intangible assets		41,300
In-process research and development		2,400
Goodwill		35,892
Total intangible assets acquired		79,592
Total net assets acquired	$	79,426

Balance Sheet Accounts (Tables)

6 Months Ended

Dec. 31, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Cash and Marketable Securities

The following is a summary of cash and marketable securities (in thousands):

	December 31, 2018		June 30, 2018
Cash	$	140,643	$	121,139
Marketable securities (consisting of available-for-sale securities)		428		1,459
Total cash and marketable securities	$	141,071	$	122,598

Components of Inventories

Inventories consist of the following (in thousands):

	December 31, 2018		June 30, 2018
Finished goods	$	44,179	$	49,393
Raw materials		14,118		14,474
Total Inventories	$	58,297	$	63,867

Components of Property and Equipment

Property and equipment consist of the following (in thousands):

	December 31, 2018			June 30, 2018
Computers and equipment	$	70,121		$	60,677
Purchased software		22,968			21,389
Office equipment, furniture and fixtures		11,564			14,980
Leasehold improvements		51,167			50,070
Total property and equipment		155,820			147,116
Less: accumulated depreciation and amortization		(81,321	)		(68,597	)
Property and equipment, net	$	74,499		$	78,519

Summary of Product Warranty Liability Activity

The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2018 and 2017 (in thousands):

	Three Months Ended						Six Months Ended
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Balance beginning of period	$	12,601		$	13,499		$	12,807		$	10,584
Warranties assumed due to acquisitions		—			526			—			3,682
New warranties issued		4,145			1,657			7,867			3,929
Warranty expenditures		(3,938	)		(2,672	)		(7,866	)		(5,185	)
Balance end of period	$	12,808		$	13,010		$	12,808		$	13,010

Summary of Long-term Liabilities

The following is a summary of long-term liabilities (in thousands):

	December 31, 2018		June 30, 2018
Acquisition related deferred payments, less current portion	$	11,442	$	13,251
Contingent consideration obligations, less current portion		4,095		4,898
Other contractual obligations, less current portion		29,647		31,200
Other		15,527		9,751
Total other long-term liabilities	$	60,711	$	59,100

Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value for Financial Assets and Liabilities Measured on Recurring Basis

The following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a

recurring basis (in thousands):

December 31, 2018	Level 1		Level 2		Level 3		Total
Assets
Investments:
Marketable securities	$	428	$	—	$	—	$	428
Total assets measured at fair value	$	428	$	—	$	—	$	428
Liabilities
Acquisition-related contingent consideration obligations	$	—	$	—	$	8,649	$	8,649
Total liabilities measured at fair value	$	—	$	—	$	8,649	$	8,649

June 30, 2018	Level 1		Level 2		Level 3		Total
Assets
Investments:
Marketable securities	$	1,459	$	—	$	—	$	1,459
Total assets measured at fair value	$	1,459	$	—	$	—	$	1,459
Liabilities
Acquisition-related contingent consideration obligations	$	—	$	—	$	12,749	$	12,749
Total liabilities measured at fair value	$	—	$	—	$	12,749	$	12,749

Schedule of Change in Acquisition-related Contingent Consideration Obligations

The change in the acquisition-related contingent consideration obligations is as follows (in thousands):

	Six Months Ended
	December 31, 2018
Beginning balance	$	12,749
Payments		(4,222	)
Accretion on discount		122
Ending balance	$	8,649

Goodwill and Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Goodwill

The following table reflects the changes in the carrying amount of goodwill (in thousands):

	December 31, 2018
Balance as of June 30, 2018	$	139,082
Changes due to additional property and equipment acquired (See Note 4)		(1,283	)
Balance at end of period	$	137,799

Components of Gross and Net Intangible Asset Balances

The following tables summarize the components of gross and net intangible asset balances (dollars in thousands):

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
December 31, 2018
Developed technology	2.8 years	$	117,000	$	67,888	$	49,112
Customer relationships	2.5 years		51,639		42,522		9,117
Maintenance contracts	0.1 years		17,000		17,000		-
Trade names	2.9 years		9,100		4,871		4,229
License agreements	5.6 years		2,232		1,313		919
Other intangibles	1.1 years		1,382		1,215		167
Total intangibles, net		$	198,353	$	134,809	$	63,544

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
June 30, 2018
Developed technology	3.3 years	$	117,000	$	58,299	$	58,701
Customer relationships	3.0 years		51,639		40,634		11,005
Maintenance contracts	0.3 years		17,000		15,866		1,134
Trade names	3.4 years		9,100		4,141		4,959
Backlogs	— years		1,800		1,800		—
License agreements	5.8 years		2,445		1,390		1,055
Other intangibles	1.6 years		1,382		1,144		238
Total intangibles, net		$	200,366	$	123,274	$	77,092

Summary of Amortization Expense of Intangibles

The amortization expense of intangibles for the periods presented is summarized below (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Amortization in “Cost of revenues: Product”	$	4,904	$	3,866	$	9,836	$	6,663
Amortization of intangibles in "Operations"		1,575		2,746		3,716		4,360
Total amortization	$	6,479	$	6,612	$	13,552	$	11,023

