ALPHA & OMEGA SEMICONDUCTOR LTD, 10-Q filed on 2/6/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Dec. 31, 2014
Jan. 31, 2015
Entity Information [Line Items]
 
 
Entity Registrant Name
ALPHA & OMEGA SEMICONDUCTOR Ltd 
 
Entity Central Index Key
0001387467 
 
Current Fiscal Year End Date
--06-30 
 
Entity Filer Category
Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Dec. 31, 2014 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q2 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
26,656,866 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Jun. 30, 2014
Current assets:
 
 
Cash and cash equivalents
$ 120,647 
$ 117,788 
Restricted cash
203 
244 
Accounts receivable, net
26,704 
36,535 
Inventories
69,982 
66,560 
Deferred income tax assets
2,906 
2,842 
Other current assets
3,697 
3,810 
Total current assets
224,139 
227,779 
Property, plant and equipment, net
118,600 
123,254 
Intangible assets, net
18 
229 
Goodwill
269 
269 
Deferred income tax assets - long term
10,950 
10,854 
Other long-term assets
1,771 
1,963 
Total assets
355,747 
364,348 
Current liabilities:
 
 
Short term debt
7,143 
13,821 
Accounts payable
33,731 
38,760 
Accrued liabilities
18,559 
17,376 
Income taxes payable
1,389 
1,933 
Deferred margin
654 
665 
Capital leases
966 
1,061 
Total current liabilities
62,442 
73,616 
Income taxes payable - long term
2,357 
2,315 
Deferred income tax liabilities
3,220 
3,234 
Capital leases - long term
550 
1,005 
Other long term liabilities
1,053 
1,143 
Total liabilities
69,622 
81,313 
Commitments and contingencies (Note 9)
   
   
Preferred shares, par value $0.002 per share:
 
 
Authorized: 10,000 shares, issued and outstanding: none at December 31, 2014 and June 30, 2014
0 
0 
Common shares, par value $0.002 per share:
 
 
Authorized: 50,000 shares, issued and outstanding: 26,988 shares and 26,651 shares at December 31, 2014 and 26,644 shares and 26,304 shares at June 30, 2014
54 
53 
Treasury shares at cost, 337 shares at December 31, 2014 and 340 shares at June 30, 2014
(2,854)
(2,889)
Additional paid-in capital
178,052 
174,084 
Accumulated other comprehensive income
887 
1,033 
Retained earnings
109,986 
110,754 
Total shareholders’ equity
286,125 
283,035 
Total liabilities and shareholders’ equity
$ 355,747 
$ 364,348 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Dec. 31, 2014
Jun. 30, 2014
Common shares, par value (in dollars per share)
$ 0.002 
$ 0.002 
Common shares, authorized (in shares)
50,000,000 
50,000,000 
Common stock, shares issued (in shares)
26,988,000 
26,644,000 
Common stock, shares outstanding (in shares)
26,651,000 
26,304,000 
Preferred stock, par value (in dollars per share)
$ 0.002 
$ 0.002 
Preferred stock, shares authorized (in shares)
10,000,000 
10,000,000 
Preferred stock, shares issued (in shares)
0 
0 
Preferred stock, shares outstanding (in shares)
0 
0 
Treasury shares (in shares)
337,000 
340,000 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Revenue
$ 81,328 
$ 76,265 
$ 169,545 
$ 160,386 
Cost of goods sold
66,086 
62,646 
136,143 
129,616 
Gross profit
15,242 
13,619 
33,402 
30,770 
Operating expenses
 
 
 
 
Research and development
6,430 
4,972 
13,226 
11,819 
Selling, general and administrative
9,135 
7,309 
18,739 
16,249 
Total operating expenses
15,565 
12,281 
31,965 
28,068 
Operating income (loss)
(323)
1,338 
1,437 
2,702 
Interest income and other, net
26 
14 
74 
38 
Interest expense
(43)
(69)
(116)
(148)
Income (loss) before income taxes
(340)
1,283 
1,395 
2,592 
Income tax expense
957 
1,123 
2,128 
2,125 
Net income (loss)
$ (1,297)
$ 160 
$ (733)
$ 467 
Net income (loss) per share
 
 
 
 
Basic (in dollars per share)
$ (0.05)
$ 0.01 
$ (0.03)
$ 0.02 
Diluted (in dollars per share)
$ (0.05)
$ 0.01 
$ (0.03)
$ 0.02 
Weighted average number of common shares used to compute net income (loss) per share
 
 
 
 
Basic (in shares)
26,577 
25,846 
26,481 
25,765 
Diluted (in shares)
26,577 
26,462 
26,481 
26,385 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Net income (loss)
$ (1,297)
$ 160 
$ (733)
$ 467 
Foreign currency translation adjustment, net of tax
(98)
(5)
(146)
49 
Total comprehensive income (loss)
$ (1,395)
$ 155 
$ (879)
$ 516 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Cash flows from operating activities
 
 
Net income (loss)
$ (733)
$ 467 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
Depreciation
13,911 
13,748 
Amortization
139 
200 
Allowance for doubtful accounts
0 
(363)
Share-based compensation expense
2,379 
1,314 
Deferred income taxes, net
(174)
497 
(Gain) loss on disposal of property and equipment
36 
(120)
Government grant via forgiven loan
(250)
0 
Changes in assets and liabilities:
 
 
Accounts receivable
9,830 
(341)
Inventories
(3,422)
5,572 
Other current and long-term assets
307 
(292)
Accounts payable
(6,940)
(5,961)
Income taxes payable
(502)
(287)
Accrued and other liabilities
471 
607 
Net cash provided by operating activities
15,052 
15,041 
Cash flows from investing activities
 
 
Purchases of property and equipment
(6,938)
(3,282)
Proceeds from sale of property and equipment
0 
244 
Restricted cash released (placed)
(40)
2 
Net cash used in investing activities
(6,898)
(3,040)
Cash flows from financing activities
 
 
Proceeds from exercise of stock options and ESPP
1,759 
930 
Repayments of borrowings
(6,429)
(2,143)
Principal payments on capital leases
(551)
(667)
Net cash used in financing activities
(5,221)
(1,880)
Effect of exchange rate changes on cash and cash equivalents
(74)
6 
Net increase in cash and cash equivalents
2,859 
10,127 
Cash and cash equivalents at beginning of period
117,788 
92,406 
Cash and cash equivalents at end of period
120,647 
102,533 
Supplemental disclosures of non-cash investing and financing information:
 
