Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 25, 2019
Cover [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 Shell Company	false
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Trading Symbol	EXTR
Amendment Flag	false
Entity Common Stock, Shares Outstanding		121,566,817
Entity File Number	000-25711
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0430270
Entity Address, Address Line One	6480 Via Del Oro
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95119
City Area Code	408
Local Phone Number	579-2800
Title of 12(b) Security	Common Stock
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 131,369	$ 169,607
Short term investments	29,705
Accounts receivable, net of allowance for doubtful accounts of $1,431 and $1,054 respectively	152,277	174,414
Inventories	82,394	63,589
Prepaid expenses and other current assets	38,963	34,379
Total current assets	434,708	441,989
Property and equipment, net	70,613	73,554
Operating lease right-of-use assets, net	62,576
Intangible assets, net	96,087	51,112
Goodwill	332,841	138,577
Other assets	54,967	51,642
Total assets	1,051,792	756,874
Current liabilities:
Current portion of long-term debt, net of unamortized debt issuance costs of $2,477 and $489, respectively	16,523	9,011
Accounts payable	63,519	65,704
Accrued compensation and benefits	48,477	51,625
Accrued warranty	15,988	14,779
Current portion of operating lease liabilities	17,767
Current portion of deferred revenue	182,149	144,230
Other accrued liabilities	67,028	70,680
Total current liabilities	411,451	356,029
Deferred revenue, less current portion	91,508	59,012
Long-term debt, less current portion, net of unamortized debt issuance costs of $7,594 and $1,261, respectively	353,406	169,739
Operating lease liabilities, less current portion	61,539
Deferred income taxes	2,120	1,957
Other long-term liabilities	37,919	54,150
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; 123,864 and 121,538 shares issued, respectively; 121,499 and 119,172 shares outstanding, respectively	124	122
Additional paid-in-capital	1,003,268	986,772
Accumulated other comprehensive loss	(3,371)	(2,473)
Accumulated deficit	(891,172)	(853,434)
Treasury stock at cost: 2,366 and 2,366 shares, respectively	(15,000)	(15,000)
Total stockholders’ equity	93,849	115,987
Total liabilities and stockholders’ equity	$ 1,051,792	$ 756,874

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Allowance for doubtful accounts	$ 1,431	$ 1,054
Current liabilities:
Net of unamortized debt issuance costs	2,477	489
Noncurrent liabilities:
Net of unamortized debt issuance costs	$ 7,594	$ 1,261
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	123,864,000	121,538,000
Common stock, shares outstanding	121,499,000	119,172,000
Treasury stock, shares	2,366,000	2,366,000

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Net revenues:
Total net revenues	$ 255,506	$ 239,886
Cost of revenues:
Total cost of revenues	118,263	107,815
Gross profit:
Total gross profit	137,243	132,071
Operating expenses:
Research and development	59,116	51,241
Sales and marketing	71,357	67,582
General and administrative	14,982	12,771
Acquisition and integration costs	15,925	2,546
Restructuring charges, net of reversals and impairment	6,137	808
Amortization of intangibles	1,930	2,141
Total operating expenses	169,447	137,089
Operating loss	(32,204)	(5,018)
Interest income	667	394
Interest expense	(5,164)	(3,526)
Other (expense) income, net	558	487
Loss before income taxes	(36,143)	(7,663)
Provision for income taxes	1,595	1,402
Net loss	$ (37,738)	$ (9,065)
Basic and diluted net loss per share:
Net loss per share - basic	$ (0.31)	$ (0.08)
Net loss per share - diluted	$ (0.31)	$ (0.08)
Shares used in per share calculation - basic	120,226	117,368
Shares used in per share calculation - diluted	120,226	117,368
Product
Net revenues:
Total net revenues	$ 185,134	$ 177,720
Cost of revenues:
Total cost of revenues	91,391	83,543
Gross profit:
Total gross profit	93,743	94,177
Service
Net revenues:
Total net revenues	70,372	62,166
Cost of revenues:
Total cost of revenues	26,872	24,272
Gross profit:
Total gross profit	$ 43,500	$ 37,894

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (37,738)	$ (9,065)
Other comprehensive loss, net of tax:
Change in unrealized losses on available for sale securities	(7)
Net change in foreign currency translation adjustments	(891)	(497)
Other comprehensive loss, net of tax:	(898)	(497)
Total comprehensive loss	$ (38,636)	$ (9,562)

- 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 Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In-Capital	Accumulated Other Comprehensive Loss	Treasury Stock	Accumulated Deficit
Balance at Jun. 30, 2018	$ 112,732	$ 116	$ 942,397	$ (1,703)		$ (828,078)
Balance, common stock, shares at Jun. 30, 2018		116,124
Treasury stock, value at Jun. 30, 2018					$ 0
Cumulative effect of adopting ASU 2016-01 at Jun. 30, 2018				(497)		497
Net loss	(9,065)					(9,065)
Other comprehensive loss	(497)			(497)
Issuance of common stock from equity incentive plans, net of tax	7,136	$ 2	7,134
Issuance of common stock from equity incentive plans, net of tax, shares		2,146
Share-based compensation	6,825		6,825
Balance at Sep. 30, 2018	117,131	$ 118	956,356	(2,697)		(836,646)
Balance, common stock, shares at Sep. 30, 2018		118,270
Balance at Jun. 30, 2019	$ 115,987	$ 122	986,772	(2,473)		(853,434)
Balance, common stock, shares at Jun. 30, 2019	121,538	121,538
Treasury stock, shares at Jun. 30, 2019	(2,366)				(2,366)
Treasury stock, value at Jun. 30, 2019	$ (15,000)				$ (15,000)
Net loss	(37,738)					(37,738)
Other comprehensive loss	(898)			(898)
Issuance of common stock from equity incentive plans, net of tax	4,134	$ 2	4,132
Issuance of common stock from equity incentive plans, net of tax, shares		2,326
Stock awards granted in connection with acquisition	3,530		3,530
Share-based compensation	8,834		8,834
Balance at Sep. 30, 2019	$ 93,849	$ 124	$ 1,003,268	$ (3,371)		$ (891,172)
Balance, common stock, shares at Sep. 30, 2019	123,864	123,864
Treasury stock, shares at Sep. 30, 2019	(2,366)				(2,366)
Treasury stock, value at Sep. 30, 2019	$ (15,000)				$ (15,000)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (37,738)	$ (9,065)
Adjustments to reconcile net loss to net cash provided by (used in) provided by operating activities:
Depreciation	7,101	6,783
Amortization of intangible assets	8,425	7,073
Amortization of operating lease right-of-use assets	4,317
Provision for doubtful accounts	401	515
Stock-based compensation	8,834	6,825
Deferred income taxes	357	(25)
Non-cash restructuring and related charges	3,839
Unrealized/realized gain on equity investment		(154)
Non-cash interest expense	904	995
Other	(78)	(172)
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable	33,490	46,661
Inventories	(2,108)	8,287
Prepaid expenses and other assets	(486)	(7,814)
Accounts payable	(11,198)	(31,251)
Accrued compensation and benefits	(10,277)	(13,964)
Operating lease liabilities	(4,631)
Deferred revenue	2,001	9,374
Other current and long-term liabilities	(3,355)	10,262
Net cash (used in) provided by operating activities	(202)	34,330
Cash flows from investing activities:
Capital expenditures	(5,239)	(7,417)
Business acquisitions, net of cash acquired	(219,458)
Maturities and sales of investments	15,503	727
Net cash used in investing activities	(209,194)	(6,690)
Cash flows from financing activities:
Borrowings under Term Loan	199,500
Repayments of debt	(20,099)	(12,466)
Loan fees on borrowings	(10,515)	(273)
Proceeds from issuance of common stock, net of tax withholding	4,136	7,137
Contingent consideration obligations	(635)	(1,577)
Deferred payments on an acquisition	(1,000)	(1,000)
Net cash provided by (used in) financing activities	171,387	(8,179)
Foreign currency effect on cash	(229)	(433)
Net (decrease) increase in cash	(38,238)	19,028
Cash and cash equivalents at beginning of period	169,607	121,139
Cash and cash equivalents at end of period	$ 131,369	$ 140,167

Description of Business and Basis of Presentation

3 Months Ended

Sep. 30, 2019

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, 2019 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, 2019.

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 September 30, 2019. The results of operations for the three months ended September 30, 2019 are not necessarily indicative of the results that may be expected for fiscal 2020 or any future periods.

Fiscal Year

The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2020” or “2020” represent the fiscal year ending June 30, 2020. All references herein to “fiscal 2019” or “2019” represent the fiscal year ended June 30, 2019.

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 functional currency 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

3 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

For a description of significant accounting policies, see Note 2, 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, 2019. 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 February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842), which requires the identification of arrangements that should be accounted for as leases by lessees and lessors, and key disclosure information about leasing arrangements. In general, for lease arrangements exceeding a twelve-month term, these arrangements is recognized as assets and liabilities on the balance sheet of the lessee. Under Topic 842, a right-of-use asset (“ROU”) and lease obligation are 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 is calculated using the applicable incremental borrowing rate at the date of adoption. Topic 842 also required lessors to classify leases as a sales-type, direct financing or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. Substantially all of the Company’s leases continue to be classified as operating leases. In addition, Topic 842 was subsequently amended by ASU No 2018-10, Codification Improvements; ASU 2018-11, Targeted Improvements; ASU 2018-20 Narrow Scope Improvements; and ASU 2019-01 Codification Improvements.

The Company adopted the new standards beginning with its fiscal year 2020. Topic 842 is applied on the modified retrospective method, applying the new standard to all leases existing as of July 1, 2019. The Company adopted the new standard using the effective date of July 1, 2019 as the date of initial application. Consequently, financial information has not been updated, and disclosures required under the new standard will not be provided for dates and periods prior to July 1, 2019.

The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients” which permitted the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification, and initial direct costs. The new standard also provided practical expedients for ongoing accounting. The Company also elected the short-term lease recognition exemption for all leases that qualified. For those leases that qualified, existing short-term leases at the transition date and those entered into subsequent to the transition date, the Company did not recognize right-of-use assets or lease liabilities. In addition, the Company elected the practical expedient not to separate lease and non-lease components for leases except for the logistic services asset class and certain revenue subscription contracts where the Company leases its hardware products and is deemed to be a lessor. See Note 9, Leases, for additional information regarding the Company’s leases.

The Company recognized ROU assets of approximately $64.6 million and corresponding lease liabilities of $79.5 million on the condensed consolidated balance sheets, which was based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. See Note 9 – Leases.