Debt (Tables)

6 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Components of Debt

The Company’s debt is comprised of the following (in thousands):

	December 31, 2018			June 30, 2018
Current portion of long-term debt:
Term Loan	$	9,500		$	9,500
Less: unamortized debt issuance costs		(491	)		(493	)
Current portion of long-term debt	$	9,009		$	9,007

Long-term debt, less current portion:
Term Loan	$	175,750		$	180,500
Revolving Facility		—			10,000
Less: unamortized debt issuance costs		(1,504	)		(1,751	)
Total long-term debt, less current portion		174,246			188,749
Total debt	$	183,255		$	197,756

Stockholders' Equity (Tables)

6 Months Ended

Dec. 31, 2018

Equity [Abstract]

Summary of Share Repurchases Under Stock Repurchase Program

The following table summarizes the Company's shares repurchases under its stock repurchase program (in thousands, except per share amounts):

	Three Months Ended		Six Months Ended
	December 31, 2018		December 31, 2018
Total number of shares repurchased		2,366		2,366
Average price paid per share	$	6.34	$	6.34
Dollar value of shares repurchased	$	15,000	$	15,000
Dollar value of shares that may yet be repurchased under program	$	45,000	$	45,000

Employee Benefit Plans (Tables)

6 Months Ended

Dec. 31, 2018

Share Based Compensation [Abstract]

Shares Reserved for Issuance

The Company had reserved for issuance for the periods noted (in thousands):

	December 31, 2018		June 30, 2018
2013 Equity Incentive Plan shares available for grant		7,558		9,957
Employee stock options and awards outstanding		11,577		12,060
2014 Employee Stock Purchase Plan		4,084		5,365
Total shares reserved for issuance		23,219		27,382

Schedule of Recognized Share-based Compensation Expense

Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Cost of product revenue	$	217	$	134	$	395	$	226
Cost of service revenue		677		296		1,022		429
Research and development		2,797		1,829		5,139		2,880
Sales and marketing		2,983		2,699		5,342		4,342
General and administrative		2,026		2,067		3,627		3,951
Total share-based compensation expense	$	8,700	$	7,025	$	15,525	$	11,828

Summary of Stock Award Activity

The following table summarizes stock award activity for the six months ended December 31, 2018 (in thousands, except grant date fair value):

	Number of Shares			Weighted- Average Grant Date Fair Value		Aggregate Fair Market Value
Non-vested stock awards outstanding at June 30, 2018		7,764		$	8.60	$	61,804
Granted		4,042			6.40
Released		(2,271	)		7.75
Cancelled		(738	)		8.66
Non-vested stock awards outstanding at December 31, 2018		8,797		$	7.80	$	53,661

Summary of Stock Option Activity

The following table summarizes stock option activity for the six months ended December 31, 2018 (in thousands, except per share and contractual term):

	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Options outstanding at June 30, 2018		2,193		$	3.88		2.90	$	8,996
Granted		852			6.40
Exercised		(178	)		3.56
Cancelled		(87	)		6.01
Options outstanding at December 31, 2018		2,780		$	4.60		3.70	$	4,414
Vested and expected to vest at December 31, 2018		2,780		$	4.60		3.70	$	4,414
Exercisable at December 31, 2018		1,962		$	3.94		2.53	$	4,234

Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards

The following assumptions were used to calculate the fair value of shares granted under the ESPP during the following periods:

	Employee Stock Purchase Plan
	Six Months Ended
	December 31, 2018			December 31, 2017
Expected life	0.5 years			0.5 years
Risk-free interest rate		2.20	%		1.15	%
Volatility		63	%		42	%
Dividend yield		—	%		—	%

Information about Segments of Geographic Areas (Tables)

6 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of Long Lived Assets by Segment

The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands):

Long-lived Assets	December 31, 2018		June 30, 2018
Americas	$	142,580	$	178,251
EMEA		36,384		15,106
APAC		12,249		9,896
Total long-lived assets	$	191,213	$	203,253

Restructuring Charges, Net of Reversals (Tables)

6 Months Ended

Dec. 31, 2018

Restructuring And Related Activities [Abstract]

Restructuring Liabilities

Total restructuring and related liabilities consist of (in thousands):

	Excess Facilities			Severance Benefits			Total
Balance as of June 30, 2018	$	1,797		$	4,658		$	6,455
Period charges		104			1,524			1,628
Period reversals		—			(346	)		(346	)
Period payments		(101	)		(4,569	)		(4,670	)
Balance as of December 31, 2018	$	1,800		$	1,267		$	3,067
Less: current portion included in Other accrued liabilities								1,830
Restructuring accrual included in Other long-term liabilities							$	1,237

Net Loss Per Share (Tables)

6 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of net loss per share of basic and diluted (in thousands, except per share data):