 
Property and equipment purchased but not yet paid
5,673 
1,808 
Re-issuance of treasury stock
$ 35 
$ 41 
The Company and Significant Accounting Policies
The Company and Significant Accounting Policies
The Company and Significant Accounting Policies
The Company
Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company,” "AOS," "we" or "us") design, develop and supply a broad range of power semiconductors. The Company's portfolio of products targets high-volume applications, including portable computers, flat panel TVs, LED lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. The Company conducts its operations primarily in the United States of America (“USA”), Hong Kong, Macau, China, Taiwan, Korea and Japan.
Basis of Preparation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the period presented have been included in the interim periods. Operating results for the three and six months ended December 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015. The condensed consolidated balance sheet at June 30, 2014 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014.
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's condensed consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets.
Fair Value of Financial Instruments
The fair value of cash equivalents are based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the Company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure and terms of the debts.
Comprehensive Income (Loss)
Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. Total comprehensive income (loss) is presented in the condensed consolidated statements of comprehensive income (loss).
Recent Accounting Pronouncements
    
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact of the adoption on its consolidated financial statements.

In August 2014, the FASB issued amended standards No. 2014-15, Presentation of Financial Statements - Going Concern ('ASU 2014-15"), to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures requirement. The amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation for each annual and interim reporting period, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows.
Net Income Per Share
Net Income Per Share
Net Income (Loss) Per Share
The following table presents the calculation of basic and diluted net income (loss) per share:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
 
(in thousands, except per share data)
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
(1,297
)
 
$
160

 
$
(733
)
 
$
467

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
Weighted average number of common shares used to compute basic net income per share
26,577

 
25,846

 
26,481

 
25,765

Diluted:
 
 
 
 
 
 
 
Weighted average number of common shares used to compute basic net income per share
26,577

 
25,846

 
26,481

 
25,765

Effect of potentially dilutive securities:
 
 
 
 
 
 
 
Stock options, RSUs and ESPP shares
—

 
616

 
—

 
620

Weighted average number of common shares used to compute diluted net income per share
26,577

 
26,462

 
26,481

 
26,385

Net income (loss) per share:
 
 
 
 
 
 
 
Basic
$
(0.05
)
 
$
0.01

 
$
(0.03
)
 
$
0.02

Diluted
$
(0.05
)
 
$
0.01

 
$
(0.03
)
 
$
0.02


The following potential dilutive securities were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
Employee stock options and RSUs
3,694

 
2,700

 
3,758

 
2,742

ESPP to purchase common shares
462

 
302

 
441

 
304

Total potential dilutive securities
4,156

 
3,002

 
4,199

 
3,046

Concentration of Credit Risk and Significant Customers
Concentration of Credit Risk and Significant Customers
Concentration of Credit Risk and Significant Customers
The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers.
Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, when available.
Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
Percentage of revenue
2014
 
2013
 
2014
 
2013
Customer A
24.2
%
 
22.7
%
 
24.2
%
 
21.6
%
Customer B
37.1
%
 
42.2
%
 
38.4
%
 
43.3
%
Customer C
11.5
%
 
13.0
%
 
12.2
%
 
12.4
%

 
December 31,
2014
 
June 30,
2014
Percentage of accounts receivable
 
Customer A
22.6
%
 
23.1
%
Customer B
19.6
%
 
30.5
%
Customer C
21.7
%
 
17.4
%
Balance Sheet Components
Balance Sheet Components
Balance Sheet Components
Accounts receivable:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Accounts receivable
$
43,208

 
$
51,128

Less: Allowance for price adjustments
(16,474
)
 
(14,563
)
Less: Allowance for doubtful accounts
(30
)
 
(30
)
Accounts receivable, net
$
26,704

 
$
36,535



Inventories:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Raw materials
$
18,944

 
$
18,996

Work in-process
34,464

 
36,003

Finished goods
16,574

 
11,561

 
$
69,982

 
$
66,560


 
Property, plant and equipment, net:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Land
$
4,950

 
$
4,950

Building
4,241

 
4,106

Manufacturing machinery and equipment
168,131

 
161,354

Equipment and tooling
10,821

 
10,486

Computer equipment and software
20,360

 
19,319

Office furniture and equipment
1,609

 
1,643

Leasehold improvements
25,727

 
25,154

 
235,839

 
227,012

Less: Accumulated depreciation
(128,400
)
 
(114,658
)
 
107,439

 
112,354

Equipment and construction in progress
11,161

 
10,900

Property, plant and equipment, net
$
118,600

 
$
123,254


Other long-term assets:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Prepayments for property and equipment
$
1,239

 
$
1,435

Investment in a privately held company
100

 
100

Office leases deposits
432

 
428

 
$
1,771

 
$
1,963


Accrued liabilities:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Accrued compensation and benefit
$
5,337

 
$
4,879

Accrued vacation
1,666

 
1,777

Accrued bonuses
2,170

 
1,873

Warranty accrual
1,188

 
1,346

Stock rotation accrual
1,663

 
1,645

Accrued professional fees
1,094

 
1,001

ESPP payable
345

 
323

Customer deposits
56

 
104

Accrued inventory
672

 
590

Accrued facilities related expenses
1,602

 
1,353

Other accrued expenses
2,766

 
2,485

 
$
18,559

 
$
17,376




The activities in the warranty accrual, included in accrued liabilities, are as follows:
 
Six Months Ended December 31,
 
2014
 
2013
 
(in thousands)
Beginning balance
$
1,346

 
$
1,428

Additions
910

 
1,239

Utilization
(1,068
)
 
(1,171
)
Ending balance
$
1,188

 
$
1,496


The activities in the stock rotation accrual, included in accrued liabilities, are as follows:
 
Six Months Ended December 31,
 
2014
 
2013
 
(in thousands)
Beginning balance
$
1,645

 
$
1,572

Additions
2,820

 
2,332

Utilization
(2,802
)
 
(2,424
)
Ending balance
$
1,663

 
$
1,480


Other Long-term liabilities:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Deferred rent
$
1,050

 
$
1,143

Customer deposit
3

 
—

 
$
1,053

 
$
1,143

Debt
Debt
Debt
On May 11, 2012, the Company entered into a loan agreement with a financial institution that provides a term loan of $20.0 million for general purposes and a $10.0 million non-revolving credit line for the purchase of equipment. Both the term loan and equipment line will be fully repayable in May 2015. The borrowings may be made in the form of either Eurodollar loans or Base Rate loans. Eurodollar loans accrue interest based on an adjusted London Interbank Offered Rate ("LIBOR") as defined in the agreement, plus a margin of 1.00% to 1.75%. Base Rate loans accrue interest at the highest of (a) the lender's Prime Rate, (b) the Federal Funds Rate plus 0.5% and (c) the Eurodollar Rate (for a one-month interest period) plus 1%; plus a margin of -0.5% to 0.25%. The applicable margins for both Eurodollar loans and Base Rate loans will vary from time to time in the foregoing ranges based on the cash and cash equivalent balances maintained by the Company and its subsidiaries with the lender. In May 2013, the equipment credit line expired and there was no outstanding balance. As of December 31, 2014 and June 30, 2014, the outstanding balances of the term loan were $7.1 million and $13.6 million, respectively.