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. In addition, Topic 815 was subsequently amended by ASU 2019-04, Codification Improvements. These standards are effective for interim and annual reporting periods beginning after December 15, 2018. This guidance was effective for the Company beginning with its fiscal year 2020. It did not have a material impact on the Company’s financial statements upon adoption.

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. 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. The standard was adopted on July 1, 2019 and did not have a material impact on the Company’s financial statements upon adoption.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. It replaces the existing incurred loss impairment model with an expected loss model. It also requires credit losses related to available-for-sale debt securities to be recognized as an allowance for credit losses rather than as a reduction to the carrying value of the securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of this new standard on its condensed consolidated financial statements and related disclosures. The Company currently plans to adopt this standard beginning with its fiscal year 2022, beginning on July 1, 2021.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350), which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. An impairment charge will now be the amount by which a reporting unit’s carrying value exceeds the fair value, not to exceed the carrying amount of goodwill. This standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted The Company does not expect the adoption to have a material impact on the condensed consolidated financial statements. The Company currently plans to adopt this standard beginning with its fiscal year 2021, beginning on July 1, 2020.

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

3 Months Ended

Sep. 30, 2019

Revenue From Contract With Customer [Abstract]

Revenues

The Company accounts for revenue in accordance with ASU 2014-09, Revenue from Contracts from Customers (Topic 606), 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 software delivered as a service (“SaaS”) and 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 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 are recognized at a point in time. Substantially all of the Company’s service and SaaS revenue is recognized over time. For revenue recognized over time, the Company uses an input measure, days elapsed, to measure progress.

On September 30, 2019, the Company had $273.7 million of remaining performance obligations, which primarily comprised of deferred maintenance and SaaS revenue. The Company expects to recognize approximately 58 percent of its remaining performance obligations as revenue in fiscal 2020, an additional 24 percent in fiscal 2021 and 18 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 condensed consolidated balance sheets. Services provided under renewable support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are either billed fully at the inception of contract or 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 condensed consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

Revenue recognized for the three months ended September 30, 2019 and 2018 that was included in the deferred revenue balance at the beginning of each period was $53.8 million and $50.6 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 representatives as a result of obtaining service contracts and contract renewals are recoverable and therefore the Company’s condensed consolidated balance sheets included capitalized balances in the amount of $7.6 million and $4.9 million at September 30, 2019 and June 30, 2018, 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 September 30, 2019 and 2018, was $2.7 million and $0.7 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
	September 30, 2019						September 30, 2018
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	69,978	$	62,345	$	132,323	$	56,742	$	59,936	$	116,678
Other		4,015		4,999		9,014		4,493		5,524		10,017
Total Americas		73,993		67,344		141,337		61,235		65,460		126,695
EMEA		59,129		29,634		88,763		61,331		30,838		92,169
APAC		9,113		16,293		25,406		2,349		18,673		21,022
Total net revenues	$	142,235	$	113,271	$	255,506	$	124,915	$	114,971	$	239,886

Included in the above amounts is approximately $3.7 million and $4.0 million of leasing revenue for the quarters ended September 30, 2019 and 2018, respectively.

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
	September 30, 2019	September 30, 2018
Tech Data Corporation	16%	17%
Jenne Corporation	14%	12%
Westcon Group Inc.	10%	13%

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


	September 30, 2019			June 30, 2019
Tech Data Corporation		21	%		12	%
Jenne Corporation		19	%		35	%
Westcon Group Inc.		12	%	*

Business Combination

3 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Business Combination

4.	Business Combination

Aerohive Acquisition

On August 9, 2019 (the “Acquisition Date”) the Company consummated its acquisition (the “Acquisition”) of all of the outstanding common stock of Aerohive Networks, Inc. (“Aerohive”) pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”) entered into as of June 26, 2019. Under the terms of the Acquisition, the preliminary net consideration paid by Extreme to Aerohive stockholders was $267.1 million.

The acquisition has been accounted for using the acquisition method of accounting whereby the acquired assets and liabilities of Aerohive have been recorded at their respective fair values and added to those of the Company including an amount for goodwill calculated as the difference between the acquisition consideration and the fair value of the identifiable net assets. The purchase price has been preliminarily allocated to tangible and identifiable intangible assets acquired and liabilities assumed. The final purchase price allocation is pending the finalization of valuations, which may result in an adjustment to the preliminary purchase price allocation.

The estimated fair values were determined through established and generally accepted valuation techniques, including work performed by third-party valuation specialists. The fair value of working capital related items, such as other current assets and accrued liabilities, approximated their book values at the date of acquisition. Inventories were valued at fair value using the net realizable value approach. The fair value of the acquired deferred revenue was estimated using the cost build-up approach. The cost build-up approach determines fair value using estimates of the costs required to provide the contracted deliverables plus an assumed profit. The total costs including the assumed profit were adjusted to present value using a discount rate considered appropriate. The resulting fair value approximates the amount that the Company would be required to pay to a third party to assume the obligation. Valuations of the intangible assets were valued using income approaches based on management projections, which the Company considers to be Level 3 inputs. The Company also continues to analyze the tax implications of the acquisition of the intangible assets which may ultimately impact the overall level of goodwill associated with the acquisition. Results of operations of Aerohive have been included in the operations of the Company beginning with the Acquisition Date.

The components of aggregate estimated purchase consideration are as follows (in thousands):

Estimated purchase consideration	August 9, 2019
Cash paid to acquire outstanding shares	$	263,616
Replacement of stock-based awards		3,530
Aggregate estimated purchase consideration	$	267,146

The preliminary purchase price allocation is set forth in the table below and reflects estimated fair values (in thousands).

	Preliminary Allocation as of August 9, 2019
Cash and cash equivalents	$	44,158
Short-term investments		45,148
Accounts receivable, net		11,753
Inventories		16,698
Prepaid expenses and other current assets		3,980
Property and equipment		2,185
Operating lease right-of-use assets		6,336
Other assets		2,195
Debt		(20,000	)
Accounts payable		(9,737	)
Accrued compensation and benefits		(7,129	)
Accrued warranty		(570	)
Other accrued liabilities		(1,960	)
Operating lease liabilities		(4,752	)
Deferred revenue		(68,415	)
Other liabilities		(408	)
Net tangible assets		19,482

Identifiable intangible assets		53,400
Goodwill		194,264
Total intangible assets acquired		247,664

Total net assets acquired	$	267,146

The following table presents details of the identifiable intangible assets acquired as part of the acquisition (dollars in thousands):

Intangible Assets	Estimated Useful Life (in years)		Amount
Developed technology		4	$	40,000
Backlog		1		400
Customer relationships		7		11,400
Trade names		1.5		1,600
Total identifiable intangible assets			$	53,400

The amortization for the developed technology and backlog is recorded in “Cost of revenues” for product and the amortization for the remaining intangibles is recorded in “Amortization of intangibles” in the accompanying condensed consolidated statements of operations. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Aerohive. The Company will not be entitled to amortization of the goodwill and intangible assets for tax purposes as this acquisition is a nontaxable stock acquisition.

The results of operations of Aerohive are included in the accompanying condensed consolidated results of operations beginning August 9, 2019. The Aerohive revenue for the quarter ended September 30, 2019 was $25.4 million and has been incorporated into the revenue of the Company. The associated expenses of Aerohive have been incorporated with the results of operations of the Company and, therefore, stand-alone operating results are not available.

In the quarter ended September 30, 2019, the Company incurred acquisition and integration related expenses of $15.9 million associated with the acquisition of Aerohive including a $6.8 million compensation charge for certain Aerohive Executive stock awards which were accelerated due to change-in-control and termination provisions included in the Executives’ employment contracts. Other acquisition and integration costs consist primarily of professional fees for financial and legal advisory services and severance charges for terminated Aerohive employees. Such acquisition-related costs were expensed as incurred and are included in “Acquisition and integration costs” in the accompanying condensed consolidated statements of operations.

Pro forma financial information

The following unaudited pro forma results of operations are presented as though the acquisition of Aerohive had occurred as of July 1, 2018, the beginning of fiscal 2019, after giving effect to purchase accounting adjustments relating to inventories, deferred revenue, depreciation and amortization of 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 2019, 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 months ended September 30, 2019 combines the historical results for Extreme for the period, which include the results of Aerohive subsequent to the Acquisition Date, and Aerohive’s historical results up to the Acquisition Date.

Pro forma results of operations for the three months ended September 30, 2018 combines the historical results of operations for Extreme and for Aerohive.

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

	Three Months Ended
	September 30, 2019			September 30, 2018
Net revenues	$	267,678		$	279,234
Net loss	$	(24,084	)	$	(39,085	)
Net loss per share - basic and diluted	$	(0.20	)	$	(0.33	)
Shares used in per share calculation - basic and diluted		120,226			117,368

Balance Sheet Accounts

3 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance Sheet Accounts

5.	Balance Sheet Accounts

Cash, Cash Equivalents, and Short-term Investments

The following is a summary of cash, cash equivalents, and short-term investments (in thousands):

	September 30, 2019		June 30, 2019
Cash	$	122,722	$	169,607
Cash equivalents		8,647		—
Short-term investments (consisting of available-for-sale securities)		29,705		—
Total cash, cash equivalents, and short-term investments	$	161,074	$	169,607

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 adjusts the carrying value of its inventory 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):

	September 30, 2019		June 30, 2019
Finished goods	$	67,268	$	49,492
Raw materials		15,126		14,097
Total Inventories	$	82,394	$	63,589

Property and Equipment, Net

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

	September 30, 2019			June 30, 2019
Computers and equipment	$	73,817		$	72,309
Purchased software		30,709			29,126
Office equipment, furniture and fixtures		11,833			10,815
Leasehold improvements		51,613			51,245
Total property and equipment		167,972			163,495
Less: accumulated depreciation and amortization		(97,359	)		(89,941	)
Property and equipment, net	$	70,613		$	73,554

Deferred Revenue

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

Guarantees and Product Warranties

The majority of the Company’s hardware products are shipped with either a one-year warranty or a limited lifetime warranty, and software products receive a 90-day warranty for media only. 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 accrues 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 months ended September 30, 2019 and 2018 (in thousands):

	Three Months Ended
	September 30, 2019			September 30, 2018
Balance beginning of period	$	14,779		$	12,807
Warranties assumed due to acquisitions		570			—
New warranties issued		5,922			3,722
Warranty expenditures		(5,283	)		(3,928	)
Balance end of period	$	15,988		$	12,601

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):

	September 30, 2019		June 30, 2019
Acquisition related deferred payments, less current portion	$	8,675	$	9,604
Contingent consideration obligations, less current portion		1,667		2,688
Other contractual obligations, less current portion		24,406		26,261
Other		3,171		15,597
Total other long-term liabilities	$	37,919	$	54,150

Concentrations

The Company may be subject to concentration of credit risk as a result of certain financial instruments consisting of accounts receivable and short-term investments. 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

3 Months Ended

Sep. 30, 2019

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):

September 30, 2019	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	8,647	$	—	$	—	$	8,647
U.S. Treasuries		—		9,329		—		9,329
Corporate debt securities		—		12,408		—		12,408
Commercial Paper		—		7,968		—		7,968
Total assets measured at fair value	$	8,647	$	29,705	$	—	$	38,352
Liabilities
Acquisition-related contingent consideration obligations	$	—	$	—	$	5,693	$	5,693
Total liabilities measured at fair value	$	—	$	—	$	5,693	$	5,693

The Company had one fair value item at June 30, 2019, a level 3 acquisition-related contingent consideration obligation or $6.3 million.