	Three Months Ended					Six Months Ended
	December 31, 2018		December 31, 2017			December 31, 2018			December 31, 2017
Net loss	$	7,199	$	(31,923	)	$	(1,866	)	$	(27,547	)

Weighted-average shares used in per share calculation - basic		117,544		113,621			117,456			112,931
Effect of potentially dilutive shares:
Options to purchase common stock		657		—			—			—
Restricted stock units		1,129		—			—			—
Employee Stock Purchase Plan shares		214		—			—			—
Weighted-average shares used in per share calculation - diluted		119,544		113,621			117,456			112,931

Net income (loss) per share - basic	$	0.06	$	(0.28	)	$	(0.02	)	$	(0.24	)
Net income (loss) per share - diluted	$	0.06	$	(0.28	)	$	(0.02	)	$	(0.24	)

Schedule of Antidilutive Securities Excluded from Earnings Per Share Calculation

The following securities were excluded from the computation of net loss per diluted share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Options to purchase common stock		781		2,622		543		2,781
Restricted stock units		6,341		7,950		1,369		7,162
Employee Stock Purchase Plan shares		1,286		834		1,286		906
Total shares excluded		8,408		11,406		3,198		10,849

Summary of Significant Accounting Policies (Narratives) (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Jul. 01, 2018	Dec. 31, 2017	Dec. 31, 2017
Significant Accounting Policies [Line Items]
Change in unrealized gains on available for sale securities		$ 54	$ 237
ASU 2016-01
Significant Accounting Policies [Line Items]
Change in unrealized gains on available for sale securities	$ 500

Revenues (Narratives) (Details)	3 Months Ended		6 Months Ended
Revenues (Narratives) (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) Distribution_Channels	Dec. 31, 2017 USD ($)
Disaggregation Of Revenue [Line Items]
Number of distribution channels \| Distribution_Channels			2
Estimated selling price determination approach			Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using the best estimated selling price approach.
Remaining revenue performance obligations	$ 186,100,000		$ 186,100,000
Revenue recognized for deferred revenue balance	59,900,000	$ 36,900,000	$ 88,800,000	$ 52,900,000
Commission Fees
Disaggregation Of Revenue [Line Items]
Revenue, practical expedient, incremental cost of obtaining contract [true false]			true
Contract costs capitalized, balances amount	$ 5,300,000	3,200,000	$ 5,300,000	3,200,000
Contract costs capitalized, amortization period	3 years		3 years
Contract costs capitalized, amortization method			straight-line basis
Contract costs capitalized, amortization expense	$ 700,000	500,000	$ 1,400,000	900,000
Contract costs capitalized, impairment loss	$ 0	$ 0	$ 0	$ 0

Revenues (Narratives) (Details 1)	6 Months Ended
Revenues (Narratives) (Details 1)	Dec. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Percentage of remaining performance obligations expected to recognize, period	1 year
Percentage of remaining performance obligations expected to recognize	48.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Percentage of remaining performance obligations expected to recognize, period	1 year
Percentage of remaining performance obligations expected to recognize	35.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Percentage of remaining performance obligations expected to recognize, period
Percentage of remaining performance obligations expected to recognize, description	thereafter
Percentage of remaining performance obligations expected to recognize	17.00%

Revenues (Schedule of Revenue Disaggregated by Sales Channel and Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 252,680	$ 231,123	$ 492,566	$ 442,838
Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	137,053	118,511	261,968	229,735
Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	115,627	112,612	230,598	213,103
United States
Disaggregation Of Revenue [Line Items]
Net Revenues	99,467	110,828	216,145	204,210
United States \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	44,141	56,269	100,883	98,661
United States \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	55,326	54,559	115,262	105,549
Other Americas
Disaggregation Of Revenue [Line Items]
Net Revenues	13,649	6,853	23,666	27,584
Other Americas \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	8,269	1,155	12,762	15,491
Other Americas \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	5,380	5,698	10,904	12,093
Total Americas
Disaggregation Of Revenue [Line Items]
Net Revenues	113,116	117,681	239,811	231,794
Total Americas \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	52,410	57,424	113,645	114,152
Total Americas \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	60,706	60,257	126,166	117,642
EMEA
Disaggregation Of Revenue [Line Items]
Net Revenues	112,649	89,580	204,818	168,715
EMEA \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	79,876	55,956	141,207	107,188
EMEA \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	32,773	33,624	63,611	61,527
APAC
Disaggregation Of Revenue [Line Items]
Net Revenues	26,915	23,862	47,937	42,329
APAC \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	4,767	5,131	7,116	8,395
APAC \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 22,148	$ 18,731	$ 40,821	$ 33,934

Revenues (Schedule of Major Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance) (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Westcon Group Inc. \| Net Revenue
Concentration Risk [Line Items]
Concentration risk (percent)	15.00%	14.00%	14.00%	15.00%
Westcon Group Inc. \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (percent)			23.00%
Jenne Corporation \| Net Revenue
Concentration Risk [Line Items]
Concentration risk (percent)	12.00%		12.00%	10.00%
Jenne Corporation \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (percent)					13.00%
Tech Data Corporation \| Net Revenue
Concentration Risk [Line Items]
Concentration risk (percent)	22.00%	12.00%	19.00%	12.00%
Tech Data Corporation \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (percent)			22.00%		17.00%