The obligations under the loan agreement are secured by substantially all assets of two subsidiaries of the Company, including, but not limited to, certain real property and related assets located at the Oregon fab. In addition, the Company and certain subsidiaries of the Company have agreed to guarantee full repayment and performance of the obligations under the loan agreement. The loan agreement contains customary restrictive covenants and includes certain financial covenants that require the Company to maintain on a consolidated basis specified financial ratios including total liabilities to tangible net worth, fixed charge coverage and current assets to current liabilities. As of December 31, 2014, the Company was in compliance with these covenants.
During July 2012, the Company entered into a loan agreement with the State of Oregon for an amount of $0.3 million. The loan was required to be used for training new and re-training existing employees of the Oregon fab. The loan bore a compound annual interest rate of 5.0% and was to be repaid in April 2014 if the required conditions were not met. In September 2014, the State of Oregon forgave the outstanding balance in full as we had satisfied the conditions. The $0.3 million loan forgiven was recorded as a reduction of costs of goods sold in our condensed consolidated statements of operations.
Shareholders' Equity and Share-based Compensation
Shareholders' Equity and Share-based Compensation
Shareholders' Equity and Share-based Compensation
Share Repurchase

On May 8, 2014, our Board of Directors approved to reactivate the share repurchase program which was originally authorized on October 22, 2010 for a total amount of $25.0 million.  The Board authorized management to repurchase, subject to oversight by the Board, our common shares up to the remaining balance of the program, or $22.7 million.  The repurchases may be made from the open market or through privately negotiated transactions. Open market repurchases will be made pursuant to a pre-established 10b5-1 trading plan with specified amount of shares and price for the repurchases. The amount and timing of any repurchases will depend on a number of factors, including but not limited to, the trading price, volume and availability of our common shares, applicable legal requirements, our business and financial conditions and general market environment. The Company accounts for treasury stock under the cost method. Shares repurchased are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. From time to time, treasury shares may be reissued as part of the Company's stock-based compensation programs. Gains on re-issuance of treasury stock are credited to additional paid-in capital; losses are charged to additional paid-in capital to offset the net gains, if any, from previous sales or re-issuance of treasury stock. Any remaining balance of the losses are charged to retained earnings.

During the six months ended December 31, 2014, the Company did not repurchase any shares under the share repurchase program.  Since the inception of the program in 2010, the Company repurchased an aggregate of 361,364 shares from the open market for a total cost of $3.2 million, at an average price of $8.82 per share.  No repurchased shares have been retired. Of the 361,364 repurchased shares, 24,150 shares with a weighted average repurchase price of $13.82 per share, were reissued at an average price of $2.69 per share for option exercises and vested RSU.
Stock Options
The following table summarizes the Company's stock option activities for the six months ended December 31, 2014:
 
 
 
Weighted
 
 
 
 
 
Average
 
 
 
Number of
 
Exercise Price
 
Aggregate
 
Shares
 
Per Share
 
Intrinsic Value
Outstanding at June 30, 2014
3,238,784

 
$
10.28

 
$
3,258,607

Granted
10,000

 
$
9.07

 
 
Exercised
(163,731
)
 
$
5.97

 
$
585,449

Canceled or forfeited
(41,650
)
 
$
13.66

 
 
Outstanding at December 31, 2014
3,043,403

 
$
10.47

 
$
2,139,768


Information with respect to stock options outstanding and exercisable at December 31, 2014 is as follows:
 
Options Outstanding  
 
Options Vested and Exercisable  
 
Number Outstanding
 
Weighted-Average
Remaining Contractual Life (years) 
 
Weighted-Average
Exercise Price
 
Number Exercisable
 
Weighted-Average
Exercise Price
Total options outstanding
3,043,403

 
5.51
 
$
10.47

 
2,161,744

 
$
11.34

Options vested and expected to vest
2,963,102

 
5.42
 
$
10.54

 
 
 
 
Options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options.
The fair value of stock options granted were estimated at the date of grant using the Black-Scholes option valuation model for the six months ended December 31, 2014 with the following weighted average assumptions:
 
Six Months Ended December 31,
 
2014
Volatility rate
41.9%
Risk-free interest rate
1.7% - 1.8%
Expected term
5.5 years
Dividend yield
0%

Historically, the Company estimates its expected volatility based on that of the publicly traded shares of industry peers over a period equivalent to the expected term of the stock awards granted. Beginning in July 2015, the Company estimates its expected volatility based on a weighted average calculation of both the Company's volatility of its publicly traded share prices since its IPO and that of the publicly traded shares of industry peers over a period equivalent to the expected term of the stock awards granted.
Restricted Stock Units ("RSU")
The following table summarizes the Company's RSU activities for the six months ended December 31, 2014:
 
Number of Restricted Stock
Units
 
Weighted Average
Grant Date Fair
Value Per Share
 
Weighted Average
Remaining
Recognition
Period (Years)
 
Aggregate Intrinsic Value
Nonvested at June 30, 2014
656,374

 
$
8.40

 
1.77
 
$
6,084,587

Granted
78,642

 
$
9.18

 
 
 
 
Vested
(75,423
)
 
$
9.19

 
 
 
 
Forfeited
(31,250
)
 
$
8.53

 
 
 
 
Nonvested at December 31, 2014
628,343

 
$
8.40

 
1.52
 
$
5,560,836

RSUs vested and expected to vest
555,613

 
 
 
1.43
 
$
4,917,176

The fair value of RSU is estimated based on the market price of the Company's share on the date of grant.
Employee Share Purchase Plan ("ESPP")
The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:
 
 
 
