Subsequent Events

6 Months Ended

Apr. 27, 2013

Subsequent Events [Abstract]

Subsequent Events

Subsequent Event

On May 20, 2013, after the end of the second quarter of fiscal 2013, Brocade and A10 reached an agreement to settle the lawsuit that Brocade filed against A10, A10’s founder and other individuals in the United States District Court for the Northern District of California on August 4, 2010, and to settle the lawsuit that A10 filed against Brocade on September 9, 2011, along with all related claims.

Among other agreed upon terms, A10 has granted the Company a broad patent license and agreed to pay the Company $5.0 million in cash and issue a $70.0 million unsecured convertible promissory note payable to the Company. The note will bear interest at 8% per annum and will be due in six months after the issuance date with up to 50% convertible, at the Company’s sole option, into A10 preferred shares issued in a subsequent round of equity financing. The note may be prepaid at any time, however, in the event that the note is not paid in full within 90 days of its issuance, then the Company shall receive warrants to purchase A10 preferred shares and receive additional warrants every 30 days thereafter that the note is not paid in full. The gain related to the settlement, if any, will be recorded subsequent to the second quarter of fiscal year 2013.