Business Combinations (Narratives) (Details) - USD ($) $ in Thousands					6 Months Ended
	Dec. 01, 2017	Oct. 27, 2017	Jul. 14, 2017	Mar. 07, 2017	Dec. 31, 2017
Business Acquisition [Line Items]
Recorded gain from bargain purchase					$ 4,920
Data Center Business
Business Acquisition [Line Items]
Asset purchase agreement closing date		Oct. 27, 2017
Business acquisition, purchase price		$ 84,300
Net assets acquired, financing receivables		33,488
Net assets acquired, identifiable intangible assets		$ 32,800
Campus Fabric Business
Business Acquisition [Line Items]
Asset purchase agreement closing date			Jul. 14, 2017
Business acquisition, provisional consideration				$ 79,400
Net assets acquired, financing receivables			$ 19,527
Net assets acquired, identifiable intangible assets			$ 41,300
Capital Financing Business
Business Acquisition [Line Items]
Asset purchase agreement closing date	Dec. 01, 2017
Business combination, payments to seller in percentage of finance receivables	90.00%
Net assets acquired, financing receivables	$ 13,700
Net assets acquired, lease equipment	3,500
Net assets acquired, identifiable intangible assets	800
Fair value of contingent consideration	13,000
Recorded gain from bargain purchase	$ 5,000

Business Combinations (Summary of Final Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018	Oct. 27, 2017	Jul. 14, 2017
Final Allocation
Goodwill	$ 137,799	$ 139,082
Data Center Business
Final Allocation
Accounts receivables			$ 33,488
Inventories			19,934
Prepaid expenses and other current assets			988
Property and equipment			20,220
Other assets			4,734
Accounts payable and accrued expenses			(16,494)
Deferred revenue			(33,025)
Total tangible assets acquired and liabilities assumed			29,845
Identifiable intangible assets			32,800
Goodwill			21,692
Total intangible assets acquired			54,492
Total net assets acquired			$ 84,337
Campus Fabric Business
Final Allocation
Accounts receivables				$ 19,527
Inventories				14,165
Prepaid expenses and other current assets				240
Property and equipment				5,406
Other assets				7,009
Accounts payable and accrued expenses				(31,670)
Deferred revenue				(8,994)
Other long-term liabilities				(5,849)
Total tangible assets acquired and liabilities assumed				(166)
Identifiable intangible assets				41,300
In-process research and development				2,400
Goodwill				35,892
Total intangible assets acquired				79,592
Total net assets acquired				$ 79,426

Business Combinations (Summary of Final Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed) (Parenthetical) (Details) $ in Millions	Oct. 27, 2017 USD ($)
Data Center Business
Business Acquisition [Line Items]
Adjustment to record additional property and equipment	$ 1.3

Business Combinations (Summary of Unaudited Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2017
Business Acquisition Pro Forma Information [Abstract]
Net revenues	$ 252,532	$ 537,040
Net income (loss)	$ 1,152	$ (7,622)
Net income (loss) per share - basic	$ 0.01	$ (0.07)
Net income (loss) per share - diluted	$ 0.01	$ (0.07)
Shares used in per share calculation - basic	113,621	112,931
Shares used in per share calculation - diluted	119,656	112,931

Balance Sheet Accounts (Summary of Cash and Marketable Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Cash	$ 140,643	$ 121,139
Marketable securities (consisting of available-for-sale securities)	428	1,459
Total cash and marketable securities	$ 141,071	$ 122,598

Balance Sheet Accounts (Components of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Finished goods	$ 44,179	$ 49,393
Raw materials	14,118	14,474
Total Inventories	$ 58,297	$ 63,867

Balance Sheet Accounts (Components of Property and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 155,820	$ 147,116
Less: accumulated depreciation and amortization	(81,321)	(68,597)
Property and equipment, net	74,499	78,519
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	70,121	60,677
Purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	22,968	21,389
Office equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,564	14,980
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 51,167	$ 50,070

Balance Sheet Accounts (Narratives) (Details)	6 Months Ended
Balance Sheet Accounts (Narratives) (Details)	Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Standard hardware warranty period (in months)	12 months
Standard software warranty period (in days)	90 days
Limited lifetime hardware warranty maximum period after end of sale of product (in years)	5 years
Maximum investment in one obligor or maker (percent)	10.00%

Balance Sheet Accounts (Summary of Product Warranty Liability Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance beginning of period	$ 12,601	$ 13,499	$ 12,807	$ 10,584
Warranties assumed due to acquisitions		526		3,682
New warranties issued	4,145	1,657	7,867	3,929
Warranty expenditures	(3,938)	(2,672)	(7,866)	(5,185)
Balance end of period	$ 12,808	$ 13,010	$ 12,808	$ 13,010