Six Months Ended December 31,
 
2014
Volatility rate
50%
Risk-free interest rate
0.1% - 0.5%
Expected term
1.3 years
Dividend yield
0%

Share-based Compensation Expense
The total share-based compensation expense related to stock options, ESPP and RSUs described above, recognized in the condensed consolidated statements of operations for the periods presented was as follows:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
 
(in thousands)
Cost of goods sold
$
174

 
$
142

 
$
328

 
$
338

Research and development
293

 
(32
)
 
499

 
263

Selling, general and administrative
810

 
(5
)
 
1,552

 
713

 
$
1,277

 
$
105

 
$
2,379

 
$
1,314


Total unrecognized stock-based compensation expense as of December 31, 2014 was $4.1 million, which includes estimated forfeitures and is expected to be recognized over a weighted-average period of 1.4 years.
Income Taxes
Income Taxes
Income Taxes
The Company recognized income tax expense of approximately $1.0 million and $1.1 million for the three months ended December 31, 2014 and 2013, respectively. The Company recognized income tax expense of approximately $2.1 million and $2.1 million for the six months ended December 31, 2014 and 2013, respectively. The estimated effective tax rate for the three months ended December 31, 2014 was 281.5% compared to 87.5% for the three months ended December 31, 2013. The estimate effective tax rate was 152.5% and 82.0% for the six months ended December 31, 2014 and 2013, respectively. The effective tax rate for the three and the six months ended December 31, 2014 was higher than the effective tax rate for the same period last year primarily due to the changes in the mix of earnings in various geographic jurisdictions between the two periods.
The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2014 remain open to examination by U.S. federal and state tax authorities. The tax years 2005 to 2014 remain open to examination by foreign tax authorities.
The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of December 31, 2014, the gross amount of unrecognized tax benefits was approximately $7.0 million, of which $4.9 million, if recognized, would reduce the effective income tax rate in future periods. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months.
Segment and Geographic Information
Segment and Geographic Information
Segment and Geographic Information
The Company is organized as, and operates in, one operating segment: the design, development and supply of power semiconductor products for computing, consumer electronics, communication and industrial applications. The chief operating decision-maker is the Chief Executive Officer. The financial information presented to the Company's Chief Executive Officer is on a consolidated basis, accompanied by information about revenue by customer and geographic region, for purposes of evaluating financial performance and allocating resources. The Company has one business segment, and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. Accordingly, the Company reports as a single operating segment.
The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. Because the Company's distributors sell their products to end customers which may have a global presence, revenue by geographical location is not necessarily representative of the geographical distribution of sales to end user markets.
The revenue by geographical location in the following tables is based on the country or region to which the products were shipped to:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
 
(in thousands)
Hong Kong
$
70,278

 
$
64,229

 
$
145,525

 
$
135,485

China
8,823

 
10,156

 
19,780

 
21,048

South Korea
524

 
745

 
1,163

 
1,542

United States
881

 
425

 
1,564

 
898

Other countries
822

 
710

 
1,513

 
1,413

 
$
81,328

 
$
76,265

 
$
169,545

 
$
160,386

The following is a summary of revenue by product type:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
 
(in thousands)
Power discrete
$
61,203

 
$
58,946

 
$
126,094

 
$
124,091

Power IC
16,109

 
13,226

 
$
35,265

 
$
26,838

Packaging and testing services
4,016

 
4,093

 
$
8,186

 
$
9,457

 
$
81,328

 
$
76,265

 
$
169,545

 
$
160,386

 
Long-lived assets, net consisting of property, plant and equipment, by geographical area are as follows:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
China
$
76,118

 
$
80,736

United States
41,988

 
42,106

Other Countries
494

 
412

 
$
118,600

 
$
123,254

Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Purchase Commitments
As of December 31, 2014 and June 30, 2014, the Company had approximately $21.7 million and $34.5 million, respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts and packaging and testing services, and approximately $9.9 million and $4.6 million, respectively, of capital commitments for the purchase of property and equipment.
Contingencies and Indemnities
The Company is currently not a party to any pending material legal proceedings. The Company has in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities.  The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, the Company could incur significant costs in the defense of such claims and suffer adverse effects on its operations.
The Company is a party to a variety of agreements that it has contracted with various third parties. Pursuant to these agreements, the Company may be obligated to indemnify another party to such an agreement with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold, certain intellectual property rights, specified environmental matters and certain income taxes. In these circumstances, payment by the Company is customarily conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claim. Further, the Company's obligations under these agreements may be limited in time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. The Company has not historically paid or recorded any material indemnifications and no accrual has been made at December 31, 2014 and June 30, 2014.
The Company has agreed to indemnify its directors and certain employees as permitted by law and pursuant to its bye-laws, and has entered into indemnification agreements with its directors and executive officers. The Company has not recorded a liability associated with these indemnification arrangements, as it historically has not incurred any material costs associated with such indemnification obligations. Costs associated with such indemnification obligations may be mitigated by insurance coverage that the Company maintains. However, such insurance may not cover any, or may cover only a portion of, the amounts the Company may be required to pay. In addition, the Company may not be able to maintain such insurance coverage in the future.
The Company and Significant Accounting Policies (Policies)
Concentration Risk, Credit Risk, Policy [Policy Text Block] 
The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers.
Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, when available.
Basis of Preparation 
Basis of Preparation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the period presented have been included in the interim periods. Operating results for the three and six months ended December 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2015. The condensed consolidated balance sheet at June 30, 2014 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014.
Use of Estimates 
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's condensed consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets.
Fair Value of Financial Instruments 
Fair Value of Financial Instruments
The fair value of cash equivalents are based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the Company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure and terms of the debts.
Comprehensive Income (Loss) 
Comprehensive Income (Loss)
Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. Total comprehensive income (loss) is presented in the condensed consolidated statements of comprehensive income (loss).
Recent Accounting Pronouncements 
Recent Accounting Pronouncements
    
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact of the adoption on its consolidated financial statements.

