ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 77-0521800 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer | ¨ | Accelerated filer | ý | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page No. | ||
Item 1. | ||
Condensed Consolidated Statements of Operations | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. |
Item 1. | Financial Statements. |
December 31, 2016 | June 30, 2016* | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 17,694 | $ | 21,349 | ||||
Short-term investments | 85,988 | 88,277 | ||||||
Accounts receivable, net of allowances of $42 and $111 at December 31, 2016 and June 30, 2016, respectively | 47,815 | 42,216 | ||||||
Restricted cash | 4,094 | 5,109 | ||||||
Income taxes receivable | 648 | 687 | ||||||
Deferred costs | 3,919 | 1,784 | ||||||
Prepaid expenses and other current assets | 3,868 | 4,448 | ||||||
Total current assets | 164,026 | 163,870 | ||||||
Property and equipment, net | 4,795 | 5,247 | ||||||
Deferred income taxes, non-current | 435 | 661 | ||||||
Goodwill and intangible assets, net | 35,475 | 35,993 | ||||||
Deferred costs, non-current | 14,861 | 10,292 | ||||||
Other assets | 1,840 | 2,184 | ||||||
Total assets | $ | 221,432 | $ | 218,247 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 10,255 | $ | 4,992 | ||||
Accrued expenses | 41,374 | 36,274 | ||||||
Deferred revenue | 8,035 | 4,334 | ||||||
Income taxes payable | 242 | 88 | ||||||
Total current liabilities | 59,906 | 45,688 | ||||||
Deferred rent, non-current | 1,207 | 1,124 | ||||||
Deferred revenue, non-current | 28,062 | 19,035 | ||||||
Other long-term liabilities | 1,323 | 2,715 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.001 par value: 50,000 shares authorized; no shares issued or outstanding | — | — | ||||||
Common stock, $0.001 par value: 600,000 shares authorized; 43,304 and 42,708 shares issued and outstanding at December 31, 2016 and June 30, 2016, respectively | 43 | 43 | ||||||
Additional paid-in capital | 152,824 | 149,775 | ||||||
Accumulated other comprehensive loss | (2,809 | ) | (1,767 | ) | ||||
Retained earnings (accumulated deficit) | (19,124 | ) | 1,634 | |||||
Total stockholders’ equity | 130,934 | 149,685 | ||||||
Total liabilities and stockholders’ equity | $ | 221,432 | $ | 218,247 |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 37,804 | $ | 31,160 | $ | 67,227 | $ | 62,269 | ||||||||
Services | 14,197 | 14,093 | 27,001 | 27,045 | ||||||||||||
Total revenue | 52,001 | 45,253 | 94,228 | 89,314 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Product | 22,598 | 18,364 | 40,359 | 36,447 | ||||||||||||
Services | 6,129 | 6,168 | 11,844 | 11,472 | ||||||||||||
Total cost of revenue | 28,727 | 24,532 | 52,203 | 47,919 | ||||||||||||
Gross profit | 23,274 | 20,721 | 42,025 | 41,395 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 16,301 | 16,653 | 34,319 | 34,640 | ||||||||||||
Sales and marketing | 5,277 | 6,524 | 10,545 | 13,522 | ||||||||||||
General and administrative | 6,872 | 5,094 | 12,363 | 11,329 | ||||||||||||
Legal settlement and contingencies | 6,424 | 750 | 6,424 | 750 | ||||||||||||
Restructuring | — | (1,468 | ) | — | (1,468 | ) | ||||||||||
Total operating expenses | 34,874 | 27,553 | 63,651 | 58,773 | ||||||||||||
Loss from operations | (11,600 | ) | (6,832 | ) | (21,626 | ) | (17,378 | ) | ||||||||
Other income (expense), net | 714 | 520 | 1,010 | 333 | ||||||||||||
Loss before provision for income taxes | (10,886 | ) | (6,312 | ) | (20,616 | ) | (17,045 | ) | ||||||||
Provision for income taxes | 537 | 327 | 142 | 440 | ||||||||||||
Net loss | $ | (11,423 | ) | $ | (6,639 | ) | $ | (20,758 | ) | $ | (17,485 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.26 | ) | $ | (0.16 | ) | $ | (0.48 | ) | $ | (0.43 | ) | ||||
Weighted average shares used in computing net loss per share: | ||||||||||||||||
Basic and diluted | 43,208 | 41,038 | 42,932 | 40,820 | ||||||||||||
Stock-based compensation expense included above: | ||||||||||||||||
Cost of revenue | $ | 35 | $ | 39 | $ | 64 | $ | 71 | ||||||||
Research and development | 897 | 1,771 | 2,387 | 3,229 | ||||||||||||
Sales and marketing | 536 | 835 | 1,030 | 1,675 | ||||||||||||
General and administrative | 520 | 535 | 1,048 | 1,292 | ||||||||||||
Total stock-based compensation expense | $ | 1,988 | $ | 3,180 | $ | 4,529 | $ | 6,267 |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net loss | $ | (11,423 | ) | $ | (6,639 | ) | $ | (20,758 | ) | $ | (17,485 | ) | ||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment, net of tax | (661 | ) | (392 | ) | (595 | ) | (577 | ) | ||||||||
Available-for-sale securities: | ||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (298 | ) | (239 | ) | (437 | ) | (233 | ) | ||||||||
Reclassification adjustments for gain (loss) on available-for-sale securities recognized, net of tax | (5 | ) | 4 | (10 | ) | 6 | ||||||||||
Net decrease from available-for-sale securities, net of tax | (303 | ) | (235 | ) | (447 | ) | (227 | ) | ||||||||
Other comprehensive loss, net of tax | (964 | ) | (627 | ) | (1,042 | ) | (804 | ) | ||||||||
Comprehensive loss | $ | (12,387 | ) | $ | (7,266 | ) | $ | (21,800 | ) | $ | (18,289 | ) | ||||
Six Months Ended | ||||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Operating activities | ||||||||
Net loss | $ | (20,758 | ) | $ | (17,485 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,260 | 1,916 | ||||||
Accretion of net premium on short-term investments | 237 | 381 | ||||||
Stock-based compensation expense | 4,529 | 6,267 | ||||||
Write-off of long-term investments | — | 477 | ||||||
Gain on disposal of property and equipment | (2 | ) | (4 | ) | ||||
Bad debt expense | 125 | 51 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (5,724 | ) | (1,007 | ) | ||||
Deferred income taxes | 226 | 121 | ||||||
Restricted cash | 1,015 | 199 | ||||||
Income taxes receivable | 39 | 614 | ||||||
Deferred costs | (6,704 | ) | (4,302 | ) | ||||
Prepaid expenses and other current assets | 580 | (239 | ) | |||||
Other assets | 98 | 908 | ||||||
Trade accounts payable | 5,309 | 80 | ||||||
Accrued expenses and other liabilities | 3,945 | (1,010 | ) | |||||
Income taxes payable | 154 | 162 | ||||||
Deferred rent | 44 | (814 | ) | |||||
Deferred revenue | 12,728 | 7,023 | ||||||
Net cash used in operating activities | (2,899 | ) | (6,662 | ) | ||||
Investing activities | ||||||||
Purchases of property and equipment | (531 | ) | (332 | ) | ||||
Purchases of short-term investments | (37,788 | ) | (20,622 | ) | ||||
Proceeds from sales and maturities of short-term investments | 39,392 | 23,009 | ||||||
Proceeds from sales of long-term investments | 246 | — | ||||||
Net cash provided by investing activities | 1,319 | 2,055 | ||||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 159 | 921 | ||||||
Repurchase of common stock | — | (570 | ) | |||||
Tax withholdings related to net share settlements of restricted stock units | (1,638 | ) | (1,796 | ) | ||||
Net cash used in financing activities | (1,479 | ) | (1,445 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (596 | ) | (576 | ) | ||||
Net decrease in cash and cash equivalents | (3,655 | ) | (6,628 | ) | ||||
Cash and cash equivalents, at beginning of period | 21,349 | 18,721 | ||||||
Cash and cash equivalents, at end of period | $ | 17,694 | $ | 12,093 | ||||
Supplemental disclosure of cash flow information | ||||||||
Income taxes paid (received), net | $ | 1,410 | $ | (528 | ) |
1. | Summary of business and significant accounting policies |
Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for-Sale Securities | Total | ||||||||||
Balance, net of tax as of June 30, 2016 | $ | (1,889 | ) | $ | 122 | $ | (1,767 | ) | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (595 | ) | (437 | ) | (1,032 | ) | ||||||
Amount reclassified from accumulated other comprehensive loss, net of tax | — | (10 | ) | (10 | ) | |||||||
Other comprehensive loss, net of tax | (595 | ) | (447 | ) | (1,042 | ) | ||||||
Balance, net of tax as of December 31, 2016 | $ | (2,484 | ) | $ | (325 | ) | $ | (2,809 | ) |
2. | Net income (loss) per share |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net loss | $ | (11,423 | ) | $ | (6,639 | ) | $ | (20,758 | ) | $ | (17,485 | ) | ||||
Weighted average common shares used in computing net loss per share, basic and diluted | 43,208 | 41,038 | 42,932 | 40,820 | ||||||||||||
Net loss per share, basic and diluted | $ | (0.26 | ) | $ | (0.16 | ) | $ | (0.48 | ) | $ | (0.43 | ) |
Three Months Ended | Six Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Stock options | 6,410 | 5,111 | 6,410 | 5,111 | ||||||||
Restricted stock units | 3,062 | 4,393 | 3,062 | 4,393 | ||||||||
Total | 9,472 | 9,504 | 9,472 | 9,504 |
3. | Cash, cash equivalents and short-term investments |
Description | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Cash | $ | 13,298 | $ | — | $ | — | $ | 13,298 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | 4,396 | — | — | 4,396 | ||||||||||||
Total cash equivalents | 4,396 | — | — | 4,396 | ||||||||||||
Total cash and cash equivalents | 17,694 | — | — | 17,694 | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. treasury securities | 1,265 | — | (2 | ) | 1,263 | |||||||||||
U.S. agency securities | 3,184 | — | (16 | ) | 3,168 | |||||||||||
Asset-backed securities | 8,231 | 5 | (9 | ) | 8,227 | |||||||||||
Municipal securities | 9,017 | 2 | (4 | ) | 9,015 | |||||||||||
Commercial paper | 3,243 | — | — | 3,243 | ||||||||||||
Foreign government securities | 751 | — | (2 | ) | 749 | |||||||||||
Corporate bonds | 60,486 | 25 | (188 | ) | 60,323 | |||||||||||
Total short-term investments | 86,177 | 32 | (221 | ) | 85,988 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 103,871 | $ | 32 | $ | (221 | ) | $ | 103,682 |
Description | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Cash | $ | 14,308 | $ | — | $ | — | $ | 14,308 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | 5,641 | — | — | 5,641 | ||||||||||||
U.S. agency securities | 1,400 | — | — | 1,400 | ||||||||||||
Total cash equivalents | 7,041 | — | — | 7,041 | ||||||||||||
Total cash and cash equivalents | 21,349 | — | — | 21,349 | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. treasury securities | 1,699 | 3 | — | 1,702 | ||||||||||||
U.S. agency securities | 5,907 | 22 | — | 5,929 | ||||||||||||
Asset-backed securities | 10,160 | 17 | (2 | ) | 10,175 | |||||||||||
Municipal securities | 6,004 | 14 | — | 6,018 | ||||||||||||
Commercial paper | 3,494 | 1 | — | 3,495 | ||||||||||||
Corporate bonds | 60,754 | 217 | (13 | ) | 60,958 | |||||||||||
Total short-term investments | 88,018 | 274 | (15 | ) | 88,277 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 109,367 | $ | 274 | $ | (15 | ) | $ | 109,626 |
Amortized Cost | Estimated Fair Value | |||||||
Due within one year | $ | 38,058 | $ | 38,052 | ||||
Due between one and two years | 29,036 | 28,995 | ||||||
Due between two and three years | 19,083 | 18,941 | ||||||
Total | $ | 86,177 | $ | 85,988 |
4. | Fair value of financial instruments |
Fair Value Measurements at December 31, 2016 Using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
Description | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | $ | 4,396 | $ | 4,396 | $ | — | $ | — | ||||||||
Total cash equivalents | 4,396 | 4,396 | — | — | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. treasury securities | 1,263 | 1,263 | — | — | ||||||||||||
U.S. agency securities | 3,168 | — | 3,168 | — | ||||||||||||
Asset-backed securities | 8,227 | — | 8,227 | — | ||||||||||||
Municipal securities | 9,015 | — | 9,015 | — | ||||||||||||
Commercial paper | 3,243 | — | 3,243 | — | ||||||||||||
Foreign government securities | 749 | — | 749 | — | ||||||||||||
Corporate bonds | 60,323 | — | 60,323 | — | ||||||||||||
Total short-term investments | 85,988 | 1,263 | 84,725 | — | ||||||||||||
Cash equivalents and short-term investments | $ | 90,384 | $ | 5,659 | $ | 84,725 | $ | — |
Fair Value Measurements at June 30, 2016 Using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
Description | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | $ | 5,641 | $ | 5,641 | $ | — | $ | — | ||||||||
U.S. agency securities | 1,400 | — | 1,400 | — | ||||||||||||
Total cash equivalents | 7,041 | 5,641 | 1,400 | — | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. treasury securities | 1,702 | 1,702 | — | — | ||||||||||||
U.S. agency securities | 5,929 | — | 5,929 | — | ||||||||||||
Asset-backed securities | 10,175 | — | 10,175 | — | ||||||||||||
Municipal securities | 6,018 | — | 6,018 | — | ||||||||||||
Commercial paper | 3,495 | — | 3,495 | — | ||||||||||||
Corporate bonds | 60,958 | — | 60,958 | — | ||||||||||||
Total short-term investments | 88,277 | 1,702 | 86,575 | — | ||||||||||||
Cash equivalents and short-term investments | $ | 95,318 | $ | 7,343 | $ | 87,975 | $ | — |
5. | Balance sheet information |
December 31, 2016 | June 30, 2016 | |||||||
Acquired developed technology | $ | 13,875 | $ | 13,875 | ||||
Less accumulated amortization | (9,728 | ) | (9,210 | ) | ||||
Intangible assets, net | $ | 4,147 | $ | 4,665 |
December 31, 2016 | June 30, 2016 | |||||||
Accrued compensation and benefits | $ | 9,431 | $ | 9,308 | ||||
Accrued royalties | 14,408 | 15,331 | ||||||
Accrued legal settlement and contingencies | 7,274 | 1,576 | ||||||
Other accrued expenses | 10,261 | 10,059 | ||||||
$ | 41,374 | $ | 36,274 |
6. | Commitments and contingencies |
Payments Due by Period | ||||||||||||||||||||||||||||
Total | Fiscal 2017 | Fiscal 2018 | Fiscal 2019 | Fiscal 2020 | Fiscal 2021 | Thereafter | ||||||||||||||||||||||
Operating lease obligations | $ | 13,455 | $ | 2,033 | $ | 3,971 | $ | 3,536 | $ | 2,123 | $ | 1,792 | $ | — | ||||||||||||||
Purchase obligations | 5,081 | 1,901 | 1,846 | 382 | 217 | 217 | 518 | |||||||||||||||||||||
Total contractual obligations | $ | 18,536 | $ | 3,934 | $ | 5,817 | $ | 3,918 | $ | 2,340 | $ | 2,009 | $ | 518 |
7. | Guarantees and indemnifications |
8. | Stock-based compensation |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (years) | Aggregate Intrinsic Value | ||||||||||
Options outstanding as of June 30, 2016 | 5,370 | $ | 6.80 | ||||||||||
Granted | 1,277 | $ | 5.12 | ||||||||||
Exercised | (36 | ) | $ | 4.40 | |||||||||
Canceled | (201 | ) | $ | 7.21 | |||||||||
Options outstanding as of December 31, 2016 | 6,410 | $ | 6.46 | 6.76 | $ | 5,706 | |||||||
As of December 31, 2016: | |||||||||||||
Options vested and expected to vest | 5,886 | $ | 6.51 | 6.56 | $ | 5,075 | |||||||
Options exercisable | 3,182 | $ | 6.82 | 5.12 | $ | 2,239 |
Number of Shares | Weighted Average Remaining Contractual Life (years) | Aggregate Intrinsic Value | |||||||
RSUs outstanding as of June 30, 2016 | 3,302 | ||||||||
Granted | 951 | ||||||||
Vested | (853 | ) | |||||||
Canceled | (338 | ) | |||||||
RSUs outstanding as of December 31, 2016 | 3,062 | 1.53 | $ | 21,589 | |||||
As of December 31, 2016: | |||||||||
RSUs expected to vest | 2,549 | 1.42 | $ | 17,970 |
Number of Shares | |||
Shares available for grant as of June 30, 2016 | 1,719 | ||
Additional shares authorized | 1,667 | ||
Granted | (2,228 | ) | |
RSUs withheld for taxes in net share settlements | 291 | ||
Canceled | 539 | ||
Shares available for grant as of December 31, 2016 | 1,988 |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Stock option awards | $ | 553 | $ | 441 | $ | 1,027 | $ | 851 | ||||||||
RSU awards | 1,435 | 2,739 | 3,502 | 5,416 | ||||||||||||
Total stock-based compensation expense | $ | 1,988 | $ | 3,180 | $ | 4,529 | $ | 6,267 |
Three Months Ended | Six Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Expected volatility | 39 | % | 52 | % | 39 | % | 52 | % | ||||
Expected term (in years) | 4.45 | 4.48 | 4.19 | 4.46 | ||||||||
Risk-free interest rate | 1.82 | % | 1.52 | % | 1.24 | % | 1.54 | % | ||||
Dividend yield | — | % | — | % | — | % | — | % |
9. | Income taxes |
10. | Segments |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue | ||||||||||||||||
Automotive | $ | 38,744 | $ | 31,846 | $ | 69,011 | $ | 63,589 | ||||||||
Advertising | 8,208 | 6,688 | 14,753 | 11,539 | ||||||||||||
Mobile Navigation | 5,049 | 6,719 | 10,464 | 14,186 | ||||||||||||
Total revenue | 52,001 | 45,253 | 94,228 | 89,314 | ||||||||||||
Cost of revenue | ||||||||||||||||
Automotive | 23,438 | 18,931 | 41,983 | 37,452 | ||||||||||||
Advertising | 3,919 | 3,755 | 7,445 | 6,750 | ||||||||||||
Mobile Navigation | 1,370 | 1,846 | 2,775 | 3,717 | ||||||||||||
Total cost of revenue | 28,727 | 24,532 | 52,203 | 47,919 | ||||||||||||
Gross profit | ||||||||||||||||
Automotive | 15,306 | 12,915 | 27,028 | 26,137 | ||||||||||||
Advertising | 4,289 | 2,933 | 7,308 | 4,789 | ||||||||||||
Mobile Navigation | 3,679 | 4,873 | 7,689 | 10,469 | ||||||||||||