Level 1 investments:

The Company holds investment in highly liquid money market funds which are classified as cash equivalents. The Company classifies these investments within Level 1 of the fair value hierarchy because the Company values them based on quoted market prices in active markets.

Level 2 assets and liabilities:

The Company holds investment in U.S. treasuries, investment-grade corporate bonds, corporate securities and commercial paper which are classified within Level 2 of the fair value hierarchy because the Company values them based on pricing obtained from an independent pricing service, which may use quoted market prices for identical or comparable instruments or model driven valuations using observable market data or inputs corroborated by observable market data. The Company classifies these instruments as short-term investments unless their maturities are three months or less when purchases, in which case the Company classifies them as cash equivalents. There were no transfers of assets or liabilities between Level 1 and Level 2 for the periods presented.

All of the Level 1 and Level 2 assets are classified as available for sale securities. The amortized cost of the short-term investments approximates their fair value. As of September 30, 2019, unrealized gains and losses from the Company’s short-term investments were not material. All short-term investments that the Company held as of September 30, 2019 contractually mature within one year.

The fair value of the borrowings under the 2019 Credit Agreements is estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2. Due to the recent establishment of the Credit agreement, the fair value approximates the face amount of the Company’s indebtedness of $380.0 million and $180.5 million as of September 30, 2019, and June 30, 2019, respectively.

Level 3 assets and liabilities:

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 is 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):

	Three Months Ended
	September 30, 2019
Beginning balance		6,298
Payments		(635	)
Accretion on discount		30
Ending balance	$	5,693

There were no transfers of assets or liabilities between Level 2 and Level 3 during the three months ended September 30, 2019, or 2018. There were no impairments recorded for the three months ended September 30, 2019, or 2018.

Short-term investments include available-for-sale investment-grade debt securities that the Company carries at fair value. The Company accumulates unrealized gains and losses on the Company's available-for-sale debt securities, net of tax, in accumulated other comprehensive income in the stockholders' equity section of its balance sheets. Such an unrealized gain or loss does not reduce net income for the applicable accounting period. If the fair value of an available-for-sale debt instrument is less than its amortized cost basis, an other-than-temporary impairment is triggered in circumstances where (1) the Company intends to sell the instrument, (2) it is more likely than not that the Company will be required to sell the instrument before recovery of its amortized cost basis, or (3) the Company does not expect to recover the entire amortized cost basis of the instrument (that is, a credit loss exists). If the Company intends to sell or it is more likely than not that the Company will be required to sell the available-for-sale debt instrument before recovery of its amortized cost basis, the Company recognizes an other-than-temporary impairment in earnings equal to the entire difference between the debt instruments' amortized cost basis and its fair value. For available-for-sale debt instruments that are considered other-than-temporarily impaired due to the existence of a credit loss, if the Company does not intend to sell and it is not more likely than not that the Company will be required to sell the instrument before recovery of its remaining amortized cost basis (amortized cost basis less any current-period credit loss), the Company separates the amount of the impairment into the amount that is credit related and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the debt instrument's amortized cost basis and the present value of its expected future cash flows. The remaining difference between the debt instrument's fair value and the present value of future expected cash flows is due to factors that are not credit related and is recognized in other comprehensive income.

The Company determines the basis of the cost of a security sold or the amount reclassified out of accumulated other comprehensive income into earnings using the specific identification method. Realized gains or losses recognized on the sale of investment securities were not significant for the quarters ending September 30, 2019 or September 30, 2018

- 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

3 Months Ended

Sep. 30, 2019

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):

	September 30, 2019
Balance as of June 30, 2019	$	138,577
Additions due to acquisition		194,264
Balance at end of period	$	332,841

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
September 30, 2019
Developed technology	3.0 years	$	157,000	$	83,823	$	73,177
Customer relationships	3.7 years		63,039		45,544		17,495
Backlog	— years		400		400		—
Trade names	1.6 years		10,700		6,061		4,639
License agreements	5.4 years		2,445		1,729		716
Other intangibles	0.3 years		1,382		1,322		60
Total intangibles, net		$	234,966	$	138,879	$	96,087

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
June 30, 2019
Developed technology	2.4 years	$	117,000	$	77,449	$	39,551
Customer relationships	2.0 years		51,639		44,410		7,229
Trade names	2.4 years		9,100		5,647		3,453
License agreements	5.4 years		2,445		1,661		784
Other intangibles	0.6 years		1,382		1,287		95
Total intangibles, net		$	181,566	$	130,454	$	51,112

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

	Three Months Ended
	September 30, 2019		September 30, 2018
Amortization in “Cost of revenues: Product”	$	6,495	$	4,932
Amortization of intangibles in "Operations"		1,930		2,141
Total amortization	$	8,425	$	7,073

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

Debt

3 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Debt

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

	September 30, 2019			June 30, 2019
Current portion of long-term debt:
Term Loan	$	19,000		$	9,500
Less: unamortized debt issuance costs		(2,477	)		(489	)
Current portion of long-term debt	$	16,523		$	9,011

Long-term debt, less current portion:
Term Loan	$	361,000		$	171,000
Revolving Facility		—			—
Less: unamortized debt issuance costs		(7,594	)		(1,261	)
Total long-term debt, less current portion		353,406			169,739
Total debt	$	369,929		$	178,750

In connection with the acquisition of Aerohive as discussed in Note 4, on August 9, 2019, the Company entered into an Amended and Restated Credit Agreement (the “2019 Credit Agreement”), by and among the Company, as borrower, several banks and other financial institutions as Lenders, BMO Harris Bank N.A., as an issuing lender and swingline lender, Silicon Valley Bank, as an Issuing Lender, and Bank of Montreal, as administrative agent and collateral agent for the Lenders.

The 2019 Credit Agreement provides for a 5-year first lien term loan facility in an aggregate principal amount of $380 million (the “2019 Term Loan”) and a 5-year revolving loan facility in an aggregate principal amount of $75 million (the “2019 Revolving Facility”). In addition, the Company may request incremental term loans and/or incremental revolving loan commitments in an aggregate amount not to exceed the sum of $100 million plus an unlimited amount that is subject to pro forma compliance with certain financial tests. On August 9, 2019, the Company used the proceeds to partially fund the acquisition of Aerohive and for working capital and general corporate purposes.

At the Company’s election, the initial term loan (the “Initial Term Loan”) under the 2019 Credit Agreement may be made as either base rate loans or Eurodollar loans. The applicable margin for base rate loans ranges from 0.25% to 2.50% per annum and the applicable margin for Eurodollar loans ranges from 1.25% to 3.50%, in each case based on Extreme’s consolidated leverage ratio. All Eurodollar loans are subject to a Base Rate of 0.00%. 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 2019 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 December 31, 2019 and to the extent not previously paid, all outstanding balances are to be paid at maturity. The 2019 Credit Agreement is secured by substantially all of the Company’s assets.

The 2019 Credit Agreement requires the Company to maintain certain minimum financial ratios at the end of each fiscal quarter. The 2019 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 2019 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 related indebtedness or credit agreement. The Company incurred $10.5 million of deferred financing costs in conjunction which this modification of the debt and continues to amortize $1.6 million of unamortized debt issuance costs associated with the previous facility. The interest rate as of September 30, 2019 is 5.47%

Amortization of deferred financing costs included in “Interest expense” in the accompanying condensed consolidated statements of operations totaled $0.5 million and $0.2 million for the three months ended September 30, 2019 and 2018, respectively.

The Company had $70.6 million of availability under the 2019 Revolving Facility as of September 30, 2019. The Company had $4.4 million of outstanding letters of credit as of September 30, 2019.

Leases

3 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

Lessee Considerations

The Company lease certain facilities, equipment, and vehicles under operating leases that expire on various dates through fiscal 2028. Its leases generally have terms that range from 1 year to 9 years for its facilities, 1 year to 6 years for equipment, and 1 year to 5 years for vehicles. Some of its leases contain renewal options, escalation clauses, rent concessions, and leasehold improvement incentives.

The Company determines if an arrangement is a lease at inception. The Company has elected not to recognize a lease liability or right-of-use (ROU) asset for short-term leases (leases with a term of twelve months or less). Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The interest rate used to determine the present value of future payments is the Company’s incremental borrowing rate because the rate implicit in the leases are not readily determinable. The Company’s incremental borrowing rate is a hypothetical rate for collateralized borrowings based on the current economic environment, credit history, credit rating and lease term. Operating lease assets also included a reclassification for asset impairments and associated restructuring liabilities, deferred rent, lease incentives and initial direct costs which reduced the operating lease ROU assets as of July 1, 2019.

Some operating leases contain lease and non-lease components. Certain lease contracts include fixed payments for services, such as operations, maintenance, or other services. The Company has elected to account for fixed lease and non-lease components as a single lease component except for the logistic service asset class. Cash payments made for variable lease and non-lease costs are not included in the measurement of operating lease assets and liabilities and are recognized in the Company’s Condensed Consolidated Statements of Operations as incurred. Some lease terms include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless it is reasonably certain that it will exercise that option. The Company’s lease agreements do not contain any residual value guarantees.

Activity and other information relating to operating leases is as follows (in thousands except for lease term and discount rate):

	Three Months Ended September 30, 2019
Operating lease costs	$	5,143
Cash paid for amounts included in the measurement of operating liabilities		5,507
ROU assets obtained for new lease obligations		64
ROU assets obtained from Aerohive business combination		6,336
Weighted average remaining lease term (in years)		4.8
Weighted Average Discount Rate		4.5	%

Short-term lease expense for the three months ended September 30, 2019 was not material.