In August 2014, the FASB issued amended standards No. 2014-15, Presentation of Financial Statements - Going Concern ('ASU 2014-15"), to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures requirement. The amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation for each annual and interim reporting period, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows.
Net Income Per Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted 
The following table presents the calculation of basic and diluted net income (loss) per share:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
 
(in thousands, except per share data)
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
(1,297
)
 
$
160

 
$
(733
)
 
$
467

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
Weighted average number of common shares used to compute basic net income per share
26,577

 
25,846

 
26,481

 
25,765

Diluted:
 
 
 
 
 
 
 
Weighted average number of common shares used to compute basic net income per share
26,577

 
25,846

 
26,481

 
25,765

Effect of potentially dilutive securities:
 
 
 
 
 
 
 
Stock options, RSUs and ESPP shares
—

 
616

 
—

 
620

Weighted average number of common shares used to compute diluted net income per share
26,577

 
26,462

 
26,481

 
26,385

Net income (loss) per share:
 
 
 
 
 
 
 
Basic
$
(0.05
)
 
$
0.01

 
$
(0.03
)
 
$
0.02

Diluted
$
(0.05
)
 
$
0.01

 
$
(0.03
)
 
$
0.02

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share 
The following potential dilutive securities were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
Employee stock options and RSUs
3,694

 
2,700

 
3,758

 
2,742

ESPP to purchase common shares
462

 
302

 
441

 
304

Total potential dilutive securities
4,156

 
3,002

 
4,199

 
3,046

Concentration of Credit Risk and Significant Customers (Tables)
Schedules of Concentration of Risk, by Risk Factor
Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
Percentage of revenue
2014
 
2013
 
2014
 
2013
Customer A
24.2
%
 
22.7
%
 
24.2
%
 
21.6
%
Customer B
37.1
%
 
42.2
%
 
38.4
%
 
43.3
%
Customer C
11.5
%
 
13.0
%
 
12.2
%
 
12.4
%

 
December 31,
2014
 
June 30,
2014
Percentage of accounts receivable
 
Customer A
22.6
%
 
23.1
%
Customer B
19.6
%
 
30.5
%
Customer C
21.7
%
 
17.4
%
Balance Sheet Components (Tables)
Schedule of Accounts, Notes, Loans and Financing Receivable 
Accounts receivable:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Accounts receivable
$
43,208

 
$
51,128

Less: Allowance for price adjustments
(16,474
)
 
(14,563
)
Less: Allowance for doubtful accounts
(30
)
 
(30
)
Accounts receivable, net
$
26,704

 
$
36,535

Schedule of Inventory, Current 
Inventories:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Raw materials
$
18,944

 
$
18,996

Work in-process
34,464

 
36,003

Finished goods
16,574

 
11,561

 
$
69,982

 
$
66,560

Property, Plant and Equipment 
Property, plant and equipment, net:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Land
$
4,950

 
$
4,950

Building
4,241

 
4,106

Manufacturing machinery and equipment
168,131

 
161,354

Equipment and tooling
10,821

 
10,486

Computer equipment and software
20,360

 
19,319

Office furniture and equipment
1,609

 
1,643

Leasehold improvements
25,727

 
25,154

 
235,839

 
227,012

Less: Accumulated depreciation
(128,400
)
 
(114,658
)
 
107,439

 
112,354

Equipment and construction in progress
11,161

 
10,900

Property, plant and equipment, net
$
118,600

 
$
123,254

Schedule of Other Assets, Noncurrent 
Other long-term assets:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Prepayments for property and equipment
$
1,239

 
$
1,435

Investment in a privately held company
100

 
100

Office leases deposits
432

 
428

 
$
1,771

 
$
1,963

Schedule of Accrued Liabilities 
Accrued liabilities:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Accrued compensation and benefit
$
5,337

 
$
4,879

Accrued vacation
1,666

 
1,777

Accrued bonuses
2,170

 
1,873

Warranty accrual
1,188

 
1,346

Stock rotation accrual
1,663

 
1,645

Accrued professional fees
1,094

 
1,001

ESPP payable
345

 
323

Customer deposits
56

 
104

Accrued inventory
672

 
590

Accrued facilities related expenses
1,602

 
1,353

Other accrued expenses
2,766

 
2,485

 
$
18,559

 
$
17,376

Schedule of Product Warranty Liability 
The activities in the warranty accrual, included in accrued liabilities, are as follows:
 
Six Months Ended December 31,
 
2014
 
2013
 
(in thousands)
Beginning balance
$
1,346

 
$
1,428

Additions
910

 
1,239

Utilization
(1,068
)
 
(1,171
)
Ending balance
$
1,188

 
$
1,496

Stock Rotation Accrual 
The activities in the stock rotation accrual, included in accrued liabilities, are as follows:
 
Six Months Ended December 31,
 
2014
 
2013
 
(in thousands)
Beginning balance
$
1,645

 
$
1,572

Additions
2,820

 
2,332

Utilization
(2,802
)
 
(2,424
)
Ending balance
$
1,663

 
$
1,480

Schedule of Other Noncurrent Liabilities 
Other Long-term liabilities:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
Deferred rent
$
1,050

 
$
1,143

Customer deposit
3

 
—

 
$
1,053

 
$
1,143

Shareholders' Equity and Share-based Compensation (Tables)
Summary of Stock Option Activities 
Stock Options
The following table summarizes the Company's stock option activities for the six months ended December 31, 2014:
 
 
 
Weighted
 
 
 
 
 
Average
 
 
 
Number of
 
Exercise Price
 
Aggregate
 
Shares
 
Per Share
 
Intrinsic Value
Outstanding at June 30, 2014
3,238,784

 
$
10.28

 
$
3,258,607

Granted
10,000

 
$
9.07

 
 
Exercised
(163,731
)
 
$
5.97

 
$
585,449

Canceled or forfeited
(41,650
)
 
$
13.66

 
 
Outstanding at December 31, 2014
3,043,403

 
$
10.47

 
$
2,139,768


Information with respect to stock options outstanding and exercisable at December 31, 2014 is as follows:
 
Options Outstanding  
 
Options Vested and Exercisable  
 
Number Outstanding
 
Weighted-Average
Remaining Contractual Life (years) 
 
Weighted-Average
Exercise Price
 
Number Exercisable
 
Weighted-Average
Exercise Price
Total options outstanding
3,043,403

 
5.51
 
$
10.47

 
2,161,744

 
$
11.34

Options vested and expected to vest
2,963,102

 
5.42
 
$
10.54

 
 
 
 
Options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] 
The fair value of stock options granted were estimated at the date of grant using the Black-Scholes option valuation model for the six months ended December 31, 2014 with the following weighted average assumptions:
 
Six Months Ended December 31,
 
2014
Volatility rate
41.9%
Risk-free interest rate
1.7% - 1.8%
Expected term
5.5 years
Dividend yield
0%
Restricted Stock Units Activity 
Restricted Stock Units ("RSU")
The following table summarizes the Company's RSU activities for the six months ended December 31, 2014:
 