Total gross profit | $ | 23,274 | $ | 20,721 | $ | 42,025 | $ | 41,395 | ||||||||
Gross margin | ||||||||||||||||
Automotive | 40 | % | 41 | % | 39 | % | 41 | % | ||||||||
Advertising | 52 | % | 44 | % | 50 | % | 42 | % | ||||||||
Mobile Navigation | 73 | % | 73 | % | 73 | % | 74 | % | ||||||||
Total gross margin | 45 | % | 46 | % | 45 | % | 46 | % |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
• | Revenue is expected to decline substantially as certain revenue that we have been recognizing upon product delivery will now be recognized over the contractual period during which we provide MapCare; |
• | Gross profit is also expected to decline in conjunction with the decline in revenue; |
• | Gross margin is expected to increase, as the royalties earned on on-board navigation solutions for the Europe region that were recognized upon delivery in previous periods and carry a higher relative map cost and lower gross margin will now be deferred and recognized over the contractual period. This increase in gross margin will be partially offset by declining mobile navigation revenue that carries a higher relative gross margin; |
• | Net loss is expected to increase due to the decrease in revenue recognized; |
• | Deferred revenue and deferred costs are expected to increase as we invoice and defer revenue related to the MapCare offering in Europe; and |
• | Adjusted EBITDA, a non-GAAP metric, is expected to decrease as our loss increases. |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue | $ | 52,001 | $ | 45,253 | $ | 94,228 | $ | 89,314 | ||||||||
Billings (Non-GAAP) | $ | 59,687 | $ | 48,435 | $ | 106,956 | $ | 96,337 | ||||||||
Increase in deferred revenue | $ | 7,686 | $ | 3,182 | $ | 12,728 | $ | 7,023 | ||||||||
Increase in deferred costs | $ | 3,847 | $ | 1,629 | $ | 6,704 | $ | 4,302 | ||||||||
Gross profit | $ | 23,274 | $ | 20,721 | $ | 42,025 | $ | 41,395 | ||||||||
Non-GAAP gross profit on billings | $ | 27,113 | $ | 22,274 | $ | 48,049 | $ | 44,116 | ||||||||
Gross margin | 45 | % | 46 | % | 45 | % | 46 | % | ||||||||
Non-GAAP gross margin on billings | 45 | % | 46 | % | 45 | % | 46 | % | ||||||||
Net loss | $ | (11,423 | ) | $ | (6,639 | ) | $ | (20,758 | ) | $ | (17,485 | ) | ||||
Diluted net loss per share | $ | (0.26 | ) | $ | (0.16 | ) | $ | (0.48 | ) | $ | (0.43 | ) | ||||
Adjusted EBITDA (Non-GAAP) | $ | (2,565 | ) | $ | (4,144 | ) | $ | (9,413 | ) | $ | (10,534 | ) | ||||
Adjusted EBITDA on billings (Non-GAAP) | $ | 1,274 | $ | (2,591 | ) | $ | (3,389 | ) | $ | (7,813 | ) | |||||
Free cash flow (Non-GAAP) | $ | 2,653 | $ | (883 | ) | $ | (3,430 | ) | $ | (6,994 | ) |
• | We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support; accordingly, non-GAAP gross profit on billings, non-GAAP gross margin on billings and adjusted EBITDA on billings do not reflect all costs associated with billings; |
• | assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditures; |
• | adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; |
• | adjusted EBITDA does not reflect the use of cash for net share settlements of RSUs; |
• | adjusted EBITDA does not reflect tax payments that historically have represented a reduction in cash available to us or tax benefits that may arise as a result of generating net losses; and |
• | adjusted EBITDA, free cash flow or similarly titled measures may be calculated by other companies differently, which reduces their usefulness as comparative measures. |
Reconciliation of Revenue to Billings | ||||||||||||||||||||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | |||||||||||||||||||||||||||||
Three Months Ended December 31, | Three Months Ended December 31, | Three Months Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Revenue | $ | 38,744 | $ | 31,846 | $ | 8,208 | $ | 6,688 | $ | 5,049 | $ | 6,719 | $ | 52,001 | $ | 45,253 | ||||||||||||||||
Adjustments: Change in deferred revenue | 7,694 | 3,434 | — | — | (8 | ) | (252 | ) | 7,686 | 3,182 | ||||||||||||||||||||||
Billings | $ | 46,438 | $ | 35,280 | $ | 8,208 | $ | 6,688 | $ | 5,041 | $ | 6,467 | $ | 59,687 | $ | 48,435 |
Automotive | Advertising | Mobile Navigation | Total | |||||||||||||||||||||||||||||
Six Months Ended December 31, | Six Months Ended December 31, | Six Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Revenue | $ | 69,011 | $ | 63,589 | $ | 14,753 | $ | 11,539 | $ | 10,464 | $ | 14,186 | $ | 94,228 | $ | 89,314 | ||||||||||||||||
Adjustments: Change in deferred revenue | 12,807 | 7,251 | — | — | (79 | ) | (228 | ) | 12,728 | 7,023 | ||||||||||||||||||||||
Billings | $ | 81,818 | $ | 70,840 | $ | 14,753 | $ | 11,539 | $ | 10,385 | $ | 13,958 | $ | 106,956 | $ | 96,337 | ||||||||||||||||
Reconciliation of Gross Profit to Gross Profit on Billings | ||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Gross profit | $ | 23,274 | $ | 20,721 | $ | 42,025 | $ | 41,395 | ||||||||
Gross margin | 45 | % | 46 | % | 45 | % | 46 | % | ||||||||
Adjustments to gross profit: | ||||||||||||||||
Change in deferred revenue | 7,686 | 3,182 | 12,728 | 7,023 | ||||||||||||
Change in deferred costs(1) | (3,847 | ) | (1,629 | ) | (6,704 | ) | (4,302 | ) | ||||||||
Net change | 3,839 | 1,553 | 6,024 | 2,721 | ||||||||||||
Gross profit on billings(1) | $ | 27,113 | $ | 22,274 | $ | 48,049 | $ | 44,116 | ||||||||
Gross margin on billings | 45 | % | 46 | % | 45 | % | 46 | % | ||||||||
(1) Deferred costs primarily include costs associated with third party content and in connection with certain customized software solutions, the costs incurred to develop those solutions. We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support. Accordingly, gross profit on billings does not include all costs associated with billings. |
Reconciliation of Deferred Revenue to Increase (Decrease) in Deferred Revenue | ||||||||||||||||
Reconciliation of Deferred Costs to Increase (Decrease) in Deferred Costs | ||||||||||||||||
Three Months Ended December 31, 2016 | ||||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | |||||||||||||
Deferred revenue, December 31 | $ | 34,960 | $ | — | $ | 1,137 | $ | 36,097 | ||||||||
Deferred revenue, September 30 | 27,266 | — | 1,145 | 28,411 | ||||||||||||
Increase (decrease) in deferred revenue | $ | 7,694 | $ | — | $ | (8 | ) | $ | 7,686 | |||||||
Deferred costs, December 31 | $ | 18,780 | $ | — | $ | — | $ | 18,780 | ||||||||
Deferred costs, September 30 | 14,933 | — | — | 14,933 | ||||||||||||
Increase in deferred costs | $ | 3,847 | $ | — | $ | — | $ | 3,847 |
Three Months Ended December 31, 2015 | ||||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | |||||||||||||
Deferred revenue, December 31 | $ | 12,443 | $ | — | $ | 1,408 | $ | 13,851 | ||||||||
Deferred revenue, September 30 | 9,009 | — | 1,660 | 10,669 | ||||||||||||
Increase (decrease) in deferred revenue | $ | 3,434 | $ | — | $ | (252 | ) | $ | 3,182 | |||||||
Deferred costs, December 31 | $ | 7,443 | $ | — | $ | — | $ | 7,443 | ||||||||
Deferred costs, September 30 | 5,814 | — | — | 5,814 | ||||||||||||
Increase (decrease) in deferred costs | $ | 1,629 | $ | — | $ | — | $ | 1,629 |
Six Months Ended December 31, 2016 | ||||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | |||||||||||||
Deferred revenue, December 31 | $ | 34,960 | $ | — | $ | 1,137 | $ | 36,097 | ||||||||
Deferred revenue, June 30 | 22,153 | — | 1,216 | 23,369 | ||||||||||||
Increase (decrease) in deferred revenue | $ | 12,807 | $ | — | $ | (79 | ) | $ | 12,728 | |||||||
Deferred costs, December 31 | $ | 18,780 | $ | — | $ | — | $ | 18,780 | ||||||||
Deferred costs, June 30 | 12,076 | — | — | 12,076 | ||||||||||||
Increase in deferred costs | $ | 6,704 | $ | — | $ | — | $ | 6,704 |
Six Months Ended December 31, 2015 | ||||||||||||||||
Automotive | Advertising | Mobile Navigation | Total | |||||||||||||
Deferred revenue, December 31 | $ | 12,443 | $ | — | $ | 1,408 | $ | 13,851 | ||||||||
Deferred revenue, June 30 | 5,192 | — | 1,636 | 6,828 | ||||||||||||
Increase (decrease) in deferred revenue | $ | 7,251 | $ | — | $ | (228 | ) | $ | 7,023 | |||||||
Deferred costs, December 31 | $ | 7,443 | $ | — | $ | — | $ | 7,443 | ||||||||
Deferred costs, June 30 | 3,141 | — | — | 3,141 | ||||||||||||
Increase in deferred costs | $ | 4,302 | $ | — | $ | — | $ | 4,302 |
Reconciliation of Net Loss to Adjusted EBITDA | ||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net loss | $ | (11,423 | ) | $ | (6,639 | ) | $ | (20,758 | ) | $ | (17,485 | ) | ||||
Adjustments: | ||||||||||||||||
Legal settlement and contingencies | 6,424 | 750 | 6,424 | 750 | ||||||||||||
Restructuring accrual (reversal) | — | (1,468 | ) | — | (1,468 | ) | ||||||||||
Deferred rent reversal due to lease termination | — | (621 | ) | — | (621 | ) | ||||||||||
Stock-based compensation expense | 1,988 | 3,180 | 4,529 | 6,267 | ||||||||||||
Depreciation and amortization | 623 | 847 | 1,260 | 1,916 | ||||||||||||
Other income (expense), net | (714 | ) | (520 | ) | (1,010 | ) | (333 | ) | ||||||||
Provision for income taxes | 537 | 327 | 142 | 440 | ||||||||||||
Adjusted EBITDA | $ | (2,565 | ) | $ | (4,144 | ) | $ | (9,413 | ) | $ | (10,534 | ) | ||||
Change in deferred revenue | 7,686 | 3,182 | 12,728 | 7,023 | ||||||||||||
Change in deferred costs(1) | (3,847 | ) | (1,629 | ) | (6,704 | ) | (4,302 | ) | ||||||||
Adjusted EBITDA on billings(1) | $ | 1,274 | $ | (2,591 | ) | $ | (3,389 | ) | $ | (7,813 | ) | |||||
(1) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. |
Reconciliation of Net Loss to Free Cash Flow | ||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net loss | $ | (11,423 | ) | $ | (6,639 | ) | $ | (20,758 | ) | $ | (17,485 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Increase in deferred revenue (1) | 7,686 | 3,182 | 12,728 | 7,023 | ||||||||||||
Increase in deferred costs (2) | (3,847 | ) | (1,629 | ) | (6,704 | ) | (4,302 | ) | ||||||||
Changes in other operating assets and liabilities | 7,595 | 81 | 5,686 | (986 | ) | |||||||||||
Other adjustments (3) | 2,779 | 4,212 | 6,149 | 9,088 | ||||||||||||
Net cash used in operating activities | 2,790 | (793 | ) | (2,899 | ) | (6,662 | ) | |||||||||
Less: Purchases of property and equipment | (137 | ) | (90 | ) | (531 | ) | (332 | ) | ||||||||
Free cash flow | $ | 2,653 | $ | (883 | ) | $ | (3,430 | ) | $ | (6,994 | ) | |||||
(1) Consists of royalties, customized software development fees and subscription fees. | ||||||||||||||||
(2) Consists primarily of third party content costs and customized software development expenses. | ||||||||||||||||
(3) Consist primarily of depreciation and amortization, stock-based compensation expense and other non-cash items. |
Non-GAAP metrics for the Advertising segment and the combined Automotive and Mobile Navigation segments | ||||||||||||||||||||||||
Three Months Ended December 31, 2016 | ||||||||||||||||||||||||
GAAP Consolidated | Non-GAAP Consolidated | Non-GAAP Advertising | Automotive (1) | Mobile Navigation (1) | Total Non-GAAP Automotive and Mobile Navigation (1) | |||||||||||||||||||
Revenue | $ | 52,001 | $ | 8,208 | $ | 38,744 | $ | 5,049 | $ | 43,793 | ||||||||||||||
Cost of revenue | 28,727 | 3,919 | 23,438 | 1,370 | 24,808 | |||||||||||||||||||
Gross profit | 23,274 | 4,289 | $ | 15,306 | $ | 3,679 | 18,985 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 16,301 | 1,235 | (2) | 15,066 | ||||||||||||||||||||
Sales and marketing | 5,277 | 2,568 | (2) | 2,709 | ||||||||||||||||||||
General and administrative | 6,872 | 410 | (3) | 6,462 | ||||||||||||||||||||
Legal settlement and contingencies | 6,424 | — | (4) | 6,424 | ||||||||||||||||||||
Total operating expenses | 34,874 | 4,213 | 30,661 | |||||||||||||||||||||
Income (loss) from operations | (11,600 | ) | 76 | (11,676 | ) | |||||||||||||||||||
Other income (expense), net | 714 | — | (5) | 714 | ||||||||||||||||||||
Income (loss) before provision for income taxes | (10,886 | ) | 76 | (10,962 | ) | |||||||||||||||||||
Provision for income taxes | 537 | — | (6) | 537 | ||||||||||||||||||||
Net income (loss) | $ | (11,423 | ) | $ | (11,423 | ) | $ | 76 | $ | (11,499 | ) | |||||||||||||
Adjustments: | ||||||||||||||||||||||||
Legal settlement and contingencies | 6,424 | — | (4) | 6,424 | ||||||||||||||||||||
Stock-based compensation expense | 1,988 | 286 | (2) | 1,702 | ||||||||||||||||||||
Depreciation and amortization expense | 623 | 51 | (2) | 572 | ||||||||||||||||||||
Other income (expense), net | (714 | ) | — | (5) | (714 | ) | ||||||||||||||||||
Provision for income taxes | 537 | — | (6) | 537 | ||||||||||||||||||||
Adjusted EBITDA | $ | (2,565 | ) | $ | 413 | $ | (2,978 | ) | ||||||||||||||||
Change in deferred revenue | 7,686 | — | 7,686 | |||||||||||||||||||||
Change in deferred costs(7) | (3,847 | ) | — | (3,847 | ) | |||||||||||||||||||
Adjusted EBITDA on billings(7) | $ | 1,274 | $ | 413 | $ | 861 | ||||||||||||||||||
(1) Automotive and mobile navigation segments share many of the same technologies and resources. Accordingly, we are unable to allocate the operating expenses, other income (expense), net and provision (benefit) for income taxes to one segment versus the other. | ||||||||||||||||||||||||
For purposes of calculating the Non-GAAP net loss attributable to the advertising segment: | ||||||||||||||||||||||||
(2) These expenses represent costs directly attributable to the advertising segment. | ||||||||||||||||||||||||
(3) These expenses represent actual general and administrative costs directly attributable to the advertising segment as well as an allocation of certain shared corporate costs that directly benefit the advertising segment such as accounting and human resource services. | ||||||||||||||||||||||||
(4) Legal settlement and contingencies are not related to the advertising segment. | ||||||||||||||||||||||||
(5) Expenses or income cannot be directly allocated to the advertising segment. | ||||||||||||||||||||||||
(6) Income taxes are primarily from foreign operations which support the automotive and mobile navigation segments. | ||||||||||||||||||||||||
(7) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. |
Non-GAAP metrics for the Advertising segment and the combined Automotive and Mobile Navigation segments | ||||||||||||||||||||||||
Three Months Ended December 31, 2015 | ||||||||||||||||||||||||
GAAP Consolidated | Non-GAAP Consolidated | Non-GAAP Advertising | Automotive (1) | Mobile Navigation (1) | Total Non-GAAP Automotive and Mobile Navigation (1) | |||||||||||||||||||
Revenue | $ | 45,253 | $ | 6,688 | $ | 31,846 | $ | 6,719 | $ | 38,565 | ||||||||||||||
Cost of revenue | 24,532 | 3,755 | 18,931 | 1,846 | 20,777 | |||||||||||||||||||
Gross profit | 20,721 | 2,933 | $ | 12,915 | $ | 4,873 | 17,788 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 16,653 | 1,051 | (2) | 15,602 | ||||||||||||||||||||
Sales and marketing | 6,524 | 3,661 | (2) | 2,863 | ||||||||||||||||||||
General and administrative | 5,094 | 503 | (3) | 4,591 | ||||||||||||||||||||
Legal settlement and contingencies | 750 | — | (4) | 750 | ||||||||||||||||||||
Restructuring | (1,468 | ) | (375 | ) | (2) | (1,093 | ) | |||||||||||||||||
Total operating expenses | 27,553 | 4,840 | 22,713 | |||||||||||||||||||||
Loss from operations | (6,832 | ) | (1,907 | ) | (4,925 | ) | ||||||||||||||||||
Other income (expense), net | 520 | — | (5) | 520 | ||||||||||||||||||||
Loss before provision for income taxes | (6,312 | ) | (1,907 | ) | (4,405 | ) | ||||||||||||||||||
Provision for income taxes | 327 | — | (6) | 327 | ||||||||||||||||||||
Net loss | $ | (6,639 | ) | $ | (6,639 | ) | $ | (1,907 | ) | $ | (4,732 | ) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Legal settlement and contingencies | 750 | — | (4) | 750 | ||||||||||||||||||||
Stock-based compensation expense | 3,180 | 337 | (2) | 2,843 | ||||||||||||||||||||
Restructuring | (1,468 | ) | (375 | ) | (2) | (1,093 | ) | |||||||||||||||||
Deferred rent reversal due to lease termination | (621 | ) | (159 | ) | (2) | (462 | ) | |||||||||||||||||
Depreciation and amortization expense | 847 | 203 | (2) | 644 | ||||||||||||||||||||
Other income (expense), net | (520 | ) | — | (5) | (520 | ) | ||||||||||||||||||
Provision for income taxes | 327 | — | (6) | 327 | ||||||||||||||||||||
Adjusted EBITDA | $ | (4,144 | ) | $ | (1,901 | ) | $ | (2,243 | ) | |||||||||||||||
Change in deferred revenue | 3,182 | — | 3,182 | |||||||||||||||||||||
Change in deferred costs(7) | (1,629 | ) | — | (1,629 | ) | |||||||||||||||||||
Adjusted EBITDA on billings(7) | $ | (2,591 | ) | $ | (1,901 | ) | $ | (690 | ) | |||||||||||||||
(1) Automotive and mobile navigation segments share many of the same technologies and resources. Accordingly, we are unable to allocate the operating expenses, other income (expense), net and provision (benefit) for income taxes to one segment versus the other. | ||||||||||||||||||||||||