The maturities of the Company’s operating lease liabilities as of September 30, 2019 by fiscal year are as follows:

	Operating Leases (in thousands)
2020 (remaining nine months)	$	15,749
2021		19,941
2022		19,142
2023		15,516
2024		6,128
Thereafter		12,182
Total future minimum lease payments		88,658
Less amount representing interest		9,352
Total operating lease liabilities	$	79,306
Operating lease liabilities, current	$	17,767
Operating lease liabilities, non-current	$	61,539

As of June 30, 2019, the minimum future rentals on non-cancellable operating leases by fiscal year, based on the previous accounting standard, were as follows:

	Operating Leases (in thousands)
2020	$	22,733
2021		21,174
2022		20,680
2023		17,828
2024		5,976
Thereafter		16,287
Total lease payments	$	104,678

Sublease Considerations

The Company currently is a sublessor on several operating facility subleases that expire on various dates through fiscal 2023. The subleases have terms from 5 to 6 years and extend through the term of the underlying leases. The subleases do not include renewal options, purchase options, or termination rights. These operating subleases include only lease components. Cash payments for variable lease components such as operating expenses are not included as lease components for accounting purposes. The Company had $0.6 million of sublease income for the three months ended September 30, 2019.

Lessor Considerations

Although most of the Company’s revenue from its hardware business comes from sales of hardware, in some limited cases the recurring subscription revenue contracts represent operating leases for these customers. These leases range in duration generally up to three years with payments generally collected in equal quarterly installments. These leases include 60-day termination rights. For the three months ended September 30, 2019 and 2018, $3.7 million and $4.0 million, are included in product revenue in the financial statements, respectively. There were no changes to the accounting treatment of these transactions from the adoption of ASC 842.

Commitments and Contingencies

3 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10.	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 inventory and other services. As of September 30, 2019, the Company had commitments to purchase $50.6 million of inventory and other 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 September 30, 2019.

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 20.0 million (USD $4.8 million), which includes penalties, court costs, attorneys’ fees, and accrued interest as of September 30, 2019. 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 $2.2 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.

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 invalidated all asserted claims of the ’296 patent and ’728 patent, and has found the challenged claims of the ’231 patent not invalid in view of the prior art asserted in the IPR instituted against that patent. 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 February 11, 2019, the Court continued the stay and set a status conference for December 2, 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 (“EP ’364”) 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, 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 infringement complaint, denying any infringement and seeking a stay of the action pending the conclusion of the nullity action. Orckit filed its reply on September 26, 2019 and Extreme’s rejoinder is due on December 17, 2019. The District Court Düsseldorf scheduled a hearing in this case for January 28, 2020.

On April 23, 2019, Orckit filed and extension of the patent infringement complaint against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. With this extension, Orckit alleges infringement of the German portion of European Patent EP 3 068 077 B1 (“EP ‘077”) based on the offer, distribution, use, possession and/or importation into Germany of certain network switches. Orckit is seeking injunctive relief, accounting and sales information, and a declaration of liability for damages as well as costs of the lawsuit. Extreme’s answer to the EP ‘077 infringement complaint is due on November 5, 2019. Extreme also plans to file a nullity action with the German Federal Patent Court on or before that date, seeking to invalidate the asserted patent. No hearing has been scheduled yet in this case, which was split from the original action involving the first patent in suit.

The Company believes that all claims are without merit and defends them vigorously.

Global Innovation Aggregators, LLC v. Extreme Networks, Inc.; Extreme Networks China Limited; Extreme Networks Technology (Beijing) Co., Ltd.; and Shenzhen Yingzhixiang Technology Co.

In January 2019, Global Innovation Aggregators, LLC (“GIA”) filed six patent infringement lawsuits against the Company and its Chinese and Hong Kong subsidiaries and Shenzhen Yingzhixiang Technology Co., Ltd. in Shenzhen Intermediate People’s Court in China. The six patents at issue are ZL200610168028.1 (“ZL ‘028.1”), ZL200510120823.9, ZL200410057124.X, ZL200410070933.4, ZL200510103486.2 (“ZL ‘486.2”), and ZL200610060686.9 (collectively, the “Asserted Patents”). Each patent was asserted in a separate law suit. The filing date for the first case is January 18, 2019, and the filing date for the rest of the cases is January 23, 2019. The trial for the first case is currently scheduled for January 15, 2020, and trials for the rest of the cases have not yet been scheduled. GIA has accused the Summit X440-G2-24t-10GE4 (product number: 16532), Summit X440-G2-24p-10GE4 (product number: 16533) and Summit X460-G2-24x-10GE4-Base (product number: 16705) (collectively the “Accused Products”) of infringing the Asserted Patents. GIA has also alleged that the following Extreme switch products support the same functions as the Accused Products: Summit X440-G2 series, X450-G2 series, X460-G2 series, X620 series, X670-G2 series, X770 series, X870 series, X690 series, and X590 series. GIA is a U.S. entity established under the laws of Delaware with its principal office in Pasadena, California. Extreme disputes GIA’s claims and intends to defend the matter vigorously. Additionally, Extreme has filed invalidity challenges with the Chinese patent office to challenge the validity of each asserted patent. Oral invalidity hearings were held in July and August 2019. The Chinese patent office has issued decisions maintaining the validity of the ZL ‘028.1 and ZL ‘486.2 patents, but has not yet issued decisions for the remaining four patents. Given the uncertainty of litigation and the preliminary stage of the case, Extreme cannot estimate at this time the possible loss or range of loss that may result from this action.

Shenzhen Dunjun Technology Ltd. v. Aerohive Networks (Hangzhou) Ltd.; Aerohive Networks, Inc.; and Yunqing Information Technology (Shenzhen) Ltd.

In late September 2019, Extreme Networks learned of a patent infringement lawsuit filed by Shenzhen Dunjun Technology Ltd. (“Shenzhen Dunjun”) against Aerohive Networks, Inc., its Chinese subsidiary, and Yunqing Information Technology (Shenzhen) Ltd. in the Shenzhen Intermediate People’s Court in China. The lawsuit alleges infringement of Chinese patent ZL02123502.3. The complaint was received by Aerohive Networks, Inc. on October 9 and by its Chinese subsidiary on October 10. Extreme cannot estimate at this time the possible loss or range of loss that may result from this action, but Shenzhen Dunjun claims damages in the amount of RMB 10,000,000.

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 September 30, 2019, the Company has the outstanding indemnification claims described above.

Stockholders' Equity

3 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stockholders' Equity

11.	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, 2019, to extend the Restated Rights Plan through May 31, 2020, subject to ratification by a majority of the stockholders of the Company at the next annual shareholders meeting.

Employee Stock Purchase Plan

The 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 is pending ratification by the stockholders of the Company at the annual meeting of stockholders held on November 7, 2019.

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. There were no shares repurchased for the three months ended September 30, 2019 or 2018.

Employee Benefit Plans

3 Months Ended

Sep. 30, 2019

Share Based Compensation [Abstract]

Employee Benefit Plans

12.	Employee Benefit Plans

Shares reserved for issuance

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

	September 30, 2019		June 30, 2019
2013 Equity Incentive Plan shares available for grant		3,336		8,462
Employee stock options and awards outstanding		14,566		10,455
2014 Employee Stock Purchase Plan		8,862		10,085
Total shares reserved for issuance		26,764		29,002

Aerohive 2014 Equity Incentive Plan

Pursuant to the acquisition of Aerohive on August 9, 2019, the Company assumed the Aerohive 2014 Equity Incentive Plan (the "Aerohive Plan"). Stock awards outstanding under the Aerohive Plan were converted into awards for Extreme shares as of the Acquisition Date at a predetermined rate pursuant to the Merger Agreement. As of September 30, 2019, total awards to acquire 1,457,321 shares of Extreme common stock were outstanding under the Aerohive Plan. If a participant terminates employment prior to the vesting dates, the non-vested shares will be forfeited and retired. No future grants may be made from the Aerohive Plan.

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
	September 30, 2019		September 30, 2018
Cost of product revenue	$	250	$	178
Cost of service revenue		347		345
Research and development		2,435		2,342
Sales and marketing		3,719		2,359
General and administrative		2,083		1,601
Total share-based compensation expense	$	8,834	$	6,825

During the three months ended September 30, 2019, or 2018, 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. The Company does not estimate forfeitures, but accounts for them as incurred.

The following table summarizes stock award activity for the three months ended September 30, 2019 (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, 2019		7,736		$	7.67
Granted		5,485			6.83
Released		(1,486	)		6.82
Cancelled		(387	)		6.99
Non-vested stock awards outstanding at September 30, 2019		11,348		$	7.43	$	82,614
Vested and expected to vest at September 30, 2019		10,785		$	7.33	$	78,512

The following table summarizes stock option activity for the three months ended September 30, 2019 (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, 2019		2,719		$	4.61		3.26	$	5,070
Granted		637			6.70
Exercised		(119	)		4.23
Cancelled		(19	)		5.02
Options outstanding at September 30, 2019		3,218		$	5.03		3.86	$	7,235
Vested and expected to vest at September 30, 2019		3,218		$	5.03		3.85	$	7,235
Exercisable at September 30, 2019		1,801		$	3.85		1.88	$	6,179

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. 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 average fair value of the options granted was $6.70.

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 three months ended September 30, 2019, the Company approved the grant of 5,484,772 RSUs to employees and directors. 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. These RSUs included 566,038 RSUs to named executive officers and directors.

During the three months ended September 30, 2019, the 2019 and 2018 Performance Thresholds for outstanding performance awards were not achieved.

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 1,233,544 and 1,280,708 shares issued under the ESPP during the three months ended September 30, 2019 and 2018, 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
	Three Months Ended
	September 30, 2019			September 30, 2018
Expected life	0.5 years			0.5 years
Risk-free interest rate		1.85	%		2.20	%
Volatility		43	%		63	%
Dividend yield		—	%		—	%

The weighted-average fair value of shares granted under the ESPP during the three months ended September 30, 2019 and 2018 was $2.02 and $2.73, respectively.

Information about Segments and Geographic Areas

3 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Information about Segments and Geographic Areas

13.	Information about Segments and 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	September 30, 2019		June 30, 2019
Americas	$	231,094	$	136,035
EMEA		31,286		28,744
APAC		21,863		11,529
Total long-lived assets	$	284,243	$	176,308

Restructuring Charges, Net of Reversals and Impairment

3 Months Ended

Sep. 30, 2019

Restructuring And Related Activities [Abstract]

Restructuring Charges, Net of Reversals and Impairment

14.	Restructuring Charges, net of reversals and impairment

Restructuring liabilities at September 30, 2019 of $2.1 million relate to severance and benefits obligations and are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets.