Number of Restricted Stock
Units
 
Weighted Average
Grant Date Fair
Value Per Share
 
Weighted Average
Remaining
Recognition
Period (Years)
 
Aggregate Intrinsic Value
Nonvested at June 30, 2014
656,374

 
$
8.40

 
1.77
 
$
6,084,587

Granted
78,642

 
$
9.18

 
 
 
 
Vested
(75,423
)
 
$
9.19

 
 
 
 
Forfeited
(31,250
)
 
$
8.53

 
 
 
 
Nonvested at December 31, 2014
628,343

 
$
8.40

 
1.52
 
$
5,560,836

RSUs vested and expected to vest
555,613

 
 
 
1.43
 
$
4,917,176

The fair value of RSU is estimated based on the market price of the Company's share on the date of grant.
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] 
Employee Share Purchase Plan ("ESPP")
The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:
 
 
 
Six Months Ended December 31,
 
2014
Volatility rate
50%
Risk-free interest rate
0.1% - 0.5%
Expected term
1.3 years
Dividend yield
0%
Share-based Compensation, Allocation of Recognized Period Costs 
Share-based Compensation Expense
The total share-based compensation expense related to stock options, ESPP and RSUs described above, recognized in the condensed consolidated statements of operations for the periods presented was as follows:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
 
(in thousands)
Cost of goods sold
$
174

 
$
142

 
$
328

 
$
338

Research and development
293

 
(32
)
 
499

 
263

Selling, general and administrative
810

 
(5
)
 
1,552

 
713

 
$
1,277

 
$
105

 
$
2,379

 
$
1,314

Segment and Geographic Information (Tables)
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas 
Long-lived assets, net consisting of property, plant and equipment, by geographical area are as follows:
 
December 31,
2014
 
June 30,
2014
 
(in thousands)
China
$
76,118

 
$
80,736

United States
41,988

 
42,106

Other Countries
494

 
412

 
$
118,600

 
$
123,254

The revenue by geographical location in the following tables is based on the country or region to which the products were shipped to:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
 
(in thousands)
Hong Kong
$
70,278

 
$
64,229

 
$
145,525

 
$
135,485

China
8,823

 
10,156

 
19,780

 
21,048

South Korea
524

 
745

 
1,163

 
1,542

United States
881

 
425

 
1,564

 
898

Other countries
822

 
710

 
1,513

 
1,413

 
$
81,328

 
$
76,265

 
$
169,545

 
$
160,386

Revenue from External Customers by Products and Services 
The following is a summary of revenue by product type:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
 
(in thousands)
Power discrete
$
61,203

 
$
58,946

 
$
126,094

 
$
124,091

Power IC
16,109

 
13,226

 
$
35,265

 
$
26,838

Packaging and testing services
4,016

 
4,093

 
$
8,186

 
$
9,457

 
$
81,328

 
$
76,265

 
$
169,545

 
$
160,386

Net Income Per Share - Basic and Diluted Income Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Numerator:
 
 
 
 
Net income (loss)
$ (1,297)
$ 160 
$ (733)
$ 467 
Basic:
 
 
 
 
Weighted average number of common shares used to compute basic net income per share
26,577 
25,846 
26,481 
25,765 
Effect of potentially dilutive securities:
 
 
 
 
Stock options, RSUs and ESPP shares (in shares)
0 
616 
0 
620 
Weighted average number of common shares used to compute diluted net income per share
26,577 
26,462 
26,481 
26,385 
Net income (loss) per share:
 
 
 
 
Basic (in dollars per share)
$ (0.05)
$ 0.01 
$ (0.03)
$ 0.02 
Diluted (in dollars per share)
$ (0.05)
$ 0.01 
$ (0.03)
$ 0.02 
Net Income Per Share - Potential Dilutive Shares (Details)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Potential dilutive securities (in shares)
4,156 
3,002 
4,199 
3,046 
Employee stock options and RSUs
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Potential dilutive securities (in shares)
3,694 
2,700 
3,758 
2,742 
ESPP to purchase common shares
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Potential dilutive securities (in shares)
462 
302 
441 
304 
Concentration of Credit Risk and Significant Customers - (Details)
6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended
Dec. 31, 2014
Minimum
Dec. 31, 2014
Maximum
Dec. 31, 2014
Customer A
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2013
Customer A
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2014
Customer A
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2013
Customer A
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2014
Customer A
Accounts Receivable
Customer Concentration Risk
Jun. 30, 2014
Customer A
Accounts Receivable
Customer Concentration Risk
Dec. 31, 2014
Customer B
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2013
Customer B
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2014
Customer B
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2013
Customer B
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2014
Customer B
Accounts Receivable
Customer Concentration Risk
Jun. 30, 2014
Customer B
Accounts Receivable
Customer Concentration Risk
Dec. 31, 2014
Customer C
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2013
Customer C
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2014
Customer C
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2013
Customer C
Sales Revenue, Goods, Net
Customer Concentration Risk
Dec. 31, 2014
Customer C
Accounts Receivable
Customer Concentration Risk
Jun. 30, 2014
Customer C
Accounts Receivable
Customer Concentration Risk
Concentration Risk
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Terms of credit sales, (in days)
30 days 
60 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers greater than 10% of total
 
 
24.20% 
22.70% 
24.20% 
21.60% 
22.60% 
23.10% 
37.10% 
42.20% 
38.40% 
43.30% 
19.60% 
30.50% 
11.50% 
13.00% 
12.20% 
12.40% 
21.70% 
17.40% 
Balance Sheet Components - Accounts receivable (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Jun. 30, 2014
Balance Sheet Related Disclosures [Abstract]
 
 
Accounts receivable
$ 43,208 
$ 51,128 
Less: Allowance for price adjustments
(16,474)
(14,563)
Less: Allowance for doubtful accounts
(30)
(30)
Accounts receivable, net
$ 26,704 
$ 36,535 
Balance Sheet Components - Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Jun. 30, 2014
Balance Sheet Related Disclosures [Abstract]
 
