Supplemental Financial Information

12 Months Ended

Jun. 30, 2023

Supplemental Financial Information Disclosure [Abstract]

Note 3. Supplemental Financial Information

Consolidated Balance Sheets

Financing receivables

A financing receivable is a contractual right to receive money, on demand or on fixed or determinable dates, that is recognized as an asset on the Company’s balance sheets. The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year, are included in other assets on the consolidated balance sheets. The Company evaluates the credit quality of a customer at contract inception and monitors credit quality over the term of the underlying transactions. The Company performs a credit analysis for all new orders and reviews payment history, current order backlog, financial performance of the customers and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the contract term and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. Actual cash collections may differ from the contracted maturities due to early customer buyouts, refinancing, or defaults. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near‑term risk of non‑payment. The Company performs an assessment each quarter on the allowance for credit losses related to its financing receivables. The Company did not have any additions to the allowance for credit losses during the years ended June 30, 2023 and 2022.

A summary of the Company’s financing receivables is presented as follows (in thousands):


	June 30, 2023			June 30, 2022
Financing receivable	$	5,854		$	6,137
Allowance for credit losses		(798	)		(943	)
Total, net	$	5,056		$	5,194
Reported as:
Current	$	2,016		$	2,435
Non-current		3,040			2,759
Total, net	$	5,056		$	5,194

Inventories

Inventories consisted of the following (in thousands):


	June 30, 2023		June 30, 2022
Raw materials	$	62,945	$	61,871
Work-in-process		17,469		16,367
Finished goods		64,736		64,016
Total inventories	$	145,150	$	142,254

The Company's inventories on the consolidated balance sheets are net of reserves.

Prepaid and Other Current Assets

Prepaid and other current assets consisted of the following (in thousands):


	June 30, 2023		June 30, 2022
Value added tax receivables	$	11,718	$	7,058
Prepaid commissions		5,866		6,500
Capitalized contract costs		1,782		1,590
Other prepaid assets		5,763		5,073
Other current assets		2,483		3,573
Total prepaid and other current assets	$	27,612	$	23,794

Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):


	June 30, 2023			June 30, 2022
Furniture and fixtures	$	1,581		$	1,766
Computer and office equipment		7,798			8,605
Software		5,191			5,344
Leasehold improvements		26,641			26,659
Machinery and equipment		44,779			46,522
Construction in progress		13,499			2,999
		99,489			91,895
Less: Accumulated depreciation		(78,563	)		(79,210	)
Total property and equipment, net	$	20,926		$	12,685

At June 30, 2023, construction in progress includes $7.5 million in capitalized costs for the development of internal use software. Depreciation expense related to property and equipment was $4.4 million, $5.4 million and $6.2 million, during the years ended June 30, 2023, 2022 and 2021, respectively.

Other Assets

Other assets consisted of the following (in thousands):


	June 30, 2023		June 30, 2022
Capitalized contract costs	$	9,244	$	9,754
Long-term accounts receivable		4,734		5,301
Capitalized software costs to be sold		2,853		—
Other long-term assets		3,276		4,239
Total other assets	$	20,107	$	19,294

Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):


	June 30, 2023		June 30, 2022
Value added tax liabilities	$	12,368	$	8,222
Commissions due to third parties		10,499		6,619
Refunds due to customers		3,364		4,717
Accrued consulting		2,599		1,269
Accrued royalties		2,398		2,424
Other liabilities		7,043		7,034
Total other accrued liabilities	$	38,271	$	30,285

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component (in thousands):


	Cumulative Translation Adjustment			Defined Pension Benefit Obligation			Total
Balance at June 30, 2021	$	2,457		$	(364	)	$	2,093
Other comprehensive income (loss)		(3,998	)		4,311			313
Balance at June 30, 2022	$	(1,541	)	$	3,947		$	2,406
Other comprehensive loss		(791	)		(1,193	)		(1,984	)
Balance at June 30, 2023	$	(2,332	)	$	2,754		$	422

Consolidated Statements of Operations

Other expense, net consisted of the following (in thousands):


	Years Ended June 30,
	2023			2022			2021
Interest expense	$	(10,632	)	$	(8,129	)	$	(16,893	)
Foreign currency exchange loss		(878	)		(2,618	)		(1,953	)
Loss on debt extinguishment		-			-			(9,948	)
Other, net		(232	)		356			1,128
Total other expense, net	$	(11,742	)	$	(10,391	)	$	(27,666	)

Restructuring

In the second quarter of fiscal year 2023, the Company announced a cost savings initiative designed to reduce operating costs. This cost savings initiative resulted in the reduction of the Company’s global workforce by 4.5%. The Company recorded $2.7 million in restructuring charges during the fiscal year 2023. These charges are cash-based charges, primarily related to severance expenses and other one-time termination benefits. At June 30, 2023, the Company does not have any remaining accruals related to the restructuring charges.