Balance Sheet Accounts (Summary of Long-term Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Acquisition related deferred payments, less current portion	$ 11,442	$ 13,251
Contingent consideration obligations, less current portion	4,095	4,898
Other contractual obligations, less current portion	29,647	31,200
Other	15,527	9,751
Total other long-term liabilities	$ 60,711	$ 59,100

Fair Value Measurements (Schedule of Fair Value for Financial Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Assets
Total assets measured at fair value	$ 428	$ 1,459
Liabilities
Acquisition-related contingent consideration obligations	8,649	12,749
Total liabilities measured at fair value	8,649	12,749
Marketable securities
Assets
Investments	428	1,459
Level 1
Assets
Total assets measured at fair value	428	1,459
Level 1 \| Marketable securities
Assets
Investments	428	1,459
Level 3
Liabilities
Acquisition-related contingent consideration obligations	8,649	12,749
Total liabilities measured at fair value	$ 8,649	$ 12,749

Fair Value Measurements (Narratives) (Details) - USD ($)		3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 01, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Assets
Change in unrealized gains on available for sale securities			$ 54,000		$ 237,000
ASU 2016-01
Assets
Change in unrealized gains on available for sale securities	$ 500,000
Level 1 Investments
Assets
Unrealized holding gain on investments						$ 500,000
Level 2 Assets and Liabilities
Assets
Transfers of assets between Level 1 and Level 2		$ 0		$ 0		0
Transfers of liabilities between Level 1 and Level 2		0		0		0
Long-term debt, fair value		185,300,000		185,300,000		$ 200,000,000
Level 3 Assets and Liabilities
Assets
Transfers of assets between Level 2 and Level 3		0	0	0	0
Transfers of liabilities between Level 2 and Level 3		0	0	0	0
Intangible asset and goodwill impairment		$ 0	$ 0	$ 0	$ 0

Fair Value Measurements (Schedule of Change in Acquisition-related Contingent Consideration Obligations) (Details) - Level 3 Assets and Liabilities $ in Thousands	6 Months Ended
	Dec. 31, 2018 USD ($)
Business Acquisition Contingent Consideration [Line Items]
Beginning balance	$ 12,749
Payments	(4,222)
Accretion on discount	122
Ending balance	$ 8,649

Goodwill and Intangible Assets (Summary of Goodwill) (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2018 USD ($)
Goodwill [Roll Forward]
Balance as of June 30, 2018	$ 139,082
Changes due to additional property and equipment acquired (See Note 4)	(1,283)
Balance at end of period	$ 137,799

Goodwill and Intangible Assets (Components of Gross and Net Intangible Asset Balances) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 198,353	$ 200,366
Accumulated Amortization	134,809	123,274
Net Carrying Amount	$ 63,544	$ 77,092
Developed technology
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	2 years 9 months 18 days	3 years 3 months 18 days
Gross Carrying Amount	$ 117,000	$ 117,000
Accumulated Amortization	67,888	58,299
Net Carrying Amount	$ 49,112	$ 58,701
Customer relationships
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	2 years 6 months	3 years
Gross Carrying Amount	$ 51,639	$ 51,639
Accumulated Amortization	42,522	40,634
Net Carrying Amount	$ 9,117	$ 11,005
Maintenance contracts
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	1 month 6 days	3 months 18 days
Gross Carrying Amount	$ 17,000	$ 17,000
Accumulated Amortization	$ 17,000	15,866
Net Carrying Amount		$ 1,134
Trade names
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	2 years 10 months 24 days	3 years 4 months 24 days
Gross Carrying Amount	$ 9,100	$ 9,100
Accumulated Amortization	4,871	4,141
Net Carrying Amount	$ 4,229	$ 4,959
Backlogs
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period		0 years
Gross Carrying Amount		$ 1,800
Accumulated Amortization		$ 1,800
License agreements
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	5 years 7 months 6 days	5 years 9 months 18 days
Gross Carrying Amount	$ 2,232	$ 2,445
Accumulated Amortization	1,313	1,390
Net Carrying Amount	$ 919	$ 1,055
Other intangibles
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	1 year 1 month 6 days	1 year 7 months 6 days
Gross Carrying Amount	$ 1,382	$ 1,382
Accumulated Amortization	1,215	1,144
Net Carrying Amount	$ 167	$ 238

Goodwill and Intangible Assets (Summary of Amortization Expense of Intangibles) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization in “Cost of revenues: Product”	$ 4,904	$ 3,866	$ 9,836	$ 6,663
Type Of Cost Good Or Service Extensible List	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Amortization of intangibles in "Operations"	$ 1,575	$ 2,746	$ 3,716	$ 4,360
Total amortization	$ 6,479	$ 6,612	$ 13,552	$ 11,023

