SUBSEQUENT EVENT

9 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENT

On April 16, 2018, the U.S. Department of Commerce ("DOC") changed and reactivated its previously suspended denial order and suspended the export privileges of Zhongxing Telecommunications Equipment Corporation ("ZTE Corporation") and its subsidiary, ZTE Kangxun Telecommunications Ltd. ("ZTE Kangxun") (collectively, "ZTE") after determining that ZTE made false statements to the DOC related to senior employee disciplinary actions ("Denial Order"). ZTE is one of our significant customers. Under the Denial Order, ZTE is prohibited from participating in any way in any transaction subject to the U.S. Export Administration Regulations ("EAR"), until March 13, 2025. The Denial Order also restricts U.S. companies from exporting or re-exporting to or on behalf of ZTE any item subject to the EAR or engaging in any transaction to service any item subject to the EAR that has been or will be exported from the U.S. and which is owned, possessed or controlled by ZTE. Following the re-imposition of export sanctions on ZTE, we have ceased shipment of products to ZTE.

As of March 31, 2018, we have an accounts receivable balance of $13.4 million with ZTE, and our balance as of May 8, 2018 is $8.8 million, which we believe to be collectible. During the three and nine months ended March 31, 2018, we recorded a $3.1 million charge related to the write-down of on-hand inventory that was designated for future products to be sold to ZTE, which we may no longer be able to use or re-allocate to other customers.