The Company recorded $6.1 million of restructuring charges, net of reversals and impairment during the three months ended September 30, 2019, including charges of $3.9 million of impairment of right-of-use-assets related to facilities which the Company has exited and $2.2 million related to employee severance and benefit expenses.

During the first quarter of fiscal 2020, the Company continued its initiative to realign its operations by exiting a floor of its San Ignacio building in South San Jose California and consolidating its workforce. Also, the Company exited additional space in its Salem New Hampshire facility which includes general office and lab space. The Company has the intent and ability to sub-lease these facilities which it has ceased using and as such has considered estimated future sub-lease income based on its existing leases agreement, as well as the local real estate market conditions in measuring the amount of asset impairment. The Company also factored into its estimate the time for a sub-lease tenant to enter into an agreement and complete any improvements.

The Company continued its reduction-in-force actions begun in the fourth quarter of fiscal 2019 and recorded additional severance and benefits charges of $2.2 million during the period.

Cash payments of $3.6 million were paid during the three months ended September 30, 2019. Certain amounts have been reclassified from restructuring liabilities and have been recorded as a reduction to operating lease ROU assets as of July 1, 2019.

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

	Excess Facilities			Severance Benefits			Total

Balance as of June 30, 2019	$	1,764		$	3,559		$	5,323
Period charges		3,951			2,595			6,546
Period reversals		—			(409	)		(409	)
Reclassification to reduce operating lease assets		(5,715	)		—			(5,715	)
Period payments		—			(3,608	)		(3,608	)
Balance as of September 30, 2019	$	—		$	2,137		$	2,137

Income Taxes

3 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

15.	Income Taxes

For the three months ended September 30, 2019 and 2018, the Company recorded an income tax provision of $1.6 million and $1.4 million, respectively.

The income tax provisions for the three months ended September 30, 2019 and 2018, consisted of (1) taxes on the income of the Company’s foreign subsidiaries, (2) foreign withholding taxes (3) 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, and (4) state taxes in jurisdictions where the Company has no remaining state Net Operating Losses (“NOLs”). The income tax provisions for both fiscal years were calculated based on the actual results of operations for the three months ended September 30, 2019 and 2018, respectively and therefore may not reflect the annual effective tax rate.

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 U.S. 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 deferred tax assets of a newly established wholly owned Irish subsidiary as well as a portion of the deferred tax assets in Ireland. These 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.

On August 9, 2019, the Company completed its acquisition of Aerohive. This acquisition will be treated as a non-taxable stock acquisition and therefore Extreme Networks will have carryover tax basis in the assets and liabilities acquired.

The Company had $25.5 million of unrecognized tax benefits as of September 30, 2019. The future impact of the unrecognized tax benefit of $25.1 million, if recognized, would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance. The remaining $0.4 million would affect the effective tax rate. 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

3 Months Ended

Sep. 30, 2019

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 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
	September 30, 2019			September 30, 2018
Net loss	$	(37,738	)	$	(9,065	)

Weighted-average shares used in per share calculation - basic and diluted		120,226			117,368

Net loss per share - basic and diluted	$	(0.31	)	$	(0.08	)

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
	September 30, 2019		September 30, 2018
Options to purchase common stock		2,898		989
Restricted stock units		9,305		1,913
Employee Stock Purchase Plan shares		750		—
Total shares excluded		12,953		2,902

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Sep. 30, 2019

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
	September 30, 2019						September 30, 2018
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	69,978	$	62,345	$	132,323	$	56,742	$	59,936	$	116,678
Other		4,015		4,999		9,014		4,493		5,524		10,017
Total Americas		73,993		67,344		141,337		61,235		65,460		126,695
EMEA		59,129		29,634		88,763		61,331		30,838		92,169
APAC		9,113		16,293		25,406		2,349		18,673		21,022
Total net revenues	$	142,235	$	113,271	$	255,506	$	124,915	$	114,971	$	239,886

Cash, Cash Equivalents, and Short-term Investments

The following is a summary of cash, cash equivalents, and short-term investments (in thousands):

	September 30, 2019		June 30, 2019
Cash	$	122,722	$	169,607
Cash equivalents		8,647		—
Short-term investments (consisting of available-for-sale securities)		29,705		—
Total cash, cash equivalents, and short-term investments	$	161,074	$	169,607

Inventories

Inventories consist of the following (in thousands):

	September 30, 2019		June 30, 2019
Finished goods	$	67,268	$	49,492
Raw materials		15,126		14,097
Total Inventories	$	82,394	$	63,589

Property and Equipment, Net

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

	September 30, 2019			June 30, 2019
Computers and equipment	$	73,817		$	72,309
Purchased software		30,709			29,126
Office equipment, furniture and fixtures		11,833			10,815
Leasehold improvements		51,613			51,245
Total property and equipment		167,972			163,495
Less: accumulated depreciation and amortization		(97,359	)		(89,941	)
Property and equipment, net	$	70,613		$	73,554

Deferred Revenue

Guarantees and Product Warranties

The following table summarizes the activity related to the Company’s product warranty liability during the three months ended September 30, 2019 and 2018 (in thousands):

	Three Months Ended
	September 30, 2019			September 30, 2018
Balance beginning of period	$	14,779		$	12,807
Warranties assumed due to acquisitions		570			—
New warranties issued		5,922			3,722
Warranty expenditures		(5,283	)		(3,928	)
Balance end of period	$	15,988		$	12,601

Other Long-term Liabilities

Other long-term liabilities

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

	September 30, 2019		June 30, 2019
Acquisition related deferred payments, less current portion	$	8,675	$	9,604
Contingent consideration obligations, less current portion		1,667		2,688
Other contractual obligations, less current portion		24,406		26,261
Other		3,171		15,597
Total other long-term liabilities	$	37,919	$	54,150

Concentrations

Earnings Per Share

Revenues (Tables)

3 Months Ended

Sep. 30, 2019

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
	September 30, 2019						September 30, 2018
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	69,978	$	62,345	$	132,323	$	56,742	$	59,936	$	116,678
Other		4,015		4,999		9,014		4,493		5,524		10,017
Total Americas		73,993		67,344		141,337		61,235		65,460		126,695
EMEA		59,129		29,634		88,763		61,331		30,838		92,169
APAC		9,113		16,293		25,406		2,349		18,673		21,022
Total net revenues	$	142,235	$	113,271	$	255,506	$	124,915	$	114,971	$	239,886

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
	September 30, 2019	September 30, 2018
Tech Data Corporation	16%	17%
Jenne Corporation	14%	12%
Westcon Group Inc.	10%	13%

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


	September 30, 2019			June 30, 2019
Tech Data Corporation		21	%		12	%
Jenne Corporation		19	%		35	%
Westcon Group Inc.		12	%	*

Business Combination (Tables)

3 Months Ended

Sep. 30, 2019

Summary of Unaudited Pro Forma Financial Information

	Three Months Ended
	September 30, 2019			September 30, 2018
Net revenues	$	267,678		$	279,234
Net loss	$	(24,084	)	$	(39,085	)
Net loss per share - basic and diluted	$	(0.20	)	$	(0.33	)
Shares used in per share calculation - basic and diluted		120,226			117,368

Aerohive Networks, Inc.

Components of Aggregate Estimated Purchase Consideration

The components of aggregate estimated purchase consideration are as follows (in thousands):

Estimated purchase consideration	August 9, 2019
Cash paid to acquire outstanding shares	$	263,616
Replacement of stock-based awards		3,530
Aggregate estimated purchase consideration	$	267,146

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

The preliminary purchase price allocation is set forth in the table below and reflects estimated fair values (in thousands).

	Preliminary Allocation as of August 9, 2019
Cash and cash equivalents	$	44,158
Short-term investments		45,148
Accounts receivable, net		11,753
Inventories		16,698
Prepaid expenses and other current assets		3,980
Property and equipment		2,185
Operating lease right-of-use assets		6,336
Other assets		2,195
Debt		(20,000	)
Accounts payable		(9,737	)
Accrued compensation and benefits		(7,129	)
Accrued warranty		(570	)
Other accrued liabilities		(1,960	)
Operating lease liabilities		(4,752	)
Deferred revenue		(68,415	)
Other liabilities		(408	)
Net tangible assets		19,482

Identifiable intangible assets		53,400
Goodwill		194,264
Total intangible assets acquired		247,664

Total net assets acquired	$	267,146

Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition

The following table presents details of the identifiable intangible assets acquired as part of the acquisition (dollars in thousands):

Intangible Assets	Estimated Useful Life (in years)		Amount
Developed technology		4	$	40,000
Backlog		1		400
Customer relationships		7		11,400
Trade names		1.5		1,600
Total identifiable intangible assets			$	53,400

Balance Sheet Accounts (Tables)

3 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Cash, Cash Equivalents and Short-term Investments

The following is a summary of cash, cash equivalents, and short-term investments (in thousands):

	September 30, 2019		June 30, 2019
Cash	$	122,722	$	169,607
Cash equivalents		8,647		—
Short-term investments (consisting of available-for-sale securities)		29,705		—
Total cash, cash equivalents, and short-term investments	$	161,074	$	169,607

Components of Inventories

Inventories consist of the following (in thousands):

	September 30, 2019		June 30, 2019
Finished goods	$	67,268	$	49,492
Raw materials		15,126		14,097
Total Inventories	$	82,394	$	63,589

Components of Property and Equipment

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

	September 30, 2019			June 30, 2019
Computers and equipment	$	73,817		$	72,309
Purchased software		30,709			29,126
Office equipment, furniture and fixtures		11,833			10,815
Leasehold improvements		51,613			51,245
Total property and equipment		167,972			163,495
Less: accumulated depreciation and amortization		(97,359	)		(89,941	)
Property and equipment, net	$	70,613		$	73,554

Summary of Product Warranty Liability Activity

The following table summarizes the activity related to the Company’s product warranty liability during the three months ended September 30, 2019 and 2018 (in thousands):

	Three Months Ended
	September 30, 2019			September 30, 2018
Balance beginning of period	$	14,779		$	12,807
Warranties assumed due to acquisitions		570			—
New warranties issued		5,922			3,722
Warranty expenditures		(5,283	)		(3,928	)
Balance end of period	$	15,988		$	12,601

Summary of Long-term Liabilities

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

	September 30, 2019		June 30, 2019
Acquisition related deferred payments, less current portion	$	8,675	$	9,604
Contingent consideration obligations, less current portion		1,667		2,688
Other contractual obligations, less current portion		24,406		26,261
Other		3,171		15,597
Total other long-term liabilities	$	37,919	$	54,150

Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2019

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):