Debt (Components of Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Line Of Credit Facility [Line Items]
Current portion of long-term debt	$ 9,009	$ 9,007
Less: unamortized debt issuance costs	(491)	(493)
Long-term debt, less current portion	174,246	188,749
Less: unamortized debt issuance costs	(1,504)	(1,751)
Total debt	183,255	197,756
Term Loan
Line Of Credit Facility [Line Items]
Current portion of long-term debt	9,500	9,500
Long-term debt, less current portion	$ 175,750	180,500
Revolving Facility
Line Of Credit Facility [Line Items]
Long-term debt, less current portion		$ 10,000

Debt (Narratives) (Details) - USD ($)		3 Months Ended		6 Months Ended
Debt (Narratives) (Details) - USD ($)	May 01, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Line Of Credit Facility [Line Items]
Outstanding letters of credit		$ 1,000,000		$ 1,000,000
Interest Expense
Line Of Credit Facility [Line Items]
Amortization of deferred financing costs		200,000	$ 200,000	300,000	$ 300,000
Credit Agreement
Line Of Credit Facility [Line Items]
Borrowings under Term Loan	$ 200,000,000
Credit Agreement \| Term Loan
Line Of Credit Facility [Line Items]
Credit Facility, term	5 years
Amount borrowed under Term Loan	$ 190,000,000
Credit Agreement \| Revolving Facility
Line Of Credit Facility [Line Items]
Credit Facility, term	5 years
Borrowing capacity from Credit Agreement	$ 40,000,000
Commitment fee	0.35%
Borrowings available under facility		$ 39,000,000		$ 39,000,000
Maximum \| Credit Agreement
Line Of Credit Facility [Line Items]
Additional incremental loan facility	$ 100,000,000
Maximum \| Credit Agreement \| London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Borrowings, interest rate	2.75%
Maximum \| Credit Agreement \| Adjusted Base Rate
Line Of Credit Facility [Line Items]
Borrowings, interest rate	1.75%
Maximum \| Credit Agreement \| Revolving Facility
Line Of Credit Facility [Line Items]
Commitment fee	0.40%
Minimum \| Credit Agreement \| London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Borrowings, interest rate	1.50%
Minimum \| Credit Agreement \| Adjusted Base Rate
Line Of Credit Facility [Line Items]
Borrowings, interest rate	0.50%
Minimum \| Credit Agreement \| Revolving Facility
Line Of Credit Facility [Line Items]
Commitment fee	0.25%

Commitments and Contingencies (Narratives) (Details) - Dec. 31, 2018 R$ in Millions	USD ($)	BRL (R$)
Foreign \| Secretariat of the Federal Revenue Bureau of Brazil
Loss Contingencies [Line Items]
Value of tax credits disallowed	$ 800,000	R$ 3.4
Penalties, court costs, attorneys' fees, and accrued interest	4,800,000	19.6
Tax liability related to the ICMS Tax Assessments, accrued	2,300,000	R$ 9.4
Inventory Purchase Commitments
Loss Contingencies [Line Items]
Purchase commitments	172,600,000
Software and New Product Support Services Commitments
Loss Contingencies [Line Items]
Purchase commitments	$ 111,600,000

Stockholders' Equity (Narratives) (Details) - USD ($)	Dec. 31, 2018	Nov. 08, 2018	Nov. 02, 2018
Class Of Stock [Line Items]
Stock repurchase, authorized amount			$ 60,000,000
Maximum amount of common stock may be repurchased in calendar year	$ 35,000,000
2014 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Authorized shares for issuance		7,500,000

Stockholders' Equity (Summary of Share Repurchases Under Stock Repurchase Program) (Details) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares
Equity [Abstract]
Total number of shares repurchased \| shares	2,366	2,366
Average price paid per share \| $ / shares	$ 6.34	$ 6.34
Dollar value of shares repurchased	$ 15,000	$ 15,000
Dollar value of shares that may yet be repurchased under program	$ 45,000	$ 45,000

Employee Benefit Plans (Shares Reserved for Issuance) (Details) - shares shares in Thousands	Dec. 31, 2018	Jun. 30, 2018
Class Of Stock [Line Items]
Shares reserved for issuance	23,219	27,382
2014 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Shares reserved for issuance	4,084	5,365
Employee Stock Options and Awards Outstanding
Class Of Stock [Line Items]
Shares reserved for issuance	11,577	12,060
2013 Equity Incentive Plan Shares Available for Grant
Class Of Stock [Line Items]
Shares reserved for issuance	7,558	9,957

Employee Benefit Plans (Schedule of Recognized Share-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 8,700	$ 7,025	$ 15,525	$ 11,828
Cost of Product Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	217	134	395	226
Cost of Service Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	677	296	1,022	429
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	2,797	1,829	5,139	2,880
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	2,983	2,699	5,342	4,342
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,026	$ 2,067	$ 3,627	$ 3,951