 
Raw materials
$ 18,944 
$ 18,996 
Work in-process
34,464 
36,003 
Finished goods
16,574 
11,561 
Inventory, net
$ 69,982 
$ 66,560 
Balance Sheet Components - Property, plant, and equipment (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Jun. 30, 2014
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
$ 235,839 
$ 227,012 
Less: Accumulated depreciation
(128,400)
(114,658)
Property, plant and equipment excluding equipment and construction in progress, net
107,439 
112,354 
Equipment and construction in progress
11,161 
10,900 
Property, plant and equipment, net
118,600 
123,254 
Land
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
4,950 
4,950 
Building
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
4,241 
4,106 
Manufacturing machinery and equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
168,131 
161,354 
Equipment and tooling
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
10,821 
10,486 
Computer equipment and software
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
20,360 
19,319 
Office furniture and equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
1,609 
1,643 
Leasehold improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant, and equipment excluding equipment and construction In progress, gross
$ 25,727 
$ 25,154 
Balance Sheet Components - Other long term assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Jun. 30, 2014
Balance Sheet Related Disclosures [Abstract]
 
 
Prepayments for property and equipment
$ 1,239 
$ 1,435 
Investment in a privately held company
100 
100 
Office leases deposits
432 
428 
Other long-term assets
$ 1,771 
$ 1,963 
Balance Sheet Components - Accrued liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Jun. 30, 2014
Dec. 31, 2013
Jun. 30, 2013
Balance Sheet Related Disclosures [Abstract]
 
 
 
 
Accrued compensation and benefit
$ 5,337 
$ 4,879 
 
 
Accrued vacation
1,666 
1,777 
 
 
Accrued bonuses
2,170 
1,873 
 
 
Warranty accrual
1,188 
1,346 
1,496 
1,428 
Stock rotation accrual
1,663 
1,645 
1,480 
1,572 
Accrued professional fees
1,094 
1,001 
 
 
ESPP payable
345 
323 
 
 
Customer deposits
56 
104 
 
 
Accrued inventory
672 
590 
 
 
Accrued facilities related expenses
1,602 
1,353 
 
 
Other accrued expenses
2,766 
2,485 
 
 
Accrued liabilities
$ 18,559 
$ 17,376 
 
 
Balance Sheet Components - Product Warranty Accrual (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
 
 
Beginning balance
$ 1,346 
$ 1,428 
Additions
910 
1,239 
Utilization
(1,068)
(1,171)
Ending balance
$ 1,188 
$ 1,496 
Balance Sheet Components - Stock Rotation Accrual (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Stock Rotation Accrual Increae (Decrease) [Roll Forward]
 
 
Beginning balance
$ 1,645 
$ 1,572 
Additions
2,820 
2,332 
Utilization
(2,802)
(2,424)
Ending balance
$ 1,663 
$ 1,480 
Balance Sheet Components - Other Long Term Liability (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Jun. 30, 2014
Balance Sheet Related Disclosures [Abstract]
 
 
Deferred rent
$ 1,050 
$ 1,143 
Customer deposit
3 
0 
Other long term liabilities
$ 1,053 
$ 1,143 
Debt - (Details) (USD $)
3 Months Ended 6 Months Ended 0 Months Ended
Sep. 30, 2014
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Variable Interest Rate Term Loan Maturing May 2015
Notes Payable to Banks
subsidiary
Jun. 30, 2014
Variable Interest Rate Term Loan Maturing May 2015
Notes Payable to Banks
May 11, 2012
Variable Interest Rate Term Loan Maturing May 2015
Notes Payable to Banks
Jul. 17, 2012
State of Oregon Loan
Loans Payable
May 11, 2012
London Interbank Offered Rate (LIBOR) [Member]
Minimum
May 11, 2012
London Interbank Offered Rate (LIBOR) [Member]
Maximum
May 11, 2012
Federal Funds Rate [Member]
May 11, 2012
Eurodollar [Member]
May 11, 2012
Eurodollar [Member]
Minimum
May 11, 2012
Eurodollar [Member]
Maximum
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Amount Outstanding
 
 
 
$ 0 
 
 
 
 
 
 
 
 
 
Loan, principal amount
 
 
 
 
 
20,000,000.0 
250,000 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
 
 
 
 
10,000,000.0 
 
 
 
 
 
 
 
Debt instrument, basis spread on variable rate
 
 
 
 
 
 
 
1.00% 
1.75% 
0.50% 
1.00% 
(0.50%)
0.25% 
Outstanding balance of loan
 
 
 
7,100,000 
13,600,000 
 
 
 
 
 
 
 
 
Number of subsidiaries securing obligations under loan agreement
 
 
 
2 
 
 
 
 
 
 
 
 
 
Interest rate on loan
 
 
 
 
 
 
5.00% 
 
 
 
 
 
 
Forgiveness of loan
$ 250,000 
$ (250,000)
$ 0 
 
 
 
 
 
 
 
 
 
 
Shareholders' Equity and Share-based Compensation - Shares Repurchase (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 6 Months Ended 50 Months Ended
May 8, 2014
Oct. 22, 2010
Dec. 31, 2014
Dec. 31, 2014
Class of Stock [Line Items]
 
 
 
 
Share repurchase program, authorized amount (USD in Millions)
 
$ 25.0 
 
 
Shares Repurchase Program Remaining Balance
22.7 
 
 
 
Treasury stock acquired, shares repurchased (in shares)
 
 
0 
361,364 
Treasury Stock, Value, Acquired, Cost Method
 
 
 
$ 3.2 
Treasury stock acquired, average price per share (in dollars per share)
 
 
 
$ 8.82 
Treasury Stock, Shares, Retired
 
 
 
0 
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in shares)
 
 
 
24,150 
Treasury Stock Reissued, Average Price Per Share
 
 
 
$ 2.69 
Treasury Stock Reissued
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
Treasury stock acquired, average price per share (in dollars per share)
 
 
 
$ 13.82 
Shareholders' Equity and Share-based Compensation - Share-based Compensation (Details) (USD $)
6 Months Ended 50 Months Ended
Dec. 31, 2014
Dec. 31, 2014
Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Treasury stock acquired, shares repurchased (in shares)
0 
361,364 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
 
Outstanding at June 30, 2014 (in shares)
3,238,784 
 
 
Granted (in shares)
10,000 
 
 
Exercised (in shares)
(163,731)
 
 
Canceled or forfeited (in shares)
(41,650)
 
 
Outstanding at December 31, 2014 (in shares)
3,043,403 
3,043,403 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
 
 
 
Outstanding at June 30, 2014 (in dollars per share)
$ 10.28 
 
 
Granted (in dollars per share)
$ 9.07 
 
 
Exercised (in dollars per share)
$ 5.97 
 
 
Canceled or forfeited (in dollars per share)
$ 13.66 
 
 
Outstanding at December 31, 2014 (in dollars per share)
$ 10.47 
$ 10.47 
 
Options Outstanding Aggregate Intrinsic Value
$ 2,139,768 
$ 2,139,768 
$ 3,258,607 
Options Exercised Aggregate Intrinsic Value
$ 585,449 
 