September 30, 2019	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	8,647	$	—	$	—	$	8,647
U.S. Treasuries		—		9,329		—		9,329
Corporate debt securities		—		12,408		—		12,408
Commercial Paper		—		7,968		—		7,968
Total assets measured at fair value	$	8,647	$	29,705	$	—	$	38,352
Liabilities
Acquisition-related contingent consideration obligations	$	—	$	—	$	5,693	$	5,693
Total liabilities measured at fair value	$	—	$	—	$	5,693	$	5,693

Schedule of Change in Acquisition-related Contingent Consideration Obligations

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

	Three Months Ended
	September 30, 2019
Beginning balance		6,298
Payments		(635	)
Accretion on discount		30
Ending balance	$	5,693

Goodwill and Intangible Assets (Tables)

3 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Goodwill

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

	September 30, 2019
Balance as of June 30, 2019	$	138,577
Additions due to acquisition		194,264
Balance at end of period	$	332,841

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
September 30, 2019
Developed technology	3.0 years	$	157,000	$	83,823	$	73,177
Customer relationships	3.7 years		63,039		45,544		17,495
Backlog	— years		400		400		—
Trade names	1.6 years		10,700		6,061		4,639
License agreements	5.4 years		2,445		1,729		716
Other intangibles	0.3 years		1,382		1,322		60
Total intangibles, net		$	234,966	$	138,879	$	96,087

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
June 30, 2019
Developed technology	2.4 years	$	117,000	$	77,449	$	39,551
Customer relationships	2.0 years		51,639		44,410		7,229
Trade names	2.4 years		9,100		5,647		3,453
License agreements	5.4 years		2,445		1,661		784
Other intangibles	0.6 years		1,382		1,287		95
Total intangibles, net		$	181,566	$	130,454	$	51,112

Summary of Amortization Expense of Intangibles

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

	Three Months Ended
	September 30, 2019		September 30, 2018
Amortization in “Cost of revenues: Product”	$	6,495	$	4,932
Amortization of intangibles in "Operations"		1,930		2,141
Total amortization	$	8,425	$	7,073

Debt (Tables)

3 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Components of Debt

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

	September 30, 2019			June 30, 2019
Current portion of long-term debt:
Term Loan	$	19,000		$	9,500
Less: unamortized debt issuance costs		(2,477	)		(489	)
Current portion of long-term debt	$	16,523		$	9,011

Long-term debt, less current portion:
Term Loan	$	361,000		$	171,000
Revolving Facility		—			—
Less: unamortized debt issuance costs		(7,594	)		(1,261	)
Total long-term debt, less current portion		353,406			169,739
Total debt	$	369,929		$	178,750

Leases (Tables)

3 Months Ended

Sep. 30, 2019

Leases [Abstract]

Summary of Activity and Other Information Relating to Operating Leases

Activity and other information relating to operating leases is as follows (in thousands except for lease term and discount rate):

	Three Months Ended September 30, 2019
Operating lease costs	$	5,143
Cash paid for amounts included in the measurement of operating liabilities		5,507
ROU assets obtained for new lease obligations		64
ROU assets obtained from Aerohive business combination		6,336
Weighted average remaining lease term (in years)		4.8
Weighted Average Discount Rate		4.5	%

Schedule of Maturities of Operating Lease Liabilities

The maturities of the Company’s operating lease liabilities as of September 30, 2019 by fiscal year are as follows:

	Operating Leases (in thousands)
2020 (remaining nine months)	$	15,749
2021		19,941
2022		19,142
2023		15,516
2024		6,128
Thereafter		12,182
Total future minimum lease payments		88,658
Less amount representing interest		9,352
Total operating lease liabilities	$	79,306
Operating lease liabilities, current	$	17,767
Operating lease liabilities, non-current	$	61,539

Schedule of Minimum Future Rentals on Non-Cancellable Operating Leases

As of June 30, 2019, the minimum future rentals on non-cancellable operating leases by fiscal year, based on the previous accounting standard, were as follows:

	Operating Leases (in thousands)
2020	$	22,733
2021		21,174
2022		20,680
2023		17,828
2024		5,976
Thereafter		16,287
Total lease payments	$	104,678

Employee Benefit Plans (Tables)

3 Months Ended

Sep. 30, 2019

Share Based Compensation [Abstract]

Shares Reserved for Issuance

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

	September 30, 2019		June 30, 2019
2013 Equity Incentive Plan shares available for grant		3,336		8,462
Employee stock options and awards outstanding		14,566		10,455
2014 Employee Stock Purchase Plan		8,862		10,085
Total shares reserved for issuance		26,764		29,002

Schedule of Recognized Share-based Compensation Expense

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
	September 30, 2019		September 30, 2018
Cost of product revenue	$	250	$	178
Cost of service revenue		347		345
Research and development		2,435		2,342
Sales and marketing		3,719		2,359
General and administrative		2,083		1,601
Total share-based compensation expense	$	8,834	$	6,825

Summary of Stock Award Activity

The following table summarizes stock award activity for the three months ended September 30, 2019 (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, 2019		7,736		$	7.67
Granted		5,485			6.83
Released		(1,486	)		6.82
Cancelled		(387	)		6.99
Non-vested stock awards outstanding at September 30, 2019		11,348		$	7.43	$	82,614
Vested and expected to vest at September 30, 2019		10,785		$	7.33	$	78,512

Summary of Stock Option Activity

The following table summarizes stock option activity for the three months ended September 30, 2019 (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, 2019		2,719		$	4.61		3.26	$	5,070
Granted		637			6.70
Exercised		(119	)		4.23
Cancelled		(19	)		5.02
Options outstanding at September 30, 2019		3,218		$	5.03		3.86	$	7,235
Vested and expected to vest at September 30, 2019		3,218		$	5.03		3.85	$	7,235
Exercisable at September 30, 2019		1,801		$	3.85		1.88	$	6,179

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
	Three Months Ended
	September 30, 2019			September 30, 2018
Expected life	0.5 years			0.5 years
Risk-free interest rate		1.85	%		2.20	%
Volatility		43	%		63	%
Dividend yield		—	%		—	%

Information about Segments and Geographic Areas (Tables)

3 Months Ended

Sep. 30, 2019

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	September 30, 2019		June 30, 2019
Americas	$	231,094	$	136,035
EMEA		31,286		28,744
APAC		21,863		11,529
Total long-lived assets	$	284,243	$	176,308

Restructuring Charges, Net of Reversals (Tables)

3 Months Ended

Sep. 30, 2019

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, 2019	$	1,764		$	3,559		$	5,323
Period charges		3,951			2,595			6,546
Period reversals		—			(409	)		(409	)
Reclassification to reduce operating lease assets		(5,715	)		—			(5,715	)
Period payments		—			(3,608	)		(3,608	)
Balance as of September 30, 2019	$	—		$	2,137		$	2,137

Net Loss Per Share (Tables)

3 Months Ended

Sep. 30, 2019

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
	September 30, 2019			September 30, 2018
Net loss	$	(37,738	)	$	(9,065	)

Weighted-average shares used in per share calculation - basic and diluted		120,226			117,368

Net loss per share - basic and diluted	$	(0.31	)	$	(0.08	)

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
	September 30, 2019		September 30, 2018
Options to purchase common stock		2,898		989
Restricted stock units		9,305		1,913
Employee Stock Purchase Plan shares		750		—
Total shares excluded		12,953		2,902

Revenues (Narratives) (Details)	3 Months Ended
Revenues (Narratives) (Details)	Sep. 30, 2019 USD ($) Distribution_Channels	Sep. 30, 2018 USD ($)	Jun. 30, 2018 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	$ 273,700,000
Revenue recognized for deferred revenue balance	53,800,000	$ 50,600,000
Lease revenue	$ 3,700,000	4,000,000.0
Commission Fees
Disaggregation Of Revenue [Line Items]
Revenue, practical expedient, incremental cost of obtaining contract [true false]	true
Contract costs capitalized, balances amount	$ 7,600,000		$ 4,900,000
Contract costs capitalized, amortization period	3 years
Contract costs capitalized, amortization method	straight-line basis
Contract costs capitalized, amortization expense	$ 2,700,000	700,000
Contract costs capitalized, impairment loss	$ 0	$ 0

Revenues (Narratives) (Details 1)	3 Months Ended
Revenues (Narratives) (Details 1)	Sep. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01
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	58.00%
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	1 year
Percentage of remaining performance obligations expected to recognize	24.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-07-01
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, description	thereafter
Percentage of remaining performance obligations expected to recognize	18.00%

Revenues (Schedule of Revenue Disaggregated by Sales Channel and Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 255,506	$ 239,886
Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	142,235	124,915
Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	113,271	114,971
United States
Disaggregation Of Revenue [Line Items]
Net Revenues	132,323	116,678
United States \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	69,978	56,742
United States \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	62,345	59,936
Other Americas
Disaggregation Of Revenue [Line Items]
Net Revenues	9,014	10,017
Other Americas \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	4,015	4,493
Other Americas \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	4,999	5,524
Total Americas
Disaggregation Of Revenue [Line Items]
Net Revenues	141,337	126,695
Total Americas \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	73,993	61,235
Total Americas \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	67,344	65,460
EMEA
Disaggregation Of Revenue [Line Items]
Net Revenues	88,763	92,169
EMEA \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	59,129	61,331
EMEA \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	29,634	30,838
APAC
Disaggregation Of Revenue [Line Items]
Net Revenues	25,406	21,022
APAC \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	9,113	2,349
APAC \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 16,293	$ 18,673

Revenues (Schedule of Major Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance) (Details) - Customer Concentration Risk	3 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Westcon Group Inc. \| Net Revenue
Concentration Risk [Line Items]
Concentration risk (percent)	10.00%	13.00%
Westcon Group Inc. \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (percent)	12.00%
Jenne Corporation \| Net Revenue
Concentration Risk [Line Items]
Concentration risk (percent)	14.00%	12.00%
Jenne Corporation \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (percent)	19.00%		35.00%
Tech Data Corporation \| Net Revenue
Concentration Risk [Line Items]
Concentration risk (percent)	16.00%	17.00%
Tech Data Corporation \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (percent)	21.00%		12.00%

Business Combination (Narratives) (Details) - USD ($) $ in Thousands		3 Months Ended
	Aug. 09, 2019	Sep. 30, 2019	Sep. 30, 2018
Business Acquisition [Line Items]
Acquisition and integration related expenses		$ 15,925	$ 2,546
Aerohive Networks, Inc.
Business Acquisition [Line Items]
Business acquisition, cash consideration	$ 267,146
Business acquisition, date of acquisition	Aug. 09, 2019
Revenue		25,400
Acquisition and integration related expenses		15,900
Compensation charge associated with acquisition		$ 6,800