For purposes of calculating the Non-GAAP net loss attributable to the advertising segment : | ||||||||||||||||||||||||
(2) These expenses represent costs directly attributable to the advertising segment. | ||||||||||||||||||||||||
(3) These expenses represent actual general and administrative costs directly attributable to the advertising segment as well as an allocation of certain shared corporate costs that directly benefit the advertising segment such as accounting and human resource services. | ||||||||||||||||||||||||
(4) Legal settlement and contingencies are not related to the advertising segment. | ||||||||||||||||||||||||
(5) Expenses or income cannot be directly allocated to the advertising segment. | ||||||||||||||||||||||||
(6) Income taxes are primarily from foreign operations which support the automotive and mobile navigation segments. | ||||||||||||||||||||||||
(7) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. |
Non-GAAP metrics for the Advertising segment and the combined Automotive and Mobile Navigation segments | ||||||||||||||||||||||||
Six Months Ended December 31, 2016 | ||||||||||||||||||||||||
GAAP Consolidated | Non-GAAP Consolidated | Non-GAAP Advertising | Automotive (1) | Mobile Navigation (1) | Total Non-GAAP Automotive and Mobile Navigation (1) | |||||||||||||||||||
Revenue | $ | 94,228 | $ | 14,753 | $ | 69,011 | $ | 10,464 | $ | 79,475 | ||||||||||||||
Cost of revenue | 52,203 | 7,445 | 41,983 | 2,775 | 44,758 | |||||||||||||||||||
Gross profit | 42,025 | 7,308 | $ | 27,028 | $ | 7,689 | 34,717 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 34,319 | 2,408 | (2) | 31,911 | ||||||||||||||||||||
Sales and marketing | 10,545 | 5,038 | (2) | 5,507 | ||||||||||||||||||||
General and administrative | 12,363 | 873 | (3) | 11,490 | ||||||||||||||||||||
Legal settlement and contingencies | 6,424 | — | (4) | 6,424 | ||||||||||||||||||||
Total operating expenses | 63,651 | 8,319 | 55,332 | |||||||||||||||||||||
Loss from operations | (21,626 | ) | (1,011 | ) | (20,615 | ) | ||||||||||||||||||
Other income (expense), net | 1,010 | — | (5) | 1,010 | ||||||||||||||||||||
Loss before provision for income taxes | (20,616 | ) | (1,011 | ) | (19,605 | ) | ||||||||||||||||||
Provision for income taxes | 142 | — | (6) | 142 | ||||||||||||||||||||
Net loss | $ | (20,758 | ) | $ | (20,758 | ) | $ | (1,011 | ) | $ | (19,747 | ) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Legal settlement and contingencies | 6,424 | — | (4) | 6,424 | ||||||||||||||||||||
Stock-based compensation expense | 4,529 | 485 | (2) | 4,044 | ||||||||||||||||||||
Depreciation and amortization expense | 1,260 | 103 | (2) | 1,157 | ||||||||||||||||||||
Other income (expense), net | (1,010 | ) | — | (5) | (1,010 | ) | ||||||||||||||||||
Provision for income taxes | 142 | — | (6) | 142 | ||||||||||||||||||||
Adjusted EBITDA | $ | (9,413 | ) | $ | (423 | ) | $ | (8,990 | ) | |||||||||||||||
Change in deferred revenue | 12,728 | — | 12,728 | |||||||||||||||||||||
Change in deferred costs(7) | (6,704 | ) | — | (6,704 | ) | |||||||||||||||||||
Adjusted EBITDA on billings(7) | $ | (3,389 | ) | $ | (423 | ) | $ | (2,966 | ) | |||||||||||||||
(1) Automotive and mobile navigation segments share many of the same technologies and resources. Accordingly, we are unable to allocate the operating expenses, other income (expense), net and provision (benefit) for income taxes to one segment versus the other. | ||||||||||||||||||||||||
For purposes of calculating the Non-GAAP net loss attributable to the advertising segment: | ||||||||||||||||||||||||
(2) These expenses represent costs directly attributable to the advertising segment. | ||||||||||||||||||||||||
(3) These expenses represent actual general and administrative costs directly attributable to the advertising segment as well as an allocation of certain shared corporate costs that directly benefit the advertising segment such as accounting and human resource services. | ||||||||||||||||||||||||
(4) Legal settlement and contingencies are not related to the advertising segment. | ||||||||||||||||||||||||
(5) Expenses or income cannot be directly allocated to the advertising segment. | ||||||||||||||||||||||||
(6) Income taxes are primarily from foreign operations which support the automotive and mobile navigation segments. | ||||||||||||||||||||||||
(7) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. |
Non-GAAP metrics for the Advertising segment and the combined Automotive and Mobile Navigation segments | ||||||||||||||||||||||||
Six Months Ended December 31, 2015 | ||||||||||||||||||||||||
GAAP Consolidated | Non-GAAP Consolidated | Non-GAAP Advertising | Automotive (1) | Mobile Navigation (1) | Total Non-GAAP Automotive and Mobile Navigation (1) | |||||||||||||||||||
Revenue | $ | 89,314 | $ | 11,539 | $ | 63,589 | $ | 14,186 | $ | 77,775 | ||||||||||||||
Cost of revenue | 47,919 | 6,750 | 37,452 | 3,717 | 41,169 | |||||||||||||||||||
Gross profit | 41,395 | 4,789 | $ | 26,137 | $ | 10,469 | 36,606 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 34,640 | 2,530 | (2) | 32,110 | ||||||||||||||||||||
Sales and marketing | 13,522 | 7,491 | (2) | 6,031 | ||||||||||||||||||||
General and administrative | 11,329 | 1,044 | (3) | 10,285 | ||||||||||||||||||||
Legal settlement and contingencies | 750 | — | (4) | 750 | ||||||||||||||||||||
Restructuring | (1,468 | ) | (375 | ) | (2) | (1,093 | ) | |||||||||||||||||
Total operating expenses | 58,773 | 10,690 | 48,083 | |||||||||||||||||||||
Loss from operations | (17,378 | ) | (5,901 | ) | (11,477 | ) | ||||||||||||||||||
Other income (expense), net | 333 | — | (5) | 333 | ||||||||||||||||||||
Loss before provision for income taxes | (17,045 | ) | (5,901 | ) | (11,144 | ) | ||||||||||||||||||
Provision for income taxes | 440 | — | (6) | 440 | ||||||||||||||||||||
Net loss | $ | (17,485 | ) | $ | (17,485 | ) | $ | (5,901 | ) | $ | (11,584 | ) | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Legal settlement and contingencies | 750 | — | (4) | 750 | ||||||||||||||||||||
Stock-based compensation expense | 6,267 | 659 | (2) | 5,608 | ||||||||||||||||||||
Restructuring | (1,468 | ) | (375 | ) | (2) | (1,093 | ) | |||||||||||||||||
Deferred rent reversal due to lease termination | (621 | ) | (159 | ) | (2) | (462 | ) | |||||||||||||||||
Depreciation and amortization expense | 1,916 | 656 | (2) | 1,260 | ||||||||||||||||||||
Other income (expense), net | (333 | ) | — | (5) | (333 | ) | ||||||||||||||||||
Provision for income taxes | 440 | — | (6) | 440 | ||||||||||||||||||||
Adjusted EBITDA | $ | (10,534 | ) | $ | (5,120 | ) | $ | (5,414 | ) | |||||||||||||||
Change in deferred revenue | 7,023 | — | 7,023 | |||||||||||||||||||||
Change in deferred costs(7) | (4,302 | ) | — | (4,302 | ) | |||||||||||||||||||
Adjusted EBITDA on billings(7) | $ | (7,813 | ) | $ | (5,120 | ) | $ | (2,693 | ) | |||||||||||||||
(1) Automotive and mobile navigation segments share many of the same technologies and resources. Accordingly, we are unable to allocate the operating expenses, other income (expense), net and provision (benefit) for income taxes to one segment versus the other. | ||||||||||||||||||||||||
For purposes of calculating the Non-GAAP net loss attributable to the advertising segment : | ||||||||||||||||||||||||
(2) These expenses represent costs directly attributable to the advertising segment. | ||||||||||||||||||||||||
(3) These expenses represent actual general and administrative costs directly attributable to the advertising segment as well as an allocation of certain shared corporate costs that directly benefit the advertising segment such as accounting and human resource services. | ||||||||||||||||||||||||
(4) Legal settlement and contingencies are not related to the advertising segment. | ||||||||||||||||||||||||
(5) Expenses or income cannot be directly allocated to the advertising segment. | ||||||||||||||||||||||||
(6) Income taxes are primarily from foreign operations which support the automotive and mobile navigation segments. | ||||||||||||||||||||||||
(7) We expect to incur additional costs in the future due to requirements to provide ongoing provisioning of services such as hosting, monitoring and customer support. Accordingly, adjusted EBITDA on billings does not reflect all costs associated with billings. |
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
Consolidated Statements of Operations Data | 2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | ||||||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 37,804 | $ | 31,160 | $ | 67,227 | $ | 62,269 | ||||||||
Services | 14,197 | 14,093 | 27,001 | 27,045 | ||||||||||||
Total revenue | 52,001 | 45,253 | 94,228 | 89,314 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Product | 22,598 | 18,364 | 40,359 | 36,447 | ||||||||||||
Services | 6,129 | 6,168 | 11,844 | 11,472 | ||||||||||||
Total cost of revenue | 28,727 | 24,532 | 52,203 | 47,919 | ||||||||||||
Gross profit | 23,274 | 20,721 | 42,025 | 41,395 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 16,301 | 16,653 | 34,319 | 34,640 | ||||||||||||
Sales and marketing | 5,277 | 6,524 | 10,545 | 13,522 | ||||||||||||
General and administrative | 6,872 | 5,094 | 12,363 | 11,329 | ||||||||||||
Legal settlement and contingencies | 6,424 | 750 | 6,424 | 750 | ||||||||||||
Restructuring | — | (1,468 | ) | — | (1,468 | ) | ||||||||||
Total operating expenses | 34,874 | 27,553 | 63,651 | 58,773 | ||||||||||||
Loss from operations | (11,600 | ) | (6,832 | ) | (21,626 | ) | (17,378 | ) | ||||||||
Other income (expense), net | 714 | 520 | 1,010 | 333 | ||||||||||||
Loss before provision for income taxes | (10,886 | ) | (6,312 | ) | (20,616 | ) | (17,045 | ) | ||||||||
Provision for income taxes | 537 | 327 | 142 | 440 | ||||||||||||
Net loss | $ | (11,423 | ) | $ | (6,639 | ) | $ | (20,758 | ) | $ | (17,485 | ) |
(as a percentage of revenue) | ||||||||||||
Revenue: | ||||||||||||
Product | 73 | % | 69 | % | 71 | % | 70 | % | ||||
Services | 27 | % | 31 | % | 29 | % | 30 | % | ||||
Total revenue | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Cost of revenue: | ||||||||||||
Product | 43 | % | 40 | % | 43 | % | 41 | % | ||||
Services | 12 | % | 14 | % | 13 | % | 13 | % | ||||
Total cost of revenue | 55 | % | 54 | % | 55 | % | 54 | % | ||||
Gross profit | 45 | % | 46 | % | 45 | % | 46 | % | ||||
Operating expenses: | ||||||||||||
Research and development | 31 | % | 37 | % | 37 | % | 39 | % | ||||
Sales and marketing | 10 | % | 14 | % | 11 | % | 15 | % | ||||
General and administrative | 13 | % | 11 | % | 13 | % | 13 | % | ||||
Legal settlement and contingencies | 13 | % | 2 | % | 7 | % | 1 | % | ||||
Restructuring | — | % | (3 | )% | — | % | (2 | )% | ||||
Total operating expenses | 67 | % | 61 | % | 68 | % | 66 | % | ||||
Loss from operations | (22 | )% | (15 | )% | (23 | )% | (20 | )% | ||||
Other income (expense), net | 1 | % | 1 | % | 1 | % | — | % | ||||
Loss before provision for income taxes | (21 | )% | (14 | )% | (22 | )% | (20 | )% | ||||
Provision for income taxes | 1 | % | 1 | % | — | % | — | % | ||||
Net loss | (22 | )% | (15 | )% | (22 | )% | (20 | )% |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue | ||||||||||||||||
Automotive | $ | 38,744 | $ | 31,846 | $ | 69,011 | $ | 63,589 | ||||||||
Advertising | 8,208 | 6,688 | 14,753 | 11,539 | ||||||||||||
Mobile Navigation | 5,049 | 6,719 | 10,464 | 14,186 | ||||||||||||
Total revenue | 52,001 | 45,253 | 94,228 | 89,314 | ||||||||||||
Cost of revenue | ||||||||||||||||
Automotive | 23,438 | 18,931 | 41,983 | 37,452 | ||||||||||||
Advertising | 3,919 | 3,755 | 7,445 | 6,750 | ||||||||||||
Mobile Navigation | 1,370 | 1,846 | 2,775 | 3,717 | ||||||||||||
Total cost of revenue | 28,727 | 24,532 | 52,203 | 47,919 | ||||||||||||
Gross profit | ||||||||||||||||
Automotive | 15,306 | 12,915 | 27,028 | 26,137 | ||||||||||||
Advertising | 4,289 | 2,933 | 7,308 | 4,789 | ||||||||||||
Mobile Navigation | 3,679 | 4,873 | 7,689 | 10,469 | ||||||||||||
Total gross profit | $ | 23,274 | $ | 20,721 | $ | 42,025 | $ | 41,395 | ||||||||
Gross margin | ||||||||||||||||
Automotive | 40 | % | 41 | % | 39 | % | 41 | % | ||||||||
Advertising | 52 | % | 44 | % | 50 | % | 42 | % | ||||||||
Mobile Navigation | 73 | % | 73 | % | 73 | % | 74 | % | ||||||||
Total gross margin | 45 | % | 46 | % | 45 | % | 46 | % |
Six Months Ended | ||||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Net cash used in operating activities | $ | (2,899 | ) | $ | (6,662 | ) | ||
Net cash provided by investing activities | 1,319 | 2,055 | ||||||
Net cash used in financing activities | (1,479 | ) | (1,445 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (596 | ) | (576 | ) | ||||
Net decrease in cash and cash equivalents | $ | (3,655 | ) | $ | (6,628 | ) |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
• | the ability of automobile manufacturers to sell automobiles equipped with our products; |
• | the introduction of competitive in-car platforms and products, such as Apple's CarPlay and Google's auto initiatives; |
• | the recent demonstration by Google of in-car integration of Android Auto with Google Maps which did not require a mobile handset; |
• | investments made by HERE and TomTom in high definition maps that may be leveraged to displace Telenav at our current customers; |
• | changes made to existing contractual obligations with a customer that may affect the nature and timing of revenue recognition, such as the transition by Ford to its SYNC 3 platform, for which we have different revenue recognition |
• | the seasonality of new vehicle model introductions and consumer buying patterns, as well as the effects of economic uncertainty on vehicle purchases, particularly outside of the United States; |
• | the effectiveness of our entry into new business areas, such as advertising; |
• | the loss of our relationship, a change in our revenue model, or a change in pricing with any particular customer; |
• | poor reviews of automotive service offerings into which our navigation solutions are integrated resulting in limited uptake of navigation options by car buyers; |
• | warranty claims based on the performance of our products and the potential impact on our reputation with navigation users and automotive OEMs; |
• | the timing and quality of information we receive from our customers; |
• | the inability of our auto manufacturer customers to attract new end users; |
• | the amount and timing of operating costs and capital expenditures related to the expansion of our operations and infrastructure through acquisitions or organic growth; |
• | the timing of expenses related to the development or acquisition of technologies, products or businesses; |
• | the cost and potential outcomes of existing and future litigation; |
• | the timing and success of new product or service introductions by us or our competitors; |
• | the timing and success of marketing expenditures for our products and services; |
• | the extent of any interruption in our services; |
• | potential foreign currency exchange gains and losses associated with expenses and sales denominated in currencies other than the U.S. dollar; |
• | general economic, industry and market conditions that impact expenditures for new vehicles, smartphones and mobile location services in the United States and other countries where we sell our services and products; |
• | changes in interest rates and our mix of investments, which would impact our return on our investments in cash and marketable securities; |
• | changes in our effective tax rates; and |
• | the impact of new accounting pronouncements such as ASC 606, Revenue Recognition. |
• | the provision of their services at no or low cost to consumers; |
• | significantly greater revenue and financial resources; |
• | stronger brand and consumer recognition regionally or worldwide; |
• | the capacity to leverage their marketing expenditures across a broader portfolio of mobile and non-mobile products; |
• | access to core technology and intellectual property, including more extensive patent portfolios; |
• | access to custom or proprietary content; |
• | quicker pace of innovation; |
• | stronger wireless carrier, automotive, handset manufacturer and advertising agency relationships; |
• | stronger international presence, which could make our larger competitors more attractive partners to automotive manufacturers and OEMs; |
• | greater resources to make and integrate acquisitions; |
• | lower labor and development costs; and |
• | broader global distribution and presence. |
• | difficulties in integrating and managing the operations, technologies and products of the companies we acquire, that are geographically remote from our existing operations; |
