2. Supplemental Financial Information

9 Months Ended

Mar. 31, 2018

Supplemental Financial Information Details - Equivalents

Supplemental Financial Information

Inventories

Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and consist of the following:

	March 31, 2018		June 30, 2017
	(In thousands)
Finished goods	$	3,917	$	4,191
Raw materials		2,139		1,694
Finished goods held by distributors		1,322		1,074
Inventories, net	$	7,378	$	6,959

Other Liabilities

The following table presents details of our other liabilities:

	March 31, 2018		June 30, 2017
	(In thousands)
Current
Customer deposits and refunds	$	1,277	$	1,119
Accrued raw materials purchases		389		484
Deferred revenue		316		196
Capital lease obligations		64		61
Taxes payable		307		275
Accrued operating expenses		1,053		928
Total other current liabilities	$	3,406	$	3,063
Non-current
Deferred rent	$	164	$	200
Deferred revenue		157		196
Total other non-current liabilities	$	321	$	396

Computation of Net Income (Loss) per Share

Basic and diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the applicable period.

The following table presents the computation of net income (loss) per share:

	Three Months Ended March 31,					Nine Months Ended March 31,
	2018		2017			2018			2017
	(In thousands, except per share data)
Numerator:
Net income (loss)	$	344	$	(162	)	$	(72	)	$	(225	)
Denominator:
Weighted-average common shares outstanding (basic)		18,210		17,522			18,050			17,374
Effect of dilutive securities:
Stock awards		908		–			–			–
Denominator for net income (loss) per share (diluted)		19,118		17,522			18,050			17,374
Net income (loss) per share (basic)	$	0.02	$	(0.01	)	$	(0.00	)	$	(0.01	)
Net income (loss) per share (diluted)	$	0.02	$	(0.01	)	$	(0.00	)	$	(0.01	)

The following table presents the common stock equivalents excluded from the diluted net income (loss) per share calculation, because they were anti-dilutive for the periods presented. These excluded common stock equivalents could be dilutive in the future.

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
	(In thousands)
Common stock equivalents		595		1,062		2,146		1,894

Severance and Related Charges

From July 2017 through September 2017, we realigned certain resources throughout our organization, primarily to optimize our operations and engineering efforts. These activities resulted in total charges of approximately $527,000 recorded during the quarter ended September 30, 2017, which consisted primarily of severance costs, and to a lesser extent, termination costs related to our facility lease in Hong Kong. These charges are included in the applicable functional line items within the accompanying unaudited condensed consolidated statement of operations for the nine months ended March 31, 2018.

The following table presents details of the liability we recorded related to these activities:

	Nine Months Ended March 31, 2018
		(In thousands)
Beginning balance	$	–
Charges		527
Payments		(503	)
Other adjustments		(21	)
Ending balance	$	3

During the three months ended March 31, 2018, we reversed approximately $21,000 of the liability for adjustments we made to the total charges previously estimated in the first fiscal quarter of 2018 primarily due to difference in the settlement of our facility lease in Hong Kong. The remaining liability balance is included in accrued payroll and related expenses in the accompanying unaudited condensed consolidated balance sheet at March 31, 2018.

Supplemental Cash Flow Information

The following table presents non-cash investing transactions excluded from the unaudited condensed consolidated statements of cash flows:

	Nine Months Ended March 31,
	2018		2017
	(In thousands)
Accrued property and equipment paid for in the subsequent period	$	–	$	17