Business Combination (Summary of Preliminary Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Aug. 09, 2019	Jun. 30, 2019
Business Acquisition [Line Items]
Goodwill	$ 332,841		$ 138,577
Aerohive Networks, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents		$ 44,158
Short-term investments		45,148
Accounts receivable, net		11,753
Inventories		16,698
Prepaid expenses and other current assets		3,980
Property and equipment		2,185
Operating lease right-of-use assets		6,336
Other assets		2,195
Debt		(20,000)
Accounts payable		(9,737)
Accrued compensation and benefits		(7,129)
Accrued warranty		(570)
Other accrued liabilities		(1,960)
Operating lease liabilities		(4,752)
Deferred revenue		(68,415)
Other liabilities		(408)
Net tangible assets		19,482
Identifiable intangible assets		53,400
Goodwill		194,264
Total intangible assets acquired		247,664
Total net assets acquired		$ 267,146

Business Combination (Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition) (Details) - Aerohive Networks, Inc. $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 53,400
Developed technology
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 40,000
Estimated Useful Life (in years)	4 years
Backlog
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 400
Estimated Useful Life (in years)	1 year
Customer relationships
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 11,400
Estimated Useful Life (in years)	7 years
Trade names
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 1,600
Estimated Useful Life (in years)	1 year 6 months

Business Combinations (Summary of Unaudited Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Business Acquisition Pro Forma Information [Abstract]
Net revenues	$ 267,678	$ 279,234
Net loss	$ (24,084)	$ (39,085)
Net loss per share - basic and diluted	$ (0.20)	$ (0.33)
Shares used in per share calculation - basic and diluted	120,226	117,368

Balance Sheet Accounts (Summary of Cash, Cash Equivalents and Short-term Investments) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Cash	$ 122,722	$ 169,607
Cash equivalents	8,647
Short term investments	29,705
Total cash, cash equivalents, and short-term investments	$ 161,074	$ 169,607

Balance Sheet Accounts (Components of Inventories) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Finished goods	$ 67,268	$ 49,492
Raw materials	15,126	14,097
Total Inventories	$ 82,394	$ 63,589

Balance Sheet Accounts (Components of Property and Equipment) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 167,972		$ 163,495
Less: accumulated depreciation and amortization	(97,359)		(89,941)
Property and equipment, net	70,613	$ 73,554	73,554
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	73,817		72,309
Purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	30,709		29,126
Office equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,833		10,815
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 51,613		$ 51,245

Balance Sheet Accounts (Summary of Product Warranty Liability Activity) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance beginning of period	$ 14,779	$ 12,807
Warranties assumed due to acquisitions	570
New warranties issued	5,922	3,722
Warranty expenditures	(5,283)	(3,928)
Balance end of period	$ 15,988	$ 12,601

Fair Value Measurements (Schedule of Fair Value for Financial Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Level 2
Liabilities
Acquisition-related contingent consideration obligations		$ 6,300
Recurring
Assets
Total assets measured at fair value	$ 38,352
Liabilities
Acquisition-related contingent consideration obligations	5,693
Total liabilities measured at fair value	5,693
Recurring \| Money market funds
Assets
Investments	8,647
Recurring \| U.S. Treasuries
Assets
Investments	9,329
Recurring \| Corporate Debt Securities [Member]
Assets
Investments	12,408
Recurring \| Commercial Paper
Assets
Investments	7,968
Recurring \| Level 1
Assets
Total assets measured at fair value	8,647
Recurring \| Level 1 \| Money market funds
Assets
Investments	8,647
Recurring \| Level 2
Assets
Total assets measured at fair value	29,705
Recurring \| Level 2 \| U.S. Treasuries
Assets
Investments	9,329
Recurring \| Level 2 \| Corporate Debt Securities [Member]
Assets
Investments	12,408
Recurring \| Level 2 \| Commercial Paper
Assets
Investments	7,968
Recurring \| Level 3
Liabilities
Acquisition-related contingent consideration obligations	5,693
Total liabilities measured at fair value	$ 5,693

Fair Value Measurements (Narratives) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Level 2 Assets and Liabilities
Assets
Transfers of assets between Level 1 and Level 2	$ 0		$ 0
Transfers of liabilities between Level 1 and Level 2	0		0
Long-term debt, fair value	380,000,000.0		180,500,000
Acquisition-related contingent consideration obligations			$ 6,300,000
Level 3 Assets and Liabilities
Assets
Transfers of assets between Level 2 and Level 3	0	$ 0
Transfers of liabilities between Level 2 and Level 3	0	0
Intangible asset and goodwill impairment	$ 0	$ 0

Goodwill and Intangible Assets (Components of Gross and Net Intangible Asset Balances) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 234,966	$ 181,566
Accumulated Amortization	138,879	130,454
Net Carrying Amount	$ 96,087	$ 51,112
Developed technology
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	3 years	2 years 4 months 24 days
Gross Carrying Amount	$ 157,000	$ 117,000
Accumulated Amortization	83,823	77,449
Net Carrying Amount	$ 73,177	$ 39,551
Customer relationships
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	3 years 8 months 12 days	2 years
Gross Carrying Amount	$ 63,039	$ 51,639
Accumulated Amortization	45,544	44,410
Net Carrying Amount	$ 17,495	$ 7,229
Backlogs
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	0 years
Gross Carrying Amount	$ 400
Accumulated Amortization	$ 400
Trade names
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	1 year 7 months 6 days	2 years 4 months 24 days
Gross Carrying Amount	$ 10,700	$ 9,100
Accumulated Amortization	6,061	5,647
Net Carrying Amount	$ 4,639	$ 3,453
License agreements
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	5 years 4 months 24 days	5 years 4 months 24 days
Gross Carrying Amount	$ 2,445	$ 2,445
Accumulated Amortization	1,729	1,661
Net Carrying Amount	$ 716	$ 784
Other intangibles
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	3 months 18 days	7 months 6 days
Gross Carrying Amount	$ 1,382	$ 1,382
Accumulated Amortization	1,322	1,287
Net Carrying Amount	$ 60	$ 95

Goodwill and Intangible Assets (Summary of Amortization Expense of Intangibles) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization in “Cost of revenues: Product”	$ 6,495	$ 4,932
Type Of Cost Good Or Service Extensible List	us-gaap:ProductMember	us-gaap:ProductMember
Amortization of intangibles in "Operations"	$ 1,930	$ 2,141
Total amortization	$ 8,425	$ 7,073

Debt (Components of Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Line Of Credit Facility [Line Items]
Less: unamortized debt issuance costs	$ (2,477)	$ (489)
Current portion of long-term debt	16,523	9,011
Less: unamortized debt issuance costs	(7,594)	(1,261)
Long-term debt, less current portion	353,406	169,739
Total debt	369,929	178,750
Term Loan
Line Of Credit Facility [Line Items]
Current portion of long-term debt	19,000	9,500
Long-term debt, less current portion	$ 361,000	$ 171,000

Debt (Narratives) (Details) - USD ($)		3 Months Ended
Debt (Narratives) (Details) - USD ($)	Aug. 09, 2019	Sep. 30, 2019	Sep. 30, 2018
Line Of Credit Facility [Line Items]
Outstanding letters of credit		$ 4,400,000
Interest Expense
Line Of Credit Facility [Line Items]
Amortization of deferred financing costs		500,000	$ 200,000
2019 Credit Agreement
Line Of Credit Facility [Line Items]
Amortization of deferred financing costs		1,600,000
Deferred financing cost		$ 10,500,000
Debt instrument interest rate		5.47%
2019 Credit Agreement \| Term Loan
Line Of Credit Facility [Line Items]
Credit Facility, term	5 years
Borrowing capacity from Credit Agreement	$ 380,000,000
2019 Credit Agreement \| Revolving Facility
Line Of Credit Facility [Line Items]
Credit Facility, term	5 years
Borrowing capacity from Credit Agreement	$ 75,000,000
Borrowings available under facility		$ 70,600,000
Initial Term Loan \| Applicable Margin for Eurodollar
Line Of Credit Facility [Line Items]
Base rate	0.00%
Initial Term Loan \| Revolving Facility
Line Of Credit Facility [Line Items]
Commitment fee	0.35%
Maximum \| 2019 Credit Agreement
Line Of Credit Facility [Line Items]
Additional incremental loan facility that may be requested	$ 100,000,000
Maximum \| Initial Term Loan \| Applicable Margin for Eurodollar
Line Of Credit Facility [Line Items]
Borrowings, interest rate	3.50%
Maximum \| Initial Term Loan \| Applicable Margin for Base Rate
Line Of Credit Facility [Line Items]
Borrowings, interest rate	2.50%
Maximum \| Initial Term Loan \| Revolving Facility
Line Of Credit Facility [Line Items]
Commitment fee	0.40%
Minimum \| Initial Term Loan \| Applicable Margin for Eurodollar
Line Of Credit Facility [Line Items]
Borrowings, interest rate	1.25%
Minimum \| Initial Term Loan \| Applicable Margin for Base Rate
Line Of Credit Facility [Line Items]
Borrowings, interest rate	0.25%
Minimum \| Initial Term Loan \| Revolving Facility
Line Of Credit Facility [Line Items]
Commitment fee	0.25%

Leases (Narratives) (Details) - USD ($) $ in Millions	3 Months Ended
Leases (Narratives) (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018
Lessee Lease Description [Line Items]
Lease option to extend, description	Some lease terms include one or more options to renew.
Lease, existence of option to extend	true
Sublease income	$ 0.6
Product Revenues	$ 3.7	$ 4.0
Minimum
Lessee Lease Description [Line Items]
Sublease term	4 years
Maximum
Lessee Lease Description [Line Items]
Sublease term	6 years
Facilities \| Minimum
Lessee Lease Description [Line Items]
Lease term	1 year
Facilities \| Maximum
Lessee Lease Description [Line Items]
Lease term	9 years
Equipment \| Minimum
Lessee Lease Description [Line Items]
Lease term	1 year
Equipment \| Maximum
Lessee Lease Description [Line Items]
Lease term	6 years
Vehicles \| Minimum
Lessee Lease Description [Line Items]
Lease term	1 year
Vehicles \| Maximum
Lessee Lease Description [Line Items]
Lease term	5 years
Hardware
Lessee Lease Description [Line Items]
Lease term	3 years
Lease termination rights period	60 days
Hardware \| Product
Lessee Lease Description [Line Items]
Product Revenues	$ 3.7	$ 4.0