• | diversion of our management’s attention from normal daily operation of our business; |
• | our inability to maintain the key business relationships and the reputations of the businesses we acquire; |
• | our inability to retain key personnel of the companies we acquire; |
• | uncertainty of entry into markets in which we have limited or no prior experience and in which competitors have stronger market positions; |
• | our dependence on unfamiliar affiliates and customers of the companies we acquire; |
• | insufficient revenue to offset our increased expenses associated with acquisitions; |
• | our responsibility for the liabilities of the businesses we acquire, including those which we may not anticipate; and |
• | our inability to maintain internal standards, controls, procedures and policies. |
• | impact from our inability to benefit from the carryback of net losses expected in the current fiscal year and thereafter due to the limitations of the two year loss carryback for federal tax purposes. |
• | changes in forecasted annual operating income or loss by jurisdiction and forecasted withholding taxes; |
• | changes in relative proportions of revenue and income or loss before taxes in the various jurisdictions in which we operate; |
• | changes to the valuation allowance on net deferred tax assets; |
• | changes to actual or forecasted permanent differences between book and tax reporting, including the tax effects of purchase accounting for acquisitions and non-recurring charges which may cause fluctuations between reporting periods; |
• | impact from any future tax settlements with state, federal or foreign tax authorities; |
• | impact from increases or decreases in tax reserves due to new assessments of risk, the expiration of the statute of limitations or the completion of government audits; |
• | impact from changes in tax laws, regulations and interpretations in the jurisdictions in which we operate, as well as the requirements of certain tax rulings; |
• | impact from withholding tax requirements in various non-U.S. jurisdictions and our ability to recoup those withholdings, which may depend on how much revenue we have in a particular jurisdiction to offset the related expenses; |
• | impact from acquisitions and related integration activities; or |
• | impact from new FASB requirements. |
• | damage to or failure of our computer software or hardware or our connections and outsourced service arrangements with third parties; |
• | errors in the processing of data; |
• | computer viruses or software defects; |
• | physical or electronic break-ins, sabotage, intentional acts of vandalism and similar events; or |
• | errors by our employees or third party service providers. |
• | fluctuations in currency exchange rates; |
• | unexpected changes in foreign regulatory requirements; |
• | difficulties in managing the staffing of remote operations; |
• | potentially adverse tax consequences, including the complexities of foreign value added tax systems, foreign tax withholding, restrictions on the repatriation of earnings and changes in tax rates; |
• | difficulties in collecting accounts receivable balances in a timely manner; |
• | dependence on foreign wireless carriers with different pricing models; |
• | roaming charges to end users; |
• | availability of reliable mobile networks in those countries; |
• | requirements that we comply with local telecommunication regulations and automobile hands free laws in those countries; |
• | the burdens of complying with a wide variety of foreign laws and different legal standards; |
• | increased financial accounting and reporting burdens and complexities; |
• | political, social and economic instability in some jurisdictions; |
• | terrorist attacks and security concerns in general; and |
• | reduced or varied protection for intellectual property rights in some countries. |
• | adversely affect our relationships with our current or future customers and other business partners; |
• | cause delays or stoppages in the shipment of Telenav enabled or preloaded mobile phones or vehicles, or cause us to modify or suspend the provision of our navigation services; |
• | cause us to incur significant expenses in defending claims brought against our customers, other business partners or us; |
• | divert management's attention and resources; |
• | subject us to significant damages or settlements; |
• | require us to enter into settlements, royalty or licensing agreements on unfavorable terms; or |
• | require us or our business partners to cease certain activities and/or modify our products or services. |
• | actual or anticipated fluctuations in our operating results; |
• | changes in the financial projections we may provide to the public or our failure to meet these projections; |
• | announcements by us or our competitors of significant technical innovations, relationship changes with key customers, acquisitions, strategic partnerships, joint ventures, capital raising activities or capital commitments; |
• | the public’s response to our press releases or other public announcements, including our filings with the SEC; |
• | lawsuits threatened or filed against us; and |
• | large distributions of our common stock by significant stockholders to limited partners or others who immediately resell the shares. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 6. | Exhibits. |
Exhibit Number | Description | Incorporated by Reference From Form | Incorporated by Reference From Exhibit Number | Date Filed | ||||
10.16.36+ | Second Amendment, effective December 5, 2016, to Amended and Restated Territory License No. 8, dated April 1, 2014, by and between HERE North America, LLC and Telenav, Inc. | Filed herewith | ||||||
10.16.37+ | Third Amendment, effective December 6, 2016, to Territory License No. 9, dated February 1, 2014, by and between HERE North America, LLC and Telenav, Inc. | Filed herewith | ||||||
10.16.38+ | Second Amendment, effective December 6, 2016, to Territory License No. 11, dated April 3, 2015, by and between HERE North America, LLC and Telenav, Inc. | Filed herewith | ||||||
10.26.20+ | Amendment No. 20, effective January 1, 2016, to the SYNC Generation 2 On-Board Navigation Agreement dated October 12, 2009, by and between Telenav, Inc. and Ford Motor Company | Filed herewith | ||||||
31.1 | Certification Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of President and Chief Executive Officer | Filed herewith | ||||||
31.2 | Certification Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Financial Officer | Filed herewith | ||||||
32.1~ | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of President and Chief Executive Officer | Furnished herewith | ||||||
32.2~ | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Chief Financial Officer | Furnished herewith | ||||||
101.INS | XBRL Instance Document | Filed herewith | ||||||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||||||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | Filed herewith | ||||||
101.DEF | XBRL Taxonomy Definition Linkbase Document | Filed herewith | ||||||
101.LAB | XBRL Taxonomy Label Linkbase Document | Filed herewith | ||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith |
+ | Portions of the exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. |
~ | In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 33-8238 and 34-47986, Final Rule: Management’s Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. |
TELENAV, INC. | |||||
Dated: | February 3, 2017 | By: | /s/ Dr. HP JIN | ||
Dr. HP Jin | |||||
President and Chief Executive Officer | |||||
Dated: | February 3, 2017 | By: | /s/ MICHAEL STRAMBI | ||
Michael Strambi | |||||
Chief Financial Officer and Treasurer | |||||
(Principal Financial and Accounting Officer) |
Exhibit Number | Description | Incorporated by Reference From Form | Incorporated by Reference From Exhibit Number | Date Filed | ||||
10.16.36+ | Second Amendment, effective December 5, 2016, to Amended and Restated Territory License No. 8, dated April 1, 2014, by and between HERE North America, LLC and Telenav, Inc. | Filed herewith | ||||||
10.16.37+ | Third Amendment, effective December 6, 2016, to Territory License No. 9, dated February 1, 2014, by and between HERE North America, LLC and Telenav, Inc. | Filed herewith | ||||||
10.16.38+ | Second Amendment, effective December 6, 2016, to Territory License No. 11, dated April 3, 2015, by and between HERE North America, LLC and Telenav, Inc. | Filed herewith | ||||||
10.26.20+ | Amendment No. 20, effective January 1, 2016, to the SYNC Generation 2 On-Board Navigation Agreement dated October 12, 2009, by and between Telenav, Inc. and Ford Motor Company | Filed herewith | ||||||
31.1 | Certification Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of President and Chief Executive Officer | Filed herewith | ||||||
31.2 | Certification Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Chief Financial Officer | Filed herewith | ||||||
32.1~ | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of President and Chief Executive Officer | Furnished herewith | ||||||
32.2~ | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Chief Financial Officer | Furnished herewith | ||||||
101.INS | XBRL Instance Document | Filed herewith | ||||||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||||||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | Filed herewith | ||||||
101.DEF | XBRL Taxonomy Definition Linkbase Document | Filed herewith | ||||||
101.LAB | XBRL Taxonomy Label Linkbase Document | Filed herewith | ||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith |
+ | Portions of the exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. |
~ | In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 33-8238 and 34-47986, Final Rule: Management’s Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. |
SECOND AMENDMENT TO AMENDED AND RESTATED TERRITORY LICENSE NO. 8 |
1. | Exhibit A. |
A. | Additional Content. The following Additional Content is hereby added to Section I(6) (License Fee for [*****]) of Exhibit A of TL 8: |
• | [*****] Content |
B. | Pricing. Section 2 (Pricing) of the First Amendment is hereby deleted in its entirety and replaced with the following: |
Table 1 - [*****] for [*****] | |
[*****] | Per [*****] |
Through the end of calendar year [*****] | $[*****] |
Amendment 2 to Amended and Restated TL 8 [Telenav, Inc.][NA Automotive PR-014470, PR-013321][10-25-16 lee] | Page 1 of 2 |
HERE NORTH AMERICA, LLC | TELENAV, INC. | |||
By: | /s/ Lori Bellows | By: | /s/Michael Strambi | |
Name: | Lori Bellows | Name: | Michael Strambi | |
Title: | HERE Legal | Title: | Chief Financial Officer | |
Date: | 12/5/2016 | Date: | 11/17/2016 | |
HERE NORTH AMERICA, LLC | ||||
By: | /s/ Jeannie Lee Newman | |||
Name: | Jeannie Lee Newman | |||
Title: | Senior Legal Counsel | |||
Date: | 12/5/2016 |
Amendment 2 to Amended and Restated TL 8 [Telenav, Inc.][NA Automotive PR-014470, PR-013321][10-25-16 lee] | Page 2 of 2 |
1. | Exhibit D (Pricing). The first paragraph under Exhibit D to TL 9 is hereby deleted in its entirety and replaced with the following: |
2. | Except as modified hereunder, all other terms and conditions of the Agreement shall stay in full force and effect. |
1. | [******]Territory Definition. The following country is hereby added to the definition of Territory under Section I of TL 11 (Terms and Conditions): |
2. | Exhibit A. |
A. | The following Additional Content is hereby added to Content Bundle A, Content Bundle B and Content Bundle C tables in Section I (4) License Fees for [******] Territory of Exhibit A to TL 11: |
B. | The following table is hereby added to the [******]Territory Additional Content Fee table in Section I (4) License Fees for [******] Territory of Exhibit A to TL 11: |
[******] Territory Additional Content Fee | Additional LICENSE FEE PER COPY |
[******] | $[******]* |
C. | The following new Section I (7) is hereby added to Section I of Exhibit A to TL 11: |
[******] TERRITORY | LICENSE FEE PER COPY IN US DOLLARS |
CONTENT BUNDLE A | |
[******] | $[******] |
[******]TERRITORY | LICENSE FEE PER COPY |
CONTENT BUNDLE B | |
[******] | $[******] |
[******]TERRITORY | LICENSE FEE PER COPY |
CONTENT BUNDLE C | |
[******] | $[******] |
D. | The following Additional Content is hereby added to Content Bundle A, Content Bundle B and Content Bundle C tables in Section I (5) License Fees for [******]of Exhibit A to TL 11: |
E. | The following Additional Content is hereby added to Content Bundle A, Content Bundle B and Content Bundle C tables in Section I (2) License Fees for [******]Territory of Exhibit A to TL 11: |
F. | Multi-Year Annual Copy Subscriptions for [******] Applications. Section IV of Exhibit A to TL 11 is hereby deleted in its entirety and replaced with the following: |
IV. | Multi-Year Annual Copy Subscriptions for [******] Applications. During the TL Term, for each [******] Subscription for [******] Applications, the License Fee per Copy for the applicable Territory specified herein is calculated by multiplying (i) the Per Copy License Fees for the applicable [******] by (ii) [******] provided in Table 1 below based upon the [******] as provided in Table 1. |
Table 1 – License Fees - Multi-Year Annual Copy Subscriptions | |||||
Program | [******] | [******] | [******] | [******] | |
[******] | [******] | [******] | [******] | [******] |
3. | Except as modified hereunder, all other terms and conditions of the Agreement shall stay in full force and effect. |
HERE NORTH AMERICA, LLC | Telenav, Inc. | |
By: /s/ Lori Bellows | By: /s/ Michael Strambi | |
Name: Lori Bellows | Name: Michael Strambi | |
Title: HERE Legal | Title: Chief Financial Officer | |
Date: 12/06/2016 | Date: 11/23/2016 | |
HERE NORTH AMERICA, LLC | ||
By: /s/ Jeannie Lee Newman | ||
Name: Jeannie Lee Newman | ||
Title: Senior Legal Counsel | ||
Date: 12/06/16 |
1. | In Attachment V, Section 3, under the heading “For Gen 2”, delete the pricing matrix for [******] and replace it with the following: |
[******] | [******] | [******] | [******] | |
[******] | $[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] | $[******] |
Subtotal | $[******]* | $[******]* | $[******]* | $[******]* |
[******] | $[******] ([******]) | $[******] ([******]) | $[******] ([******]) | $[******] ([******]) |
Total | $[******] | $[******] | $[******] | $[******] |
[******] | [******] | [******] | [******] | |
[******] | $[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] | $[******] |
Subtotal | $[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] | $[******] |
Total | $[******] | $[******] | $[******] | $[******] |
2. | In Attachment V, Section 3, under the heading “For Gen 2”, delete the pricing matrix for [******] and replace it with the following: |
[******] | [******] | [******] | [******] | |
[******] | $[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] | $[******] |
Subtotal | $[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] | $[******] |
Total | $[******] | $[******] | $[******] | $[******] |
3. | In Attachment V, Section 3, under the heading “Gen 3 Content Fees:”, after the pricing matrix for [******], add the following: |
[******] | [******] | [******] | |
[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] |
Subtotal | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] |
Total | $[******] | $[******] | $[******] |
4. | In Attachment V, Section 3, under the heading “Gen 3 Content Fees:”, delete the pricing matrix for [******] and replace it with the following: |
[******] | [******] | [******] | |
[******] | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] |
Subtotal | $[******] | $[******] | $[******] |
[******] | $[******] | $[******] | $[******] |
Total | $[******] | $[******] | $[******] |
5. | In Attachment V, Section 3, under the heading “Gen 3 Content Fees:”, after the pricing matrix for [******], add the following: |
[******] | [******] | [******] | |
[******] | [******] | $[******] | $[******] |
[******] | $[******] | $[******] | |
Subtotal | $[******] | $[******] | |
[******] | $[******] | $[******] | |
Total | $[******] | $[******] |
6. | In Attachment V, after Section 14, add the following new section: |
MY | DCR | Description | Quote | DCR comments |
2018 | 13918964 | [******] | $[******] | [******] |
13909568 | [******] | $[******] | Postal code search for the [******] Updates to handle when a user doesn't give SYNC access to their phonebook and messages [******] grammar and prompt updates Guidance Prompt updates for [******] (2 prompts) | |
13918958 | [******] | $[******] | [******] | |
13918955 | [******] | $[******] | ||
