Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income (Loss) before Income Tax, Domestic and Foreign |
Income (loss) before income taxes is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Domestic |
|
$ |
(38,551 |
) |
|
$ |
(72,684 |
) |
|
$ |
(2,179 |
) |
Foreign |
|
|
42,824 |
|
|
|
(4,815 |
) |
|
|
96,285 |
|
Income (loss) before income taxes |
|
$ |
4,273 |
|
|
$ |
(77,499 |
) |
|
$ |
94,106 |
|
|
| Schedule of Components of Income Tax Expense (Benefit) |
The provision for income taxes for the years ended June 30, 2025, 2024 and 2023 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
2,921 |
|
|
$ |
1,340 |
|
|
$ |
3,221 |
|
State |
|
|
1,066 |
|
|
|
246 |
|
|
|
3,640 |
|
Foreign |
|
|
8,932 |
|
|
|
6,843 |
|
|
|
9,086 |
|
Total current |
|
|
12,919 |
|
|
|
8,429 |
|
|
|
15,947 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
412 |
|
|
|
404 |
|
|
|
368 |
|
State |
|
|
251 |
|
|
|
252 |
|
|
|
433 |
|
Foreign |
|
|
(1,842 |
) |
|
|
(620 |
) |
|
|
(716 |
) |
Total deferred |
|
|
(1,179 |
) |
|
|
36 |
|
|
|
85 |
|
Provision for income taxes |
|
$ |
11,740 |
|
|
$ |
8,465 |
|
|
$ |
16,032 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The difference between the provision for income taxes and the amount computed by applying the federal statutory income tax rate (21 percent) to income before income taxes is explained below (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
Tax at federal statutory rate |
|
$ |
898 |
|
|
$ |
(16,275 |
) |
|
$ |
19,762 |
|
State income tax, net of federal benefit |
|
|
842 |
|
|
|
194 |
|
|
|
3,003 |
|
Global intangible low-taxed income |
|
|
13,183 |
|
|
|
10,595 |
|
|
|
22,721 |
|
US valuation allowance change – deferred tax movement |
|
|
(10,417 |
) |
|
|
18,199 |
|
|
|
(24,682 |
) |
Research and development credits |
|
|
(5,359 |
) |
|
|
(7,746 |
) |
|
|
(1,503 |
) |
Tax impact of foreign earnings |
|
|
911 |
|
|
|
4,399 |
|
|
|
(5,627 |
) |
Foreign withholding taxes |
|
|
1,844 |
|
|
|
2,943 |
|
|
|
1,082 |
|
Stock based compensation |
|
|
3,000 |
|
|
|
(8,551 |
) |
|
|
(1,980 |
) |
Goodwill amortization |
|
|
549 |
|
|
|
549 |
|
|
|
730 |
|
Nondeductible officer compensation |
|
|
10,629 |
|
|
|
8,667 |
|
|
|
4,582 |
|
Nondeductible meals and entertainment |
|
|
256 |
|
|
|
319 |
|
|
|
324 |
|
Foreign tax credits |
|
|
(4,596 |
) |
|
|
(4,828 |
) |
|
|
(2,380 |
) |
Provision for income taxes |
|
$ |
11,740 |
|
|
$ |
8,465 |
|
|
$ |
16,032 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
Significant components of the Company’s deferred tax assets are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
June 30,
2025 |
|
|
June 30,
2024 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carry-forwards |
|
$ |
16,561 |
|
|
$ |
19,634 |
|
Tax credit carry-forwards |
|
|
53,347 |
|
|
|
62,936 |
|
Depreciation |
|
|
3,335 |
|
|
|
3,477 |
|
Intangible amortization |
|
|
16,337 |
|
|
|
19,846 |
|
Deferred revenue |
|
|
31,341 |
|
|
|
25,171 |
|
Inventory write-downs |
|
|
8,048 |
|
|
|
13,819 |
|
Other allowances and accruals |
|
|
40,835 |
|
|
|
33,031 |
|
Stock based compensation |
|
|
4,800 |
|
|
|
7,445 |
|
Deferred intercompany gain |
|
|
3,690 |
|
|
|
3,690 |
|
Ireland goodwill amortization |
|
|
3,422 |
|
|
|
4,142 |
|
Capitalization of research and development |
|
|
46,008 |
|
|
|
37,912 |
|
Operating lease liability |
|
|
7,667 |
|
|
|
8,560 |
|
Other |
|
|
911 |
|
|
|
858 |
|
Total deferred tax assets |
|
|
236,302 |
|
|
|
240,521 |
|
Valuation allowance |
|
|
(207,313 |
) |
|
|
(218,375 |
) |
Total net deferred tax assets |
|
|
28,989 |
|
|
|
22,146 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Goodwill amortization |
|
|
(16,335 |
) |
|
|
(14,403 |
) |
GAAP capitalized development costs |
|
|
(3,787 |
) |
|
|
— |
|
Operating lease right of use asset |
|
|
(6,264 |
) |
|
|
(6,906 |
) |
Prepaid commissions |
|
|
(4,017 |
) |
|
|
(3,499 |
) |
Deferred tax liability on foreign withholdings |
|
|
(969 |
) |
|
|
(854 |
) |
Total deferred tax liabilities |
|
|
(31,372 |
) |
|
|
(25,662 |
) |
Net deferred tax liabilities |
|
$ |
(2,383 |
) |
|
$ |
(3,516 |
) |
Recorded as: |
|
|
|
|
|
|
Net non-current deferred tax assets |
|
|
4,650 |
|
|
|
4,462 |
|
Net non-current deferred tax liabilities |
|
|
(7,033 |
) |
|
|
(7,978 |
) |
Net deferred tax liabilities |
|
$ |
(2,383 |
) |
|
$ |
(3,516 |
) |
|
| Schedule of Unrecognized Tax Benefits Roll Forward |
A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows (in thousands):
|
|
|
|
|
Balance at June 30, 2024 |
|
$ |
18,217 |
|
Decrease related to prior year tax positions |
|
|
— |
|
Increase related to prior year tax positions |
|
|
2 |
|
Increase related to current year tax positions |
|
|
22 |
|
Lapse of statute of limitations |
|
|
(127 |
) |
Balance at June 30, 2025 |
|
$ |
18,114 |
|
|