 
Employee Share Purchase Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Volatility Rate
50.00% 
 
 
Expected Term
1 year 3 months 18 days 
 
 
Expected Dividend Rate
0.00% 
 
 
Employee Share Purchase Plan [Member] |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Risk Free Interest Rate
0.10% 
 
 
Employee Share Purchase Plan [Member] |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Risk Free Interest Rate
0.50% 
 
 
Stock Options [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Volatility Rate
41.90% 
 
 
Expected Term
5 years 6 months 
 
 
Expected Dividend Rate
0.00% 
 
 
Stock Options [Member] |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Risk Free Interest Rate
1.70% 
 
 
Stock Options [Member] |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Risk Free Interest Rate
1.80% 
 
 
Shareholders' Equity and Share-based Compensation - Stock Options Outstanding and Exercisable (Details) (USD $)
6 Months Ended
Dec. 31, 2014
Jun. 30, 2014
Share-based Compensation [Abstract]
 
 
Options, Number Outstanding (in shares)
3,043,403 
3,238,784 
Options, Weighted-Average Remaining Contractual Life (in years)
5 years 6 months 4 days 
 
Options, Weighted-Average Exercise Price (in dollars per share)
$ 10.47 
$ 10.28 
Options, Number Exercisable (in shares)
2,161,744 
 
Options, Weighted-Average Exercise Price (in dollars per share)
$ 11.34 
 
Options vested and expected to vest, Number Outstanding (in shares)
2,963,102 
 
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years)
5 years 5 months 1 day 
 
Options vested and expected to vest, Weighted Average Exercise Price (in dollars per share)
$ 10.54 
 
Shareholders' Equity and Share-based Compensation - Restricted Stock Activity (Details) (USD $)
3 Months Ended 6 Months Ended
Dec. 31, 2014
Jun. 30, 2014
Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
 
 
Weighted Average Remaining Recognition Period (Years)
1 year 4 months 24 days 
 
 
Restricted Stock
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
Nonvested
 
 
656,374 
Granted
 
 
78,642 
Vested
 
 
(75,423)
Forfeited
 
 
(31,250)
Nonvested
628,343 
656,374 
628,343 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
 
 
Nonvested
 
 
$ 8.40 
Granted
 
 
$ 9.18 
Vested
 
 
$ 9.19 
Forfeited
 
 
$ 8.53 
Nonvested
$ 8.40 
$ 8.40 
$ 8.40 
Weighted Average Remaining Recognition Period (Years)
1 year 6 months 7 days 
1 year 9 months 7 days 
 
RSUs Nonvested Aggregate Intrinsic Value
$ 5,560,836 
$ 6,084,587 
$ 5,560,836 
RSUs vested and expected to vest, Outstanding (in shares)
555,613 
 
555,613 
RSUs vested and expected to vest, Weighted Average Remaining Recognition Period (in years)
1 year 5 months 5 days 
 
 
RSUs vested and expected to vest, Aggregate Intrinsic Value
$ 4,917,176 
 
$ 4,917,176 
Shareholders' Equity and Share-based Compensation - Share-based Compensation Expenses (Details) (USD $)
3 Months Ended 6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Allocated share-based compensation expense
$ 1,277,000 
$ 105,000 
$ 2,379,000 
$ 1,314,000 
Unrecognized compensation expense
4,100,000 
 
4,100,000 
 
Recognition period of share-based compensation expense (in years)
1 year 4 months 24 days 
 
 
 
Cost of goods sold
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Allocated share-based compensation expense
174,000 
142,000 
328,000 
338,000 
Research and development
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Allocated share-based compensation expense
293,000 
(32,000)
499,000 
263,000 
Selling, general and administrative
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Allocated share-based compensation expense
$ 810,000 
$ (5,000)
$ 1,552,000 
$ 713,000 
Income Taxes - Narrative (Details) (USD $)
3 Months Ended 6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
 
Income tax expense
$ 957,000 
$ 1,123,000 
$ 2,128,000 
$ 2,125,000 
Estimated effective income tax rate
281.50% 
87.50% 
152.50% 
82.00% 
Unrecognized tax benefits
7,000,000 
 
7,000,000 
 
Unrecognized tax benefit that would impact effective tax rate
$ 4,900,000 
 
$ 4,900,000 
 
Segment and Geographic Information - Revenue by Location and Product Type (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenue
$ 81,328 
$ 76,265 
$ 169,545 
$ 160,386 
Power discrete
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenue
61,203 
58,946 
126,094 
124,091 
Power IC
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenue
16,109 
13,226 
35,265 
26,838 
Packaging and testing services
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenue
4,016 
4,093 
8,186 
9,457 
Hong Kong
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenue
70,278 
64,229 
145,525 
135,485 
China
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenue
8,823 
10,156 
19,780 
21,048 
South Korea
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenue
524 
745 
1,163 
1,542 
United States
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenue
881 
425 
1,564 
898 
Other Countries
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenue
$ 822 
$ 710 
$ 1,513 
$ 1,413 
Segment and Geographic Information - Long-lived Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Jun. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property, plant and equipment, net
$ 118,600 
$ 123,254 
China
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property, plant and equipment, net
76,118 
80,736 
United States
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property, plant and equipment, net
41,988 
42,106 
Other Countries
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Property, plant and equipment, net
$ 494 
$ 412 
Segment and Geographic Information - Narratives (Details)
6 Months Ended
Dec. 31, 2014
Segment
Segment Reporting [Abstract]
 
Number of operating segments
1 
Number of reportable segments
1 
Commitments and Contingencies - Purchase Commitments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Jun. 30, 2014
Raw materials, wafers, and packaging and testing services puchase commitments
 
 
Purchase Commitment, Excluding Long-term Committment [Line Items]
 
 
Purchase commitment, amount
$ 21.7 
$ 34.5 
Property and equipment purchase commitments
 
 
Purchase Commitment, Excluding Long-term Committment [Line Items]
 
 
Purchase commitment, amount
$ 9.9 
$ 4.6 
Commitments and Contingencies - Guarantees (Details) (Indemnification Agreement, USD $)
Dec. 31, 2014
Jun. 30, 2014
Indemnification Agreement
 
 
Loss Contingencies [Line Items]
 
 
Indemnifications accrual
$ 0 
$ 0