Balance Sheet Components

12 Months Ended

Jun. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Accounts receivable, net



	June 30,
	2020			2019
	(in thousands)
Accounts receivable	$	43,394		$	48,401
Less: Allowance for price adjustments	(30,092		)	(24,075		)
Less: Allowance for doubtful accounts	(30		)	(30		)
Accounts receivable, net	$	13,272		$	24,296

Inventories



	June 30,
	2020		2019
	(in thousands)
Raw materials	$	55,377	$	59,076
Work in-process	61,863		38,214
Finished goods	18,288		14,353
	$	135,528	$	111,643

Other current assets



	June 30,
	2020			2019
	(in thousands)
VAT receivable	$	1,639	*	$	30,769
Other prepaid expenses	1,900			2,745
Prepaid insurance	1,520			939
Prepaid maintenance	587			481
Prepayments to supplier	938			583
Prepaid income tax	1,991			267
Customs deposit	163			114
Lease financing cost	—			825
Other receivables	69			379
	$	8,807		$	37,102

* Refund of the accumulated value-added tax paid previously

Property, plant and equipment, net



	June 30,
	2020			2019
	(in thousands)
Land	$	4,877		$	4,877
Building	58,875			36,205
Manufacturing machinery and equipment	447,079			303,750
Equipment and tooling	25,398			20,739
Computer equipment and software	38,779			34,048
Office furniture and equipment	3,529			3,243
Leasehold improvements	68,224			53,597
Land use rights	8,502			8,760
	655,263			465,219
Less: accumulated depreciation	(291,515		)	(252,982		)
	363,748			212,237
Equipment and construction in progress	48,592			197,500
Property, plant and equipment, net	$	412,340		$	409,737

Total depreciation expense was $43.9 million, $31.9 million and $29.2 million for fiscal year 2020, 2019 and 2018, respectively.

The gross amount of computer software recorded under capital leases was $13.7 million and $13.7 million and the related accumulated depreciation was $10.1 million and $8.2 million, respectively, at June 30, 2020 and 2019.

The Company capitalized $1.0 million, $0.8 million and 0.3 million of software development costs during the fiscal year 2020, 2019 and 2018, respectively. Amortization of capitalized software development costs was $0.5 million in fiscal year 2020, $0.5 million in fiscal year 2019 and $0.6 million in fiscal year 2018. Unamortized capitalized software development costs in each of the periods presented at June 30, 2020 and 2019 were $1.4 million and $0.9 million, respectively.

There is no private land ownership in China. Individuals and companies are permitted to acquire land use rights for specific purpose. In March 2017, the JV Company received the necessary land use right certificate from the PRC government. The land use rights will expire on November 30, 2066.

Other long-term assets



	June 30,
	2020		2019
	(in thousands)
Prepayments for property and equipment	$	2,242	$	4,846
Investments in privately held companies	100		700
Lease financing costs	—		1,758
Customs deposit	1,662		980
Other long-term deposits	850		889
Office leases deposits	766		1,031
Other	184		413
	$	5,804	$	10,617

Intangible assets, net



	June 30,
	2020			2019
	(in thousands)
Patents and technology rights	$	18,037		$	18,037
Trade name	268			268
Customer relationships	1,150			1,150
	19,455			19,455
Less: accumulated amortization	(2,954		)	(2,842		)
	16,501			16,613
Goodwill	269			269
Intangible assets, net	$	16,770		$	16,882

Intangible assets of patents and technology rights are primarily related to a license agreement that the Company entered into with STMicroelectronics International N.V. (“STMicro”) on September 5, 2017, pursuant to which STMicro granted the Company a world-wide, royalty-free and fully-paid license to use its technologies to develop, market and distribute certain digital multi-phase controller products, which have been offered by STMicro. This agreement allows the Company to develop and market products in a new market, primarily in the computer server segment. As of June 30, 2020, the Company recorded $16.2 million of intangible assets related to STMicro. The Company will begin to amortize such license fees during the September 2020 quarter, which is when the technology meets qualification requirements and becomes ready for its intended use in production.

Amortization expense for intangible assets was $113,000, $113,000 and $76,000 for the years ended June 30, 2020, 2019 and 2018, respectively.

Estimated future minimum amortization expense of intangible assets is as follows (in thousands):



Year ending June 30,
2021	$	3,360
2022	3,360
2023	3,286
2024	3,249
2025	3,246
	$	16,501

Accrued liabilities



	June 30,
	2020		2019
	(in thousands)
Accrued compensation and benefits	$	19,968	$	16,385
Warranty accrual	709		623
Stock rotation accrual	3,358		1,921
Accrued professional fees	5,868		1,721
Accrued inventory	775		857
Accrued facilities related expenses	1,831		4,233
Accrued financing lease costs	—		728
Accrued property, plant and equipment	11,039		11,527
Other accrued expenses	8,017		5,144
Customer deposit	2,813		351
ESPP payable	608		585
	$	54,986	$	44,075

The activity in the warranty accrual, included in accrued liabilities is as follows:



	Year Ended June 30,
	2020			2019			2018
	(in thousands)
Beginning balance	$	623		$	535		$	1,866
Addition	895			236			(147		)
Released	—			—			(1,000		)
Utilization	(809		)	(148		)	(184		)
Ending balance	$	709		$	623		$	535

The activity in the stock rotation accrual, included in accrued liabilities is as follows:



	Year Ended June 30,
	2020			2019			2018
	(in thousands)
Beginning balance	$	1,921		$	1,750		$	1,871
Addition	9,441			5,267			2,714
Utilization	(8,004		)	(5,096		)	(2,835		)
Ending balance	$	3,358		$	1,921		$	1,750

Other long-term liabilities



	June 30,
	2020			2019
	(in thousands)
Deferred rent	$	—		$	65
Customer deposits	8,000		*	10,000		*
Computer software liabilities	1,897			3,701
Other	826			155
Other long-term liabilities	$	10,723		$	13,921

* Customer deposit from our customer A and customer B for securing future shipment from the Company. The Company reclassified $2.0 million of the customer deposit to short term accrued liabilities during the fiscal year ended June 30, 2020 since the repayment of this amount is due within a year.