10183000 | [******] | $[******] | [******] | |
13910105 | [******] | $[******] | Payment terms are [******] equal payments after[******]. Telenav will invoice once for the total amount at [******] and then payments including interest will be made [******] for [******]. Total NRE, including interest for [******] = $[******] (value without interest = $[******]) | |
2018 MY subtotal | $[******] |
FORD MOTOR COMPANY By: /s/ Melissa Sheahan (Signature) Name: Melissa Sheahen (Printed Name) Title: Software Buyer Date: 10-12-2016 | TELENAV, INC. By: /s/ Michael Strambi (Signature) Name: Michael Strambi (Printed Name) Title: CFO Date: 10-18-2016 |
1. | I have reviewed this quarterly report on Form 10-Q of Telenav, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 3, 2017 | By: | /s/ Dr. HP JIN | ||
DR. HP Jin | |||||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Telenav, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 3, 2017 | By: | /s/ MICHAEL STRAMBI | ||
Michael Strambi | |||||
Chief Financial Officer |
Date: | February 3, 2017 | By: | /s/ Dr. HP JIN | ||
Dr. HP Jin | |||||
President and Chief Executive Officer |
Date: | February 3, 2017 | By: | /s/ MICHAEL STRAMBI | ||
Michael Strambi | |||||
Chief Financial Officer |
Document and Entity Information |
6 Months Ended |
---|---|
Dec. 31, 2016
shares
| |
Document and Entity Information [Abstract] | |
Entity Registrant Name | TELENAV, INC. |
Entity Central Index Key | 0001474439 |
Current Fiscal Year End Date | --06-30 |
Entity Filer Category | Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2017 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 43,304,108 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jun. 30, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 42 | $ 111 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 43,304,000 | 42,708,000 |
Common stock, shares outstanding (in shares) | 43,304,000 | 42,708,000 |
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Revenue: | ||||
Product | $ 37,804 | $ 31,160 | $ 67,227 | $ 62,269 |
Services | 14,197 | 14,093 | 27,001 | 27,045 |
Total revenue | 52,001 | 45,253 | 94,228 | 89,314 |
Cost of revenue: | ||||
Product | 22,598 | 18,364 | 40,359 | 36,447 |
Services | 6,129 | 6,168 | 11,844 | 11,472 |
Total cost of revenue | 28,727 | 24,532 | 52,203 | 47,919 |
Gross profit | 23,274 | 20,721 | 42,025 | 41,395 |
Operating expenses: | ||||
Research and development | 16,301 | 16,653 | 34,319 | 34,640 |
Sales and marketing | 5,277 | 6,524 | 10,545 | 13,522 |
General and administrative | 6,872 | 5,094 | 12,363 | 11,329 |
Legal settlement and contingencies | 6,424 | 750 | 6,424 | 750 |
Restructuring | 0 | (1,468) | 0 | (1,468) |
Total operating expenses | 34,874 | 27,553 | 63,651 | 58,773 |
Loss from operations | (11,600) | (6,832) | (21,626) | (17,378) |
Other income (expense), net | 714 | 520 | 1,010 | 333 |
Loss before provision for income taxes | (10,886) | (6,312) | (20,616) | (17,045) |
Provision for income taxes | 537 | 327 | 142 | 440 |
Net loss | $ (11,423) | $ (6,639) | $ (20,758) | $ (17,485) |
Net loss per share: | ||||
Basic and diluted (in dollars per share) | $ (0.26) | $ (0.16) | $ (0.48) | $ (0.43) |
Weighted average shares used in computing net loss per share: | ||||
Weighted average common shares, basic and diluted (shares) | 43,208 | 41,038 | 42,932 | 40,820 |
Stock compensation expense included above: | ||||
Stock-based compensation expense | $ 1,988 | $ 3,180 | $ 4,529 | $ 6,267 |
Cost of revenue | ||||
Stock compensation expense included above: | ||||
Stock-based compensation expense | 35 | 39 | 64 | 71 |
Research and development | ||||
Stock compensation expense included above: | ||||
Stock-based compensation expense | 897 | 1,771 | 2,387 | 3,229 |
Sales and marketing | ||||
Stock compensation expense included above: | ||||
Stock-based compensation expense | 536 | 835 | 1,030 | 1,675 |
General and administrative | ||||
Stock compensation expense included above: | ||||
Stock-based compensation expense | $ 520 | $ 535 | $ 1,048 | $ 1,292 |
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (11,423) | $ (6,639) | $ (20,758) | $ (17,485) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, net of tax | (661) | (392) | (595) | (577) |
Unrealized gain (loss) on available-for-sale securities, net of tax | (298) | (239) | (437) | (233) |
Reclassification adjustments for gain (loss) on available-for-sale securities recognized, net of tax | (5) | 4 | (10) | 6 |
Net decrease from available-for-sale securities, net of tax | (303) | (235) | (447) | (227) |
Other comprehensive loss, net of tax | (964) | (627) | (1,042) | (804) |
Comprehensive loss | $ (12,387) | $ (7,266) | $ (21,800) | $ (18,289) |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Operating activities | |||||
Net loss | $ (20,758) | $ (17,485) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 1,260 | 1,916 | |||
Accretion of net premium on short-term investments | 237 | 381 | |||
Stock-based compensation expense | 4,529 | 6,267 | |||
Write-off of long-term investments | 0 | 477 | |||
Gain on disposal of property and equipment | (2) | (4) | |||
Bad debt expense | 125 | 51 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (5,724) | (1,007) | |||
Deferred income taxes | 226 | 121 | |||
Restricted cash | 1,015 | 199 | |||
Income taxes receivable | 39 | 614 | |||
Deferred costs | (6,704) | (4,302) | |||
Prepaid expenses and other current assets | 580 | (239) | |||
Other assets | 98 | 908 | |||
Trade accounts payable | 5,309 | 80 | |||
Accrued expenses and other liabilities | 3,945 | (1,010) | |||
Income taxes payable | 154 | 162 | |||
Deferred rent | 44 | (814) | |||
Deferred revenue | 12,728 | 7,023 | |||
Net cash used in operating activities | (2,899) | (6,662) | |||
Investing activities | |||||
Purchases of property and equipment | (531) | (332) | |||
Purchases of short-term investments | (37,788) | (20,622) | |||
Proceeds from sales and maturities of short-term investments | 39,392 | 23,009 | |||
Proceeds from sales of long-term investments | 246 | 0 | |||
Net cash provided by investing activities | 1,319 | 2,055 | |||
Financing activities | |||||
Proceeds from exercise of stock options | 159 | 921 | |||
Repurchase of common stock | 0 | (570) | |||
Tax withholdings related to net share settlements of restricted stock units | (1,638) | (1,796) | |||
Net cash used in financing activities | (1,479) | (1,445) | |||
Effect of exchange rate changes on cash and cash equivalents | (596) | (576) | |||
Net decrease in cash and cash equivalents | (3,655) | (6,628) | |||
Cash and cash equivalents, at beginning of period | 21,349 | [1] | 18,721 | ||
Cash and cash equivalents, at end of period | 17,694 | 12,093 | |||
Supplemental disclosure of cash flow information | |||||
Income taxes paid (received), net | $ 1,410 | $ (528) | |||
|
Summary of business and significant accounting policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of business and significant accounting policies | Summary of business and significant accounting policies Description of business Telenav, Inc., also referred to in this report as “we,” “our” or “us,” was incorporated in September 1999 in the State of Delaware. We are a leading provider of connected car and location-based platform products and services. Our automotive and mobile navigation platform allows us to deliver enhanced location-based services to auto manufacturers, developers, and end users through various distribution channels. Our advertising delivery platform delivers highly targeted advertising services leveraging our location expertise. We operate in three segments - automotive, advertising and mobile navigation. Our fiscal year ends on June 30 and in this report we refer to the fiscal year ended June 30, 2016 as “fiscal 2016” and the fiscal year ending June 30, 2017 as “fiscal 2017.” Basis of presentation The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The condensed consolidated financial statements include the accounts of Telenav, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements include all adjustments (consisting only of normal recurring adjustments) that our management believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. Certain prior period amounts in the consolidated financial statements have been reclassified to conform to current period presentation for comparative purposes. Our condensed consolidated financial statements also include the financial results of Shanghai Jitu Software Development Ltd., or Jitu, located in China. Based on our contractual arrangements with the shareholders of Jitu, we have determined that Jitu is a variable interest entity, or VIE, for which we are the primary beneficiary and are required to consolidate in accordance with Accounting Standards Codification, or ASC, subtopic 810-10, or ASC 810-10, Consolidation: Overall. The results of Jitu did not have a material impact on our financial statements for the three and six months ended December 31, 2016 and 2015. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for fiscal 2016, included in our Annual Report on Form 10-K for fiscal 2016 filed with the U.S. Securities and Exchange Commission, or SEC, on August 22, 2016. There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Form 10-K for fiscal 2016. Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include the determination of revenue recognition and deferred revenue, the recoverability of accounts receivable and short-term investments, the determination of acquired intangibles and goodwill, the fair value of stock-based awards issued, the determination of income taxes and the recoverability of deferred tax assets. Actual results could differ from those estimates. Concentrations of risk and significant customers Revenue related to services provided through Ford Motor Company and affiliated entities, or Ford, comprised 70% and 66% of revenue for the three months ended December 31, 2016 and 2015, respectively, and 69% and 68% of revenue for the six months ended December 31, 2016 and 2015, respectively. As of December 31, 2016 and June 30, 2016, receivables due from Ford were 61% and 64% of total accounts receivable, respectively. Revenue related to services provided through AT&T Mobility LLC, or AT&T, comprised 10% of revenue for the three and six months ended December 31, 2015. Revenue from AT&T was less than 10% of revenue in the three and six months ended December 31, 2016. Restricted cash As of December 31, 2016 and June 30, 2016, we had restricted cash of $4.1 million and $5.1 million, respectively, on our consolidated balance sheets, comprised primarily of overpayments from a customer that are expected to be refunded. Accumulated other comprehensive loss, net of tax The components of accumulated other comprehensive loss, net of related taxes, and activity as of December 31, 2016, were as follows (in thousands):
The amounts reclassified from accumulated other comprehensive loss, net of tax, were determined using the specific identification method and the amounts were included in other income (expense), net, for the three and six months ended December 31, 2016. The amount of income tax benefit allocated to each component of accumulated other comprehensive loss was not material for the three and six months ended December 31, 2016. Long-term investments As of December 31, 2016, the carrying value of our investments in privately held companies totaled $708,000. These investments are accounted for as cost method investments, as we own less than 20% of the voting securities and do not have the ability to exercise significant influence over operating and financial policies of the entities. We regularly evaluate the carrying value of these cost method investments for impairment. We recorded impairment charges of zero and $250,000 for cost method investments during the six months ended December 31, 2016 and 2015, respectively. In addition, during the three and six months ended December 31, 2015, we recorded an impairment charge of $227,000 to write down to zero the carrying value of a convertible note issued in connection with the spin off a product line developed by our Xi'an, China team. Recent accounting pronouncements In November 2016, the Financial Accounting Standards Board, or FASB, issued new guidance to clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning and ending total amounts shown in the statement of cash flows. The new standard is effective for us in our first quarter of fiscal 2019 and requires a retrospective method of adoption. Early adoption is permitted. We are evaluating the effect that this new standard will have on our consolidated financial statements. In October 2016, the FASB issued new guidance which is intended to eliminate diversity in practice and provide a more accurate depiction of the tax consequences on intercompany asset transfers (excluding inventory). The new guidance removes the current prohibition against immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The new standard is effective for us in our first quarter of fiscal 2019 and requires a modified retrospective method of adoption. Early adoption is permitted, but only in the first quarter of an entity’s annual fiscal year. We are evaluating the effect that this new standard will have on our consolidated financial statements. In August 2016, the FASB issued new guidance which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The new standard is effective for us in our first quarter of fiscal 2019 and early adoption is permitted. We are evaluating the effect that this new standard will have on our consolidated financial statements. With the exception of the new standards discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the six months ended December 31, 2016, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for fiscal 2016, that are of significance or potential significance to us, other than the following update: In May 2014, the FASB issued guidance related to revenue from contracts with customers, which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. Under this new guidance, ASC 606, Revenue from Contracts with Customers, or ASC 606, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the full retrospective or cumulative effect transition method. In August 2015, the FASB deferred the effective date of this guidance by one year; however, early adoption is permitted. The updated standard will be effective for us in the first quarter of our fiscal year ending June 30, 2019. We are in the process of selecting a transition method and determining the effect that this new standard will have on our consolidated financial statements and related disclosures. We currently anticipate early adoption of ASC 606 effective July 1, 2017. Our ability to early adopt is dependent on the completion of our analysis of information necessary to restate prior period financial statements or adjust retained earnings, depending on the transition method we select. While we are the in the process of selecting a transition method, we anticipate this standard will have a material impact on our consolidated financial statements. Even though our assessment of the impact of this standard is not complete, we currently believe the most significant impact will be to the recognition of revenue for certain of our automotive value-added and combined offerings, such as on-board navigation with Ford MapCare. We anticipate our revenue recognition for certain value-added offerings will change and we will no longer recognize revenue associated with certain software-related elements over the life of our contractual obligations. |
Net income (loss) per share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) per share | Net income (loss) per share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and restricted stock units using the treasury-stock method. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):
The following outstanding shares were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an antidilutive effect (in thousands):
|
Cash, cash equivalents and short-term investments |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | Cash, cash equivalents and short-term investments Cash and cash equivalents consist of highly liquid fixed-income investments with original maturities of three months or less at the time of purchase, including money market funds. Short-term investments consist of readily marketable securities with a remaining maturity of more than three months from the date of purchase. Short-term investments are classified as current assets, even though maturities may extend beyond one year, because they represent investments of cash available for operations. We classify all of our cash equivalents and short-term investments as “available for sale,” as these investments are free of trading restrictions. These marketable securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income (loss) and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. We had no material realized gains or losses in the three or six months ended December 31, 2016 and 2015. Cash, cash equivalents and short-term investments consisted of the following as of December 31, 2016 (in thousands):
Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2016 (in thousands):
The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated maturities as of December 31, 2016 (in thousands):
Declines in fair value judged to be other-than-temporary on securities available for sale are included as a component of other income (expense), net. In order to determine whether a decline in value is other-than-temporary, we evaluate, among other factors: the duration and extent to which the fair value has been less than the carrying value and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair market value. As of December 31, 2016, we did not consider any of our investments to be other-than-temporarily impaired. |
Fair value of financial instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | Fair value of financial instruments We measure certain financial instruments at fair value on a recurring basis. We utilize a hierarchy, which consists of three levels, for disclosure of the inputs used to determine the fair value of our financial instruments. Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities. Level 2 valuations are based on inputs that are observable, either directly or indirectly, other than quoted prices included within Level 1. Such inputs used in determining fair value for Level 2 valuations include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, we use quoted prices in active markets for similar assets to determine fair value of Level 2 short-term investments. If quoted prices in active markets for identical assets are not available to determine fair value, we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, we use third party valuations utilizing underlying assets assumptions. All of our cash equivalents and short-term investments are classified within Level 1 or Level 2. As of December 31, 2016 and June 30, 2016, we did not have any investments that require Level 3 valuations. The fair values of these financial instruments were determined using the following inputs at December 31, 2016 (in thousands):
The fair values of our financial instruments were determined using the following inputs at June 30, 2016 (in thousands):
Amortization of net premium on short-term investments totaled $237,000 and $381,000 in the six months ended December 31, 2016 and 2015, respectively. There were no transfers between Level 1 and Level 2 financial instruments in the six months ended December 31, 2016 and 2015, respectively. We did not have any financial liabilities measured at fair value on a recurring basis as of December 31, 2016 or June 30, 2016. |
Balance sheet information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet information | Balance sheet information Goodwill and intangible assets, net Goodwill as of December 31, 2016 and June 30, 2016 was $31.3 million. Intangible assets consisted of the following (in thousands):
Acquired developed technology is amortized on a straight-line basis over the expected useful life. Amortization expense related to intangibles was $258,000 and $307,000 for the three months ended December 31, 2016 and 2015, respectively, and $518,000 and $1.0 million for the six months ended December 31, 2016 and 2015, respectively. As of December 31, 2016, remaining amortization expense for intangible assets by fiscal year is as follows: $513,000 in fiscal 2017, $1.0 million in fiscal 2018, $1.0 million in fiscal 2019, $1.0 million in fiscal 2020 and $592,000 in fiscal 2021. Accrued expenses Accrued expenses consisted of the following (in thousands):
|
Commitments and contingencies |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and contingencies | Commitments and contingencies Operating lease and purchase obligations As of December 31, 2016, we had future minimum non-cancelable financial commitments primarily related to office space under non-cancelable operating leases and license fees due to certain of our third party content providers, regardless of usage level. The aggregate future minimum commitments, net of sublease income, were comprised of the following (in thousands):
Joint venture investment commitment In September 2015, we entered into an agreement with Ningbo Huazhong Holdings Company Limited, or Huazhong, a subsidiary of a publicly traded automotive original equipment manufacturer, or OEM, supplier in China, whereby we and Huazhong agreed to form a joint venture limited liability company in China for the development, manufacture and sale of connected navigation systems for the China automotive aftermarket and local OEMs. We did not make any capital contributions to the joint venture, and the joint venture was not formed. On January 31, 2017, we and Huazhong agreed not to form or fund the joint venture and the agreement with Huazhong was terminated. Contingencies From time to time, we may become involved in legal proceedings, claims and litigation arising in the ordinary course of business. When we believe a loss or a cost of indemnification is probable and can be reasonably estimated, we accrue the estimated loss or cost of indemnification in our consolidated financial statements. Where the outcome of these matters is not determinable, we do not make a provision in our financial statements until the loss or cost of indemnification, if any, is probable and can be reasonably estimated or the outcome becomes known. We expense legal fees related to these matters as they are incurred. On December 31, 2009, Vehicle IP, LLC, or Vehicle IP, filed a patent infringement lawsuit against us in the U.S. District Court for the District of Delaware, seeking monetary damages, fees and expenses and other relief. Verizon Wireless, or Verizon, was named as a co-defendant in the Vehicle IP litigation based on the VZ Navigator product and has demanded that we indemnify and defend Verizon against Vehicle IP. At this time, we have not agreed to defend or indemnify Verizon. AT&T was also named as a co-defendant in the Vehicle IP litigation based on the AT&T Navigator and Telenav Track products. AT&T has tendered the defense of the litigation to us and we defended the case on behalf of AT&T. During fiscal 2016, we accrued $850,000 related to this litigation. On January 12, 2017, we entered into a settlement and license agreement with Vehicle IP. In connection with the agreement, we made a one-time payment of $8.0 million and recorded $7.2 million of this amount as legal settlement and contingencies expense in our consolidated statement of operations in the three and six months ended December 31, 2016. On January 31, 2017, Vehicle IP's claims against Telenav and AT&T were dismissed. We are not obligated to make any future payments with respect to the settlement or license. We also will have no further obligation to indemnify AT&T with respect to the case. On July 28, 2016, Nathan Gergetz filed a putative class action complaint in the U.S. District Court for the Northern District of California, alleging that Telenav violated the Telephone Consumer Protection Act, or TCPA. The complaint purports to be filed on behalf of a class, and it alleges that Telenav caused unsolicited text messages to be sent to the plaintiff from July 6, 2016 to July 26, 2016. Plaintiffs seek statutory and actual damages under the TCPA law, attorneys’ fees and costs of the action, and an injunction to prevent any future violations. Telenav moved to dismiss the complaint on November 21, 2016, and that motion is scheduled for a hearing date of March 2, 2017. Due to the preliminary nature of this matter and uncertainties relating to litigation, we are unable at this time to estimate the effects of this lawsuit on our financial condition, results of operations, or cash flows. In addition, we have received, and expect to continue to receive, demands for indemnification from our customers, which demands can be very expensive to settle or defend, and we have in the past offered to contribute to settlement amounts and incurred legal fees in connection with certain of these indemnity demands. A number of these indemnity demands, including demands relating to pending litigation, remain outstanding and unresolved as of the date of this Form 10-Q. Furthermore, in response to these demands we may be required to assume control of and bear all costs associated with the defense of our customers in compliance with our contractual commitments. At this time, we are not a party to the following cases; however our customers requested that we indemnify them in connection with such cases. In 2008, Alltel Communications LLC, or Alltel, AT&T, Sprint Corporation, or Sprint, and T-Mobile USA, or T-Mobile, each demanded that we indemnify and defend them against patent infringement lawsuits brought by patent holding companies EMSAT Advanced Geo-Location Technology LLC and Location Based Services LLC (collectively, EMSAT) in the U.S. District Court for the Northern District of Ohio. In March 2011, EMSAT and AT&T settled their claims. The U.S. Patent and Trademark Office, or PTO, reexamined two of the patents in suit, confirming the validity of only two of the asserted claims from those patents. All patent claims that EMSAT alleged to be infringed by the Telenav GPS Navigator product were cancelled during reexamination. In the suits against T-Mobile, Alltel and Sprint, EMSAT amended its allegations to remove allegations of infringement of the patent claims that were cancelled during reexamination. EMSAT and T-Mobile stipulated to a dismissal and their case was dismissed on January 28, 2015. On March 20, 2015, the Court dismissed and closed the Alltel case and on April 10, 2015 the Court dismissed and closed the Sprint case. In January 2017 we resolved this indemnification dispute with AT&T. We do not anticipate any additional liability from this matter. In March 2009, AT&T demanded that we indemnify and defend them against a patent infringement lawsuit brought by Tendler Cellular of Texas LLC, or Tendler, in the U.S. District Court for the Eastern District of Texas. In June 2010, AT&T settled its claims with Tendler and we came to an agreement with AT&T as to the extent of our contribution towards AT&T's settlement; however, Telenav and AT&T disagreed as to whether any additional amounts were owed to AT&T for legal fees and expenses related to the defense of the matter. In January 2017 we resolved this indemnification dispute with AT&T. We do not anticipate any additional liability from this matter. In connection with our resolution of certain indemnification disputes with AT&T in January 2017, we reversed a total accrued liability of $726,000 previously expensed for these and other contingencies. |
Guarantees and indemnifications |
6 Months Ended |
---|---|
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Guarantees and indemnifications | Guarantees and indemnifications Our agreements with our customers generally include certain provisions for indemnifying them against liabilities if our products and services infringe a third party’s intellectual property rights or for other specified matters. We have in the past received indemnification requests or notices of their intent to seek indemnification in the future from our customers with respect to specific litigation claims in which our customers have been named as defendants. The maximum amount of potential future indemnification is unlimited. We have agreed to indemnify our directors, officers and certain other employees for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon the termination of their services with us, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. The maximum amount of potential future indemnification is unlimited. We have a directors and officers insurance policy that limits our potential exposure. We believe that any financial exposure related to these indemnification agreements is not material. |
Stock-based compensation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation Under our 2009 Equity Incentive Plan and 2011 Stock Option and Grant Plan, eligible employees, directors and consultants are able to participate in our future performance through awards of nonqualified stock options, incentive stock options and restricted stock units as authorized by our board of directors. In addition, we have granted restricted common stock in connection with certain acquisitions. A summary of our stock option activity is as follows (in thousands except per share and contractual life amounts):
A summary of our restricted stock unit, or RSU, activity is as follows (in thousands except contractual life amounts):
During the six months ended December 31, 2016, pursuant to the annual increase provisions of our 2009 Equity Incentive Plan, the number of shares available for grant under this plan increased by 1,666,666 shares. A summary of our shares available for grant activity is as follows (in thousands):
The following table summarizes the stock-based compensation expense recorded for stock options and RSUs issued to employees and nonemployees (in thousands):
We use valuation pricing models to determine the fair value of stock-based awards. The determination of the fair value of stock-based payment awards on the date of grant is affected by the stock price as well as assumptions regarding a number of complex and subjective variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rates and expected dividends. The weighted average assumptions used to value stock option awards granted were as follows:
Performance-based RSUs We established a 2015 Performance Share Program under our 2009 Equity Incentive Plan, under which RSUs and/or cash bonuses may be earned based on the achievement of specified performance conditions measured over periods ranging from approximately 15 to 21 months. Holders of performance-based awards generally have the ability to receive 0% to 100% of the target number of RSUs or cash bonus originally granted. The expense associated with performance-based RSU grants is recorded when the performance condition is determined to be probable. Fully vested restricted stock units and/or cash bonuses will be awarded upon management’s certification of the level of achievement. We previously granted 106,000 performance-based RSUs under the 2015 Program, of which no RSUs had been earned and 36,000 RSUs had been canceled. As of December 31, 2016, the remaining 70,000 RSUs were canceled as the performance conditions were not met. The cancellation of these RSUs resulted in a credit to stock-compensation expense of $546,000 during the three months ended December 31, 2016. |
Income taxes |
6 Months Ended |
---|---|
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The effective tax rate for the periods presented is the result of the mix of forecasted fiscal year income earned or loss incurred in various tax jurisdictions that apply a broad range of income tax rates. Our provision (benefit) for income taxes was $142,000 in the six months ended December 31, 2016 compared to $440,000 in the six months ended December 31, 2015. In July 2016, the state of New York completed its audit of our income tax returns for fiscal 2010 through fiscal 2012. We paid $442,000 to settle the audit and recorded a tax benefit of $1.0 million in July 2016 to reverse the remaining related tax reserves. Our provision from income taxes of $142,000 for the six months ended December 31, 2016 was comprised primarily of foreign withholding taxes on revenue generated in China and foreign taxes, partially offset by the aforementioned $1.0 million reversal of tax reserves. Our effective tax rate was 1% in the six months ended December 31, 2016 compared to an effective tax rate of 1% in the six months ended December 31, 2015. Our effective tax rate of 1% and 1% for the six months ended December 31, 2016 and 2015, respectively, was less than the tax amount computed at the U.S. federal statutory income tax rate due primarily to losses for which no benefit will be recognized since they are not more likely than not to be realized due to the lack of current and future income and the inability to carryback losses within the two year carryback period. We record liabilities related to unrecognized tax benefits in accordance with authoritative guidance on accounting for uncertain tax positions. As of December 31, 2016 and June 30, 2016, our cumulative unrecognized tax benefits were $5.5 million and $6.7 million, respectively. Included in the balance of unrecognized tax benefits at December 31, 2016 and June 30, 2016 was $468,000 and $1.6 million, respectively, that if recognized, would affect the effective tax rate. We recognize interest and penalties related to unrecognized tax benefits as part of our provision for federal, state and foreign income taxes. We accrued $304,000 and $570,000 for the payment of interest and penalties at December 31, 2016 and June 30, 2016, respectively. We file income tax returns with the Internal Revenue Service, or IRS, California and various states and foreign tax jurisdictions in which we have subsidiaries. The statute of limitations remains open for fiscal 2012 through fiscal 2016 in the U.S., for fiscal 2012 through fiscal 2016 in state jurisdictions, and for fiscal 2011 through fiscal 2016 in foreign jurisdictions. Fiscal years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years which have been carried forward and may be audited in subsequent years when utilized. Due to operating losses in previous years and continued earnings volatility, we maintain a valuation allowance on the majority of our deferred tax assets. Our valuation allowance at June 30, 2016 was $29.8 million. In evaluating our ability to recover our deferred tax assets each quarter, we consider all available positive and negative evidence, including current and previous operating results, ability to carryback losses for a tax refund, and forecasts of future operating results. |