Leases (Summary of Activity and Other Information Relating to Operating Leases) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)
Leases [Abstract]
Operating lease costs	$ 5,143
Cash paid for amounts included in the measurement of operating liabilities	5,507
ROU assets obtained for new lease obligations	64
ROU assets obtained from Aerohive business combination	$ 6,336
Weighted average remaining lease term (in years)	4 years 9 months 18 days
Weighted Average Discount Rate	4.50%

Leases (Schedule of Maturities of Operating Lease Liabilities) (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Operating Leases
2020 (remaining nine months)	$ 15,749
2021	19,941
2022	19,142
2023	15,516
2024	6,128
Thereafter	12,182
Total future minimum lease payments	88,658
Less amount representing interest	9,352
Total operating lease liabilities	79,306
Operating lease liabilities, current	17,767
Operating lease liabilities, non-current	$ 61,539

Leases (Schedule of Minimum Future Rentals on Non-Cancellable Operating Leases) (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Operating Leases
2020	$ 22,733
2021	21,174
2022	20,680
2023	17,828
2024	5,976
Thereafter	16,287
Total lease payments	$ 104,678

Commitments and Contingencies (Narratives) (Details) - 3 months ended Sep. 30, 2019 ¥ in Thousands, R$ in Millions	CNY (¥)	USD ($)	BRL (R$)
Shenzhen Dunjun Technology Ltd. v. Aerohive Networks (Hangzhou) Ltd
Purchase Commitment Excluding Longterm Commitment [Line Items]
Damages claims amount \| ¥	¥ 10,000,000
Foreign \| Secretariat of the Federal Revenue Bureau of Brazil
Purchase Commitment Excluding Longterm Commitment [Line Items]
Value of tax credits disallowed		$ 800,000	R$ 3.4
Penalties, court costs, attorneys' fees, and accrued interest		4,800,000	20.0
Tax liability related to the ICMS Tax Assessments, accrued		2,200,000	R$ 9.4
Non-cancelable Inventory and Other Services Purchase Commitments
Purchase Commitment Excluding Longterm Commitment [Line Items]
Purchase commitments \| $		$ 50,600,000

Stockholders' Equity (Narratives) (Details) - USD ($)		3 Months Ended
Stockholders' Equity (Narratives) (Details) - USD ($)	Nov. 07, 2019	Sep. 30, 2019	Sep. 30, 2018	Nov. 02, 2018
Class Of Stock [Line Items]
Stock repurchase, authorized amount				$ 60,000,000.0
Maximum amount of common stock may be repurchased in calendar year		$ 35,000,000.0
Stock repurchased, shares		0	0
2014 Employee Stock Purchase Plan \| Subsequent event [Member]
Class Of Stock [Line Items]
Increase in authorized shares for issuance	7,500,000

Employee Benefit Plans (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares outstanding for options and awards	3,218,000		2,719,000
Share-based compensation expense	$ 0	$ 0
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 6.70
Awards granted	5,485,000
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
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
Employees and Directors \| Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards granted	5,484,772
Executive Officers and Directors \| Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards granted	566,038
Aerohive 2014 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares outstanding for options and awards	1,457,321
2014 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average grant-date fair value of options granted (in dollars per share)	$ 2.02	$ 2.73
Shares issued under stock purchase plan	1,233,544	1,280,708

Employee Benefit Plans (Schedule of Recognized Share-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 8,834	$ 6,825
Cost of Product Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	250	178
Cost of Service Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	347	345
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	2,435	2,342
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	3,719	2,359
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,083	$ 1,601

Employee Benefit Plans (Summary of Stock Award Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares
Number of Shares
Non-vested stock awards outstanding at June 30, 2019 \| shares	7,736
Granted \| shares	5,485
Released \| shares	(1,486)
Cancelled \| shares	(387)
Non-vested stock awards outstanding at September 30, 2019 \| shares	11,348
Vested and expected to vest at September 30, 2019 \| shares	10,785
Weighted-Average Grant Date Fair Value
Non-vested stock awards outstanding at June 30, 2019 \| $ / shares	$ 7.67
Granted \| $ / shares	6.83
Released \| $ / shares	6.82
Cancelled \| $ / shares	6.99
Non-vested stock awards outstanding at September 30, 2019 \| $ / shares	7.43
Vested and expected to vest at September 30, 2019 \| $ / shares	$ 7.33
Aggregate Fair Market Value
Non-vested stock awards outstanding at September 30, 2019 \| $	$ 82,614
Vested and expected to vest at September 30, 2019 \| $	$ 78,512

Employee Benefit Plans (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Number of Shares
Options outstanding at June 30, 2019	2,719
Granted	637
Exercised	(119)
Cancelled	(19)
Options outstanding at September 30, 2019	3,218	2,719
Vested and expected to vest at September 30, 2019	3,218
Exercisable at September 30, 2019	1,801
Weighted-Average Exercise Price Per Share
Options outstanding at June 30, 2019	$ 4.61
Granted	6.70
Exercised	4.23
Cancelled	5.02
Options outstanding at September 30, 2019	5.03	$ 4.61
Vested and expected to vest at September 30, 2019	5.03
Exercisable at September 30, 2019	$ 3.85
Weighted-Average Remaining Contractual Term
Options outstanding	3 years 10 months 9 days	3 years 3 months 3 days
Vested and expected to vest at September 30, 2019	3 years 10 months 6 days
Exercisable at September 30, 2019	1 year 10 months 17 days
Aggregate Intrinsic Value
Options outstanding	$ 7,235	$ 5,070
Vested and expected to vest at September 30, 2019	7,235
Exercisable at September 30, 2019	$ 6,179

Employee Benefit Plans (Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards) (Details) - Employee Stock Purchase Plan	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
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	1.85%	2.20%
Volatility	43.00%	63.00%

Restructuring Charges, Net of Reversals and Impairment (Narratives) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018
Restructuring Cost And Reserve [Line Items]
Restructuring liabilities	$ 2,137	$ 5,323
Restructuring charges, net of reversals and impairment	6,137		$ 808
Severance and benefits charges	2,200
Cash payments	3,608
Reduction-in-force
Restructuring Cost And Reserve [Line Items]
Additional severance cost		$ 2,200
Cash payments	3,600
Non-Cancelable Lease Payments
Restructuring Cost And Reserve [Line Items]
Charges for changes to estimates for accrued lease costs	$ 3,900

Disclosure - Restructuring Charges, Net of Reversals and Impairment (Narratives) (Details) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)
Restructuring Cost And Reserve [Line Items]
Beginning balance	$ 5,323
Period charges	6,546
Period reversals	(409)
Reclassification to reduce operating lease assets	(5,715)
Period payments	(3,608)
Ending balance	2,137
Excess Facilities
Restructuring Cost And Reserve [Line Items]
Beginning balance	1,764
Period charges	3,951
Reclassification to reduce operating lease assets	(5,715)
Severance Benefits
Restructuring Cost And Reserve [Line Items]
Beginning balance	3,559
Period charges	2,595
Period reversals	(409)
Period payments	(3,608)
Ending balance	$ 2,137

Income Taxes (Narratives) (Details) - USD ($)	3 Months Ended
Income Taxes (Narratives) (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Operating Loss Carryforwards [Line Items]
Income tax provision	$ 1,595,000	$ 1,402,000
Remaining state net operating loss	0	0
Unrecognized tax benefits	25,500,000
Unrecognized tax benefit future impact if recognized	25,100,000
Unrecognized tax benefits that would impact effective tax rate	$ 400,000
State
Operating Loss Carryforwards [Line Items]
Income tax examination, years under examination	2014 2015 2016
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
	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share Basic And Diluted [Abstract]
Net loss	$ (37,738)	$ (9,065)
Weighted-average shares used in per share calculation - basic and diluted	120,226	117,368
Net loss per share - basic and diluted	$ (0.31)	$ (0.08)

- Definition

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

+ References + Details

Summary of Significant Accounting Policies (Narratives) (Details)	Sep. 30, 2019 USD ($)
Significant Accounting Policies [Line Items]
Operating lease, right-of-use asset	$ 62,576,000
Operating lease, liability	79,306,000
ASU 2016-02
Significant Accounting Policies [Line Items]
Operating lease, right-of-use asset	64,600
Operating lease, liability	$ 79,500

Balance Sheet Accounts (Narratives) (Details)	3 Months Ended
Balance Sheet Accounts (Narratives) (Details)	Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Standard hardware warranty period (in months)	1 year
Standard software warranty period (in days)	90 days
Maximum investment in one obligor or maker (percent)	10.00%

Information about Segments and Geographic Areas (Narratives) (Details)	3 Months Ended
	Sep. 30, 2019 Segment Geographic_Area
Segment Reporting [Abstract]
Number of operating segments \| Segment	1
Number of geographic regions \| Geographic_Area	3

Business Combination (Components of Aggregate Estimated Purchase Consideration) (Details) - Aerohive Networks, Inc. $ in Thousands	Aug. 09, 2019 USD ($)
Business Acquisition [Line Items]
Cash paid to acquire outstanding shares	$ 263,616
Replacement of stock-based awards	3,530
Aggregate estimated purchase consideration	$ 267,146

Balance Sheet Accounts (Summary of Long-term Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Acquisition related deferred payments, less current portion	$ 8,675		$ 9,604
Contingent consideration obligations, less current portion	1,667		2,688
Other contractual obligations, less current portion	24,406		26,261
Other	3,171		15,597
Total other long-term liabilities	$ 37,919	$ 54,150	$ 54,150

Fair Value Measurements (Schedule of Change in Acquisition-related Contingent Consideration Obligations) (Details) - Level 3 Assets and Liabilities $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)
Business Acquisition Contingent Consideration [Line Items]
Beginning balance	$ 6,298
Payments	(635)
Accretion on discount	30
Ending balance	$ 5,693

Goodwill and Intangible Assets (Summary of Goodwill) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
Balance as of June 30, 2019	$ 138,577
Additions due to acquisition	194,264
Balance at end of period	$ 332,841

Information about Segments and Geographic Areas (Schedule of Long Lived Assets by Segment) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Segment Reporting Information [Line Items]
Total long-lived assets	$ 284,243	$ 176,308
Americas
Segment Reporting Information [Line Items]
Total long-lived assets	231,094	136,035
EMEA
Segment Reporting Information [Line Items]
Total long-lived assets	31,286	28,744
APAC
Segment Reporting Information [Line Items]
Total long-lived assets	$ 21,863	$ 11,529

Net Loss Per Share (Schedule of Anti-Dilutive Shares Excluded from Earnings Per Share Calculation) (Details) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	12,953	2,902
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	2,898	989
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	9,305	1,913
Employee Stock Purchase Plan shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	750