Employee Benefit Plans (Summary of Stock Award Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Number of Shares
Non-vested stock awards outstanding at June 30, 2018 \| shares	7,764
Granted \| shares	4,042
Released \| shares	(2,271)
Cancelled \| shares	(738)
Non-vested stock awards outstanding at December 31, 2018 \| shares	8,797
Weighted-Average Grant Date Fair Value
Non-vested stock awards outstanding at June 30, 2018 \| $ / shares	$ 8.60
Granted \| $ / shares	6.40
Released \| $ / shares	7.75
Cancelled \| $ / shares	8.66
Non-vested stock awards outstanding at December 31, 2018 \| $ / shares	$ 7.80
Aggregate Fair Market Value
Non-vested stock awards outstanding at June 30, 2018 \| $	$ 61,804
Non-vested stock awards outstanding at December 31, 2018 \| $	$ 53,661

Employee Benefit Plans (Summary of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares
Number of Shares
Options outstanding at June 30, 2018 \| shares	2,193
Granted \| shares	852
Exercised \| shares	(178)
Cancelled \| shares	(87)
Options outstanding at December 31, 2018 \| shares	2,780	2,193
Vested and expected to vest at December 31, 2018 \| shares	2,780
Exercisable at December 31, 2018 \| shares	1,962
Weighted-Average Exercise Price Per Share
Options outstanding at June 30, 2018 \| $ / shares	$ 3.88
Granted \| $ / shares	6.40
Exercised \| $ / shares	3.56
Cancelled \| $ / shares	6.01
Options outstanding at December 31, 2018 \| $ / shares	4.60	$ 3.88
Vested and expected to vest at December 31, 2018 \| $ / shares	4.60
Exercisable at December 31, 2018 \| $ / shares	$ 3.94
Weighted-Average Remaining Contractual Term
Options outstanding	3 years 8 months 12 days	2 years 10 months 24 days
Vested and expected to vest at December 31, 2018	3 years 8 months 12 days
Exercisable at December 31, 2018	2 years 6 months 10 days
Aggregate Intrinsic Value
Options outstanding \| $	$ 4,414	$ 8,996
Vested and expected to vest at December 31, 2018 \| $	4,414
Exercisable at December 31, 2018 \| $	$ 4,234

Employee Benefit Plans (Narratives) (Details)	3 Months Ended			6 Months Ended
Employee Benefit Plans (Narratives) (Details)	Dec. 31, 2018 Quarter $ / shares shares	Sep. 30, 2018 Quarter $ / shares shares	Dec. 31, 2017 shares	Dec. 31, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted				4,042,000
Stock options/units granted, grant date fair value \| $ / shares				$ 6.40
Stock options granted				852,000
2014 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	0		0
Shares issued under stock purchase plan				1,280,708	1,267,930
Weighted-average grant-date fair value of options granted (in dollars per share) \| $ / shares				$ 2.73	$ 2.41
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	705,009
Share-based compensation arrangement by share-based payment award, award vesting percentage				The RSUs vest from the original grant date as to one-third (1/3) on the one-year anniversary and one-twelfth (1/12) each quarter thereafter, subject to continued service to the Company.
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	0		0
Service-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted, percentage	50.00%	50.00%
VPs \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted		1,269,800
Executive Officers \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted		278,000
Other Employees \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	347,867	2,067,074
Chief Financial Officer \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	357,142
Vice President and Chief Executive Officer \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted, percentage	50.00%	50.00%
Stock options/units granted, grant date fair value \| $ / shares	$ 6.40	$ 6.40
Employees \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock unit vesting, earnings per share \| $ / shares	$ 0.20	$ 0.20
Performance stock unit vesting, consecutive quarters \| Quarter	2	2
Stock options/units vesting, stock trigger price \| $ / shares	$ 10.00	$ 10.00
Certain Officers and Executive Vice Presidents \| Performance Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options/units granted, grant date fair value \| $ / shares				$ 2.62
Stock options/units vesting, stock trigger price \| $ / shares		$ 10.00
Stock options granted		851,700
Stock options vesting performance period		3 years
Stock options vesting, Threshold consecutive trading days from August 29, 2018 through August 31, 2021		30 days
Certain Officers and Executive Vice Presidents \| Performance Stock Options \| Price Hurdle Met Before or on August 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting percentage				one-third of the PSOs will vest on August 31, 2019 and the remainder will vest quarterly over two years.
Award vesting percentage				33.33%
Certain Officers and Executive Vice Presidents \| Performance Stock Options \| Price Hurdle Met After August 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting percentage				a number of the PSOs will vest (ratably calculated based upon the time elapsed between August 31, 2018 and the date the hurdle is met) and the remainder will vest quarterly through August 31, 2021.

