Income taxes (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of income (loss) before provision for income taxes were as follows (in thousands):



	Fiscal Year Ended June 30,
	2020			2019			2018
United States	$	(1,667	)	$	(28,834	)	$	(39,278	)
Foreign	5,239			4,558			2,860
Income (loss) from continuing operations before provision for income taxes	3,572			(24,276		)	(36,418		)
Equity in net income of equity method investees	876			—			—
Loss on discontinued operations before provision for income taxes	(4,042		)	(6,929		)	(3,404		)
Total income (loss) before provision for income taxes	$	406		$	(31,205	)	$	(39,822	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for continuing operations consists of the following (in thousands):



	Fiscal Year Ended June 30,
	2020			2019			2018
Current income taxes:
Federal	$	—		$	—		$	—
State	40			14			32
Foreign	2,047			1,598			1,048
Total current income taxes	2,087			1,612			1,080
Deferred income taxes:
Federal	—			17			—
State	—			—			—
Foreign	(751		)	(253		)	(68		)
Total deferred income taxes	(751		)	(236		)	(68		)
Total provision for income taxes	$	1,336		$	1,376		$	1,012

Schedule of Effective Income Tax Rate Reconciliation

The provision (benefit) for income taxes for continuing operations differs from the amount computed by applying the statutory federal income tax rate as follows (in thousands):



	Fiscal Year Ended June 30,
	2020			2019			2018
Tax at federal statutory tax rate	$	85		$	(5,098	)	$	(11,150	)
State taxes—net of federal benefit	40			15			32
Non-deductible expenses	157			110			88
Goodwill impairment	—			537			746
Foreign withholding taxes	486			340			527
Foreign income taxed at different rates	(289		)	(66		)	(309		)
Stock-based compensation expense	(87		)	1,002			653
Tax exempt income	(73		)	(94		)	(136		)
Change in valuation allowance	239			4,068			(8,396		)
One-time transition tax	—			—			44
Remeasurement of deferred tax assets and liabilities	—			—			18,900
FIN 48	—			114			15
GILTI inclusion	778			451			—
Other	—			(3		)	(2		)
Total provision for income taxes	$	1,336		$	1,376		$	1,012

Schedule of Deferred Tax Assets and Liabilities

Significant components of our net deferred tax assets were as follows (in thousands):



	June 30,
	2020			2019
Deferred tax assets:
Federal, state and foreign net operating losses	$	38,569		$	57,809
Federal and state tax credits	15,861			14,104
Stock-based compensation	2,442			2,885
Accrued expenses and reserves	24,973			13,659
Capitalized expense	—			34
Unrealized losses	282			481
Property and equipment	37			43
Operating lease liabilities	1,437			—
Acquired intangible assets	953			768
Total deferred tax assets	84,554			89,783
Deferred tax liabilities:
Property and equipment	(66		)	(79		)
Capitalized software	(17,579		)	(17,848		)
Deferred revenue	(14,777		)	(22,486		)
Unrealized gains	(25		)	(236		)
Operating lease right-of-use assets	(1,196		)	—
Investments	(2,617		)	—
Total deferred tax liabilities:	(36,260		)	(40,649		)
Deferred tax assets, net of liabilities:	48,294			49,134
Valuation allowance — worldwide	(46,804		)	(48,370		)
Net deferred tax assets	$	1,490		$	764

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):



	Fiscal Year Ended June 30,
	2020		2019			2018
Unrecognized tax benefit—beginning of period	$	4,600	$	3,820		$	3,035
Increase in tax positions taken during the current period	753		825			785
Increase in tax positions taken during the prior period	—		181			—
Decrease in tax positions taken during the prior period	—		(128		)	—
Decrease in tax positions due to settlements	—		(98		)	—
Lapse of statute of limitations	—		—			—
Unrecognized tax benefit—end of period	$	5,353	$	4,600		$	3,820