Segments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | Segments We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. Our chief executive officer, or CEO, the chief operating decision maker, reviews revenue and gross margin information for each of our reportable segments. In addition, with the exception of accounts receivable and goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments. We report results in three business segments: Automotive - Our automotive segment provides our automotive and mobile navigation platform to vehicle manufacturers and original equipment manufacturers, or OEMs, for distribution with their vehicles. We provide both embedded, or on-board, and mobile phone-based wireless connectivity, or brought-in, navigation solutions, as well as integrated on-board and connected navigation solutions. Our on-board solutions consist of software, map and point of interest, or POI, data loaded in the vehicle that provides voice-guided turn by turn navigation displayed on the vehicle screen. Our brought-in connected solutions enable a mobile device that is paired with the vehicle to activate in-vehicle and voice-guided turn by turn navigation. Advertising - Our advertising segment provides interactive mobile advertisements on behalf of our advertising clients to consumers based specifically on the location of the user and other sophisticated targeting capabilities. Our customers include advertising agencies, direct advertisers and channel partners. Mobile Navigation - Our mobile navigation segment provides our mobile navigation platform to end users through mobile devices. We distribute our services through our wireless carrier partners, and directly to consumers through mobile application stores and marketplaces. Our segment results for the three and six months ended December 31, 2016 and 2015 were as follows (dollars in thousands):
|
Summary of business and significant accounting policies (Policies) |
6 Months Ended |
---|---|
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The condensed consolidated financial statements include the accounts of Telenav, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements include all adjustments (consisting only of normal recurring adjustments) that our management believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. Certain prior period amounts in the consolidated financial statements have been reclassified to conform to current period presentation for comparative purposes. Our condensed consolidated financial statements also include the financial results of Shanghai Jitu Software Development Ltd., or Jitu, located in China. Based on our contractual arrangements with the shareholders of Jitu, we have determined that Jitu is a variable interest entity, or VIE, for which we are the primary beneficiary and are required to consolidate in accordance with Accounting Standards Codification, or ASC, subtopic 810-10, or ASC 810-10, Consolidation: Overall. The results of Jitu did not have a material impact on our financial statements for the three and six months ended December 31, 2016 and 2015. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for fiscal 2016, included in our Annual Report on Form 10-K for fiscal 2016 filed with the U.S. Securities and Exchange Commission, or SEC, on August 22, 2016. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include the determination of revenue recognition and deferred revenue, the recoverability of accounts receivable and short-term investments, the determination of acquired intangibles and goodwill, the fair value of stock-based awards issued, the determination of income taxes and the recoverability of deferred tax assets. Actual results could differ from those estimates. |
Concentrations of risk and significant customers | Concentrations of risk and significant customers Revenue related to services provided through Ford Motor Company and affiliated entities, or Ford, comprised 70% and 66% of revenue for the three months ended December 31, 2016 and 2015, respectively, and 69% and 68% of revenue for the six months ended December 31, 2016 and 2015, respectively. As of December 31, 2016 and June 30, 2016, receivables due from Ford were 61% and 64% of total accounts receivable, respectively. Revenue related to services provided through AT&T Mobility LLC, or AT&T, comprised 10% of revenue for the three and six months ended December 31, 2015. |
Long-term investments | Long-term investments As of December 31, 2016, the carrying value of our investments in privately held companies totaled $708,000. These investments are accounted for as cost method investments, as we own less than 20% of the voting securities and do not have the ability to exercise significant influence over operating and financial policies of the entities. We regularly evaluate the carrying value of these cost method investments for impairment. |
Recent accounting pronouncements | Recent accounting pronouncements In November 2016, the Financial Accounting Standards Board, or FASB, issued new guidance to clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning and ending total amounts shown in the statement of cash flows. The new standard is effective for us in our first quarter of fiscal 2019 and requires a retrospective method of adoption. Early adoption is permitted. We are evaluating the effect that this new standard will have on our consolidated financial statements. In October 2016, the FASB issued new guidance which is intended to eliminate diversity in practice and provide a more accurate depiction of the tax consequences on intercompany asset transfers (excluding inventory). The new guidance removes the current prohibition against immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The new standard is effective for us in our first quarter of fiscal 2019 and requires a modified retrospective method of adoption. Early adoption is permitted, but only in the first quarter of an entity’s annual fiscal year. We are evaluating the effect that this new standard will have on our consolidated financial statements. In August 2016, the FASB issued new guidance which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The new standard is effective for us in our first quarter of fiscal 2019 and early adoption is permitted. We are evaluating the effect that this new standard will have on our consolidated financial statements. With the exception of the new standards discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the six months ended December 31, 2016, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for fiscal 2016, that are of significance or potential significance to us, other than the following update: |
Summary of business and significant accounting policies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | The components of accumulated other comprehensive loss, net of related taxes, and activity as of December 31, 2016, were as follows (in thousands):
|
Net income (loss) per share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Net Income Per Share Applicable to Common Stockholders | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an antidilutive effect (in thousands):
|
Cash, cash equivalents and short-term investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash, Cash Equivalents and Short-term Investments | Cash, cash equivalents and short-term investments consisted of the following as of December 31, 2016 (in thousands):
Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2016 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated maturities as of December 31, 2016 (in thousands):
|
Fair value of financial instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments Using Inputs |
The fair values of our financial instruments were determined using the following inputs at June 30, 2016 (in thousands):
|
Balance sheet information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Intangible assets consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses | Accrued expenses Accrued expenses consisted of the following (in thousands):
|
Commitments and contingencies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Operating Lease Payments | The aggregate future minimum commitments, net of sublease income, were comprised of the following (in thousands):
|
Stock-based compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity | A summary of our stock option activity is as follows (in thousands except per share and contractual life amounts):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units Award Activity | A summary of our restricted stock unit, or RSU, activity is as follows (in thousands except contractual life amounts):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Shares Available for Grant Activity | A summary of our shares available for grant activity is as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense | The following table summarizes the stock-based compensation expense recorded for stock options and RSUs issued to employees and nonemployees (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions Used to Estimate Weighted Average Fair Value of Options | The weighted average assumptions used to value stock option awards granted were as follows:
|
Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment results | Our segment results for the three and six months ended December 31, 2016 and 2015 were as follows (dollars in thousands):
|
Summary of business and significant accounting policies - Concentration of Risk and Significant Customers (Details) - segment |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2016 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of reportable segments | 3 | ||||
Customer Concentration Risk | Ford Motor Company | Sales Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of revenue | 70.00% | 66.00% | 69.00% | 68.00% | |
Customer Concentration Risk | Ford Motor Company | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of revenue | 61.00% | 64.00% | |||
Customer Concentration Risk | AT&T Mobility LLC | Sales Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of revenue | 10.00% | 10.00% |
Summary of business and significant accounting policies - Restricted Cash (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jun. 30, 2016 |
|||
---|---|---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Restricted cash | $ 4,094 | $ 5,109 | [1] | ||
|
Summary of business and significant accounting policies - Accumulated Other Comprehensive Income, Net of Tax (Details) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016
USD ($)
| ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, net of tax as of June 30, 2016 | $ (1,767) | [1] | ||
Other comprehensive income (loss) before reclassifications, net of tax | (1,032) | |||
Amount reclassified from accumulated other comprehensive loss, net of tax | (10) | |||
Other comprehensive loss, net of tax | (1,042) | |||
Balance, net of tax as of December 31, 2016 | (2,809) | |||
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, net of tax as of June 30, 2016 | (1,767) | |||
Balance, net of tax as of December 31, 2016 | (2,809) | |||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, net of tax as of June 30, 2016 | (1,889) | |||
Other comprehensive income (loss) before reclassifications, net of tax | (595) | |||
Amount reclassified from accumulated other comprehensive loss, net of tax | 0 | |||
Other comprehensive loss, net of tax | (595) | |||
Balance, net of tax as of December 31, 2016 | (2,484) | |||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance, net of tax as of June 30, 2016 | 122 | |||
Other comprehensive income (loss) before reclassifications, net of tax | (437) | |||
Amount reclassified from accumulated other comprehensive loss, net of tax | (10) | |||
Other comprehensive loss, net of tax | (447) | |||
Balance, net of tax as of December 31, 2016 | $ (325) | |||
|
Summary of business and significant accounting policies - Long-term Investments (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2015 |
|
Investment [Line Items] | |||
Investment in privately held companies | $ 708,000 | ||
Impairment charge on investments | $ 0 | $ 250,000 | |
Product Line in Xian, China | Spin-off | |||
Investment [Line Items] | |||
Impairment charge on investments | $ 227,000 | 227,000 | |
Cost method investment | $ 0 | $ 0 |
Net income (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Net income applicable to common stockholders: | ||||
Net loss | $ (11,423) | $ (6,639) | $ (20,758) | $ (17,485) |
Weighted average common shares used in computing net loss per share, basic and diluted (in shares) | 43,208 | 41,038 | 42,932 | 40,820 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.26) | $ (0.16) | $ (0.48) | $ (0.43) |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share ( inshares) | 9,472 | 9,504 | 9,472 | 9,504 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share ( inshares) | 6,410 | 5,111 | 6,410 | 5,111 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share ( inshares) | 3,062 | 4,393 | 3,062 | 4,393 |
Cash, cash equivalents and short-term investments -Summary of cash, cash equivalents and short-term investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jun. 30, 2016 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | $ 90,384 | $ 95,318 |
Cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | 4,396 | 7,041 |
Cash equivalents | Money market mutual funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | 4,396 | 5,641 |
Cash equivalents | U.S. agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | 1,400 | |
Cash, cash equivalents and short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 103,871 | 109,367 |
Unrealized Gains | 32 | 274 |
Unrealized Losses | (221) | (15) |
Estimated Fair Value | 103,682 | 109,626 |
Cash equivalents: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,694 | 21,349 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 17,694 | 21,349 |
Cash equivalents: | Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,298 | 14,308 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 13,298 | 14,308 |
Cash equivalents: | Cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,396 | 7,041 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 4,396 | 7,041 |
Cash equivalents: | Cash equivalents | Money market mutual funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,396 | 5,641 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 4,396 | 5,641 |
Cash equivalents: | Cash equivalents | U.S. agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,400 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 1,400 | |
Short-term investments: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 86,177 | 88,018 |
Unrealized Gains | 32 | 274 |
Unrealized Losses | (221) | (15) |
Estimated Fair Value | 85,988 | 88,277 |
Short-term investments: | U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,265 | 1,699 |
Unrealized Gains | 0 | 3 |
Unrealized Losses | (2) | 0 |
Estimated Fair Value | 1,263 | 1,702 |
Short-term investments: | U.S. agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,184 | 5,907 |
Unrealized Gains | 0 | 22 |
Unrealized Losses | (16) | 0 |