Employee Benefit Plans (Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards) (Details) - Employee Stock Purchase Plan	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life	6 months	6 months
Risk-free interest rate	2.20%	1.15%
Volatility	63.00%	42.00%

Information about Segments of Geographic Areas (Narratives) (Details)	6 Months Ended
	Dec. 31, 2018 Segment Geographic_Area
Segment Reporting [Abstract]
Number of operating segments \| Segment	1
Number of geographic regions \| Geographic_Area	3

Information about Segments of Geographic Areas (Schedule of Long Lived Assets by Segment) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2018
Segment Reporting Information [Line Items]
Total long-lived assets	$ 191,213	$ 203,253
Americas
Segment Reporting Information [Line Items]
Total long-lived assets	142,580	178,251
EMEA
Segment Reporting Information [Line Items]
Total long-lived assets	36,384	15,106
APAC
Segment Reporting Information [Line Items]
Total long-lived assets	$ 12,249	$ 9,896

Foreign Exchange Forward Contracts (Narratives) (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2018 USD ($) Contract	Dec. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) Contract	Dec. 31, 2017 USD ($)
Derivative [Line Items]
Foreign currency transactions realized gain (loss)		$ (600,000)	$ 200,000	$ (1,100,000)
Maximum
Derivative [Line Items]
Foreign currency transactions realized gain (loss)	$ (100,000)
Not Designated as Hedging Instrument \| Forward Foreign Currency Contracts
Derivative [Line Items]
Number of derivative financial instruments \| Contract	0		0
Notional principal amount of forward foreign currency contracts		$ 1,500,000		$ 1,500,000
Maximum maturities for contracts				90 days

Restructuring Charges, Net of Reversals (Narratives) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2018
Restructuring Cost And Reserve [Line Items]
Restructuring charges, net of reversals	$ 474	$ 1,282
Cash payments		4,670
Reduction-in-force
Restructuring Cost And Reserve [Line Items]
Restructuring charges, net of reversals	$ 500	1,300
Cash payments		$ 4,700

Restructuring Charges, Net of Reversals (Restructuring Liabilities) (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2018 USD ($)
Restructuring Cost And Reserve [Line Items]
Beginning balance	$ 6,455
Period charges	1,628
Period reversals	(346)
Period payments	(4,670)
Ending balance	3,067
Less: current portion included in Other accrued liabilities	1,830
Restructuring accrual included in Other long-term liabilities	1,237
Excess Facilities
Restructuring Cost And Reserve [Line Items]
Beginning balance	1,797
Period charges	104
Period payments	(101)
Ending balance	1,800
Severance Benefits
Restructuring Cost And Reserve [Line Items]
Beginning balance	4,658
Period charges	1,524
Period reversals	(346)
Period payments	(4,569)
Ending balance	$ 1,267

Income Taxes (Narratives) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Income Taxes (Narratives) (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018	Sep. 30, 2018
Operating Loss Carryforwards [Line Items]
Income tax (benefit)	$ (5,270,000)	$ (1,617,000)	$ (3,868,000)	$ 58,000
State net operating loss	0	0	$ 0	0
Tax benefit, foreign	2,600,000
Tax benefit	4,700,000	$ 2,500,000		$ 2,500,000	$ 2,500,000
U.S. Federal tax rate		35.00%	21.00%	35.00%
Description of effective date of enacted tax rate implementation			Effective for tax years beginning on or after January 1, 2018.
Additional tax provision resulting corresponding reduction in valuation allowance	0		$ 0
Reduced valuation allowance	4,700,000		4,700,000
Unrecognized tax benefits	17,500,000		17,500,000
Unrecognized tax benefit future impact if recognized	17,500,000		$ 17,500,000
State
Operating Loss Carryforwards [Line Items]
Income tax examination, years under examination			2014 2015 2016
Enterasys, Zebra WLAN Business, Campus Fabric Business and Brocade Data Center Business
Operating Loss Carryforwards [Line Items]
Tax amortization deduction for capitalized goodwill	1,800,000		$ 4,100,000
Deferred tax liability, goodwill	$ 6,400,000		$ 6,400,000
Amortization period of intangible assets resulting from acquisitions			15 years
ASU 2016-16 \| Ireland \| Subsidiary
Operating Loss Carryforwards [Line Items]
Deferred tax asset relating to a transfer of certain assets to subsidiary						$ 3,700,000

Net Loss Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share Diluted [Line Items]
Net loss	$ 7,199	$ (31,923)	$ (1,866)	$ (27,547)
Weighted-average shares used in per share calculation - basic	117,544	113,621	117,456	112,931
Weighted-average shares used in per share calculation - diluted	119,544	113,621	117,456	112,931
Net income (loss) per share - basic	$ 0.06	$ (0.28)	$ (0.02)	$ (0.24)
Net income (loss) per share - diluted	$ 0.06	$ (0.28)	$ (0.02)	$ (0.24)
Options to purchase common stock
Earnings Per Share Diluted [Line Items]
Effect of potentially dilutive shares	657
Restricted Stock Units
Earnings Per Share Diluted [Line Items]
Effect of potentially dilutive shares	1,129
Employee Stock Purchase Plan shares
Earnings Per Share Diluted [Line Items]
Effect of potentially dilutive shares	214

Net Loss Per Share (Schedule of Anti-Dilutive Shares Excluded from Earnings Per Share Calculation) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	8,408	11,406	3,198	10,849
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	781	2,622	543	2,781
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	6,341	7,950	1,369	7,162
Employee Stock Purchase Plan shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	1,286	834	1,286	906