Estimated Fair Value | 3,168 | 5,929 |
Short-term investments: | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,231 | 10,160 |
Unrealized Gains | 5 | 17 |
Unrealized Losses | (9) | (2) |
Estimated Fair Value | 8,227 | 10,175 |
Short-term investments: | Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,017 | 6,004 |
Unrealized Gains | 2 | 14 |
Unrealized Losses | (4) | 0 |
Estimated Fair Value | 9,015 | 6,018 |
Short-term investments: | Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,243 | 3,494 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 3,243 | 3,495 |
Short-term investments: | Foreign government securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 751 | |
Unrealized Gains | 0 | |
Unrealized Losses | (2) | |
Estimated Fair Value | 749 | |
Short-term investments: | Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 60,486 | 60,754 |
Unrealized Gains | 25 | 217 |
Unrealized Losses | (188) | (13) |
Estimated Fair Value | $ 60,323 | $ 60,958 |
Cash, cash equivalents and short-term investments - Summary of cost and estimated fair value of short-term investments (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Amortized Cost | |
Schedule of Available-for-sale Securities [Line Items] | |
Due within one year | $ 38,058 |
Due between one and two years | 29,036 |
Due between two and three years | 19,083 |
Total | 86,177 |
Estimated Fair Value | |
Schedule of Available-for-sale Securities [Line Items] | |
Due within one year | 38,052 |
Due between one and two years | 28,995 |
Due between two and three years | 18,941 |
Total | $ 85,988 |
Fair value of financial instruments (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2016 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 90,384 | $ 95,318 | |
Accretion of net premium on short-term investments | 237 | $ 381 | |
Short-term investments: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 85,988 | 88,277 | |
Short-term investments: | U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 3,168 | 5,929 | |
Short-term investments: | U.S. treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 1,263 | 1,702 | |
Short-term investments: | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 8,227 | 10,175 | |
Short-term investments: | Municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 9,015 | 6,018 | |
Short-term investments: | Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 3,243 | 3,495 | |
Short-term investments: | Foreign government securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 749 | ||
Short-term investments: | Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 60,323 | 60,958 | |
Cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 4,396 | 7,041 | |
Cash equivalents | Money market mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 4,396 | 5,641 | |
Cash equivalents | U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 1,400 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 5,659 | 7,343 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 1,263 | 1,702 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments: | U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments: | U.S. treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 1,263 | 1,702 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments: | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments: | Municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments: | Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments: | Foreign government securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments: | Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 4,396 | 5,641 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash equivalents | Money market mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 4,396 | 5,641 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash equivalents | U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | ||
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 84,725 | 87,975 | |
Significant Other Observable Inputs (Level 2) | Short-term investments: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 84,725 | 86,575 | |
Significant Other Observable Inputs (Level 2) | Short-term investments: | U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 3,168 | 5,929 | |
Significant Other Observable Inputs (Level 2) | Short-term investments: | U.S. treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Short-term investments: | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 8,227 | 10,175 | |
Significant Other Observable Inputs (Level 2) | Short-term investments: | Municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 9,015 | 6,018 | |
Significant Other Observable Inputs (Level 2) | Short-term investments: | Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 3,243 | 3,495 | |
Significant Other Observable Inputs (Level 2) | Short-term investments: | Foreign government securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 749 | ||
Significant Other Observable Inputs (Level 2) | Short-term investments: | Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 60,323 | 60,958 | |
Significant Other Observable Inputs (Level 2) | Cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 1,400 | |
Significant Other Observable Inputs (Level 2) | Cash equivalents | Money market mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Cash equivalents | U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 1,400 | ||
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Short-term investments: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Short-term investments: | U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Short-term investments: | U.S. treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Short-term investments: | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Short-term investments: | Municipal securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Short-term investments: | Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Short-term investments: | Foreign government securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | ||
Significant Unobservable Inputs (Level 3) | Short-term investments: | Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash equivalents | Money market mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash equivalents | U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 0 |
Balance sheet information - Intangibles and Other Accrued Expenses (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2016 |
|
Balance Sheet Related Disclosures [Abstract] | |||||
Goodwill | $ 31,300,000 | $ 31,300,000 | $ 31,300,000 | ||
Acquired developed technology | 13,875,000 | 13,875,000 | 13,875,000 | ||
Less accumulated amortization | (9,728,000) | (9,728,000) | (9,210,000) | ||
Intangible assets, net | 4,147,000 | 4,147,000 | 4,665,000 | ||
Amortization of Intangible Assets | 258,000 | $ 307,000 | 518,000 | $ 1,016,000 | |
Accrued Liabilities, Current [Abstract] | |||||
Accrued compensation and benefits | 9,431,000 | 9,431,000 | 9,308,000 | ||
Accrued royalties | 14,408,000 | 14,408,000 | 15,331,000 | ||
Accrued legal settlement and contingencies | 7,274,000 | 7,274,000 | 1,576,000 | ||
Other accrued expenses | 10,261,000 | 10,261,000 | 10,059,000 | ||
Accrued expenses | 41,374,000 | 41,374,000 | $ 36,274,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
2017 | 513,000 | 513,000 | |||
2018 | 1,000,000 | 1,000,000 | |||
2019 | 1,000,000 | 1,000,000 | |||
2020 | 1,000,000 | 1,000,000 | |||
2021 | $ 592,000 | $ 592,000 |
Commitments and contingencies (Details) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jan. 12, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
claim
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
patent
claim
|
Dec. 31, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
|
|
Operating lease obligations | ||||||
Total | $ 13,455,000 | $ 13,455,000 | ||||
Fiscal 2017 | 2,033,000 | 2,033,000 | ||||
Fiscal 2018 | 3,971,000 | 3,971,000 | ||||
Fiscal 2019 | 3,536,000 | 3,536,000 | ||||
Fiscal 2020 | 2,123,000 | 2,123,000 | ||||
Fiscal 2021 | 1,792,000 | 1,792,000 | ||||
Thereafter | 0 | 0 | ||||
Purchase obligations | ||||||
Total | 5,081,000 | 5,081,000 | ||||
Fiscal 2017 | 1,901,000 | 1,901,000 | ||||
Fiscal 2018 | 1,846,000 | 1,846,000 | ||||
Fiscal 2019 | 382,000 | 382,000 | ||||
Fiscal 2020 | 217,000 | 217,000 | ||||
Fiscal 2021 | 217,000 | 217,000 | ||||
Thereafter | 518,000 | 518,000 | ||||
Total contractual obligations | ||||||
Total contractual obligations | 18,536,000 | 18,536,000 | ||||
Total contractual obligations - 2017 | 3,934,000 | 3,934,000 | ||||
Total contractual obligations - 2018 | 5,817,000 | 5,817,000 | ||||
Total contractual obligations - 2019 | 3,918,000 | 3,918,000 | ||||
Total contractual obligations - 2020 | 2,340,000 | 2,340,000 | ||||
Total contractual obligations - 2021 | 2,009,000 | 2,009,000 | ||||
Total contractual obligations - Thereafter | 518,000 | 518,000 | ||||
Loss Contingencies [Line Items] | ||||||
Legal settlement and contingencies | 6,424,000 | $ 750,000 | $ 6,424,000 | $ 750,000 | ||
Liability reversed | $ 726,000 | |||||
Vehicle IP | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, amount accrued | $ 850,000 | |||||
Pending Litigation | EMSAT case | ||||||
Loss Contingencies [Line Items] | ||||||
Number of patents allegedly infringed the PTO reexamined | patent | 2 | |||||
Number of pending claims | claim | 2 | 2 | ||||
Subsequent Event | ||||||
Loss Contingencies [Line Items] | ||||||
Legal settlement and contingencies | $ 8,000,000 | |||||
Litigation settlement, amount | $ 7,200,000 |
Stock-based compensation - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ (1,988) | $ (3,180) | $ (4,529) | $ (6,267) |
Equity Incentive Plan 2009 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional shares authorized (in shares) | 1,666,666 | |||
RSU awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 951,000 | |||
Vested in period (in shares) | 853,000 | |||
Canceled in period (in shares) | 338,000 | |||
Stock-based compensation expense | $ (1,435) | $ (2,739) | $ (3,502) | $ (5,416) |
Performance-based Restricted Stock Units | Performance Share Program 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 106,000 | |||
Vested in period (in shares) | 0 | |||
Canceled in period (in shares) | 70,000 | 36,000 | ||
Stock-based compensation expense | $ 546 | |||
Performance-based Restricted Stock Units | Performance Share Program 2015 | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance measurement period (in months) | 15 months | |||
Award vesting percentage (in percentage) | 0.00% | |||
Performance-based Restricted Stock Units | Performance Share Program 2015 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance measurement period (in months) | 21 months | |||
Award vesting percentage (in percentage) | 100.00% |
Stock-based compensation - Summary of stock option activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
$ / shares
shares
| |
Number of Shares | |
Beginning balance (shares) | shares | 5,370 |
Granted (shares) | shares | 1,277 |
Exercised (shares) | shares | (36) |
Canceled (shares) | shares | (201) |
Ending balance (shares) | shares | 6,410 |
Options vested and expected to vest (shares) | shares | 5,886 |
Options exercisable (shares) | shares | 3,182 |
Weighted Average Exercise Price | |
Weighted average exercise (in dollars per share) | $ / shares | $ 6.80 |
Granted (in dollars per share) | $ / shares | 5.12 |
Exercised (in dollars per share) | $ / shares | 4.40 |
Canceled (in dollars per share) | $ / shares | 7.21 |
Weighted average exercise (in dollars per share) | $ / shares | 6.46 |
Options vested and expected to vest (in dollars per share) | $ / shares | 6.51 |
Options exercisable (in dollars per share) | $ / shares | $ 6.82 |
Weighted Average Remaining Contractual Life | |
Options outstanding (in years) | 6 years 9 months 4 days |
Options vested and expected to vest (in years) | 6 years 6 months 22 days |
Options exercisable (in years) | 5 years 1 month 13 days |
Aggregate Intrinsic Value | |
Options outstanding | $ | $ 5,706 |
Options vested and expected to vest | $ | 5,075 |
Options exercisable | $ | $ 2,239 |
Stock-based compensation - Summary of RSU activity (Details) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Dec. 31, 2016
USD ($)
shares
|
Dec. 31, 2016
USD ($)
shares
|
|
RSU awards | ||
Number of Shares | ||
Beginning balance (shares) | 3,302,000 | |
Granted (in shares) | 951,000 | |
Vested (in shares) | (853,000) | |
Canceled (shares) | (338,000) | |
Ending balance (shares) | 3,062,000 | 3,062,000 |
RSUs outstanding, weighted average remaining contractual life (in years) | 1 year 6 months 11 days | |
RSUs outstanding, aggregate intrinsic value | $ | $ 21,589 | $ 21,589 |
RSUs expected to vest at period end (shares) | 2,549,000 | 2,549,000 |
RSUs expected to vest, weighted average remaining contractual life (in years) | 1 year 5 months 1 day | |
RSUs expected to vest, aggregate intrinsic value | $ | $ 17,970 | $ 17,970 |
Performance Share Program 2015 | Performance-based Restricted Stock Units | ||
Number of Shares | ||
Granted (in shares) | 106,000 | |
Vested (in shares) | 0 | |
Canceled (shares) | (70,000) | (36,000) |
Stock-based compensation - Summary of shares available for grant activity (Details) - Equity Incentive Plan 2009 |
6 Months Ended |
---|---|
Dec. 31, 2016
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |
Shares available for grant (in shares) | 1,719,000 |
Additional shares authorized (in shares) | 1,666,666 |
Granted (in shares) | (2,228,000) |
RSUs withheld for taxes in net share settlements (in shares) | 291,000 |
Canceled (in shares) | 539,000 |
Shares available for grant (in shares) | 1,988,000 |
Stock-based compensation - Summary of stock-based compensation expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,988 | $ 3,180 | $ 4,529 | $ 6,267 |
Stock option awards | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 553 | 441 | 1,027 | 851 |
RSU awards | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,435 | $ 2,739 | $ 3,502 | $ 5,416 |
Stock-based compensation - Assumptions used to estimate weighted average fair value of options (Details) - Stock options |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility (in percentage) | 39.00% | 52.00% | 39.00% | 52.00% |
Expected term (in years) | 4 years 5 months 12 days | 4 years 5 months 23 days | 4 years 2 months 9 days | 4 years 5 months 16 days |
Risk-free interest rate (in percentage) | 1.82% | 1.52% | 1.24% | 1.54% |
Dividend yield (in percentage) | 0.00% | 0.00% | 0.00% | 0.00% |
Income taxes (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Jul. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2016 |
|
Operating Loss Carryforwards [Line Items] | ||||||
Provision (benefit) for income taxes | $ 537 | $ 327 | $ 142 | $ 440 | ||
Effective tax rate (percentage) | (1.00%) | 1.00% | ||||
Unrecognized tax benefit | 6,700 | $ 6,700 | $ 5,500 | |||
Unrecognized tax benefits that would affect effective tax rate | 468 | 468 | 1,600 | |||
Interest and penalties related to unrecognized tax positions accrued | $ 304 | $ 304 | 570 | |||
Deferred tax assets valuation allowance | $ 29,800 | |||||
State and Local Jurisdiction | New York State Division of Taxation and Finance | Tax Year 2010 - Tax Year 2012 | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Provision (benefit) for income taxes | $ (1,000) | |||||
Payments for income tax examination settlement | $ 442 |
Segments (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
segment
|
Dec. 31, 2015
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Revenue | $ 52,001 | $ 45,253 | $ 94,228 | $ 89,314 |
Cost of revenue | 28,727 | 24,532 | 52,203 | 47,919 |
Gross profit | $ 23,274 | $ 20,721 | $ 42,025 | $ 41,395 |
Gross margin (in percent) | 45.00% | 46.00% | 45.00% | 46.00% |
Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 38,744 | $ 31,846 | $ 69,011 | $ 63,589 |
Cost of revenue | 23,438 | 18,931 | 41,983 | 37,452 |
Gross profit | $ 15,306 | $ 12,915 | $ 27,028 | $ 26,137 |
Gross margin (in percent) | 40.00% | 41.00% | 39.00% | 41.00% |
Advertising | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 8,208 | $ 6,688 | $ 14,753 | $ 11,539 |
Cost of revenue | 3,919 | 3,755 | 7,445 | 6,750 |
Gross profit | $ 4,289 | $ 2,933 | $ 7,308 | $ 4,789 |
Gross margin (in percent) | 52.00% | 44.00% | 50.00% | 42.00% |
Mobile Navigation | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 5,049 | $ 6,719 | $ 10,464 | $ 14,186 |
Cost of revenue | 1,370 | 1,846 | 2,775 | 3,717 |
Gross profit | $ 3,679 | $ 4,873 | $ 7,689 | $ 10,469 |
Gross margin (in percent) | 73.00% | 73.00% | 73.00% | 74.00% |
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